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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Missoula, Montana (the “City”), certify that the attached resolution is a true copy of a Resolution entitled: “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” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a regular meeting on May 17, 2010, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following City Council members voted in favor thereof: Childers, Hellegaard, Hendrickson, Jaffe, Marler, Mitchell, Rye, Strohmaier, Walzer, Wiener and Wilkins voted against the same: none; abstained from voting thereon: none; or were absent: Haines WITNESS my hand officially this 17th day of May, 2010. Martha L. Rehbein Martha L. Rehbein, CMC City Clerk ---PAGE BREAK--- RESOLUTION NUMBER 7531 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 BE IT RESOLVED by the City Council (the “City Council”) of the City of Missoula, Montana (the “City”), as follows: Section 1. Recitals. The City is authorized pursuant to Montana Code Annotated, Section 7-14-4109, as amended (the “Act”), to order the construction of sidewalks, curbs or gutters in front of any lot or parcel of land and may order alley approaches constructed or replaced adjacent to any lot or parcel of land within the City. By initial orders (the “Orders”), the City Council has ordered certain sidewalk, curb, gutter and alley approach projects, as further discussed in Section 2 hereof (the “Projects”). The Orders were duly entered in the minutes of the City Council and set forth the names of the streets along which sidewalks, curbs or gutters are to be constructed or along which the alley approaches are to be constructed or replaced. As provided in the Orders and in accordance with the Act, written notice of the Orders was given to the owners or agents of owners of lots or parcels of land against which the costs of the proposed construction or reconstruction of sidewalks, curbs, gutters, or alley approaches (collectively, the “Improvements”) were to be assessed and of their option to cause the Improvements benefiting their property to be constructed. Subsequent to the expiration of the thirty (30) day-notice period in the Orders, the City determined which of the proposed Improvements have been or will be constructed by the owners of the adjacent property and which of the proposed Improvements will be constructed or financed by the City. The Improvements are located within the Projects as identified in Section 2 hereof. The total estimated costs of the Improvements to be constructed or which have been constructed by the City are $[885,000], which costs include incidental costs, a deposit to the City’s Special Improvement District Revolving Fund (the “Revolving Fund”), and costs of issuance for the Series 2010A Bonds (as defined herein). The City is authorized to pay the costs of the Improvements by the issuance of special sidewalk, curb, gutter and alley approach warrants or bonds drawn against a fund to be known as the Special Sidewalk, Curb, Gutter and Alley Approach Fund and to secure such bonds by the Revolving Fund created pursuant to Montana Code Annotated, Section 7-12-4221, as amended. The total costs of the Improvements are to be paid from the proceeds of Pooled Special Sidewalk, Curb, Gutter and Alley Approach Bonds, Series 2010A (the “Series 2010A Bonds”), to be issued by the City in an original aggregate amount not less than $885,000, and which Series 2010A Bonds are to be payable primarily from special assessments to be levied against property which will be specially benefited by the Improvements, on the basis described in each of the Orders. It is necessary that the Series 2010A 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, and (iii) costs of issuance for the Bonds, including underwriter’s discount. The costs of the Improvements to be paid by the Series 2010A Bonds, 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 ---PAGE BREAK--- 2 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 Series 2010A 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. Series 2010A Bond proceeds 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 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 Section 3. Determination of Public Interest in Allowing Bond Discount. The minimum price for the Series 2010A Bonds is $872,610 (98.6% of par), plus interest accrued thereon to the date of delivery. Such minimum bid will enable bidders to bid more efficiently for the Series 2010A Bonds by permitting them to submit their bids based on actual market conditions without adjusting the interest rates thereon to provide compensation for their purchase of the Series 2010A Bonds. This procedure will facilitate the sale of the Series 2010A Bonds at the lowest interest rates, which is in the best interests of the City and the property owners whose property will be assessed for the Improvements. Section 4. Method of Financing; Pledge of Revolving Fund; Findings and Determinations. This City Council further finds it is in the public interest, and in the best interests of the City and the Projects, to secure payment of principal of and interest on the Series 2010A Bonds by the Revolving Fund, and therefore authorizes the City to enter into the undertakings and agreements authorized in Montana Code Annotated, Section 7-12-4225, as amended, with respect to pledging the Revolving Fund as security for the Series 2010A Bonds. In determining to authorize such undertakings and agreements, this City Council has taken into consideration the following factors: Estimated Market Value of Parcels. The special assessments to be levied against each lot, tract or parcel for the Improvements, as a general matter, are insignificant in comparison to the estimated market value of such lot, tract or parcel located in the Projects after the Improvements are completed. ---PAGE BREAK--- 3 Diversity of Property Ownership. Most of the lots, tracts or parcels located in the Projects are under separate ownership. Given the diversity of ownership, it is unlikely that financial difficulties would arise that would require the City to extend a substantial loan to one property owner from the Revolving Fund. Comparison of Special Assessments, Property Taxes and Market Value. The estimated total principal amount of the assessments for the Improvements range from $174.45 to $30,760.62 on a per property basis. Given the amount of the proposed assessments for the Improvements, the amount of other special assessments and property taxes levied against the various parcels in the area of the Projects, the respective estimated market value of said parcels after the Improvements are completed, and the relation between the respective proposed assessments and the respective estimated market value of each parcel located in the Projects, if the City had to enforce assessment liens against the properties for the Improvements, there would be more than sufficient value in the properties to secure the obligations to the City. Delinquencies. The outstanding special assessment and property tax delinquency rates for properties located in the Projects are no greater than the delinquency rates of the City at large, and therefore, no unusual need for loans from the Revolving Fund are expected. Public Benefit of the Improvements. Based on current City subdivision and site development ordinances, and under City Council policies, the costs of installation of new curb, gutter, sidewalk, and alley approaches are to be borne by adjoining property owners. The availability of safe curbs, gutters, sidewalks and alley approaches has general benefit to the community at large as well as special benefit to the property owners to be assessed, and therefore, the use of the Revolving Fund to secure the Series 2010A Bonds is in the public interest. Section 5. 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 Series 2010A Bonds in substantially the form of the attached EXHIBIT B, 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 West 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. Section 6. Terms of the Series 2010A Bonds. This City Council authorizes the issuance and sale of the Series 2010A Bonds, to be referred to as the “Pooled Special Sidewalk, Curb, Gutter and Alley Approach Bonds, Series 2010A,” of the City in the estimated original aggregate principal amount of $[885,000], for the purposes of financing a portion of the costs of the Improvements, (ii) funding a deposit to the Revolving Fund, and (iii) paying the costs of issuance for the Series 2010A Bonds. The Series 2010A Bonds shall be dated, as originally issued, as of July 1, 2010, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing July 1, 2011, at a rate or rates designated by the successful bidder at public sale and approved by this City Council. The Series 2010A Bonds shall mature on July 1 in each of the following years and amounts (unless combined into one or more term bonds): ---PAGE BREAK--- 4 Year Principal Amount Year Principal Amount 2011 $85,000 2021 $20,000 2012 85,000 2022 20,000 2013 85,000 2023 20,000 2014 80,000 2024 20,000 2015 75,000 2025 20,000 2016 75,000 2026 20,000 2017 75,000 2027 20,000 2018 75,000 2028 20,000 2019 25,000 2029 20,000 2020 25,000 2030 20,000 Bidders will have the option of combining the Series 2010A Bonds into one or more term bonds. If any Series 2010A Bonds are issued as term bonds, such term bonds will be subject to annual mandatory sinking fund redemption on each July 1, concluding no later than 2030, at a redemption price equal to the principal amount of such Series 2010A Bonds or portions thereof to be redeemed with interest accrued thereon and payable on January 1 and July 1 to the mandatory redemption date, in installments and in the same amounts and same dates as the Series 2010A Bonds would have matured if they were not included in a term bond. The Series 2010A Bonds, whether issued as serial or term bonds, shall be in the denomination of $5,000 each or any integral multiple thereof of single maturities. The Series 2010A Bonds shall be issuable only as fully registered bonds and shall be executed by the manual or facsimile signatures of the Mayor, the City Finance Director/Treasurer, and the City Clerk. The Series 2010A Bonds shall be secured by the Revolving Fund and shall be issued in “book- entry” only form. Section 7. Public Sale. The Series 2010A Bonds shall be sold at a public competitive sale which is called for on June 14, 2010, at 11:00 a.m., M.T., in accordance with the terms and conditions attached hereto as EXHIBIT C, and, if a responsive and acceptable bid is received, award of the sale is to be made at a regular meeting of this City Council on June 14, 2010, at or after 7:00 p.m., M.T. The City will receive sealed or electronic bids for the Series 2010A Bonds in accordance with the notice of sale hereinafter prescribed. The City Clerk is authorized and directed to cause notice of the sale of the Series 2010A Bonds to be published, as required by Montana Code Annotated, Sections 7-12-4204, 7-7-4252 and 17-5-106, in the Missoulian, once each week for two consecutive weeks preceding the week which contains the date of sale of the Series 2010A Bonds. The notice of sale shall be published and mailed in substantially the form set forth as EXHIBIT C to this Resolution and this City Council adopts the terms and conditions set forth in such notice of sale as the terms and conditions of the sale of the Series 2010A Bonds. Section 8. Official Statement. The City Finance Director/Treasurer and other officers of the City, in cooperation with Springsted Incorporated, Saint Paul, Minnesota, financial consultants to the City, are authorized and directed to prepare on behalf of the City an official statement, and an addendum to such official statement (collectively, the “Official Statement”), to be distributed to potential purchasers of the Series 2010A Bonds. The Official Statement will contain the terms and conditions of sale of the Series 2010A Bonds set forth in the notice of sale adopted in Section 7 hereof and such other information as shall be advisable and necessary to describe accurately the City and the security for, and terms and conditions of, the Series 2010A Bonds. The Official Statement shall be deemed final by the City within the meaning of the Rule (as defined herein). ---PAGE BREAK--- 5 Section 9. Continuing Disclosure. Because the Series 2010A Bonds are being issued in an original aggregate principal amount of less than $1,000,000, the Series 2010A Bonds are exempt from the provisions of paragraph of Rule 15c2-12, promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Rule”). However, the City will covenant and agree, for the benefit of the registered holders and beneficial owners from time to time of the outstanding Series 2010A Bonds, in a Continuing Disclosure Undertaking, to comply with the provisions of the Rule and provide annual reports of specified information and notice of the occurrence of certain events, if material. The City is the only “obligated person” with respect of the Series 2010A Bonds within the meaning of the Rule for the purposes of disclosing information on an ongoing basis. The form of the Continuing Disclosure Undertaking is set forth in the Official Statement. Failure of the City to enter into an undertaking substantially similar to that described in the Official Statement would relieve the successful bidder of its obligation to purchase the Series 2010A Bonds. Passed by the City Council of the City of Missoula, Montana, this 17th day of May, 2010. John Engen John Engen Mayor Attest: Martha L. Rehbein Martha L. Rehbein, CMC City Clerk ---PAGE BREAK--- A-1 EXHIBIT A PROPERTIES TO BE ASSESSED ---PAGE BREAK--- SPRING 2010 Curb Assessments BOND ISSUE Exhbit A 2009 CONSTRUCTION FY 2010 LEVY GEOCODE TAXID (SUID) OWNER LONG_LEGAL TERM 220011401140000 190208 BAKER TRENT N MONTE VISTA-W1/2 OF LOT 1 BLK 2 8 220014111060000 5857392 HAMBORSKY JUSTIN & TRACT B COS 3038 NW4 NE4 14-13-19 8 220014111070000 2450507 MOORE PAUL M TRACT A COS 3038 IN NW4 NW4 NE4 14-13-19 8 220014110010000 1919300 PAUL & COS 3651 IN NW4 NE4 14-13-19 8 220029170160000 146301 LINNEMAN TRAVIS LOT 31 & 32 BLK 32 OF DALY'S ADDITION 29-13-19 8 220029156180000 1989809 SHARON A LOT 2A OF DALYS ADDITION NO. 41 8 220029188360000 2498503 TIPP RAYMOND P LOTS 15 & 16 OF DALYS ADDITIONBLK 29 S29 T13 R19 8 220020420110000 6001426 DONNA G LOWS-LOT 10 BLK 5 LESS HWY 8 220029171360000 175400 WILCOMB PROPERTIES LLC DALYS-S1/2 OF LOTS 13 THRU 16 BLK 33 8 220029171320000 175506 WILCOMB PROPERTIES LLC DALY-N1/2 OF LOTS 13 THRU 16 BLK 33 8 220020410010000 1460508 MONROE ETHEL MAE LOWS-LOTS 11 THRU 14 BLK 17 8 220020401010000 155208 SMIGAJ ZIG LOWS-W1/2 OF LOT 9, ALL OF 10 BLK 20 8 220020306130000 61704 WILLIAMS NATHAN L N70 FT OF LOTS 1 TO 3 OF LOWS ADDITION BLK 19 S20T13 R19 8 220029170200000 446304 PRATT ELIZABETH RISSLER LOTS 1 TO 4 BLK 32 IN DALY ADDITION 8 220020307010000 1098303 JOHNSON KIRK D LOTS 1 & 2 BLK 18 OF LOW'S S20 T13 R19 20 220029249290000 1734562 MARTINA RON G & ROBERT DALY-LOTS 1 & 2, E1/2 OF 3 BLK42 20 220020314050000 1223300 PARGE TODD K LOT 20A OF LOWS ADDITION BLK 6OF LOTS 19A & 20A S20 T13 R19 20 220020314060000 3934006 PARGE TODD LOT 19A OF LOWS ADDITION BLK 6 OF LOTS 19A AND 20A S20 T13 R19 20 220020410230000 1726503 SCHMITT MICHAEL JAMES LOT 10 IN BLK 17 OF LOW'S ADDITION 20-13-19 20 220020313130000 1688304 JUDITH E2 OF LOT 19 & ALL OF 20 IN LOWS ADDITION BLK 7 S20 T13 R19 20 220029471650000 371404 SHELLA J SOUTH SIDE ADD, S29, T13 N, R19 W, BLOCK 008, Lot 001, SSIDE LOTS 1 & 2 BLK 8 220029360170000 2119800 COOLEY PAUL NEAL SOUTH SIDE ADD, S29, T13 N, R19 W, BLOCK 007, Lot 007, PORTION OF LOTS 7 8 220029471010000 704201 ELIZABETH SOUTH SIDE ADD, S29, T13 N, R19 W, BLOCK 008, Lot 031, SSIDE LOT 30A OF 8 220029481650000 1858558 SHEILA M SOUTH SIDE ADD, S29, T13 N, R19 W, BLOCK 005, Lot 001, SSIDE LOTS 1 & 2 BLK 8 220029491480000 1901409 POHLMAN MATTHEW L SOUTH SIDE ADDITION BLK 2 LTS 1A,, S29, T13 N, R19 W, BLOCK 002, Lot 01A, 8 220029481010000 369501 GRESS BERNARD SOUTH SIDE ADD, S29, T13 N, R19 W, BLOCK 005, Lot 029, SSIDE LOTS 29 THRU 8 220029208120000 1704701 HANSEN TSONI J LOTS 30 TO 32 OF CAR LINE ADDITION NO 1 OF BLK 86 29-13-19 8 220029209010000 8955 SORENSON COLIN B LOT 17A OF CAR LINE ADDITION NO 85 S29 T13 T19 8 220029209020000 3722705 EDWARDS JEFFREY M LOT 18A BLK 85 CAR LINE ADDITION 8 220029209250000 1221255 KOHLER RONALD J LOTS 22 & 23 & W2 OF 24 OF DALYS ADDITION NO 2 BLK 85 S29 T13 R19 8 220029209290000 717500 JURASEK SHANE LOTS 27 & 28 OF DALYS ADDITIONNO 2 BLK 85 S29 T13 R19 8 220029209310000 1524209 TIPP RONALD F LOTS 31 & 32 OF DALYS ADDITIONNO 2 BLK 85 S29 T13 R19 8 220029210110000 2050609 RACHOR JOHN & SARAH LOTS 23 & 24 BLK 66 OF DALY'S ADDITION NO 2 8 220029210260000 2318104 WOHLIN SCOT G LOT 31A OF DALY'S ADDITION BLK66 OF LOTS 30A & 31A 29-13-19 8 220029202200000 685602 COHEN DORITA CARLINE #1-N1/2 OF LOTS 1 THRU3 BLK 87 8 220029203290000 1162201 PEHAN DANIEL E LOTS 9 & 10 BLK 88 OF DALY'S ADDITION NO 2 29-13-19 8 220029203310000 527403 DULL FLORA & DONALD A LOTS 7 & 8 BLK 88 OF DALY'S ADDITION NO 2 29-13-19 8 220029204210000 1990104 CLINE JOHN P W13'OF LOT 2 & ALL OF 3 & 4 OFDALY'S ADDITION BLK 67 29-13-19 8 220029204170000 1891605 TURBITT DAVID A LOTS 5 TO 7 OF DALY'S ADDITIONBLK 67 29-13-19 8 220029204250000 1989607 SANDERS STANLEY DEAN LOT 1 & E12'OF 2 OF DALY'S ADDITION BLK 67 29-13-19 8 220029203370000 1082200 HOOVER ARMEDA & GERALD LOTS 1 & 2 BLK 88 OF DALY'S ADDITION NO 2 8 220029208010000 281857 CARAS JAMES D LOTS 19 & 20 OF CAR LINE ADDITION NO 1 BLK 86 29-13-19 8 ---PAGE BREAK--- SPRING 2010 Curb Assessments BOND ISSUE Exhbit A 2009 CONSTRUCTION FY 2010 LEVY 220029210190000 499901 SHARKEY THOMAS J LOTS 27,28,29,BLK 66 OF DALYS 29-13-19 20 220029208150000 1550100 COMSTOCK CRAIG F S65'OF LOTS 33 TO 36 OF CAR LINE ADDITION NO 1 BLK 8629-13-19 20 220029202100000 3279007 NICKERSON BRENDA CARLINE #1 LOT 11 BLOCK 87 20 220029210150000 2473109 MYRUM DAVID S & TAMARA S LOTS 25 & 26 BLK 66 OF DALY'S ADDITION NO 2 29-13-19 20 220029209230000 1291952 GODINEZ DANIEL LOT 20A OF DALYS ADDITION NO 2BLK 85 OF LOTS 20A &20B S29 T13 R19 12 220029202090000 2446802 BLAZEVICH LESLIE M CARLINE #1-LOTS 7 TO 10 BLK 87 12 220014210110000 2189254 SIRR MICHAEL ALEXANDER LOTS 11 & 12 & E50' OF 13 & 14OF PARK ADDITION BLK24 & POR OF VAC ALLEY 20 220014213090000 1388301 MCDONALD CRAIG F LOTS 1 THRU 3 BLOCK 12 OF PARKADDITION 8 220014220030000 1715602 SMITH CHARLES A LOT 13A PARK ADDITION BLK 13 OF LOTS 13A & 17A 14-13-19 8 220014216010000 1409304 T & L PROPERTIES LLP LOT 1 OF PARK ADDITION BLK 6 LOT 13 THRU 17 8 220014314020000 454209 PETERSON JOSEPH S IN NW1/4 SW1/4 14-13-19 LESS .21 AC SOLD 8 220014211010000 968803 KUHNLE R DAVID JR PARK-LOTS 1 TO 3 BLK 25 PT VACALLEY 8 220014208130000 745956 TARR SANDI D PARK-W 70' OF LOTS 1 THRU 6 BLK 30 20 220014215180000 100607 GOLDBERG STUART PARK-W 70' OF LOTS 19 & 20, ALL OF 21 TO 24 OF BLK 7 & PT VAC ALLEY 14-13- 20 220014210010000 6906 MARTHA LEE PARK-W 60' OF LOTS 13 & 14 BLK24 20 220014216070000 1590357 KALEY CHRIS A & KAREN PARK-LOTS 11 & 12 BLK 6 20 220033302100000 358706 COLLINS MISSOULA APTS TRACT IN S2 NW4 8 220033302090000 1809808 A BITTERROOT HOMES #5-LOT 1 8 220033302060000 1810005 DAUGHERTY SPIKE O BITTERROOT HOMES #5-LOT 4 8 220033302050000 778928 VEAZEY J TRACT E COS 1234 IN SW4 8 220028110010000 744909 CROSS KEILA SOUTH MISSOULA-N 60' OF LOTS 13 & 14 BLK 28 8 220028110140000 651205 BEVERLY J SOUTH MISSOULA-LOTS 5 & 6 BLK 28 8 220028104020000 894001 TRUST SOUTH MISSOULA-FRAC OF LOTS 15THRU 17 BLK 48 TRACT B 8 220028104030000 2098365 SMITH FLORINE K SOUTH MISSOULA-LT 18, S 10' OF19 BLK 48 8 220028118160000 1320805 SWIFT SOUTH MISSOULA-S 58' W 10' OF LOT 10, S 58' OF 11 & 12 BLK 22 8 220028114050000 151806 BIESEMEYER BENTON C SOUTH MISSOULA-LOTS 19 & 20, S1/2 OF 21 BLK 23 8 220028114030000 909809 LARGAY JOHN F LOTS 15 & 16 IN SOUTH MISSOULAADDITION BLK 23 8 220028110040000 1691507 M SOUTH MISSOULA-LOT 17 & 18, S 10' OF 19 BLK 28 8 220028110150000 2190504 HOUCK DAVID L SOUTH MISSULA-LOTS 7 & 8 BLK 28 8 220028104040000 1699301 HINGLEY SALLY & NOEL SOUTH MISSOULA-N 20' OF LOT 19, ALL OF 20 & 21 BLK 48 8 220028122130000 1769403 TSAKARESTOS MARIA LOTS 9 & 10 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 8 220028122120000 1877905 DRUFFEL DENNIS P LOTS 7 & 8 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 8 220028122110000 1691805 PERINE BETH & LOTS 5 & 6 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 8 220028122100000 1434001 S LOTS 3 & 4 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 8 220028118150000 499956 CARAS WILLIAM R SOUTH MISSOULA-N 72' W 10' OF LOT 10, N 72' OF 11 & 12 BLK22 8 220028103060000 1522801 SPEALMAN I SOUTH MISSOULA-S1/2 OF LOT 5, ALL OF 6 & 7 BLK 51 8 220028103050000 347103 SNOW STEVEN M SOUTH MISSOULA-LOTS 3 & 4, NE1/2 OF 5 BLK 51 8 220028122040000 1891701 ERIN E LOT 18 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 8 220028110020000 1689806 FORD STREET LLC SOUTH MISSOULA-S 70' OF LOTS 13 & 14 BLK 28 8 220028118020000 2345203 M SOUTH MISSOULA-LOT 15, S1/2 OF16 BLK 22 8 220028103030000 665006 ZIMET STAN L SOUTH MISSOULA-NE1/2 OF LOT 23, ALL OF 24 BLK 51 8 220028104130000 2440002 SNYDER ANTES C & SOUTH MISSOULA-S 10' OF LOT 7,ALL OF 8 BLK 48 8 220028114100000 584250 FACEY THOMAS M SOUTH MISSOULA-LOTS 5 & 6 BLK 23 8 220028104150000 535808 BRUSKY JOSEPH MICHAEL PORTION OF LOT 10 IN SOUTH MISSOULA ADDITION BLK 48 8 220028104100000 2372606 ERMATINGER DANIEL L & LOT 3 & NE2 LOT 4 BLK 48 OF SOUTH MISSOULA 28-13-19 8 ---PAGE BREAK--- SPRING 2010 Curb Assessments BOND ISSUE Exhbit A 2009 CONSTRUCTION FY 2010 LEVY 220028118030000 288902 MILLAR ROGER M SOUTH MISSOULA-N1/2 OF LOT 16, ALL OF 17 BLK 22 8 220028104160000 1707909 REITER DIANE M LOT 12 & SW 10' OF LOT 11 BLK 48 OF SOUTH MISSOULA ADDITION 28-13-19 8 220028114120000 2342803 CALGER STEPHEN A SOUTH MISSOULA-LOTS 9 & 10 BLK23 8 220028114080000 390104 CAMPBELL COLIN S SOUTH MISSOULA-LOTS 1 & 2 BLK 23 20 220028118040000 1112302 FIELDING KATHERINE SOUTH MISSOULA-LOT 18, W1/2 OF19 BLK 22 20 220028104060000 1532306 JONES CATHERINE SOUTH MISSOULA-PT N1/2 OF LOTS23 & 24 BLK 48 PLAT 4-2 20 220028118140000 2085402 MALLORY J LOT 9 AND A PORTION OF LOT 10 BLK 22 OF SOUTH MISSOULA ADDITION 12 220028114090000 2070503 DENISE A SOUTH MISSOULA-LOTS 3 & 4 BLK 23 12 220028114010000 2032507 PATRICIA E N 65' OF LOTS 13 & 14 BLK 23 OF SOUTH MISSOULA 8 220028118070000 1606159 CHRISTENSEN NATALIE SOUTH MISSOULA-S 80' OF LOTS 23 & 24 BLK 22 8 220028106130000 629302 BURRESON DOUGLAS SOUTH MISSOULA-SW1/2 OF LOT 9,ALL OF 10 THRU 12 BLK 27 8 220028106010000 601604 ANGERT JENNIFER SOUTH MISSOULA-FRAC OF LOT 13,ALL OF LOT 14 BLK 27 28-12-19 8 220028122010000 2269902 MCCART KATHLEEN G LOT 13 & S2 OF 14 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 20 220028114020000 225204 WIMMER ERIKA L SOUTH MISSOULA S 65' OF LOTS 13 & 14 BLK 23 20 220028105010000 2099501 ELIZABETH C SOUTH MISS0ULA-FRAC OF LOTS 1 THRU 4 BLK 49 20 220028114070000 1289504 WAUGH ROBERT W SOUTH MISSOULA-LOTS 23 & 24 BLK 23 12 220028110080000 493409 BOHAN PAUL DAVID SOUTH MISSOULA-SE 70' OF LOTS 23 & 24 BLK 28 8 220016318040000 18105 LOTS 18 TO 20 OF SCHOOL ADDIITON BLK 73 16-13-19 20 220021319020000 1699109 LE PAINE LYNETTE S KNOWLES #2-LOTS 8 & 9 BLK 66 8 220021318050000 2238607 SVELMOE PAUL & NANCY KNOWLES #2-LOT 12 BLK 65 ADDRESS CHANGE PER NOTE 12/05 20 220027201070000 1587609 BIANCO GLORIA W50'OF E120' OF LOT 1 BLK 40 OF HAMMOND ADDITION NO 3 8 220028117100000 723907 SCHLATTER GERALD L SOUTH MISSOULA-N1/2 OF LOT 23, ALL OF 24 BLK 30 20 220028122090000 635103 FREDERIKSON KRISTA LOTS 1 & 2 BLK 21 OF SOUTH MISSOULA ADDITION 28-13-19 8 220016316010000 1251301 ANDERSON JEFFREY A LOTS 11 & 12 BLK 87 OF SCHOOL ADD CHNG PER MAIL RTRN 10/06 20 220016314010000 2010609 COOPER TIM LOTS 11 & 12 OF SCHOOL ADDITION BLK 55 16-13-19 ROUNTREE MADE PER 20 220016410010000 1391100 MEISSNER RONALD J SCHOOL-LOT 11 BLK 27 20 220016330100000 1935000 KOCH KEENY L W2 OF LOT 9 & ALL OF 10 BLK 80 IN SCHOOL ADDITION ADD CHG PER PO 12/06 20 220032252350000 2095705 RAMOS MARIA CARLINE #3-LOTS 47 & 48 BLK 46 ADD CHG FRM WT&E 11-20-00 KC 12 220032243150000 2183005 MATTHEWS TODD J PORTION OF LOT 11 IN CAR LINE ADDITION NO 1 BLK 38 20 220028137027012 4593912 LLC THE CORNER CONDOS UNIT 1.12 20 220028137027011 4593810 LLC THE CORNER CONDOS UNIT 1.11 20 220028137027010 4593708 LLC THE CORNER CONDOS UNIT 1.10 20 220028137027009 4593602 LLC THE CORNER CONDOS UNIT 1.9 20 220028137027008 4593508 LLC THE CORNER CONDOS UNIT 1.8 20 220028137027007 4593408 LLC THE CORNER CONDOS UNIT 1.7 20 220028137027001 4592802 LLC THE CORNER CONDOS UNIT 1.1 20 220028137027014 4594114 LLC THE CORNER CONDOS UNIT 1.14 20 220028137027005 4593110 LLC THE CORNER CONDOS UNIT 1.5 20 220028137027003 4593206 LLC THE CORNER CONDOS UNIT 1.3 20 220028137027002 4592908 LLC THE CORNER CONDOS UNIT 1.2 20 220028137027015 4594210 LLC THE CORNER CONDOS UNIT 1.15 20 220028137027004 4593004 LLC THE CORNER CONDOS UNIT 1.4 20 220028137027006 4593302 LLC THE CORNER CONDOS UNIT 1.6 20 220028137027302 4592504 LLC THE CORNER CONDOS UNIT 302 20 220028137027013 4594008 LLC THE CORNER CONDOS UNIT 1.13 20 ---PAGE BREAK--- SPRING 2010 Curb Assessments BOND ISSUE Exhbit A 2009 CONSTRUCTION FY 2010 LEVY 220028137027016 4594316 LLC THE CORNER CONDOS UNIT 1.16 20 220028137027304 4592706 LLC THE CORNER CONDOS UNIT 304 20 220028137027204 4592310 LLC THE CORNER CONDOS UNIT 204 20 220028137027203 4592204 LLC THE CORNER CONDOS UNIT 203 20 220028137027202 4592108 LLC THE CORNER CONDOS UNIT 202 20 220028137027018 4594508 LLC THE CORNER CONDOS UNIT 1.18 20 220028137027017 4594412 LLC THE CORNER CONDOS UNIT 1.17 20 220027334010000 1225900 SLAGEL B HAMMOND #5-LOTS 21 & 22 BLK 63 ADDRESS CHANGE PER TREASURERS 20 220016326110000 627100 SPARKS THOMAS LEONARD W2 OF LOT 7 & N90 FT OF LOTS 8 TO 10 IN SCHOOL ADDITION BLK 60 S16 T13 8 220027328010000 1411505 ADAMS JAMES D LOTS 21 & 22 BLK 70 HAMMOND #6 12 220032220750000 1367405 JAY DREAMS, LLC CARLINE #1-LOTS 18 TO 24 BLK 52 20 220028137017200 4591207 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 400 20 220028137017102 4590607 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 402 20 220028137017204 4591303 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 404 20 220028137017106 4590709 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 406 20 220028137017208 4591409 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 408 20 220028137017110 4590801 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 410 20 220028137017212 4591502 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 412 20 220028137017114 4590903 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 414 20 220028137017216 4591608 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 416 20 220028137017118 4591005 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 418 20 220028137017220 4591704 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 420 20 220028137017122 4591101 HEFTY ERIC UNIVERSITY FLATS CONDOS UNIT 422 20 220007311170000 3816009 CITY OF MISSOULA PLEASANT VIEW HOMES PHASE III, S07, T13 N, R19 W, BLOCK XXX, Lot XXX, 8 220028131160000 1215905 LAISY SCOTT W SOUTH MISSOULA-LOT 9, N 10' OF 10 BLK 12 12 220028115050000 194908 ELLIS CHARLES SOUTH MISSOULA-LOTS 21 & 22 BLK 54 12 220028115040000 1655409 DUNCAN JEAN C SOUTH MISSOULA-LOTS 19 & 20 BLK 54 8 ---PAGE BREAK--- B-1 EXHIBIT B NOTICE OF PUBLIC HEARING WITH RESPECT TO THE PLEDGE OF THE SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND OF THE CITY OF MISSOULA, MONTANA TO POOLED SPECIAL SIDEWALK, CURB, GUTTER AND ALLEY APPROACH BONDS, SERIES 2010A CITY OF MISSOULA, MONTANA NOTICE IS HEREBY GIVEN That on May 17, 2010, the City Council of the City of Missoula, Montana (the “City”), adopted a 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 (the “Resolution”). The City will issue its Pooled Special Sidewalk, Curb, Gutter and Alley Approach Bonds, Series 2010A (the “Series 2010A Bonds”), in an original aggregate principal amount estimated not to exceed $[885,000], in order to finance a portion of the costs of certain sidewalk, curb, gutter, and alley approach improvements throughout the City (the “Improvements”), (ii) fund a deposit to the Special Improvement District Revolving Fund of the City (the “Revolving Fund”), and (iii) pay certain costs associated with the issuance of the Series 2010A Bonds. Principal of and interest on the Series 2010A Bonds will be paid primarily from special assessments levied against the property located in the Projects, as identified in the Resolution. Subject to the limitations of Montana Code Annotated, Section 7-12-4222, the general fund of the City may be used to provide loans to the Revolving Fund or a general tax levy may be imposed on all taxable property in the City to meet the financial requirements of the Revolving Fund. Pursuant to the Resolution, the City Council found it to be in the public interest, and in the best interests of the City and the Projects, to secure payment of principal of and interest on the Series 2010A Bonds by the Revolving Fund, and authorized the City to enter into undertakings and agreements therefor with respect to the Revolving Fund and the Series 2010A Bonds. On Monday, June 14, 2010, at or after 7:00 p.m., in the City Council Chambers at Missoula City Hall, located at 140 West Pine Street, Missoula, Montana, the City Council will conduct a public hearing on the pledge of the Revolving Fund to the above-referenced Series 2010A Bonds. Further information regarding the Improvements, the Revolving Fund, the Series 2010A Bonds or other matters in respect thereof may be obtained from the City Clerk at City Hall, 435 Ryman Street, Missoula, Montana, or by telephone at (406) 552-6078. Dated: 2010. BY ORDER OF THE CITY COUNCIL OF THE CITY OF MISSOULA, MONTANA Marty Rehbein City Clerk Publish: 2010 2010 ---PAGE BREAK--- C-2 EXHIBIT C NOTICE OF BOND SALE $885,000 CITY OF MISSOULA, MONTANA POOLED SPECIAL SIDEWALK, CURB, GUTTER AND ALLEY APPROACH BONDS, SERIES 2010A NOTICE IS HEREBY GIVEN That the City of Missoula, Montana (the “City”), will sell to the best bidder for cash, as evidenced by sealed bids, the above-referenced bonds (the “Series 2010A Bonds”) drawn against the funds of the following special sidewalk, curb, gutter and alley approach projects (the “Projects” or the “Improvements”) in the City, plus incidental costs related to the Series 2010A Bonds, in the respective principal amounts set forth below: 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 Sealed bids for the purchase of the Series 2010A Bonds will be received at the office of the City Clerk of the City of Missoula, City Hall, 435 Ryman Street, Missoula, Montana, or bids for the purchase of the Series 2010A Bonds will be received by the City by electronic transmission through ParityTM, in either case until 11:00 a.m., M.T., on Monday, June 14, 2010. The bids will be opened (or accessed) and tabulated and the City Council of the City will meet on the same day in the City Council Chambers at Missoula City Hall located at 435 Ryman Street, Missoula, Montana, to consider the bids received and, if a responsive and acceptable bid is received, award the sale of the Series 2010A Bonds to the responsive bidder whose bid reflects the lowest true interest cost (TIC). Bids may be submitted by facsimile to the City Clerk at (406) 258-4904 or to Springsted Incorporated at (651) 223-3046 until 11:00 a.m., M.T., on Monday, June 14, 2010. Book Entry The Series 2010A Bonds will be issued by means of a book-entry system with no physical distribution of Series 2010A Bonds made to the public. The Series 2010A Bonds will be issued in fully registered form and one Series 2010A Bond, representing the aggregate principal amount of the Series 2010A Bonds maturing in each year, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company New York, New York, which will act as securities depository of the ---PAGE BREAK--- C-3 Series 2010A Bonds. Individual purchases of the Series 2010A Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity, through book entries made on the books and records of DTC and its participants. Principal and interest on the Series 2010A Bonds are payable by the registrar to DTC or its nominee as registered owner of the Series 2010A Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Series 2010A Bonds, will be required to deposit the Series 2010A Bonds with DTC. Purpose and Security The Series 2010A Bonds will be issued for the purpose of financing a portion of the cost of constructing curb, gutter, sidewalk and alley approach projects in certain areas of the City as part of the City’s Curb, Gutter, Sidewalk and Alley Approach Program in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 14, Part 41 and Title 7, Chapter 12, Parts 41 and 42, as amended (collectively, the “Act”). The Series 2010A Bonds will be special, limited obligations of the City and do not constitute general obligations of the City. The Series 2010A Bonds are payable primarily from the collection of a special tax or assessment which is a lien against the assessable real property benefited by the improvements to be undertaken therein or therefor. The special assessments are payable in equal, semiannual installments of principal over an eight year, twelve (12) year, or twenty (20) year term, as the case may be, with unpaid principal installments of the special assessments bearing interest at a rate equal, from time to time, to the sum of the average rate of interest borne by the then outstanding Series 2010A Bonds, plus (ii) one- half of one percent (0.50%) per annum. The Series 2010A Bonds are further secured by the Special Improvement District Revolving Fund of the City (the “Revolving Fund”). The City will agree to make a loan from the Revolving Fund to the Special Sidewalk, Curb, Gutter and Alley Approach Sinking Fund, Series 2010A (the “Sinking Fund”) to make good any deficiency then existing in the principal and interest accounts established for each of the Projects therein and to provide funds for the Revolving Fund by levying a tax or making a loan from the City’s general fund to the extent and for the period authorized by the Act. Date and Type The Series 2010A Bonds will be dated, as originally issued, as of July 1, 2010, and will be issued as negotiable investment securities in registered form as to both principal and interest. Maturities and Form The Series 2010A Bonds shall mature, subject to redemption, on July 1 in the following years and amounts (unless combined into one or more term bonds): Year Principal Amount Year Principal Amount 2011 $85,000 2021 $20,000 2012 85,000 2022 20,000 2013 85,000 2023 20,000 2014 80,000 2024 20,000 2015 75,000 2025 20,000 2016 75,000 2026 20,000 2017 75,000 2027 20,000 2018 75,000 2028 20,000 2019 25,000 2029 20,000 2020 25,000 2030 20,000 ---PAGE BREAK--- C-4 Bidders will have the option of combining the Series 2010A Bonds maturing from and after 2011 through and including 2030 into one or more term bonds. If any Series 2010A Bonds are issued as term bonds, such term bonds will be subject to annual mandatory sinking fund redemption on each July 1, concluding no later than 2030, at a redemption price equal to the principal amount of such Series 2010A Bonds or portions thereof to be redeemed with interest accrued thereon and payable on January 1 and July 1 to the redemption date, in installments and in the same amounts and same dates as the bonds would have matured if they were not included in a term bond. The Series 2010A Bonds shall be issued as serial or term bonds and shall be in the denomination of $5,000 each or any integral multiple thereof of single maturities. Redemption Mandatory Redemption. If on any interest payment date there will be a balance in the Sinking Fund after payment of the principal and interest due on all Series 2010A Bonds drawn against it, either from the prepayment of special assessments levied for the Improvements or from the transfer of surplus money from the Principal Subaccount created for each Project in the Sinking Fund, outstanding Series 2010A Bonds, or portions thereof, in an amount which, together with the interest thereon to the interest payment date, will equal the amount of such funds on deposit in the Sinking Fund on that date, are subject to mandatory redemption on that interest payment date. The redemption price shall equal the amount of the principal amount of the Series 2010A Bonds to be redeemed, plus interest accrued to the date of redemption. Optional Redemption. The Series 2010A Bonds are subject to redemption, in whole or in part, at the option of the City from sources of funds available therefor other than those described under “Mandatory Redemption” on the terms of this paragraph. The Series 2010A Bonds with stated maturities on or after July 1, 2021 will be subject to redemption on July 1, 2020, and any date thereafter, at the option of the City, in whole or in part, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date, without premium. Selection of Series 2010A Bonds for Redemption. If less than all of the Series 2010A Bonds are to be redeemed, Series 2010A Bonds shall be redeemed in order of the stated maturities thereof. If less than all Bonds of a stated maturity are to be redeemed, the Bonds of such maturity shall be selected for redemption in $5,000 principal amounts selected by the Registrar by lot or other manner it deems fair. Interest Payment Dates, Interest Rates Interest on the Series 2010A Bonds will be payable each January 1 and July 1, commencing January 1, 2011, to the registered owners of the Series 2010A Bonds as such appear in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. All Series 2010A Bonds of the same stated maturity must bear interest from the date of original issue until paid at a single, uniform rate, no rate of interest can be lower than the rate of an earlier maturity, the rate of interest must be expressed in an integral multiple of 1/8 or 5/100 of and no supplemental or coupons or additional interest certificates are permitted. Interest will be calculated for the Series 2010A Bonds on the basis of a 360-day year consisting of twelve 30-day months. Bond Registrar, Transfer Agent and Paying Agent U.S. Bank National Association of Seattle, Washington, will act as bond registrar, transfer agent and paying agent for the Series 2010A Bonds (the “Registrar”). The bond register will be kept, transfers of ownership will be effected and principal of and interest on the Series 2010A Bonds will be paid by the Registrar. The City will pay the charges of the Registrar for such services. The City reserves the right to remove the Registrar and to appoint a suitable successor. ---PAGE BREAK--- C-5 Delivery Within thirty (30) days after the sale of the Series 2010A Bonds, the City will deliver to the Registrar the printed Series 2010A Bonds ready for completion and authentication. The original purchaser of the Series 2010A Bonds must notify the Registrar, at least five business days before issuance of the Series 2010A Bonds, of the persons in whose names the Series 2010A Bonds will be initially registered and the denominations of the Series 2010A Bonds to be originally issued. If notification is not received by that date, the Series 2010A Bonds will be registered in the name of the original purchaser and, if serial bonds, will be issued in denominations corresponding to the principal maturities of the Series 2010A Bonds. On the day of closing, the City will furnish to the purchaser the opinion of Bond Counsel hereinafter described, a tax certification and a certificate stating that no litigation in any manner questioning the validity of the Series 2010A Bonds is then pending or, to the knowledge of officers of the City, threatened. Payment for the Series 2010A Bonds must be received by the City in immediately available funds at its designated depository on the day of closing. The successful bidder shall submit to the City Clerk not earlier than forty-eight (48) hours after the award of sale and not later than the day of closing a certificate, in form satisfactory to Bond Counsel, as to the initial reoffering price (issue price) of each stated maturity of the Series 2010A Bonds and stating that at least ten percent (10%) of the principal amount of such Series 2010A Bonds of each stated maturity has been sold at such respective prices. Qualified Tax-Exempt Obligations The Series 2010A Bonds will be designated by the City as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), and financial institutions described in Section 265(b)(5) of the Code may treat the Series 2010A Bonds for purposes of Sections 265(b)(2) and 291(e)(1)(B) of the Code as if they were acquired on August 7, 1986. Legal Opinion An opinion as to the validity of the Series 2010A Bonds and the exclusion of the interest thereon from gross income for federal income tax purposes and Montana individual income tax purposes will be furnished by Kennedy & Graven, Chartered, P.C., of Minneapolis and Saint Paul, Minnesota, as Bond Counsel, at the expense of the Purchaser. The legal opinion will state that the Series 2010A Bonds are valid and binding special, limited obligations of the City enforceable in accordance with their terms, except to the extent to which enforceability thereof may be limited by the exercise of judicial discretion or by state or federal laws relating to bankruptcy, reorganization, moratorium or creditors’ rights. Type of Bid and Good Faith Deposit Sealed or electronic bids for not less than $872,610 (98.6% of par) and accrued interest on the principal sum of $885,000 must be mailed or delivered to the undersigned and must be received at the office of the City Clerk prior to the time stated above. Bidders must bid for all or none of the Series 2010A Bonds. Each bid must be unconditional. Bids may be transmitted electronically through ParityTM , in accordance with these terms and conditions. Except for a bid by or on behalf of the Board of Investments of the State of Montana, a good faith deposit (the “Deposit”) in the form of money, cashier’s check, certified check, bank money order, or bank draft drawn and issued by a federally chartered or state chartered bank insured by the federal deposit insurance corporation or a financial surety bond in the sum of $17,700 payable to the order of the City is required for a bid to be considered. If money, cashier’s check, certified check, bank money order, or bank draft is used, it must accompany the bid and be delivered to the City Clerk. Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City’s agent according to the following instructions: Wells Fargo Bank, N.A., San Francisco, CA 94104 ---PAGE BREAK--- C-6 ABA #121000248 For credit to Springsted Incorporated, Account #[PHONE REDACTED] Contemporaneously with such wire transfer, the bidder shall send an e-mail to [EMAIL REDACTED], including the following information: indication that a wire transfer has been made; (ii) the amount of the wire transfer; (iii) the issue to which it applies; and (iv) the return wire instructions if such bidder is not awarded the Series 2010A Bonds. Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City following the award of the Series 2010A Bonds. Any Deposit made by check or wire transfer by an unsuccessful bidder will be returned to such bidder following City action relative to an award of the Series 2010A Bonds. If a financial surety bond is used, it must be from an insurance company licensed and qualified to issue such a bond in the State of Montana and pre-approved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The financial surety bond must identify each bidder whose Deposit is guaranteed by such financial surety bond. If the Series 2010A Bonds are awarded to a bidder utilizing a financial surety bond, then that purchaser is required to submit its Deposit to the City in the form of a certified or cashier’s check (or wire transfer as instructed by Springsted Incorporated) not later than 1:00 p.m., M.T., on the next business day following the award. If such Deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to the purchaser. The Deposit will be applied to the purchase price of the Series 2010A Bonds. In the event the purchaser fails to honor its accepted bid, the Deposit will be retained by the City as liquidated damages. The Deposit of the unsuccessful bidders will be returned immediately on award of the Series 2010A Bonds to the purchaser or after rejection of all bids. Instructions for wiring the Deposit may be obtained from Brentt Ramharter, City Finance Director/Treasurer, 435 Ryman Street, Missoula, Montana 59802, (406) 552-6078. Award The bid authorizing the lowest true interest cost (TIC), will be deemed the most favorable. The TIC is the effective cost of the Series 2010A Bonds based on bond proceeds received at closing calculated from the dated date of the Series 2010A Bonds. In the event that two or more bids state the lowest true interest cost, the sale of the Series 2010A Bonds will be awarded by lot. No oral bids will be considered. The City Council will consider sealed bids or bids transmitted electronically through the ParityTM system. The City reserves the rights to reject any and all bids, to waive informalities in any bid and to adjourn the sale. Electronic Transmission To the extent any instructions or directions set forth in Parity TM conflict with this Notice of Sale, the terms of this Notice of Sale shall control. For further information about ParityTM , potential bidders may contact the financial consultants to the City, Springsted Incorporated at (651) 223-3000 (Bond Services), or Parity TM at (212) 849-5000 (Client Services). In the event of a malfunction in the electronic bidding process, bidders may submit their bids by sealed bid including facsimile transmission to the City Clerk, Marty Rehbein, at facsimile number (406) 258-4896 (phone (406) 552-6078). CUSIP Numbers The City will assume no fee or obligation for the assignment or printing of CUSIP numbers on the Series 2010A Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the original purchaser, if the original purchaser waives any delay in delivery occasioned thereby. ---PAGE BREAK--- C-7 Official Statement The City will prepare an Official Statement relating to the Series 2010A Bonds which the City will deem, for purposes of SEC Rule 15c2-12, to be final as of its date. The City will deliver, at closing, a certificate executed by the Mayor, the City Clerk and the City Finance Director/Treasurer to the effect that, to the best of their knowledge, as of the date of closing, the information contained in the Official Statement, including any supplement or addendum thereto, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances in which they are made, not misleading; provided that no comment will be made with respect to any information provided by the successful bidder for inclusion in any supplement to the Official Statement. By submitting a bid for the Series 2010A Bonds, the successful bidder agrees: to disseminate to all members of the underwriting syndicate copies of the Official Statement, including any supplements prepared by the City, to file a copy of the Official Statement, including any supplement prepared by the City, with a nationally recognized municipal securities repository, and to take any and all other actions necessary to comply with applicable rules of the Securities and Exchange Commission and the Municipal Securities Rulemaking Board governing the offering, sale and delivery of the Series 2010A Bonds to ultimate purchasers. Within seven business days after the sale of the Series 2010A Bonds the City will furnish to the successful bidder, without charge, twenty-five (25) copies of the final Official Statement relating to the Series 2010A Bonds. The successful bidder must notify the City Finance Director/Treasurer in writing within five business days after the award of sale of the Series 2010A Bonds if it requires additional copies of the Official Statement. The cost of additional copies of the Official Statement shall be paid by the successful bidder. Continuing Disclosure Because the Series 2010A Bonds are being issued in an original aggregate principal amount of less than $1,000,000, the Bonds are exempt from the provisions of paragraph of Rule 15c2-12, promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Rule”). However, the City will covenant and agree, for the benefit of the registered holders and beneficial owners from time to time of the outstanding Series 2010A Bonds, in a Continuing Disclosure Undertaking, to comply with the provisions of the Rule and provide annual reports of specified information and notice of the occurrence of certain events, if material. The City is the only “obligated person” in respect of the Series 2010A Bonds within the meaning of the Rule for the purposes of disclosing information on an ongoing basis. The form of the Continuing Disclosure Undertaking is set forth in the Official Statement. Failure of the City to enter into an undertaking substantially similar to that described in the Official Statement would relieve the successful bidder of its obligation to purchase the Series 2010A Bonds. Information for bidders and bidding forms may be obtained from Marty Rehbein, City Clerk, 435 Ryman Street, Missoula, Montana 59801, telephone (406) 552-6078, or from Springsted Incorporated, St. Paul, Minnesota, telephone (651) 223-3000, financial consultants to the City. Dated: 2010 BY ORDER OF THE CITY COUNCIL OF THE CITY OF MISSOULA, MONTANA Martha L. Rehbein City Clerk ---PAGE BREAK--- C-8 Publish: 2010 2010 MS190-16 (BWJ) 367431v.1