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City of Missoula, Montana Item to be Referred to City Council Committee Committee: A & F Item: Bond Resolution – $885,000 Curb, Sidewalk, Gutter and Alley Approach, Series 2010A Bonds Date: May Prepared by: Brentt Ramharter Initiated by: Brentt Ramharter Action Required: Approve bond resolution authorizing the issuance and public, competitive sale of $885,000 of Curb, Sidewalk, Gutter and Alley Approach, Series 2010A Bonds. Recommended Motion: I move the City Council approve the: RESOLUTION RELATING TO POOLED SPECIAL SIDEWALK, CURB, GUTTER AND ALLEY APPROACH BONDS, SERIES 2010A; AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF AND MAKING CERTAIN FINDINGS WITH RESPECT TO THE PLEDGE OF THE REVOLVING FUND OF THE CITY OF MISSOULA TO THE SECURITY THEREFOR. A public hearing needs to be set for the evening of the bond sale, June 14, 2010: Public Hearing Regarding Revolving Fund Pledge. The City Clerk is authorized and directed to publish notice of a public hearing concerning the pledge of the Revolving Fund to the payment of the Bonds in substantially the form of the attached EXHIBIT B (which is hereby incorporated herein and made a part thereof), which public hearing will be held Monday, June 14, 2010, at or after 7:00 p.m., M.T, in the City Council Chambers at Missoula City Hall located at 140 W. Pine Street, Missoula, Montana, at which all interested parties will be allowed to testify. The City Council will also consider all written comments submitted to the City Clerk prior to the public hearing or submitted to the City Council during the public hearing. Timeline: Referral to committee: May 7, 2010 Committee discussion: May 12, 2010 Deadline: Have council approve at May 17, 2010 meeting Background and Alternatives Explored: It is necessary that the Bonds be issued and sold in an original aggregate principal amount estimated not to exceed $885,000 to finance a portion of the costs of the Improvements, (ii) a deposit to the Revolving Fund of the City, and (iii) costs of issuance for the Bonds, including ---PAGE BREAK--- underwriter’s discount. The costs of the Improvements, including incidental costs, are currently estimated as follows: Construction of Improvements, including Capitalized Interest $787,772.93 Revolving Fund Deposit 44,250.00 Costs of Issuance, including Rounding Amount 40,587.07 Underwriter’s Discount 12,390.00 Total $885,000.00 The City is authorized by Montana Code Annotated, Section 7-12-4193, as amended, to issue and sell special sidewalk, curb, gutter and alley approach bonds, such as the Bonds, for more than one project in a single offering on a pooled basis upon a determination that such pooling is in the best interests of the City and the property owners whose property will be assessed for the Improvements. Section 2. Allocation of Proceeds to Various Projects. Bonds will be allocated to the following Projects in the respective principal amounts set forth below, with incidental costs allocated pro-rata thereto. EXHIBIT A to this Resolution (which is hereby incorporated herein and made a part thereof), contains a list of all the properties located in the Projects to be assessed for the costs of the Improvements. The assessments to be levied for the Projects shall not be less than $885,000. Project No. Project Name Principal Amount 07-040 Rattlesnake Drive – Pineview to Stanley $30,657.23 07-042 Johnson Street – 3rd to 11th and Grant Street 8th to 10th 77,549.79 07-044 Johnson Street – 14th to North 30,927.21 07-045 14th Street – Johnson to Eaton 118,899.61 08-004 Lolo Street – Missoula Avenue to Rattlesnake Drive 99,753.23 08-008 Stephens/McDonald Avenue Area 25,955.59 08-043 Slant Streets Area Phase II 177,795.03 09-037 Alley Paving 1500 Block Philips/Sherwood 762.43 09-001 Miscellaneous Parcels 322,699.88 Total $885,000.00 Financial Implications: ---PAGE BREAK--- No General Fund implications. These costs incurred will be assessed to the benefitted property owners over a period of time that rangers from 8 to 20 years, depending on the selection of the property owners. These bonds need to be issued in order to pay the city back for carrying the construction and interest costs associated with curb, gutter, sidewalk improvement projects identified above during last year's construction season. Attachments: Resolution Springsted Recommendations