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HomeMy WebLinkAboutResolution 2066 Sale of SID No. 589 ____,_~___'___~___"r_.__ _____. _~_____ _~~ ..... '~-~"'__""T--~.-,------,---,-~~~-- - n_ - -- - ,-- - 198 COMMISSION RESOLUTION NO. 2066 RESOLUTION AWARDING SALE OF $32,000 SPECIAL IMPROVEMENT DISTRICT NO. 589 BONDS, AND PRESCRIBING THEIR FORM AND TERMS AND COVENANTS OF THE CITY FOR THE SECURITY OF THE HOLDERS THEREOF BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: I Section L Recitals. It is hereby found, determined and declared as follows: 1.01. By Resolution No. 1946, adopted February I, 1978, this Commission declared its intention to create Special Improvement District No. 589 for the purpose of making special improvements 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 made therein, in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12. By said resolution this Commission also declared its intention to cause the cost and expense of making such improvement to be asessed 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 Daily Chronicle, a legal, daily newspaper published within the City and by mailing a copy of such notice to every person, firm or corporation, or the agent of such person, firm or corpor- ation, having real property within the proposed district listed in his name upon the last com- pletee 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 made, 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 cre- ation of such district, and referred to the resolution of intention, designated above, as being on file in the office of the Clerk of the Commission for the description 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 Commis- sion met to hear, consider and pass upon all protests made against the making of such improve- ments for the creation of such 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 said improvements, and the Commission did therefore by Resolution No. 1950, adopted March I, 1978, create Special Improvement District No. 589, and did order the proposed improvements in accordance withfue resolution of intention designated in paragraph 1.01 hereof. I 1.04. Plans, specifications, maps, profiles and surveys for construction of the improve- ments in Special Improvement District No. 589 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 Oct- ober 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 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 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 $25,310.50, based upon quant- ities of work and materials estimated in the plans and specifications. A contract for con- struction 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. It is presently estimated that the cost and expense connected with the incidental to the formation of said improvement district, including costs of preparation of plans, spec- ifications, maps, profiles, engineering superintendence and inspection, preparation of assess- ment rolls, expenses of making the assessments, the cost of work and materials under the con- struction contract, and all other costs and expenses, will be $32,000, 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 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 I 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, which is to be assessed against the property within the district, this Commission called for the sale of bonds in the principal amount of $32,000. After a public sale noticed and con- ducted in accordance with applicable statutory provisions, the bonds were sold to D.A. David- son & Co. of Great Falls, Montana. 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, 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. - .'H H .<_._._H'~...~H' .._.--.........~_.._H'" .... ...__...._.____.__.___~_~_.. <;:QMMISSI911J\!20L1!.TI9tl~~.9.~?.9_6_(). ~.._~.<-_..-~ --.----.~-..---.....-.-- .......... --.- - .........."............. ~..._- . -- ....-- ..--..- _..~~----.......,..- - ~,...----~..- --.,.---- --- -----. ~ - . - - - . . . ... . -~ - -~ ...--' .. . lsS Section 2. Special Improvement District No. 589 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. 589, and in anticipation of special assessments to be levied therefore, 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. 589 Bonds in the total princ- I ipal amount of $32,000, payable solely from the Special Improvement District No. 589 Fund. The bonds shall be dated and registered as of January I, 1979 and shall be 32 in number and numbered serially from 1 through 32, each in the denomination of $1,000. The bonds shall mature on Jan- uary 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 reg- istration until called for redemption or paid in full at the rate of 8.75% per annum. Interest shall be payable on the 1st day of January of each year, commencing January I, 1980, represent- ed 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. 589 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 fund after paying the interest due on all bonds drawn against it, the Dir- ector of Finance shall call in for payment 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 pub- lication once in a newspaper published in the City and by written notice to any holder or hold- ers of such bonds if their addresses be known, of the numbers of the bonds and the date on which payment will be made, which date shall be not less then ten days after the date of pub- lication 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 hereto. Section 5. Execution, Registration and Delivery of Bonds. I The bonds shall be prepared under the direction of the Clerk of the Commission and shall then be signed by the facsimile signatures of the Mayor and Clerk, and the interest coupons appurtenant thereto shall be executed and authenticated by the printed, lithographed or en- graved 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 January 1, 1979, and shall be delivered by the Director of Finance to the purchaser upon payment of the par value thereof plus accrued interest form 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. 589 Fund, and used solely for the payment of the cost and expenses necessarily incurred in the completion of the improvements hereto- fore 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. 589 Fund. 6.0l. There is hereby created and established a fund designated as "Special Improve- ment District No. 589 Fund," which shall be maintained by the Director of J;I';tnance of the City on the books and records of the City separate and apart from all other funds of the City. Within said 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 in- terest 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 installment of any special assessment paid prior to its due date with interest accrued there- on 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 or redemption, in accordance I with the provisions of Montana Code Annotated, Sections 7-12-4203 and 7-12-4206. 6.02. The Commission shall annyally or more often if necessary issue an order authorizing a loan or advance from the Special Improvement 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 from the Revolving Fund to the District Fund in an amount sufficient to make good any deficiency then existing in the Bonds 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 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 dis- trict 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 improve- CQMl1lSSrQN RESQLUTlQN NQ. 2066 -...~~............._~-_.~~._~............. ........~.._...~........... -"""""'....-.......--.-- .-----------~~ ....................-...~. ...................~-_.~~ _ .~~_._ ._........-........-...______.........~ _.__.__~_.......--..iIIL.....-....___....-.~_""""" ~........__~~_ ..~':""..~....oIroII...io... - ~ ~- -, _....................a......_.............-..........AAL...~.........-. ~. - .- " ~ , - ~.~ .~"-~'----~--~-~ _.~_._. -. .~. --.---.-.:-r-r--.._--.,....,.,...'~"-,., 200 ment district in which such deficiencies then exist in proportion to the amounts of the defici- encies 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 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 I exist in the Bond Account of the Special Improvement District No. 589 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 Improvement 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: 7.0l. The City will hold the Special Improvement District No. 589 Fund and the Special Improvement District'R~volving 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 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 necessay to enforce the provisions of the con- struction contracts and bonds referred to in paragraph 1.04 and to assure the completion of the improvements in Special Improvement District No. 589 in accordance with the plans and specifi- cations and within the time therein provided, and will pay all costs thereof promptly as incur- red 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 special assessments upon all property within the boundaries of Special Improvement District No. 589 in accordance with the Constitution and laws of the State of Montana and the Constitution I of the United States, in an aggregate principal amount not less then $32,000. 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 20 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 I, 1999, and each subsequent partial payment shall include interest from one year on that payment and 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 only be extinguished for 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 levy the same, including the ordering of work, with the same force and effect as if made at the time provided by law, ordin- ance 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 is practicable, be levied and collected as it would have been if the first levy had been enforced including the levy and col- lection of any interest accrued on the first levy. 7.05. There is now no litigation threatened or pending questioning the validity or reg- ularity of the creation of Special Improvement District No. 589, the contracts for construction I 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, on 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. 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. .- --- --'-___... ....._.. ___ _~._-',~ _ _J..~_'*"-'--__. _"--_~~ ._u_.~.._~_ _ .,_.~ _ _....~__ ~~ CQW1ISS-IQlLREB.Q1JIIlQJ:LJ~Q.__2QJi9_ _n u___ .____~__u_____~___ ""___"_n_.___ _~~_"_u~_n_______~_" -- --_.....~._- ....... -. .,....- .~_. ~ -~.~-----------~--~ ------~~--.-................_.._.~~-- - -~-----------------._--~----_.~_..~~ -.....--.---~~....~ _._-~.....---._----~ .-.......--.---..-----.......................-........_--......~..- -~-.....,... 201 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 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. I 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 16th day of ~ 1979. Approve -.4...- ATTEST: ~ j/~~ Erna V. Harding, Clerk of e Commission -- - State of Montana ) County of Gallatin) I City of Bozeman ) I, Erna V. Harding, Clerk of the City Commission of the City of Bozeman, do hereby certify that the foregoing Resolution No. 2066 was published by title and number in the Bozeman Daily Chronicle, a news- paper of general circulation printed and published in said City, in the issue dated 24th day of May, 1979, and due proof of such publi- cation is on file in my office. IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office this 24th day of July, 1979. 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