HomeMy WebLinkAboutCouncil Workshop Packet 11.27.2018
AGENDA
CITY OF LAUREL
CITY COUNCIL WORKSHOP
TUESDAY, NOVEMBER 27, 2018
6:30 PM
COUNCIL CHAMBERS
Public Input: Citizens may address the Council regarding any item of City business that is not on tonight’s agenda. The
duration for an individual speaking under Public Input is limited to three minutes. While all comments are welcome, the
Council will not take action on any item not on the agenda. If a citizen would like to speak or comment regarding an item
that is on tonight’s agenda, we ask that you wait until the agenda item is presented to the Council by the Mayor and the
public is asked to comment by the Mayor. Once again, each speaker is limited to three minutes.
Be advised, if a discussion item has an upcoming public hearing, we would request members of the public to reserve your
comments until the public hearing. At the public hearing, the City Council will establish an official record that will inclu de
all of your comments, testimony and written evidence. The City Council will base its decision on the record created during
the public hearing. Any comments provided tonight will not be included in the record or considered by the City Council.
General Items
1. Airport Authority Appointment:
Mark Webb
Thomas Boyce
James Swensgard
2. Appointment of Mardie Spalinger to LURA
Executive Review
3. Resolution - Move January 1, 2019 meeting to January 2, 2019.
4. Arbor Day Proclamation 2019
5. Resolution - DNRC SED Basin Loan
6. Resolution - Variance Request: George Eastman
Council Issues
7. SED Basin Update
8. Discussion - Council Member Representation on Police Commission
9. Discussion - Update on Pintler/Centron
Other Items
Review of Draft Council Agendas
10. Draft Council Agenda 12.4.2018
Attendance at Upcoming Council Meeting
Announcements
The City makes reasonable accommodations for any known disability that may interfere with a person’s ability to
participate in this meeting. Persons needing accommodation must notify t he City Clerk’s Office to make needed
arrangements. To make your request known, please call 406-628-7431, Ext. 2, or write to City Clerk, PO Box 10,
Laurel, MT 59044, or present your request at City Hall, 115 West First Street, Laurel, Montana.
DATES TO REMEMBER
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Backup material for agenda item:
Airport Authority Appointment:
Mark Webb
Thomas Boyce
James Swensgard
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Backup material for agenda item:
Appointment of Mardie Spalinger to LURA
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Backup material for agenda item:
Resolution - Move January 1, 2019 meeting to January 2, 2019.
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R18-__: Move January 1st meeting to January 2nd
RESOLUTION NO. R18-__
A RESOLUTION OF THE CITY COUNCIL RESETTING THE JANUARY 1, 2019
COUNCIL MEETING TO JANUARY 2, 2019.
WHEREAS, workshop meetings of the Laurel City Council are scheduled for the
second and fourth Tuesdays of each month; and
WHEREAS, the City Council has the discretion to reset meetings due to conflicts
that arise pursuant to LMC 2.10.030; and
WHEREAS, the City Council has determined it is in the City’s best interest to
change the date of the workshop scheduled for January 1, 2019 to January 2, 2019.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Laurel, Montana, the workshop meeting of the City Council of the City of Laurel, Montana
currently scheduled for Tuesday, January 1, 2019 is hereby reset to Wednesday, January 2,
2019. Notice of the change shall be posted at City Hall and sent to the Laurel Outlook.
Introduced at a meeting of the City Council on December 4, 2018, by Council Member
_____________.
PASSED and ADOPTED by the City Council of the City of Laurel, Montana, this 4th day
of December 2018.
CITY OF LAUREL
______________________________
Thomas C. Nelson, Mayor
ATTEST:
_______________________________
Bethany Langve, Clerk-Treasurer
APPROVED AS TO FORM:
_______________________________
Sam Painter Civil City Attorney
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Backup material for agenda item:
Arbor Day Proclamation 2019
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Whereas, In 1872, J. Sterling Morton proposed to the Nebraska Board of
Agriculture that a special day be set aside for the planting of trees,
and
Whereas, this holiday, called Arbor Day, was first observed with the planting of more
than a million trees in Nebraska, and
Whereas, Arbor Day is now observed throughout the nation and the world, and
Whereas, trees can reduce the erosion of our precious topsoil by wind and
water, cut heating and cooling costs, moderate the temperature, clean the air,
produce life-giving oxygen, and provide habitat for wildlife, and
Whereas, trees are a renewable resource giving us paper, wood for our homes,
fuel for our fires and countless other wood products, and
Whereas, trees in our city increase property values, enhance the economic vitality of
business areas, and beautify our community, and
Whereas, trees, wherever they are planted, are a source of joy and spiritual
renewal.
Now, Therefore, I, , Mayor of the City of
, do hereby proclaim
, as
In the City of , and I urge all
citizens to celebrate Arbor Day and to support efforts to protect our
trees and woodlands, and
Further, I urge all citizens to plant trees to gladden the heart and promote the well-being
of this and future generations.
Dated this day of
Mayor
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Backup material for agenda item:
Resolution - DNRC SED Basin Loan
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DRAFT 11/15/2018
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Laurel, Montana (the “City”), hereby certify that the attached resolution is a true copy of
Resolution No. _________, entitled: “RESOLUTION RELATING TO $4,921,000 WATER
SYSTEM REVENUE BOND (DNRC DRINKING WATER STATE REVOLVING LOAN
PROGRAM), SERIES 2018; AUTHORIZING THE ISSUANCE AND FIXING THE TERMS
AND CONDITIONS THEREOF” (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
meeting on December 4, 2018, 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 Council Members voted in favor thereof:
; voted against the same:
; abstained from voting thereon: ; or
were absent: .
WITNESS my hand officially this _____ day of December, 2018.
____________________________________
City Clerk-Treasurer
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SUPPLEMENTAL RESOLUTION
Relating to
$4,921,000
WATER SYSTEM REVENUE BOND
(DNRC DRINKING WATER STATE REVOLVING LOAN PROGRAM),
SERIES 2018
CITY OF LAUREL, MONTANA
Adopted: December 4, 2018
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TABLE OF CONTENTS
(For convenience only, not a part of this Supplemental Resolution)
Page
RECITALS ......................................................................................................................... 1
ARTICLE I DEFINITIONS, RULES OF CONSTRUCTION AND APPENDICES .................. 2
Definitions....................................................................................................... 2 Section 1.1
Other Rules of Construction ........................................................................... 7 Section 1.2
Appendices ...................................................................................................... 7 Section 1.3
ARTICLE II AUTHORIZATION, FINDINGS, REPRESENTATIONS AND COVENANTS . 7
Authorization and Findings............................................................................. 7 Section 2.1
Representations ............................................................................................... 9 Section 2.2
Covenants ...................................................................................................... 11 Section 2.3
Covenants Relating to the Tax-Exempt Status of the State Bonds ............... 13 Section 2.4
Maintenance of System; Liens ...................................................................... 14 Section 2.5
Maintenance of Existence; Merger, Consolidation, Etc.; Disposition of Section 2.6
Assets ............................................................................................................ 15
ARTICLE III USE OF PROCEEDS; THE 2018 PROJECT ...................................................... 15
Use of Proceeds............................................................................................. 15 Section 3.1
The 2018 Project ........................................................................................... 16 Section 3.2
2018 Project Representations and Covenants ............................................... 17 Section 3.3
Completion or Cancellation or Reduction of Costs of the 2018 Project ....... 17 Section 3.4
ARTICLE IV THE 2018 LOAN................................................................................................. 18
The 2018 Loan; Disbursement of 2018 Loan ............................................... 18 Section 4.1
Commencement of Loan Term ..................................................................... 20 Section 4.2
Termination of Loan Term............................................................................ 20 Section 4.3
Loan Closing Submissions ............................................................................ 20 Section 4.4
ARTICLE V REPAYMENT OF 2018 LOAN ........................................................................... 20
Repayment of 2018 Loan .............................................................................. 20 Section 5.1
Additional Payments ..................................................................................... 21 Section 5.2
Prepayments .................................................................................................. 22 Section 5.3
Obligations of Borrower Unconditional ....................................................... 22 Section 5.4
Limited Liability ........................................................................................... 22 Section 5.5
ARTICLE VI INDEMNIFICATION OF DNRC AND DEQ .................................................... 22
ARTICLE VII ASSIGNMENT .................................................................................................. 23
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Assignment by Borrower .............................................................................. 23 Section 7.1
Assignment by DNRC .................................................................................. 23 Section 7.2
State Refunding Bonds ................................................................................. 23 Section 7.3
ARTICLE VIII THE SERIES 2018 BOND ............................................................................... 23
Net Revenues Available ................................................................................ 23 Section 8.1
Issuance and Sale of the Series 2018 Bond .................................................. 24 Section 8.2
Terms ............................................................................................................ 24 Section 8.3
Negotiability, Transfer and Registration....................................................... 24 Section 8.4
Execution and Delivery................................................................................. 24 Section 8.5
Form .............................................................................................................. 25 Section 8.6
ARTICLE IX SECURITY FOR THE SERIES 2018 BOND ..................................................... 25
ARTICLE X TAX MATTERS ................................................................................................... 25
Use of 2018 Project ....................................................................................... 25 Section 10.1
General Covenant.......................................................................................... 26 Section 10.2
Arbitrage Certification .................................................................................. 26 Section 10.3
Arbitrage Rebate Exemption......................................................................... 26 Section 10.4
Information Reporting .................................................................................. 26 Section 10.5
“Qualified Tax-Exempt Obligation.” ............................................................ 27 Section 10.6
ARTICLE XI CONTINUING DISCLOSURE ........................................................................... 27
ARTICLE XII MISCELLANEOUS ........................................................................................... 27
Notices .......................................................................................................... 27 Section 12.1
Binding Effect ............................................................................................... 28 Section 12.2
Severability ................................................................................................... 28 Section 12.3
Amendments ................................................................................................. 28 Section 12.4
Applicable Law ............................................................................................. 28 Section 12.5
Captions; References to Sections .................................................................. 28 Section 12.6
No Liability of Individual Officers, Directors or Trustees ........................... 28 Section 12.7
Payments Due on Holidays ........................................................................... 29 Section 12.8
Right of Others To Perform Borrower’s Covenants ..................................... 29 Section 12.9
Authentication of Transcript ......................................................................... 29 Section 12.10
Effective Date ............................................................................................... 29 Section 12.11
APPENDIX A – Description of the 2018 Project ....................................................................... A-1
APPENDIX B – Form of Series 2018 Bond ................................................................................B-1
APPENDIX C – Additional Representations and Covenants ......................................................C-1
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RESOLUTION NO.
RESOLUTION RELATING TO $4,921,000 WATER SYSTEM
REVENUE BOND (DNRC DRINKING WATER STATE
REVOLVING LOAN PROGRAM), SERIES 2018;
AUTHORIZING THE ISSUANCE AND FIXING THE TERMS
AND CONDITIONS THEREOF
WHEREAS, pursuant to the Drinking Water State Revolving Fund Act, Montana Code
Annotated, Title 75, Chapter 6, Part 2, as amended (the “Act”), the State of Montana (the
“State”) has established a revolving loan program (the “Program”) to be administered by the
Department of Natural Resources and Conservation of the State of Montana, an agency of the
State (the “DNRC”), and by the Department of Environmental Quality of the State of Montana,
an agency of the State (the “DEQ”), and has provided that a drinking water state revolving fund
(the “Revolving Fund”) be created within the state treasury and all federal, state and other funds
for use in the Program be deposited into the Revolving Fund, including, but not limited to, all
federal grants for capitalization of a state drinking water revolving fund under the federal Safe
Drinking Water Act (the “Safe Drinking Water Act”), all repayments of assistance awarded from
the Revolving Fund, interest on investments made on money in the Revolving Fund and
payments of principal of and interest on loans made from the Revolving Fund; and
WHEREAS, the Act provides that funds from the Program shall be disbursed and
administered for the purposes set forth in the Safe Drinking Water Act and according to rules
adopted by the DEQ and the DNRC; and
WHEREAS, the City of Laurel, Yellowstone County, Montana (the “Borrower”) has
applied to the DNRC for the 2018 Loan (as hereinafter defined) from the Revolving Fund to
enable the Borrower to finance, refinance or reimburse itself for a portion of the costs of the
2018 Project (as hereinafter defined) which will carry out the purposes of the Safe Drinking
Water Act; and
WHEREAS, the Borrower is authorized under the Original Resolution (as hereinafter
defined), applicable laws, ordinances and regulations to adopt this Supplemental Resolution and
to issue the Series 2018 Bond (as hereinafter defined) to evidence the 2018 Loan (as hereinafter
defined) for the purposes set forth herein; and
WHEREAS, the DNRC will fund the 2018 Loan (as hereinafter defined) entirely with
Recycled Money (as hereinafter defined).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LAUREL, MONTANA, AS FOLLOWS:
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ARTICLE I
DEFINITIONS, RULES OF CONSTRUCTION AND APPENDICES
Definitions. Unless a different meaning clearly appears from the context, Section 1.1
terms used with initial capital letters but undefined in this Supplemental Resolution shall have
the meanings given them in the Original Resolution, the Indenture, or as follows:
“Accountant” or “Accountants” means an independent certified public accountant or a
firm of independent certified public accountants satisfactory to the DNRC.
“Act” means Montana Code Annotated, Title 75, Part 6, Chapter 2, as amended from
time to time.
“Administrative Expense Surcharge” means a surcharge on the 2018 Loan charged by the
DNRC to the Borrower equal to twenty-five hundredths of one percent (0.25%) per annum on
the outstanding principal amount of the 2018 Loan, payable by the Borrower on the same dates
that payments of interest on the 2018 Loan are due.
“Authorized DNRC Officer” means the Director of the DNRC or his or her designee.
“Bond Counsel” means any Counsel acceptable to the DNRC which is nationally
recognized as bond counsel. Counsel is nationally recognized as bond counsel if it has rendered
a legal opinion as to the validity and enforceability of state or municipal bonds and as to the
exclusion of interest thereon from gross income for federal income tax purposes (short-term
issues excluded) during the two-year period preceding the date of determination.
“Bond Register” means, with respect to the Series 2018 Bond, the registration books
maintained by the Registrar pursuant to Section 8.4 of this Supplemental Resolution.
“Bonds” means the Series 2003 Bond, the Series 2009A Bond, the Series 2009C Bond,
the Series 2016 Bond, the Series 2018 Bond, and any Water Debt issued pursuant to Article VIII
of the Original Resolution, as amended, excluding Section 8.4 of the Original Resolution, as
amended.
“Borrower” means the City.
“Business Day” means any day which is not a Saturday or Sunday and is not a day on
which banks in Montana are authorized or required by law to close.
“City” means the City of Laurel, Montana, or any permitted successor or assign.
“Closing” means the date of delivery of the Series 2018 Bond to the DNRC.
“Code” means the Internal Revenue Code of 1986, as amended.
“Collateral Documents” means any security agreement, guaranty or other document or
agreement delivered to the DNRC securing the obligations of the Borrower under this
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Supplemental Resolution and the Series 2018 Bond. If no Collateral Documents secure such
obligations, any reference to Collateral Documents in this Supplemental Resolution shall be
without effect.
“Committed Amount” means the amount of the 2018 Loan committed to be lent by the
DNRC to the Borrower pursuant to Section 4.1 of this Supplemental Resolution, as such amount
may be reduced pursuant to Sections 3.2 and 3.4 of this Supplemental Resolution.
“Consultant” means a nationally recognized consultant or firm of consultants, or an
independent engineer or firm of independent engineers, or an Accountant, which in any case is
qualified and has skill and experience in the preparation of financial feasibility studies or
projections for facilities similar to the System or the 2018 Project, selected by the Borrower and
satisfactory to the DNRC.
“Council” means the City Council of the Borrower.
“Counsel” means an attorney duly admitted to practice law before the highest court of
any state and satisfactory to the DNRC.
“Debt” means, without duplication, (1) indebtedness of the Borrower for borrowed
money or for the deferred purchase price of property or services; (2) the obligation of the
Borrower as lessee under leases which should be recorded as capital leases under generally
accepted accounting principles; and (3) obligations of the Borrower under direct or indirect
guarantees in respect of, and obligations (contingent or otherwise) to purchase or otherwise
acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of
others of the kinds referred to in clause (1) or (2) above.
“Debt Service Account” means the account created in the Water System Fund pursuant to
Section 9.5 of the Original Resolution.
“DEQ” means the Department of Environmental Quality of the State of Montana, an
agency of the State, or any successor to its powers, duties and obligations under the Act or the
EPA Agreements.
“DNRC” means the Department of Natural Resources and Conservation of the State of
Montana, an agency of the State, and any successor to its powers, duties and obligations under
the Act.
“Enabling Act” means Montana Code Annotated, Title 7, Chapter 7, Part 44, as amended,
which authorizes the Borrower to own and operate the System, to undertake the 2018 Project and
to issue the Series 2018 Bond to finance all or a portion of the costs of the 2018 Project.
“EPA” means the Environmental Protection Agency, an agency of the United States of
America, and any successor to its functions under the Safe Drinking Water Act.
“EPA Agreements” means all capitalization grant agreements and other written
agreements between the DEQ, the DNRC and the EPA concerning the Program.
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“EPA Capitalization Grant” means a grant of funds to the State by the EPA under Section
1452 of the Safe Drinking Water Act.
“Estimated Completion Date” means [____________], 20__ the date by which it is
estimated by the Borrower that the 2018 Project will be substantially completed.
“Fund” means the Water System Fund established pursuant to Section 9.1 of the Original
Resolution.
“Governmental Unit” means governmental unit as such term is used in Section 145(a) of
the Code.
“Indenture” means the Indenture of Trust, dated as of May 1, 1998, between the Board of
Examiners of the State and the Trustee, as such may be supplemented or amended from time to
time in accordance with the provisions thereof, pursuant to which, among other things, the State
Bonds are to be or have been issued.
“Johnson Controls Loan” means the Subordinate Obligation issued to finance certain
improvements to the System, as described in Resolution R06-44 of the City, adopted on May 2,
2006. [still outstanding?]
“Loan Loss Reserve Surcharge” means a surcharge equal to twenty-five hundredths of
one percent (0.25%) per annum on the outstanding principal amount of the 2018 Loan, payable
on the same dates that payments of interest on the 2018 Loan are due.
“Loan Repayments” means periodic installments of principal and interest by Borrower in
repayment of the Series 2018 Bond, at the rate and times specified in Article V of this
Supplemental Resolution.
“Operating Account” means the account created in the Water System Fund pursuant to
Section 9.4 of the Original Resolution.
“Opinion of Counsel” means a written opinion of Counsel.
“Original Resolution” means Resolution No. R97-48 of the City adopted on September 4,
1997.
“Person” means any Private Person or Public Entity.
“Private Person” means an individual, corporation, partnership, association, joint venture,
joint stock company or unincorporated organization, except a Public Entity.
“Payment Date” means, with respect of the 2018 Loan, each January 1 and July 1 during
the term of the 2018 Loan on which a payment of interest or principal and interest is due, as
determined under this Supplemental Resolution.
“Program” means the Drinking Water State Revolving Fund Program established by the
Act.
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“Project” means the costs of designing, engineering, acquiring, constructing, installing,
improving, or enlarging the System, or any part thereof, financed, refinanced or the cost of which
is being reimbursed to the Borrower in whole or in part with proceeds of the Bonds or other
funds of the Borrower, including the 2018 Project.
“Public Entity” means a municipality, city, county, school district, political or
administrative subdivision of State government, irrigation district, drainage district or other
public body established by State law.
“Recycled Money” means payments and prepayments of any Program loan, and any
other amounts transferred to the Principal Subaccount in the Revenue Subaccount of the State
Allocation Account.
“Registrar” has the meaning set forth in Section 8.4 of this Supplemental Resolution.
“Regulations” means the Treasury Department, Income Tax Regulations, as amended or
any successor regulation thereto, promulgated under the Code or otherwise applicable to the
Series 2018 Bond.
“Repair and Replacement Account” means the Account created in the Water System
Fund pursuant to Section 9.6 of the Original Resolution.
“Reserve Account” means the account created in the Water System Fund pursuant to
Section 9.3 of the Original Resolution.
“Reserve Requirement” means, as of the date of calculation, an amount equal to one-half
the sum of the highest cumulative amount of principal of and interest payable on all outstanding
Bonds in any one future fiscal year (giving effect to mandatory sinking fund redemption, if any).
“Resolution” means the Original Resolution, as amended and supplemented by
Resolution Nos. R98-47, R03-47, R09-10, R09-124, R10-19, R10-124, R12-95 and R16-48,
adopted by the City Council on August 18, 1998, March 18, 2003, January 20, 2009, November
3, 2009, February 16, 2010, November 20, 2012 and July 5, 2016, respectively, as further
amended and supplemented by this Supplemental Resolution and as it may be further amended
and supplemented in accordance with its terms.
“Safe Drinking Water Act” means Title XIV of the Public Health Service Act, commonly
known as the Safe Drinking Water Act, 42 U.S.C. §§300f et seq., as amended, and all
regulations, rules and interpretations issued by the EPA thereunder.
“Series 2003 Bond” means the First Amended and Restated Water System Revenue Bond
(DNRC Revolving Loan Program), Series 2003, issued by the City in the original principal
amount of up to $2,541,000 pursuant to the Resolution as then in effect.
“Series 2009A Bond” means the Water System Revenue Bond (DNRC Drinking Water
State Revolving Loan Program), Series 2009A, issued by the City in the original principal
amount of up to $500,000 pursuant to the Resolution as then in effect.
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“Series 2009C Bond” means the Water System Revenue Bond (DNRC Drinking Water
State Revolving Loan Program), Series 2009C, issued by the City in the original principal
amount of up to $500,000 pursuant to the Resolution as then in effect.
“Series 2016 Bond” means the Water System Revenue Bond (DNRC Drinking Water
State Revolving Loan Program), Series 2016, issued by the City in the original principal amount
of up to $1,700,000 pursuant to the Resolution as then in effect.
“Series 2018 Bond” means the $4,921,000 Water System Revenue Bond (DNRC
Drinking Water State Revolving Loan Program), Series 2018, issued to the DNRC to evidence
the 2018 Loan.
“State” means the State of Montana.
“State Bonds” means the State’s General Obligation Bonds (Drinking Water State
Revolving Fund Program), issued or to be issued pursuant to the Indenture.
“Subordinate Obligations” means any subordinate obligations issued under Section 8.4 of
the Original Resolution
“Supplemental Resolution” means this Resolution No. __________ of the Borrower
adopted on December 4, 2018.
“Surplus Account” means the account created in the Water System Fund pursuant to
Section 9.7 of the Original Resolution.
“Surplus Net Revenues” means that portion of the Net Revenues in excess of the current
requirements of the Operating Account, the Debt Service Account and the Reserve Account.
“System” means the water system of the Borrower and all extensions, improvements and
betterments thereof hereafter constructed and acquired, including, without limitation, the 2018
Project.
“Trustee” means U.S. Bank National Association, in Seattle, Washington, or any
successor trustee under the Indenture.
“2018 Committed Amount” means the amount of the 2018 Loan committed to be lent by
the DNRC to the Borrower pursuant to Section 4.1 of this Supplemental Resolution, as such
amount may be reduced pursuant to Section 3.2 and Section 3.4 of this Supplemental Resolution.
“2018 Loan” or “Loan” means the loan made to the Borrower by the DNRC pursuant to
the Program in the maximum amount of the 2018 Committed Amount to provide funds to pay a
portion of the costs of the 2018 Project.
“2018 Project” means the designing, engineering, and construction of the facilities,
improvements and activities financed, refinanced or the cost of which is being financed by or
reimbursed to the Borrower in part with proceeds of the 2018 Loan, described in Appendix A
hereto.
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“Water Debt” means all Bonds and any other Debt incurred to acquire, construct, extend,
improve, add to or otherwise pay expenses of or related to the System, without regard to the
source of payment and security for such Debt (i.e., without regard to whether it is general
obligation or revenue Debt), including the Johnson Controls Loan.
“Water System Fund” means the fund created by Section 9.1 of the Original Resolution.
Other Rules of Construction. For all purposes of this Supplemental Section 1.2
Resolution, except where the context clearly indicates otherwise:
(a) All accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted government accounting standards.
(b) Terms in the singular include the plural and vice versa.
(c) All references to time shall refer to Helena, Montana time, unless otherwise provided
herein.
(d) All references to mail shall refer to first-class mail postage prepaid.
(e) Words of the masculine gender shall be deemed and construed to include correlative
words of the feminine and neuter genders.
(f) “Or” is not exclusive, but is intended to permit or encompass one, more or all of the
alternatives conjoined.
Appendices. Attached to this Supplemental Resolution and hereby made a Section 1.3
part hereof are the following Appendices:
Appendix A: a description of the 2018 Project;
Appendix B: the form of the Series 2018 Bond; and
Appendix C: additional agreements and representations of the Borrower.
ARTICLE II
AUTHORIZATION, FINDINGS, REPRESENTATIONS AND COVENANTS
Authorization and Findings. Section 2.1
(a) Authorization. Under the provisions of the Enabling Act, the Borrower is authorized
to issue and sell its revenue bonds payable during a term not exceeding forty years from their
date of issue, to provide funds for the reconstruction, improvement, betterment and extension of
a municipal water system or to refund revenue bonds issued for such purpose; provided that the
bonds and the interest thereon are to be payable solely out of the net income and revenues to be
derived from rates, fees and charges for the services, facilities and commodities furnished by
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such water system, and are not to create any obligation for the payment of which taxes may be
levied except to pay for services provided by the water system to the Borrower.
(b) The System. The Borrower, pursuant to the Enabling Act and other laws of the State,
has established and presently owns and operates the System.
(c) The 2018 Project. After investigation of the facts and as authorized by the Enabling
Act, this Council has determined it to be necessary and desirable and in the best interests of the
Borrower to undertake the 2018 Project.
(d) Outstanding Bonds. Pursuant to the Enabling Act and the Resolution, the Borrower
has issued its Series 2003 Bond, the Series 2009A Bond, the Series 2009C Bond, and the Series
2016 Bond to finance or refinance improvements to the System. The Series 2003 Bond, the
Series 2009A Bond, the Series 2009C Bond, and the Series 2016 Bond are parity Bonds payable
from and secured by Net Revenues of the System. No other bonds or indebtedness are currently
outstanding that are payable from revenues of the System, except the outstanding Johnson
Controls Loan, which is payable from Surplus Net Revenues.
(e) Additional Parity Bonds. The Borrower reserved the right under Section 8.2 of the
Original Resolution, as amended, to issue additional Bonds payable from the Debt Service
Account of the Fund on a parity as to both principal and interest with the outstanding Bonds, if
the Net Revenues of the System for the last complete fiscal year preceding the date of issuance
of such additional Bonds have equaled at least 110% of the maximum amount of principal and
interest payable from the Debt Service Account in any subsequent fiscal year during the term of
the outstanding Bonds, on all Bonds then outstanding and on the additional Bonds proposed to be
issued. For the purpose of the foregoing computation, the Net Revenues for the fiscal year
preceding the issuance of the additional Bonds shall be those shown by the financial reports
caused to be prepared by the Borrower pursuant to Section 2.2(e) of the Original Resolution, as
amended, except that if the rates and charges for services provided by the System or finally
authorized to go into effect within 60 days after the issuance of the additional Bonds have been
changed since the beginning of such preceding fiscal year, then the rates and charges in effect at
the time of issuance of the additional Bonds shall be applied to the quantities of service actually
rendered and made available during such preceding fiscal year to ascertain the gross revenues,
from which there shall be deducted to determine the Net Revenues, the actual operation and
maintenance cost plus any additional annual costs of operation and maintenance the Consultant
estimates will be incurred because of the improvement or extension of the System to be
constructed from the proceeds of the additional Bonds proposed to be issued. In no event shall
any additional Bonds be issued and made payable from the Debt Service Account if the
Borrower is then in default in any payment of principal of or interest on any outstanding Bonds
payable therefrom, or if there then exists any deficiency in the balances required by the Original
Resolution to be maintained in any of the accounts of the Fund, which will not be cured or
restored upon the issuance of the additional Bonds. It is hereby determined that the Borrower is
authorized to issue $4,921,000 in aggregate principal amount of additional Bonds pursuant to
Section 8.2 of the Original Resolution, as amended, payable from and secured by the Net
Revenues on a parity with the outstanding Series 2003 Bond, the Series 2009A Bond, the Series
2009C Bond and the Series 2016 Bond. In calculating the adequacy of Net Revenues for such
certificate, the Johnson Controls Loan is disregarded as it is a Subordinate Obligation.
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Representations. The Borrower represents as follows: Section 2.2
(a) Organization and Authority. The Borrower:
(1) is duly organized and validly existing as a municipal corporation and political
subdivision of the State;
(2) has all requisite power and authority and all necessary licenses and permits
required as of the date hereof to own and operate the System and to carry on its current
activities with respect to the System, to adopt this Supplemental Resolution and to enter
into the Collateral Documents and to issue the Series 2018 Bond and to carry out and
consummate all transactions contemplated by the Supplemental Resolution, the Series
2018 Bond and the Collateral Documents;
(3) is a Governmental Unit and a Public Entity; and
(4) has taken all proper action to authorize the execution, delivery and
performance of its obligations under this Supplemental Resolution, the Series 2018 Bond
and the Collateral Documents and the incurrence of the Debt evidenced by the Series
2018 Bond in the maximum amount of the Committed Amount.
(b) Litigation. There is no litigation or proceeding pending, or to the knowledge of the
Borrower threatened, against or affecting the Borrower in any court or before or by any
governmental authority or arbitration board or tribunal that, if adversely determined, would
materially and adversely affect the existence, corporate or otherwise, of the Borrower, or the
ability of the Borrower to make all payments and otherwise perform its obligations under the
Resolution, the Series 2018 Bond and the Collateral Documents, or the financial condition of the
Borrower, or the transactions contemplated by the Resolution, the Series 2018 Bond and the
Collateral Documents or the validity and enforceability of the Resolution, the Series 2018 Bond
and the Collateral Documents. No referendum petition has been filed with respect to any
resolution or other action of the Borrower relating to the 2018 Project, the Series 2018 Bond or
any Collateral Documents and the period for filing any such petition will have expired before
issuance of the Series 2018 Bond.
(c) Borrowing Legal and Authorized. The adoption of this Supplemental Resolution, the
execution and delivery of the Series 2018 Bond and the Collateral Documents and the
consummation of the transactions provided for in this Supplemental Resolution, the Series 2018
Bond and the Collateral Documents and compliance by the Borrower with the provisions of the
Resolution, the Series 2018 Bond and the Collateral Documents:
(1) are within the powers of the Borrower and have been duly authorized by all
necessary action on the part of the Borrower; and
(2) do not and will not result in any breach of any of the terms, conditions or
provisions of, or constitute a default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Borrower pursuant to any
ordinance, resolution, indenture, loan agreement or other agreement or instrument (other
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than the Resolution and any Collateral Documents) to which the Borrower is a party or
by which the Borrower or its property may be bound, nor will such action result in any
violation of the provisions of any charter or similar document, if applicable, any laws,
ordinances, governmental rules or regulations or court or other governmental orders to
which the Borrower, its properties or operations are subject.
(d) No Defaults. No event has occurred and no condition exists that, upon execution and
delivery of the Series 2018 Bond and the Collateral Documents, would constitute a default under
the Resolution or the Collateral Documents. The Borrower is not in violation of any term of any
agreement, bond resolution, trust indenture, charter or other instrument to which it is a party or
by which it or its property may be bound which violation would materially and adversely affect
the transactions contemplated hereby or the compliance by the Borrower with the terms hereof or
of the Series 2018 Bond and the Collateral Documents.
(e) Governmental Consent. The Borrower has obtained or made all permits, findings and
approvals required to the date of adoption of this Supplemental Resolution by any governmental
body or officer for the making and performance by the Borrower of its obligations under this
Supplemental Resolution, the Series 2018 Bond and the Collateral Documents (including any
necessary water rate increase) or for the 2018 Project, the financing or refinancing thereof or the
reimbursement of the Borrower for the costs thereof. No consent, approval or authorization of,
or filing, registration or qualification with, any governmental authority (other than those, if an y,
already obtained) is required on the part of the Borrower as a condition to adopting this
Supplemental Resolution, issuing the Series 2018 Bond or entering into the Collateral
Documents and the performance of the Borrower’s obligations hereunder and thereunder.
(f) Binding Obligation. The Resolution, the Series 2018 Bond and any Collateral
Document to which the Borrower is a party are the valid and binding special, limited obligations
and agreements of the Borrower, enforceable against the Borrower in accordance with their
terms, except to the extent that the enforceability thereof may be limited by laws relating to
bankruptcy, moratorium, reorganization, insolvency or similar laws affecting creditors’ rights
and general principles of equity.
(g) The System. The System is a “community water system” within the meaning of the
Act and the Safe Drinking Water Act in that it is a public water system, comprising collection,
treatment, storage and distribution facilities for the provision to the public of water for human
consumption, that serves not less than 15 service connections used by year-round residents of the
area served by the System or regularly serves more than 25 year-round residents.
(h) The 2018 Project. The 2018 Project consists and will consist of the facilities,
improvements and activities described in Appendix A, as such Appendix A may be amended
from time to time in accordance with Article III of this Supplemental Resolution. The 2018
Project comprises facilities of a type that, as determined by the EPA, will facilitate compliance
with the national primary drinking water regulations applicable to the System or will otherwise
significantly further the health protection objectives of the Safe Drinking Water Act.
(i) Full Disclosure. There is no fact that the Borrower has not specifically disclosed in
writing to the DNRC that materially and adversely affects or (so far as the Borrower can now
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foresee), except for pending or proposed legislation or regulations that are a matter of general
public information, that will materially and adversely affect the properties, operations and
finances of the System, the Borrower’s status as a Public Entity and Governmental Unit, its
ability to own and operate the System in the manner it is currently operated or the Borrower’s
ability to perform its obligations under the Resolution, the Series 2018 Bond and the Collateral
Documents and to pledge any revenues or other property pledged to the payment of the Series
2018 Bond.
(j) Compliance With Law. The Borrower:
(1) is in compliance with all laws, ordinances, governmental rules and regulations
and court or other governmental orders, judgments and decrees to which it is subject and
which are material to the properties, operations and finances of the System or its status as
a Public Entity and Governmental Unit; and
(2) has obtained all licenses, permits, franchises or other governmental
authorizations necessary to the ownership of the System and the operation thereof and
agrees to obtain all such licenses, permits, franchises or other governmental
authorizations as may be required in the future for the System and the operation thereof,
which failure to obtain might materially and adversely affect the ability of the Borrower
to conduct the operation of the System as presently conducted or the condition (financial
or otherwise) of the System or the Borrower’s ability to perform its obligations under the
Resolution, the Series 2018 Bond and the Collateral Documents.
Covenants. Section 2.3
(a) Insurance. The Borrower at all times shall keep and maintain with respect to the
System property and casualty insurance and liability insurance with financially sound and
reputable insurers, or self-insurance as authorized by State law, against such risks and in such
amounts, and with such deductible provisions, as are customary in the State in the case of entities
of the same size and type as the Borrower and similarly situated and shall carry and maintain, or
cause to be carried and maintained, and pay or cause to be paid timely the premiums for all such
insurance. All such insurance policies shall name the DNRC as an additional insured to the
extent permitted under the policy or program of insurance of the Borrower. Each policy must
provide that it cannot be cancelled by the insurer without giving the Borrower and the DNRC 30
days’ prior written notice. The Borrower shall give the DNRC prompt notice of each insurance
policy it obtains or maintains to comply with this Section 2.3(a) and of each renewal,
replacement, change in coverage or deductible under or amount of or cancellation of each such
insurance policy and the amount and coverage and deductibles and carrier of each new or
replacement policy. Such notice shall specifically note any adverse change as being an adverse
change. The Borrower shall deliver to the DNRC at Closing a certificate providing the
information required by this Section 2.3(a).
(b) Right of Inspection and Notice of Change of Location. The DNRC, the DEQ and the
EPA and their designated agents shall have the right at all reasonable times during normal
business hours and upon reasonable notice to enter into and upon the property of the Borrower
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for the purpose of inspecting the System or any or all books and records of the Borrower relating
to the System.
(c) Further Assurance. The Borrower shall execute and deliver to the DNRC all such
documents and instruments and do all such other acts and things as may be necessary or required
by the DNRC to enable the DNRC to exercise and enforce its rights under the Resolution, the
Series 2018 Bond and the Collateral Documents and to realize thereon, and record and file and
re-record and refile all such documents and instruments, at such time or times, in such manner
and at such place or places, all as may be necessary or required by the DNRC to validate,
preserve and protect the position of the DNRC under the Resolution, the Series 2018 Bond and
the Collateral Documents.
(d) Maintenance of Security, if Any; Recordation of Interest.
(1) The Borrower shall, at its expense, take all necessary action to maintain and
preserve the lien and security interest of the Resolution and the Collateral Documents so
long as any amount is owing under the Resolution or the Series 2018 Bond;
(2) The Borrower shall forthwith, after the execution and delivery of the Series
2018 Bond and thereafter from time to time, cause the Resolution and any Collateral
Documents granting a security interest in revenues or real or personal property and any
financing statements or other notices or documents relating thereto to be filed, registered
and recorded in such manner and in such places as may be required by law in order to
perfect and protect fully the lien and security interest hereof and thereof and the security
interest in them granted by the Resolution and, from time to time, shall perform or cause
to be performed any other act required by law, including executing or causing to be
executed any and all required continuation statements and shall execute or cause to be
executed any further instruments that may be requested by the DNRC for such perfection
and protection; and
(3) Except to the extent it is exempt therefrom, the Borrower shall pay or cause to
be paid all filing, registration and recording fees incident to such filing, registration and
recording, and all expenses incident to the preparation, execution and acknowledgment of
the documents described in subparagraph (2), and all federal or state fees and other
similar fees, duties, imposts, assessments and charges arising out of or in connection with
the execution and delivery of the Series 2018 Bond and the Collateral Documents and the
documents described in subparagraph (2).
(e) Additional Agreements. The Borrower covenants to comply with all representations,
covenants, conditions and agreements, if any, set forth in Appendix C hereto.
(f) Financial Information. This Section 2.3(f) supplements, and is not intended to limit,
the requirements in Section 2.2(e) of the Original Resolution, as amended. The Borrower agrees
that for each fiscal year it shall furnish to the DNRC and the DEQ, promptly when available, in
addition to those matters specified in Section 2.2(e) of the Original Resolution:
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(1) the preliminary annual budget for the System, with items for the 2018 Project
shown separately; and
(2) when adopted, the final annual budget for the System, with items for the 2018
Project shown separately.
(g) 2018 Project Accounts. The Borrower shall maintain Project accounts in accordance
with generally accepted government accounting standards.
(h) Records. After reasonable notice from the EPA or the DNRC, the Borrower shall
make available to the EPA or the DNRC such records as the EPA or the DNRC reasonably
requires to review and determine compliance with the Safe Drinking Water Act, as provided in
Section 75-6-224(1)(d) of the Act.
(i) Compliance with Safe Drinking Water Act. The Borrower has complied and shall
comply with all conditions and requirements of the Safe Drinking Water Act pertaining to the
2018 Loan and the 2018 Project.
(j) Compliance with DEQ Requirements. The Borrower shall comply with plan,
specification and other requirements for public water systems established by the DEQ, as
required by Section 75-6-224(1)(h) of the Act.
Covenants Relating to the Tax-Exempt Status of the State Bonds. Section 2.4
(a) The Borrower covenants and agrees that it will not use or permit to be used any of the
proceeds of the Series 2018 Bond or any other funds of the Borrower in respect of the 2018
Project or the Series 2018 Bond, directly or indirectly, in a manner that would cause, or take any
other action that would cause, any State Bond to be an “arbitrage bond” within the meaning of
Section 148 of the Code or would otherwise cause the interest on the State Bonds to be included
in gross income for purposes of federal income taxation.
(b) The Borrower agrees that it will not enter into, or allow any “related person” (as
defined in Section 147(a)(2) of the Code) to enter into, any arrangement, formal or informal, for
the purchase of the State Bonds or any other obligations of the DNRC in an amount related to the
amount of the 2018 Loan or the portion of the 2018 Loan derived directly or indirectly from
proceeds of the State Bonds or that would otherwise cause any State Bond to be an “arbitrage
bond” within the meaning of Section 148 of the Code.
(c) The Borrower shall not use or permit the use of the 2018 Project directly or indirectly
in any trade or business carried on by any Person who is not a Governmental Unit. For the
purpose of this subparagraph, use as a member of the general public (within the meaning of the
Regulations) shall not be taken into account and any activity carried on by a Person other than a
natural person shall be treated as a trade or business.
(d) Any portion of the 2018 Project being refinanced or the cost of which is being
reimbursed was acquired by and is now and shall, during the term of the 2018 Loan, be owned
by the Borrower and not by any other Person. Any portion of the 2018 Project being financed
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shall be acquired by and shall, during the term of the 2018 Loan, be owned by the Borrower and
not by any other Person. Notwithstanding the previous two sentences, the Borrower may transfer
the 2018 Project or a portion thereof to another Governmental Unit which is also a Public Entity
if such transfer is otherwise permitted under the Resolution and if such organization agrees with
the DNRC to comply with Section 2.3(h), Section 2.3(i) and Section 2.4 of this Supplemental
Resolution and if the DNRC receives an Opinion of Bond Counsel that such transfer will not
violate the Act or the Safe Drinking Water Act or adversely affect the exclusion of interest on the
State Bonds from gross income or purposes of federal income taxation. In addition, except as
otherwise provided in the Resolution or in any Collateral Documents, the Borrower may sell or
otherwise dispose of any portion of the 2018 Project which has become obsolete or outmoded or
is being replaced or for other reasons is not needed by the Borrower or beneficial to the general
public or necessary to carry out the purposes of the Safe Drinking Water Act.
(e) At the Closing of the 2018 Loan, the DNRC will, if necessary to obtain the Opinion
of Bond Counsel described in Section 7.05(a) of the Indenture, deliver to the Borrower
instructions concerning compliance by the Borrower with the arbitrage rebate requirements of
Section 148 of the Code (the “Arbitrage Rebate Instructions”). The Borrower shall comply with
the Arbitrage Rebate Instructions, if any, delivered to it by the DNRC at Closing, as such
Instructions may be amended or replaced by the DNRC from time to time. The Arbitrage Rebate
Instructions may be amended or replaced by new Arbitrage Rebate Instructions delivered by the
DNRC and accompanied by an Opinion of Bond Counsel to the effect that the use of said
amended or new Arbitrage Rebate Instructions will not adversely affect the excludability of
interest on the State Bonds or any Additional State Bonds (except State Bonds the interest on
which the State did not intend to be excluded from gross income for federal income tax
purposes) from gross income of the recipients thereof for federal income tax purposes.
(f) The Borrower agrees that during the term of the 2018 Loan it will not contract with or
permit any Private Person to manage the 2018 Project or any portion thereof except according to
a written management contract and upon delivery to the DNRC of an opinion of Bond Counsel to
the effect that the execution and delivery of such management contract will not violate the Act or
the Safe Drinking Water Act or adversely affect the exclusion of interest on State Bonds from
gross income or purposes of federal income taxation.
(g) The Borrower may not lease the 2018 Project or any portion thereof to any Person
other than a Nonexempt Person which agrees in writing with the Borrower and the State not to
cause any default to occur under the Resolution; provided the Borrower may lease all or any
portion of the 2018 Project to a Nonexempt Person pursuant to a lease which in the Opinion of
Bond Counsel delivered to the DNRC will not cause the interest on the State Bonds to be
included in gross income for purposes of federal income taxation.
(h) The Borrower shall not change the use or nature of the 2018 Project if (i) such change
will violate the Safe Drinking Water Act, or (ii) so long as the State Bonds are outstanding
unless, in the Opinion of Bond Counsel delivered to the DNRC, such change will not result in
the inclusion in gross income of interest on the State Bonds for federal income tax purposes.
Maintenance of System; Liens. The Borrower shall maintain the System, Section 2.5
including the 2018 Project, in good condition and make all necessary renewals, replacements,
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additions, betterments and improvements thereto. The Borrower shall not grant or permit to exist
any lien on the 2018 Project or any other property making up part of the System, other than liens
securing Debt where a parity or senior lien secures the Series 2018 Bond; provided that this
Section 2.5 shall not be deemed to be violated if a mechanic’s or contractor’s lien is filed against
any such property so long as the Borrower uses its best efforts to obtain the discharge of such
lien and promptly reports to the DNRC the filing of such lien and the steps it plans to take and
does take to discharge of such lien.
Maintenance of Existence; Merger, Consolidation, Etc.; Disposition of Section 2.6
Assets. The Borrower shall maintain its corporate existence, except that it may consolidate with
or merge into another Governmental Unit or permit one or more Governmental Units to
consolidate with or merge into it or may transfer all or substantially all of its assets to another
Governmental Unit and then dissolve if the surviving, resulting or transferee entity (if other than
the Borrower) (i) is a Public Entity and (ii) assumes in writing all of the obligations of the
Borrower under the Resolution, the Series 2018 Bond and the Collateral Documents, and (a)
such action does not result in any default in the performance or observance of any of the terms,
covenants or agreements of the Borrower under the Resolution, the Series 2018 Bond and the
Collateral Documents, (b) such action does not violate the Act or the Safe Drinking Water Act
and does not adversely affect the exclusion of interest on the Series 2018 Bond or the State
Bonds from gross income for federal income tax purposes and (c) the Borrower delivers to the
DNRC on the date of such action an Opinion of Bond Counsel that such action complies with
this Section 2.6.
Other than pursuant to the preceding paragraph, the Borrower shall not transfer the
System or any portion thereof to any other Person, except for property which is obsolete,
outmoded, worn out, is being replaced or otherwise is not needed for the operation of the
System, unless the provisions of (a) and (b) of the preceding paragraph are satisfied and the
Borrower delivers to the DNRC an Opinion of Bond Counsel to that effect and, in addition, the
DNRC consents to such transfer.
ARTICLE III
USE OF PROCEEDS; THE 2018 PROJECT
Use of Proceeds. The Borrower shall apply the proceeds of the 2018 Loan Section 3.1
from the DNRC solely as follows:
(a) The Borrower shall apply the proceeds of the 2018 Loan solely to the financing,
refinancing or reimbursement of the costs of the 2018 Project as set forth in Appendix A hereto
and this Section 3.1. The 2018 Loan will be disbursed in accordance with ARTICLE IV hereof
and Article VII of the Indenture. If the 2018 Project has not been completed prior to Closing, the
Borrower shall, as quickly as reasonably possible, complete the 2018 Project and expend
proceeds of the 2018 Loan to pay the costs of completing the 2018 Project.
(b) No portion of the proceeds of the 2018 Loan shall be used to reimburse the Borrower
for costs paid prior to the date of adoption of this Supplemental Resolution of a Project the
construction or acquisition of which occurred or began earlier than June 1, 1993. In addition, if
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any proceeds of the 2018 Loan are to be used to reimburse the Borrower for 2018 Project costs
paid prior to the date of adoption of this Supplemental Resolution, the Borrower shall have
complied with Section 1.150-2 of the Regulations in respect of such costs.
(c) Any Debt to be refinanced with proceeds of the 2018 Loan was incurred after June 1,
1993 for a Project the construction or acquisition of which began after June 1, 1993. No
proceeds of the 2018 Loan shall be used for the purpose of refinancing an obligation the interest
on which is exempt from federal income tax or excludable from gross income for purposes of
federal income taxation unless the DNRC has received an Opinion of Bond Counsel, satisfactory
to it, to the effect that such refinancing will not adversely affect the exclusion of interest on the
State Bonds from gross income for purposes of federal income taxation.
The 2018 Project. Set forth in Appendix A to this Supplemental Section 3.2
Resolution is a description of the 2018 Project, which describes the property which has been or is
to be acquired, installed, constructed or improved and the other activities, if any to be funded
from the 2018 Loan (the 2018 Project may consist of more than one facility or activity), and an
estimated budget relating to the 2018 Project. The 2018 Project may be changed and the
description thereof in Appendix A may be amended from time to time by the Borrower but only
after delivery to the DNRC of the following:
(a) A certificate of the Borrower setting forth the amendment to Appendix A and stating
the reason therefor, including statements whether the amendment would cause an increase or
decrease in the cost of the 2018 Project, an increase or decrease in the amount of proceeds of the
2018 Loan which will be required to complete the 2018 Project and whether the change will
materially accelerate or delay the construction schedule for the 2018 Project;
(b) A written consent to such change in the 2018 Project by an Authorized DNRC
Officer;
(c) An Opinion or Opinions of Bond Counsel stating that the 2018 Project, as constituted
after such amendment, is, and was at the time the State Bonds were issued, eligible for financing
under the Act and is, and was at the time the Series 2018 Bond was issued, eligible for financing
under the Enabling Act, such amendment will not violate the Act or the Enabling Act and such
amendment will not adversely affect the exclusion of interest on the State Bonds or the Series
2018 Bond from gross income for purposes of federal income taxation. Such an Opinion of
Bond Counsel shall not be required for amendments which do not affect the type of facility to be
constructed or activity to be financed; and
The Borrower acknowledges and agrees that an increase in the principal amount of the
2018 Loan may be made only upon an application to the DEQ, the DNRC and the Trustee, in
such form as the DEQ shall specify, which is approved by the DEQ and the DNRC, in their sole
and absolute discretion, and adoption by the governing body of the Borrower of a resolution
amendatory of or supplementary to the Resolution authorizing the additional loan and delivery of
written certifications by officers of the Borrower to the DEQ, the DNRC and the Trustee to the
effect that all representations and covenants contained in the resolution as it may be so amended
or supplemented are true as of the date of closing of the additional loan and compliance with
applicable tests for the incurrence of such Debt. No assurance can be given that any additional
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loan funds will be available under the Program at the time of any such application or thereafter.
The Borrower acknowledges and agrees that neither the DEQ, the DNRC, the Trustee nor any of
their agents, employees or representatives shall have any liability to the Borrower and have made
no representations to the Borrower as to the sufficiency of the 2018 Loan to pay costs of the
2018 Project or as to the availability of additional funds under the Program to increase the
principal amount of the 2018 Loan.
2018 Project Representations and Covenants. The Borrower hereby Section 3.3
represents to and covenants with the DNRC that:
(a) all construction of the 2018 Project has complied and will comply with all federal and
state standards, including, without limitation, EPA regulations and standards;
(b) all future construction of the 2018 Project will be done only pursuant to fixed price
construction contracts. The Borrower shall obtain a performance and payment bond from the
contractor for each construction contract in the amount of 100% of the construction price and
ensure that such bond is maintained until construction is completed to the Borrower’s, the
DNRC’s and the DEQ’s satisfaction;
(c) all future construction of the 2018 Project will be done in accordance with plans and
specifications on file with the DNRC and the DEQ, provided that changes may be made in such
plans and specifications with the written consent of an Authorized DNRC Officer and the DEQ;
(d) all laborers and mechanics employed by contractors and subcontractors on the 2018
Project have been and will be paid wages at rates not less than those prevailing on projects of a
character similar in the locality as determined by the United States Secretary of Labor in
accordance with subchapter IV of chapter 31 of title 40, United States Code;
(e) iron and steel products used in the 2018 Project comply with the “American Iron and
Steel” requirements of Section 436 of the Consolidated Appropriations Act of 2014 (P.L. 113-
76), as those requirements are further interpreted by applicable EPA guidance;
(f) the 2018 Project is a project of the type permitted to be financed under the Enabling
Act, the Act and the Program and Section 1452 of the Safe Drinking Water Act; and
(g) the Borrower will undertake the 2018 Project promptly after the Closing Date and
will cause the 2018 Project to be completed as promptly as practicable with all reasonable
dispatch, except only as completion may be delayed by a cause or event not reasonably within
the control of the Borrower; it is estimated by the Borrower that the 2018 Project will be
substantially completed by the Estimated Completion Date.
Completion or Cancellation or Reduction of Costs of the 2018 Project. Section 3.4
(a) Upon completion of the 2018 Project, the Borrower shall deliver to the DNRC a
certificate stating that the 2018 Project is complete, stating the amount, of the Reserved
Amounts, and releasing the remaining amount, if any, of the Committed Amount. If any
Reserved Amount is not later needed, the Borrower shall so inform the DNRC and release such
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amount. If Appendix A describes two or more separate projects as making up the 2018 Project, a
separate completion certificate shall be delivered for each.
(b) If all or any portion of the 2018 Project is cancelled or cut back or its costs are
reduced or for any other reason the Borrower will not require the full Committed Amount, the
Borrower shall promptly notify the DNRC in writing of such fact and release the portion of the
Committed Amount which will not be needed.
ARTICLE IV
THE 2018 LOAN
The 2018 Loan; Disbursement of 2018 Loan. The DNRC has agreed to Section 4.1
lend to the Borrower, from time to time as the requirements of this Section 4.1 are met, an
amount up to $4,921,000 (the “Committed Amount”) for the purposes of financing, refinancing
or reimbursing the Borrower for a portion of the costs of the 2018 Project; provided the DNRC
shall not be required to loan any proceeds of the State Bonds to the Borrower after the Estimated
Completion Date. The Committed Amount may be reduced as provided in Section 3.2 and
Section 3.4 of this Supplemental Resolution. The City will fund a deposit to the Reserve
Account and pay the costs of issuance of the Series 2018 Bond from funds it has on hand and
available therefor.
(a) The DNRC intends to disburse the 2018 Loan through the Trustee. In consideration
of the issuance of the Series 2018 Bond by the Borrower, the DNRC shall make, or cause the
Trustee to make, a disbursement of all or a portion of the 2018 Loan upon receipt of the
following documents:
(1) an Opinion of Bond Counsel as to the validity and enforceability of the Series
2018 Bond and the security therefor and stating in effect that interest on the Series 2018
Bond is not includable in gross income of the owner thereof for purposes of federal
income taxation, in form and substance satisfactory to the DNRC;
(2) the Series 2018 Bond, fully executed and authenticated;
(3) a certified copy of the Resolution and this Supplemental Resolution;
(4) any other security instruments or documents required by the DNRC or DEQ
as a condition to their approval of the 2018 Loan;
(5) if all or part of a Loan is being made to refinance a Project or reimburse the
Borrower for the costs of a Project paid prior to the Closing, evidence, satisfactory to the
DNRC and the Bond Counsel referred to in (1) above, (A) that the acquisition or
construction of the Project was begun no earlier than June 1, 1993 or the debt was
incurred no earlier than June 1, 1993, (B) of the Borrower’s title to the Project, (C) of the
costs of such Project and that such costs have been paid by the Borrower and (D) if such
costs were paid before adoption of this Supplemental Resolution that the Borrower has
complied with Section 1.150-2 of the Regulations;
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(6) the items required by the Indenture for the portion of the 2018 Loan to be
disbursed at Closing; and
(7) such other certificates, documents and other information as the DNRC, the
DEQ or the Bond Counsel giving the opinion referred to in subparagraph (1) may require
(including any necessary arbitrage rebate instructions).
(b) In order to obtain a disbursement of a portion of the 2018 Loan to pay costs of the
2018 Project, the Borrower shall submit to the DNRC and the Trustee a signed request for
disbursement on the form prescribed by the DNRC, with all attachments required by such form.
The Borrower may obtain disbursements only for costs which have been legally incurred and are
due and payable. All Loan disbursements will be made to the Borrower only upon proof that
cost was incurred.
(c) For refinancings, a disbursement schedule complying with the requirements of the
Safe Drinking Water Act shall be established by the DNRC and the Borrower at Closing.
(d) If all or a portion of the 2018 Loan is made to reimburse a Borrower for Project costs
paid by it prior to Closing, the Borrower shall present at Closing the items required by Section
4.1(b) of this Supplemental Resolution relating to such costs. The Trustee shall disburse such
amounts to the Borrower pursuant to a disbursement schedule complying with the requirements
of the Safe Drinking Water Act established by the DNRC and the Borrower at the Closing.
(e) Notwithstanding anything else provided herein, the Trustee shall not be obligated to
disburse the 2018 Loan any faster or to any greater extent than it has amounts available therefor
in the Revolving Fund. The DNRC shall not be required to do “overmatching” pursuant to
Section 5.04(b) of the Indenture, but may do so in its discretion. The Borrower acknowledges
that if Project costs are incurred faster than the Borrower projected at Closing, there may be
delays in making 2018 Loan disbursements for such costs. The DNRC will use its reasonable
best efforts to obtain an acceleration of such schedule if necessary.
(f) Upon making each 2018 Loan disbursement, the Trustee shall note such disbursement
on Schedule A to the Series 2018 Bond.
(g) The Borrower agrees that it will deposit in the Reserve Account upon receipt thereof,
on the date of the first advance under the 2018 Loan and any subsequent disbursement dates, any
proceeds of the 2018 Loan borrowed for the purpose of increasing the balance in the Reserve
Account in an amount then required to satisfy the Reserve Requirement. The Borrower further
acknowledges and agrees that any portions of the 2018 Loan representing capitalized interest
shall be advanced only on Payment Dates and shall be transferred by the Trustee on the Payment
Date directly to the Debt Service Account. The amount of any such transfer shall be a credit
against the interest payments due on the Series 2018 Bond and interest thereon shall accrue only
from the date of transfer.
(h) Compliance by the Borrower with its representations, covenants and agreements
contained in the Original Resolution, this Supplemental Resolution and the Collateral Documents
shall be a further condition precedent to the disbursement of the 2018 Loan in whole or in part.
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The DNRC and the Trustee, in their sole and absolute discretion, may make one or more
disbursements, in whole or in part, notwithstanding such noncompliance, and without liability to
make any subsequent disbursement of the 2018 Loan.
Commencement of Loan Term. The Borrower’s obligations under this Section 4.2
Supplemental Resolution and the Collateral Documents shall commence on the date hereof
unless otherwise provided in this Supplemental Resolution. However, the obligation to make
payments under ARTICLE V hereof shall commence only upon the first disbursement by the
Trustee of the 2018 Loan proceeds.
Termination of Loan Term. The Borrower’s obligations under this Section 4.3
Supplemental Resolution and the Collateral Documents in respect of the Series 2018 Bond shall
terminate upon payment in full of all amounts due under the Series 2018 Bond and this
Supplemental Resolution; provided, however, that the covenants and obligations provided in
ARTICLE VI and Section 10.3 of this Supplemental Resolution shall survive the termination of
this Supplemental Resolution.
Loan Closing Submissions. On or prior to the Closing, the Borrower will Section 4.4
have delivered to the DNRC and the Trustee the closing submissions required by Section 7.05 of
the Indenture.
ARTICLE V
REPAYMENT OF 2018 LOAN
Repayment of 2018 Loan. The Borrower shall repay the amounts lent to it Section 5.1
pursuant to Section 4.1 hereof, plus interest on the unpaid amounts lent at the rate of two percent
(2.00%) per annum, in semiannual Loan Repayments. In addition, the Borrower shall pay an
Administrative Expense Surcharge and a Loan Loss Reserve Surcharge, each at the rate of
twenty-five hundredths of one percent (0.25%) per annum on the outstanding principal amount
of the 2018 Loan. For purposes of this Supplemental Resolution and the Program, the term
“Interest on the Loan” or “Interest on the 2018 Loan” shall include the Administrative Expense
Surcharge and the Loan Loss Reserve Surcharge. The Borrower shall pay all Loan Repayments
and Administrative Expense Surcharge and Loan Loss Reserve Surcharge in lawful money of the
United States of America to the DNRC. Interest and Administrative Expense Surcharge and
Loan Loss Reserve Surcharge shall be calculated on the basis of a year of 360 days comprising
12 months of 30 days each.
The Loan Repayments required by this Section 5.1, and the Administrative Expense
Surcharge and the Loan Loss Reserve Surcharge, shall be due on each January 1 and July 1 (the
“Payment Dates”), as follows:
(a) interest and Administrative Expense Surcharge and Loan Loss Reserve
Surcharge on the outstanding principal balance of the 2018 Loan shall be payable on each
January 1 and July 1, beginning on July 1, 2019 and concluding on January 1, 2039; and
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(b) the principal of the 2018 Loan shall be repayable on each Payment Date,
beginning on July 1, 2019 and concluding on January 1, 2039, and the amount of each
principal payment shall be calculated on the basis of substantially level debt service at an
interest rate of 2.50% per annum; provided that principal of the 2018 Loan is payable
only in amounts that are multiples of $1,000.
The payments of principal of and interest and Administrative Expense Surcharge and
Loan Loss Reserve Surcharge on the 2018 Loan shall be due on the dates and in the amounts
shown in Schedule B to the Series 2018 Bond, as such Schedule B shall be modified from time
to time as provided below. The portion of each such Loan Repayment consisting of principal
and the portion consisting of interest and the amount of each Administrative Expense Surcharge
and the amount of each Loan Loss Reserve Surcharge shall be set forth in Schedule B to the
Series 2018 Bond. Upon each disbursement of 2018 Loan amounts to the Borrower pursuant to
Section 4.1 hereof, the Trustee shall enter or cause to be entered the amount advanced on
Schedule A to the Series 2018 Bond under “Advances” and the total amount advanced under
Section 4.1, including such disbursement, under “Total Amount Advanced.”
Interest and Administrative Expense Surcharge and Loan Loss Reserve Surcharge on
each advance of the 2018 Loan shall accrue from the date the advance is made and shall be
payable on each Payment Date thereafter. Once the completion certificate for the 2018 Project
has been delivered to the DNRC, the Trustee shall revise Schedule B to the Series 2018 Bond in
accordance with this Section 5.1 and the Trustee shall send a copy of such Schedule B to the
Borrower within one month after delivery of the completion certificate.
Past-due payments of principal and interest and Administrative Expense Surcharge and
Loan Loss Reserve Surcharge shall bear interest at the rate of ten percent (10.00%) per annum,
until paid.
Any payment of principal, interest or Administrative Expense Surcharge and Loan Loss
Reserve Surcharge under this Section 5.1 shall also be credited against the same payment
obligation under the Series 2018 Bond.
Additional Payments. The Borrower shall also pay, within 30 days after Section 5.2
receipt of a bill therefor, from any legally available funds therefor, including proceeds of the
2018 Loan, if the Borrower so chooses, all reasonable expenses of the DNRC and the Trustee in
connection with the 2018 Loan, the Collateral Documents and the Series 2018 Bond, including,
but not limited to:
(a) the cost of reproducing this Supplemental Resolution, the Collateral
Documents and the Series 2018 Bond;
(b) the fees and disbursements of Bond Counsel and other Counsel utilized by
the DNRC and the Trustee in connection with the 2018 Loan, this Supplemental Resolution, the
Collateral Documents and the Series 2018 Bond and the enforcement thereof; and
(c) all taxes and other governmental charges in connection with the execution
and delivery of the Collateral Documents or the Series 2018 Bond, whether or not the Series
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2018 Bond are then outstanding, including all recording and filing fees relating to the Collateral
Documents and the pledge of the State’s right, title and interest in and to the Series 2018 Bond,
the Collateral Documents and this Supplemental Resolution and all expenses, including
attorneys’ fees, relating to any amendments, waivers, consents or collection or enforcement
proceedings pursuant to the provisions hereof or thereof.
Prepayments. The Borrower may not prepay all or any part of the Section 5.3
outstanding principal amount of the Series 2018 Bond unless (i) it obtains the prior written
consent of the DNRC thereto, and (ii) no Loan Repayment or Administrative Expense Surcharge
or Loan Loss Reserve Surcharge is then delinquent. Any prepayment permitted by the DNRC
must be accompanied by payment of accrued interest and Administrative Expense Surcharge and
Loan Loss Reserve Surcharge to the date of prepayment on the amount of principal prepaid. If
the Series 2018 Bond is prepaid in part pursuant to this Section 5.3, such prepayments shall be
applied to principal payments in inverse order of maturity.
Obligations of Borrower Unconditional. The obligations of the Borrower Section 5.4
to make the payments required by this Supplemental Resolution and the Series 2018 Bond and to
perform its other agreements contained in this Supplemental Resolution, the Series 2018 Bond
and Collateral Documents shall be absolute and unconditional, except as otherwise provided
herein or in such documents. The Borrower (a) shall not suspend or discontinue any payments
provided for in this Supplemental Resolution and the Series 2018 Bond, (b) shall perform all its
other agreements in this Supplemental Resolution, the Series 2018 Bond and the Collateral
Documents and (c) shall not terminate this Supplemental Resolution, the Series 2018 Bond or the
Collateral Documents for any cause, including any acts or circumstances that may constitute
failure of consideration, destruction of or damage to the 2018 Project or the System, commercial
frustration of purpose, any dispute with the DNRC or the EPA, any change in the laws of the
United States or of the State or any political subdivision of either or any failure of the DNRC to
perform any of its agreements, whether express or implied, or any duty, liability or obligation
arising from or connected with this Resolution.
Limited Liability. All payments of principal of and interest on the 2018 Section 5.5
Loan and other payment obligations of the Borrower hereunder and under the Series 2018 Bond
shall be special, limited obligations of the Borrower payable solely out of the Net Revenues, and
shall not, except at the option of the Borrower and as permitted by law, be payable out of any
other revenues of the Borrower. The obligations of the Borrower under the Resolution and the
Series 2018 Bond shall never constitute an indebtedness of the Borrower within the meaning of
any state constitutional provision or statutory or charter limitation and shall never constitute or
give rise to a pecuniary liability of the Borrower or a charge against its general credit or taxing
power. The taxing powers of the Borrower may not be used to pay principal of or interest on the
Series 2018 Bond, and no funds or property of the Borrower other than the Net Revenues may be
required to be used to pay principal of or interest on the Series 2018 Bond.
INDEMNIFICATION OF DNRC AND DEQ
The Borrower shall to the extent permitted by law indemnify and save harmless the
DNRC and the DEQ and their officers, employees and agents (each an “Indemnified Party” or,
collectively, the “Indemnified Parties”) against and from any and all claims, damages, demands,
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expenses, liabilities and losses of every kind asserted by or on behalf of any Person arising out of
the acts or omissions of the Borrower or its employees, officers, agents, contractors,
subcontractors, or consultants in connection with or with regard or in any way relating to the
condition, use, possession, conduct, management, planning, design, acquisition, construction,
installation or financing of the 2018 Project. The Borrower shall also, to the full extent permitted
by law, indemnify and save harmless the Indemnified Parties against and from all costs,
reasonable attorneys’ fees, expenses and liabilities incurred in any action or proceeding brought
by reason of any such claim or demand. If any proceeding is brought against an Indemnified
Party by reason of such claim or demand, the Borrower shall, upon notice from an Indemnified
Party, defend such proceeding on behalf of the Indemnified Party.
ARTICLE VII
ASSIGNMENT
Assignment by Borrower. The Borrower may not assign its rights and Section 7.1
obligations under the Resolution or the Series 2018 Bond.
Assignment by DNRC. The DNRC will pledge its rights under and Section 7.2
interest in the Resolution, the Series 2018 Bond and the Collateral Documents (except to the
extent otherwise provided in the Indenture) as security for the payment of the State Bonds and
may further assign such interests to the extent permitted by the Indenture, without the consent of
the Borrower.
State Refunding Bonds. In the event the State Bonds and Additional State Section 7.3
Bonds are refunded by bonds which are not Additional State Bonds, all references in the
Resolution to State Bonds and Additional State Bonds shall be deemed to refer to the refunding
bonds and any bonds of the State on a parity with such refunding bonds (together, the
“Refunding Bonds”) or, in the case of a crossover refunding, to the State Bonds and Additional
State Bonds and the Refunding Bonds. In the event the State Bonds are refunded by an issue of
Additional State Bonds, all references in the Resolution to the State Bonds shall be deemed to
refer to such Additional State Bonds or, in the case of a crossover refunding, both the State
Bonds and such Additional State Bonds.
ARTICLE VIII
THE SERIES 2018 BOND
Net Revenues Available. The Borrower is authorized to charge just and Section 8.1
equitable rates, charges and rentals for all services directly or indirectly furnished by the System,
and to pledge and appropriate to the Series 2018 Bond the Net Revenues to be derived from the
operation of the System, including improvements, betterments or extensions thereof hereafter
constructed or acquired. The Net Revenues to be produced by such rates, charges and rentals
during the term of the Series 2018 Bond are expected to be more than sufficient to pay the
principal and interest when due on the Bonds, and to create and maintain reasonable reserves
therefor, to provide an adequate allowance for replacement and depreciation, and to provide
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adequate Surplus Net Revenues to pay Subordinate Obligations, including the Johnson Controls
Loan, as prescribed herein.
Issuance and Sale of the Series 2018 Bond. The Council has investigated Section 8.2
the facts necessary and hereby finds, determines and declares it to be necessary and desirable for
the Borrower to issue the Series 2018 Bond to evidence the 2018 Loan. The Series 2018 Bond is
issued to the DNRC without public sale pursuant to Montana Code Annotated, Section 7-7-4433.
Terms. The Series 2018 Bond shall be in the maximum principal amount Section 8.3
equal to the Committed Amount, shall be issued as a single, fully registered bond numbered R-1,
shall be dated as of the date of delivery to the DNRC, and shall bear interest at the rate charged
by the DNRC on the 2018 Loan. The principal of and interest on the Series 2018 Bond shall be
payable on the same dates on which Loan Repayments are payable. Advances of principal of the
Series 2018 Bond shall be deemed made when advances of the 2018 Loan are made under
Section 4.1, and such advances shall be payable in accordance with Schedule B to the Series
2018 Bond, as it may be revised b y the DNRC from time to time in accordance with Section 5.1.
The Borrower may prepay the Series 2018 Bond, in whole or in part, only upon the terms
and conditions under which it can prepay the 2018 Loan under Section 5.3.
Negotiability, Transfer and Registration. The Series 2018 Bond shall be Section 8.4
fully registered as to both principal and interest, and shall be initially registered in the name of
and payable to the DNRC. While so registered, principal of and interest on the Series 2018 Bond
shall be payable to the DNRC at the Office of the Department of Natural Resources and
Conservation, 1539 Eleventh Avenue, Helena, Montana 59620-1601 or such other place as may
be designated by the DNRC in writing and delivered to the Borrower. The Series 2018 Bond
shall be negotiable, subject to the provisions for registration and transfer contained in this
Section. No transfer of the Series 2018 Bond shall be valid unless and until (1) the holder, or his
duly authorized attorney or legal representative, has executed the form of assignment appearing
on the Series 2018 Bond, and (2) the City Clerk-Treasurer of the Borrower (or successors, the
“Registrar”), as Bond Registrar, has duly noted the transfer on the Series 2018 Bond and
recorded the transfer on the registration books of the Registrar. The Registrar may, prior to
noting and recording the transfer, require appropriate proof of the transferor’s authority and the
genuineness of the transferor’s signature. The Borrower shall be entitled to deem and treat the
Person in whose name the Series 2018 Bond is registered as the absolute owner of the Series
2018 Bond for all purposes, notwithstanding any notice to the contrary, and all payments to the
registered holder shall be valid and effectual to satisfy and discharge the Borrower’s liability
upon such Series 2018 Bond to the extent of the sum or sums so paid.
Execution and Delivery. The Series 2018 Bond shall be executed on Section 8.5
behalf of the Borrower by the manual signatures of the Mayor and the City Clerk-Treasurer.
Any or all of such signatures may be affixed at or prior to the date of delivery of the Series 2018
Bond. The Series 2018 Bond shall be sealed with the corporate seal of the Borrower. In the
event that any of the officers who shall have signed the Series 2018 Bond shall cease to be
officers of the Borrower before the Series 2018 Bond is issued or delivered, their signatures shall
remain binding upon the Borrower. Conversely, the Series 2018 Bond may be signed by an
authorized official who did not hold such office on the date of adoption of this Supplemental
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Resolution. The Series 2018 Bond shall be delivered to the DNRC, or its attorney or legal
representative.
Form. The Series 2018 Bond shall be prepared in substantially the form Section 8.6
attached as Appendix B.
ARTICLE IX
SECURITY FOR THE SERIES 2018 BOND
The Series 2018 Bond is issued as an additional Bond under Section 8.2 of the Original
Resolution, as amended, and the Series 2003 Bond, the Series 2009A Bond, the Series 2009C
Bond, the Series 2016 Bond, the Series 2018 Bond and any other additional Bonds issued under
the provisions of Article VIII of the Original Resolution (excluding Section 8.4 thereof), as
amended, shall be equally and ratably secured by the provisions of the Resolution and payable
out of the Net Revenues appropriated to the Debt Service Account of the Water System Fund,
without preference or priority, all as provided in the Resolution, and secured by the Reserve
Account, as further provided in Section 9.3 of the Original Resolution and in the following
sentence. On the Closing Date, the Borrower shall deposit in the Reserve Account, from
available funds of the System, an amount sufficient to cause the balance in the Reserve Account
to equal the Reserve Requirement, treating all of the principal amount of the Series 2018 Bond as
advanced at Closing. In the event the amount in the Reserve Account exceeds the Reserve
Requirement as of the date of the final disbursement of proceeds of the Series 2018 Bond, the
Borrower shall reduce the amount then in the Reserve Account to equal the Reserve
Requirement, recognizing that none of the amounts in the Reserve Account shall be from
proceeds of the Series 2018 Bond. Thereafter, upon each monthly apportionment, from the Net
Revenues remaining after the apportionment to the Revenue Bond Account, the Borrower shall
credit to the Reserve Account such additional Net Revenues as may be required to establish and
thereafter maintain the balance in an amount equal, as of the date of calculation, to the Reserve
Requirement. No payment of principal or interest shall be made on any Subordinate Obligation,
including the Johnson Controls Loan, if the City is then in default in the payment of principal of
or interest on any Bond or if there is a deficiency in the Operating Account or the Debt Service
Account or the balance in the Reserve Account is less than the Reserve Requirement. The
Borrower shall keep, perform and observe each and every one of its covenants and undertakings
set forth in the Resolution for the benefit of the registered holders from time to time of the Series
2018 Bond.
ARTICLE X
TAX MATTERS
Use of 2018 Project. The 2018 Project and the System will be owned and Section 10.1
operated by the Borrower and available for use by members of the general public on a
substantially equal basis. The Borrower shall not enter into any lease, use or other agreement
with any non-governmental person relating to the use of the 2018 Project or the System or
security for the payment of the Series 2018 Bond which might cause the Series 2018 Bond, to be
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considered a “private activity bond” or “private loan bond” within the meaning of Section 141 of
the Code.
General Covenant. The Borrower covenants and agrees with the owners Section 10.2
from time to time of the Series 2018 Bond that it will not take or permit to be taken by any of its
officers, employees or agents any action which would cause the interest on the Series 2018 Bond
to become includable in gross income for federal income tax purposes under the Code and the
Regulations, and covenants to take any and all actions within its powers to ensure that the
interest on the Series 2018 Bond will not become includable in gross income for federal income
tax purposes under the Code and the Regulations.
Arbitrage Certification. The Mayor and the City Clerk-Treasurer, being Section 10.3
the officers of the Borrower charged with the responsibility for issuing the Series 2018 Bond
pursuant to this Supplemental Resolution, are authorized and directed to execute and deliver to
the DNRC a certificate in accordance with the provisions of Section 148 of the Code, and
Section 1.148-2(b) of the Regulations, stating that on the basis of facts, estimates and
circumstances in existence on the date of issue and delivery of the Series 2018 Bond, it is
reasonably expected that the proceeds of the Series 2018 Bond will be used in a manner that
would not cause the Series 2018 Bond to be an “arbitrage bond” within the meaning of Section
148 of the Code and the Regulations.
Arbitrage Rebate Exemption. Section 10.4
(a) The Borrower hereby represents that the Series 2018 Bond qualifies for
the exception for small governmental units to the arbitrage rebate provisions contained in
Section 148(f) of the Code. Specifically, the Borrower represents:
(1) Substantially all (not less than 95%) of the proceeds of the Series
2018 Bond (except for amounts to be applied to the payment of costs of issuance)
will be used for local governmental activities of the Borrower.
(2) The aggregate face amount of all “tax-exempt bonds” (including
warrants, contracts, leases and other indebtedness, but excluding private activity
bonds) issued by or on behalf of the Borrower and all subordinate entities thereof
during 2018 is reasonably expected not to exceed $5,000,000. To date in 2018,
the Borrower has not issued any tax-exempt bonds.
(b) If notwithstanding the provisions of paragraph (a) of this Section 10.4, the
arbitrage rebate provisions of Section 148(f) of the Code apply to the Series 2018 Bond,
the Borrower hereby covenants and agrees to make the determinations, retain records and
rebate to the United States the amounts at the times and in the manner required by said
Section 148(f).
Information Reporting. The Borrower shall file with the Secretary of the Section 10.5
Treasury, not later than February 15, 2019, a statement concerning the Series 2018 Bond
containing the information required by Section 149(e) of the Code.
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“Qualified Tax-Exempt Obligation.” Pursuant to Section 265(b)(3)(B)(ii) Section 10.6
of the Code, the Borrower hereby designates the Series 2018 Bond as a “qualified tax-exempt
obligation” for purposes of Section 265(b)(3) of the Code. The Borrower has not designated any
obligations in 2018, other than the Series 2018 Bond, under Section 265(b)(3). The Borrower
hereby represents that it does not anticipate that obligations bearing interest not includable in
gross income for purposes of federal income taxation under Section 103 of the Code (including
refunding obligations as provided in Section 265(b)(3) of the Code and including “qualified
501(c)(3) bonds” but excluding other “private activity bonds,” as defined in Sections 141(a) and
145(a) of the Code) will be issued by or on behalf of the Borrower and all “subordinate entities”
of the Borrower in 2018 in an amount greater than $10,000,000.
ARTICLE XI
CONTINUING DISCLOSURE
The Borrower understands and acknowledges that the DNRC is acquiring the Series 2018
Bond under the Program pursuant to which the State issues from time to time State Bonds to
provide funds therefor. The Borrower covenants and agrees that, upon written request of the
DNRC from time to time, the Borrower will promptly provide to the DNRC all information that
the DNRC reasonably determines to be necessary or appropriate to offer and sell State Bonds or
to provide continuing disclosure in respect of State Bonds, whether under Rule 15c2-12 (17
C.F.R. § 240.15c2-12) promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, or otherwise. Such information shall include,
among other things and if so requested, financial statements of the Borrower prepared in
accordance with generally accepted accounting principles promulgated by the Financial
Accounting Standards Board as modified in accordance with the governmental accounting
standards promulgated by the Governmental Accounting Standards Board or as otherwise
provided under Montana law, as in effect from time to time (such financial statements to relate to
a fiscal year or any period therein for which they are customarily prepared by the Borrower, and,
if for a fiscal year and so requested by the DNRC, subject to an audit report and opinion of an
accountant or government auditor, as permitted or required by the laws of the State). The
Borrower will also provide, with any information so furnished to the DNRC, a certificate of the
Mayor and the City Clerk-Treasurer to the effect that, to the best of their knowledge, such
information does not include any untrue statement of a material fact or omit to state any material
fact required to be stated therein to make the statements made, in light of the circumstances
under which they are made, not misleading.
ARTICLE XII
MISCELLANEOUS
Notices. All notices or other communications hereunder shall be Section 12.1
sufficiently sent or given and shall be deemed sent or given when delivered or mailed by
certified mail, postage prepaid, to the parties at the following addresses:
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DNRC: Department of Natural Resources and Conservation
1539 Eleventh Avenue
P. O. Box 201601
Helena, Montana 59620-1601
Attn: Conservation and Resource
Development Division
Trustee: U.S. Bank National Association
c/o Corporate Trust Services
1420 Fifth Avenue, 7th Floor
Seattle, Washington 98101
Attn: Corporate Trust Department
Borrower: City of Laurel
115 West First Street
Laurel, Montana 59044
Attn: City Clerk-Treasurer
Any of the above parties may, by notice in writing given to the others, designate any
further or different addresses to which subsequent notices or other communications shall be sent.
Binding Effect. This Supplemental Resolution shall inure to the benefit of Section 12.2
and shall be binding upon the DNRC, the Borrower and their respective successors and assigns.
Severability. If any provision of this Supplemental Resolution shall be Section 12.3
determined to be unenforceable at any time, it shall not affect any other provision of the
Resolution or the enforceability of that provision at any other time.
Amendments. This Supplemental Resolution may not be effectively Section 12.4
amended without the written consent of the DNRC.
Applicable Law. This Supplemental Resolution shall be governed by and Section 12.5
construed in accordance with the internal laws of the State.
Captions; References to Sections. The captions in this Supplemental Section 12.6
Resolution are for convenience only and do not define or limit the scope or intent of any
provisions or Sections of this Supplemental Resolution. References to Articles and Sections are
to Articles and Sections of this Supplemental Resolution, unless the context otherwise requires.
No Liability of Individual Officers, Directors or Trustees. No recourse Section 12.7
under or upon any obligation, covenant or agreement contained in this Supplemental Resolution
shall be had against any director, officer or employee, as such, past, present or future, of the
DNRC, the DEQ or the Trustee, either directly or through the DNRC, the DEQ or the Trustee, or
against any officer, or member of the governing body or employee of the Borrower, past, present
or future, as an individual so long as such individual was acting in good faith. Any and all
personal liability of every nature, whether at common law or in equity, or by statute or by
constitution or otherwise, of any such officer or member of the governing body or employee of
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the DNRC, the Trustee or the Borrower is hereby expressly waived and released by the Borrower
and by the DNRC as a condition of and in consideration for the adoption of this Supplemental
Resolution and the making of the Loan.
Payments Due on Holidays. If the date for making any payment or the last Section 12.8
date for performance of any act or the exercise of any right, as provided in this Supplemental
Resolution or the Series 2018 Bond, shall not be Business Day, such payments may be made or
act performed or right exercised on the next succeeding Business Day with the same force and
effect as if done on the nominal date provided in this Supplemental Resolution or the Series 2018
Bond.
Right of Others To Perform Borrower’s Covenants. In the event the Section 12.9
Borrower shall fail to make any payment or perform any act required to be performed hereunder,
then and in each such case the DNRC or the provider of any Collateral Document may (but shall
not be obligated to) remedy such default for the account of the Borrower and make advances for
that purpose. No such performance or advance shall operate to release the Borrower from any
such default and any sums so advanced by the DNRC or the provider of any Collateral
Document shall be paid immediately to the party making such advance and shall bear interest at
the rate of ten percent (10.00%) per annum from the date of the advance until repaid. The
DNRC and the provider of any Collateral Document shall have the right to enter the 2018 Project
or the facility or facilities of which the 2018 Project is a part or any other facility which is a part
of the System in order to effectuate the purposes of this Section.
Authentication of Transcript. The officers of the Borrower are hereby Section 12.10
authorized and directed to furnish to the DNRC and to Bond Counsel certified copies of all
proceedings relating to the issuance of the Series 2018 Bond and such other certificates and
affidavits as may be required to show the right, power and authority of the Borrower to issue the
Series 2018 Bond, and all statements contained in and shown by such instruments, including any
heretofore furnished, shall constitute representations of the Borrower as to the truth of the
statements of fact purported to be shown thereby.
Effective Date. This Supplemental Resolution shall take effect Section 12.11
immediately.
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Adopted by the City Council of the City of Laurel, Montana, on this 4th day of
December, 2018.
____________________________________
Mayor
Attest: ________________________________
City Clerk-Treasurer
(SEAL)
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A-1
APPENDIX A
Description of the 2018 Project
The 2018 Project generally consists of design, engineering and construction of various
improvements to the System, including replacement of the flocculation and sedimentation basins with
covered basins; providing for automatic sludge removal in the sedimentation basins; installation of
settled water pumping station to serve industrial uses; potential relocation of the Cherry Hills booster
station; and related improvements.
Estimated 2018 Project Budget
Source: TSEP
Renewable
Resource
Grant
Series
2018 Bond City CHS -
WTP
CHS -
River Bank
& Security
Total
All Sources
Personnel Costs $0 $0 $0 $1,000 $0 $0 $1,000
Office Costs $0 $0 $0 $1,800 $0 $0 $1,800
Professional Services $21,500 $0 $0 $31,500 $0 $0 $53,000
Legal Costs $0 $0 $0 $2,500 $0 $0 $2,500
Audit Fees $0 $0 $0 $7,000 $0 $0 $7,000
Travel & Training $0 $0 $0 $1,500 $0 $0 $1,500
Loan Reserves $0 $0 $0 $156,969 $0 $0 $156,969
Bond Counsel and Related Costs $0 $0 $0 $17,000 $0 $0 $17,000
Land Acquisition $0 $0 $0 $40,000 $0 $0 $40,000
Engineering Design - Sed Basins $0 $0 $0 $373,000 $120,000 $0 $493,000
Engineering Revise Plans &
Rebid - Sed Basins $0 $0 $0 $50,000 $0 $0 $50,000
Engineering Construction
Admin - Sed Basins $110,000 $0 $0 $390,000 $125,000 $0 $625,000
Engineering Design & CA -
Cherry Hills Booster Sta. $0 $0 $0 $50,000 $0 $0 $50,000
Construction - Cherry Hills
Booster Station $0 $0 $0 $200,000 $0 $0 $200,000
Construction - Sedimentation
Basins $368,500 $125,000 $4,170,697 $1,500,000 $1,555,000 $100,000 $7,819,197
Contingency $0 $0 $750,303 $0 $0 $0 $750,303
Total Project Costs $500,000 $125,000 $4,921,000 $2,822,269 $1,800,000 $100,000 $10,268,269
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B-1
APPENDIX B
[Form of the Series 2018 Bond]
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF YELLOWSTONE
CITY OF LAUREL
WATER SYSTEM REVENUE BOND
(DNRC DRINKING WATER STATE REVOLVING LOAN PROGRAM)
SERIES 2018
R-1 $4,921,000
FOR VALUE RECEIVED, CITY OF LAUREL, MONTANA (the “Borrower”), a
duly organized municipal corporation and political subdivision of the State of Montana,
acknowledges itself to be specially indebted and, for value received, hereby promises to pay to
the Department of Natural Resources and Conservation of the State of Montana (the “DNRC”),
or its registered assigns, solely from the Debt Service Account of its Water System Fund, the
principal sum equal to the sum of the amounts entered on Schedule A attached hereto under
“Total Amount Advanced,” with interest on each such amount from the date such amount is
advanced hereunder at the rate of two percent (2.00%) per annum on the unpaid balance until
paid. In addition, the Borrower shall pay an Administrative Expense Surcharge and a Loan Loss
Reserve Surcharge on the outstanding principal amount of this Bond each at the rate of twenty-
five hundredths of one percent (0.25%) per annum, respectively. Principal, interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January 1 and July 1 (each a “Loan Repayment Date”)
commencing July 1, 2019 and concluding on January 1, 2039. Each installment shall be in the
amount set forth opposite its due date in Schedule B attached hereto under “Total Loan
Payment.” The portion of each such payment consisting of principal, the portion consisting of
interest, the portion consisting of Administrative Expense Surcharge, and the portion consisting
of Loan Loss Reserve Surcharge shall be as set forth in Schedule B attached hereto. Upon each
disbursement of 2018 Loan amounts to the Borrower pursuant to the Resolution described below,
the DNRC shall enter (or cause to be entered) the amount advanced on Schedule A under
“Advances” and the total amount advanced under the Supplemental Resolution, including such
disbursement, under “Total Amount Advanced.” The DNRC shall prepare Schedule B and any
revised Schedule B, or cause Schedule B and any revised Schedule B to be prepared, as provided
in Section 5.1 of Resolution No. [_____]. Schedule B shall be calculated and recalculated on a
level debt service basis assuming an interest rate of two and one-half percent (2.50%) per annum.
Past-due payments of principal and interest and Administrative Expense Surcharge and Loan
Loss Reserve Surcharge shall bear interest at the rate of ten percent (10.00%) per annum, until
paid. Interest and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360-day year comprising 12 months of 30 days each. All payments
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B-2
under this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register, in lawful money of the United States of America.
This Bond is one of an issue of Water System Revenue Bonds of the Borrower
authorized to be issued in one or more series from time to time, and constitutes a series in the
maximum authorized principal amount of $4,921,000 (the “Series 2018 Bond”). The Series
2018 Bond is issued to finance a portion of the costs of the construction of certain improvements
to the water system of the Borrower (the “System”). The Series 2018 Bond is issued pursuant to
and in full conformity with the Constitution and laws of the State of Montana thereunto enabling,
including Montana Code Annotated, Title 7, Chapter 7, Parts 44 and 45, as amended, and
ordinances and resolutions duly adopted by the governing body of the Borrower, including
Resolution No. R97-48 of the City adopted on September 4, 1997 (the “Original Resolution”), as
amended and supplemented by Resolution Nos. R98-47, R03-26, R09-10, R09-124, R10-19,
R10-124, R12-95, R16-48, and _________, adopted by the City Council on August 18, 1998,
March 18, 2003, January 20, 2009, November 3, 2009, February 16, 2010, November 2, 2010,
November 20, 2012, July 5, 2016, and December 4, 2018, respectively (the Original Resolution,
as so amended and supplemented, the “Resolution”). Terms used with initial capital letters but
not defined herein have the meanings given them in the Resolution. The Series 2018 Bond is
issuable only as a single, fully registered bond. The Series 2018 Bond is issued on a parity with
the Borrower’s outstanding First Amended and Restated Water System Revenue Bond (DNRC
Revolving Loan Program), Series 2003 (the “Series 2003 Bond”), Water System Revenue Bond
(DNRC Drinking Water Revolving Loan Program), Series 2009A (the “Series 2009A Bond”)
Water System Revenue Bond (DNRC Drinking Water Revolving Loan Program), Series 2009C
(the “Series 2009C Bond”), and Water System Revenue Bond (DNRC Drinking Water State
Revolving Loan Program), Series 2016 (the “Series 2016 Bond”) (all such Bonds, collectively,
the “Outstanding Bonds”).
Reference is made to the Resolution for a more complete statement of the terms
and conditions upon which the Series 2018 Bond has been issued, the Net Revenues of the
System pledged and appropriated for the payment and security thereof, the conditions upon
which additional bonds may be issued under the Resolution and made payable from such Net
Revenues on a parity with the Outstanding Bonds (collectively with the Series 2018 Bond, the
“Bonds”) or otherwise, the conditions upon which the Resolution may be amended, the rights,
duties and obligations of the Borrower, and the rights of the owners of the Series 2018 Bond.
The Borrower may prepay the principal of the Series 2018 Bond only if (i) it
obtains the prior written consent of the DNRC thereto, and (ii) no Loan Repayment or
Administrative Expense Surcharge or Loan Loss Reserve Surcharge is then delinquent. Any
prepayment permitted by the DNRC must be accompanied by payment of accrued interest, and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge to the date of prepayment
on the amount of principal prepaid. If the Series 2018 Bond is prepaid in part, such prepayments
shall be applied to principal payments in inverse order of maturity.
This Series 2018 Bond, including interest thereon, is payable solely from the Net
Revenues pledged for the payment thereof and does not constitute a debt of the Borrower within
the meaning of any constitutional or statutory limitation or provision.
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B-3
The Borrower may deem and treat the person in whose name this Series 2018
Bond is registered as the absolute owner hereof, whether this Series 2018 Bond is overdue or not,
for the purpose of receiving payment and for all other purposes, and the Borrower shall not be
affected by any notice to the contrary. The Series 2018 Bond may be transferred as hereinafter
provided.
This Series 2018 Bond has been designated by the Borrower as a “qualified tax-
exempt obligation” pursuant to Section 265 of the Internal Revenue Code of 1986, as amended.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the Borrower will forthwith construct and complete the improvements to the System hereinabov e
described; that it will prescribe and collect reasonable rates and charges for all services and
facilities afforded by the System, including all additions thereto and replacements and
improvements thereof, and has created a special Water System Fund into which the gross
revenues of the System will be paid, and a separate and special Debt Service Account in that
Fund, into which will be paid each month, from and as a first and prior lien on the Net Revenues
of the System then on hand, an amount equal to not less than the sum of one-sixth of the interest
to become due within the next six months and one-twelfth of the principal to become due within
the next twelve months with respect to all Bonds payable semiannually from that Account; that
the Borrower has created a Reserve Account in such fund into which shall be paid additional Net
Revenues, after required credits to the Debt Service Account sufficient to maintain a reserve
therein equal to the Reserve Requirement; that the Debt Service Account will be used only to pay
the principal of, premium, if any, and interest on the Bonds and any other additional Bonds
issued pursuant to the Resolution on a parity therewith; that the rates and charges for the System
will from time to time be made and kept sufficient, to provide gross revenues adequate to pay
promptly the reasonable and current expenses of operating and maintaining the System and to
produce during each fiscal year Net Revenues in excess of such current expenses equal to 110%
of the maximum amount of principal and interest payable from the Debt Service Account in any
subsequent fiscal year; that additional Bonds and refunding Bonds may be issued and made
payable from the Debt Service Account on a parity with the Outstanding Bonds upon certain
conditions set forth in the Resolution, but no obligation will be otherwise incurred and made
payable from the Net Revenues of the System, unless the lien thereof shall be expressly made
subordinate to the lien of the Outstanding Bonds and additional parity Bonds on such Net
Revenues; that all provisions for the security of the holder of this Series 2018 Bond set forth in
the Resolution will be punctually and faithfully performed as therein stipulated; that all acts,
conditions and things required by the Constitution and laws of the State of Montana and the
ordinances and resolutions of the Borrower to be done, to exist, to happen and to be performed in
order to make this Series 2018 Bond a valid and binding special obligation of the Borrower
according to its terms have been done, do exist, have happened and have been performed in
regular and due form, time and manner as so required; and that this Series 2018 Bond and the
interest hereon are payable solely from the Net Revenues of the System pledged and
appropriated to the Debt Service Account and do not constitute a debt of the Borrower within the
meaning of any constitutional or statutory limitation or provision and the issuance of the Series
2018 Bond does not cause either the general or the special indebtedness of the Borrower to
exceed any constitutional or statutory limitation.
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B-4
IN WITNESS WHEREOF, the City of Laurel, Montana, by its governing body,
has caused this Bond to be executed by the signatures of the Mayor and the City Clerk-Treasurer,
and has caused the official seal of the Borrower to be affixed hereto, and has caused this Bond to
be dated as of the ______ day of ___________, 2018.
______________________________________
Mayor
(SEAL)
_______________________________________
City Clerk-Treasurer
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B-5
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the City Clerk-Treasurer as Registrar, has duly noted the transfer on the Bond and recorded the
transfer on the Registrar’s registration books. The Borrower shall be entitled to deem and treat
the person in whose name this Bond is registered as absolute owner thereof for all purposes,
notwithstanding any notice to the contrary. Payments on account of the Bond shall be made only
to the order of the registered holder thereof, and all such payments shall be valid and effectua l to
satisfy and discharge the Borrower’s liability upon the Bond to the extent of the sum or sums so
paid.
REGISTER
The ownership of the unpaid principal balance of this Bond and the interest accruing
thereon is registered on the books of the City of Laurel, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder City Clerk-Treasurer
, 2018 Department of Natural
Resources and Conservation
1539 Eleventh Avenue
Helena, MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The City Clerk-Treasurer of the City, acting as Registrar, has transferred, on the books of
the City, on the date last noted below, ownership of the principal amount of and the accrued
interest on this Bond to the new registered holder noted next to such date, except for amounts of
principal and interest theretofore paid.
Date of Transfer
Name of New
Registered Holder
Signature of
Registrar
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B-6
FORM OF ASSIGNMENT
For value received, this Bond is hereby transferred and assigned by the undersigned
holder, without recourse,
to on this day
of , .
By:
(Authorized Signature)
For:
(Holder)
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B-7
SCHEDULE A
SCHEDULE OF AMOUNTS ADVANCED
Date Advances
Total Amount
Advanced Notation Made By
- 55 -
B-8
SCHEDULE B
Loan Loss
Administrative Reserve Total Loan
Date Principal Interest Expense Surcharge Surcharge Payment
- 56 -
C-1
APPENDIX C
ADDITIONAL REPRESENTATIONS AND COVENANTS
None
- 57 -
Backup material for agenda item:
Resolution - Variance Request: George Eastman
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5
9
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6
0
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6
1
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R18-___ Permission for Alternative Boulevard Maintenance at 519 5th Avenue
RESOLUTION NO. R18-___
A RESOLUTION OF THE CITY COUNCIL GRANTING PERMISSION FOR A PROPERTY
OWNER TO UTILIZE DECORATIVE GRAVEL AND ROCK ALONG A PORTION OF THE
BOULEVARD ADJACENT TO THE OWNER’S
PROPERTY LOCATED IN THE CITY OF LAUREL.
WHEREAS, the owner of the property located at 519 5th Avenue, in the City of Laurel, desires to
change a portion of the boulevard located along the 6th Street portion of his property from grass to
decorative gravel and rock; and
WHEREAS, Chapter 12.32.010 of the Laurel Municipal Code Laurel currently requires all
boulevard’s to be kept in grass and trees unless specific permission is granted for other purposes; and
WHEREAS, the property owner has filed a written request, in the attached letter which is hereby
incorporated herein, seeking the City Council’s permission to install decorative gravel and rock instead of
the existing grass in the boulevard along the 6th Street portion of his property; and
WHEREAS, based on the location of the request, the City Council finds no reason to deny the
request since the overall purpose of the City Code will remain unaffected regardless of the exception
granted the property owner.
NOW THEREFORE BE IT RESOLVED the City Council of Laurel hereby grants permission,
pursuant to Chapter 12.32.010 of the Laurel Municipal Code, to the property owner at 519 5th Avenue,
Laurel Montana, to change a portion of the boulevard located along 6th Street near the property from grass
to decorative gravel and rock; and
BE IT FURTHER RESOLVED, if the property owner removes the gravel and rock, he/she shall
return the same to grass. Tree Planting shall be in accordance with the Laurel Municipal Code.
Introduced at a meeting of the City Council on December 4, 2018, by Council Member _____________.
PASSED and ADOPTED by the City Council of the City of Laurel, Montana, this 4th day of December
2018.
CITY OF LAUREL
______________________________
Thomas C. Nelson, Mayor
ATTEST:
_______________________________
Bethany Langve, Clerk-Treasurer
APPROVED AS TO FORM:
_______________________________
Sam Painter Civil City Attorney
- 62 -
Backup material for agenda item:
Draft Council Agenda 12.4.2018
- 63 -
AGENDA
CITY OF LAUREL
CITY COUNCIL MEETING
TUESDAY, DECEMBER 04, 2018
6:30 PM
COUNCIL CHAMBERS
NEXT RES. NO.
R18-82
NEXT ORD. NO.
O18-02
WELCOME . . . By your presence in the City Council Chambers, you are participating in the process of representative
government. To encourage that participation, the City Council has specified time s for citizen comments on its agenda -- once
following the Consent Agenda, at which time citizens may address the Council concerning any brief community
announcement not to exceed one minute in duration for any speaker; and again following Items Removed fro m the Consent
Agenda, at which time citizens may address the Council on any matter of City business that is not on tonight’s agenda. Each
speaker will be limited to three minutes, unless the time limit is extended by the Mayor with the consent of the Council.
Citizens may also comment on any item removed from the consent agenda prior to council action , with each speaker limited
to three minutes, unless the time limit is extended by the Mayor with the consent of the Council. If a citizen would like to
comment on an agenda item, we ask that you wait until the agenda item is prese nted to the Council by the Mayor and the
public is asked to comment by the Mayor. Once again, each speaker is limited to three minutes.
Any person who has any question concerning any agenda item may call the City Clerk-Treasurer's office to make an inquiry
concerning the nature of the item described on the agenda. Your City government welcomes your interest and hopes you will
attend the Laurel City Council meetings often.
Pledge of Allegiance
Roll Call of the Council
Approval of Minutes
1. City Council Minutes of November 20, 2018
Correspondence
Council Disclosure of Ex Parte Communications
Public Hearing
Consent Items
NOTICE TO THE PUBLIC
The Consent Calendar adopting the printed Recommended Council Action will be enacted with one vote. The Mayor will
first ask the Council members if any Council member wishes to remove any item from the Consent Calendar for
discussion and consideration. The matters removed from the Consent Calendar will be considered individually at the end of
this Agenda under "Items Removed from the Consent Calendar." (See Section 12.) The entire Consent Calendar, with the
exception of items removed to be discussed under "Items Removed from the Consent Calendar," is then voted upon by roll
call under one motion.
2. Claims for the month of November 2018.
3. Approval of Payroll Register for PPE 11/18/18 totaling $176,103.90.
4. Receiving the Committee/Board Minutes into the Record:
Ceremonial Calendar
Reports of Boards and Commissions
Audience Participation (Three-Minute Limit)
Citizens may address the Council regarding any item of City business that is not on tonight’s agenda. Comments regarding
tonight’s agenda items will be accepted under Scheduled Matters. The duration for an individual speaking under Audience
Participation is limited to three minutes. While all comments are welcome, the Council will not take action on any item not
on the agenda.
Scheduled Matters
5. Airport Authority Appointment for a five-year term ending 12/31/2023.
- 64 -
Mark Webb
Thomas Boyce
Jame Swensgard
6. Appointment of Mardie Spalinger to Laurel Urban Renewal Agency for a four -year term
ending 12/31/2022.
7. Resolution No. R18-__: A resolution of the City Council resetting the January 1, 2019, Council
Meeting to January 2, 2019.
8. Arbor Day Proclamation 2019
9. Resolution - DNRC SED Basin Loan
10. Resolution No. R18-__: A resolution of the City Council granting permission for a property
owner to utilized decorative gravel and rock along a portion of the boulevard adjacent to the
owner's property located in the City of Laurel.
Items Removed From the Consent Agenda
Community Announcements (One-Minute Limit)
This portion of the meeting is to provide an opportunity for citizens to address the Council regarding community
announcements. The duration for an individual speaking under Community Announcements is limited to one minute. While
all comments are welcome, the Council will not take action on any ite m not on the agenda.
Council Discussion
Council members may give the City Council a brief report regarding committees or groups in which they are involved.
Mayor Updates
Unscheduled Matters
Adjournment
The City makes reasonable accommodations for any known disability that may interfere with a person’s ability to
participate in this meeting. Persons needing accommodation must notify the City Clerk’s Office to make needed
arrangements. To make your request known, please call 406-628-7431, Ext. 2, or write to City Clerk, PO Box 10,
Laurel, MT 59044, or present your request at City Hall, 115 West First Street, Laurel, Montana.
DATES TO REMEMBER
- 65 -