Loading...
HomeMy WebLinkAbout1996-11-25 97-25 ORDERCOUNCIL ACTION Date: 11-25-96 Item No.: 97-25_ Item/Subjem: Authorizing an Issue of $5,000,000 Aggregate Principal Amount of Bonds and a Tax Levy Therefor Responsible Depmmrent Commentary: The City of Bangor received a $6,000,000 grant in 1994 from USEPA in We FY 1995 Appropriations Act. The grant was specifically for sludge management and disposal. The City subsaluently negotiated a private contract with Sawyer for sludge disposal. To preserve the grant, Ne City successfully petitioned Maine's Congressional delegation to clangs the language of the grarn to allow its use for CSO projects. EPA nquires Council Action that specifically incorporates the new language "for meeting combined sewer overflow rectuuements," replacing previous Coun it Action drat incorporated the "sludge management and disposed' language. - J tmeNHead Managers Commenmt> ,� tf &L&4AA °,rwS .. IL (s Oa To {I,rw�.9a.�atOrt w�a.�a.PnDP-Q.w.aa N�1aNa av suesrintnoA-Aa,wr,icP, duYhMvw9+dn.wMLM Mtlw. o CM More-----�49ya - Assacia Information:��y�,.,,;. :.0o.,cQyO Budget Approval: Fmorce Direc(w Legal Approval: Ciry Salrcda•v Ue� Introduced For: Elyassage Fust Resiling ❑ Referral Page _ of 97-25 Auigned to ConnNor Woodcock November 25, 1996 CITY OF BANGOR (TITLE.) (PrUrg........Authuriagan.Was of55,00op00Aggresgawprincipal Amount offlandawall Tax a.evy Therefor By the City Conten! of City efBanper: ORDERED, icy pursuen[to 30-A.M.R.S.A.§5'1]2, Sxdoo 8 ofArticle VI of the City Chub(Privism and Special Jaws of 1931, Chaplin 56) )rsl amentlments Wamf and acs additional thereto, and all olheramhoriry Naalo enabling, Mere is hereby authorittd the base and sale at one time mid from time b time of Five Million Dollmer ($5,000,000) aggregate principal summit of general obligation bonds of the City of Bangor. The proceeds derived from dm sok of said bonds, las pam,ium, if my, shop be used and busby appropriarert to pay Me cont fm meeting combmed newer overflow requirements. THAT, the estimated period of utility far As properly constituting the Roje t to be financed with that proxeds of said bonds is hely determined m be at least 20 years. THAT, Me due, maturidea, denamwati®, interest rete or abs, place of Townson and other details of each issue of said bonds, including provision for Meir sale and award and the selection of an underwriter, shell be detmmed by the passive Dbeclm with the approval of Me Fhmnce Committee and the Claimants of the City Council, and said wands "I be signed by the Fiume Dnecmr, cou[ersignei by the Chairman of Me City Council, sealed with the asel of the City, attuted by its Clerk, and be in such farm and cement such terns and provisions as they may approve, their approval to be conclusively evidenced by Mev extension thereof Any issue of bonds may no consolidated with and armed at the same tone many other tie of bonds mthArmed poor m their' and the bolls may be divided aro multiple series and firmed in separate plans of fancag, all as determined is the d' ueti in of Me Tammuz Timor, with she approval of the passive Committee and the Cluomm of the City Council. THAT, the bonds busby authorized may be made subject call for redemption, with or witiout premium, before Me duh fixed for find con e t of Me bonds, as provided in 3-A M KS A., §5]]2(6), as assured as shail be de erm iced by Me Fiance Dnectir with Me approval of me Firms" Committee and the Chairman of the City County. THAT, is each of she years during which any of the bonds are ouslandmg, Nere shall be levied araz an an amow[which, with other revenues, if my, available for that purpose, shall be surcaenrto pay the interest on said bonds, payable a such year, and Me pfcipal of such bonds retiring in earth you, THAT, punctum b 30-A M.R.S.A., §5772, Section 10 of Article VI of me City Chart and my other serially thereto enabling, the Finance Director with approval of the Finance Committee and rhe Charman of this City Council, is hereby authorized to laws tempormy nota of the City in andogatbn of As foregoing bond isom% mid met to be signed by Me Finmce Director, cnummsignN by the Chairman of the City Councit easter IN CITY COUNCIL November 25, 1996 First As din Y CLERK IN CITY COUNCIL December 9, 1996 Public Hearing Opened No Public Comments war e beard. Public Hearin Nation to [wend by Substitution Passed Passed As Amended by Sv6scitutlo T1 GLEX&f�'a 9)-25 ORDER Title, authorizing an Issue of $5,000.000 Aggregate Principal Amount of Bonds an a Ten Levy T exefox Uu—w't U' AeeiPed to ....w Councilman � 9]-25 SUBSTITUTE COPY Awipmd to Cosneeor CITY OF BANGOR (TITLE.) (Orbs..._ ......... Author,z ng, an. x e_of.,,.gs, 000, 000 ,Aggregate. Principal Amount of Bonds and a Tax Levy Therefor By 4W Oily Couvnl ofB,e City ofB4s . ORDERED, TWT WHERBAB pufsuent to Council Order 95-84 adopted February 13, 1995, the City Council of the City of Bangor previously authorized issuance of $5,000,000 aggregate principal amount of its General Obligation Bonds to finance the acquisition, development, and construction of a new composting facility for disposal of sludge from !to sewage treatment facility (the "Prior Project"); and WHEREAS the City now wishes to change the scope of the Prior Project to the design and construction of combined sewer overflow facilities (the "New Project'); NOW, THEREFORE, be it ORDERED by the City Council of the City of. Bangor THAT the first paragraph of Order No. 95-84 be and hereby is mended and replaced in its entirety to read as follows: Pursuant to 30-A M.R.S.A. 4 5773, Section 8 of Article VI of the City Cbarter (Private and Special Laws of 1931, Chapter 56) and all amendments thereto and acts additional thereto, and all other authority thereto enabling, there is hereby authorized the issue and sale at one time and from time t0 time of Five Million Dollars ($5,000,000) aggregate principal amount of general obligation bonds of the City of Bangor. The proceeds derived from the sale of said bonds, less premium, if any, shall be used and are hereby appropriated to pay the coats (as herein defined) of acquisition, development, and construction Of the New Project. THAT in all other respects, Order N0.95-94 is hereby ratified and approved as if more fully stated herein. 9)-25 - with the seal of the City, attested by its Clerk, and otherwise to. be in such form and contain. such terms and provisions, including without limitation, maturities, denominations, interest rate 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 mates (including notes to renewal thereof) authorized to be !good under this Order may be issued in combination with temporary stores (including notes in renewal thereof) and bonds authorized to be issued by the City Council at any time prior to the date of issuance of the temporary notes. THAT, the Finance Director be and hereby is authorized In appoint the registrar, paying agent and hamster agent (the'Transfer Agent") for the bonds of the City. THAT, the bonds issued hereunder shall be transferable only upon registration books of the City kept by the Transfer Agent, and said Bonds of one maturity may be exchanged lor- an equal aggregme principal amount of bonds of the same maturity (but not of another maturity) in the denomination of $5,000 m any multiple thereof, upon surrender thereof at the principal office of the Transfer Agent, with a writvn instrument of transfer satisfactory to da; Transfer Agent duly executed by the registered owner or his attorney duly authorized In wrifing. THAT, upon each exchange or transfer of the bonds, the City and the Transfer Agent shall make a charge sufficient w cover any tax, fce m other govermmenml charge required to be paid with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cost of which shall be born by the City, the cost of repairing new bonds upon exchanges or transfers thereof shall be paid by the person requesting the same. TIIAT, Be Finance Director wall the Chairman of the City Council be and hereby are authorized to undertake all now necessary to provide for the issuance and transfer of the bonds in book -cony form pursuant to the Depository Trust Company Book -Envy Only System, as an alternative to the provisions of the foregoing resolution regarding physical transfer bonds, and the Finance Director be and hereby is authorized and empuwared to error into a Letter of Representation or any other contract, agreement or understanding necessary or, in his opinion, appropriate in order to qualify the bonds for am participate in the Deposimay Trust Company Bonk -Entry Only system. THAT, the Finance Director and the Chairman of the City Council shall from time to time exacute such bond and notes as may be required to provide for exchanges or transfer of bonds and notes as authorized herein, all such bonds and notes to bear the original signature of the Treasurer and [he Chairman of the City Council, and in case of any officer of the City whose signature appears on any bond or mate shall one c to be such officer before the delivery of such bond or mate, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery thereur. 9]-25 THAT, the Finance Director, Chairman of the City of Coumil, Clerk and other . proper officials of the City be, and hereby are, sustained and empowered in its name and on its behalf to do or cause m be done all such now 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, the City covenants and certifies that no Part of the proceeds of due issue and sale of the bonds or wales authorized to be issued by this Order shall be used, directly or indirectly, m acquire any securities m obligations, the acquisition of which would cause such bonds or nores m be -arbitrage bonds' within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. THAT, the Finance Director be and hereby is authorized fm covenant and agree on behalf of the City and for the benefit of all the holders of all bonds and nares issued hereunder that the City will file any required reports and take any other action that may be necessary to insure that interest on the bonds and any nom; issued in anticipation thereof, will remain exempt from Federal income caseation, and that the City will refrain from inking any action that will cause interest on the bonds or an" to be subject to Federal income taxation. THAT, the Finance Director be and hereby is authorized and empowered in the memo of the City and on its behalf m determine whedmr the bonds authorized hereunder will be sold through negotiated sale or mmpedtive bid. no Finance Director be and Imreby is authorized and empowered to execute and deliver in the name of and on behalf of the City any and all loan agreements, contracts, certificate and other documents necessary or, in his Opinion, appropriate in connection with the negotiated sale or competitive bidding. THAT, the Finance Direcmr he and hereby is authorized and empowered no mine all such action as may be necessary so designate such of the bonds as qualified tax-exempt obligations for purposes of Section 265(6) of the Code; it being the City Council's intention that the Finance D'wncmq with advice of bond counsel, make the required Section 265(6) election with respect to such bonds to the extent die election maybe available and advisable as determined by the Fimeme Director. THAT, Mis Order constitute a Declaration of Official Intent by the City pursuant to Treasury Regulation II1.150-2 to neimburw any original expenditures made on the PRoject out of the sewer find, and that the City intend m same tine bonds on a tax-exempt bass to the extent (bey qualify for such treatment, and otherwise to issue such bolds on a taxable bass. THAT, the term -Cwt- or 'Costs" as used herein and as applied to the Project, or any portion of the project, includes, but is not Rmiad to (1) the purchase price or acquisition east of all or any portion of the Project; (2) costs of construction, building, iteration, enlargement, reconstruction, remvalion, improvement and equipping of the Project; (3) all appurtenances and other facilities either on, above or under the ground which are used or usable in connection with project; (4) landscaping, site preparation and remodeling of any improvements m facilities; (5) the int of all labor, materials, building systems, machinery 9J-25 Son! equipment; (6) the cost of all Iaodt, atructmea, real property interesb, rights, easesaenb and franchises zcquirul in connection with the Project; M the cost of all utility ertensiom W sire development. (a) the specifications, amveys, engineering, feasibility studies, legal and other professional services; (9) the cost of environmental studies and assessments; (10) the cost of financing charges and issuance costs, including premiums for insurance, interest prior to asd during construction, underwriters' fees and costa, legal and xecoumivg teen amt costs, application fxs mol other financing fees, the cost of reserves for payment of tutme debt service related to the financing varem3i0e; and (ll) the cost of all other eagcmes necessary ar incident to the Project and the financing authorized hereuudec. cuantsa11.r PIERCE AMD ATTORNEYS )a/,fis M.3AFHAN November25,19% 20] 791.1319 Runald 1. Heller v"'�`4roatl®' Finance Director City of Bangor 73 Harlow Streei Bangor, Maine 04,101 RE: U.S. EPA Grant Dear Ron: I have reviewed the two Bond Orders you sent to me relating to the U.S. EPA Sewer Chant_ Pursuant tothe first Bond Order, Order No. 95-84, the City has authorized issuance of $5,000,000 of its Bond to develop and construct sledge disposal facilities. We should not simply adopt a second Bond Order authorizing issuance of $5,000,000 of Bonds to construct CSO facififies. The proper course of action is to amend the previous Bond Order to authorize the CSO expenditures. Enclosed please find a draft Order. to be adopted by the City Council. Please call if you have any questions on the enclosed. (vhf/�'yV�uly/yof /S� 1MS/dnf J amesM Enclosure Bruce A. Coggeshall, Esq. CCA:88851-1 Dae Patllend Meioe oalmauc .. .. 20]711.110 207.M 2350 irt�Pum.9�wootlmm at R ry Lead Notices PUBLIC HEARING CITY OF BANGOR General Obligation Bonds Not to Exceed $5,000,000 For the Purchase of Matching Federal Funding Provided for Combined Sewer Overflow Projects The Bangor City Council will hold a public hearing at its reg. War meeting at 7:30 PM on Monday, December 9, 1996 in the City Council Chambers, on the third floor of City Hall, 73 Ilc of to be issued over the fiscal 1998-2002 period. Proceeds will be used to match, on a 65/55 basis, federal funding In the amount of 56,000,000 to be pro vitled over that time. 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 Thew proposed bond Issues. Gall E. Campbell City Clerk November 29, 1996 PUBLIC HEARING CITY OF BANGOR General Obligation Bonds Not to Exceed $5,000,000 For the Purchase of Matching Federal Funding Provided for Combined Sewer Overflow Projects The Bangor City Council will hold a public hearing at its regular meeting at 7:30 PM on Monday, December 9, 19% in the City Council Chambers, on the third floor of City Hall, 73 Hallow Street, Bangor, Maine, for the purpose of hearing public commend on several series of proposed general obligation bonds totaling up to $5,000,000 to be issued over Me fiscal 1998-2002 period. Proceeds will be used to match, on a 45/55 basis, federal funding in the amount of $8,000,000 to be provided over Mat time. 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 these proposed bond issues. 11/2]/96., Gail E.,Cavpbell -' ' City Clerk