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HomeMy WebLinkAbout16 of 1977 - A resolution authorizing the issuance and providing for the sale of $182,000 Special Improvement Bon 16 Resoletion No. By ...Jennings_Plullips...Jr. Authorizing the issuance and providing for the sale of $182,000 Special Improvement Bonds of.Special Improvement District No. 516. Presented to the Board of CommissionerB AND PASSED • FEB 9 1977 • CITY RECORD, A regular meeting of the Board of Commissioners of 9th Salt Lake City, Utah, was. held on Wednesday , the [8#1 February day of may, 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 who constituted a quorum: Ted L. Wilson Commissioner - Mayor Jess A. Agraz Commissioner Glen N. Greener Commissioner Herman J. Hogensen Commissioner Jennings Phillips, Jr. Commissioner Also present: Lawrence A. Jdnes 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. A report was made to the Commission on the bids which had been received by the City on January 26, 1977, for the purchase of Special Improvement District No. 516 bonds. It was reported that the bids were as follows: ROLL CALL VOTING Aye Nay Mr.Chairman . . Agraz Greener Hogensen Phillips Result I ,/ • -2- • Names of Bidders Maturities Interest Rates Premium E. F. Hutton & Company 1978-1984 5.62% 0 1985-1986 5.25 Hanifen, Imhoff & 1978-1979 5,15 0 Samford, Inc. 1980-1982 5.00 1983-1984 4.75 1985 4.80 1986 5.00 Dean Witter & Co. 1978-1981 5.60 $4.62 1982-1983 4.60 1984 4.75 1985-1986 4.90 Foster & Marshall 1978-1982 5.50 0 1983 4.90 1984-1985 5.10 1986 5.25 Burrows, Smith 1978-1979 5.00 0 & Company 1980-1986 5.75 Bosworth & Sullivan 1978-1981 5.75 0 1982 4.75 1983 5.25 1984-1985 5.00 1986 5.25 The bid of Hanifen, Im„off a Samford, Inc., for the following respective maturities was the best responsible bid received therefor, and bears interest at the lowest rate as required by law. The bid of Hanifen, Imhoff & Samford, Inc., is in full as follows: / O / ‘rf '624 Ter PONT PLACE•DENVEH,cOLORAUO f30202•(Jo3) C)3,1- 120 uROAownv•NEW YORK CITY,NS2,VORK 1000,•(212) 2.22-Y570 MEMBER: NEV/YOHK STOCK. EXCHANGE.INC. PACIFIC STOCK EXCHANCE.INC. Salt lake City Con:_fission City Cooinissicn Chambers , Ci.t'. gib Scanty 40l) Oorib State Street --. Salt Lake City, Stab Gentlemen: As per your Notice of Sale, which said notice is made part of our bid for $182,000 Salt: L� Cit:v, Utall Secia1- %I:rca: �istri_ce 516 L', ::is which said bonds are to be dated 'rl%•i �lr_;_11,2r� � both principal and semi-annual interest ( J1 11-.1yry 1 E. ) being payable at /0; 41a].ker Bank I 'Trust Conrreily, 175 South-,pin Street`. Salt Late City , we offer the following proposal: For the bonds being in the denomination of$1,000 each, maturing serially, and bearing interest rates as set forth below, we will pay you$ 182,000 and accrued interest from date of issuance to date of delivery to us and a premium of$ — 0 — Amount Maturity Rate Amount Maturity Rate Amount Maturity Rate 20,000 2-1-78 5.15% % ? 20,000 2-1-79 5.15% 20,000 2-1-80 5.00% % 9, 20.000 2-1-81 5.00% % 20,000 2-1-8? 5.00% % _% 20,000 2-1-8', 4.7570 % __% 20,000 2-1-811_ 4.75% % 21 000 7-145 4.80% 21,000 2-1-86 5.0070 m Wo It is hereby represented that the gross interest cost computed upon the above specified rates from Fehr, 1, 1972 , will he$ 44,954.00 , and that the net interest cost, deducting premium offered, will be$ 44,9D4.00 (NER 4.9022%). Enclosed please find our certified check in the amount of$ },330,1)0 , which said check is to be held by you as part payment for the bonds in the event we are the successful bidders, and to be forfeited by us as full liquidated damages if we fail to take up and pay for said bonds when they are ready for delivery, otherwise, to be returned to us immediately. This purchase proposal is subject to the legality of the bonds being approved by Messrs. Jones, Waldo, Holbrook & UcDonoe;._ t , attorneys at law, Salt Lake City, Utah , whose unqualified approving legal opinion together with the printed bonds and transcript of the legal proceedings will be furnished the purchaser at Your expense. The above proposal is for immediate acceptance only. Respectfully submitted, HANIIFEN, IMHOFF & SAMFORD, INC. •B 1' \!C.rry( Cff/e•-r«. t f-d i FClin j, Vice6i,side nt ACCEPTED for and on behalf of pursuant to authorization by its governing body on this day of , 19 . ATTEST: Title Title (SEAL) c�� -4C. 1624 TREMONT PLACE DENVER,COLORADO 80202 (3031 534-0221 • 928 9T14 AVENUE-GRE_LEY COLORADO 6063I 2031 356-47'4 929GRAND AVENUE•GLEN\YOOD 5RRINGS,CO,ORADO 8160, '302,945-8223 MEMBER. NEw TORN S OCN ExCrIANDE,4qC mrOwEsT OCN E ,NC N STOCK E RANG NC. RACIF CSTOCK ExCRANGE u,C ASSOCIATE MEMBER January 27, 1977 The Honorable Mayor and City Corseissioners City Commission Chambers City and County Building 400 South State Street Salt Lake City, Utah Gentlemen: In regard to our bid for $182,000 Salt Lake City, Utah Special Improvement District #516 Bonds, you are hereby authorized to change our bid from semi-annual to annual interest. In addition, we realize that the bonds will be issued in $5000 denominations where applicable. Sincerely, David C. Dobbs Senior Vice President DCD:al • -3- Thereupon, Commissioner Jennings Phillips, Jr. introduced and moved the adoption of the following resolution: RESOLUTION NO. 16 A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $182,000 SPECIAL IMPROVEMENT BONDS OF SPECIAL IMPROVEMENT DISTRICT NO. 516 FOR SALT LAKE CITY, UTAH, PRESCRIBING THE FORM OF BOND AND INTEREST COUPONS, MATURITY AND DENOMINATION OF SAID BONDS, PROVIDING FOR THE CONTINUANCE OF A GUARANTY FUND LEVY AS PROVIDED BY STATUTE AND PROVIDING 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. 516 and the Ordinance of said City confirming the assessment roll for such improvements having been duly adopted and approved on the 16th day of September, 1975; and WHEREAS, said Ordinance was duly published accord- ing to law on the 16th day of September, 1975, and -4- WHEREAS, the total taxes levied amounted to $280,629.15, and the owners of private property in said dis- trict have paid $98,629.15 on the principal of their assess- ments, leaving an amount to be paid through the issuance of bonds or from funds provided by the City of $182,000.00. NOW, THEREFORE, Be it Resolved by the City Commission of Salt Lake City, Utah: Section 1. That all the proceedings heretofore taken and adopted for the creation of Special Improvement District No. 516 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 assess- ment 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 to be 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 $182,000.00 Salt Lake City, Utah Special Improvement Bonds of Special Improvement District No. 516. Said bonds are to be dated as of the 1st day of February, 1977, and shall mature serially on February 1 in each year in nine annual installments. Said bonds shall bear interest at the rate or rates, shall be numbered, shall be in the denomination of $5,000 and $1,000 and shall mature as follows: -5- BOND NUMBERS AMOUNT AMOUNT OF YEAR ALL INCLUSIVE MATURING COUPON MATURING • 1-4 $20,000 5.15% 1978 5-8 20,000 5.15 1979 9-12 20,000 5.00 1980 13-16 20,000 5.00 1981 17-20 20,000 5.00 1982 21-24 20,000 4.75 1983 25-28 20,000 4.75 1984 29-33 21,000 4.80 1985 34-38 21,000 5.00 1986 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. 516 No. $ 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 Thousand Dollars ($ ) on the 1st day of February A.D., 19_ with interest thereon until maturity at the rate of percent ( %) per annum according to the coupons hereto attached, payable annually on the 1st day of February in r :; • -b- each year, both principal and interest being payable in law- ful 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 and of the annexed coupons as they severally become due. This bond is one of a series of 38 Special Improve- ment Bonds (in the denominationsof $5,000 and $1,000) numbered consecutively from 1 to 38, both inclusive, issued by Salt Lake City, all of which are of like date and designation and aggregate the total amount of $182,000.00. 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. 516, 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. 516 of said City, by Salt Lake City Ordinance No. 104 , which became effective on the 16th day of September, 1975, for the purpose of paying the costs of constructing improvements on certain streets within said City consisting of construction or reconstruction of brick sidewalks, curbs, gutters, and other 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 resolutions 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 during 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 16th day of September, 1975, the date upon which the ordinance levying such assessment became effective, which lien is superior to the lien of any trust -7- • 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 assessment levied to cover the cost of said improvements in said district, and that all of said special assessment has been lawfully levied. 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 the interest coupons attached hereto in such transferee to the same extent for all purpcses as would the delivery under like circumstances of any negotiable instrument payable 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 origi- nal or any intermediate holders hereof, or any set-offs 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 dated as of the 1st day of February, 1977. /-1 mayor Countersigned: City Recorder (S E A L) -8- (Form of Coupon) Coupon No. $ On the 1st day cf February, 19 , Salt Lake City, County of Salt Lake, State of Utah, will pay 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. 516 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. 516 bonds, dated February 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 Recor- der, 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 Hanifen, Imhoff & Samford, Inc., 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 res- pects ratified and confirmed. Said bonds shall be delivered to the purchaser as soon as they may be legally issued, upon -9- 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 with- out 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 prin- cipal 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. 516, 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. 516 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 -10- bonds in full and the interest thereon has been paid, pro- vide 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 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 Spe- cial Improvement Guaranty fund to the extent that there is sufficient 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. 516 from and after the 16th day of September, 1975, the date on which the ordinance levying the special assessments . -11- 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 assess- ment, or the issuance of an auditor's deed. 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 delin- quent property in accordance with the ordinances of Salt Lake City and the laws of the State of Utah and that the pro- ceeds from the sale of any property sold will be placed in the Bond and Interest Fund hereinabove referred to. -12- Section 12. This resolution shall be effective immediately upon its passage. February ADOPTED AND APPROVED this 9th day of ammursx, 1977. -�i Mayor ATTEST: CiLy Recorde7 (S E A L) Thereupon, Commissioner Herman J. Hogensenseconded 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 Glen N. Greener Herman J. Hogensen Jennings Phillips, Jr. Jess A. Agraz Those voting NAY: none , -13- • 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 the Resolution adopted. Mayor ATTEST: lam_ ll.Lbt- City Record ( S E A L ) 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 9th Lake City Commission, at its meeting held on the aith day of February JUIVaglit4 1977, insofar as the same relates to or concerns Special Improvement District No. 516 and the adoption of Resolution No. 16 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. 516. 1 ' -14- IN WITNESS WHEREOF, I have hereunto subscribed my official signature and affixed the official seal of said February City this 9th day of X3c644*.Ki , 1977. City Reco r (S E A L)