79 of 1975 - A resolution authorizing the issuance and providing for the sale of $176,000 Special Improvement Bon ir' i. 1
,; Resolution No.
"79
r ,
By Jennings Phillips, Jr.
_ III' COMMIBBIONEN III
Authorizing the issuance and providinP -
Ifor the sale of $169,000.00 special
IImprovement bonds of Special Improve-i
anent District No. 426.
II
Presented to the Board of CaMnlssloner1
. AND PASSED
DEC 161975
AVOW X%�
CRY moor-
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1
I
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1%
4 r
d
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ROLL CALL -f
VOTING Aye Nay
Mr.Chairman 2
Greener
Harmsen
Hogensen
i[k
Phillips
Result
A regular meeting of the Board of Commissioners of
Salt Lake City, Utah, was held on Tuesday , the 16th
day of December, 1975, 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:
• Conrad S. Harrison Commissioner - Mayor
Jennings Phillips, Jr. Commissioner
Stephen M. Harmsen Commissioner
Herman J. Hogensen Commissioner
Commissioner
Also present:
Roger F. Cutler City Attorney
Joseph L. Fakler City Treasurer
Absent:
Glen N. Greener Commissioner
Thereupon, the following proceedings, among others, were
duly had and taken.
Roger Cutler of the City Attorney's Office reported to
the Commission on the bids which had been received by the City
on November 20, 1975, for the purchase of Special Improvement
District No. 426 bonds. Mr. Cutler reported that the bids
2.
were as follows:
Names of Bidders Maturities Interest Rates Premium
Continental Bank and Trust 1977 through 1982 6.00% None
Company 1983 5.75%
Burrows, Smith and Company 1977 through 1983 6.25% None
Zions 1st National Bank 1977 through 1980 6.25% $55.00
1981 through 1983 6.50%
E. F. Hutton and Company 1977 through 1983 6.75% None
Hanifen, Imhoff & Samford 1977 through 1930 7.00% None
1981 6.75%
1982 6.50%
1983 % 6.75%
Mr. Cutler further reported that the bid of Continental
Bank & Trust Company 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 Continental Bank & Trust Company is in full,
as follows:
Cr_'
I
; ; TilE CONTINENTAL BANK AND TRUST CO:ith NY
(t BOND DEPARTMENT:
2D0 SOUTH MAIN STREET • SALT LAKE CITY .UTAH
Salt Lake City Commission November 20, 1975
City & County Building (date)
•400 South State Street
Salt Lake City, Utah 84111
Re: $169,000 Salt Lake City Special Improvement District #426
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:
1977 through 1982 6.00%
1983 5.75%
e
This bid is made subject to the full unqualified approving legal opinion of Messrs.
1 Jones. Waldo & Holbrook
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 $ 3.380.00 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 $ 40,302.50 Continental Bank & Trust Company
(--) Premium - -
Net Interest Cost $ 40,302.50
Effective Rate 5.935567 %
By/ /- .ro -./ -,1"-e i
e-President \
The above offer is hereby accepted for and on behal of/the Board of Commissioners
of Salt Lake City, Utah /1- / this 2bth_� day�of
dovember , 1975 by the undersi ned duly authorized of ' ials. '\
��- .(ct?l((, ((' 0,0 7)
�� ^City Treasurer Tey�poiary Chairman/
3.
Thereupon, Commissioner Jennings Phillips, Jr.
introduced and moved the adoption of the following resolution:
RESOLUTION NO. 79
A RESOLUTION AUTHORIZING THE ISSUANCE
AND PROVIDING FOR THE SALE OF $169,000
SPECIAL IMPROVEMENT BONDS OF SPECIAL
IMPROVEMENT DISTRICT NO. 426 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 RESO-
LUTION SHALL BE IN EFFECT.
WHEREAS, the City Commission of Salt Lake City, Utah
has heretofore adopted proceedings for the construction of improve-
ments in Special Improvement District No. 426 and the
Ordinance of said City confirming the assessment roll for such
improvements having been duly adopted and approved on the 11th
day of December , 1973; and
WHEREAS, notice of assessments to property owners in
said District has been published in accordance with the requirements
4.
of the laws of the State of Utah and the ordinances of said City,
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 $ 932,689.13 ,
the City's portion was $ 500,875.49 , and the owners of
private property in said district have paid $262,813.64
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 $169,000 .
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. 426 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 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
$169,000 Salt Lake City, Utah Special Improvement Bonds of
Special Improvement District No. 426 . Said bonds are to be
dated as of the 1st day of January, 1976, and shall mature serially
.
• 5.
on January 1 in each year. Said bonds shall bear interest at
the rate or rates, shall be numbered, shall be in the denomina-
tion of $1,000 and shall mature, as follows:
Bond Numbers Amount Amount of Year
All Inclusive Maturing Coupon Maturing
1-24 $24,000 6.00% 1977
25-48 24,000 6.00 1978
49-72 24,000 6.00 1979
73-96 24,000 '6.00 1980
97-120 24,000 6.00 1981
121-144 24,000 6.00 1982
145-169 25,000 5.75 1983
$169,000
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. 426
No. $1,000.00
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 One Thousand Dollars ($1,000.00) on the 1st day
of January 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 January
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.
•
6.
This bond is one of a series of 169 Special Improve-
ment Bonds (in the denomination of $1,000) numbered consecutively
from 1 to 169, both inclusive, issued by Salt Lake City, all
of which are of like date and designation and aggregate the total
amount of $169,000.
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. 426, Salt Lake City, Utah containing
the receipts derived by said City from the Special tax and assess-
ment levied upon the property included in Special Improvement
District No. 426 of said City, by Salt Lake City Ordinance
No. 142 , which became effective on the llth day of December,
1973, for the purpose of paying the costs of constructing improve-
ments on certain streets within said City consisting of construc-
tion or reconstruction of sidewalks, curbs, gutters, street pav-
ing, 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 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 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 re-
ceived 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
llth day of December, 1973, the date upon which the
ordinance levying such assessment became effective, whic_i 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 property for or on
account of a general property tax, special tax, other assessment,
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 sub-
sequent 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 inter-
est 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 January, 1976.
Mayor
Countersigned:
City Recorder
(S E A L)
(Form of Coupon)
Coupon No. $
On the 1st day of January , 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. 426
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. 426 bonds, dated January 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 Continental Bank &
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 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. 426 , 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. 426 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 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
__..._. ,."41.
•
•
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 specia' 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. 426 from and
after the 11th day of December , 1973 , 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
t
11.
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 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 imme-
diately upon its passage.
ADOPTED AND APPROVED this 16th day of December ,
1975. Ce5
Mayor
ATTEST: //��
7f GGF.C.QC //• t L.G4rov
City Recorder
(S E A L)
Thereupon, Commissioner Stepheg M: Harmsen 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
•
12.
present, the 'vote being as follows:
Those voting AYE: Conrad B. Harrison. Mayor - Commissioner
Jennings Phillips, Jr., Commissioner
Stephen M. Harmsen, Commissioner
Herman J. Hogensen, Commissioner
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:
City Record
C
•
(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 cony of
the record of proceedings had by the Salt Lake City Commission,
at its meeting held on the 16th day of December, 1975, inso-
far as the same relates to or concerns Special Improvement
District No. 426 and the adoption of Resolution No. 79
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 Improve-
ment District No. 426
IN WITNESS WHEREOF, I have hereunto subscribed my official
signature and affixed the official seal of said City this 16th
day of December , 1975.
City Reco er
(S E A L)
Municipal Financial Consultants
Inte.statents!Tax Free Bonds
Experience Since 1899
Burrows, Smith and Company
Suite 1003 Kearns Building
Salt Lake City, Utah 84101
Terephaaes28-1511 December 12, 1975
Mrs. Mildred V. Higham
City Recorder
City-County Building
Salt Lake City, Utah 84111
Re: $169,000 Special Improvement District #426 of
Salt Lake City, Utah
Dear Mrs. Higham:
Enclosed herewith are five copies of bond sales proceedings prepared
by bond attorneys Jones, Waldo, Holbrook and McDonough. Please have
the resolution presented to the City Commission as soon as possible.
After this has been done, please complete the proceedings as follows:
Page 1 should reflect the proceedings of the adoption of the resolution.
Page 3 should include the Commissioner's name who introduced the
resolution and the resolution number. You need not complete pages
5 through 8 as these are simply the form of bond to be used by the
bond printer. You should check to make sure that the ordinance number
142 is correct for the ordinance that became effective on December 11,
197). You should sign and seal page 11 and have Mayor Harrison sign
where indicated, and date this page as of the date of the adoption of
the resolution.
Page 12 should be completed, signed, and sealed by you and signed
by Mayor Harrison. You should complete page 13 by inserting the
resolution number and sign, seal, and date as of the date of your
signature.
After you have completed the proceedings, please return four copies
to us for further distribution. Also enclosed are forms for the
signatures of Mayor Harrison and Joe Fakler. Please have them sign
several times where indicated and return these to us as soon as
possible, as they are used in bond printing.
If you have any questions, please don't hesitate to call me. Thank
you very much for your assistance.
Sincerely,
/7:-,,L7W67
Aar
Richard Burton
Financial Consultant
sts
Enclosures
cc: Roger Cutler, City Attorney
Municipal Financial Consultants
Investments,Tax Free Bonds
Experience Since 1899 11-2-4,?
Buirows, Smith and Company
Suite 1003 Kearns Building
Salt Lake City, Utah 84101
Telephone 328-1511
December 12, 1975
Roger Cutler
City Attorney
City-County Building
Salt Lake City, Utah 84111
Re: $169,000 Special Improvement District #426 of
Salt Lake City, Utah
Dear Roger:
Enclosed herewith is a copy of the bond sales proceedings prepared
by Roger McDonough. Please check it over carefully and if it does
not meet with your approval, call me so that we can work with Roger
McDonough in making the necessary changes.
We draw your attention to page 6 of the proceedings where a
reference is made to ordinance number 142. Please check to make
sure that this is the correct reference.
Thank you very much for your assistance.
Sincerely, •
Richard Burton
Financial Consultant
sts
Enclosures
cc: Mildred V. Higham