Resolution 3637 - $1,300,000 Sewerage System Revenue Bonds SaleRESOLUTION NO. 3637
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RESOLUTION RELATING TO $1,300,000 SEWERAGE SYSTEM
REVENUE BONDS, SERIES 1986; CALLING FOR THE PUBLIC
SALE THEREOF
BE IT RESOLVED by the City Council of the City of
Kalispell, Montana, as follows:
1. This Council has investigated the facts necessary
and hereby finds, determines and declares it to be necessary
and desirable for the City to offer for sale $1,300,000 Sewerage
System Revenue Bonds, Series 1986 (the Bonds), for the purpose
of financing improvements to the municipal sewerage system,,
including sanitary sewer and storm sewer improvements.
2. This Council shall meet at the time and place
specified in the Terms and Conditions of Sale hereinafter
contained for the purpose of receiving and considering sealed
bids submitted for the purchase of the Bonds, and awarding the
sale thereof. The City Clerk is hereby authorized and directed
forthwith to cause notice of the time, place and purpose of
said meeting to be published once, at least five days prior.
to the sale, in The Daily Inter Lake at Kalispell, Montana,
and in The Bond Buyer, a financial newspaper published in New
York, New York.
3. The following shall constitute the Terms and
Conditions of Sale for the Bonds:
4. Any other actions taken, resolutions passed or
forms of notices of sale -heretofore or herewith approved with
respect to the Bonds are hereby confirmed and ratified.
PASSED by the City Council of the City of Kalispell,
Montana, and approved by the Mayor of said City on this 17th
day of March, 1986.
ATTEST: Mayor
I, .the undersigned, City Clerk of the City of
Kalispell, certify that the foregoing is a true
L copy of the Resolution passed by the City Council
City Clerk of the City of Kalispell, Montana, at a regular
meeting held March 17, 1986. '
TERMS AND CONDITIONS OF SALE City Clerk of the City of
$1,300,000 SEWERAGE SYSTEM REVENUE BONDS, SERIES 1986 Kalispell,
CITY OF KALISPELL, MONTANA Montana
NOTICE
NOTICE IS HEREBY GIVEN that the City of Kalispell,
Montana, will receive and consider sealed bids for the purchase
of its $1,300,000 Sewerage System Revenue Bonds, Series 1986
(the Bonds), in the Council Chambers in the City Hall in said
City on April 7, 1986, -at 7:30 o'clock P.M., M.T.
THE BONDS
General Terms. The Bonds will be dated, as originally
issued, as of June 1, 1986, will be in the denominations of
$5,000 or any integral multiple thereof of single maturities,
will bear interest at a rate or rates designated by the success-
ful bidder, subject to the limitations stated below, and will
mature on June 15 in the following respective years and amounts:
Year
Amount
Year
1987
$20,000
1997
1988
20,000
1998
1989
30,000
1999
1990
30,000
2000
1991
30,000
2001
1992
35,000
2002
1993
45,000
2003
1994
45,000
2004
1995
45,000
2005
1996
45,000
2006
Amount
$ 55,000
75,000
85,000
90,000
105,000
75,000
85,000
95,000
.. 135,000
155,000
Interest will be payable each June 15 and December 15, commencing
December 15, 1986, to the registered owners of the Bonds
appearing of record in the Bond Register as of the close of
business on the last day (whether or not a business day) of
the immediately preceding month.
Redemption. Bonds having stated maturity dates in
1997 and later years are subject to redemption at the option
of the 'City, in inverse order of maturities and in $5,000
principal amounts selected by lot within a maturity, on June 15,
1996, or any interest payment thereafter, at the principal amount
thereof to be redeemed plus interest accrued to the date of
redemption.
Purpose and Security. The Bonds will be issued in
accordance with the provisions of Montana Code Annotated,
Title 7, Chapter 7, Part 44, for the purpose of financing the
costs of sanitary sewer and storm sewer improvements to the
City's municipal sewerage system (the System). The Bonds will
be payable solely from and will constitute a first lien upon
the net revenues from time to time derived from charges imposed
and collected for the services and facilities of the System,
in excess of the current, reasonable and necessary expenses
of operation, maintenance and repair thereof and on a parity
with the outstanding sewerage system revenue bonds of the City,
Series 1972, Series 1976 and Series 1983 (the Outstanding Bonds).
BIDS AND AWARD OF SALE
All Bonds having the same stated maturity date must
bear interest from date of original issue until paid at a single,
uniform rate, expressed in integral multiples of 1/8 or 1/20
of 1% per annum. No interest rate may exceed 13`s per annum.
The highest specified interest rate may not exceed the lowest
specified interest rate by more than two percent (2.00%)...,...
Supplemental interest is permitted for the period from
December 15, 1986 to December 15, 1987, but may not exceed,
$16,250 in the aggregate, or $8,125 for any six-month period.
No bid for less than par plus accrued interest (based on a 360---
day year) from June 1, 1986, until the date of delivery of the
Bonds will be considered.
Bond Registrar, Transfer Agent and Paying Agent.
The City will contract with a bank, financial institution or
trust company to act as Bond Registrar, Transfer Agent and Paying
Agent (the Registrar).. The Bond Register will be kept, principal
and interest will be paid to the registered owner of each Bond
and transfers of ownership will be effected by the Registrar.
The City will pay the reasonable and customary charges of the
Registrar for such services. The City reserves the right to
remove the Registrar and appoint a successor.
Receipt of Bids. Sealed bids for the Bonds will be
received by the City at the office of the Finance Director in
the City Hall, Kalispell, Montana, until o'clock P.M.,
M.T., on April 7, 1986. The bids will thereupon be opened and
tabulated.
Time and Place of Award. A
will be presented to the City Council
M.T., on April 7, 1986 at its regular
the Council Chambers in the City Hall,
which time and place the City Council
sale, if any.
tabulation of bids received
at S:Oo o'clock P.M.,
meeting to be held at 7.30
Kalispell, Montana, at
will make the award of
Submission of Bids. Bids must be on the Official
Bid form and enclosed in a sealed envelope marked as follows:
"Bid for $1,300,000 Sewerage System Revenue Bonds, Series 1986."
Each envelope when delivered must indicate the name and address
of the bidder, or, in the case of a group of bidders, of the
representative. No alteration or amendments of the official
Bid form are permitted, except for those additions specifically
provided for.
Basis of Award. The award_, if any, will be made -to
the bidder whose bid results in the lowest net interest cost
(total interest from date of original issue of the Bonds to
their stated maturities, less any cash premium). The City
reserves the right to reject any and'all bids and to waive any
informality or irregularity in any and all bids.
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Good Faith Check. Each bid must be accompanied by
lawful money of the United States or a cashier's check, certified
check, bank money order or bank draft drawn and issued by a
national banking association located in Montana or by any banking
association incorporated under the laws of ,the State of Montana,
payable to the Finance Director, in the amount of $26,000.
No interest will be allowed on the bid security. The bid
security of the unsuccessful bidders will be returned immediately
on award of sale of the Bonds or after the rejection of all
bids. The bid security of the successful bidder will be
deposited and retained by the City until the delivery of the
Bonds, at which time such security will be applied against the
purchase price for the Bonds or the proceeds thereof will be
retained as liquidated damages upon the failure of the successful
bidder to take and pay for the Bonds in accordance with the
terms of its bid.
Information. Additional copies, in reasonable
quantities, of the Terms and Conditions of Sale, the Official
Bid Form, and the Official Statement, so long as available,
and information regarding the Bonds and sale may be obtained
from the City's financial consultant, Dain Bosworth Incorporated,
Attn: .Robert Ehlers, Jr. (303) 294-7200 or Donald Halver, City
Clerk (406) 755--5457.
DELIVERY
Within 60 days after the sale, the City will deliver
to the Registrar the printed Bonds ready for completion and
authentication. The purchaser of the Bonds must notify the
Registrar, at least five business days before delivery of the
Bonds, of the persons in whose names the Bonds will be initially
registered and the authorized denominations of the Bonds to
be originally issued. If notification is not received by that
date, the Bonds will be registered in the name of the purchaser
and will be issued in denominations corresponding to the
principal maturities of the Bonds. On the day of closing, the
City will furnish to the purchaser the opinion of bond counsel
hereinafter described, an arbitrage certification and a
certificate verifying that no litigation in any manner
questioning the validity of the Bonds is then pending or, to
the best knowledge of officers of the City, threatened. Payment
for the Bonds must be received by the City at its designated
depositary on the date of closing in immediately available
funds. The City will provide for the assignment and printing
of CUSIP numbers on the Bonds, but will assume no responsibility
for the correctness of the CUSIP numbers printed thereon or
any delay in delivery occasioned thereby.
LEGAL OPINION
An opinion as to the validity pf the Bonds and -the
exemption from taxation of the interest thereon will be furnished
by Dorsey & Whitney, of Minneapolis, Minnesota. The legal
opinion will be printed on the Bonds at the request of the
purchaser. The legal opinion will state that the Bonds are
valid and binding special obligations of the City enforceable
in accordance with their terms, except to the extent to which
enforceability may be limited by state or federal laws relating
to bankruptcy, reorganization, moratorium or creditors' rights.
The legal opinion will also state that under existing laws,
regulations, rulings and decisions, basic interest on the Bonds
is not includible in gross income of the recipient for federal
or State of Montana individual income tax purposes, except State
of Minnesota excise taxes imposed on banks and corporations
and measured by income. The opinion will further state that,
assuming compliance by the City with its .covenants in the
resolution authorizing issuance of the Bonds, basic interest
on the Bonds will continue to be exempt from federal income
taxation if H.R. 3838 is enacted by Congress in the form in
which it was passed by the House of Representatives on
December 17, 1985. Dorsey & Whitney has not been retained to
prepare or review and has not prepared or reviewed the Official
Statement and assumes no responsibility for and will express
no opinion with respect to the accuracy, completeness or
sufficiency thereof.
Dated: March 17, 1986.
`- - -- -- ---__-_-. BY ORDER OF THE CITY COUNCIL
Donald Halver
City Clerk
Kalispell, Montana