HomeMy WebLinkAbout1991-02-11 91-90 ORDER1,11
Date Y11112-'ll-9111 Item No. 91-90
Item/Subject: OF111111t, Amending Council Order PUHorissing an Dienes of
$22,000,000 Agprowere Frfscipal Amount of BOMB And the
tDe ifs 10, 1990
Responsible Department: teary,
Commentary:
Use City's fortl Camael Lea revs .ed LAa gond Order pasaed by river city
Council on Decug r 100 1990, which eutMriaM rle issuance of Londe for
coativettan of a Secondary TteataaR Plant thxcvgh iLe State Pzoolvillg Loan
FUM. After shot ream ad upon review of dur State Rean1vin9 Fund
Iugu1atdrl.e, our BOM Counsel hesavnoetse' d tbat tla origital t3der be
assented In order to pence ditec 1y itulssk tM State Revolving lean Fund
The aoeseEovR v arracled.
This a.2ias las ba3n raoiaued by rhe Ffsance Q'mtdttva and recentgaded for
Council adaption.
J
.,,,end
Managers Comments:
J
e;,y m+..xe•
Associa n! Information:
Order
Budget Approval:
N/A ria.aao nim
Legal Approval:
chysoiNur
Intro ced For CO,0S9 -r
Passage
El First Beading paw —of—
❑Referral
IN CITY COUNCIL
February 11, 1991
Passed
C15 ICLERX
91-90
Amendment to 'Order Authorizing an Issue j
&22,000,000 Aggregate Principal Amount aP
Bonds and a Tax Lev y Therefor' adopted
December 10, 1990.
Amendment to "Order Authorizing an Issue of
$22,000,000 Aggregate Principal Amount of
Bonds and a Tax Levy Therefor' Adopted
December lc, 1990
By the Council of the City of Bangor:
ORDERED: THAT the "Order Authorizing an Issue of
$22,000,000 Aggregate Principal Amount of Bonds
and a Tax Levy Therefor' adopted by this Council
on December 10, 1991 (the 'order") be and hereby
is amended by the addition thereto of the
following provisions:
THAT in order to effect the borrowing and
issuance of bonds authorized under the Order and
to finance the costs of the project described
therein, the Finance Director, with the approval
of the Finance Committee and the Chairman of the
City Council, is hereby authorized and empowered
n the name of and on behalf of the City to
borrow an
amount not toexceed $22,000,000 at any
e time outstanding from the Maine Municipal
Bond Bank (the "Bank") pursuant to the States
Revolving Loan Fund program established under
30-A M.R.S.A. §6006-A and administered by the
Department of Environmental Protection and the
Bank and to enter into a Loan Agreement between
the City and the Bank providing for a loan from
the Bank in a principal amount not inexcess of
$22,000,000 and the Finance Director be and
hereby is authorized and empowered, in the name
and on behalf of the City, to execute and
deliver, under the seal of the City attested by
its Clerk, a Loan Agreement between the City and
the Bank providing for a loan from the Bank to
the City in an amount not to exceed $22,000,000,
said Loan Agreement to be in the usual and
ordinary form utilized by the Bank in connection
with the State Revolving Loan Fund which is
hereby approved, and to contain such other turns
and provisions, not contrary to the general tenor
hereof, as the Finance Director may approve, his
approval to be conclusively evidenced by his
execution thereof.
THAT the Finance Director and the Chairman of.the
Council be and hereby are individually authorized
and empowered, in the name
a Of and on behalf of
the City, toe cute anddeliver, under the seal
of the City attested by its Clerk, such other
agreements, documents and certificates as may be
necessary or appropriate to provide for such
financing, such documentation to contain such
terms and provisions as the Finance Director and
91-90
- ASSIGNED
TO
COUNCILOR
086em,
February
11,
1991
Amendment to "Order Authorizing an Issue of
$22,000,000 Aggregate Principal Amount of
Bonds and a Tax Levy Therefor' Adopted
December lc, 1990
By the Council of the City of Bangor:
ORDERED: THAT the "Order Authorizing an Issue of
$22,000,000 Aggregate Principal Amount of Bonds
and a Tax Levy Therefor' adopted by this Council
on December 10, 1991 (the 'order") be and hereby
is amended by the addition thereto of the
following provisions:
THAT in order to effect the borrowing and
issuance of bonds authorized under the Order and
to finance the costs of the project described
therein, the Finance Director, with the approval
of the Finance Committee and the Chairman of the
City Council, is hereby authorized and empowered
n the name of and on behalf of the City to
borrow an
amount not toexceed $22,000,000 at any
e time outstanding from the Maine Municipal
Bond Bank (the "Bank") pursuant to the States
Revolving Loan Fund program established under
30-A M.R.S.A. §6006-A and administered by the
Department of Environmental Protection and the
Bank and to enter into a Loan Agreement between
the City and the Bank providing for a loan from
the Bank in a principal amount not inexcess of
$22,000,000 and the Finance Director be and
hereby is authorized and empowered, in the name
and on behalf of the City, to execute and
deliver, under the seal of the City attested by
its Clerk, a Loan Agreement between the City and
the Bank providing for a loan from the Bank to
the City in an amount not to exceed $22,000,000,
said Loan Agreement to be in the usual and
ordinary form utilized by the Bank in connection
with the State Revolving Loan Fund which is
hereby approved, and to contain such other turns
and provisions, not contrary to the general tenor
hereof, as the Finance Director may approve, his
approval to be conclusively evidenced by his
execution thereof.
THAT the Finance Director and the Chairman of.the
Council be and hereby are individually authorized
and empowered, in the name
a Of and on behalf of
the City, toe cute anddeliver, under the seal
of the City attested by its Clerk, such other
agreements, documents and certificates as may be
necessary or appropriate to provide for such
financing, such documentation to contain such
terms and provisions as the Finance Director and
Chairman of the Council may approve, their
approval to be conclusively evidenced by their
execution thereof.
THAT the Chairman of the Council, Finance
Director, and Clerk, and other proper officials
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 deemed necessary or desirable in order to
effect the issue
and delivery of the bonds and
notes described in the Order and effect the
borrowing hereinbefore authorized.
THAT the Finance Director and Chairman of the
Council be authorized to covenant and certify
that no part of the proceeds of the issue and
sale of the bonds and notes authorized to be
issued by the Order (including any notes and
bonds in renewal thereof) shall be used, directly
or indirectly, to acquire any securities o
obligations, the acquisition of which would cause
such bonds of the City to be an "arbitrage bond"
Within the meaning of Section 148 of the Internal
Revenue Code of 1986, as amended (the "Code").
THAT the Finance Director and Chairman of the
Council be authorized to covenant on behalf of
the city and for the benefit of the holders of
the bonds and notes authorized in the Order, that
the City will take whatever steps, and refrain
from taking any action, as may be necessary or
appropriate to ensure that interest on such bonds
and notes will remain
exempt from federal income
taxes and to execute deliver and carry out the
provisions of such arbitrage and other tax
matters certificates and agreements as bond
counsel may require as a condition to its
providing the opinion for the bonds.
THAT the Finance Director and the Chairman of the
Council be and hereby are individually authorized
and empowered, in the name of and on behalf of
the City, to execute and file with the Maine
Municipal Bond Bank and/or the Department of
Environmental Protection an application for the
City to issue
and sell up to $22,000,000
aggregateprincipal amount of its bonds to the
Maine Municipal Bond Bank pursuant to the State
Revolving loan Fund program.
THAT the following resolutions required by
Section 15E of the State of Maine Revolving Loan
Fund Rules Chapter 593, Department of
Environmental Protection and Maine Municipal Bond
-2-
Bank (the "SRF Regulations"), and governing 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 shall be created
for the sewage treatment facility construction
project which shall be separate from all other
cants of the City. if operating revenues are
to be used to retire the debt, a sub -account will
be established.
(2) That Project Account shall be
maintained inaccordance with standards set forth
by the Maine Municipal Bond Bank and i
accordance with generally accepted government
accounting standards.
(3) That a final accounting shall be made
to the Bank of the total cost of the project upon
completion of the Project performance
certification asset out in Section 35 of the SRF
Regulations and the City acknowledges that the
Bank reserves the right at its sole discretion to
be provided with a cost certification of the
Project as built.
(6) That an annual audit of the City,
prepared by a certified public accountant or
licensed public accountant be provided to the
Bank for the term of the loan.
(s) That the City shall maintain insurance
coverage on the Project in
aamount adequate to
protect the Bank's interest forthe term of the
loan with the Bank named as loss payee.
(6) That the City will comply with any
special conditions specified by the Department of
Environmental Protection's environmental
determination until all ,financial obligations to
the State have been discharged.
(7) That the City certify to the Bank that
it has secured all permits, licenses and
approvals necessary and that it has a dedicated
source of revenue for repayment.
n
(e) That the city establish a rate, charge
or assessment schedule in order to pay principal
pand rovide interest. Suchoperations
Yate ancharge
de o schedule shall
provide total operations and debt service
coverage at a level at which the coverage for the
Bank is sufficient.
-3-
WPPCEH3582
(9) That the City must. demonstrate the
ability to pay reasonably anticipated costs of
operating and maintaining the financed Project.
(10) That the City abide by the Say
Regulations, as revised and amended and relevant
State statutes of the State of Maine.
-4-