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HomeMy WebLinkAboutResolution 2039 Issuance of Bonds for SID No. 595. 596 .597 -~,. ---~' .-"-~'.. .~'-_.--- ~---~-~... -- . .-...- -r. -. .". .- .------"-~ ....-~- - .___...____n, - -.~ ._~-~-,___ _.~ .__.____ ~.___.. ~._.___"_ __._ ._'...'''!'''""-"''T'"_. 128 RESOLUTION NO. 2039 RESOLUTION RELATING TO $40,000 SPECIAL IMPROVEMENT DISTRICT NO. 595 BONDS, $105,000 SPECIAL IMPROVEMENT DISTRICT NO. 596 BONDS AND $66,000 SPECIAL IMPROVEMENT DISTRICT NO. 597 BONDS; AUTHORIZING THE ISSUANCE THEREOF, CREATING THE SPECIAL IMPROVEMENT DISTRICT FUNDS WITH RESPECT THERETO AND PROVIDING FOR THE PAYMENT OF THE I PRINCIPAL THEREOF AND INTEREST THEREON. Be it resolved by the City Commission of the City of Bozeman, Montana, as follows: Section 1. Recitals. 1.01 Creation of Special Improvement Districts. Pursuant to Commission Resolutions Nos. 1967, 1968 and 1969 duly passed and adopted on April 26, 1978, the City Commission (the Commission) of the City of Bozeman, Montana, declared its intention to create Special Improvement Districts Nos. 595,596 and 597 (collectively, the Districts), respectively. After giving notice of the passage of such Resolutions by publication and mailing in the form and manner required by law, holding public hearings thereon and determining that no protests against the proposed work or against the creation of the Districts to be assessed, or both, had been made by any owner of property liable to be assessed for the work, the Commission duly passed and adopted Commission Resolutions Nos. 1983, 1979 and 1980, lawfully and duly creating the Districts, providing for the construction of Improvements therein, and providing for the payment of the costs of the Improvements. 1.02 The Improvements; Award of Construction Contracts. The improvements (collectively for each of the Districts, the Improvements) to be constructed in each District are described as follows: District No. Improvements 595 A six (6) inch watermain and appurtenances for Northwood Drive in Wheat Subdivision, including all tre~h exc~vation and backfill, bedding material, cast iron watermain, valves, fittings, hydrants, service line stubs and other-::ne,eessary I appurtenances. - 596 A twelve (12) inch sanitary sewer main and appurtenances under the National Pacific Railway, an eight (8) inch sanitary sewer main and appurtenances on Meadow Lane, south to Griffin Drive, and on Griffin Drive, including all trench excavation and backfill, bedding material, sewer pipe, manholes, wyes, lampholes, service line stubs and other necessary appurtenances. 597 An eight (8) inch sanitary sewer lateral main and appurtenances in Wheat Commercial Subdivision, a lift station and force main in Mandeville Lane, including all trench excavation and backfill, bedding material, sewer pipe, manholes, wyes, lampholes, service line stubs and other necessary appurtenances. Pursuant to Commission action and direction thereon on September 20, 1978, the Commission authorized the publication of notices inviting construction proposals and such notices were published in the form and manner prescribed by law. The Commission then met in open session on October lIt 1978, and publicly openedt examined and declared all construction bids received for construction of the Improvements. Pursuant to Commission action and direction thereon on November 3t 1978, the Commission determined that the lowest regular proposal or bid of responsible bidders for construction of the Improvements in each of the Districts in accordance with the specifications on file with the engineer was from Clause Excavating and Construction, of Wordent Montanat in the amount of $176,225 and awarded the contract for the construction of the Improvements to said contractor. 1.03 Total Cost and Expense. The Commission has estimated that the cost and expense connected with and incidental to the formation of the Districtst including costs of I preparation of plans, specifications, maps, plats, engineering, superintendence and inspection, preparation of assessment rollst the compensation of the engineer for work done by him, the cost of printing and advertising as provided by statute, the expenses of making the assessment for the work, the cost of work and materials under the construction contractst and all other costs and expenses, will be $40,000 for District No. 595t $105,000 for District No. 596 and $66,000 for District No. 597 which amountst together with interest thereon, will be levied COMMISS:WN RESOLUTION NO. 2039 .____ .._~~_ n.~. _.~__,_ _.,..~~~__,_~,.~~_.,..~ __'~__................~.,,__.,_,,~~.-..........-.._____.~......_........._......_, .,~ '.,__._~_~,~~.__ _._,_,_.,'_,.""_.~................~__~.~,.,'~ .._........_,,__,. _"..__ _..,._._ .,_~_.,_._..~_ _,.~~_~_". ._,_.._~.,.. ..~~.. ~~_.,.,_~__.. 1:2,9 and assessed upon all property in the Districts on the basis described in the aforesaid Resolutions of Intention and pursuant to Commission action and direction thereon on September 20, 1978, the Commission determined to issue special improvement district bonds in said amounts. 1.04 Sale of Bonds. After the publication of the Notice of Sale of Bonds for Districts Nos. 595, 596 and 597 in the form and manner required by law, the Commission, in the best I interests of the City, rejected at its meeting of October 18, 1978, the one bid received pursuant to the Notice and authorized the City Manager to negotiate the sale as provided in Section 11-2315, R.C.M., 1947, as amended. Pursuant to Commission action and direction on November 3, 1978, the Commission determined to sell the Bonds at private sale, deeming it for the best interests of the City to do so and accepted proposals for and awarded the contracts for the purchase of the Bonds to Boettcher and Company, Denver, Colorado. Subsequent to November 3, 1978, the proposals were renegotiated with respect to the interest represented by the supplemental "B" coupons to be attached to each issue of the Bonds, without significantly changing the estimated net effective interest rate for each issue in the original proposals. Copies of the amended proposals for the purchase of the Bonds received from Boettcher and Company (the Purchaser) are attached hereto as Exhibits A, Band C. 1.05 Compliance with Constitution and Statutes. All acts, conditions and things required by the Constitution and laws of the State of Montana, including Chapter 11-22, R.C.M. 1947, as amended, in order to make the Bonds valid and binding special obligations in accordance with their terms and 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 required. Section 2. Authorization; Terms; Execution and Delivery. 2.01 Authorization. For the purpose of paying all costs and expenses incurred and to be incurred in the construction of the Improvements in the Districts and in anticipation of the collection of special assessments to be levied therefor in each of the Districts, and in accordance with the amended contracts of purchase therefor attached as Exhibits A, Band C, the Commission I shall forthwith issue and deliver to the Purchaser its bonds in three issues (collectively, the Bonds), as provided in Sections 2.02, 2.03 and 2.04. The Commission hereby finds and determines that it is in the best interest of the City to sell the Bonds at private sale to the Purchaser and hereby awards the sale of the Bonds to the Purchaser, all pursuant to the terms of the attached amended contracts of purchase. 2.02 The District No. 595 Bonds; Date; Maturity; Interest Rates. The Special Improvement District No. 595 Bonds of the City shall be issued in the total principal amount of $40,000 (the District No. 595 Bonds), payable solely from and drawn upon the Special Improvement District No. 595 Funds (the District No. 595 Fund), created in Section 4.01. The District No. 595 Bonds shall be dated as of January 1, 1979, and shall be due and payable January I, 1994. The District No. 595 Bonds shall be 40 in number, numbered serially in order of their registration from 1 through 40, each in the denomination of $1,000, payable to bearer. The District No. 595 Bonds shall bear interest evidenced by two sets of interest coupons attached thereto, with one of the sets designated "A" and the other supplemental set designated "B", at the following rates: Per Annum Bond Numbers Coupon Interest Rates (both inclusive) "A" "B" 1 to 5 7.00% 5.75% 6 to 8 7.10 5.75 9 to 10 7.20 5.75 11 to 13 7.25 5.75 14 to 16 7.30 5.75 I 17 to 18 7.35 5.75 19 to 21 7.40 5.75 22 to 24 7.50 5.75 25 to 26 7.60 5.75 27 to 29 7.70 5.75 30 to 40 7.75 5.75 The "A" coupon interest shall be payable from the date of registration until called for redemption or paid in full on January I, 1980, and annually thereafter on the first day of January of each year. On Bonds numbered 1 through 24, the "B" coupon interest shall be payable COMMISSION RESOLUTION NO. 2039 .~---- . -_..~---,._~~. ~" --~,-- ~, ---..-- _ ... ~~ --->....0._ ._. .'. _ ,__. _. .~ -'.'-.. --.- --"" ._,~.,~~-- _.._...,~.._......- --_.~-,--' ---.. -- . ~._".,~ - ....--."- n._ ~. _.~~ --- .--- -.- ~~...- .._-_.~ ..-- ...-.---- ----~..............---~- --_.~.~_. - ..--.-.-- .. ....~.....r~_ _ ~._~ ~._.~-~- ...~ - 130 for the period from January 1, 1979, to January 1, 1980, only on January 1, 1980. On Bonds numbered 25 through 40, the "B" coupon interest shall be payable for the period from January 1, 1979, to January 1, 1981, only, on January 1, 1980, and January 1, 1981. 2.03 The District No. 596 Bonds; Date; Maturity; Interest Rates. The Special Improvement District No. 596 Bonds of the City shall be issued in the total principal amount of $105,000 (the District No. 596 Bonds), payable solely from and drawn upon the Special I Improvement District No. 596 Fund (the District No. 596 Fund), created in Section 4.01. The District No. 596 Bonds shall be dated as of January 1, 1979, and shall be due and payable January 1, 1994. The District No. 596 Bonds shall be 105 in number, numbered serially in order of their registration from 1 through 105, each in the denomination of $1,000, payable to bearer. The District No. 596 Bonds shall bear interest evidenced by two sets of interest coupons attached thereto, with one of the sets designated "A" and the other supplemental set designated "B", at the following rates: Per Annum Bond Numbers Coupon Interest Rates (both Inclusive) "A " "B" 1 to 14 7.00% 5.75% 15 to 21 7.10 5.75 22 to 28 7.20 5.75 29 to 35 7.25 5.75 36 to 42 7.30 5.75 43 to 49 7.35 5.75 50 to 56 7.40 5.75 57 to 63 7.50 5.75 64 to 70 7.60 5.75 71 to 77 7.70 5.75 78 to 105 7.75 5.75 The "A" coupon interest shall be payable from the date of registration until called for redemption or paid in full on January 1, 1980, and annually thereafter on the first day of I January of each year. On Bonds numbered 1 through 63, the "B" coupon interest shall be payable for the period from January 1, 1979, to January 1, 1980, only, on January 1, 1980. On Bonds numbered 64 through 105, the "B" coupon interest shall be payable for the period from January 1, 1979, to January 1, 1981, only, on January 1, 1980, and January 1, 1981. 2.04 The District No. 597 Bonds; Date; Maturity; Interest Rates. The Special Improvement District No. 597 Bonds of the City shall be issued in the total principal amount of $66,000 (the District No. 597 Bonds), payable solely from and drawn upon the Special Improvement District No. 597 Fund (the District No. 597 Fund), created in Section 4.01. The District No. 597 Bonds shall be dated as of January 1, 1979, and shall be due and payable January 1, 1994. The District No. 597 Bonds shall be 66 in number, numbered serially in order of their registration from 1 through 66, each in the denomination of $1,000, payable to bearer. The District No. 597 Bonds shall bear interest evidenced by two sets of interest coupons attached thereto, with one of the sets designated "A" and the other supplemental set designated "B", at the following rates: Per Annum Bond Numbers Coupon Interest Rates (both inclusive) "A " "B" 1 to 9 7.00% 5.75% 10 to 13 7.10 5.75 14 to 17 7.20 5.75 18 to 22 7.25 5.75 23 to 26 7.30 5.75 27 to 30 7.35 5.75 I 31 to 35 7.40 5.75 36 to 39 7.50 5.75 40 to 43 7.60 5.75 44 to 48 7.70 5.75 49 to 66 7.75 5.75 The "A" coupon interest shall be payable from the date of registration until called for redemption or paid in full on January 1, 1980, and annually thereafter on the first day COMMISSION RESOLUTION NO. 2039 .__._..n. ---..-.-.- .. .---...- ............._.__."'._.~..____. n.'._ ~~..~.~..... . -~.... -- .~._.~..-_..-..-.-.~.. ~--..... ..~~. ._~. _.-.~_. -- .._~. .-............._ - ,,_._~_ _.~_""""'.n.. .._. ~_._._.~~,,_.__ .".',,~~.._.,,~. - .~.,,~._........,,_._. .~..---'-".~..~-_....._~ ~~- ~_._--_._._......- _.~-~---_.- - - ~-~_.._.~._. --.- - -.-.--.. ._._-............-~-_. ~--~-_. --~-_.-.__._~--. - .---~~.- ~ - -... .. -- .- .---. -.- . . 131 of January of each year. On Bonds numbered 1 through 39, the "B" coupon interest shall be payable for the period from January 1, 1979, to January 1, 1980, only, on January 1, 1980. On Bonds numbered 40 through 66, the "B" coupon interest shall be payable for the period from January 1, 1979, to January 1, 1981, only, on January 1, 1980, and January 1, 1981. I 2.05 Paying Agent; Redemption. The principal of and interest on each issue of the Bonds shall be payable at the office of the City Finance Director of the City of Bozeman, Montana, (the Finance Director), in Bozeman, Montana. The interest on each issue of the Bonds shall be paid by the Finance Director from the District No. 595 Fund, the District No. 596 Fund or the District No. 597 Fund, as the case may be, on presentation of the coupons as they severally become due, and any balance remaining in each of the respective Funds shall be applied to the payment of the principal and the redemption of the Bonds paid from that Fund in the order of their registration. Whenever there is any balance in each of the respective Funds after paying the interest due on all Bonds drawn against it, the Finance Director 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 each of the respective Funds on that date. The date of redemption shall be fixed by the Finance Director, who shall, in the manner prescribed by ~ 11-2231, R.C.M. 1947, as amended, give notice by publication or, at the option of the Finance Director, by mail to the holder or holders 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 than ten days after the date of publication or of service of notice. On the date so fixed interest shall cease. 2.06 Execution and Registration. The Bonds shall be prepared under the direction of the Clerk of the Commission (the Clerk). The Bonds and the interest coupons appurtenant thereto shall be executed and authenticated on behalf of the City by the signatures of the Mayor and the Clerk. The City seal shall be affixed to each Bond. The Bonds and coupons appurtenant thereto I shall then be registered in order of their numbers by the Finance Director as of the 1st day of January, 1979. The fact of such registration shall thereupon be noted on each Bond together with the signature of the Finance Director so attesting. All signatures and the seal shall be printed, engraved or lithographed facsimiles except for the manual signature of at least one of such officers on the face of each Bond. 2.07 Delivery. The Bonds shall be delivered by the Finance Director to the purchaser upon payment of the par value thereof plus accrued interest from the registration date to the date of such delivery and payment. The purchaser shall not be obligated to see to the application of the purchase price, but the proceeds of the Bonds shall be credited by the Finance Director forthwith to the respective Fund for each of the Districts and used solely for the payment of the costs and expenses necessarily incurred in the completion of the Improvements in each of the Districts, except that the accrued interest received with respect to each issue of the Bonds shall be applied in payment of interest on the Bonds when due. Section 3. Form of Bond and Coupon. Each issue of Bonds, the interest coupons appurtenant thereto and the certification with respect to the legal opinion on the reverse side thereof shall be in substantially the following form, in accordance with ~ 11-2231, R.C.M. 1947, as amended, with suitable variations for the District No. 595 Bonds, the District No. 596 Bonds and the District No. 597 Bonds: I COMMISSION RESOLUTION NO. 2039 ~_~__ n ._ .___..__~_ --- -~~~~~-~-_... - .~.- ...~~~. --~-- -.- ~.,..~-_._-~ --_..._..._._,,-~-' - .-.--. ......_~.~_. - ..~_..- .._._~..- ..._&..-....-..--- -.- ".~-~. ._-_..~._- - -, .. ...-..--.---. .. ~ ..~ -. -. -.---- .- -_.._..~- -. ...-. -~-_.... ~.-.- ~~~. ...-..... . --~ -~ -----. ..._--...__.._~. ._~.. "~.__._~~-~.. ......_._._...~.~._~.. -. -- ,,_. . '--~-- -- -~.... ~ __~_ ... . - _n _ ".. 132 (Form of Bond) UNITED STATES OF AMERICA STATE OF MONTANA CITY OF BOZEMAN SPECIAL IMPROVEMENT DISTRICT NO. 595 (596) (597) COUPON BOND I INTEREST AT THE RATE OF AND HUNDREDTHS PERCENT (__.~) PER ANNUM PAYABLE JANUARY 1, 1980, AND ANNUALLY THEREAFTER AND SUPPLEMENTAL INTEREST AT THE RATE OF FIVE AND SEVENTY-FIVE HUNDREDTHS PERCENT (5.75%) PER ANNUM FOR THE PERIOD FROM JANUARY 1, 1979, TO JANUARY 1, 1980 (1981), ONLY PAYABLE ON JANUARY 1, 1980 (AND JANUARY 1, 1981). ISSUED BY THE CITY OF BOZEMAN, MONTANA, AT BOZEMAN, MONTANA Bond No. $1,000 The Finance Director of the City of Bozeman, Montana, will pay to bearer the sum of ONE THOUSAND DOLLARS solely out of the special fund hereinafter described as authorized by Resolution No. 1983 (1979) (1980) of the City Commission of the City of Bozeman, Gallatin County, Montana, as passed on the 17th day of May, 1978, creating Special Improvement District No. 595 (596) (597) (the District), for the construction of the improvements and work performed as authorized in said resolution to be done in the District, and as authorized by and pursuant to the terms of Resolution No. 2039 of the City Commission, as passed on the 29th day of November, 1978, and all laws, resolutions and ordinances relating thereto, in payment of the contracts in accordance therewith. The principal and interest of this bond are payable at the office of the City Finance Director of the City of Bozeman, Montana. This bond bears interest at the rate of and hundredths percent ( .---!o) per annum from the date of the registration of this bond, as expressed herein, I until the date called for redemption by the City Finance Director, and supplemental interest at the rate of five and seventy-five hundredths percent (5.75%) per annum for the period from January 1, 1979, to January 1, 1980 (1981), only. The interest on this bond is payable on the first day of January, 1980, and annually thereafter on the first day of January in each year, unless paid previous thereto, and as expressed by the two sets of interest coupons hereto attached, with one of said sets designated "A" and the other supplemental set designated "B", all of which coupons bear the engraved facsimile signatures of the Mayor and the City Clerk. This bond is payable from the collection of a special tax or assessment which is a lien against the real estate within the District, as described in said resolution hereinbefore referred to. Reference is hereby made to Resolution No. 2039, as passed on the 29th day of November, 1978, for a description of the provisions, terms and conditions upon which this bond is issued and secu,red, including without limitation, the nature and extent of the security for this bond, the collection and disposition of the assessments and other moneys, if any, charged with and pledged to the payment of this bond, a description of the special fund referred to below and the nature and extent of the security and pledge afforded thereby for the payment of this bond, as well as the rights, duties and obligations of the City of Bozeman and its City Commission and also the rights of the holder of this bond. This bond is payable on or before the first day of January, 1994, and is redeemable when I there are funds to the credit of the Special Improvement District Fund for the redemption hereof, and in the manner provided for the redemption of such bonds. The date of redemption shall be fixed by the City Finance Director, who shall give notice by publication once in a newspaper in Bozeman, Montana, or at the option of the City Finance Director by written notice to the holders of such bonds, if their addresses be known, of the number of bonds and the date on which payment will be made, which date shall not be less than ten days after the date of publication or of service of notice, on which date so fixed interest shall cease. IT IS HEREBY CERTIFIED AND RECITED that all things required to be done precedent to the issuance of this bond have been properly done, happened and been performed in the manner CQKM~SS;I:QN RESQLUTIQN NQ. 2039 _.~._... ~_.~. .~ .~~.- -~.- ,,- -.._.~- . .n.. .. _..._..... ..~._. ~ ...~,,~.~.~.__.~_.~._ ........_._._.n .. ._..A'_.__ __ ~..._._.. ...~~. . ,,_ .~~__....__.~_ . ..~ ._. .._n_."_ . _ _. _._~__~ ..................~_....... ..... .- .~-~~ __..~.n. ~ .~~_.~ ....-- ~--~ -- ..___.u_._._.. - ~ - _.~ .___. - . - ................_ - _._ - ..._ ~ __. ~_________. __ ..n .- ....-.--- ~-_.~ -- -.-- - - .--. - .~-_....,...- .-. - ..~._--"'- ...--.---- ....... ; 133 prescribed by the laws of the State of Montana and the resolutions and ordinances of the City of Bozeman, Montana, relating to the issuance hereof. DATED at Bozeman, Montana, this 1st day of January, 1979. I k- ". (SEAL) (Manual Signature) Clerk of the City Commission (SEAL) Registered at the office of the City Finance Director of Bozeman, Montana, as of the 1st day of January, 1979. (Facsimile Signature) City Finance Director (End of Form of Bond) I (Form of Interest Coupon) No. $ Unless the bond described below is called for earlier redemption, the City of Bozeman, Montana, will pay to bearer on the first day of January, 19 , at the office of the City Finance Director of Bozeman, Montana, in Bozeman, Montana, solely out of the special fund described in the bond to which this coupon appertains, the amount shown hereon in lawful money of the United States of America, for interest then due on its Special Improvement District No. 595 (596) (597), Coupon Bond, dated January 1, 1979, bearing No. . ~~ ~ Y""'--_-' : W---/ ...4: Facsimile Si nature)'-.---. - Mayor (Facsimile Signature) Clerk of the City Commission I (End of Form of Interest Coupon) COMMISSION RESOLUTION NO. 2039 --..- --.-. -........- _...~-~ - ~ ~._. "_ _~ ~_n.~ _.._.___ ~_n~_ .~_ _ _~_..__~ . _ _. n _n____._.".___...._ -..- -. - -_...~_._".._.~-~- .~ -. .-..- un_. .-----.---- . -_...._~~--~ - - ~ ..._-~-~..- - -- . ---~~-_._-_...._..-. ~- ~~_. _._-~_...._~ - - -. -,~.....~~-- __'_r ~____~~_.'__'~'''''''''''''''''-'. _____.__._._._..................~__ _ .......~.. ._~,._..~ . -.. .~. -..., - ..._~~._- ...--.- --~ ~ ~~. - .-. -----. ~~._~ _.n~~... 134 (Form of Certification) IT IS HEREBY CERTIFIED that the foregoing legal opinion is a true and correct copy of the original legal opinion of DeMuth, Eiberger, Kemp & Backus, Attorneys at Law, Denver, Colorado, and that said original legal opinion is signed by said attorneys and dated as I of the date of delivery of and payment for the bonds therein described. (Facsimile Signature) Clerk of the City Commission Bozeman, Montana (End of Form of Certification) Section 4. Security Provisions. 4.01 Creation of Special Improvement District Funds. There are hereby created and established three funds designated as the "Special Improvement District No. 595 Fund," "Special Improvement District No. 596 Fund," and "Special Improvement District No. 597 Fund" (collectively, the Funds), into which shall be deposited all moneys collected on account of special assessments to be levied and collected as hereinafter provided and out of which shall be paid the principal of and interest on the Bonds as hereinbefore provided and as authorized by Chapter 11-22, R.C.M. 1947, as amended. The Funds shall be maintained by the Finance Director on the books and records of the City, separate and apart from all other funds of the City. I 4.02 Covenants. The City covenants and agrees with the holders from time to time of each of the Bonds that so long as the Bonds, or any interest thereon, remain unpaid: (a) The City will hold the Funds and the Special Improvement District Revolving Fund created by Ordinance No. 612, duly adopted October 2, 1931 (the Revolving Fund), 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. (b) The City will do all acts and things necessary to assure the completion of the Improvements in the Districts 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 Funds for each District and within the amount of the bond proceeds appropriated thereto. (c) 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 each of the Districts, in accordance with the Constitution and laws of the State of Montana and the Constitution of the United States, in aggregate principal amounts not less than $40,000 for District No. 595, $105,000 for District No. 596, and $66,000 for District No. 597. The special assessments levied in each District shall be payable in annual installments of principal on or before January 1 in each of the years 1980 through 1994 with the final installment due on or before January 1, 1994. Simple interest shall be I charged annually on the whole amount of each assessment remaining unpaid at a rate equal to the rate of interest on the Bonds then outstanding. The first installment of each assessment, due on or before January 1, 1980, shall include interest on the entire assessment from the date of registration of the Bonds to January 1, 1980, and each subsequent installment shall include interest for one year on the unpaid balance of each special assessment. All installments of special assessments not paid in full on or before the date COMMISSION RESOLUTION NO. 2039 .~--".._-~~~.- -.- ~~--~-- -~ .. - ~.~_,,~.~._ _.~..~ .. ._~__.n_____... __.~~........~._~." _.___.. .~_".. ..._. - _n._. ...___~ _~ __._ ~~..~.__."... .. .-~-~~~-..- - ..~.._. . -.--- ~ --... ....----"---"-.....- - -.- ~-- . ~-~-----~,~ ~~... ---.- ~~~~._._~_.~.__.~--- - . ..- -~. .~.. - _.n ._.. ----.--,-----__~._..__.,_..--~._~..__~~ ~ ... .__~__~.. - ._w _. _._ --. ~--_..._---- - - ---.- -- . -...--.- .._~~-- --~._.. .. . 135 due shall become delinquent on that date. The assessments shall constitute a lien upon and against the property against which they are made and levied, which lien may only be extinguished by payment of the assessment with all penalties, costs and interest as provided by law. No tax deed issued with respect to any lot or parcel of land shall operate as payment of any install- I ment of 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 ~ 84-4170, R.C.M. 1947, as amended. (d) If at any time and for whatever reason any special assessment or tax herein agreed to be levied is held invalid, the City, by and through the Commission and the officers and employees of the City, will take all steps necessary to correct the same and to reassess and re-1evy 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 hereto, and will reassess and re-levy the same with the same force and effect as an original levy thereof, as authorized in ~ 11-2238, R.C.M. 1947, as amended. Any special assessment, or reassessment or re-levy shall, so far as practicable, be levied and collected as it would have been if the first levy had been enforced including the levy and collection of any interest accrued on the first levy. (e) In connection with the issuance of the Bonds, the Commission does hereby undertake and agree, pursuant to the provisions of ~ 11-2271, R.C.M. 1947, as amended, to issue orders annually authorizing loans or advances from the Revolving Fund, to the Funds in amounts sufficient to make good any deficiency in the bond and interest accounts thereof to the extent that funds are available, and further to provide funds for the Revolving Fund I pursuant to the provisions of S 11-2270, R.C.M. 1947, as amended, by annually making such tax levy or, in lieu thereof, such loan from the general fund, subject to the maximum limitations imposed by said ~ 11-2270, R.C.M. 1947, as amended. Section 5. Arbitrage; Signatures; Certifications. 5.01 Arbitrage. The City covenants with the purchaser of the Bonds that it will make no use of the proceeds of the Bonds at any time during the term thereof which, if such use had been reasonably expected on the date the Bonds are issued, would have caused the Bonds to be arbitrage bonds within the meaning of Section l03(c) of the Internal Revenue Code of 1954, as amended, unless, under any provision of law hereafter enacted, the interest paid on the Bonds (a) shall be excludable from the gross income of a recipient thereof for federal income tax purposes without regard to whether or not the Bonds are arbitrage bonds, or (b) shall be exempt from all income taxation. 5.02 Signatures. Pursuant to the Uniform Facsimile Signature of Public Officials Act, ~ 59-1301 ~~., R.C.M. 1947, as amended, the Mayor, the Clerk, and the Finance Director shall forthwith, but in any event prior to the time the Bonds are delivered to the purchaser, file with the office of the Clerk, their manual signatures certified by them under oath. 5.03 Certifications and Miscellaneous. The officers of the City are hereby authorized and directed to enter into such agreements and take all action necessary or appropriate to effectuate the provisions of this Resolution and to comply with the requirements of law, includiIJ,g without limiting the generality of the foregoing: I (8.) The printing of the Bonds herein authorized including at the option of the_~omm~sion the printing upon each of such Bonds of a copy of the approving opinion of DeMuth, Eiberger, Kemp & Backus, bond counsel, duly certified by the Clerk; (b) The preparation of a bond offering brochure, official statement, or offering circular for the use of prospective purchasers of the Bonds, including, without limitation, the original purchaser and its associates, if any; COMMISSION RESOLUTION 2039 ~ - - -~-~-~_._---~-"-----"-----~---_.- .. - - .- -. ~......._- ._~_._-_..~--~ . u_ ... ___~ . . . __~,,__ ..~_.~ ~ .".__.___~ -..... .- _.._.._._._.~ .. _._-~~-- ,,--_....~.- _.~_.~.~_.~,..,~--~_.~ . . _~n. ..~ _ ._~_~~~.. ~____.__ u, _ _. _"__'. .._ ~ ..n __ '_~ ,. ,. _ .,__. "~~~~.~..~_'.n~..___._~~_ .--....-'___~~..~ _._.----.--...,-.-.__. 136 (c) The execution of such certificates as may reasonably be required by the original purchaser relating to the signing of the Bonds; the tenure and identity of the City officials; if in accordance with the facts the absence of litigation, pending or threatened, affecting the validity of the Bonds; receipt of the Bond purchase price with respect to each issue of the Bonds; and the accuracy and completeness of any Bond offering materials prepared; I (d) The making of various statements, recitals, certifications and warranties provided in the form of Bond set forth in this Resolution; and (e) The payment of the interest on the Bonds as the same shall accrue and the principal of the Bonds at maturity or upon prior redemption without further warrant or order. 5.04 Conflicts of Interest. No officer or employee of the City has performed an official act related to the Districts or the issuance of the Bonds directly and substantially affecting to its economic benefit a business or other undertaking in which he either has a substantialy financial interest or is engaged as counsel, consultant, representative or agent, except under the circumstances described in ~ 59-1707 (3), R.C .M. 1947, as amendedt and upon compliance with the voluntary disclosure procedures under ~ 59-1710, R.C.M. 1947, as amended. PASSED AND ADOPTED by the City Commission of the City of Bozeman at a regular session thereof held on the 29th day of November, 1978. ./-, CITY CJmnS5ION OF....B~EMAN, MONTANA . Acting Mayor (SEAL) I Attest: ~I!~~ Cl r of the City Coromi ion 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. 2039 was published at length in the Bozeman Daily Chronicle, a newspaper of general circulation printed and published in said City, in the issue dated December 15, 1978, 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 19th day of January, 1979. ~I!~~ I Clerk of the City Comml lOp COMMISSION RESOLUTION NO. 2039 -- -------........_-_._...........~._..~..__...,"_._. . ..-"._~.-..-- .... ~"., -~~-...~~~..,--. ... ....---,-~~,........,_..~.,.~,._ ._. ,~, ~ ~~...~_ ~~.m~~".'.~.~_,._ ,.,_~__..~.._,._. . ...... _,._,&._.........-..._~.............................-----...........~.._,.__