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HomeMy WebLinkAbout33 of 1976 - A resolution authorizing the issuance and providing for the sale of $163,000 Special Improvement Bon 33 P: i! Resolution No. H By Jennings Phillips, Jr. COMMISSIONER I, Authorizing the issuance and providing i:1 for the sale of $163,000.00 Special ;)' 1,; Improvement Bonds of Special Improve- ment District No. 461-1. Presented to the Budd Commissioners AND PASSED MAY 5 197'6 p/a/dia/ CITY moor;- • !., • • . _ _ __ I 1:1 VOTING Aye Nay • Mr.Chairman.. Agraz • --Greener Hogensen Phillips Result A regular meeting of the Board of Commissioners of Salt Lake City, Utah, was held on P dnSsday , the 5th day of May, 1976, at the hour of 10:00 o'clock A.M. at the 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 follow- ing members who constituted a quorum: Ted L. Wilson Mayor Jess A. Agraz Commissioner Herman J. Hogensen Commissioner Jennings Phillips, Jr. Commissioner Also present: Mildred V. Higham City Recorder Joseph L. Fakler City Treasurer Lawrence A. Jones City Auditor Walter Miller Asst. City Attorney Absent: Glen N. Greener Commissioner Thereupon, the following proceedings, among others, were duly had and taken. The City Attorney's Office reported to the Commission on the bids which had been received by the City on or before May 5, 1976, for the purchase of Special Improvement District No. -2- 461-1 bonds. It was reported that the bids were as follows: Names of Bidders Maturities Interest Rates Premium Burrows, Smith and Company 1977-1981 6.007 none and associates 1982-1984 5.75 1985-1986 6.00 First Security Bank of Utah 1977-1986 6.00% $53.00 and associates Bosworth, Sullivan & Company 1977-1980 7.00% none and associates 1981-1983 6.90 1984-1986 6.25 Zions First National Bank 1977-1983 6.25% none and associates 1984-1936 6.50 It was further reported that the bid of Burrows, Smith and Company for the following respective maturities was the best responsible bid received therefor, and bears inter- est at the lowest rate as required by law. The bid of Burrows, Smith and Company is in full, as follows: • BURROWS? SMITH AND COMPANY Experienced since 1899 , Suite 1003 Kearns Building Salt Lake City, Utah 84101 Telephone: (801) 328-1511 To: Honorable Mayor and City Commission Date: May 5, 1976 City and County Building Salt Lake City, Utah Pursuant to your-Notice of Sale, which is incorporated herein by this reference, we plus accrued interest to the date of delivery pay $ 16$,000.00 , for $163,000 Salt Lake City, Utah, Special Improvement District No. 461-1 Rourlq which bonds are in the denomination of $1,000-$5,000'ach and are to be dated April 1. 1976 with interest payable on April 1,1977 and principal and interest being payable at Walker Bank&Trust Company. Salt T,akP City Titah , maturing serially on April 1 of each of the following years and bearing interest as follows: YEAR AMOUNT COUPON 1977 $16,000 6.00% 1978 16,000 6.00 1979 16,000 6.00 1980 16,000 6.00 1981 16,000 6.00 _ 1982 16,000 5.75 1983 16,000 5.75 1984 17,000 5.75 1985 17,000 6.00 1986 17,000 6.00 • Prior to our accepting delivery of said Securities, you agree to furnish a certified transcript of all documents and legal proceedings requisite to their issuance and delivery, including the signature and non-litigation certificate in customary market form, evidencing the legality of said Securities and the security provisions relating thereto to the satisfaction of Jones, Waldo, Holbrook & McDonough, of Salt Take City, Utah whose unqualified approving legal opinion will be furnished at your expense in custom- ary market form shall accompany said Securities at delivery, and said delivery shall be made to us within a reasonable period of time. To evidence our good faith, we enclose our check in the amount of$ 3,300.00 • If this offer is accepted, said check shall be held by you uncashed until delivery of said Securities, but in the event of a breach by us in the performance of this contract, said check may be cashed and the proceeds retained by you as full liquidated damages for such breach, and the cashing of such check in such event shall constitute a full release and discharge of all damages. If said bond attorneys are unable to approve said Securities, or in the event of a breach of this contract by you, said check shall be returned to us upon demand. This bid is made for immediate acceptance or rejection and if this offer is not accepted, said good faith check shall be returned to us immediately. It is mutually understood and agreed chat your acceptance of this offer and the execu- tion thereof by your official thereunto duly authorized, shall constitute a contract for the purchase and sale of said Securities. For information only: Respectfully submitted, Figures as of: BURROWS, SMITH AND COMPANY Gross Interest Cost $ 53,560.00 Less Premium $ -0- Plus Discount $ -0- Net Interest Cost $ 53.560.00 Average Rate 5.905182 % By CLZ._4 T 1 c' Herald O. ohnson • Accepted for and on behalf of Salt Lake City, Utah, p ursuant to authorization by its governing body, and receipt of the above mentioned check acknowledged, on this 5th day of May , 19 76 Official Title Mayor ATTEST: Official Title City Recorder -3- Thereupon, Commissioner Jennings Phillips, Jr. introduced and moved the adoption of the following resolution: RESOLUTION NO. 33 A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $163,000.00 SPECIAL IMPROVEMENT BONDS OF SPECIAL IM- PROVEMENT DISTRICT NO. 461-1 FOR SALT LAKE CITY, UTAH, PRESCRIBING THE FORM OF BOND AND INTEREST COUPONS, MATURITY AND DENOMINA- TION OF SAID BONDS, PROVIDING FOR THE CON- TINUANCE OF A GUARANTY FUND LEVY AS PRO- VIDED 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. 461-1 and the Ordinance of said City confirming the assessment roll for such improvements having been duly adopted and approved on the 22nd day of April, 1975; which ordinance was duly published as required by law on the 22nd day of April, 1975, and WHEREAS, an ordinance amending the assessment or- dinance of April 22, 1975, was adopted by the Commission on December 4, 1975, which amending ordinance was duly published as required by law on the 9th day of December 1975, and WHEREAS, the total cost of the project was $607,010.81, the City's portion was $310,372.19, and the owners of private -4- property in said district have paid $133,638.62 on the prin- cipal of their assessments, leaving an amount to be paid through the issuance of bonds or from funds provided by the City of $163,000.00. 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. 461-1 for Salt Lake City, Utah, and for the construction of improvements therein and the assessment of a part of the costs 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 im- provements 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 $163,000.00, Salt Lake City, Utah Special Improvement Bonds of Special Improvement District No. 461-1. Said bonds are to be dated as of the 1st day of April, 1976, and shall mature serially on April 1, in each year in 10 annual installments. Said bonds shall bear interest at the rate or rates, shall be numbered, shall be in the denominations of $1,000.00 and $5,000.00 and shall mature as follows: • -5- Bond Numbers Amount Amount All Inclusive Maturing of Coupon Year Maturing 1-4 $16,000.00 6.00% 1977 5-8 16,000.00 6.00 1978 9-12 16,000.00 6.00 1979 13-16 16,000.00 6.00 1980 17-20 16,000.00 6.00 1981 21-24 16,000.00 5.75 1982 25-28 16,000.00 5.75 1983 29-33 17,000.00 5.75 1984 34-38 17,000.00 6.00 1985 39-43 17,000.00 6.00 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. 461-1 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 April, 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 April 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 and of the annexed coupons as they severally become due. This bond is one of a series of 43 Special Improve- ment Bonds in denominations of $1,000.00 and $5,000.00 from • -6- 1 to 43, both inclusive, issued by Salt Lake City, all of which are of like date and designation and aggregate the total amount of $163,000,00. 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. 461-1, 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. 461-1 of said City, by Salt Lake City Ordinance No. 39/1975, as amended by Ordinance No. 149/1975 which became effective on the 9th day of December, 1975; for the pur- pose of paying the costs of constructing improvements on cer- tain streets within said City consisting of construction or reconstruction of sidewalks, curbs, gutters, street paving, and other appurtenant works, and to remove trees and other non-conforming improvements and to excavate, fill, grade, drain, and do all 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 or- dinances 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 exclu- sively 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 faith- ful 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 9th day of December, 1975, the date upon which the amending ordinance levying such assessment became effective, which lien is superior to the lien of trust deeds, mortgages, mechanic's or materialman's liens or other encumbrances 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, 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. -7- 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 purposes 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 pur- poses, 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 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 April, 1976. Mayor Countersigned: City Recorder4 ( S E A L) (Form of Coupon) Coupon No. $ On the 1st day of April, 19 , Salt Lake City, County of Salt Lake, State of Utah, will pay the bearer hereof -8- 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. 461-1 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. 461-1 bonds, dated April 1, 1976. (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 Burrows, Smith and 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 rati- fied and confirmed. Said bonds shall be delivered to the pur- chaser 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 without limiting -9- 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. 461-1 , Salt Lake City, Utah," and shall be used for the purpose of paying the principal of and the interest on special improvement bonds of Special Improvement District No. 461-1 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 outstandin; special improvement bonds of all special improve- ment 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 • -10- 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 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. 461-1 from and after the 9th day of December, 1975, the date on which the amending 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. 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 -11- as depositories of public moneys for funds of said City under __.e Depository Laws of the State of Utah for the deposit of public funds. Section 11. Default in the payment of any installment 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 10o 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 imme- diately upon its passage. ADOPTED AND APPROVED this 5th day of May 1976. Mayor ATTEST: rr yam' e � !% z City Record !S E A L) Thereupon, Commissioner Jess A. Agraz seconded adoption of the foregoing resolution and the same upon being to a vote was carried by the affirmative vote of the Commissioners -12 - present, the vote being as follows: Those voting AYE: Ted L. Wilson Jess A. Agraz 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 thereupon declared the motion carried and the Resolution adopted. Mayor ATTEST: /sic• v, NC5/7-//.[_Qn Lt. City Recor` h (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 5th day of May, 1976, insofar as the same relates to or concerns Special Improvement District No. 461-1 and the adoption of Resolution No. 33 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. 461-1. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and affixed the official seal of said City this 6th day of May, 1976. cC !/• � Q... J City Recor( S E A L )