HomeMy WebLinkAbout1996-02-26 96-133 ORDERCOUNCIL ACTION
�'. DATE: 2-26-96 Item No. 96-133
Item/Subject: ORDER, Authorizing the City to Participate in the State
Revolving Loan fund with Respect to Previously Authorized $2,425,000
General Obligation Bonds
Responsible Department: Finance
Commentary: On June 12, 1995 in C.O. 95-264, the City Council authorized
the issuance of $2,425,000 in general obligation bonds to fund various
combined sewer overflow projects. The major projects included in this
authorization were the Onion Street Separation Project ($1,320,000), the
Preemont Street Separation Project ($245,000), the Poplar Street
Separation Project ($240,500), and the Barkersville Connecting Pipe
($250,000). In addition, a number of Smaller projects were also
authorized. The majority of these projects are either completed o
underway and weecurrently working to finalize borrowing to reimburse
the Sewer Fund for these expenses.
The attached Order would specifically authorize us to participate in the
State Revolving Loan Fund with respect to these general obligation bonds.
This order has been drafted by our Bond Counsel, and we would request your
approval to proceed in this fashion.
The Finance Committee has reviewed this Order and recc minds approval to
the full Council.
DEPARTMENT HEAD
Manager's Comments: I would recommend your approval. -
Budget Approval:
FINANCE DIRE
Legal Approval: �(/^
�CA/ZITY 901ICI R
—Introduced For
P
_ Passssagg e
_ First Reading
Referral Page of
CITY
MANA(i6R
Aaageiacea
Information :
orae:
Budget Approval:
FINANCE DIRE
Legal Approval: �(/^
�CA/ZITY 901ICI R
—Introduced For
P
_ Passssagg e
_ First Reading
Referral Page of
96-133
AeripaN to CaunNw Leen February 26, 1996
CITY OF BANGOR
(TITLE.) VIrUrs _............... Au[aorizing.the GtymPertigipaemfire Smte llpvolvmglum_
Fund with Respect to Prtswusly Authorized 82,425.000 General Obligation Bonds
..------- ._ ._ ......._...... ..__. _..... __. _._ ...........
so but city couneR offal Oib ofBanear
ORDERED,
THAT
WHEREAS, on dune 12, 1995, the City Council of the City ofBangor adopted a bond order (the "Boal Order')
captioned "Order Authorizing an issue of up to $2,425,000 of General Obligation Bonds and a tax Levy Therefore
for Various Sewer Proje to (the "Bonds"), the proceeds of which, less premium, if any, were to be used and were
thereby appropriated to pay the cost of certain sewer improvement projects more My descnbed tberein (the
"ProjecoC); and
WHBREAS, the City des"ues to issue the Bonds through tae State of Maine Revolving Loan Fund Program and to
otherwise supplement the terms ofBoed Order,
NOW, THEREFORE, BY THE CITY COUNCM OF TILE CITY OF BANGOR, BE IT HEREBY ORDERED:
THAT, upon each exchange ortransfer ofa bond as specified in the Bond Order, the City and the Transfer Agent
shell make a charge sufficient to cover any mat, fee or arty other governmental change required to be payable with
respect to such exchange or transfer, and with respect to such exchange or transfer and subsequent to the first
exchange or transfer, the cost of preparing new bonds upon exchange or varesfer thereof to be paid by the person
requesting the sane; and
THAT, the Finance Director be and hereby is authorized to undertake all acts necessary to provide for the issuance
and transfer of the Bonds in book -entry form pursue t to the Depository Trust Company Book -Entry Only System,
as an ahemative to the provisions of the foregoing Order above regarding physical trander of bonds, and the Fiance
Charter be and hereby is authorized and empowered to enter into a Letter of Representation or my other comract,
agreement or umimsmding necessary or, in Itis opiNoq appropriate in order to qualify, the bonds for and participate
in the Depository Treat Company Book -Entry Only System; and
THAT the Finance Director and Chair of the City Council from time to time shall execute such bonds as may be
required to provide for a charges or transfer of bonds as heretofore authorized, au such bonds to bear the original
signature of the Finance Director mid Char of the City Council, and m case mry officer of Use City whose signature
appears on my bond shall cause to be such offer before the delivery of said bond, such signature shell nevenheless be
valid and sutfict an for all purposes, the arms as ifsuch offer had remained in office until delivery thereof, and
THAT the Finance Director and Chau of the City Council be and hereby are authorized and directed to covenant ad
certify on behalf of the City fast no part of the proseeds of the issue and sale of the Bods authorized to be issued
bereunder shell be used directly or indirectly to acqu've mry securities or obfigafimea the acquisition of which would
cause such notes to be "arbitrage bods" within the meaning of Section 148 of the lntmnel Revenue Code of 1986, as
amended; and
' 96-133
�y
'111AT the offscers mounting the Banda be and hereby arc individually anbarized co
oavmaM and agree, on bebelfofthe City, forthebenefit ofthe holders of such Binds, that the
City will file my tequiwl report and lake any other action that may, he nerrssa.y W insure that
ancient on the nares will remain exempt from federal income axmioa, and that the City will
refrain from any anion that would cause interest on the rules to be abject to fMdal income
laxation;
'THAT the officers "denting the Bands be and thereby are individually authorized to
covenant catUfy and agree, onbehdfofthe City, lot the benefit oftheholders attach Bonds,
that the City will file any sequirel repotts, make my arcual finatcial or material event
dischusarc;aM take any order action that maybe neocoary to insure that the disclosure
requfmmmt imp by Rule 15c2-12 of the Securities and Exchange Commission, if
applicable, are mat;
T1 Xran amount sufficient for the payment of the usual Payment of principal and
imemst on the Bonds and any cotes issued hereunder shall be included in the bus levy of each
you cold the debt represented by said bonds and notes is extinguished;
111AT any or all of the bonds issued under the Bund Ordd may be consolidated with and
hocanrc a pmt of any other issue oftempoarynores or general obligation binds a ilionrad to be
Bract] by my previous or subsequent Odd of the City Coined of the City of Bangor;
TBAT the Ids "calf' or "costs" as wed he the Boned Order call Anent and applied W the
I'mimts, or my Pdolu t thereof, includes, but is int Routed to (1) the purchase price or
acquisition cost of all or my portion of the Traject (2) the cost of construction, building,
altmauon, sdergemen4 reconstruction,re dvadon,improvement, and equipping of the Project;
(3) all apputtmmces and other facilities oither on, above, or under the ground which ere used or
usable in connection wish the Project; (4) landscaping, site preparation mad remodeling of any
improvements or heiliues; (5)the cost afall labor, materials, building systems, machinery, and
equipment; (6) the cast of lead, attendants, real property inbaders, rights, casemws, marl
hanchisa acquired in connection with the Project; (2) the cost of all utility concessions and star
improvements and development; (8)the cost of planning, developing, preparation of
spec! fiwtions,surveys, engineering, fumbility studies, legal and otherprufessional servies
associated with the Project (9) the cost of environmental studies and assessments; (10) the cost
ofBrunei ng charges and haumce costs, including premiums for insurance, interest prior W and
during construction, wderwriters' fees and cosec, legal and accounting fns and ants, application
tau, and other fees and expepsu relating at the financing transaction; and (1I) the cost of all
other fimmcing authorized hereunder, whether related or unrelated to the foregoing; and
96-133
TBAT the Finance Director, Chairman of 0re City Council and Clerk and other proper
officials ofthc City be, and hereby are autherized and empowered in its reme and on its behalf to
do Or cause to be done ell such new and things as may he necessary or desirable in order to effect
the issuance, sale and delivery of the Bonds hereinabove authorized.
TRAT in ruder in inflect the Imrrnwing and issuance offends, or any series themof,
amborized hereunder mrd to fmaace the costs of thin Projects described in the Bond Order, the
Fieriness Director and the Chairman of the City Council me hereby authorized and empowered in
the name of and ore behalf of the City to borrow an amount rot to mrecnd $2,425,000 at any one
since outstanding from rhe Maine Municipal Bond Back (the "Bark") (except that such amount
may be exceeded when aggregated with any other announts duly authorized to be borrowed by
the City from the Bark) pursuant to the Slate's Revolving Loan Furl program established under
30-A MRSA. §6006-A and administered by she Beparlment of Environmental Protection and
the Bank and a enter into a Loan Agreement between the City and the Book providing for aloan
from the Bank in a principal amount not in excess of $2,425,000 and the Finance Director be and
hereby is authorieud and empowered, in the name and on behalf of the City, to execute and
deliver, under the seal of the City athated by its Clerk a Loan Agreement between die Ciry and
the Bank providing for a Ivan from the Bank to the City in an amount not in exceed such amount
said Loan Agreement to he in the usual and ordinary form utilized by the Bank in correction
with the Some Revolving Loan fund which is hereby approved, and to contain such other terms
and provisions, not contrary m the general tenor hereof, as the Finance Director may approve, his
approval to be conclusively evidenced by this execution thereof.
TIIAT the Finance Director and the Chairman of the City Council be and hereby are
individually authorized and empowered, in the name of and on behalf of the City, or execute and
file with the Maim Municipal Bond Bank and/or the Department of Environmental Protection an
application for the Ci to issue mid sell up m$2,425,000 aggregate principal amomt of its
bonds to the Maine Municipal Bond Bank pursoatto the State Revolving Leen Fund program.
TBA'1'the following wasolulions requited by Section C(4)(e) of the Sime of Maine
Revolving Lease pond Rules, Chapter 595, Department ofEnviromneatal protection and Maine
Municipal Bond Bank (the "SRF Regulations"), and governing the loan to be made to the Clty
under Oce Stare Revolving Loan Fund Program be and hereby are adopted.
(1) That a Project Account shall be created for the Projects which shall be
separate from aB other accounts of the City. if operating revenues are to be used to retire
the debt, a sub -annum will be established.
(2) That the Project Account shall be maintained in accordance with standards
set forth by the Maine Municipal Bond Bank and in accordance with generally accePted
government account standards.
96-133 !%
(3) That a foul accounting shall be made to the Bank ofthe Total cost of the
project upon completion ofthe project performmco certification as set out in Section
C(3) of the SRF Regulations and the City acknowledges that the Bank reserves the right
a its sole dismetiw to be provided with a cost cenification of the Project as built.
(4) That an annual audit of the City. prepared by a certified public comment
or licunsed public accomtwt be provided to the Bank for the tam of the loan
(5) That the City shall maintain insurance coverage 01, the Fmjuwt in an
omowt a holuatc to portent the Bank's interest for the term of the lour with the Bank
named ns loss payee.
(6) That the City will comply with any special conditions specified by the
Depadmerd of Environmental Protection's environmental determination until all financial
obligations to the State have been discharged
(7) That the City certity to the Bank that it hassecured all permits, becomes
and approvals necessary and that it has a dedicated source of revenue for repayment
(S) That the City establish a rase, charge or assessment schedule in order to
pay principal am interest Such rate change or schedule shall provide total operations
and debt service coverage at a level at which the coverage for the Bank is sufficient
(9) ]Tel the City must demonstrate the ability to pay reasonably anticipated
costs of operating and main alydag the finsmed Roject.
(10) That the City abide by the SRF Regulations, as revised and cascaded and
relevwt Stene statute of the Sate of Maim.
M 15N 1.m(;
L.MY COORC14 96-133
'February 26,1
-96
Pae9€d 0 RDE R..
J
Title, Au thoriing the City to Participate
T CLERR in the State Revolving Loan Fund with Respect
-
to 'P sb Bly Authorized $2.623 000 General
Obligation �Rovde
•r ..:.......................
m A uigned to .
Coumilman