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HomeMy WebLinkAbout65 of 1980 - A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $406,000.00 SPECIAL IMPROVEMENT .1 - / A regular meeting of the City Council of Salt Lake City, Utah, was held on Tuesday, the 23rd day of September, 1980, at the hour of 5:00 o'clock p.m. at the City and County Building, Salt Lake City, Utah, being the regular meeting place of said Council, at which meeting there were present and answering roll call the following members who constituted a quorum: TED L. WILSON Mayor RONAL➢ J. WHITEHEAD Council.Chairman GRANT MABEY CouncilMember SYDNEY REED FONNESBECK CouncilMember PALMER DePAULIS CouncilMember ALICE SHEARER CouncilMember IONE M. DAVIS CouncilMember EDWARD W. PARKER CouncilMember Also present: Roger F. Cutler City Attorney Albert E. Haines Director Finance & Adm. Services Stephen D. Page Acting City Treasurer Mildred V. Higham City Recorder Absent: Thereupon, the following proceedings, among others, were duly had and taken. A report was made to the Council on the bids which had been recieved by the City on September 23, 1980, for the purchase of Special Improvement District No. 38-596 bonds. It was reported that the bids were as follows: Names of Bidders Maturities Interest Rates Premium Kirchner, Moore and Company and Associates 1981-88 9.00% 8.844766% $-0- 1989 8.50% 1990 8.60% The bid of Kirchner Moore and Company for the Bonds was the best responsible bid received therefor, and bears interest at the lowest rate as required by law. The bid of Kirchner, Moore and Company is in full as follows: -2- BID FORM $406,000 SPECIAL ASSESSMENT BONDS CURB AND GUTTER SPECIAL IMPROVEMENT DISTRICT EXTENSION #38-596 City and County Building . City Council Chambers Room 301 i Salt Lake City, Utah 84111 i< Honorable Mayor and City Council: t K For $406,000 par value Special Improvement District Extension #38-596 ` Bonds of Salt Lake City, dated October 1, 1980, denomination $1,000 and $5,000 and maturing serially on October 1, 1981 through October 1, 1990; in the = amounts shown herein, with interest payable October 1, 1981, and annually thereafter on the first day of October of each year at the rate or rates spec- ified herein until said Bonds are paid, we will pay $ 406.00o.0n plus accrued interest, to the date of delivery of said Bonds to us. The schedule of maturities, coupon rate or rates, total interest cost, the net interest cost, and the effective rate of interest upon which this bid is based, with interest computed from October 1 to the maturity date of the Bonds '} are as follows: Annual Cumulative Maturity Date Amount Coupon Bond Years Bond Years 1981 $40,000 9 % 40 40 t ' 1982 40,000 9 80 120 1983 40,000 9 120 240 1984 40,000 9 160 400 1985 41,000 9 205 605 ', 1986 41,000 9 246 851 k 1987 41,000 9 287 1,138 1988 41,000 9 328 1,466 1989 41,000 s.so 369 1,835 1990 41,000 8.60 410 2,245 Total Interest to Maturity $ 198.565.00 Less Premium $ -0- =;i Net Interest Cost $ 19A.565.00 Net Effective Interest Rate 8.844766 % . This bid is submitted in accordance with and subject to all provisions contained in the Official Notice of Bond Sale of these bonds which by this reference is made a part hereof. A cashier's or certified good faith check in the sum of $8,120, drawn upon an incorporated bank or trust company and payable to the ord,:r of the City Council is enclosed to be retained by said City Council and applied on the 4.' 8- purchase price of these bonds if we are the successful bidder, otherwise to be returned to us. Respectfully submitted this 23rd day of September, 1980. Kirchner Moore, Denver Colorado Continental Hank & Trust Co., Salt Lake City - F_ rf �t Accepted for and on behalf of the C' Cou i of Salt Lake City this 23rd day of September, 1980. /1 Mayor ATTEST: (7l4c ilA j 72, VcJ City Recorcer Good faith check I returned and receipt thereof acknowledged this day of , 1980. RESULTS OF SALE Bond Index ?/• /2S i BURROWS, SMITH & COMPANY 1003 Kearns Building Salt Lake City, Utah 84101 355-6700 Issue: $ 7 /1/)0 SLe S• I,h. 4 -3 " 6 Sale DateZ Se 1 re) Covered by:/_a,r.M,. £! 'f` Syndicate Syndicate Syndicate Syndicate • Syndicate Syndicate Clonal- ore ec, CO V, M Coupon Coup'on Coupon Coupon Coupon Coupon 9.0% 19g"/ to 19 n" % 19 to 19 % 19 to 19 % 19 to 19 % 19 to 19 %a 19 to 19 '.,SO% 19$'9 to 19 % 19 to 19 % 19 to 19 %a 19 to 19 % 19 to 19 % 19 to 19' './..6,7 19 96. to 19 % 19 to 19 % 19 to 19 % 19 to 19 % 19 to 19 % 19 to 19_ % 19 to19 % 1.9 to19 % 19 to19 %019 to19 % 19 to19 % 19 to19_ % 19 to19 % 19 to19 % 19 to19 % 19 to19 %019 to19 % 19 to 19 °0 19 to 19 % 19 to 19 % 19 to 19 % 19 to 19 % 19 to 19 % 19 to 19_ Ex. Cpns: Ex. Cpns: Ex, Cpns: Ex. Cpns: Ex. Cpns: Ex. Cpns: to to to to to to Gross $fig c7,57/2C Gross $ Gross $ Gross $, Prem.GrossDisc.$ Gross Disc.$ Prem. Disc.$ - Q - Prem. Disc.$ Prem. Disc.$ Prem. Disc.$ Net $l 47c,S(p j Net $ Net $ Net $ Net $ Net $ Net Rate �B', y74470 Net Rate % Net Rate %a Net Rate % • Net Rate To Net Rate % Position I Position Position Position Position Position -3- Thereupon, Council Member Alice Shearer introduced and moved the adoption of the following resolution: RESOLUTION NO. 65 A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $406,000.00 SPECIAL IMPROVEMENT BONDS OF SPECIAL IMPROVEMENT DISTRICT NO. 38-596 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 governing body of Salt Lake City, Utah, has heretofore adopted proceedings for the construction of improvements in Special Improvement District No. 38-596 and the Ordinance of said City confirming the assessment roll for such improvements having been duly adopted and approved on the 15th day of April, 1980; and WHEREAS, said Ordinance was duly published according to law on the 23rd day of April, 1980, and WHEREAS, the total taxes levied amounted to $418,351.50, and there has been paid $12,351.50 on the principal of the assessments, leaving an amount to be paid through the issuance of bonds of $406,000.00. NOW, THEREFORE, Be it Resolved by the City Council of Salt Lake City, Utah: Section 1. That all the proceedings heretofore taken and adopted for the creation of Special Improvement District No. 38-596 for Salt Lake City, Utah, and for the construction 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 -4- 1 exceeds the benefit to be derived from the improvements by the piece of property assessed, and 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 $406,000.00 Salt Lake City, Utah Special Improvement Bonds of Special Improvement District No. 38-596. Said bonds are to be dated as of the 1st day of October, 1980, and shall mature serially on October 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 denomination of $5,000.00 and $1,000.00 and shall mature as follows: BOND NUMBERS AMOUNT AMOUNT OF YEAR ALL INCLUSIVE MATURING COUPON MATURING 1-8 $40,000 1981 9-16 40,000 1982 17-24 40,000 1983 25-32 40,000 1984 33-41 41,000 1985 42-50 41,000 1986 51-59 41,000 1987 60-68 41,000 1988 69-77 41,000 1989 78-86 41,000 1990 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: -5- (Form of Bond) STATE OF UTAH COUNTY OF SALT LAKE SALT LAKE CITY, UTAH SPECIAL IMPROVEMENT BOND SPECIAL IMPROVEMENT DISTRICT NO. 38-596 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 October 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 October 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 86 Special Improvement Bonds (in the denominations of $5,000 and $1,000) numnbered consecutively from 1 to 86, both inclusive, issued by Salt Lake City, Utah, all of which are of like date and designation and aggregate the total amount of $406,000. 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. 38-596, 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. 38-596 of said City, by Salt Lake City Ordinance No. 30 of 1980, which became effective on the 23rd day of April, 1980, for the purpose of paying the costs of constructing improvements on certain streets within said City consisting of construction or reconstructon of curb and gutter, paving, sidewalks, 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 -6- 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 23rd day of April, 1980, the date upon which the 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, notwithstanding any sale of the proprty for or on account of a general property tax, special tax, other assessment, or the issuance of an auditor's deed. Bonds of this issue maturing prior to October 1, 1986, are not callable for redemption prior to maturity. The bonds maturing on or after October 1, 1987, are callable for redemption prior to maturity at the option of the City Council on October 1, 1986, and on any interest payment date thereafter, in whole or in part, in inverse numerical order, at a price equal to the principal amount thereof, plus accrued interest to the date of redemption and a premium of three percent (3%) of the principal amount of each bond so called for redemption prior to maturity. Notice of redemption shall be given (i) by publication one time in a newspaper having general circulation in the State of Utah, such publication to be not less than thirty (30) days prior to the redemption date, and (ii) by mailing, postage prepaid, not less than thirty (30) days prior to the redemption date, a copy thereof to the initial purchaser of the bonds. If notice of redemption has been given as aforesaid then the bonds called for redemption shall, on the redemption date, become due and payable, and thereafter interest on the bonds so called for redemption shall cease to accrue and the coupons for interest maturing after the redemption date shall be void. 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 unpaid principal amount of 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. -7- 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 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 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 acting City Treasurer and this bond to be dated as of the 1st day of October, 1980. Mayor Countersigned: City Recorder (S E A L) -8- (Form of Coupon) Coupon No. $ On the 1st day of , 19_, (unless this bond shall have been duly called for previous redemption) 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. 38-596 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. 38-596 bonds, dated October 1, 1980. (Facsimile Signature) Acting City Treasrurer 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 -9- • coupons shall bear the facsimile signature of the acting City Treasurer, and the City Council does hereby ratify, approve and confirm the execution of said bonds by the said officers and the acting City Treasurer is hereby authorized to issue and deliver the bonds to the purchaser thereof, its agents or assigns, on receipt of the purchase price therefor. Section 5. The sale of bonds to Continental Bank & Trust Co. and Kirchner, Moore & Co. of Denver 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 acting City Treasurer of the agreed purchase price therefor. Section 6. The acting 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 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 -10- "Bond and Interest Fund of Special Improvement District No. 38-596, 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. 38-596 and for no other purpose whatsoever, and as security for such payment, said fund is hereby pledged. Section 7. The Salt Lake City Council 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 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 -11- 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. 38-596 from and after the 23rd day of April, 1980, 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. 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 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 -12- 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 23rd of Sept mber, 1980. ATTEST: C_� Mayor City Recorder/ (S E A L) Thereupon, Council Member Sydney Reed Fonnesbeck , seconded the adoption of the foregoing resolution and the same upon being put to a vote was carried by the affirmative vote of the Councilmembers present, the vote being as follows: Those voting AYE: Chairman Ronald J. Whitehead Council Member Grant Mabey Council Member Sydney Reed Fonnesbeck Council Member Palmer DePaulis Council Member Alice Shearer Council Member Ione M. Davis Council Member Edward W. Parker -13- Those voting NAY: NONE It appearing that more than a majority of the Council has voted in favor of the motion, the Mayor thereupon declared the motion carried and the Resolution adopted. Mayor ATTEST: /�/✓�GChy 1� l� Ll L G.ctiti City Recorder (S E A L) -14- A 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 Council, at its meeting held on the 23rd day of September, 1980, insofar as the same relates to or concerns Special Improvement District No. 38-596 and the adoption of Resolution No. 65 as the same appears of record in may Office. I further certify that there is on file in my Office a permanent record of the foregoing resolution for Special Improvement District No. 38-596. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and affixed the official seal of said City this 23rd day of September , 1980. . /7 - . ems_ City Recorde (S E A L) 3528a -15- Resolution No. By City Council Authorizing the issuance and providing for the sale of Special Assessment Bonds in the amount of$406,000.00 for Special Improvement District 38-596, to Continental Bank and Trust Company' of Salt Lake City, Utah and Kirchner, Moore and Company of Denver, Colorado. :t)