Loading...
HomeMy WebLinkAbout1998-04-13 98-169 ORDERCOBMCIL ACTION Bate: 4-13-98 It= Ra O& --Lk Itm/BWjacti OSOPR Authorizing an Issue of up to $350,000 Aggregate Principal Amount of General Obligation Bends, Notes in Anticipation Thereof and a Tax Levy Therefor for the remodeling and renovation of a portion of the shop area of Bangor High School to convert such apace into apPzoximately five olaeerrome. Respoweible Department: finance Commentary: The attached order would authorize the i s part of our annual September borrowup borrowing, of to $350,000 to fund the conversion of eexisting Shop square feet Of existinShop apace to five classrooms; the High School. The School Committee voted to request this authorization at their regular meeting on March 16, 1998. Attendance at the High School is at or near record highs, many of the department's educational initiatives have and will result in smaller class g sizes, and the need for additional apace has become preevin.This plan represents the least inexpensive Of the alternatives that had Geon considered to address this Situation. This, combined with the order to Issue up to $425,000 of bonds c0 fund the CNP project (Council Order 97-411), would bring to $775,000 the am:unt oY GO bonds thus far authorized for the September issue. BSPAR Nnugex'e Convents; CITY MANAGER Information, Order,Associated pub Order, public notice cf hearing notice Budget AppiovaL 5'INANCS DIRECTOR GBaI APPa'oval: F�olf /Jos:<a( ' wild 7P Ji« O�YMaF L^' VO�S�S 5 4 CITY SOLICITOR U Introduced For rot( (Rl1 !' M Pusaga —X first Reeding Paga_Sf_ Referral as, rfnance Carrier" 98-169 Aadgnd 4o Coeditor Tyler April 13, 1998 CITY OF BANGOR o AUTHORIZING THE ISSUANCE OF UP TO $350,000 AGGREGATE (TITLE.) �EiIEYe_.............PRINCIPAL AMOUNT OFfiFNERAL OBLIGATION BONIS, NOTES IN ANTICIPATION THEREOF AND A TAX LEVY THEREFOR By tAe City faxvil of Inds 48W of Ranier: ORDRRRD, MT Pursuant to 30-A M.R.S.A. §5972, Section 8 of Article VI ofthe City Charter (Private and Special Laws of 1931, Chapter 56) and All amendments tbereofand acts additional thereto, and all other authority Hereto enabling, there is hereby authorized the issue and sale at one time and from time to time up ro Three Hundred Fifty Thousand Dollars ($350,000) aggregate principal amount of general obligation bonds of the City of Bangor, plus W m three pert¢nt(30/,)oftheprincipalamouotofmchissuemseriesmfundissuanccc N. Theproceeds derived from the sale of said bonds, including premium, ifany, shall be used and are hereby appropriated to pay aportion of the costs (as bound defend) of the following project (the Projeef): ♦ Remodeling and renovation of a portion of the shop men of Bangor High School to convert such space into approximately five classrooms. THAT Hre estimmed weighted period of utility for the property constituting the Projecttobeftn edwiilrtheproceedsofsaidbondsisherebydetemmnedtobeatleasttea (lo) years. THAT the date, maturities, denominations, interest ime ormtes, place of Payment, and other details of each issue of said bonds, including the timing and provision for thein sale and award and the selection of an underwriter, shall be determiz d by the Finance Director with the approval of the Finance Committee and the Chairman of the City Council. THAT the bonds hereby rubberized my be made subject m call for redemption, with or without a premium, before the date fixed for final payment of the bonds, as provided in 30-A M.R.S.A. §5]]2(6), as amended, as shall be determined by the Finance Director with the approval of the Finance Committee. THAT said bonds shall be signed by the Finance Director, countersigned by the Chairman of the City Council, sealed wibb the seal of the City, attested by its Clerk, and shall be in such form and contain such terms and provisions not inconsistent herewith as they may approve, their approve]on be conclusively evidenced by their execution thereof Any issue of bonds may be consolidated with and issued At Ilse same time as any other issue of bonds authorized prior to their issuance, and the bonds may be divided into multiple series and issued in separate plamu offmmm& with the approved of the Finance Committee and the Chairman of the City Council. IN CTTY COUNCIL April 13, 1998 First Reading 98-169 J ORDER ITY LERK .Title, Authorizing the Issuance of up to $350,000 Aggregate Principal Amount of IN CITY COUNCIL General Obligation Bonds. Notes in ant - April n, 1998 - SEfpdtSdri'Tfieiedf'drid'i'tez'Cedy'N4iefor Public Hearing Opened No ComPublic encs from ethear General .... ... ...... Public Public e: Bye. Closed Passed ar Vote: 9 yea Councilors voting yea: Aube, Aeei�ed to Leen. Palmer, Ley. Parnham. Rohmav, Tyler 5 Woodcock Q T (/ Comcilman I TY 98-169 PUBLIC HEARING CITY OF BANGOR General Obligation Bonds Not to Exceed $350,000 For the Addition of Classrooms at Bangor High School The Bangor City Council will hold a public hearing at its regular meeting at 7:30 PM on Monday, April 27, 1998 in the City Council Chambers, on the third floor of City Hall, 73 Harlow Street, Bangor, Maine, for the purpose of hearing public comment on a proposed general obligation bond of up to $350,000 to be issued as part of the City's annual capital borrowing, currently scheduled for September, 1998. Proceeds will be used to fund the remodeling and renovation of a portion of the Bangor High School shop area to convert such space into approximately Ove classrooms. A copy of the entire order is available to the public in the City Clerk's Office at Bangor City Hall. The public is invited to address the Council on this proposed bond issue. Gail Campbell City Clerk THAT, if the bonds are issued on atm exempt basis, the officers executing the bonds be end hereby are individually authorized to covermnt and agree, on behalf of the City, for the benefit of the holders of such bonds, that the City will file my required reports and take any other action that may be necessary to ensure that interest on the bonds will remain exempt from federal income remains and that the City will refrain from any action that would cause interest on the bonds to be subject in federal income taxation. THAT the officers executing the bonds be and hereby are individually authorized W covenant, rectify, and agree, on behalf of the City, for the benefit of the holders of such bonds, that the City will file my required reports, make any ammal financial or material event disclosure, and take my other action that may be necessary in ensure that the disclosure requvunmts imposed by Rule 15c2-12 of the Securities and Exchange Commission, if applicable, are met. THAT, if the bonds are issued on a tae exempt basis, the Theme Director be and hereby is authorized and empowered to take all such action as may be necessary to designate the bonds as qualified tax-exempt obligations for purposes of Section 265(6) of the Code; it being the City Comcfi's iMntion that, to the extent permitted under the Code, the bonds be Section 265(h) designated and that the Finance Director with advice of bond counsel, make the required Section 265(6) election with respect to such bonds to the extent that the election may be available and advisable as detemuaed by the Finance Director. THAT the term "cost" or "casts" as used herein and applied to the Project, or my portionthemf,includes,butisnotfimitedto: (1) the purchase price or acquisition cost of all or my portion of the Project; (2) the cast of construction, building, alteration, enlargement, recorstmction rnmvation, improvement, and equipping of the Project; (3) the cost of all appurtenances and other facilities either am above, or under the ground which are used or usable in correction with the Project; (4) the cost of landscaping, site preparation, and remodeling of my improvements or facilities; (5) the cost of all labor, materials, building systema machinery and egmugnent; (6) the cost of land, structures, real Property interests, rights, easements, and franchises acquired in mtmection with the Project; (7) the cost of all utility mansions and site improvements and development; (8) the cost of planning, developing, promotion of specifications, surveys, engineering, feasibility studies, legal and other professional services associated with the Project; (9) the cost of environmental studies and assessments; (10) the cost of financing charges and issuance costs, including premiums for insurance, interest priori and during construction, underwriters' fees and costs, legal road accounting fees and costs, application fires, and other fees and expenses relating to the financing transaction; and (11) the cost of all other financing authorized hereunder, whether related or unrelated to the foregoing. THAT the investment earnings on the proceeds of the heads, if my, and the excess proceeds of the bonds, if my, be and hereby are appropriated for the following Purposes, such proceeds to be held and applied in the following order of priority 1. To my costs of the Projertmexcessofthe principal amomt ofthebonds; 2. Ifthe bomuis are issued on a tax exemptbasis, in uccomdence with applicable terms and provisions of the Arbitrage and Use of Proceeds Certificate delivered in connection with the sale of the bonds including, to the extent permitted thereunder, on the City's General Fuad. 98-169 THAT pursuant to 30-A M.R.S.A. §5772, Section 10 of Article W of the City Charter and any utterer authority thereto enabling, the Finance Directs, with approval of the Finance Committee and the Chairman of the City Council, is hereby authsi" to issue temprrary bonds of the City in anticipation of the forgoing bond issue, said bonds to be signed by the Finance DmomS courmud gad by the Chairman of the City Council, sealed with the seal of the City, attested by its Clerk, and othmvise to be in such torr and contain such terms and provisions including, without limitation, maturities, denominations, interest rte or rates, place of payment, and other details as they shall approve, their approval to be conclusively evidenced by their execution thereof. THAT any temporary bonds (including bonds in renewal thereof) authorized to be issued under this Order may be issued in combination with temporary bonds (including bonds in removal thereof) and bonds authorized to he issued by the City Council at my time prior to the date of issuance of the temporary bonds. THAT the Finance Director be and hereby is authorized to select the registrar, paying ager, and t ster agent (the "Transfer Agee) for the bonds and m execute and deliver such contrera and agreements as may be necessary or appropriate to secure their services. THAT the bonds shall be transferable only on the registration books of the City kept by the transfer ager, and said principal amount of the bonds of the same maturity (but not of other maturity), upon surrender thereof at the principal office of the transfer agent, with a written instrument oftrmsfa satisfactory to the [master agent duly executed by the registered owner or his or her attorney duty authorized in writing. THAT the Fiance Director and Chairman of the City Council from came to time shall execute such bonds as may be required an provide for exchanges or transfers of bonds as heretofore authorized, all such herds to bear the original signature of the Fhance Director and Chairman of the City Council, and incase any officer of the City whose signature appears on any bond shall cease to be such officer before the deliver of said bond, such signature shell nevertheless be valid and sufficient for all purposes, the sane as if such officer had remained in office until delivery thereof. THAT upon each exchange or minister of bonds, the City and transfer agent shall make a charge suffscier to cover my tax, fee, or other governmental charge required to be paid with respect to such tramter or exchange, and subsequent to the fast exchange or transfer, the cost of which shall be home by the City, the cast of preparing new bonds upon exchanges or transfers thereof shall be paid by the person requesting the some. THAT the bonds and notes issued in anticipation thereof be issued an either a taxable or a max -exempt basis, as determined by the Finance Director, with the approval of the Finance Committee THAT, ifmhe bonds are issued on a tax exempt basis, the officers executing the bonds be and hereby are individually authorized and directed to covenant and certify an behalf of the City that no pact of the proceeds of the issue and sale oftbe bonds authorized to be issued hereunder shall be used directly or indirectly to acquire my securities in obligations, the acquisition of which would cause such bonds to be "arbitrage bonds" within the meadng of Section 148 of the Imemd Revenue Cade of 1966, as amended (the "Code'). 99-169 THAT the Finance Director, Chairman of the City Council, Clerk, and other proper officials of flue City be, and hereby are, authorized and empowered in its name and on its behalf to do or cause m be done all such acts and things as may be necessary or desirable in order to effect the issuance, sale, and delivery of the bonds and notes as hereinbefore authorized. THAT if the Finance fireman, Chainmen of the City Council, m Clerk are for any reason unavailable to approve and execute the bonds or my related financing documents, the person or persons then acting in any such capacity, whether as an assistant, adeputy, or otherwise, is authorized to act for such official with the same force and effect as if such official had himself or herself performed such act. THAT in each of the years during which any of the bonds are outstanding, there shall be levied a tax in an amount which, with other revenues, if any, available for that purpose, shall be sufficient to pay the interest on said bonds, payable in such years, and the principal of such bonds maturing in each years. THAT, if the bonds are issued on a tux exempt basis, this Order mromfules a Declaration of Official Intent by de City pursuant or Treasury Regulation Section 1.150-2 at reimburse any original expenditures made on the project out of the General Fund or any other fund or account of the City.