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(
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CITY SOLICITOR U
Introduced For rot( (Rl1 !' M
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—X first Reeding
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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.