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HomeMy WebLinkAbout15 of 1977 - A resolution authorizing the issuance and providing for the sale of $1,630,000 Special Improvement B P x 15 Resolution No. By -..jeateing-._.P�ips, ------ r' COMMI..IANa. Authorizing the issuance and providing for the sale of$1,630,000 Special Improvement Bonds b£ Special Improvement District No. 480. Presented to the ioerd of Commissioner* AND PASSED FEB 9 1977 Nate.eyrAy&-c--* • art RECORD" � 1 • • A regular meeting of the Board of Commissioners of Salt Lake City, Utah, was he_c on Wednesday, the 9th day of February, 1977, at the hour of 10:00 o'clock A.M. at Room 301, City and County Building, Salt Lake City, Utah, being the regular meeting place of said Commission, at which meeting there were present and answering roll call the following members wh-D constituted a quorum: ROLL CALL Ted L. Wilson Commissioner- Mayor VOTING Aye Nay — Jess A. Agraz Commissioner Mr.Chairman - Agraz Glen N. Greener Commissioner Greener Hogensen Herman J. Hogensen Commissioner Phillips Jennings Phillips, Jr. Commissioner Result Also present: Lawrence A. Jones City Auditor Mildred V. Higham City Recorder Walter R. Miller Assistant City Attorney Absent: None Thereupon, the following proceedings, among others, were duly had and taken. Walter R. Miller , of the City Attorney's Office reported to the Commission on the bids which had been received by the City on February 9, 1977, for the purchase of Special Improvement District No. 480 bonds. He reported that the bids were as follows: j -2- Names of Bidders Maturities Interest Rates Premium United California Bank 1973-79 4.50% none Continental Bank & Trust 1980 4.25 and associates 1931-83 4.00 1984-85 4.25 1936-87 4.50 E. F. Hutton & Co. 1978-85 4.50% none Hanifen, Imhoff & Samford 1986 4.60 and associates 1987 4.70 Zions 1st National Bank 1978-1980 5.50% $100.00 and associates 1981-83 4.20 1984-85 4.50 1986-87 4.70 Foster & Marshall 1978-30 5.10 $162.60 Merrill, Lynch, Pierce 1981-84 4.50 Fenner & Smith 1935 4.60 Dean Witter & Co. 1986-87 4.75 First Security Bank of Utah and associates Kirchner, Moore & Co. 1973-32 5.20 none Burrows, Smith and Co. 1983-84 4.60 and associates 1985 4.70 1986-87 4.80 He further reported that the bid of United C:�lif,rrix Rank and Continental Bank and Trust was the best responsible bid received therefor, and bears interest at the lowest rate as required by law. The bid of United California Bank is in full, as follows: -3- Thereupon, Commissioner Jennings Phillips, Jr. introduced and moved the adoption of the following resolution: RESOLUTION NO. 15 A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $1,630,000 SPECIAL IMPROVEMENT BONDS OF SPECIAL IMPROVEMENT DISTIRCT NO. 480 FOR SALT LAKE CITY, UTAH, PRESCRIBING THE FORM OF BOND AND INTEREST COUPONS, MATUR- ITY AND DENOMINATION OF SAID BONDS, PRO- VIDING FOR THE CONTINUANCE OF A GUARANTY FUND LEVY AS PROVIDED BY STATUTE AND PRO- VIDING WHEN THIS RESOLUTION SHALL BE IN EFFECT. WHEREAS, the City Commission of Salt Lake City, Utah, has heretofore adopted proceedings for the construction of improvements in Special Improvement District No. 480 and the Ordinance of said City confirming the assessment roll for such improvements having been duly adopted and approved on the 12th day of October, 1976, and an Amending Ordinance hav- ing been duly adopted and approved on October 27, 1976; and WHEREAS, notice of assessments to property owners in said District has been published and notice of assessment has been mailed by the City Treasurer to all the owners of property assessed in said District; and WHEREAS, the total cost of the project was $3,504,664.85 the City's portion was $1,501,880.30, and the owners of private property in said district have paid $372,784.55 on the principal of their assessments, leaving an amount to be paid through the issuance of bonds or from funds provided by the City of $1,630,000. NOW, THEREOFRE, Be it Resolved by the City Commis- sion of Salt Lake City, Utah: 't IF,71''N 46 4e4 THE CONTINENTAL BANK AND TRUST COMPANY BOND DEPARTMENT: '�� 200 SOUTH MAIN STREET • SALT LANE CITY ,UTAH Salt Lake City Commission Feb. 9, 1977 City & County Bldg. (date) Salt Lake City, Utah Re: 1,630,000.00 Salt Lake City Utah Special Imp. District #480 Bonds Gentlemen: For all of the above named, legally issued bonds, as described in your Notice of Sale,which is made a part hereof, we hereby bid you par and accrued interest plus a premium of$ -0- . Said bonds shall bear interest and mature as follows: 1978 4.50 % 1983 4.00 % 1979 4.50% 1984 4.25 % 1980 4.25 % 1985 4.25 % 1981 4.00 % 1986 4.50 % 1982 4.00 % 1987 4.50 % This bid is made subject to the full unqualified approving legal opinion of Messrs. Jones, Waldo, Holbrook & McDonough it being agreed that you will pay all expenses incurred in obtaining said legal opinion. The printed bonds are to be furnished by you and at your expense. This bid is for prompt acceptance. As evidence of our good faith in submitting this bid, we are enclosing herewith our check for $ 32,600.00 to be retained by you in the event this bid is accepted; but otherwise, to be returned to us immediately. Respectfully submitted, Gross Interest Cost $ 386,462.50 United California Bank (--) Premium -0- San Francisco, Calif. Net Interest Cost $ 386,462.50 Continental Bank & Trust Co. Effective Rate 4.282133 %n Salt Lake Ci Utah c � -- —Vice President 'Marvin J. Hammond The above offer is hereby accepted for and on behalf of the Salt Lake City Corporation his 9th day of February , 1977 by the undersig d d authorized offi ials. ATTEST: C7, � • f-i ilti r_ dam- -4,4_, City Recorrr Mayor • -4- Section 1. That all the proceedings heretofore taken and adopted for the creation of Special Improvement District No. 480 for Salt Lake City, Utah, and for the con- struction of improvements therein and the assessment of a part of the cost of constructing such improvements on and against the private properties in said district shall be and the same are hereby ratified, approved, and confirmed; that no assessment exceeds the benefit to be derived from the improvements by the piece of property assessed, that no piece of property will bear more than its proportionate share of the cost of the improvements made. Section 2. That for the purpose of payment of the costs and expense of such improvements against the funds created and to be collected from such special assessments, there shall be issued $1,630,000 Salt Lake City, Utah Special Improvement Bonds of Special Improvement District No. 480. Said bonds are to be dated as of the 1st day of March, 1977, and shall mature serially on March 1 in each year in ten annual installments. Said bonds shall bear interest at the rate or rates, shall be numbered, shall be in the denomina- tion of $5,000 and shall mature, as follows: Bond Numbers Amount Amount of Year All Inclusive Maturing Coupon Maturing 1-32 160,000 4.50% 1978 33-64 160,000 4.50 1979 65-96 160,000 4.25 1980 97-128 160,000 4.00 1981 129-161 165,000 4.00 1982 162-194 165,000 4.00 1983 195-227 165,000 4.25 1964 228-260 165,000 4.25 1985 261-293 165,000 4.50 1986 294-326 165,000 4.50 1987 -5- Both principal and interest shall be payable at Walker Bank & Trust Company, 175 South Main Street, Salt Lake City, Utah. Section 3. That said bonds and the coupons thereto attached shall be in substantially the following form: (Form of Bond) STATE OF UTAH COUNTY OF SALT LAKE SALT LAKE CITY, UTAH SPECIAL IMPROVEMENT BOND SPECIAL IMPROVEMENT DISTRICT NO. 480 No. $5,000.00 For value received, Salt Lake City, Salt Lake County, Utah, a municipal corporation duly organized and existing under the laws of Utah, hereby promises to pay to bearer hereof, out of special funds available for such purpose, as hereinafter set forth, the principal sum of Five Thousand Dollars ($5,000.00) on the 1st day of March A.D., 19 , with interest thereon until maturity at the rate of percent ( o) per annum according to the coupons hereto attached, payable annually on the lst day of March in each year, both principal and interest being payable in lawful money of the United States of America at the office of Walker Bank & Trust Company, 175 South Main Street, Salt Lake City, Utah, upon presentation and surrender of this bond ana of the annexed coupons as they severally become due. This bond is one of a series of 326 Special Improve- ment Bonds (in the denomination of $5,000) numbered consecu- tively from 1 to 326, both inclusive, issued by Salt Lake City, all of which are of like date and designation and aggre- gate the total amount of $1,630,000. Payment of this bond and the interest thereon shall be made from and as security for such payment there is pledged a special fund designated as the Bond and Interest Fund of Special Improvement District No. 480, Salt Lake City, Utah containing the receipts derived by said City from the special tax and assessment levied upon the property included in Special Improvement District No. 480 of said City, by Salt Lake City Orainance No. 162/76 , as amended by Ordinance No. 170/76 which became effective on the 2nd day of November, 1976, for the purpose of paying the costs of constructing improvements on certain streets within said City consisting of construction or reconstruction of sidewalks, curbs, gutters, street paving, -6- and irrigation and water supply, electrical system, storm drainage, pedestrian paving, landscape features, architec- tural features, landscape planting, street lighting and miscellaneous work necessary in said district under, by virtue of, and in full conformity with the Constitution and Laws of the State of Utah and certain ordinances and resolu- tions of said City duly passed and made law thereof prior to the issuance hereof. It is hereby certified that a Special Improvement Guaranty Fund has been created by ordinance, as authorized by Utah statutes, and said City agrees that at all times dur- ing the life of this bond and until payment thereof in full, said fund shall be at all times maintained as therein required. THIS BOND IS NOT A GENERAL OBLIGATION OF THE CITY BUT IS PAYABLE EXCLUSIVELY OUT OF SAID BOND AND INTEREST FUND AND SAID SPECIAL IMPROVEMENT GUARANTY FUND. SAID CITY SHALL NOT BE HELD LIABLE FOR THE PAYMENT OF THIS BOND, EXCEPT TO THE EXTENT OF THE FUNDS CREATED AND RECEIVED BY SAID SPECIAL ASSESSMENTS AND TO THE EXTENT OF ITS SPECIAL IMPROVEMENT GUARANTY FUND; but said City shall be held responsible for the lawful levy of all special assessments, for the creation and maintenance of the Special Improvement Guaranty Fund as provided by law, and for faithful accounting, collection, settlement, and payment of the assessments and for the moneys of said fund. Said special assessment made and levied to defray said cost, with accruing interest thereon, and the cost of collection of the assessment constitute a lien upon and against the property upon which such assessment was made and levied from and after the 2nd day of November, 1976, the date upon which the amending ordinance levying such assessment became effective, which lien is superior to the lien of any trust deed, mortgage, mechanic's or materialman's lien, or other encumbrance and is equal to and on a parity with the lien for general property taxes and such lien shall continue until said assessment and interest thereon are paid, not- withstanding any sale of the property for or on account of a general property tax, special tax, other assessment, or the issuance of an auditor's deed. It is hereby further certified, recited and declared that all acts, conditions and things essential to the validity of the bond exist, have happened, and have been done in due time, form and manner as required by law, and that the total issue of special improvement bonds of said City for said district, including this bond does not exceed the amount authorized by law nor the special assess- ment levied to cover the cost of said improvements in said district, and that all of said special assessment has been lawfully levied. The City reserves the right to redeem in inverse numerical order any of the bonds of this issue maturing on March 1, 1983, or after, on March 1, 1982, or on any annual maturity and interest payment date thereafter at a price equal to the principal amount of the bonds redeemed and -7- accrued interest to the date of redemption plus a premium of two percent (2%) of the par value of the bonds redeemed. Notice of such redemption shall be given by publication of an appropriate notice one time in a newspaper of general circulation in Salt Lake City, Utah, at least 30 days prior to the date of redemption, together with notification of the firm of Burrows Smith and Company, Salt Lake City, Utah, and the original purchaser of the bonds. Interest on any bond subject to redemption shall cease to accrue on the date fixed for redemption if notice has been properly given and funds equal to the redemption price have been deposited with Walker Bank & Trust Company for the pur- pose of effecting the redemption. The bond is subject to the conditions, and every holder hereof by accepting the same agrees with the obligor and every subsequent holder hereof, that (a) the delivery of this bond to any transferee shall vest title in this bond and in interest coupons attached hereto in such transferee to the same extent for all purposes as would the delivery under like circumstances of any negotiable instrument pay- able to bearer; (b) the obligor and any agent of the obligor may treat the bearer of this bond as the absolute owner hereof for all purposes, and shall not be affected by any notice to the contrary; (c) the principal of and the interest on this bond shall be paid, and this bond and each of the coupons appertaining thereto are transferable, free from and without regard to any equities between obligor and the original or any intermediate holders hereof, or any setoffs or crossclaims; and (d) the surrender to the obligor or any agent of the obligor of this bond and each of the coupons shall be a good discharge to the obligor for the same. IN WITNESS WHEREOF, Salt Lake City, Utah has caused the facsimile signature of its Mayor to be hereunto affixed, and said bond to be countersigned by its City Recorder, and the annexed coupons to bear the facsimile signature of the City Treasurer and this bond to be dat - s of the 1st day of March, 1977. • Mayor Countersigned: City Recorder (S E A L) (Form of Coupon) Coupon No. $ On the 1st day of March, 19 , unless the hereinafter mentioned bond is then callable for redemption and has been so -8- called and provision for such redemption duly made, Salt Lake City, Salt Lake County, Utah, will pay to the bearer. hereof Dollars in lawful money of the United States of America, out of special funds designated the "Bond and Interest Fund of Special Improvement District No. 480 of Salt Lake City, Utah, and Special Improvement Guaranty Fund"at the Office of Walker Bank & Trust Company, 175 South Main Street, Salt Lake City, Utah, being one year's interest on its Special Improvement District No. 480 bonds, dated March 1, 1977. (Facsimile Signature) City Treasurer Bond No. Section 4. Said bonds shall bear the facsimile signature of the Mayor and be countersigned by the City Recorder, with the seal of the City affixed, and the annexed coupons shall bear the facsimile signature of the City Treasurer, and the City Commission does hereby ratify, approve and confirm the execution of said bonds by the said officers and the City Treasurer is hereby authorized to issue and deliver the bonds to the purchaser thereof, their agents or assigns, on receipt of the purchase price therefor. Section 5. The sale of bonds to Continental B.n,. and Trust Company at the price of par and accrued interest to the date of delivery, in accordance with the terms of the sealed bid submitted by said purchaser is hereby in all respects ratified and confirmed. Said bonds shall be delivered to the purchaser as soon as they may be legally issued, upon receipt by the City Treasurer of the agreed purchase price therefor. Section 6. The Treasurer of Salt Lake City, Utah, shall be and is hereby authorized and empowered, and it shall be his duty to receive and collect all assessments levied to pay the cost of said improvements, the installments thereon, the interest thereon, and the penalties accrued, including • -9- but without limiting the generality of the foregoing, the whole of the unpaid principal which becomes due and payable immediately because of the failure to pay any installment whether of principal or interest, when due, and to pay and disburse such payments to the person or persons lawfully entitled to receive the same in accordance with the laws of the State of Utah and all the ordinances and resolutions of said City heretofore or to be hereafter adopted. All moneys constituting the payment of principal and interest shall be placed in a special fund to be designated "Bond and Interest Fund of Special Improvement District No. 480, Salt Lake City, Utah," and shall be used for the purpose of paying the principal of and the interest on special improve- ment bonds of Special Improvement District No. 480 and for no other purpose whatsoever, and as security for such payment, said fund is hereby pledged. Section 7. The Salt Lake City Commission hereby directs the maintenance of a special improvement guaranty fund in the manner and to the extent provided by the laws of the State of Utah, and the City agrees with the holder of the bonds herein authorized that it will, until the payment of said bonds in full and the interest thereon has been paid, provide amounts to be transferred to the Special Improvement Guaranty Fund equal each year to such amount as a tax levy of one mill on all property in the City will produce until the Special Improvement Guaranty Fund is equal to not less than forty percent (40%) of the amount of all outstanding special improvement bonds of all special improvement districts of the City, and thereafter, the City will transfer to such -10- fund such amounts at least yearly as may be required to maintain or replenish such funds to such percentage. The Special Improvement Guaranty Fund shall be maintained separate and apart from other City funds and shall be used and applied only as provided by the laws of the State of Utah. Section 8. Should there not be sufficient money in the Bond and Interest Fund to pay all of the interest falling due at one time and the principal amount thereof due, the said interest and principal shall be paid from said Special Improvement Guaranty fund to the extent that there is suffi- cient money in said Special Improvement Guaranty Fund for this purpose, and these bonds are payable exclusively from the special assessments levied for said purpose and the said Special Improvement Guaranty Fund. Section 9. That the assessments and interest thereon shall continue to constitute and are hereby declared to be a lien in the several amounts assessed against every lot or tract of land in said Special Improvement District No. 480 from and after the 2nd day of November, 1976, the date on which the ordinance levying the special assessments became effective, which lien shall be superior to the lien of any trust deed, mortgage, mechanic's or materialman's lien, or other encumbrance, and shall be equal to and on a parity with the lien for general property taxes. Such lien shall continue until the assessment and any interest thereon are paid, notwithstanding any sale of the property for or on account of a general property tax, special tax, other assessment, or the issuance of an auditor's deed. -11- Section 10. Said funds hereinabove referred to shall be kept separate and apart from each other and from any other funds of the City and shall, from time to time as they are accumulated, be deposited in such bank or banks as are designated as depositories of public moneys for funds of said City under the Depository Laws of the State of Utah for the deposit of public funds. Section 11. Default in the payment of any install- ment of principal or interest of said assessment when due shall cause the whole of the unpaid principal or interest to become due and payable immediately and the whole amount of the unpaid principal shall thereafter draw interest at the rate of 10% per annum until paid, and the City covenants and agrees that it will proceed with due diligence to place in operation the procedure necessary to provide for tax sale of all delinquent property in accordance with the ordinances of Salt Lake City and the laws of the State of Utah and that the proceeds from the sale of any property sold will be placed in the Bond and Interest Fund hereinabove referred to. Section 12. This resolution shall be effective immediately upon its passage. ADOPTED AND APPROVED this 9th day of February, 1977. Mayor ATTEST: City Recorder (S E A L) -12- Thereupon, Commissioner Jess A. Agraz seconded the adoption of the foregoing resolution and the same upon being put to a vote was carried by the affirmative vote of the Commissioners present, the vote being as follows: Those voting AYE: Ted L. Wilson Jess A. Agraz Glen N. Greener Herman J. Hogensen Jennings Phillips, Jr. Those Voting NAY: None It appearing that more than a majority of the Commission has voted in favor of the motion, the Mayor there- upon declared the motion carried and Resolution adopted. /11...a.....___ Mayor ATTEST: tL1yt> �� CityR'cofr (S E A L) -13- STATE OF UTAH ss. COUNTY OF SALT LAKE ) I, MILDRED HIGHAM, the duly appointed, qualified and acting City Recorder of Salt Lake City, Utah, do hereby certify that the above and foregoing is a full, true and correct copy of the record of proceedings had by the Salt Lake City Commission, at its meeting held on the 9th day of February, 1977, insofar as the same relates to or con- cerns Special Improvement District No. 480 and the adoption of Resolution No. 15 as the same appears of record in my Office. I further certify that there is on file in my Office a permanent record of the foregoing resolution for Special Improvement District No. 480. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and affixed the official seal of said City this 9th day of February, 1977. , %ti ii!/• -LC(11Q�L�C-, City Recor r (S E A L)