§ 23-126. Authorization and recitals.

(a)

General. Under the provisions of MCA tit. 7, ch. 7, pt. 44, the city is authorized to issue and sell its revenue bonds payable during a term not exceeding 40 years from their date of issue, to provide funds to finance the reconstruction, improvement, betterment and extension of its sewer system, provided that the bonds and the interest thereon are to be payable solely out of net income and revenues to be derived from rates, fees and charges for the services, facilities and commodities furnished by the undertaking, and are not to create any obligation for the payment of which taxes may be levied except to pay for services provided by the undertaking to the city itself.

(b)

System, project and financing. The city owns and operates pursuant to law a municipal sewer system ("the system"). The city has no bonds or obligations presently outstanding payable from or secured by the revenues of the system and there are no other liens on or pledges of the revenues. After conducting various studies, the council has determined that it is necessary for the city to improve the system by the construction of an interceptor line and a municipal sewage treatment plant ("the project"). Morrison-Mairle, Inc., the city's consulting engineer, has designed the project, and the city has duly advertised for and received construction bids for the project and has awarded contracts therefor to Sornsan Construction of Fargo, North Dakota, and Sletten Construction Company of Great Falls, Montana. The estimated cost of the project is as follows:

Construction Contract		$3,951,550.00
Engineering and Administration		330,125.00
Contingencies		118,325.00
	Total	$4,400,000.00

 

The city has received commitments from the Environmental Protection Agency for grants in the amount of approximately $3,179,775.00, and presently has on hand in its sewerage fund and available and appropriated to the project the sum of $170,225.00. The city has authorized the issuance and sale of $1,050,000.00 sewer system revenue bonds, series 1979 ("the series 1979 bonds") of the city to finance the remaining costs of the project.

(c)

Sale of series 1979 bonds. At a public sale duly called and held on October 30, 1979, for the series 1979 bonds, the lowest responsible bidder was Foster and Marshall, Inc., of Seattle, Washington ("the purchaser"), and the purchaser was awarded the sale of the series 1979 bonds. The city shall proceed to issue and deliver the series 1979 bonds in accordance with the provisions of this division.

(Code 1981, § 3.08.010)