HomeMy WebLinkAboutResolution 1579 Confirming Sale of $688,000 Special Improvement 512 Bonds
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COMMISSION RESOLUTION
NO. 1579,
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RESOLUTION CONFIRMING SALE OF $688,000 SPECIAL IMPROVEMENT DISTRICT ."" r_.....
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NO. 512 BONDS, ~D PRESCRIBING THEIR RORMS AND TERMS AND COVENANTS -"., ,.C? ~ <.;- ,..;, .""
OF THE CITY FOR THE SECURITY OF THE HOLDERS THEREOF --","...r;/l/ ://"- < ,-. '
BE IT RESOLVED BY the City Commission of the City of Bozeman, Montana:
I Section 1. Recitals. It is hereby found, determined
and declared as follows:
1.01 By Resolution No. 1516, adopted June 21, 1972, this Commission declared its intention
to create Special Improvement District No. 512 for the purpose of making special improvements with-
in 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 Title 11, Chapter 22, Revised Codes of Montana
1947, as amended. 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 once each day for five
consecutive days, 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 and corporation, or the agent of
such person, firm or corporation, 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 made, stated the estimated cost of the improvements, designated the time when and place where
the Commission would hear and pass upon ~ll protests made against the making of such improvements
or the creation of such district, and referred to the resolution of intention, designated above,
as being on file in the office of the Clerk of the City 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 Commission
met to hear, consider and pass upon all protests made against the making of such improvements or
the creation of such district, and after considerdtion 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. 1524, adopted July 12, 1972, create
Special Improvement District No. 512, and did order the proposed improvements in accordance with
the resolution of intention designated in paragraph 1.01 hereof.
I 1.04 Plans, specifications, maps, profiles and surveys for construction of the improvements
in Special Improvement District No. 512 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 13 and October
30, 1972, calling for bids to be received on November 1, 1972, on which date the bids therefore
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 Long Construction Company of Billings, Montana whose bids specified unit prices
as follows; Schedule I - $349,140.50, Schedule II - $73,337.00 in the total amount of $422,477.50,
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 therefore in the manner provided by Section 11-2210, 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 and incidental to
the formation of said 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 $688,000, and this Commission has jurisdiction and is
required by law to levy and assess such total cost upon all property within the improvement district
on the basis described in said resolution on intention, 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 redemp-
tion 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.
I 1.06 For the purpose of paying the total cost and expense of making the improvements, which
is to be assessed against the proEerty within the district, this Commission called for the sale of
bonds in the principal amount of 688,000. Notice of the sale of said bonds was published once in
each of the four successive calendar weeks immediately preceding the week which contained the date
of sale thereof, in a newspaper of general circulation printed and published in the City, and at
the time a place specified in said Notice, said bonds were sold to the highest and best bidders
for cash, at not less than the face value of such bonds, together with accrued interest thereon.
The purchaser of said bonds has now specified a coupon interest rate for the bonds, resulting in
a net interest rate not exceeding the rate specified in the contract of sale, computed to the respect-
ive dates upon which installments of the special assessments for the improvements are to become due
and payable and avail~lefor redemption of bonds. The sale of said bonds upon the terms specified
in the notices of sale and as hereinafter provided, is hereby approved, ratified and confirmed.
COMMISSION RESOLUTION
NO. 1579
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470
1.07 All acts, conditions and things required by the Constitution and laws of the State of
Montana, including Title II, Chapter 22, Revised Codes of Montana 1947, as amended, 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. 512 Bonds.
For the purpose of paying the
costs and expenses incurred and to be incurred in construction of the improvements authorized to
be constructed in Special Improvement District No. 512 and in anticipation of collection of
special assessments to be levied therefore, and in accordance with the public offering and contract I
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. 512 Bonds in the total principal amount of
$688,000, payable solely from the Special Improvement District No. 512 Fund. The bonds shall be
dated as of July 1, 1973, and shall mature on January 1, 1992. The Bonds shall be 688 in number
and numbered serially in order of their registration as provided below, from 1 through 688, each
in the denomination of $1,000. The bonds shall be payable to bearer, and shall bear interest
from their date of registration until called for redemption of paid in full at the annual rate
of 5.9% per annum, payable on the 1st day of January of each year, represented by coupons
appurtenant to each bond.
Section 3. Payment of Principal and InterestT
The principal of and interest on the bonds
shall be payable at the office of the Director of Finance of the City. The interest shall be
paid by the Director of Finance from the Special Improvement District No. 512 Fund on presenta-
tion 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 Director 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 publication once in a newspaper
published in the City or, at the option of the Director of Finance, by written notice to the
holder or holders of such bonds if their address be known, of the numbers of the bonds and the
date on which p~yment 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 R.C.M. 11-2231.
Section 5. Execution. Registration and Delivery of Bonds.
The bonds shall be prepared
under the direction of the Clerk of the City Commission and shall then be signed by the Mayor and
Clerk of the City Commission, and the interest coupons appurtenant thereto shall be executed and I
authenticated by the printed, lighographed 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 the 1st day of January, 1974, ~nd shall be delivered by
the Director of Finance to the purchasers 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. 512 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 when due.
Section 6. Special Improvement District No. 512 Fund.
6.01 There is hereby created and established a fund designated as "Special Improvement
District No. 512 Fundtt, which shall be maintained by the Director of Finance 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 ttBond Account" and "Interest
Accounttt. respectively. Upon the collection of the installment 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 principal 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 the 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 Section 11-2231, Revised Codes of Montana 1947.
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 said District Fund in
an amount sufficient to make good any deficiency then existing in the Interest Account in said I
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 said District Fund to the extent that moneys are available in the Revolving Funds.
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
Section 11-22, Revised Codes of Montana. 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 balance on hand in
the revolving Fund shall be allocated to the funds of the improvement district in which such
d~ficiencies then exist in proportion to the amounts of the respective deficiencies on that date.
COMMISSION RESOLUTION NO. 1579
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471
Any money subsequently received in the Revolving Fund shall be allocated to the district fund in
which deficiencies exist in proportibn-: 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 ahall be loaned or advanced 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. 512 Fund on any date on which interest is due on bonds payable
I therefrom unless the City has then or theretofore redeemed bonds in a principal amount equal to
the sum of all installments of special assessments or paid prior to their due dates plus a
fraction of the remaining principal amount of the special assessments originally levied and app-
ropriated 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 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. 512 Fund and the Special ~
provement District Revolving Fund described above as trust funds, separate and apart from all of
its other funds, and that 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 Im-
provement 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 paragraph 1.04 and to assure the completion of the
improvements in Special Improvement District No. 512 in accordance with the plans and specificat-
ions and within the time therein provided, and will pay all costs thereof promptly as incurred 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. 5~ 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 then $688,000. Such special assessments
shall be levied in accordance with the basis therefore prescribed in the resolution of intention
described above, payable in annual installments over a period of nineteen years, each annual
I installment being due in an amount equal to one-nineteenth of the principal amount of each assess-
ment, with interest on the whole amount remaining unpaid at the rate of 5.9% per annum, interest
being payable with interest installments. The assessments to be levied will be payable on the
30th day of November in each of the years 1973 through 1991, 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, 1974, and each subse~uent 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 Section 11-2229, Revised Codes of Montana 1947. 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 Section
84-4170, Revised Codes of Montana 1947.
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, 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 Section 11-2238, Revised Codes of Montana 1947. Any
special assessment, or re-assessment or re-levy shall, so far as practicable, be levied and col-
lected 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. 512, the contracts for construction of im-
provements therein or the undertaking and agreement of the City to levy special assessments there-
for 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
I of any condition precedent to the exercise of the Cityts 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 Arbitrage. The City will make no use of the proceeds of bonds issued hereunder which,
if such use had been reasonably expected on the date of issue thereof, would have caused them to
be arbitrage bonds under the provisions of Section 103(d) of the United States Internal Revenue
Code.
Section 8. Authentication of Transcript. The City officers are hereby authorized
and
directed to furnish to the purchaser of _aid bonds, and to the attorneys approving legality thereof,
COMMISSION RESOLUTION NO. 1579
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certified copies of all proceedings relating to the issuance of said bonds and such other cer-
tificates 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.
Section 9. Effective Date. This resolution shall be
in full force and effect from
and after its passage and approval.
Passed and adopted by the City Commission of the City of Bozeman, Montana, this 23rd I
day of May, 1973, and approved by the Mayor of said City of Bozeman this 23rd day of May, 1973.
Mayor
ATTEST:
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Clerk of
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. 1579 was published by title and number in the Bozeman Daily Chronicle,
a newspaper of general circulation printed and published in Bozeman in the issue of the 29th day
of May, 1973 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 30th day
of May, 1973. I
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Erna V. Hat-ding
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Clerk of the City
Commission
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COMMISSION RESOLUTION NO. 1579