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5th Ave East - SID 341 (Not on Agenda)cll� �Oalg Incorporated 1892 Telephone (406) 758-7700 - Douglas Rauthe FAX (406) 758-7758 Mayor Post Office Box 1997 Zip 59903-1997 Bruce Williams City Manager TO: Bruce Williams, City Manager City Council Members: FROM: Robert H. Babb, City Engineer Gary W. Nystul ward I DATE: July 24, 1995 wa dCollins SUBJECT: 5th Avenue East S.I.D. - Sanitary Sewer Project Ward 11 Moses On Jul 21 1995 bids were opened for the above projects with three bids received. Y � P P J Dale Haarr ward 11 The following is the tabulation: Jim Atkinson Ward III LHC Inc. $107,317.00 Lauren Granmo Ward III Sandon Construction Co. Inc. 116,233.00 Pamela B. Kennedy Ward IV Pack & Company 137,834.50 M. Duane Larson Ward IV I recommend that the bid be awarded to LHC Inc. for $107,317.00 RESOLUTION NO. A RESOLUTION RELATING TO $100,000 SPECIAL IMPROVEMENT DISTRICT BOND NO. 341 BONDS; AUTHORIZING THE ISSUANCE .AND CALLING FOR THE PUBLIC SALE THEREOF. BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. (a) Special Improvement District No. 341 (the "District") has been duly and validly created by the City for the purpose of providing certain public improvements (the "Improvements") of special benefit to the properties within the District. (b) It is necessary that special improvement district bonds of the City be issued and sold in an aggregate principal amount of $100,000 (the "Bonds") to finance the costs of engineering, constructing and installing the Improvements, the administrative costs for the District, the cost of making a deposit to the Revolving Fund for the District and costs of issuance of the Bonds. (c) The City is authorized pursuant to Montana Code Annotated, Section 7-12-4204(1), to sell the Bonds at a price less than the principal amount thereof, but including interest thereon to the date of delivery, if this Council determines that such sale is in the best interests of the District and the City. Section 2. Determinations of Public Interest. Pursuant to the authority described in Section 1, this Council hereby determines to fix the minimum price for the Bonds at $97,000 plus interest accrued thereon to the date of delivery. Such minimum bid will enable bidders to bid more efficiently for the Bonds by permitting them to submit their bids based on actual market conditions without adjusting the interest rates thereon to provide compensation for their purchase of the Bonds. This procedure will facilitate the sale of the Bonds at the lowest interest rates, which is in the best interests of the District and the City. Section 3. Terms of the Bonds. This Council hereby authorizes the issuance and sale of the Bonds, to be denominated "Special Improvement District No. 341 Bonds", of the City for the purpose of financing the Improvements. The Bonds shall be dated, as originally issued, as of September 1, 1995, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing January 1, 1997, at a rate or rates designated by the successful bidder at public sale and accepted by this Council. The Bonds shall mature on July 1 in each of the following years and amounts: 1 Year Amount Year Amount 1997 5,000 2004 5,000 1998 5,000 2005 5,000 1999 5,000 2006 5,000 2000 5,000 2007 10,000 2001 5,000 2008 10,000 2002 5,000 2009 10,000 2003 5,000 2010 10,000 2011 10,000 The Bonds shall be issued as serial bonds in the denomination of $5,000 each or any integral multiple thereof of single maturities. Amortization bonds will not be issued. The Bonds shall be issuable only as fully registered bonds and shall be executed by the manual or facsimile signatures of the Mayor, City Manager and Finance Director. The Bonds shall be secured by the Special Improvement District Revolving Fund of the City. Section 4. Public Sale. The Bonds shall be sold at a public competitive sale which is hereby called and shall be held at a regular meeting of this Council on IA-1 , 1995, at 7:00 p.m. The City will receive sealed bids for the Bonds in accordance with the notice of sale hereinafter prescribed. The City Clerk of Council is authorized and directed to cause notice of the sale to be published, as required by Montana Code Annotated, Sections 7-12-4204, 7-7-4252 and 17-5-106, in the Daily Inter Lake, once each week for two successive weeks preceding the week which contains the date of sale. The notice of sale shall be published and mailed in substantially the form set forth as Exhibit A to this resolution and this Council hereby adopts the terms and conditions set forth in such notice of sale as the terms and conditions of the sale of the Bonds. Passed by the City Council of the City of Kalispell, Montana, this day of , 1995. Mayor Attest: City Clerk of Council EXHIBIT A NOTICE OF BOND SALE $100,000 Special Improvement District No. 341 Bonds CITY OF KALISPELL, MONTANA NOTICE IS HEREBY GIVEN that the City of Kalispell, Montana (the "City"), will sell to the highest and best bidder for cash, as evidenced by sealed bids, the above -described Bonds drawn against the funds of Special Improvement District No. 341. Sealed bids for the purchase of the Bonds will be received until 11:00 a.m., M.D.T., on Tuesday, the day of August, 1995, at the office of the Finance Director,, City Hall, 312 - lst Avenue East, Kalispell, Montana. At 11:30 a.m., M.D.T. on that day the bids will be opened and tabulated in the City Council Chambers, City Hall, 312 - lst Avenue East, Kalispell, Montana, and the City Council will consider the bids and award the sale of the Bonds at 7:00 p.m. on the same day. Purpose and Security The Bonds will be issued for the purpose of financing the cost of construction of certain local improvements (the "Improvements") within or for the benefit of Special Improvement District No. 341 (the "District"), in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (the "Act"). The Bonds will be special, limited obligations of the City and do not constitute general obligations of the City. The Bonds are payable primarily from the collection of a special tax or assessment which is a lien against the assessable real property within the District benefitted by the Improvements. The special assessments are payable in equal, semiannual installments of principal over a 15-year term, with unpaid installments of the special assessments bearing interest at a rate equal, in a fiscal year, to the average rate of interest borne by the then outstanding Bonds, plus one-half of one percent per annum. The Bonds are further secured by the Special Improvement District Revolving Fund of the City (the "Revolving Fund"). The City will agree to make a loan from the Revolving Fund to the District's fund to make good any deficiency then existing in the principal and interest accounts therein and to provide funds for the Revolving Fund by levying a tax or making a loan from the City's general fund to the extent authorized by the Act. Date and Type The Bonds will be dated, as originally issued, as of September 1, 1995, and will be issued as negotiable investment securities in registered form as to both principal and interest. Maturities and Redemption The Bonds shall mature, subject to redemption, on July 1 in the following years and amounts: Year Amount Year Amount 1997 $ 5,000 2004 $ 5,000 1998 5,000 2005 5,000 1999 5,000 2006 5,000 2000 5,000 2007 10,000 2001 5,000 2008 10,000 2002 5,000 2009 10,000 2003 5,000 2010 10,000 2011 10,000 The Bonds shall be issued as serial bonds in the denomination of $5,000 each or any integral multiple thereof of single maturities. Amortization bonds will not be issued. The Bonds are subject to mandatory redemption, in whole or in part, on any interest payment date, whenever, after payment of principal of or interest on the Bonds on such date, there are funds available for this purpose in the District fund from the prepayment of special assessments levied in the District or from unexpended proceeds of the Bonds following completion of the Improvements. The redemption price is equal to the amount of the principal installment or installments of the Bonds to be redeemed plus interest accrued thereon to the date of redemption. The Bonds are also redeemable at the option of the City on any interest payment date if there are funds to the credit of the District fund for the redemption thereon. The Bonds will be redeemed in the order of the principal installments they represent. The Bonds shall not be callable from the proceeds of an issue of refunding bonds before July 1, 2001. Interest Pavment Dates, Rates Interest will be payable each January 1 and July 1, commencing January 1, 1997, to the registered owners of the Bonds as such appear in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. All Bonds of the same stated maturity must bear interest from date of original issue until paid at a single, uniform rate not exceeding eight percent (8.00%) per annum, with the maximum difference between the highest and lowest rate of interest not exceeding three percent (3.00%) per annum expressed in an integral multiple of 1/8 or 5/100 of 1%. No "B" or supplemental interest shall be allowed. Bond Registrar, Transfer Agent and Paving Agent The Commission will appoint a registrar to act as bond registrar, transfer agent and paying agent (the "Registrar"). The bond register will be kept, transfers of ownership will be effected and principal of and interest on the Bonds will be paid by the Registrar. The City will pay the charges of the Registrar for such services. The City reserves the right to remove the Registrar and to appoint a suitable bank or trust company as successor. Delivery Within 30 days after the sale, the City will deliver to the Registrar the printed Bonds ready for completion and authentication. The original purchaser (the "Purchaser") of the Bonds must notify the Registrar, at least five business days before issuance 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 knowledge of officers of the City, threatened. Payment for the Bonds must be received by the City in immediately available funds at its designated depositary on the day of closing. As a condition of delivery, the Purchaser must certify to the City in writing the initial reoffering prices of the Bonds. Qualified Tax -Exempt Obligations The Bonds will be designated by the City as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), and financial institutions described in Section 265(b)(5) of the Code may treat the Bonds for purposes of Sections 265(b)(2) and 291(e)(1)(B) of the Code as if they were acquired on August 7, 1986. Legal Opinion An opinion as to the validity of the Bonds and the exclusion from gross income for federal income tax purposes and Montana individual income tax purposes of the interest thereon will be furnished by Dorsey & Whitney P.L.L.P., of Missoula, Montana, and Minneapolis, Minnesota, as Bond Counsel. The legal opinion will be printed on the Bonds. 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 thereof may be limited by the exercise of judicial discretion or by state or federal laws relating to bankruptcy, reorganization, moratorium or creditors' rights. Type of Bid and Award Submission of Bids. Sealed bids for not less than $97,000 and accrued interest on the principal sum of $100,000 must be mailed or delivered to the undersigned and must be received at the office of the Finance Director prior to the time stated above. Bidders must bid for all or none of the Bonds. Basis of Award. The bid authorizing the lowest net interest cost (total interest on all Bonds from 1, 1995 to their maturities, less any cash premium or plus any discount), will be deemed the most favorable. In the event that two or more bids state the lowest net interest cost, the sale of the Bonds will be awarded by lot. No oral bid will be considered. The City reserves the rights to reject any and all bids, to waive informalities in any bid and to adjourn the sale. Good Faith Deposit. A good faith deposit (the "Deposit") in the form of money, cashier's check, certified check, bank money order, or bank draft drawn and issued by a federally chartered or state chartered bank insured by the federal deposit insurance corporation or a financial surety bond in the sum of $2,000 payable to the order of the City of Kalispell is required for each bid to be considered. If money, cashier's check, certified check, bank money order, or bank draft is used, it must accompany each bid and be delivered to the Finance Director. If a financial surety bond is used, it must be from an insurance company licensed and qualified to issue such a bond in the State of Montana and such bond must be submitted to the City of Kalispell, to the Finance Director, or its financial advisor prior to the opening of the bids. The financial surety bond must identify each bidder whose Deposit is guaranteed by such financial surety bond. If the Bonds are awarded to a bidder utilizing a financial surety bond, then that Purchaser is required to submit its Deposit to the City in the form of a cashier's check (or wire transfer such amount as instructed by the City or its financial advisor) not later than 1:00 p.m., Mountain Daylight Time, on the next business day following the award. If such Deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the Deposit will be retained by the City. No interest will be allowed on the Deposit. The Deposit of the unsuccessful bidders will be returned immediately on award of the Bonds to the Purchaser or after rejection of all bids. Instructions for wiring Deposit may be obtained from the City Finance Director, City of Kalispell, P. O. Box 1997, Kalispell, Montana 59937, (406) 758-7755. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the Purchaser, if the Purchaser waives any delay in delivery occasioned thereby. Continuing Disclosure Participating underwriters need not comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, because the aggregate principal amount of the Bonds and any other bond issues of the City required to be integrated with the Bonds is less than $1,000,000. Consequently, the City will not enter into any undertaking to provide continuing disclosure of any kind with respect to the Bonds. Official Statement Within seven business days after the sale the City will furnish to the successful bidder without charge 100 copies of the final Official Statement relating to the Bonds. The successful bidder must notify the Finance Director in writing within seven business days after the award of sale of the Bonds if it requires additional copies of the Official Statement. The cost of additional copies shall be paid by the successful bidder. Additional information regarding the District and the Bonds may be obtained from City Finance Director, City of Kalispell, P. 0. Box 1997, Kalispell, MT 59903, (406) 758-7755. Dated: , 1995. BY ORDER OF THE CITY COUNCIL City Clerk of Council City of Kalispell, Montana Publish: