HomeMy WebLinkAboutResolution 1500 Confirming Sale of $450,000 Special Improvement District 502 Bonds
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COMMISSION RESOLUTION NO.
1500
RESOLUTION CONFIRMING SALE OF $ 450,000 SPECIAL IMPROVEMENT DISTRICT NO.
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J1 502 BONDS, AND PRESCRIBING THEIR FORMS AND TERMS AND COVENANTS OF THE
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... CITY FOR THE SECURITY OF THE HOLDERS THEREOF
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana:
Section 1. RECITALS. It
is hereby found, determined and declared as follows:
1. 01 By Resolution No. 1472, adopted June
9, 1971, this Commission declared its intention
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to create Special Improvement District No. 502 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 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 or 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 descr~bed 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 all protests made against the making of such improve-
ments or the creation of such district, and referred to the
resolution of intention, designated
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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 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.
1474, adopted July 7,
1971, create
Special Improvement District No. 502, 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. 502 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 the 8th and 19th day
of October, 1971, calling for bids to
be received on the 27th day of October, 1971, on which
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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 C.
W. Schmid, Inc. ,
Box 1528, Missoula,
Montana, whose bid specified unit prices aggregating the sum of $535,908.64 based upon quantities
of work and materials estimated in the plans and specification.
A contract for construction of
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1500
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, said improvements was therefore awarded to said bidder, subject to the right of owners of
property
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liable to be assessed to elect to take the work and enter into a written contract therefor in the~
manner provided by Section 11-2210, which election the property owners failed to make whereupoQ..the
City and said bidder enterd into a written contract for construction of said improvements upon the
bidder having executed and filed a satisfactory bond with respect thereto.
I 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 contruction contract,
and all other costs and expenses will be $802,000, of which $352,000 is to be paid under a Federal
Grant which has been approved, and this Commission has jurisdiction and is required by law to
levy and assess the remaining $450,000 cost upon all property within the improvement district on
the basis described in said resolution of 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 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 City of Bozeman's share of the 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 $450,000. Notice
of the sale
I 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 and place specified in said notice,
said bonds
were sold to the highest and best bidder for cash, at not less than the face value of
such bonds,
together with accrued interest thereon. The purchases of said bonds has now specified ooupon
interest rates for the bonds, resulting in a net interest rate not exceeding the rate specified
in the contract of sale, computed to the respective dates upon which installments of the special
assessments for the improvements are to become due and payable and available for 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.
1.07 All acts, conditions and things required by the Constitution and laws
of the State of
Montana, including Title 11, 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.
I Section 2. SPECIAL IMPROVEMENT DISTRICT NO. 502 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. 502. and in anticipation of collection of special
assessments to be levied therefor, and in accordance witn the public offering and contract of sale
described in paragraph 1.06 hereof. the City of Bozeman shall forthwith issue and deliver to tne
purchaser its Special Improvement District No. 502 Bonds in the total principal amount of $450.000.
payable solely from the Special Improvement District No. SOl Fund.
The bonds shall be dated as of
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January 1, 1972, and shall mature on January 1, 1992.
The bonds shall be 450 in number and
numbered serially in order of their registration as provided below, from 1 through 450, each in
the denomination of $1,000. The bonds shall be payable to bearer, and shall bear interest from
their date of registration until called for redemption or paid in full at the annual rate of 5.50%
per annum, payable on the 1st day of January of each year, represented by coupons appurtenant to
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each bond.
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Section 3. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on
the bonds
shall be payable at the office of the Director of Finance of the City. The interest shall be
paid by the Director of Rinance from the Special Improvement District No. 502 Fund on presentation
of the coupons belonging thereto when due, and any balance remaining in the fund shall be applied
to the payment of the principal and the redemption of the bonds in the order of their registration
as evidenced by their serial numbers. Whenever there is any balance in the fund after paying
the interest due on all bonds drawn against it, the Director of Finance shall call in for payment
outstanding bonds in an amount which, together with the interest thereon to the date of re-
demption, will equal the amount of the fund on that date. The date of redemption shall be fixed
by the Director of Finance, who shall give notice by publication once in a newspaper published in
the City or, at the option of the Director of Finance, by written notice to the holder or holders
of such bonds if their address be known, of the numbers of the bonds and the date on which payment
will be made, which pa$:e be not less thaQ 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 RCM 11-2231.
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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 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 the 1st day of January, 1972, and 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. 502 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. 502 FUND.
6.01 There is hereby created and established a fund designated as "Special Improvement I
District No. 502 Fund", 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 "Bond Account" and "Interest
Account", 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
COMMISSION RESOLUTION NO. 1500
273
Fund so much of said special assessments as is collected as interest and the Director of Finance
shall credit to the Bond Account so much of said special assessments as is collected as principal
payment. Any inta1l1ment of any special assessment paid ~rior 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
I 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 oftener 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
District Fund, and shall issue an order authorizing a loan or advance from the Revolving Fund to the
District Fund in an amount sufficiant 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 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
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
I 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 respective deficiencies on
that date. Any money subsequently received in the Revolving Fund shall be allocated to the
district fund in which deficiencies 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 advanced to the improvement district fund for payment and redemption
of bonds to the extent the emprovement 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 Interest Account of the Special Improvement District No. 502 Fund if ever the
balance on hand therein fifteen days prior to any date on which interest is due on bonds
payable therefrom is insufficient to pay such interest in full. A deficiency shall be deemed
to exist in the Bond Account of the Special Improvement District No. 502 Fund on any date
on
I which interest is due on bonds payable therefrom unless the City has then or theretofore ~e-
deemed bonds in a principal amount equal to the sum of all installments of special assessments
paid prior to their dates plus a fraction of the remaining principal amount of the special assess-
ments 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 install~
ments 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
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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.
502 Fund and the Special
Improvement 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 I
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
construction contracts and bonds referred to in paragraph 1.04 and to assure the completion of
the improvements in Special Improvement District No. 502 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 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. 502 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$4S0,000.
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 twenty years,
each annual intallment 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 of 5.5%
I
per annum, interest being payable with interest installments.
The assessments to be levied
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will be payable on the 30th day of November in each of the years 19/through 19/ 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, 19';
,and each subsequent
partial payment shall include interest from 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 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 tne
execution of such deed, and any tax deed so issued shall convey title subject only to tne lien
of said future installments, as provided in Section 84-4170,
Revised Codes of Montana 1947.
7.04 If at any time and for wnatever reason any special assessment or tax herein agreed
to be levied is heldinvalid, tne City and tnis Commission,
its officers and employees, will I
take all steps necessary to correct the same and to re-assess and levy the same,
illC luding
the ordering of work, witn tne 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 eftect as an original levy thereof, as authorized in Sect10n 11-2238,
Revised
Codes ot Montana 1947. Any special assessment,
or re-assessment or re-levy shall, so far as
practicable, be levied and collected as it would have been if the first levy had been enforced,
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including tne levy and collection of any interest accrued on tne first levy.
7.05 Th~re is now no litigation threatened or pending questioning the validity or regularity
of the creation of Special Improvement District No. 502,
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
I 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 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.
Section 8. AUTHENTICATION OF TRANSCRIPT.
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.
Section 9. This resolution shall be in full force and effect from and after its passage
and approva l.
I Passed and adopted by the City Commission of the City of
of December, 1971, and approved by the Mayor of said City of
1971.
ATTEST:
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. /'C"~ <
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. 1500 was published by title and number in the Bozeman
Daily Chronicle, a newspaper of general circulation printed and published in said City in
the issue of the 17th day of December, 1971, and due proof of such publication is on file
in my office.
I IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office
this 18th day of January, 1972.
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COMMISSION RESOLUTION NO. 1500
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