Resolution 3258 - Awards Sale of SID 328 BondsMe iii b e r Louis A. Ruiz introduced the
following resolution and moved its adoption:
RESOLUTION NO. 3258
RESOLUTION AWARDING SALE OF $300,000 SPECIAL
IMPROVEMENT DISTRICT MO. 328 BONDS, AND PRESCRIBING
THEIR FORM AND TERMS AMD COVENANTS OF THE CITY FOR
THE SECURITY OF THE HOLDERS THEREOF
BE IT RESOLVED by the City Council of the City of
Kalispell, Montana, as follows:
Section 1. Recitals. It is hereby found,
determined and declared as follows:
1.01. By Resolution No. 3226, adopted March 19, 1979,
this Council declared its intention to create Special
Improvement District No. 328 for the purpose of making
special improvements within and for the special benefit of
said district, which resolution designated the number of
the district, described the boundaries thereof, and stated
the general character of the improvements to be made
therein, in accordance with the provisions of Montana Code
Annotated, Title 7, Chapter 12, Parts 41 and 42. By said
resolution this Council also declared its intention to
cause the cost and expense of making such improvement to
be assessed against the properties included within the
boundaries of the district.
1.02. Notice of the passage of said resolution was
r. -��n by publication five times in the Daily Inter Lake, a
.."gal, daily newspaper published within the City and by
i,-.,ailing a copy of such notice to every person, firm or
corporation, or the agent of such person, firm or
corporation, having real property within the proposed
district listed in his name upon the last completed
assessment roll for state, county or school district
taxes, at his last known address. Said notice described
the general character of the improvements proposed to be
made, stated the estimated cost of the improvements,
designated the time when and the place where the Council
would hear and pass uPon all protests made against the
making of such improvements or the creation of such
district, and referred to the resolution of intention,
designated above, as being on file in the office of the
City Clerk for the description of the boundaries of said
district, all as provided in said resolution of intention.
1.03. At the time and place specified in the notices
hereinabove described, this Council met to hear, consider
and pass upon all protests maae against the making of such
improvements for the creation of such district, and after
00ngideraLlon thereof, it was determined and declare'd that
insufficient protests against the creation of the district
or the proposed work had been filed in the time and manner
provided by law by the owners of the property to be
assessed for said improvements, and the Council did
therefore by Resolution No. 3237, adopted may 7, 1979,
create Special Improvement District No. 328, and did order
the proposed improvements in accordance with the
resolution of intention designated in paragraph 1.01
hereof.
1.04- Plans, specifications, maps ' profiles and
surveys for construction of the improvements in Special
Improvement District No. 328 were prepared by the
engineers acting for the City, and were thereupon examined
and approved by this Council. An advertisement for bids
for construction of said improvements was published in the
official newspaper of the City on May 30 and June 6, 1979,
calling for bids to be received on June .1.8, 1979, on which
date the bids theretofore received were opened and
CxaMined, After referring the bids to the engineerS for
the City it was determined that the lowest regular
proposal for the furnishing of all work and materials
required for construction of said improvements in
accordance with approved plans and specificationss was the
proposal submitted by Pack and Company, in 1(alispell,
Montana, whose bid specified unit prices aggregating the
sum of $244,771.00, based upon quantities of work and
materials estimated in the plans and specifications. A
contract for construction of said improvements was
therefore awarded to said bidder, subject to the right of
owners of property liable to be assessed to elect to take
the work and enter into a written contract therefor in the
manner provided by Montana Code Annotated, Section
7-12-4147, which election the property owners failed to
make, whereupon the City and said bidder entered into a
written contract for construction of said improvements
upon the bidder having executed and filed a satisfactory
bond with respect thereto.
1.05. It is Presently estimated that the cost and
expense connected with and incidental to the formation of
said improvement district, including costs of preparation
of plans, specifications, maps, profiles, engine-�-,ring
�;uperintendence and inspection, preparation of assess.ment
rolls, expense,-, of niaking the assessments, the cost of
,viork and materials Linder the constructi - on contract, and
ill be $300,000, which
all other costs and expenses, wi
amount will be levied and assessed upon all property
within the improvement district on the basis described in
the resolution of intention. The Council has jurisdiction
and is required by law to levy and assess such balance, to
collect such special assessments and credit the same to
the special improvement district fund created for said
district, which fund is to be maintained on the official
books and records of the City separate from all other City
Funds, to be used solely for payment of interest when due
on the bonds herein authorized and for redemption of such
bonds in order of their registration whenever and as often
as the balance in said fund after payment of interest clue
is sufficient for the purpose.
1.06. For the purpose of paying the total cost and
expense of making the improvements, which is to be
assessed against the property within the district, this
Council called for the sale of bonds in the principal
amount of $300,000. After a public sale noticed and
conducted in accordance with applicable statutory
provisions, the bonds were sold to D-A. Davidson & Co., of
Great Falls, Montana.
1.07. All acts, conditions and things required by the
Constitution and laws of the State of Montana, including
Montana Code Annotated, Title 7, Chapter 12, Parts 41 and
42, in order to make the bonds herein authorized valid and
binding special obligations in accordance with their terms
and in accordance 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 so required.
in QsQQTQn-' "I " " t — "Inw, '"Mi UAPOHNUL,
incur Of tile improvements authorized to
he constructed ' in Special Impr,ovement District No. 328,
and in anticipation of 011ebtion of special assessments
to be levied therefor, and in accordance with the public
offering and contract of sale described in paragraph 1.06
hereof, the City Of XalisPl�*U shall forth-,,iith issue and
deliver to the purchaser its Special Improvement District
No. 328 Bonds in the total principal amomw of $300,000,
Payable solely from the Special Improvement District No.
328 Fund. The bonds shall be clated and i�qistered as aT
July 1, 1979 and shall he 300 in number and numbered
serially from I through 300, each in the denomination of
$1,000. The bonds shall mature an Janupry 1, 1999,
subject to redemption and prepayment prior thereto in
accordance with Section 3 hereof. The hands shall bc--
Payable to bearer, and shall bear interest from their date
of registration until called for redemption or paid in
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full at the rate of 8.70% per annum. Interest shall be
payable on the Ist day of January of each year, commencing
January 1, 1980, represented by coupons appurtenant to
each bond.
Section 3. �Rayme�t_of P,��inc�al and Interest.
The principal of and interest on the bonds shall be
payable at the office of the City Treasurer. The interest
shall be paid by the City Treasurer from the Special
Improvement District No. 328 Fund on presentation of the
coupons belonging thereto when due, and any balance
remaining in the fund shall be applied to the payment of
the principal and the redemption of the bonds in the order
of their registration as evidenced by their serial
numbers. Whenever there is any balance in the fund after
paying the interest due on all bonds drawn against it, the
City Treasurer 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 the fund
on that date- The date of redemption shall be fixed by
the City Treasurer, who shall give notice by publication
once in a newspaper published in the City and by written
notice to any 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.
Section 4. Form of Bond . The bonds and the
interest coupons appurtenant thereto shall be drawn in
substantially the form set forth in Montana Code
Annotated, Section 7-12-4202, as more fully set forth in
Exhibit A attached hereto and by this reference made a
part hereto.
Section 5. Execution, Reqistration and Delivery
of Bonds. The bonds shall be prepared under the direction
of the City Clerk and shall then be signed by the
facsimile signatures of the Mayor and Clerk, and the
interest coupons appurtenant thereto shall be executed and
authenticated by the printed, lithographed or engraved
facsimile signatures of the Mayor and Clerk. The bonds
and coupons of each issue shall then be img! stered in
order of their serial numbers by the City Treasurer, as of
July 1, 1979, and shall be delivered by the City Treasurer
to the purchaser upon payment of the par value thereof
plus a premium of $177.00 and 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 City Treasurer
forthwith to the Special Improvement District No. 328
Fund, and used solely for the payment of the cost and
ampongpg n000igarily incurrod in tho compinHan of �hp
improvements heretofore ordered, except that the accrued
interest received shall be applied in payment of interest
on the bonds when due.
Section 6. �jpe Im rovement District No. 328
S�ial Im
Fund.
6.01. There is hereby created and established a fund
designated as "Special Improvement District No, 323 Fund,"
which shall be maintained by the City Treasurer of the
City on the books and records of the City separate and
apart from all other funds of the City. Within said Fund
there shall be maintained separate accounts, designated as
the "Bond Account" and "Interest Account," respectively.
Upon the collection of the installment of principal and
interest due on November 30 of each year on the special
assessments to be levied with respect to the improvements
in said District, the City Treasurer shall credit to the
Interest Account in the District Fund so much of said
special assessments as is collected as interest payment.
Any installment of any special assessment paid prior to
its due date with interest accrued thereon to the. nearest
bond call date shall be credited with respect to principal
and interest payments the same as other assessments are
credited to the District Fund. All moneys in the Interest
Account and the Bond Account shall be used first to pay
interest due, and any remaining moneys shall be used to
i-,% iy bonds. Redemption of bonds therefrom shall be in
�-Ader of their registration numbers, and interest shall be
-Jd as accrued thereon to the date of redemption, in
L
�,,ccordance with the provisions of Montana Code AanoLated,
sections -1-12-4203 and 7-12-4206.
6.02. The Council ' shall annually or more often if
necessary issue an order authorizing a loan or advance
from the Special Improvement District Revolving Fund to
said District Fund in an account sufficient to make good
any deficiency then existing in the Interest Account in
said District Fund, and shall issue an order authorizing a
loan or advance from the Revolving Fund to the District
Fund in an amount sufficient to make good any deficiency
then existing in the Bond Account of said District Fund to
the extent that moneys are available in the Revolving
Fund. Pursuant to Ordinance No. 759, the City has
undertaken and agreed to prov-idt-? funds for the T�avoj.vinq
Fund by levying s�Ach tax or making such loan from the
Gcneral Fund as authorized by Montana Code Annotated,
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Section 7-12-4222. in the event that the balance on hand
in the Revolving Fund fifteen days prior to any date when
interest is due on special improvement district bonds of
the City is not sufficient to make good all deficiencies
then existing in the improvement district fund for which
the City has promised to make loans from the Revolving
Fund, the balance on hand in the Revolving Fund shall be
allocated to the funds of the improvement district in
which such deficiencies then exist in proportion to the
amounts of the deficiencies an the respective dates of
receipt of such money., until all interest accrued on such
special improvement district bonds of the City has been
paid. on any date when all accrued. interes . t - on I -- 1--z-
paid O'n 'an'y date when al I I accrued interest on
improvement district bonds of the City payable from funds
for which the City has promised to make loans from the
Ri2volving Fund has been paid, any balance remaining in the
Revolving Fund shall. be loaned or advanc?d to the
improvement district fund for payment and redemption of
bonds to the extent the improvement district fund is
deficl,�,n", for such purpos(--, in an amount proportionate to
the amount of such deficiency. A deficiency shall be
deemed to exist in the Bond Account of the Special
Improvement District No. 328 Fund on any date on which
interest is due on bonds payable therefro-m unless the City
has then or theretofore redeemed bonds in a principal -
amount eaual to the sum of all installments of special
assess-ments paid prior to their due dates plus a fraction
of tile remaining principal amount of the special
assessments originally levied and appropriated to said
Improvement District Fund equal to the number of
install=,c-iruss of such assessments then and theretofore- due
divided by the total number of installments in which such
special assessments are permitted to be paid.
Section 7. Covenants. The City of Kalispell
covenants and agrees 1.171el� E—h�-holder from time to time of
each of the bonds issued pursuant to this resolution that
until all- such bonds and interest thereon are fully paid:
7.01. The City will hold the Special Improvement
District No. 328 Fund and the Special Improvement District
Pevolving Fund described above 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. The provisions
hereinabove made with respect to the Improvement District
Fund and Revolving Fund are in accordance with the
undertaking and agreement of the City made in connection
with the public offering of the bonds herein authorized.
7.02. The City will do all acts and things necessary
Lo enforce the provisions of the construction contracts
and bonds referred to in paragraph 1.04 and to assure the
completion of the improvements in Special Improvement
District No- 328 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 Special Improvement District Fund and
within the amount of the bond proceeds appropriated
thereto.
7.03, 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 Special Improvement
Distric�-
, No- 328 in accordance with the Constitution and
laws of the State of Montana and the Constitution of the
United States, in an aggregate principal amount not less
than $300,000. Such special assessments shall be levied
in accordance with the basis therefol, prescribed in the
resolution of intention described above, payable in annual
installm.ents over a period of twenty years, each annual
installment being due in an amount equal to one -twentieth
of the principal amount of each assessment, with interest
on the whole amount remaining unpaid at the rate or rates
borne by '-the bonds, interest being payable with principal
install.-ments. The asSessments to be levitzri -ill ha
Thu Mrst partial payment of ea�ch shall include
interest on the entire assessment from the date of
regjstration of the hon4s herein zeChorized to January 1,
19 "ayme U
and eacli subsequent nt shall. Inci de
interest from one year on that payment and then remaining
balance of the special assessment. The assessments shall
constitute a lien upon and against the property against
which they are made and levied, which lien may only be
extinguished for payment of the assessment with all
penalties, cost and interest as provided in Montana Code
Annotated, Section 7-12-4191. No ta7� deed issued with
respect to any lot or parcel of land shall operate as
payment of any installment of ne wessmen; 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 Montana Code
Annotated, Section 15-18-309.
7.0-1. If at any time and for whatever reason any
special assessment or tax herein agreed to be levied is
held invalid, the City and this Council, its officers and
employees, will take all 5teps necessary to correct the
same and to re -assess and levy the same, incloding the
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ordering of work, with the same force and effect as if
made at the time provided by law, ordinance or resolution
relating thereto, and will re -assess and re -levy the same
with the same force and effect as an original levy
thereof, as authorizedlin Montana Code Annotated, Section
7-12-4186. Any special assessment, or re -assessment or
re -levy shall, so far as is practicable, be levied and
collected as it would have been if the first levy had been
enforced including the I levy and collection of any interest
accrued on the first levy.
7.05. There is now no litigation threatened or
pending questioning the validity or regularity of the
creation of Special Improvement District No. 328, the
contracts for construction of improvements therein or the
undertaking and agreement of the City to levy special
assessments therefor and to make good any deficiency in
the collection thereof through the levy of taxes for and
the making of advances from the Special Improvement
District Revolving Fund, or the right and power of the
City to issue the bond; herein authorized, or in any
manner questioning the existence of any condition
precedent to the exercise of the City's powers in these
matters. If any sach litigation should he initiated or
threatened, the City will forthwith notify in writing the
original purchasers of the bonds herein authorized and
will furnish the purchasers with a copy of all documents,
including pleadings, in connection with such litigation.
7.05. The City will make no use of the proceeds of
bonds issued hereunder whick if such uses had been
reasonably expected on the date of issue thereof, would
have caused them to be arbitrage bonds under the
provisions of Section 103(c) of the Internal Revenue Code
of 1954, as amended, and the regulations thereunder.
Section 8. Authentication of Transcri- The
City officers are hereby authorized and directed to
furnish to the purchaser of said bonds, and to the
attorneys approving legality thereof, certified copies of
all proceedings relating to the issuance of said bonds and
such other certificates and affidavits as way be required
to show the right, power and authority of the City to
issue said bonds, and all statements, contained in and
shown by such instruments, including any heretofore
furnished, shall constitute representations of the City as
to the truth of the statements purported to be shown
thereby.
Section 9. Effective Date. This resolution
shall, be in full forc�a7nd effect from and after its
passage -
Passed and adopted b
lothy the City Council of
Kalispell, Montana, this day of September , 1979.
Approved:_ 1;-11111,141,11�41
Mayor
Attest:
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The motion for the adoption of the foregoing
resolution was duly seconded by Member Francis T. OwBoyle
, and upon vote being taken thereon, the following voted
in favor thereof: Councilmen Ruiz, Smith, Zauner, O'Boyle, Saverud,
Gramo and Grainger
and the following voted against the same: none
whereupon said resolution was declared duly passed and
adopted.
11 the underuiped, City Clerk of the City of Kalispell certify that the foregoing io a true
copy of the Resuution duly seed by the City Council of the City of Kalispell, Montana at
a regular meeting held��� 7
79Li
City If exk of the City of Kalispell
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EXHIBIT -A
UNITED STATES OF AMERICA
STATE OF MONTANA
SPECIAL IMPROVEMENT DISTRICT NO. 328
Interest at the rate of 8.70% per annum-
Payable on January 1, 1980, and annually thereafter
on the Ist day of January in each year.
SPECIAL IMPROVEMENT DISTRICT NO. 328 BOND
Issued by the City of Kalispell
Flathead County, Montana
1153A
$1,000
The Treasurer of the City of Kalispell, Montana,
will pay to bearer on or before January 1, 1999 the surn of
ONE THOUSAND DOLLARS
as authorized by Resolution No. 3237 as passed on the 7th
day of May, 1979, creating Special Improvement District
No. 328 for the construction of the improvements and the
performance of work as authorized by said resolution to be
done in said District, and all laws, resolutions, and
ordinances relating thereto, in payment of the contract in
accordance therewith. The principal of and interest on this
bond are payable at the office of the City Treasurer of
Kalispell, Montana,
This bond bears interest at -the rate of eight
and seventv hundredths percent (8.70%) per annum from the
day of registration of this bond, as expressed herein, until
the date called for redemption by the City Treasurer. The
interest on this bond is payable annually on the first day
of January in each year, unless paid previous thereto, and
as expressed by the interest coupons hereto attached, which
bear the engraved facsimile signatures of the Mayor and
City Clerk,
This bond is payable from the collection of a
special tax or assessment which is a lien against the real
estate within said Improvement District, as described in
said resolution hereinbefore referred to.
This bond is redeemable at the option of the City
at any time there are funds to the credit of said special
improvement district fund for the redemption thereof, and in
the manner provided for the redemption of the same. The
date of redemption shall be fixed by the City Treasurer, who
shall give notice by publication once in a newspaper in
Kalispell, or at the option of the City Treasurer, by
written notice to the holders of such bonds if their
addresses be known, of the numbers 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 per-
formed, in the manner prescribed by the laws of the State of
Montana and the resolutions and ordinances of the City of
Kalispell, Montana, relating to the issuance thereof.
Dated at Kalispell, Montana, this Ist day of July, 1979.
CITY OF KALISPELL
(Facsimile Signature)'
MAYOR
/r)L
(FEcsin �i
Registered at the office of the City
Treasurer of Kalispell, Montana, as
of this Ist day Of JUIYr 1979.
City Treasurer
No.
(FORM OF COUPON)
Unless the bond described below is called for
earlier redemption, on the first day of January, 19 the
City of Kalispell, Montana, will pay to bearer at trij
office of the City Treasurer of Kalispell, Montana, the
amount shown hereon in lawful money of the United States of
America, from the special tax or assessment referred to in
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the bond to which this coupon appertains, for interest then
due on its Special Improvement District No. 328 Bond, dated
July 1, 1979 No
"(F c5i'mi (Facsimile Signature)
F-CJII(TY CLERK MAYOR
e i na u e