HomeMy WebLinkAboutOrdinance 48- 746, Relates to Establishment, Construction and Operation of a Sewage Disposal System
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Jj:'l{ii~::::'< ORDINANCE NO. 746
,.- .j{/fI-"- AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, RELATING TO THE ESTABLISHMENT, CONST-
RUCTION, AND OPERATION OF A SEWAGE DISPOSAL SYSTEM, PRESCRIBING RATES, CHARGES, AND
RENTALS FOR THE USE OF THE FAUILITIES THEREOF AND FOR CONNECTIONS THEREWITH, CREATING
SPECIAL FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF MONEYS DERIVED THEREFROM, AUTH-
ORIZING AND DIRECTING ISSUANCE AND SALE OF REVENUE BONDS TO PAY THE CONSTRUCTION
COSTS, AND FIXING THE TERMS AND MANNER OF PAYMENT OF THE BONDS AND THE SECURITY
THEREFOR.
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BE IT ORDAINED by the City Commission of the City of Bozeman, Montana, as follows:
Section 1. It is hereby found, determined, and recited that the City of Bozeman
has been and is now duly authorized and empowered, pursuant to Chapter 149, Session Laws
of Montana, 1943, and amendments thereto, and by an election and other proceedings here-
tofore duly had and conducted by the City thereunder: to establish, build, and construct
a sewage treatment and disposal plant for public use in connection with the City's sani-
tary sewerage system, together wlth necessary enlargements and extensions of trunk sewers;
to adopt ordinances whereby just and equitable rates, charges, or rentals shall be im-
posed and collected for connections therewith and for the use of such facilities and
services supplied thereby; and to issue and sell Revenue Bonds in an aggregate principal
amount not exceeding $300,000.00, to provide moneys for such construction; that it is
essentlal to the health, safety, and welfare of the City and its inhabitants that such
improvement be made forthwith; that the sum of $300,000.00 is immediately needed for such
purpose; and that bonds in the".pr"f:nctpal amount of $300,000.00 should be issued forthwith.
Section 2. Pursuant to the authority recited above, a sewage disposal system is
hereby established and ordered to be installed, built and constructed to comprise princip-
ally a plant or plants for treatment of sewage collected in the City's sanitary system,
the enlargement and extension of trunk sewers or other conduits for connecting said san-
itary system with said plant and for disposal of sewage so treated, and such incidental
work and facilities as may be needed in connection with the foregoing, all as more fully
set forth and described in the plans and specifications therefor approved and to be ap~-
proved by this Commission.
Section 3. For the proper administration of moneys to be received and disbursed
by the City in constructing and operating such system and repayment of moneys borrowed
for such construction and interest thereon, there are hereby established ~ the following
special funds of the City, to be held by its Director of Finance and to be used as herein
prescribed, viz:
3.1 A Sewage Disposal System Construction Fund, into which shall be paid all moneys
borrowed by the issuance of Revenue Bonds hereunder (ijxclusive of accrued interest there~
on paid by the purchaser, which shall be paid into the Revenue Bond Euadunt hereinafter
defined), and from which there shall be paid as incurred all, but only, those ttemS whicn
by sound accounting practices are proper capital costs of the establishment and construc-
tion of said system.
3.2 A Sewage Disposal System Revenue Fund, into which shall be paid, as received by
the City, all revenues to be derived from the rates, charges, and rentals imposed for conn-
ections with and for the use of said system, including all additions thereto and replace-
ments and improvements thereof originally or subsequently constructed or acquired or for
the benefits prOVided by the facilities of said system or to be received upon sales of
by-products thereof or of property acquired in connection therewith, and including all
penalties and interest on such rates, charges and rentals, the aggregate of all the fore-
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going being herein called the "gross revenues".
Said Revenue Fund shall be subdivided into four accounts, to be known and designated as
"Operation ,and Maintenance Account", "Replacement and Depreciation Account", "Revenue
Bond Account", and "Surplus Account". The gross revenues shall be apportioned by the
Director of Finance once in each calendar month, as long as any bonds authorized hereunder
or interest thereon remain unpaid, and shall be credited to said accounts as follows:
3.2-1 There shall be first set aside and credited to the Operation and Maintenance
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Account, as a first charge on said gross revenues, all, but only, such amount as
may be needed over and above any amount then held in said account to pay the current
reasonable and necessary expenses of operation, administra~ion, and maintenance
of the sewage disposal system for a period of one month plus a reasonable reserve
for contingencies.
3.2-2 There shall next be set aside and credited to the Replacement and Depreciation
Account 10~ of such gross revenues.
3.2-3 There shall be next set aside and credited to the Revenue Bond Account the
entire
I amount remaining of s8id gross revenues until and unless the amount then oh hand in
said Revenue Bond Account shall equal 120% of the total principal and interest
which is then or will become due and payable during the period of twelve months
next following the date of such apportionment on all Revenue Bonds authorized by
this ordinance and then issued and outstanding or which have been directed to be
delivered and will be outstanding during said twelve months.
3.2-4 Any amount of such revenues remaining after the above required applications
thereof shall be credited to the Surplus Account.
3.3 There shall be paid out of said Operation and Maintenance Account only such
items as by sound accounting practices constitute normal and reasonable eosta of
operation and maintenance of said system.
3.4 Moneys from time to time held in said Replacement and Depreciation Account
shall be used only to pay for replacements of worn out or obsolete propertieacoom-
prised in said system or for extension and enlargements or improvementssto said
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system.
3.5 Moneys from time to time held in the Revenue Bond Account shall be used only
to meet payments of principal or interest on Revenue Bonds authorized by this ordi-
nance then outstanding, when and as such pawments become due; provided, that if any
such payment becomes due when moneys in the Revenue Bond Account are temporarily
insufficient therefor, such payments may be advanced from any other account of
said Revenue Fund, and said advances may be repaid from the Revenue Bond Account
when funds are available therefor. Moneys in the Revenue Bond Account shall not
be used to prepay Revenue Bonds unless the amount in said Revenue Bond Account,
together with other moneys available for such purpose, equals the total principal
on all such bonds then outstanding, plus interest thereon to the date when said
bonds are redeemable, and all outstanding bonds are then redeemable by their terms,
in which case the entire amount then on hand may be used to retire and prepay the
outstanding bonds according to their terms.
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3.6 Moneys in the Surplus Account may a t any time be transferred to any of the other
accounts of said Fund to make up deficiencies therein, or may be used to redeem and
prepay bonds issued hereunder then outstanding which are then prepayable according to
their terms; provided that the City Commission may, at any time and from time to time
appropriate an amount in said surplus Account for future vedemptions and prepayment
of bond$'which are not at that time callable, and may invest such amount, pending
its use for such redemptions, in securities which are general obligations of the
United States of America or of the City of Bozeman or in Revenue Bonds issued here-
under. Nothing contained herein or in the bonds issued hereunder shall be construed
to preClude the City from issuing additional revenue bonds for the enlargement,
improvement, or extension of the sewage disposal sys tem or for betterments'tfue:tetm) ,.
prOVided such additional bonds are expressly made a charge on, and are payable from
the anticipated income ot, said Surplus Account, inferior to the bonds issued here-
under as to the lien and aharge upon the net revenues of the system.
Section 4. For the purpose of providing moneys for the construction of said
sewage disposal system, the City shall issue its negotiable Sewage Disposal Revemue
Bonds in the aggregate principal amount of $300,000.00, said bonds to be 300 in number
and numbered from 1 to 300 inclusive, each in the denomination of $1000, all dated April
1, 1948, maturing serially in order of serial numbers, lowest numbers first, on April
1st in the years and amounts as follows: 1949, $10,000; 1950, $11,000;. 1951, $11,000;
1952, $12,000; 1953, $12,000; 1954, $13,000; 1955, $13,000; 1956, $14,000; 1957, $14,000 ;
1958, $15,000; 1959, $15,000; 1960, $16,000; 1961, $16,000; 1962, $17,000; 1963, $17,000;
1964, $:J.8,000; 1965, $18,000; 1966, $19,000; 1967, $19,000; 1968, $20,000. Said bonds
shall bear interest at the following rates: Numbers 1 through 56 at 2t%j numbers 57
through 224 at 2-7/8%; and numbers 225 through 300 at 3-t%; all such interest to be pay-
able October 1, 1948, and semi-annually thereafter on April 1 and October 1 of each year.
Bonds numbered 1 to 125 inclusive, shall be payable at their respective stated
maturity dates without option of prior payment. Bonds numbered 126 to 300, inclusive,
shall be subject to call for prepayment, in inverse order of serial numbers, at the option
of the City of Bozeman, at par and accrued interest, plus a redemption premium equal to
one year's interest on the respective bonds so called for pp~pa,ment, on the following
initial prepayment dates and on each interest payment date thereafter, viz.: Numbers 281
to 300, April 1, 1953; numbers 262 to 280, April 1, 1954; numbers 243 to 261, April 1,
1955; numbers 225 to 242, April 1, 1956; and numbers 126 to 224, April 1, 1958, all numbers
inclusive. Notice of call for each such redemption sha].l be given thirty days in advance
of the date fixed for redemption by registered mail to the bank at which the bond is pay-
able and to the holder, if known, and by publication in a newspaper of general circulation
printed and published in the City of Bozeman, once a week for two successive weeks immed-
iately preceding such redemption. Both principal of and interest on said bonds shall be
payable at the main office of the First National Bank of Minneapolis, Mi~n9a~ol1A,
Minnesota, in any coin or currency of the United States of America which on the respective
date of payment is legal tender for public and private debts. The City shall pay, as an
operating cost of said system, the reasonable and customary charges of said bank for the
receipt and disbursement of such moneys. Said bonds shall be issued payable to bearer, but
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may be registered as to principal only, at the option of the holder, upon books to be
maintained for that purpose by The Director of Finance of the City of Bozeman, Montana.
Section 5. The said bonds and the interest coupons tOIbe attached thereto shall
be in substantially the following form; with appropriate insertions as to numbers, dates,
interest rates, etc:
No.
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BOZEMAN
SEWAGE DISPOSAL REVENUE BOND
$1000
KNOW ALL MEN BY THESE PRESENTS that the City of Bozeman, Montana, hereby promises
to pay, out of the Revenue Bond Account of its Sewage Disposal System Revenue Fund, to
bearer or, if this bond is registered, to the registered holder thereof, the sum of ONE
THOUSAND DOLLARS on April 1, 19 ,and to pay, out of said Account, interest on said
principal sum, from the date hereof until sAid principal sum be paid, at the rate of
per cent ( %) per annum, payable October 1, 1948, and semiannually:" thereafter ~
April 1 and October 1 of each year, interest to maturity being payable in accordance with
and upon presentation and surrender of the interest coupons hereto attached. Both prinCip-
al and interest are payable at the main office of the First National Bank of Minneapolis,
Minneapolis, Minnesota, in any coin or currency of the United States of America which on
the respective date of payment is legal tender for public and private debts.
This bond is one of an issue in an aggregate principal amount of $300,000, all of
like date and tenor except as to interest rate, maturity, and redemption privileges, all
issued for the purpose of constructing a plant and system for public use for the treatment
and disposal of sewage at and for said City, and is issued pursuant to and in fulf conform-
ity with the Constitution and Laws of the State of Montana and ordinances of said City
thereunto enabling, including Chapter 149 Session Laws of Montana for 1943 and acts amend-
atory thereof and supplemental thereto, and Ordinance No. ____ duly enacted by the City on
, 1948.
This bond is transferable by delivery, except while registered as to principal in
the name of the holder on the bond register of the City k'pt for that purpose at the office
of its Director of Finance, such registration being noted hereon by the said Director.
While so registered, no transfer hereof shall be valid unless made on such register by the
registered holder in person or by his attorney duly authorized in writing, and similarly
noted hereon, but this bond may be discharged from registration by being in like manner
transferred to bearer, but this bond may again and from time to time be registered in the
name of the holder or transferred to bearer as before. Such registration shall not affect
the negotiability of the coupons hereto attached, which shall continue to be payable to
~ bearer and transferable by delivery.
Bonds of this issue bearing serial numbers 1 to 125, inclusive, are payable at
their respective stated maturity dates without option of prior payment; but those bearing
serial numbers 126 to 300 inclusive, are each subject to redemption and prepayment, 1m
inverse order of serial numbers, at par and accrued interest, plus a redemption premium
equal to one year's interest hereon, at the option of the City, on the following speCif-
ied dates and on any interest payment date thereafter, viz: numbers 281 to 300 on April 1,
1953; numbers 262 to 280 on April 1, 1954; numbers 243 to 261 on April 1, 1955; numbers
225 to 242 on April 1, 1956; and numbers 126 to 224 on April 1, 1958; all numbers inclusive.
The City will give notice for each call for any such redemption, thirty days in advance of
the date fixed for redemption, by registered mail to the bank at which the bond is payable
and to the holder, if known, and by publication in a newspaper of general circulation
printed and published in the City of Bozeman, once a week for two successive weeks immediat.
ely preceding such redemption. Holders desiring to receive such notice may, with or with-
out registration under the preceding paragraph hereof, register their names, addresses, and
bond numbers with the City's Director of Finance for the purpose of receiving such notice.
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IT IS HEREBY CERTIFIED, RECITED, COVENANTED, AND AGREED: That the City has duly
established and will forthwith construct the plant and s,stem above mentioned; has fixed
and established and will collect reasonable rates and charges for the services and facil-
ities afforded by said system; has created a special fund, into which the gross revenues
of said system, including all additions thereto and replacements and improvements thereof,
will be paid, and a Revenue Bond Account therein, into which wllllbe paid monthly suffic-
ient of the net revenues of said system to create, as soon as may be and thereafter to
maintain, in said Account a sum equal to l20~ of the total principal and interest payments I
to fall due on bonds of this issue within the succeeding twelve months period, and out of
which Account the principal of and interest on bonds of this issue will be paid; that such
rates and charges will from time to time be made and kept sufficient to prOVide income
and revenues adequate for payment of the reasonable expense of operation, repair, and
maintenance and for the depreciation and replacement account required by law, and to pro-
duce net revenues for the aforesaid payments into said Revenue Bond Account; that the
payments above mentioned constitute a first and prior charge and lien on the entire net
income and revenues to be derived from the operation of said system; that all provisions
for the security of the holders of this bond set forth in Ordinance No. will each and
all be punctually and faithfully performed as therein stipulated; that arr-acts, conditions,
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and things required by the Constitution and Laws of the State of Montana and the Ordinances
of said City to be done, to exist, and to have been performed, in order to make this bond
a valid and binding special obligation of said City according to its terms, have beeD done,
do exist, and have been performed as .oqp~qu!red; and that the issuance of this bond did
not cause indebtedness, general or special, of said City to exceed any charter, constitut-
ional, or sta tutory limi ta tion.
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its City Commission, has
caused this bond to be executed in its behalf by the signature of its Mayor and its
Director of Finance, atte'sted by the Clerk of the City Commission, and sealed with its
corporate seal, and the attached interest coupons to be executed and authenticated by the
facsimile signatures of said officers, as of April 1, 1948.
C?~ fC'-l .o~<._~./
Mayor
Attest:
Clerk of the City Commission
Director of Finance
(SEAL)
(Form of Coupon)
No.
$
On the 1st day of , 1948, the City of Bozeman, Montana, will pay to
bearer at the main office of the First National Bank of Minneapolis, Minneapolis,
Minnesota, out of the special fund and account named in the attached bond, the sum of
DOLLARS, for interest then due on its Sewage Disposal Revenue
Bond dated April 1, 1948, No. .
(Facsimile signature)
Clerk of the City Commission
(Facsimile signature)
Director of Finance
(Facsimile signature)
Mayor
The words "Unless called for earlier redemption" shall be included in coupons
maturing on and after the following dates:
For Bonds numbered ~
281 to 300 October 1, 1953
262 to 280 October 1, 1954
243 to 261 October 1, 1955
225 to 242 October 1, 1956
126 to 224 October 1, 1958
(Form of Registration to be printed on back of each bond)
The within bond has been registered~ as to ownership of principal only, on the
bond registry of the within named City of Bozeman, kept at the office of its
Director of Finance, Bozeman, Montana.
NO WRITING HEREON EXCEPT BY SAID DIRECTOR
Date
Re~is tered Owner
Si~nature of Director
Section 6. All of said bonds shall be forthwith prepared for execution under
direction of the Director of Finance and the bond purchasers, and when so prepared all
thereof shall be executed in behalf 6t the City by the signature of the Mayor and Director
of Finance and attested by the Clerk of the City Commission, and the interest coupons on
each and all thereof shall be executed and authenticate.d by the engraved or lithographed
facsimile signatures of said officers. Said bonds shall be sealed with the corporate
seal of the City, and, after being registered by the Director of Finance in like manner
8S specified in Revised Codes of Montana, 1935, Section 5278.18, shall be delivered by
the Director of Finance to Kalman & Company, of Minneapolis, Minnesota, as purchasers
thereof, upon payment to said Director of the par value of said bonds plus interest accrued
thereon from April 1, 1948, to the da~e of such payment and delivery, and said purchaser
shall not be obliga ted to. see to the appliea tion of said purchase price. Said bonds shall
be so delivered whether or not any or all of the officers whose signatures appear thereon
have then ceased to occupy their respective offices, and when so delivered and paid for
they shall cons ti tu te the obliga tions of the City according to their terms.
Section 7. The aggregate amount of bonds which may be issued and sold hereunder
which shall be payable from, and constitute a lien and charge on, said Revenue Bond Account,
and the net income pledged thereto is limited to $300,000 principal amount, and each and
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all of the bonds authorized by this ordinance and issued in accordance herewith shall be
equally and ratably secured by and payable out of the net revenues of said system hereby
appr~priated to said account, without preference or priority of anyone bond over any other
by reason of serial number, ma~lrity date, or otherwise; provided that, if at any time the
moneys in said Revenue Bond Account are insufficient to pay principal and interest then due
on bonds issued hereunder, the moneys in said account shall be first used to pay the accrued I
interest, and the balance shall be applied toward payment of maturing principal, in order
of serial numbers of the bonds represented thereby, and the City reserves the right and
privilege of refunding any of such matured bonds for the payment of which funds are not
at the time available by the issuance of new bonds payable from said Revenue Bond Account,
which refunding bonds shall be on a parity with bonds~heretofore issued hereunder as to
interest charges, but the maturity of which refunding bonds shall be subsequent to that
of all bonds issued hereunder and then outstanding.
Section 8. The City hereby covenants and agrees with the purchasers and holders
from time to time of the bonds issued hereunder as follows:
(a) It will cause the sewer system and sewage treatment and disposal plant to be
completed and constructed in accordance with plans and specifications heretofore approved
by the City Commission, out of funds heretofore provided for such purpose or provided by
the issuance of revenue bonds issued hereunder, and will not cause amy other or additional
indebtedness to be incurred on account of such disposal plant.
(b) It will operate the sewer system and sewage disposal plant as a public utility and
convenience of the City, and will not establish or authorize any other plant or plants I
for supplying sewage disposal service in competition therewith.
(c) It will not issue any revenue bonds, for any purpose or at any time, payable out
of the net revenues of the sewer system and which shall constitute a lien and charge
thereon, unless said bonds are expressly made subject to the lien and charge of all bonds
issued hereunder.
(d) It will keep and maintain proper books of account, separate from all other records
of the City, in which complete and correct entries will be made of all transactions relat-
ing to the sewage disposal plant and sewer system, which shall be subject to inspection
and copying at all reasonable times, and that it will furnish certified transcripts there.
from on payment of a reasonable fee. Upon demand of holders of lO~ or more in principal
amount of bonds issued hereunder, it will have said books audited by certified public
accountants and furnish copies thereof on demand, provided such audits shall not be
required more often than once in twelve months, nor as of any date other than the preced-
ing June 30th.
(e) It will maintain rates and charges for use of the sewer system in sufficient
amounts to provide money for the operation of said system and for payment of principal I
and interest of bonds issued hereunder, and will make all reasonable efforts to collect
such charges, and will apply the money so received as herein provided.
(f) It will cause to be transferred from the general and/or applicable funds of the
City to the special fund hereby created, an amount equal to the cost of furnishing to the
City or any of its departments, boards, or agencies, the services and facilities of said
undertaking.
(g) It will cause all persons handling funds of the sewage disposal plant to be bonded
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in reasonable amounts for the protection of the City and the holders of the bonds to be
issued hereunder, or will cause the same to be collected through a bank or banks whose
deposits are guaranteed under the Federal Deposit Insurance Law.
(h) It will keep the sewage disposal plant insured at all times against loss or
damage by fire, tornado, or other risks customarily insured against, in such amounts as
are customary for like plants, in order to protect the holders from time to time of the
bonds issued hereunder, as well as the City, and will use the proceeds t& restore the loss
and damage., and the cost of such insurance shall be paid as an expense of operation.
(i) The City and each and all of its officers will punctually perform all duties with
reference to the sewage disposal plant and sewer system as required by the laws of the
State of Montana, the regulations of the Board of Health of the State of Montana, and the
rules and regulations of the Public Service Commission of the State of Montana, and this
and other ordinances of the City.
Section 9. Holders of twenty per cent or more of principal amount of outstanding
bonds shall have the right and power, by action or proceeding or suit in law or equity, to
protect and enforce the rights of all holders of bonds outstanding hereunder, or enforce
or compel the performance of all covenants and duties herein specified, including the f1x~
ing and maintaining of sufficient rAtEUij charges, and rentals for the services afforded by
the system, the collection and proper segregation of the revenues, and the proper applicat-
ion thereof.
Section 10. The schedules and bases of rates, charges, and rental. imposed and to
be imposed for the services and facilities provided by said system shall be fixed and;
revised from time to time in accordance with authorizations therefor by the Public Service
Commission of the State of Montana, so that the revenues of said system will be at least
sufficient to produce gross revenues adequate to pay the expense of operation, repair,
and maintenance and the depreciation and replacement charges required by law, plus net
revenues sufficient so that payments thereof into the Revenue Bond Account will create
as soon as may be, and thereafter to maintain, in said aecount a sum equal to l20~ of the
principal and interest payments to fall due within each successive period of twelve months
on all bonds then outstanding hereunder. The cost of insurance and fidelity bond premiums
and of the bookkeeping and audits herein provided for and of the billing and collections
of sewage disposal rates, charges, and rentals shall all be payable from said Operation and
Maintenance Account.
Section 11. It is hereby found and declared that services and benefits from said
sewage disposal plant and system will commence to accrue not later than May 1, 1948, and
the rates, charges, and rentals for the services and benefits so furnished shall be imposed
and collected from and after that date. It is hereby found, determined, and declared that
the sewage treatment to be prOVided by said plant and system prevents pOllution of 'the
public water supply, and also that water consumption is a fair, reasonable, and appropriate
basis of measnring the use and benefits of said sewerage plant and system and for computing
the ra tes, charges, and rentals for such service and benefits. The term "user of the sewer~
age utility", as used herein, shall include each premise now or hereafter connected with
the City's water distribution system and billed as a unit for water supplied by the City,
provided such premises are connected with said sewerage system.
Section 12. Until otherwise prescribed, in accordance with the covenants and pro-
visions of this ordinance, and as the initial schedule of rates, charges, and rentals for
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the services and benefits provided by the City's sewerage system, there shall be and there
is hereby imposed a sewerage charge upon each user of the sewerage utility, which shall be
due and payable monthly, in advance, commencing May 1, 1948, to be as follows:
(a) The monthly rate for sewer" rental shall be eighty per cent (80Jb) of the average
monthly charge for water used during the months of November, December, January, and February
in the three years next preceding the current year. Said "monthly charge for wa ter used"
shall be determined from the City's records as to premises which were connected with the
City's water distribution system during, the aforesaid four months periods of such three
prededing years, and as to premises which were not so connected shall be fixed by the
City Manager upon the basis of what the monthly charge for water used would probably
have been if the premises, in their present condition, had been so connected and supplied
with water by the City, according to the best investigation thereof he is able to make.
(b) Charges for sewer rental under this schedule shall be made a part of the current
monthly bill for water used, to be shown by separate item or surcharge on suoh bill.
Acceptance will not be made of separate payment of either the charge for water or the
charge for sewer rental. Both charges must be paid at one and the same time.
(c) Charges for water used and for sewer rentals become due and payable on the 1st
day of each month. A discount of twenty-five cents (25t) will be allowed on each bill
for water used and sewer rental if paid prior to the 15th day of the month in which said
bills become due and payable. Bills become delinquent if not paid within thirty days after
they become due and payable. The City of Bozeman is authorized to discontinue water service
to any user whose bill for water and sewer rental becomes delinquent, and a charge of $1.00
will be made for reinstating a water service which has been discontinued for nonpayment
of water and sewer rental charges.
In cases where sewer rentals under this schedule are claimed to be unfair, unreason-
able, or not in proportion to charges made to other water and sewer users, the person or
persons against whom such charges are made may apply to the City Manager or the City Comm-
ission for an adjustment, stating the circumstances, and the City Commission may, subject
to the approval of the Public Service Commission of the State of Montana, make such adjust-
ment of such sewer rental rate as is deemed necessary, fair, and equitable.
In the event that it becomes necessary or desirable at any time to change the
schedule of sewer rates, charges, and rentals hereinbefore set forth, and such changes are
d~ly and regularly made by the City Commission of the City of Bozeman, and approved by the
Public Service Commission of the State of Montana, such changed rates, charges, and rentals
shall be and remain effective without repealing or amending this ordinance in whole or in
part, providing that certified copies of such changed rates, charges, and rentals, as ap-
proved by the public Service Commlssion of the State of Montana, shall be and remain on
file for publiC inspection at the office of the City Clerk of the City of Bozeman.
Section 13. The sewerage charges for each premise shall be personal or corporate
obligations of the same party or parties who are obligated for payment of city water bills
for such premise, according to the ordinances and regulations respecting the City water
utility. It is hereby made the duty of the Water Department of the City to prepare, issue,
and mail, as near as may be to the first day of each calendar month, a statement of the
sewerage charge for each user of the sewerage utility. In all cases the sewerage charge.
shall appear as a surcharge, separately stated, upon the water bill as rendered. Each
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such charge shall be due and payable at the same time and place as the water bill on which
it is shown, and no payment shall be accepted by the City, or any of its officers or employ-
ees, of a water bill without concurrent payment of the sewerage charge; and all of the
penalties, including the shutting off of the customer's water supply, shall be applied in
each case of nonpayment of the sewerage charge in like manner as for nonpayment of the water
charge. Each user of the sewerage utility shall be deemed to have contracted and agreed to
pay the sewerage charges hereby imposed, and such charges may be collected by actions at
law whenever the same are more than thirty (30) days overdue, and shall bear interest, at
the highest rate allowed by law for contract indebtedness, from and after the 15th day of
the month in which the charge becomes due and payable. To the full extent now or hereafter
permitted by law, overdue sewerage charges shall constitute a lien upon, and be enforce-
able against, the real estate constituting the premise which was the user of the sewerage
u,tility for which said charges were imposed. No subsequent owner or occupant of any premise
for which any sewerage charge is overdue shall be entitled to water or sewerage service
until the overdue cl'large"is:paid, notwithstanding that such subsequent owner or occupant
may not have been personally obligated therefor.
Section 14. It is hereby made the duty of the Clerk of the City Commission to
submit a copy of this ordinance, and any amendment thereof, to the Public Service Commission
of the State of Montana, and to obtain from said Commission authorization and approval of
the sewerage charge and provisions in respect thereto therein set forth, or, if such author-
ization and approval cannot be obtained, to call the facts in respect thereto to the
attention of the City Commission. If it shall be found that the foregoing schedule and
basis of 'sewerage charges are inadequate to comply with the City's covenants set forth in
said Revenue Bonds and in Section 10 of this ordinance, the City Commission shall hold a
publiC hearing, upon reasonable notice, and shall thereupon promptly amend and revise such
schedule andbbasls so that the sewerage charges imposed hereunder will comply with the
covenants of said bonds and of Section 10.
Section 15. Any provision of this ordinance which snaIl be held invalid because
of any illegality hereafter determined to exist in any provision hereof shall not be deemed
to be part of this ordinance and shall not affect the legality of any other provision
hereof.
Passed by the City Commission of Bozeman, Montana, and approved by the Mayor this 7th
day of April, 1948.
Attest: ",_
c~~'~n
Approved: (Y~ ~
.'1~yor
State of Montana )
) ss
County of Gallatin)
I, L. G. Shadoan, Clerk of the City Commission of the City of Bozeman, do hereby
certify tha t the foregoing Ordinance No. 746 was published by- -t'1.t;le -and number in the
Bozeman Dally Chronicle, a newspaper of general circulation p'I'1il-t:ea:'a~d published in
said City in the issue of April 8th, 1948, and that due proo'.t is on file-in my office.
IN WITNESS WHEREOF I hereunto set my hand and affix the seal of my office this
9th day of April, 1948.
.~~
~k ~ the Ci ty Commission