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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-