10. Resolution 4455 - Authorizing Participation in Board of Investment LoanRESOLUTION N0.4 4 S S
RESOLUTION AUTHORIZING PARTICIPATION IN THE BOARD OF INVESTMENTS
OF THE STATE OF MONTANA ANNUAL ADJUSTABLE RATE TENDER OPTION
MUNICIPAL FINANCE CONSOLIDATION ACT BONDS (INTERCAP REVOLVING
PROGRAM), APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT
AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS
RELATED THERETO
BE IT RESOLVED BY THE COUNCIL (the Governing Body) OF CITY OF
KALISPELL (the Borrower) AS FOLLOWS:
ARTICLE I
DETERMINATIONS AND DEFINITIONS
Section 1.01. Definitions. The following terms will have the meanings indicated below
for all purposes of this Resolution unless the context clearly requires otherwise. Capitalized terms used
in this Resolution and not defined herein shall have the meanings set forth in the Loan Agreement.
Adjusted Interest Rate means the rate of interest on the Bonds determined in accordance
with the provisions of Section 3.03 of the Indenture.
Authorized Representative shall mean the officers of the Borrower designated and duly
empowered by the Governing Body and set forth in the application.
Board shall mean the Board of Investments of the State of Montana, a public body
corporate organized and existing under the laws of the State and its successors and assigns. --
Program.
board Act shall mean Section 2-15-1808, Title 17, Chapter 5, Part 16, MCA, as amended.
)fonds shall mean the Bonds issued by the Board pursuant to the Indenture to finance the
Borrower shall mean the Borrower above named. -
Indenture shall mean that certain Indenture of Trust dated March 1, 1991 by and between
the Board and the Trustee pursuant to which the Bonds are to be issued and all supplemental indentures
thereto.
Lea means the loan of money by the Board to the Borrower under the terms of the Loan
Agreement pursuant to the Act and the Borrower Act and evidenced by the Note.
Loan Agreement means the Loan Agreement between the Borrower and the Board,
including any amendment thereof or supplement thereto entered into in accordance with the provisions
thereof and hereof.
Loan AZE==t Resolution means this Resolution or such other form of resolution that
the Board may approve and all amendments and supplements thereto.
L oan Date means the date of closing a Loan.
Loan Rate means the rate of interest on the Loan which is initially 4.30% per annum
through February 15, 2000 and thereafter a rate equal to the Adjusted Interest Rate on the Bonds and
up 1.5% per annum as necessary to pay Program Expenses.
RESOLUTION-2
,IH= means the promissory note to be executed by the Borrower pursuant to the Loan
Agreement, in accordance with the provisions hereof and thereof, in substantially the form set forth in
the Promissory Note, or in such form that may be approved by the Board.
psgg= shall mean the INTERCAP Program of the Board pursuant to which the Board
will issue and sell Bonds and use the proceeds to make loans to participating Eligible Government Units.
ErDjW shall mean those items of equipment, personal or real property improvements to
be acquired, installed, financed or refinanced under the Program as set forth in the Description of the
Project/Summary of Draws.
Security Instrument means a security agreement in substantially the form set forth, and,
a Uniform Commercial Code financing statement, in a form acceptable to the Board and the Trustee
granting a security interest in, or a lien on, the property constituting the Project or other real or personal
properties added to or substituted therefor.
Trustee shall mean U.S. Bank Trust National Association MT (formerly known as First
Trust Company of Montana National Association) and its successors.
Section 1.02. Authority. The Borrower is authorized to undertake the Project and is
further authorized by the Borrower Act to enter into the Loan Agreement for the purpose of obtaining
a loan to finance or refinance the acquisition and installation costs of the Project.
Section 1.03. Execution of Agreement and Delivery of Note. Pursuant to the Indenture
and the Board Act, the Board has issued and sold the Bonds and deposited a part of proceeds thereof
in the Loan Fund held by the Trustee. The Board has, pursuant to the Term Sheet, agreed to make a
Loan to the Borrower in the principal amount of $37,000.00 and upon the further terms and conditions
set forth herein, and as set forth in the Term Sheet and the Loan Agreement.
ARTICLE II
THE LOAN AGREEMENT
Section 2.01. Terms. (a) The Loan Agreement shall be dated as of the Loan Date, in
the principal amount of $37,000.00 and shall constitute a valid and legally binding obligation of the
Borrower. The obligation to repay the Loan shall be evidenced by a Promissory Note. The Loan shall
bear interest at the initial rate of 4.30% per annum through February 15, 2000 and thereafter at the
Adjusted Interest Rate, plus up to 1.5% per annum as necessary to pay the cost of administering the
Program (the Program Expenses). All payments may be made by check or wire transfer to the Trustee
at its principal corporate trust office.
(b) The Loan Repayment Dates shall be February 15 and August 15 of each year.
(c) The principal amount of the Loan may be prepaid in whole or in part provided that
the Borrower has given written notice of its intention to prepay the Loan in whole or in part to the
Board no later than 30 days prior -to the designated prepayment date.
(d) The Prepayment Amount shall be equal to the principal amount of the Loan
outstanding, plus accrued interest thereon to the date of prepayment.
(e) Within fifteen days following an Adjustment Date, the Trustee shall calculate the
respective amounts of principal and interest payable by each Borrower on and with respect to its Loan
Agreement and Note for the subsequent August 15 and February 15 payments, and prepare and mail by
first class mail a statement therefor to the Borrower.
RESOUMON-3
Section 2.02. Use and Disbursement of the Proceeds. The proceeds of the Loan will be
expended solely for the purposes set forth in the Description of the Project/Summary of Draws. The
proceeds from the sale of the Note to the Board shall remain in the Borrower's Account pending
disbursement at the request of the Borrower to pay the budgeted expenditures in anticipation of which
the Note was issued. Requests for disbursement of the Loan shall be made to the Board. Prior to the
closing of the Loan and the first disbursement, the Borrower shall have delivered to the Trustee a
certified copy of this Resolution, the executed Loan Agreement and Note in a form satisfactory to the
Borrower's Counsel and the Board's Bond Counsel and such other certificates, documents and opinions
as set forth in the Loan Agreement or as the Board or Trustee may require.
Section 2.03. Payment and Security for 1he Note. In consideration of the making of the
Loan to the Borrower by the Board, the provisions of this Resolution shall be a part of the Agreement
of the Borrower with the Board. The provisions, covenants and Agreements herein set forth to be
performed by or on behalf of the Borrower shall be for the benefit of the Board. The Loan Agreement
and Note shall constitute a valid and legally binding obligation of the Borrower and the principal of and
interest on the Loan shall be payable from the general fund of the Borrower, and any other money and
funds of the Borrower otherwise legally available therefor. The repayment of the Loan shall be secured
by a security interest in the Project being financed. The Borrower shall enforce its rights to receive and
collect all such taxes and revenues to insure the prompt payment of the Borrower obligations hereunder.
Section 2.04. Representations as to Impact of I-105 as Amended by SubseQuent
Legislative Acts. The Borrower recognizes and acknowledges that the amount of taxes it may levy on
certain classes of property may not exceed the amount of taxes levied for taxable year 1986, subject to
certain limitations set forth in I-105, as amended by subsequent legislative acts (the Property Tax
Limitation Act). The Borrower is familiar with the Property Tax Limitation Act and acknowledges that
the obligation to repay the Loan under the Agreement and Note are not exceptions to the provisions of
the Property Tax Limitation Act. The Borrower represents and covenants that the payment of principal
of and interest on the Loan can and will be made from revenues available to the Borrower in the years
as they become due, notwithstanding the provisions of the Property Tax Limitation Act.
Section 2.05. Levy and Appropriate Funds to Repay Loan. The Borrower agrees that in
order to meet its obligation to repay the Loan and all other payments hereunder that it will budget, levy
taxes for and appropriate in each fiscal year during the term of the Loan an amount sufficient to pay
the principal of and interest hereon subject to the limitations of the Property Tax Limitation Act.
ARTICLE III
CERTIFICATIONS, EXECUTION AND DELIVERY
Section 3.01. ,(authentication of Transcript. The Authorized Representatives are
authorized and directed to prepare and furnish to the Board and to attorneys approving the validity of
the Bonds, certified copies of this Resolution and all other resolutions and actions of the Borrower and
of said officers relating to the Loan Agreement, the Note, the Security Agreement and certificates as to
all other proceedings and records of the Borrower which are reasonably required to evidence the validity
and marketability of the Note. All such certified copies and certificates shall be deemed the
representations and recitals of the Borrower as to the correctness of the statements contained therein.
Section 3.02. Le aQ l Opinion. The attorney to the Borrower is hereby authorized and
directed to deliver to the Board at the time of Closing of the Loan his or her opinion regarding the
Loan, the Loan Agreement, the Note and this Resolution in substantially the form of the opinion set
forth in the Attorney's Opinion.
Section 3.03. Execution. The Loan Agreement, Note, Security Agreement and any other
document required to close the Loan shall be executed in the name of the Borrower and shall be
executed on behalf of the Borrower by the signatures of the Authorized Representatives of the Borrower.
RESOt.UMN-4
PASSED AND APPROVED by the
It 19
Attest:
By
Its
By -
Its
this day of
RESOLUTION-5
DESCRIPTION OF THE PROJECT/SUMMARY OF DISBURSEMENTS
FOR
CITY OF KALISPELL
1. - Purchase a Mower/Snowblower
2. Purchase a Thermoplastic Applicator
Total
Allocated
Amount
of Loan
I � oil
111 10
$37,000.00
Draw
Description
Amount
Date of
Amount
Amount
Remaining
#
of Item
Allocated
Draw
of
Remaining
Reserved
for Item
Draw
for Item
Amount
Reserved Amount
$_ 37,000.00
16,968.00
0571-01
#1 above
$22,000.00
03/19/99
$20,032.00
1,968.00
Cl11 �l1Jl�J
TO: Glen Neier, Interim City
FROM: Michael Baker, Di
Parks & Recreatic
DATE: October T 1
RE: Bid for Parks Mlower
Last month the City Council authorized the Parks Department to let bids on an
outfront rotary mower. Three responsive bids were received on October 6. 1 am listing
the bid information below.
CS •
i / '��
• N
UNIT
s' •!
Parson Tractor
(Kubota)
$20,032.00
•(John
Deere)
i!
;.
Midland Implement
(Toro)
I have disqualified the Midland Implement bid because a pickup attachment was
not available. Based on the remaining two bids the Kubota supplied by Parsons
Tractor is recommended for purchase at $20,032.00. 1 have called for references of
the Kubota Unit and have received very favorable responses. City Council gave
budget approval of $22,000.00 for purchase of an outfront rotary mower.
This unit is a replacement of our 1984 Toro (the first outfront mower purchased
by the Parks Department). I would anticipate a life expectancy of 10 to 15 years for the
new piece of equipment.
Please place this item on the Council agenda for October 19, to consider
authorization for purchase.
Thank you for your consideration on this matter.
MB/dlw
Parks Director Mike Baker is recommending the Council award Parsons
Tractor a contract to supply a commercial grade outfront mower at
a cost of $20,032.00.
Larson moved the Parks Department enter into a contract with Parsons
Tractor & Implement to supply the mower. The motion was seconded
by Graves.
There was discussion.
Scarff asked Baker whether the old mower will be retired or kept in
reserve.
Baker stated the mower is almost fifteen years old and will probably
go to auction this Spring.
Donahue asked if the new mower can be converted to a snow plow in
the Winter.
Baker said a broom or blade can be added at minimal cost.
The motion carried unanimously upon vote.
Neier explained that in 1981, one of the City's first Urban Renewal
Programs involved the CDBG funding of housing for developmentally
disabled clients of Flathead Industries. He said three houses were
acquired and turned into nine apartments with two conditions: the
property had to be used for handicapped individuals; and the City
has to approve any sale of the property. Neier stated Flathead
Industries has recently purchased three dilapidated buildings on 5"
Avenue west and intend to construct a one story apartment building
on the property. He said Flathead Industries needs to sell the
original CDBG property to finance the apartment complex and a motion
by the Council authorizing a deed removing the conditions imposed
on the CDBG property will enable the project to proceed.
Donahue moved the impediment be removed from the deed and
transferred with the condition that the restriction on the original
CDBG property be placed on the new property. The motion was seconded
by Baarr.
There was discussion.
Susan Moyer, PECDD, stated this is a win -win situation because the
property Flathead Industries has purchased is 'horribly
substandard.' She said not only will the City be getting rid of
three highly blighted parcels, but it will also be perpetuating
housing for the developmentally disabled.
The motion carried unanimously upon vote.
AUTHORIZATION TO SIGN COMMERCIAL AGRR
Neier stated over the past two years, the City has given all core
area banks the opportunity to participate in the City's three
percent loan program. He said the contracts previously executed are
about ready to expire and new agreements need to be executed. Neier
explained the City writes the interest down tn tr,,-on