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HomeMy WebLinkAbout1997-07-14 97-310 ORDERCOUNCIL ACTI0N Deter 7-14-97 Item No 97-310 Item/Subject: ORDER Authorizing an Issue of up to $3,800,900 Aggregate Principal Amount of Bonds Plus up to 38 of Principal Amount to Fund Costs of Issuance and a Tax Levy Therefor for Various Capital Projects Reapcneible Department: Finance Co®entary: The attached Order would authorize bonds for the capital projects approved through the budget process, as listed below, aM declares the Council's intent to issue the bonds, thereby allowing us to begin projects prior to the bond issue and to be reimbursed from bond proceeds. The financing, which is expected to total $8,352,660 is scheduled for late September. Prior to formal action on this order, a Public hearing is required. Additionally, a two thirds majority of the Council must approve the issuance of this debt. The specific projects to be authorized total $3,800,900 as follows; Capital grant to Bangor Public Library $1,600,000; School improvement projects $1,000,000; Bass Park improvements $640,000; Motor Pool building improvements $100.000; Fire station iapmveme.is $01,100; Sawyer Arena/Zamsoni replacement $70,000; 0uz replacement $65,000; Waterworks stabilization $50.000; Public Works underground tank replacement $50,000; Establish/improve mall area trails $46,600; City turning Facility nnde[giound tank replacement $30,200; Police station ceiling repair $30,000; Mansfield Stadium waterproofing $30.000. In addition, the fallowing $4,551,060 will also be included in our GO issue, but Na previously been authorized by Council action an d the indicated date: RAN-financedand unced school improvements (7/10/95 7/22/96) $2,500,000; NOn-SRP eligible CSO projects (12/9/96) $1,051,760; Bangor Public Library improvements (5/22/95) $1.000.000. _ -Z 4- DEPARTNENT HEAD WMge['e Comments: �ErlsMlA. �V.(.0'Ngluavn"v0�'1""^A 1� W "'YID /14P1; CITP MANAG&R Order, tedpub Information: public notice to be posted arW published Budget Budget approval: FINANCE DIRECPGR Legal Approval: CSTY 30LICZTOR lnE[oducad For _ Passage • Piet l PaPe_oE_. FA inance committee _� Referral on F '�1 p 97-310 PUBLIC HEARING CITY OF BANGOR General Obligation Bonds Not to Exceed $3,800,900 For Various City and School Capital Projects The Bangor City Council will hold a public hearing at its regular meeting at 7:30 PM on Monday, July 28, 1997 in Me City Council Chambers, on the third Floor of City Hall, 73 Hadow Street, Bangor, Maine, for the purpose of hearing public Comment on a proposed general obligation bond of up to $3,800,900 to be issued on or about September 25, 1997. Proceeds will be used to fund various capital projects for both the City and School Department. Spec projects are as follows: (1) Capital grant to Bangor Public Library, $1,600,000; (2) Various school improvement projects, $1,000,000; (3) Improvements at Bass Park, $640,000; (4) Motor Pool building improvements, $100,000; (5) Fire station improvements, $81,100; (6) Sawyer Amna/Zamboni replacement, $70,000; (7) Bus replacement, $65,000; (8) Waterworks stabilization, $50,000; (9) Underground tank replacement at Public Works, $50,000; If 0) Establish/improve mall area trails, $46,600; (11) Underground tank replacement at City Nursing Facility, $38,200; (12) Police station ceiling repair, $30,000; and (13) Mansfield Stadium waterproofing, $30,000. A may of the entire oder 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 E. Campbell --- ^ City Clerk July 15, 1997 97-310 Assigned to Councilor Tyler July 14, 1997 CITY OF BANGOR (TITLE.) MrDerff ....AMHORIZINS.. THE ZSSWCE...4E Fd.B0Q...9.0.0.. AGGREGATE. PRINCIPAL AMOUNT OF GENERAL OBLIGATION BOMB ANO A TAX LEVY THEREFOR. By the cam COLLNef{ of the My ofBanyer., TWT Pussmato 30-A MR.S.A.§5772, Section 8ofAnicle VI oftbe City Chmler(Private and Special Laws of Ml, Chapter 56) artl all amerrdmeds thereof and area additional thereto, and all other autlhority domain ershims, there is hereby authorivi the issue and sale done time and from time to time V to Three Million Eight Beograd Thousand Nine Hundred Dollars ($3,800,9010) aggregate principal anscount ofgenecal obligmim I m of of the City of Bangor, plus up to dune percent (3%) oftbe principal Dunt of each issm or series to Brad issuance roses. The proceeds derived firm the sale of sold bawls, less premium, if any, shall be used and are hereby appeal to pay the meta (as herein defined) of the following Projects Phe "Pr jeers°$ Capita grant to Bangor Public Library School immurnmesn projects Bass park improvements; - Moror Pool building improvements Fire statim improvements Sawyee Areral28mboni replacement Bus replacement Waterworks stabilization public Works mdergrowd tank replacement Fsmblimemprove mall area trails City Nursing Facility underground tank replacement Police smtion refiling repair Mansfield Stadium waterproofing THAT the estimated period of utility for the property mnstitufing the Pmlccis to be financed with the proceeds of said bonds is hereby determined to be at lent twenty (20) years. THAT rhe dare, maturities, denominations, interest rate or cams, place of payment, and other details of each issue of said bonds, including the timing and provision for their sale and award and the selecdon of an uMerwrher, shall be destructors by the Finance Director with the approval Of dol Finance Committee and the Chairman of the City Come i 1. THAT said bads shall be signed by the Finance Director countersigned by the Charman of the City Council, ended with the seal of the City, retreated by in Clark, and shall be m such four and courant such terms and provisions as they may approve, their approve to be conclusively evidenced by their oecution therM. Any issue of media may be consolidated with and issued at the same time as any other issue of bonds authorized prior to char issuance, and the bonds may be divided into multiple series ant issued in separate plane of financing, with the approval of the Finance Canmidce and Ne Chairman of the City Council. IN CITY COUNCIL July 14, 1997 -First Reading'. Referred to -Finance Committee LERR IN CITY COUNCIL July 28; 1997 Public Hearing Opened. No one from the Public spoke. Public Hearing Closed. Order Passed Councilor Tyler Abstained 0 97-310 ORDER Title, Authorizing the Issuance of Issuance of $3,800,900 Aggregate Principal Amount Of general obligation bonds and a Tei Levi 4Te.efji . ................. I.................... Assigned to Tyle ...oun:..:ilma.:... Ccn P 97-310 THAT pursuantto 30-A M.RS.A. § 5772, Section 10 oflnticle VI of the City Charter and any other unkindly Hereto enabling, the Finance Director with approval of the Finance Committee and the Chairman of the City Council, is hereby authorized to issue temporary bonds of the City in anticipation of the ongoing bond issue, said bonds to be signed by the Finance Director countersigned by the Chairman of the City Council, sealed with the seal of the City, attested by its Clerk, add otherwise to be in such form and contain such terms and provisions including, without limitation, matmiHes, denominations, interest ate 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 ceder Obis Order may be issued in combination with temporary bonds (including bonds in renewal thermt) and bonds authorized to be issued by the City Council at any time prior to the date of issuance of the temporary, bonds. THAT the Fhence Director be and hereby is authorized to select the register, paying agent, and transfer agent (tire "Transfer Agent") for the bonds and in execute and deliver such contracts and agreements as may be necessary or appropriate to secure their services. THAT de bonds shall be transferable only on the registration books of the City kept by (be transfer agent, and said principal amount of Me bonds of the seem maturity (but not of other maturity) in the denomination of$100,000 and any integral multiple of $5,000 in excess thereof, upon surrender Nereofat the principal office of the transfer agent, with a written instrument of transfer satisfactory to the transfer agent duly executed by the registered owner or his attorney duly authorized in writing: Upon each exchange or transfer of a bond, the City and the transfer agent shall make a charge sufficient to cover any tax, fee, or any other governmental charge required to be payable with respect to such exchange or transfer and with respect to such exchange or transfer, and subsequent to the fast exchange or tensfer, the cost of preparing new bonds upon exchanges or transfer Nersofto be paid by the person requesting the same. THAT the Fiance Director and Chimmon of the City Council from time to time shall execute such bonds as may be required m provide for exchanges or transfers of bonds its hereto£ authorized, all such bonds to bear the original ailments of die Fiance Director and Chairman of the City Council, and in case 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 shall nevertheless he valid and sufficient for all purposes, the same as if such officer had remained in office until delivery thereof. THAT upon each exchange or transfer of bonds, the City and transfer agent shall make a charge sufficient to cover any tan, fire, or other governmental charge raptured to be paid with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cost of which shall be borne by the City, the cost of preparing new bonds upon exchanges or trawlers thereof shall be paid by the person requesting the same. THAT the officers executing Obs bonds be and bereby are individually authorized and directed to covenant and certify, on behalf of the City that no part of the procceds of the issue and sale of the bonds authorized to be issued hereunder shall be wed directly or indirectly to acquire any securifies or obligations, the acquisition of which would cause such bonds to be "arbitrage bonds' within the meaning of Section 148 of the formed Revenue Code of 1986, as amended. 2 9J-310 THAT the officers executing the bonds be and hereby me 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 my required reports and take any after action that may be necessary to mature fiat interest on the bonds will remain exempt from federal income taxation and that the City will refrain from any action that would cause interest on the bonds to be subject to federal income taxation. THAT the officers execaing the bonds be and hereby are individually authorized to covemnS certify, and agree, on behalf of the City, for the benefit of the holders of each bonds, that the City will file any tailored reports, make any aminal financial 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, we met. THAT the tens "can' or "costs" as used herein and applied to the Projects, or any portion thereof, includes, but is trot limited to: (1) the purchase price or acquisition and of all or any portion of the Projects; (2) the cost ofconvenience, building, alteration, enlargement, recrmNuctioq renovation, improvement, and equipping of the Projects; (3) all appurtenances and other facilities either on, above, or under the ground which we used or usable in co mention with the Pmjecfs; (4) landscaping, site preparation, and remodeling of my improvements or focilifies; (5) the vests of all labor, materials, building systems, machinery and equipment; (6) the cast of land, stmctares, real property interests, rights, easements, and franchises acquired in connection with the Projects; (7) the cost of all utility extensions and site improvements and development; (8) the cost ofplarudng, developing, preparation of specifications, surveys, engineering, feasibility studies, legal and other professional services associated with the Projects; (9) the con of environmental studies and aseesammts; (10) the cost of financing charges and issuance vests, including premiums for insurance, interest prior to ad during convection, underwriters' fees and costs, legal and accounting fees and costs, application fees, and other fees and expenses relating to the f arcing hamaction; and (11) the war of all other financing embedded hereunder, whether related or unrelated to the foregoing. THAT the Finance Director, Clu men of the City Council, Clerk, and other proper offrcios of the City be, and hereby are, authorized and 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 notes as hmcinbefore andamized. THAT the Fortune Director be and hereby is authorized and empowered to take all such action as may be necessary to designate tae bonds as qualified Warexempt obligations for purposes of Section 265(6) of the Code; it being the City Council's artemon that the bonds be Section 265(6) designatd and that fire Finance Director with advice of bond counsel, make the required Section 265(b) election with respect to such bonds to the extent turn tee election may be available and advisable as determined by the Finance Director, or Acting Finance Director. THAT the investment earnings on the proceeds of the bonds, if any, and the excess proceeds of the bonds, if my, be rad hereby are appropriated for the following purposes, such proceeds to be held and applied in the following order of priority: 1. To any cons of the Projects in excess of the principal amount of the bonds; 97-310 2. In accordance with applicable terns 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, to the City's General Fund. THAT the bonds hereby authorized may be made subject to call fm redemption, with or without a premium, before the date fixed for fund 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 ted approval of the Finance Committee and the Chairman of the City Council. THAT if the Finance Director, Chairman of the City Council, or Clerk am her any reason unavailable to approve and execute the bonds or any related fin roving documents, the person or persons then acting in any such capacity, whether as an assistant, a deputy, or otherwise, is authorized to act for such official with the same force and effect as if such official had himself performed such aa. THAT in each of the years during which my of the bonds we outstanding, there shall be levied a We in an amount which, with other revenues, if my, available for that pmpose, shell be sufficient to pay the interest on said bonds, payable in such years, and the principal of such bonds maturity in sock years. THAT this Order constitutes a Decimation of Official Intent by the City pursuant to Treasury Regulation § 1.150.2 to reimburse any original enpenditures made on the Projects out of the General Fund. 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