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HomeMy WebLinkAbout1997-10-15 97-411 ORDERCOUNCIL ACTION Date: 10-15-97 Itam No 97-411 IY®/SnbjeeY: ORDER Authorizing an Issue of up to $425,000 Aggregate Principal Amount of Bonds Plus up to 38 of Principal Amount to Fund Costs of Issuance and a Tax Levy Therefor for expansion, remodeling and renovation of the skilled nursing unit of the Bangor Nursing Facility,relocation of its physical therapy department, and creation of a 17 -bed resident care therapy department. Responsible Department: Finance Co®enbary: The attached Older would authorize bonds to food the Continuum of Care Project the City Nor ing P cility in accordance with Council Order 897-400, adopted at the regular City Council meeting of September 22nd, 1997. It also declares the Council's intent to issue the bonds. - These bonds will be issued next September, or thereabouts, as part of mss annual capital borrowing, Prior to formal action on this Order, a public hearing is required. Additionally, a two thirds majority of the Council Mgt approve the issuance of this debt. D6PA¢TIASMf HEAD sznagarla comments: -a.(�µ(lagwm=4.x //y/ /� .U4fMA6rvi a*cfioq ,�,/. syG Order, public notice to be peered aM published Budget Approval legal Approved, FINW&CIE DIRECTOR CITY SOLM Introduced Far — Passage • First Reading sea Of_ • Referral to Finance committee A.ipredb Cowegor Soucy October 15, 1997 r CITY OF BANGOR (TITLE,) V11rbaAUTHORIZING TUE: Nc rssUAe OF UP TO $425,000 f .....'.._AfGxElEeirg' PRINCIPAL -A14UUNT'<Hs GENERAL-OBLi(EkTSON BONDS AND A TAX LEVY THEREFOR. By eine City Connell of her nary ofBuyyor. ORDERED, THAT Pursuant 030-A MRSA. §5772,Sending 8 ofAgi VI of the City Cheror(Private and Special Laws of 1931, Chapter 56) and all amendments thermfand efts additional thereto, and all other ardently thereto enabling there is hereby authorizM the issue and sale at one time and from time to time up to Four Hundred Twenty Five Thousand Dollars ($425,000) aggregate principal amount of general obligation bonds of the City of Bangor, plus up to three percent (3%) of the principal common of each issue or tries to fwd issuance cons. The proceeds derived from the sale of said bonds, including premium, if any, shall he used and we hereby improprieties] to pay the com (as herein defined) of the following project (the"Projim'). ♦ Expansion, remodeling and renovation of the skilled nursing unit of the Bangor Nursing Facility, relocation of its physical theory department, and creation of a 17 -bed resident care Accept, department. THAT the saturated weighted period of utility for the property constituting the Preject to be financed with the proceeds of said bonds is hereby, determined to ba at least twenty (20) years. THAT the date, mounting, denominatives, interest nm or rates, place of payment, and other remits of much issue of said bonds, including the timing and provision for their sale and award erg the selection of an underwnow, shall be determined by the Finance Director with the approval of the Finance Coreminee and the Chairman of the City Common. THAT the bonds hereby authorized may be made subject call frr redemption, with or without apremium, before the dote 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 she approval of the Finance Committee and the Chain of the City Council. THAT said bonds shall be signed by the Finance Director cougersigned by the Chair of the City Council, soled with the seal of the City, attested by its Clerk, and shall be in such form and comain such terms and provisions not inconsistent herewith as they may approve, their approve to be conclusively evidenced by their execution thereof Anyissuesofbondsmaybe mwlideted with and issued at the same time as any other issue of bonds wthorimd primto their and the bonds may be divided into multiple series and issued in separate plane of Enterinsu g, with the approval of she Finance Committee and the Chair of the City Cowcil, THAT Pursuant to 3o -A M.R.S.A. § 5772, Serfion 10 of Article VI of the City Charter and any other amhon"ereno enabling, the Finance Dlregm, wish approval of the Finance Committee and the Chair 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 Chair of the City Council, sealed with the reel of the City, attested by its Clerk, and other viseto be in such frim and contain such terms and provisions including, without limitation, maturities, denominations, m emat rete or muss, place of payment, and other details as they shall approve, their approval to be conclusively evidenced by their execution thereaf. 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 renewal thereof) and bonds authorized f be issued by the City Council Many time prior to the dace of issuance of the temporary bonds. THAT the Finance Director be and hereby is authorized to select the registrar, paying agent, and trmader agent (the'Transfer Agent's for the bonds and to exewce and deliver such contracts and agro mmts as may be necessary or appmptinse to secure their services. THAT the bonds shall be transfrable 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 mannity) in the denomination of$100,000 and any integral multiple of $5,000 in excess thereof, upon surrender thereof at the principal office of the food" agent, with a written instrument of transfer satisfactory to the transfer agent duly executed by the registered owner or his or her anomey duty authorized in writing. T9AT the Finance Director and Chair of the City Council from time to time shall ecure such bonds as may be required to provide for exchanges or transfers of bonds as heretofore authorized, all such bonds f bear the original signature of the Finance Director and Chair 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 be valid and sufficient for all purposes, the same as if such officer had remained in office unfil delivery thereof. THAT upon each exchange or transfer of bonds, the City and transfer agent shall make a charge sufficient to cover any not, fce, or other governmental charge requ'vod to be paid with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cost of which shall be home by the City, the cost of preparing new bonds upon exchanges or transfers thereof shall be paid by the person requesting the same. directed to covenant and certify on behalfofthe City that no part of the proceeds of the issue and rale of the bonds authorized to be issued hereunder shall be used directly or indreedy to acquire any securities or obligations, the acquisition of which would cause such bonds to be "arbitrage bonds" withm the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code'). THAT the officers executing the bonds be and hereby are individually authorized to covenant and agree, on behalf of the City, for the benefit of the holden of such bonds, that the City will file any required reports and take any Minna action that may be necessary to ensure that interest on the bonds will remain exempt from federal income taxation and thM the City will mfrdn from any action that would cause interest on the bolls to be subject to federal income taxation. THAT the offices trawling the bonds be =it hereby are individually authorized to covenant, certify, and agree, on behalf ofthe City, for the benefit of the holders of such bonds, that the City will file any requred reports, make any annual 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, are met THAT the Finance 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(b) of The Code; it being the City Council's intention that the bonds be Section 265(b) designated and that the Fiance Director with advice of bond counsel, make the required Section 265(6) elation with respect m such bonds to the extent that&a election may be available and advisable as determined by the Finance Director. THAT the term "cost- or "vests" as used herein and applied to the Project, or any portion thereof, transits, but is not limited to: (1) the purchase price or acquisition cost of all or any portion of the Projwm (2)the was ofconstuction% building, alteration, enlargement, reconstruction, renovation, improvement, and equipping of the Project; (3) the rest of all appurtenances and other facilities either on, above, or under the ground which are used or usable in conation with the Project; (4) the cost of landscaping, site preparation, and remodeling of any improvements or fa ilifies; (5) the cost of all labor, materials, building systems, machinery and equipment; (6) the cost of land, strum es, real property interests, rights, momenta, and franchises acquired in connection with the Project; (7) the cost of all utility extensions and site improvements and development; (9) the rest of planning, developing, preparation of specifications, surveys, engineering, feasibility studies, legal and other professional services associated with the Project; (9) the cost of enviromvenW studies and assessments; (10) the cost of Insisting charges and issuance costs, including premiums for insurance, interest prior to and during construction, undurviiters' fees and costs, legal and swimming fees and costs, application fees, and other fees and expenses relating to the financing numeration; and (11) the east of other financing authorized hereunder, whether related or unrelated to the foregoing. THAT the investment earnings on the proceeds of the bonds, ifmny, and the means proceeds oftlre 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 sty was of the Project in excess of the principal amorrrrt of the bond s; 2. In aceordnce with applicable terms and provisions of the Arbinge and Use of Proceeds Certificate delivered in wrmection with the sale of de bonds including, to the extent permitted thereuoder, to the City's General Fund. THAT the Fiornce Director, Chairman of the City Council, Clark, and other proper officials of the City be, and hereby are, authorized and empowered in its time and on its behalf W do or cause in be time At 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 Director, Chat of the City Commit, or Clerk we for arty reason unavailable or approve and exaMe the bonds or sty related financing documents, the person or persons then acting in sty such capacity, whether as an assistant, a deputy, or otherwise, is authorized to as for such official with the same force and effect as if such official had himself or herself performed such act_ THAT in each of rhe years during which any of fie bands are outstanding there shall be levied a tax in an amount which, with other revenues, if my, 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 such years. . THAT this Order constitutes a l olaration of Offered Intent by the City pursuant to Treasury Regulation § 1.150-2 to reimburse any original expenditures made on the project out of the General Fund or any other find or account of the City. IN CITY COUNCIL October 15. 1997 First Reading , Referred to 97-411 Finance Coa®ittee O R D E R f/fTY}CLERK ' IN CITY COUNCIL October 27, 1997 Public Rearing Opened: No one from the Public spoke to this issue. Public Hearing Closed Order Passed I Title, Authorizing the Issuance of up to $425.000 Aggregate Principal Mwunt of General Obligation Bonds and a Tax Levy Thbiefbr.............................. .................................. a4v-6 T Assigned to COanc ilman 9]-411 PUBLIC HEARING CITY OF BANGOR Geneml Obligation Bonds Not to Exceed $425,000 - For City Nursing Facility Projects The Bangor City Council will hold a public hearing at its regular meeting at 7:30 PM on Monday. October 27, 1997 in the City Council Chambers, on Me 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 $425,000 to be issued as part of the City's annual capital borrowing, currently scheduled for September, 1998. Proceeds will be used to fund the expansion, remodeling and renovation of the skilled nursing unit of the Bangor Nursing Facility, relocation of its physical therapy department, and creation of a 17 -bed resident care therapy department. 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. October 15, 1997 Gail E. Campbell City Clerk khatel e<iaLaGewe�r9,°r�"li� Fedifty .BraleyA oe MIJIN°ou1.: :PiliWay Meaning at 7 a PJA Ga ++IIBatr rl at P he I he ha he City the Lee 81 eele, 7W hat" -Gya- M rayvip o' .r! 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