HomeMy WebLinkAboutResolution 1218 Improves SID No. 441
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COMMISSION RESOLUTION NO. 1218
RESOLUTION AUTHORIZING THE ISSUANCE CF $72,000 SPECIAL
IMPROVEMENT DISTRICT NO. 441 BONDS AND $185,000 SPECIAL
IMPROVEMENT DISTRICT NO. 452 BONDS, AND PRESCRIBING
THEIR FORMS AND 'IERMS AND COVENANTS OF THE CI'I'Y F'OR THE
SECtJRITY OF THE HOLDERS THEREOF
BE IT RESOLVED by the C1 ty Commiss ion of the C1 ty of Boz eman, Mon tana:
Section 1. Recitals. It is hereby found, determined and declared as follows: I
1.01 By Resolution No. 1120 and Resolution No. 1176, adopted June 3, 1964, and
January 27, 1965, respectively, this Commission declared its intention to create
Special Improvement District Nos. 441 and 452 for the purpose of making special
improvements within and for the special benefit of said districts, each of which
resolutions designated the number of the district, described the boundaries thereof,
and stated the general character of the improvement to be made therein, in accord-
ance with the provisions of Title 11, Chapter 22, Revised Codes of Montana 1947,
as amended. By eacy of said resolutions this Commission also declared its intention
to cause the cost and expense of ma.king each such improvement to be assessed against
the properties included within the boundaries of the district.
1.02 Notice of the passage of each of said resolutions was given by publica-
tion once each day for five consecutive days, in the Bozeman Daily Chronicle, a
legal, daily newspaper published wi thin the City and by mailing a copy of such
notices to every person, firm or corpora tioD, or the agen t of such person, f'1rm or
corporation, having real property within the proposed districts listed in his name
upon the last completed assessment roll for state, county or school district taxes,
at his last known address. Said notices 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 Commiss1.on would hear and pass upon
all protests made against the making of such improvements or the creation of such
districts, and referred to the resolutions of intention, designated above, as being
on file in the offi ce of the Clerk of the City Commis sion for the description of
the boundaries of said districts, all as provided in said resolutions 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 each such improvements or the creation of such districts, and after con-
si}era tion thereof, it was de termined an d declared tha t t he owners of more than
40% of the property to be assessed for said improvements had not filed protests in I
the ti. me. and manner prescribed bylaw, and the Commission did therefore by Reso1u tion
Nos. 1126 and 1184, adopted June 24, 1964, and February 24, 1965, respectively,
create Special Improvement District Nos. 441 and 452, respectively, and did order
the proposed improvements in accordance with the resolutions of intention desig-
nated in paragraph 1.01 hereof.
1.04 Plans, specifications, maps, profiles and surveys for construction of
the improvements in Special Improvement District No. 441 were prepared by the
engineers acting for the City, and were thereupon examined and approved by this
Commiss ion. An advertisemen t for bids for cons truction of said improvements was
published in the official newspaper of the City on April 5 and April 9, 1965,
calling for bids to be received on April 21, 1965, on which date the bids thereto-
fore rece i ved were opened and examine d. After referring the bi ds to t he engineers
for the City it was determined that the lowest regular proposal for the furnishing
of all work and materials reauired for construction of said improvements in accord-
ance with approved plans and specifications was the proposal submitted by Schultz
& Lindsay Construction Company of Billings, Montana, whose bid specified unit prices
aggregating the sum of $60,472.15 based upon quantities of work and materials esti-
mated in the plans and spec lfica tions . A contract for cons tru ction of said im-
provements 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 wri tten
contract therefor in the manner provided by Section 11-2210, which election the
property owners failed to rmke, whereupon the City and said bidder entered into a
written contract for construction of said improvements upon the bidder having
executed and flIed a satisfactory bond wi th respect thereto.
1.05 For the construction of t he improvements in Special Improvement District
No. 452 the City has enetered in~o a contract with the Montana State Highway Depar~-
ment, by the terms of which the Vity is required to pay 25% of the cost of construc-
tion, plus legal, administra ti ve and other costs. The Sta te Highwa y Department has
awarded contracts necessary for constru..ction of said improvement, at estimated con- I
tract costs of $584,172.27, based upon quantities of work and materials estimated
in the plans and specifications, of which amount the City will be liable for payment
of $185,000.00.
i.06 It is presently estirrated that the cost and expense connected with and
incidental to the formation of said improvement districts, including costs of prep-
aration of plans, specifications, maps, profiles, engineering superintendance 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 $72,000 for Special Improvement District No. 441 and $185,000
Commission Resolution No. 1~?18
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for Special Improvement District No. 452, and this Commission has jurisdiction and
is reql1ired by law to levy Rnd assess
such 1D tal cost upon all property wi thin the
improvement 1istricts on the bases described in
said resolutions of intention,
to
collect such s;Jecial assessments and credi t the same
to the specla 1 improvement
dis-
trict funds created for
said rUstricts, which funds are 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 t he bands herein authorized and for
redemption of such bonds in order of their registration whenever and as often as
the balance in said funds after payment of
interest due is sufficient for
the purpose
I 1.07 For the
purpose of ra ying the total
cost and expense of making the improve-
ments, which is to be assessed against the property within tbB
di s tricts,
this
Commission called for
the sale of separate issue s of bonds. Notices of
the sale
of said bonds were published once in each of the four successive calendar weeks
immediately preceding the weeks which contained the dates of sale thereof,
in a
newspaper of general circulation printed and published in the City, and at the
time
and place specified in said notices,
said bonds were sold to the highest and best
bidders for cash,
at not less than the face val'H of sucn berds,
together with ac-
crued interest thereon.
The purchasers of said bonds have now specified coupon
interest rates for the bonds, resulting in a net interest rate for each of such
issues of said bonds not exceeding the ra te specified in t he contracts of sale,
compu ted to the respective dates upon which ins tallments of
the special
assessmen ts
for the
impro vements are to become
due and pays. ble 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 con firm e d .
1.08 All acts, conditions
and thinITs required by the Constitution and laws of
the Sta te of 1'1()ntana. including Ti tIe 11, Chap ter 22, Revi sed Codes of Manta na 1947,
as amended, in
order to ma ke the bond s he rein authoriz ed va lid and bl,nd ing specia 1
obliga tions in accordance with their
terms and in accordance wi th the
terms of
this resolu tion have been done,
do exist, have happened and have been performed in
regular and due form,
time and manner as so re~uired.
Section 2. S ecial
1m rovement District No. 441 Bonds. For the purpose of pay-
ing the costs an expenses ncurre an e ncurre n construction of the im-
provements authorized to be constructed in Special Improvement District No. 441,
and in anticipation of collection of
special assessments to be levied therefor, and
in ~ccordance with the public offerinp; and con tract of sale described in paragraph
1.07 hereof, t he City of Bozeman shall forthwith issue and deliver to the purchaser
its Special Improvement District No. 441 Bonds in the total principal amount of
I $72,000, payable solely from the Special Improverr:ent District No. 441 Fund. The
bonds shall be dated as of June 1, 1965, clnd shall mature on January 1, 1985. The
bonds shall be 72 in number and numbered serially in order of their registration as
provided below, from 1 through 72, each in the denomination of $l,OUO. The bonds
shall be payable to bearer, and shall bear interest fran their date of registration
until called for redemption or paid in full Ht the annual rate of 4.20% per annum,
payable on the 1st day of January of e Bch year, represented by coupons appurtenant
to each bond.
Section 3. Special
Improvement District No. 452 Bonds. For the purpose
of pa,1ing the costs and expenses incurred and to be :tncurred in construction of the
improvements authorized to be constructed in Special Improvement District No. 452
and in anticipation of
collection of special assessments to be levied therefor,mnd
in accordance wi th the public offering and con tract of sale described in paragraph
1.07 hereof, the City of .!:)ozeman shall forthwith issue and deliver to the purchasers
its Special Improvement District No. 452 Bonds in the total principal amount of
$185,000, payable solely from the tS:pecial Improvement District No. 452 Fund. The
bonds shall be da ted as of May 1,
1965, a nd shall mature on January 1, 1985.
~rhe
b nds shall be 185 in number and numbered seria 11y in order of their regi stra tion
as provided below, from 0 through 185, each in the denomination of $l,OUO. r.I'he
bonds shall be payable to bearer, and bonds bearing the registration numbers set
forth below shall bear interest from too ir date of registration until called for
redemption or paid in full at the annual rate set forth opposite such registration
numbers, respectively,
payable on the 1st day of January of each year:
ReRistration Numbers
In terest Rate
1 through 55
3.00%
56 through 150
3.70%
151 through 185
3.90%
In addition, each bond shall bear additional interest from September 1, 1965, to
I January 1, 1966, or prior redemption, at the rate of 2.10% per annum, and bonds
bearing registration numbers 115 through 185 shall bear additional interest from
September 1, 1965, to January 1, 1968, or prior redemption, at the rate of 2.10%
per annum, such additional interest to be represented by separate and detachable
"B" coupons appurtenant to each such bond. The Interest on the bonds shall be pay-
able January 1, 1966,
and annually on January 1, in each year thereafter.
Section 4. Payment
of principal and Interest. The principal of.,and in-
terest on the bonds shall be payable at the office of the Director of ltinance. The
in terest shall be
raid by the Director of Finance from the Special Improvement Dis-
trict No. 441 Fund or from the Special Improvement District No. 452 fund on presen-
ta t ion of the
coupons belonging thereto when du e, and any balance remaining in
the
Commission
Resolution No. 1218
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fund shall be applied to the pa yment 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 i.nterest due em all
bonds drawn against it, the Director of .t"inance shall CDll in for
pa ymen t on ts tand-
ing bonds in an amoun t which, toge ther wi th the
in tere s t the reon to the da te of
redemption, will equal the amount of the fund on
tha t da te .
The date of redemption
shall be fixed by the Director of Finance, who shall give notice by publication
once in a newspaper published in tbe City or, at the option of the Director of
F.:tnance, be written notice to
the holder or holders of such bonds if there
address
be known, of
the numbers of the bonds and the date on which payment will be made,
I
which date shall be not less than ten days after the da te of publica
tion or of
service of notice. On the
date so fixed interest shall cease.
Sec tion 5. Form
of Bonds. The bonds and the interest coupons appurtenant
thereto shall be drawn in substantially the farm set forth in RCM 11-2231.
Section 6. Execution, Registration and ~elivery of Bonds. ~he bonds
shall be prepared under the direction of the Clerkof the City Commission and shall
then be signed by the Mayor and Clerk of the City vo~mission, and the interest cou-
pons appurtenant thereto shall be executed and au theT. tlca ted oy tbB prin ted, Ii tho-
graphed or engraved facsimile signatures of the Mayor and Clerk of the City COrrn.T1-
ission. 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 respective dates')f
issuance specified above, and shall be delivered by the Director of .Finance
to the
purcha sers upon pa yment of the par value thereof plus accrued interest from the
registration date to the date of such delivery and payment. .I.he purchasers
shall
not be obligated to see the application of the purchase price, but the proceeds
of the bonds shall be credi ted by the Director of 1<'inance forthwith to the Specia I
Improvement District No. 441 Fund and the Special Imprnvement District No. 452 Fund,
and used solely for the payment of
the cost and expenses necessarily incurred in the
completion of the improvements heretofore or der, except the t the accrued
in terest
received shall be applied in payment of interest on
the bonds when due.
Section 7.
Special Improvement District Nos. 441 and 452 Funds.
7.01 There are hereby created and established two funds designated as "Special
Improvement Di,strict No. 441 Fund" and "SpecialImprovement,District No. 452 Flmd",
respectively, which shall be maintained by the Director of .t'inance on the books and
records of the C1 ty separa te and apart from a n other funds of the Ci ty. Wi thin
each of said Funds there shall be maintained se!arate accounts,
designa ted as the
"Bond Account" and "Interest Account", re s pe c t i ve 1 y .
Ufon the
colle c tion of the in-
I
stallment of principal and interest due on November 30 of each year on
the special
assessment tQ be levied with resoect to the imc:rovements in said Districts, the
Director of j;I'inance shall credit" to the Interest Account in the appropriate District
Fund so much of said special assessments as is collected as interest and the Director
of Finance shall credit to the Bond Account with so much of said special assess-
ments as is collected as principal payment.
Any installment of any special assess-
ment 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 funds.
All moneys In the :.i.nterest
account and the bond acc,mnt shall be used first to pay interest due,
and any re-
maining moneys shall be used to pa y ponds. 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.
7.02 The CommIssion shall annually or oftener if nece~,sary issue an order au-
thori?ing a lo~n or advance from the i:;)pecial Improvement District Revolving l<und to
said District Fund in an amount sufficient to make good any Jeficiency then existing
in the Interest Account in said District F'und, and shall issue an order authorizing
a loan or advance from the Revolving Fund to the District Fund in an amount suffj,cient
to make good any deficiency then existing in the
Bond Account of said District Fund
to the extent that moneys are available in the
B.evol ving Fund. In the event
that the
balance .~r hand in the Revolving Fund fifteen days prior to an y da te when in terest is
due on special lrrprovement district bonds of the City is not sufficient to make good
all deficiencies then existing in the improvemEJ nt district funds for which the City
has promised to make loans from the Revolving Fund,
the ba lance on hand in the B.evo 1 VT
ing Fund shall be allocated to the fun0s of the irroroveme
n t d i s tric ts in which such
deficiencies then exis t in pro portion
to the amOUD ts of the respe cti ve deficiencies
on tha t da te . Any money subsenuently received in the Revolving Fund shall be allocated
to the District funds in which deficiencies exist in proportion to the amoun ts of the
deficiencies on the respective dates of receipt of such money, until all interest
I
accrued on such special improvement nistrict bonds of the Ci ty has been paid. On
any date when all accrued ~nterest 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 Iilmd shall be loanded or ad-
vanced to the improvement district funds for pa ymen t and redemption of bonds
to the
extent the improvement district funds are deficient for such purpose,
in amoun ts
proportionate to the respective amounts of such deficiencies.
A deficiency shall be
deemed to exist in the In te re s t Accoun t of
the Special Improvement District No. 441
Fund or the Special Improvement District No. 452 fund if ever the balance on hand
therein fifteen days prior to any date on which interest
:8 due
on bonds payable
therefrom is insufficient to pay such interest in full. A deficiency shall be
deemed to exist in the B 'n (1 Accoun t of
the Special Improvement District No. 441
Fund or the Special Improvement District No. 452 FUnd on any date on wbich interest
is due on bonds payable therefrom unless the City has then or theretofore redeemed
bonds in a principal amount eoual to the
sum of all installments of special assess-
COMKISSION RESOLUTION NO. L)18
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ments paid prior to their due dates plus a fraction of
the remain~ng pr~ncipa1
am,unt of the special assessments ori(j'lnally levIed and approprIated to said
Improve~ent District Fund equal to
the number of installments of such assessments
then and theretofore due dt vided by the to ta 1 number of ins ta lImen ts
in which such
special assessments are pArmitted
to be pa Id .
Section 8.
Covenants. The City of Bozeman
covenants and agrees with the
holder from time to tIme of each of t he bonds issued pursuant to thls resolution
that until all such b,nds and
~nterest 1hereon are fu lly peld:
I 8.01
The City will hold the Special Improvement District Fund.s and the Special
Improvement District Revolving FUnd described above as
trus t funds, s
epara te 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
re so lu tion.
The provisions
hereinabove made wi th respect to
the Improvemen t District Funds and Revolving ];;'und
are in accordance with
the undertaking and agreement of the City made in connection
with the public
offering of the binds herein authorlzed.
8.02
The City will do all acts and things necessary to enforce the provisions
of the construction oontracts and b~)nds referred to
in paragraph 1.04 and to assure
the completion of the improvements in Special Improvement District Nos. 441 and 452
in accordance with
the ~lans and specifications and within the t i'll e
therein provided,
and will pay all costs
thereof promptly as incurred and allowed,
out of the Special
Improvement District Funds and wi thin the amount of the bond proceeds appropriated
thereto.
8.03
The City will do all acts and things necessary for
the final and valid
levy of special assessments upon all property within
the b01mdaries of Special Im-
provement District Nos.
441 and 452 in a ccordance wi th the Cons ti tu tion and laws of
the Sta te of Montana and the Cansti tution of the Uni ted Sta tea in an Bn:grega te prin-
cipal amount of not more than ~;7?,OOO for Special Improvement District No~ 441 and
not more than $185,000 for Special Improvement District No. 452. Such special assess-
ments shall be levled in accordance wi th the bases
therefor Drescribed in the re-
solu tions of inten tion described above,
payable in annual installments over a period
of 20 years, each annual ins tallmen t being due in an amount erual to 1/20 of the
principal amount of each 8ssessment, with interest on the whole amount remaining
unpaid assessment at the rate of 4.20% per annum for Special Improvement District
No. 441, and at the rate of 3.94% per annum for Special Improvement District No. 452,
interest being payable w:;.th principal installments.
rrhe assessments
to be levied
will be paYAble on
the 30th da y of November in each of the years 1965 through 1984,
inc lusi va,
if not theretofore paid, :ad shall become delinquent on that date unless
I paid in fu 11.
The first partial payment of each assessment shall include
in teres t
on the entire assessment from the date of' registration of the binds herein auth-
orized to J.anuary 1, 1966, and each subse...uent partial payment shall include in-
terest for one year
on the then
remaining balance of the special assessment.
The
assessment shall constitute a lien upon and against the property against which
they are nade and levied, which lien may only be extenguished for payment of the
assessment with all penalties, cost and interest as provided in Section 11-2229,
Revised Codes of M()ntana 1947.
No tax deed issued with reSIJ8ct 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 futura, installments, as provided in Section
84-4170, Revised Codes of Montana
1947.
8.04 It at any time
and for whatever reason any special assessment or tax
herein agreed to be levied is held invalid, the City and thls Commission, its off-
icers and employe es,
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
there to, tilld
will re-assess and relevy the same
wi th the same force and effect as
an original levy thereof, as authorized in Section 11-2238, Revised Codes of Mmtana
1947. Any special
assessment, or re-assessment or re-levy shall,
so far as prac ti-
cable, be levied and collected as
it would have been if the firs t levy had been
enforced,
includins the levy nnd collection of any interest accrued on
the fir s t levy.
8.05
There is now no litigation threatened or pending questloning the
va lid-
ity or regularity of the creatL,n of Special Improverrent
District Nos. 441 and 452,
the contracts for cnnstruction of improvements therein OJ:' the .undertaking and agree-
ment of the Ci ty to levy special assessment therefor and to make good an y defici-
ency in the collect1.o. thereof throuzh the levy of taxes for and the maki.ng of ad~
vances from the Special Improvement District Hev01vlng Fund,
or the
right and power
of the City to issue the bonds herein authorized,
or in any manner que s tloning the
existence of any condition preceden t to the exerc Ise of the Ci ty' s powers in the se
I matters. If any such litic:"ation should be initiated or threatened, the City will
forthwith notify in writing the orlginal purchasers of the
bonds he rein au thorized
and will furnish the pu
rchasers with a copy of all documents, including pleadlngs.
in connection with such litigation.
Section 9. Authentication
of 1Tanscript. The County Clerk and Recorder of
Gallatin County and the Oity officers are hereby authorized and directed to fur-
n ish to the purchaser
of said bnnds, and to the a ttorneya a ~proving legality there-
of, certified copies
of all proceedings re la ting to the issuance of said bonds
and
COMM:rSS ION RES0L1JTI ON NO. 1?18
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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 constltute
representations of the C1 ty as to the truth of t he statements purported to be
shown thereby.
See tion 10. This
reso1utiijD 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,
I
this 11th day of August, 1965, and approved by the Mayor of said City of Bozeman
this 11th da y of Augus t,
1965
ATTT"':ST:
Sta te of Mon tam\ ~
County of Ga 18.
tin S8
01 ty of Boz eman
)
I, Erna V. Harding,
Clerk of the Commission of The City of
Bozeman, do hereby
certify that the foregoing Resolution No. 1218, was
published by title and number in
the Bozeman Daily Chronicle, a news-
paper of general circuln tion printed and published in said City in the
issue of August 15, 1965,
and due proof of such ~blication is on
file
in my office.
IT VHTNESS WHEHEOF
I hereunto set my hand and affix the
corporate seal of my office this 15th day of October,
1965.
I
I
Commission Resolution
No. 1218
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