HomeMy WebLinkAbout1996-09-09 96-370 ORDERCOUNCIL ACTION
Date: 9-9-96 Item No. 96-370
Item/Subject: ORDER, Authorizing the City to Participate in the
State Revolving Loan Fund with Respect to
Previously Authorized $2,658,500 General
Obligation Bonds
Responsible Department: Finance
Cumientary:
On July 22, 1996 in C.O. 96-307, the City Council authorized the
issuance of $2,658,500 in general obligation bons to fund various
combined sewer
erflow projects. The major projects included in this
authorizatione
w : (1) 14th Street a sewer separation project
($1,143,000); (2)Kenduskeag Pump stationupgrade to 28 MGD ($425,000);
(3) Linden Street/Grant street sewer
separation project ($322,000);(4)
Clyde Road asewer separation project ($288,000); and (5) Wastewater
Treatment Plant CSO Expansion to 43 MGD. In addition, a number Of
smaller projects were also authorized. T
The attached Order would specifically authorize us to participate in the
State Revolving Loan Fund with respect to these general obligation
bona. 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 recommends approval to
the full council.
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Budget Approval:
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Legal Approval:
Introduced For l#Ax
Passage
First Reading Page -
of -Referral
Aeaipied to Councilor Woodcock Septemhbrv9, 1111
r CITY OF BANGOR
(TITLE) tgITDBTt ................ Au"onang'he(Stytopathupaemthe Stile Revolving Loan
Fund with Respect to Previously Authorized $2,658,500 General Obligation Bonds
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BY the Cap cirwROU Of the CUM of Jaguar.
ORDERED,
THAT
WHEREAS, an July 22, 1996, the City Council athe City ofBangor adopted abond order (the
"Bond Order") captioned "Order Authorivng the Issue of up to $2,658,500 of Gaging Obligation
Bonds and a Tax Levy Therefore for Various Sewer Pro ejecta" (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 fully described therein (the "Projects); and
WHEREAS, the City desires to issue the Bonds through the Sim of Maine Revolving Loan Fund
Program and to otherwise suppleness the tams ofBond Order,
NOW, THEREFORE, BY THE CITY COUNCIL OF THE CITY OF BANGOR, BE R
HEREBY ORDERED, THAT: upon each emhenge or transfer ofa bond as spoci6ed in the Bond
Order, the City and the Transfer Agent shag make a clogs audition to cove any to, fee or any
other govemnsmnl charge required to be payable with respect to such exchange or transfer, and
with respect to such exchange or transfer, and subsequent to the fust exchange oftrander, the
cos[ of preparing new bands upon a Glume or transfer thereofto be paid by the person
reWesing the same;
THAT, the Finance Dire be and hereby is authorized to undertake A sets necessary, to
provide for the issuance and transfer of the Bands in book -entry form possums to the Depository
Twat Cornpany Book -Entry Only System, as an alternative to the provisions of the foregoing
Order above regarding physical transfer of bonds, and the Finance Director be and hereby is
authorized and empmvesed m enter into a Letter ofRepresentation or any other comes,
agreement or undemanding necessary or, in his cartoon, appropriate in order to qualify the bonds
for and participate in the Depository Trust Camps" Book -Entry Ody System;
specifications, surveys, engineering, feasibility studies, legal and other professional services
associated with the Project; (9) the cost of environmental studies and assessments; (10) the cost
of financing charges and issuance cents, including premiums for insurance, interest prior to and
during construction, underwriters' fees and costs, legal and accounting fees and costs, application
fees, and other fees and expenses relating to the financing trannotion; and (11) the cost of all
other financing authorized hereunder, wbether related or unrelated no the foregoing;
THAT, the Penance Director, Chau of the City Council and Clark and other proper officials of the
City be, and hereby are authorized and empowered in its was: and on its behalf of do or cause to
be done all such acts and things as may be necessary or desirable in ender to effect the ismance,
sale and delivery ofthe Bonds hereinabove authorized;
THAT, in under to effect the burrowing and ise rence of bonds, or any series thereof authorized
'hereunder and to finance the costs of the Projects described in the Bond Order, the Finance
Deemer and the Cbak of the City Council are hereby authorized and empowered in the name of
and on behalf of the City to borrow an woman not to exceed $2,658,500 a[ any one time
outstanding from the Maine Municipal Bond Bank (the Bank") (except that such amount nay be
exceeded when aggregated with any other amounts duty authorized to be borrowed by the City
from the Bank) pursuant to the State's Revolving Loan Fund program enablisbed under 30-A
MR S.A §6006-A and administered by the Department ofPmvironmenml Protection and the
Bark and to enter into a Loan Agreement between the City and the Bank providing for a loan
from the Hank in a principal amount not in excess of $2,658,500 and the Finance Director be and
hareby is authorized and empowered, in the name and on behalf of the City, to execute and
deliver, under the seed of the City attested by its Clerk a Loss Agreement between the Cry and
the Hank providing for a lose from the Bank to the City W an muount am to exceed such amount
said Loan Agreement to be in the usual and ordinary form utilized by the Bags in convection with
the State Revolving loan Fund which is hereby approved, and to contain such other terms and
provisions, am contrary to the genal tear hereof, as the Finance Director may approve, his
approval to be conclusively evidenced by this execution thereof
THAT, the Finance Dinner and the Chair of the City Council be and bereby are individually
authorized and empowered, mthe more of and on behalf ofthe City, to execute and file with the
Mame Municipal Bond Bank and/or the Department oFEnvironmennl Protection an application
for the City to issue and seg up m $2,658,500 aggregate principal among of its bonds to the
Maine Mugcipal Bond Bank pursuant to the State Revolving Loan Fund program;
THAT, the following resoWtiora required by Section C(4)(e) of the State of Maine Revolving
Loss Fund Rules, Chapter 595, Department of Er ommmW Protection and Maine Municipal
Bond Bank (the SRF Regulations"), and goveming the loan to be made to the City under the
State Revolving Loan Fund Program be and hereby are adopted;
(1) That a Project Account shag be created for the Projects which shag be
be separate from all other accounts ofthe City, ffoperation revenues sse to be used to
retire the debt, a subaccount will be established.
96-370
(2) That the Project Account shall be maintained in accordance with standards
set forth by the Maine Municipal Bond Bank sad in accordance with generally accepted
government account standards.
(3) That a fid accounting shall be rates to the Bank of the total cost of the
project upon completion of the Project performance certification as at out in Section
G(3) of the SBF Regulations and the City aclmowledges that the Bank reserves the right
at its sole discretion to be provided with a cost certification of the Project as built.
(B) That an annual range of the City, prepared by a certified public a ssuamant or
ficeread public amounted need be provided to the Beak for the tens of am loan.
(5) That the City shag method insurance coverage on the Project in av amount
adequate to protect the Bank's interest for the tma of the loan with the Bank named as
loss payee.
(b) Thin the Cityw comply with any special conditions specified by the
Department ofEnvironmea d Protection's eavironnum al deamination until all financial
obligations to the State have ban discharged.
('/) That the City certify to the Bank that it has secured all pennies, hcenses and
approvals necessry, and that it has a dedicated source of revenue for repayment.
(8) That the City establish a nm, charge or aseessmmt schedule in order to pay
principal and interest. Such a rete chaage or schedule slid provide total operations and
debt service coverage at a level at which the coverage for the Bank is sufficient.
(9) Thaithe City must demonstrate the ability to pay reasonably anticipated costs
of operating and nu intaining the fiatnead Project.
(10) That the City abide by the SRF Regulations, as revised and amended and
relevant to State Stares of the State of Maine.
96-370
THAT, the Finance Director and Chew of the City Council from time to time shall execute such
bonds as may be required to provide for movies es or transfer ofbonds as heretofurs authorized,
all such bonds to bear the original signature of the Finance Director and Chau ofthe City Council,
and in case any officer of the City whose signature appears on any bond shall cease to be such
offer before the delivery of said bond, such signature shall nevertheless be valid and sufficient for
ell purposes, the same as if such offer had remained it office until delivery thereof;
THAT, the Finance Mortar and Chau of the City Council be and bereby are auNorizd and
directed to covenant and certify, on behalfofthe City dam no part of the proceeds of the issue and
sale of the Bonds authorized to be issued hereunder shall be used directly or indirectly to acquire
any securities or obligations, the acquivtion of which would cause such notes to be "arbitrage
bonds" within the meaning of Section I48 of the baenal Reveme Code of 1986, as amended;
THAT, the officers executing the Bonds be and hereby are individually authorized to covenant
and agree, on behalf of the City, for the bene& of the holders of such Bonds, that the City will file
any required reports and take any other action that may be necessary to insure that interest on the
acres will cannon exempt fiorn federal income taxation, and that the City will refrain from any
action that would coarse interest on the notes to be subject to federal income taxation;
THAT, the of kers executing the Bands be and hereby are individually authorized to covenant,
certify and agree, on behalfofthe City, for the benefit of the holders of such Bonds, that the City
will file any rationed reports, rasion any normal financial or material event disclosure, and take any
other action that may be necessary to insure that the disclosure requ'vmimm imposed by Rule
15o2 12 of the Securities and Exchange Commission, if applicable, are mW;
THAT, an amount sufficient for the payment of the amoral payments of principal and interest on
the Bonds and any notes Issued hereunder shall be included in the tax levy of tooth year until the
debt represented by said bonds and notes is eninguished;
THAT, my or all of the bonds issued under the Bond Order may be consolidated with arts
become a part of any other issue of temporary notes or general obligation bonds authorized to be
issued by any previous or subsequent Order of the City Council ofthe City of Bangor,
THAT, the tam "cost' or "coats" as used in the Bond Order and basin and applied to the
Projects, or any portion thereof, includes, but is act limited to (1) the purchase price or
acquisition cost of all or any portion of the Projeq (2) the was ofconetuctim, buildin&
altershon, enlargement, recovstrmfion, renovation, improvemem and equipping of the Project
(3) all eppurceames and other facilities either on, above, or under the grouts which are used or
useable in connection with the Project; (4) laodampiv& site preparation and remodeling of my
improvements or facilities; (5) the costs of labor, materials, building systems, umcbinery and
equipmem; (6) the cost of land, stmcmres, real property intaems, rights, msemercs, and
franchises actuated in connection with the Project; ('1) the war of all utility anmsions and site
improvements and development (8) aha area of plarmdng, developing preparation a
IN CITY COUNCIL 0 96-370
September 9, 1996 I O R D E R
Passed
Title, Authorizing the City to
CITY CLERK Par[lcipete in the State Revolving
Wan Fund with Respect to Previously.
ldifio2i[ed'f1;658:580 "Ceddrsf'dtifigaunn�
Bonds
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