HomeMy WebLinkAbout1998-07-27 98-309 ORDERCOUNCIL ACTION
Date: 7-27-96 Item Na 99-309
item/Subject: ORDER authorizing the issuance
Of UP to $4,000,400 aggregate
principal amount of general Obligation hands and/or notes in anticipation
thereof aM a tax levy therefor.
Responsible Department: Finance
Commentary: The attached order would authorize the issuance of debt to fund
the following projects:
Purchase of surplus housing in Capahart $1,370,000
Purchase of Affiliated Healthcare Building/Sylvan Road1 ,026,700
Replace waterfront bulkhead 350,000
Various parking facility improvements 346,100
Waterworks improvements 300,000
Roof replacement, at City Hall 203,000
Armory improvements 184,100
Local share/EACTS projects 119,500
ConstruaLlfiauly ad emergenct, dispatch Raster 10,1000
Total $4,000,400
These projects were identified and authorized by Council action during the
FY99 budget process. In addition, there are
Beral other projects for
which bond orders had previously been passed. There authorizations, and the
amounts to be included in the upcoming bond issue, are as follows:
Amount Amount to Be
Protects LZIA
cgs projects projects 97-025 x$5000,000 $1,166,200
Bangor High School project 98-169 350,000 350,000
CNF project 97-411 425,000 425,000
Thus, we will be issuing up to $5,941,600 in debt this year for the above
projecte. There are, however, some gue at ionable items, including the CNF
project (which the Council may or may not decide to proceed with, given the
recent Carpenter Associates Assessment) , and the expenditures associated
with the ENNC option on the waterworks ($1,026,700 for the Sylvan sued
purchase and $300,000 for waterworks improvements).
In either c r debt issuance this year will c two pieces. One
n
will be aactual public offering of up to $4,571,600 in tax-exempt bonds
for all but the purchase of the Capeart housing, which will be funded with
a private tax-exempt placement of OR to $1,370,000; we expect with a local
bank. (Dependfag upon hand counsel's opinion, we may add the Sylvan Road
purchase to the private placement, thereby deo asing the public offering t
$3,544,900 and increasing the private placement to $2,396,700.)
You should also be users that, for the first time i several years, w will
be selling our bonds in what is known a'sealed bid' process. This is in
contrast to our most recent sales, which Here an
a°negotiated° basis.
However, given o n
ongoing pre n the marketuplace, o Sound credit
rating and the increasing "size of our deals, we will now be able to access
98-309
what I expect will be corselet cheaper funds by actually putting our bonds
out to bid, rather than contracting with an underwriter for their purchase.
In this regard, we have issued an RFP for a financial advisory firm,
I recommend your approval
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DEPARTMENT HEAD
manag Co®ante:
CSTE MANAGER
Associated Infommmitiont
Order, public notice
Budget Approval:
FINANCE DIRECMR
Legal Approval: y
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CITY SOL ZCITDR
Introduced For
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98-309
Awigned to Councilor Tyler l,ly 27, 1998
CITY OF BANGOR
�p
AUTHORIZING THE ISSUANCE OF UP TO $4,000,400 AGGREGATE
(TIRE) Oruro..... ....... ... PRINCIPAL .AMOUNT . OE. GENERAL QFRJQATION BONDS AND/OR
NOTES IN ANTICIPATION THEREOF AND A TAX LEVY THEREFOR
By the City CounaR of lY Oft of Deeper:
ORDERED,
Pursuant to 30-A M.R.S.A. §5772, Section 8 of Article VI of the City Charter
(PrivaM Special Laws of 1931, Chapter 56) and all amendments thereof and acts additional
therdo, and all other authority thereto enabling, there is hereby authorized the issue and sale at one
time and from time to time up m Four Million Four Hundred Dollars ($4,000,400) aggregate
principal amount of general obligation bonds ofthe City of Bangor, plus up to three percent (3%)
oft pdncipalaaountofeachiwueorse estofuudissuamecoas. Theproceedsderivedfrom
the sale of said bonds, including Premium, ifamy, shall be used and arehereby appropriated to pay
aportionofthewsO(ahemindefined)ofthefollowingprojmU(the"P jests"):
• Purchase of surplus housing is Capehart $1,370,000
• Purchase of Attitudes Healthcare Building on Sylvan Road 1,026,700
• Replace waterfront bulkhead 350,000
• Various parking facility, improvements 346,100
• Waterworks improvements 300,000
• Roof replacement at City Hat 203,000
• Armory, improvements 184,100
• Local shae/BACTS ejects 119,500
• G t/egy'combined emmamcv dispatch center IIII WO
Total $,000,400
THAT the estimated weighted period of utility for the property constituting the Projects to
be financnd with the proceeds of said bonds is hereby determinedm be at least twenty (20) years.
THAT the date, maturities (not to exceed 20 Trans), denominations, interest rate or does (not
to exceed 8.5% per annum), place of payment, and other derails of each issue of said bonds,
including the timing and provision for their sale and award read the selection of an underwriter, shall
be determined by the Finance Director with the approval of the Finance Committee and the
Chairman of the City Council.
THAT the bonds hereby authorized may be made subject to call for redemption, with or
without a premium, before the Sae fixed for final payment of the bonds, as provided in 30-A
M.R.S.A. §5772(6), as amended, as shall be determined by the Finance Director with the approval
of the Finance Committee.
98-309
THAT, if the bonds are issued on a tax exempt basis, the oRrcas executing the bonds be and
hereby are individually authorized to covenant and agree, on behalf of the City, for the benefit of the
holders of such bonds, that the City will file any required permits and take any other action that may
be necessary to ensure that interen on the bonds will remain exempt from federal income taxation
and that the Citywill refrain from my action that would come interest on the bonds to be subject to
federal income common.
THAT the officers "muting the bonds be and hereby are individually authorized to
caveman, certify, and agree, on behalf of the City, for the benefit of the holders of such bonds that
the City will file any required reports, make any mmualfinancial or material event disclosure, and
take any other action that may be necessary to ensure that the disclosure requirements imposed by
Rule 15c2-12 of the Securities and Exchange Commission, if applicable, are mm.
THAT, if the bonds are issued on a tax exempt basis, the Finance Director be and hereby is
authorized and empowered to take all such action as may he necessary to designme the bonds as
qualified tax-exempt obligations for purposes of Samoa 265(b) of the Code; it being the City
Comtcit's intention that, to the extent permitted under the Code, the bonds be Section 265(6)
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 determined by the Firance Director.
THAT the tern"cost" or"coma" as used herein and applied to the Projects, or any portion
thereof, includes, bm is ret limited to: (1) the purchase price or acquisition cont of all or any portion
of the Projeots, (2) the cont of construction, building, alteration, enlargement, reconstruction,
renovation, improvement, and equipping of the Projects; (3) the cost of all appurtenances and other
facilities either on, above, or under the ground which me used or usable in connection with the
Projects; (4) the cast of landscaping, site preparation, and remodeling of any improvements or
facilities; (5) the coat of a labor, materials, building systems, machinery and equipment; (6) the cost
of land, structures, real Property interests, rights, casements, and fimahises acquired in connection
with the Projects; (7) the coat of all utility extensions and site improvements and developmrnq
(8) the cast of planning, developing, preparation of specifications, surveys, engineering, feasibility
studies, legal and other professional services associated with the Projects; (9) the cost of
environmental studies and assessments; (10) the cast of financing charges and issuance costs,
including premiums for insurance, interest prior to and during construction, underwriters' fees and
posts, legal and accounting hers and cost, application fees, and other fees end expenses relating to
the financing transaction; and (11) the cost of all other financing authorized heremder, whether
relined or unrelated to the foregoing.
THAT the inveshnent comings on the promxds of the bonds, if any, and the excess proceeds
of the bonds, if any, 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 Project in excess of the principal amount of the bonds;
2. If the bonds are issued on a ax exempt basis, in accordance with applicable amts
and provisions of the Arbitrage and Use of Proceeds Certificate delivered in
corruption with the sale of the bonds including, to the extent permitted thereunder,
to the City's General Ford.
THAT the Finance Director, Chairman of the City Council, Clerk, and other proper officials
of the City he, and hereby are, authorized mad empowered in its name and on its behalf to do or cause
to 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 now as hereinbefore authorized.
THAT said bonds shall be signed by the Finance Director, murrersignd by the Chairman
of the City Council, sealed with the seal of the City, avoided by its Clark, and shall be in such Poen
and contain such dean and provisions not inconsistent herewith as they may approve, their approval
to be conclusively evidenced by their execution thereof Any issue of bonds may be consolidated
with and issued at the same time as any other issue of bonds militarized prior to their issuance, and
the bonds may be divided into multiple series and issued in sepamo plans of fiwruciug, with the
approval of the Finance Committee and the Chairman of the City Council.
THAT pursuant to 30,A M.R.S.A. §57¢, Section 10 of Article VI of the City Charter and
any other authority therew ewblmg, the Finance Direction, with approval of the Finance Committee
and the Chairman of the City Courwil, is hereby authoribed to issue temporary bonds of the City m
anticipation of the forgoing bond issue, said bonds to be signed by the Finance Director,
countersigned by the Chairman of the City Council, sea] d with the seal of the City, attested by its
Clark, and otherwise to be in such form and contain such terns and provisions including, without
limitation, maturities, denominmions, interest rate or renes, place of payment, and other details as
they shall approve, their approval in be conclusively evidenced by their execution thereof.
THAT any temporary bonds (including bonds in renewal tlsercof) authorized to he issud
under this Order may be issued m combination with temporary bonds (including bonds in renewal
thereof) and bonds authorized we be issued by the City Council at any time prior m the data of
issuance of the temporary bonds.
THAT the Finance Director be and hereby is authorized to select the registrar, paying agent,
and trausf agent (the `"frdnsfer Agmf) for the bonds and to execme and deliver such contracts and
agreements as may be necessary or appropriate w secure dteir services.
THAT the bonds shall be transferable only on the registration books of the City kept by the
transfer agent, 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 writ[m
instrument oftrmisf satisfactory to the transfer agent duty executed by the registered owner or his
or bar incomes duty authorized is writing.
THAT the Finance Director and Chairman of the City Council from time to time shall
exmme such bonds as may be required to provide for exchanges or transfers of bonds as heretofore
authorized, all such bonds to bear the original signature of the Finance Director and Chairman of the
City Council, and in case my officer of the City whose signature appears on any bard shall cease
to be such officer before the deliver of said bond, such signature shill nevertheless be valid and
sufficient for all purposes, the sane as if such officer had remained in office mail delivery thereof.
THAT upon each exchange or transfer of bonds, the City and transfer agent shall make a
charge suffrcumin, cover ary tax, fee, or other govemmer" charge required in be paid with respect
m such transfer or exchange, and subsequent to due frau exchange or number, the cost of which shall
he home by the City, the cost of preparing new bonds upon exchanges or transfers Hereof shall be
paid by the person requesting the same.
THAT the bonds and news issued in anticipation thereof be issued an either a notable or a
tax-exempt basis, as determined by the Finance Director, with the approval of the Finance
Committee.
THAT, if the bonds are issued an a tax exempt basis, the officers; executing the bonds be and
hereby are individually authorized and dread in covenant ad certify on behalf of me City that no
part of the proceeds of int issue and sale of the hands authorized in be issued hereunder shall be used
directly or indirectly ten acquire any securities or Obligations, the acquisition of which would cause
such bonds in be "arbitrage bonds' within the meeting of Section 148 of the Internal Revewe Code
of 1966, as amended (the "Code').
98-309
THAT if the Finance Director, Chairman of the City Council, or Clerk we for any reason
unavailable to approve and eaccule the bonds or any related financing documents, the person o
persons then acting in any such capacity, whether as an assistant, a deputy, or otherwise, is
suthoriud to act for such ufCtcho with the same force and effect as if such official had bimself or
herself performed such act.
THAT in each of the years during which any of the bonds are outstanding, Here shall be
levied a tax in an amount which, with other revenues, if my, available for Nat purpose, shall be
sufficient to pay the interest on said bonds, payable in such years, and the principal of such bonds
mamrsng in such years.
THAT, if the bonds are issued on a tax exempt basis, this Order constitutes a Declaration
of Official latest by the City paramour to Treasury Regulation Section 1.150-2 to reimburse any
original expenditures made on the projects out of the General Fund or any other fund or accmirn of
the City.
IN CITY COUNCIL
July 27, 1998
First Reading
Referred
FtooFinance
Committee
CITY RR
IN CITY COUNCIL
August 10, 1998
Motion for Passage Made 6
Seconded Vote: 8 yea, 1 absent
Councilors voting yes: Aube,
Baldacci, Crowley, Farnham,
Leen, Palmer, Rebmann d Tyler
Councilor Absent; Woodcock
Passed
xTY ens
98-309
ORDER
Title, Authorizing the Issuance of up
to $4,000,400 Aggregate Principal Amount
of General Obligation Bonds and/or Notes
'in OAnticlpation We2edi'ada 'a'rax ieiy
Therefor
......................................
G
Mzign,Yed�to^/OCouncilman
98-309
PUBLIC HEARING
CITY OF BANGOR
General Obligation Bonds Not to Exceed
$4,000,400
For Various Capital Projects
The Bangor City Council will hold a public hearing at its
regular meeting at 7:30 PM on Monday, August 10, 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 $4,000.400 to be issued as part of the City's annual
capital borrowing, currently scheduled for September, 1998.
Proceeds will be used to fund the following capital projects:
Purchase of surplus housing in Capehart $1,370,000
Purchase of Affiliated Healthcare
Building on Sylvan Road 1,026,700
Replace waterfront bulkhead 350,000
Various parking facility improvements 346,100
Waterworks improvements 300,000
Roof replacement at City Hall 203,000
Armory improvements 184,100
Local share/BACTS projects 119,500
Construct/equip combined emergency
dispatch center 101 000
Total $4,000,400
A copy of the entire order is available to the public in the City
Clerk's Office at Bangor City Hall. The public is inv0ed to
address the Council on this proposed bond issue.
ams 24, 1998 Gail Campbell
City Cleric