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HomeMy WebLinkAbout2020-08-10 20-253 OrderTitle, Order CITY COUNCIL ACTION Council Meeting Date: 08/10/2020 Item No: 20-253 Responsible Dept: School Department Requested Action: Order 08/10/2020 20-253 Map/Lot: N/A Authorizing a Loan from the School Revolving Renovation Fund and the Issuance of the City's General Obligation Bonds and a Tax Levy Therefor Summary This Order will authorize a $1,000,000 loan from the School Revolving Renovation Fund (SRRF) and the issuance of the City's general obligation bonds for a portion of phase I of reconstruction of the roof structure at Bangor High School. Under the SRRF program, $472,500 of the loan will be forgiven. The total anticipated cost of the multi -phase project is $3.8 million. The City's Charter requires that bonds issued for a single capital expenditure over a threshold amount, currently $1,333,375, are subject to voter referendum, unless the City Council finds, determines and declares that an emergency exists. The Bangor High School roof was constructed in 1964 and refurbished in 1986 and 2002. Based on a report of Oak Point Associates and Carpenter Associates, the current roof load capacity is nearly half of the required current capacity. This circumstance creates threatens the integrity of the building and an potential risk to the health and safety of the residents of the City and the users of the High School . Based on the Oak Point Study, the City Council finds, determines and declares that this capital expenditure constitutes an emergency and shall be excepted from the referendum approval requirements of Article VIII, Section 19(a)(1) of the City Charter. Committee Action Committee: Finance Committee Meeting Date: 08/03/2020 Action: Recommend for passage For: 5 Against: 0 Staff Comments & Approvals This item will require a public hearing prior to action being taken. City Manager Introduced for: First Reading City Solicitor JJ4 X�� Finance Director CITY OF BANGOR ORDER Date: 08/10/2020 Item No: 20-253 Assigned to Councilor: Okafor 08/10/2020 20-253 Authorizing a Loan from the School Revolving Renovation Fund and the Issuance of the City's General Obligation Bonds and a Tax Levy Therefor WHEREAS, the City of Bangor desires to finance improvements and repairs to the Bangor High School roof (the "Project", as further defined below), with estimated project costs of approximately $3,800,000; and WHEREAS, the City of Bangor intends to finance a portion of the costs of the Project with a $1,000,000 loan through the Maine Municipal Bond Bank's (the "Bond Bank's") School Revolving Renovation Fund ("SRRF") under the Maine School Facilities Finance Program, provided, however, that the City anticipates it will be obligated to repay only $527,500 of such loan; WHEREAS, the current estimated costs of the Project, and the amount of bonds the City expects to authorize and issue to finance the Project exceed the current referendum threshold established under Article VIII, Section 19(a) of the City Charter; and WHEREAS, as determined by the City Council, the Project is necessary for the preservation of public health or safety of the residents of the City of Bangor, which circumstances constitute an emergency under Article VIII, Section 19(b)(vi) of the City Charter; and NOW THEREFORE, following a public hearing held upon due notice posted and published pursuant to Article VIII, Section 13 of the Charter, by the City Council of the City of Bangor, be it hereby ORDERED: THAT pursuant to 30 A M.R.S.A. §5772, Section 13(d) of Article VIII of the City Charter (Private and Special Laws of 1931, Chapter 54 and all amendments thereof and acts additional thereto), and all other authority thereto enabling, there is hereby authorized a loan in the amount not to exceed $1,000,000 from the SRRF program (the "SRRF Loan"), of which $527,500 is expected to be repaid under the terms of the SRRF program, such SRRF Loan (or portion to be repaid) to be evidenced by the City's general obligation bonds, which SRRF loan, and any investment earnings thereon, shall be used and are hereby appropriated to finance a portion of the costs of the following improvements (the "Project"), including issuance costs with respect thereto: Description Amount Estimated Life Bangor High School Roof $1,000,000 40 years 20-253 08/10/2020 BE IT FURTHER ORDERED. - THAT the City Council finds, determines and declares with respect to the Project that an emergency exists within the meaning of Article VIII, Section 19(b)(vi) of the Charter as follows: • The Bangor High School roof was constructed as part of the original High School construction in 1964 and was refurbished and improved in 1986 and 2002; • Based on a report, of Oak Point Associates and Carpenter Associiates, presented to the City Council, the roof currently suffers from, the folliowing, issues: the current roof load capacity is nearly half of the required current capacity,, • These ciircurnstances, create, an unacceptable risk to, the health and safety of the residents of the City/ ands the users of Bangor High School; • There is therefore a substantial public exigency to speedily acquire, install, replace and improve the Bangor High School roof in order to meet the needs of the residents of the City and the users of Bangor High School; • Because there was and is an urgent, and unavoidable need for the Project, to commence,, proceed and be completed in an expeditious manner, the City Council funds, determilines, and declares that the above circumstances constitute emergency circumstances under Article VIII, Section I 9(b)(vi) of the City Charter, and that the authorization and approvali of the SRRF Loan and the related bonds issued or to be, issued for the Project is and shall be excepted from, the referendum, approval requirements of Article VIII, Section 19(a)(1) of the City Charter., BEITFURTHER ORDERED. - THAT the estimated weighted period of utility for the property constituting the Project to be financed with the proceeds of SRRF Loan and the bonds is hereby determined to be the period of time indicated above for said Project. THAT the date, maturities (not to exceed the maximum term permitted by law), denominations, interest rate or rates, place of payment, and other details of said bonds, including the timing and provision for their sale and award shall be determined by the Finance Director with the approval of the Finance Committee. THAT the bonds hereby authorized may be made subject to call for redemption, with or without a premium, before the date 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 the approval of the Finance Committee. THAT the loan agreement entered into with respect to the SRRF Loan and the bonds issued therefore shall be signed by the Finance Director, countersigned by the Chair of the City Council, sealed with the seal of the City, attested by its Clerk, and that said loan agreement and bonds shall be in such form and contain such terms and provisions not inconsistent herewith as they may approve, their approval to be conclusively evidenced by their execution thereof. THAT any issue of bonds may be consolidated with and issued at the same time as any other issue of bonds authorized prior to their issuance, and the bonds may be divided into multiple series and issued in separate plans of financing, with the approval of the Finance Committee 20-253 08/10/2020 THAT in each of the years during which any of the bonds are outstanding, there shall be levied a tax in an amount that, with other revenues, if any, 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 the bonds shall be transferable 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 maturity), upon surrender thereof at the principal office of the transfer agent, with a written instrument of transfer satisfactory to the transfer agent duly executed by the registered owner or his or her attorney duly authorized in writing. 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 exchanges or transfers of bonds as heretofore authorized, all such bonds to 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 or note shall cease to be such officer before the delivery of said bond or note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery thereof. THAT upon each exchange or transfer of bonds, the City and transfer agent shall make a charge sufficient to cover any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cost of which shall be borne by the City, the cost of preparing new bonds upon exchanges or transfers thereof shall be paid by the person requesting the same. THAT the term "cost" or "costs" as used herein and applied to the Project, or any portion thereof, includes, but is not limited to: (1) the cost to design, construct, renovate, refurbish, improve, acquire, replace, furnish and equip the Project; (2) the cost of land, easements and other real property interests, landscaping and site preparation, utility extensions, all appurtenances and other fixtures, facilities, buildings and structures either on, above, or under the ground which are used or usable in connection with the Project; (3) the cost of feasibility studies, surveys, environmental studies and assessments, engineering, plans and specifications, legal and other professional services associated with the Project; (4) issuance costs, including premiums for insurance, capitalized interest and other financing charges, fees and expenses relating to the financing transaction. THAT the Finance Director, Chair of the City Council, 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, and to execute, deliver, file, approve, and record all financing documents, contracts, agreements, certificates and other documents as may be necessary or advisable, with the advice of counsel for the City, to carry out the provisions of the resolutions heretofore adopted at this meeting in connection with the Project, the issuance, execution, sale, and delivery by the City of the bonds and the execution and delivery of the documents, including the entering into of a loan agreement with the Bond Bank under the usual and customary terms as is required by the Bond Bank under its SRRF program, as may be necessary or desirable. THAT if any of the officers or officials of the City who have signed or sealed the bonds hereinbefore authorized shall cease to be such officers or officials before the bonds so signed and sealed shall have been actually authenticated or delivered by the City, such bonds nevertheless may be authenticated, issued, and delivered with the same force and effect as though the person or persons who signed or sealed such bonds had not ceased to be such officer or official; and also any such bonds may be signed and sealed on behalf of the City by those persons who, at the actual date of the execution of such bonds, shall be the proper officers and 20-253 08/10/2020 officials of the City, although at the nominal date of such bonds any such person shall not have been such officer or official. THAT if the Finance Director, Chair of the City Council, or Clerk are for any reason unavailable to approve and execute the bonds or any related financing documents, the person or persons then acting in any such capacity, whether as an assistant, a deputy, or otherwise, is authorized to act for such official with the same force and effect as if such official had himself or herself performed such act. THAT during the term any of the bonds are outstanding, the Finance Director is hereby authorized, in the name and on behalf of the City, to issue and deliver refunding bonds on either a current or advance refunding basis, to refund some or all of the bonds then outstanding, and to determine the date, form, interest rate, maturities (not to exceed 30 years from the date of issuance of the original bonds) and all other details of such refunding bonds including the form and manner of their sale and award. The Finance Director is hereby further authorized to provide that any of such refunding bonds hereinbefore authorized be made callable, with or without premium, prior to their stated date(s) of maturity, and each refunding bond issued hereunder shall be signed by the Finance Director, countersigned by the Chair of the City Council, sealed with the seal of the City, attested by its Clerk. IN CITY COUNCIL AUGUST 10,2020 CR 20-253 Motion made and seconded for First Reading Vote: 9—0 Councilors Voting Yes: Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague, Supica, Tremble,Davitt Councilors Voting No: None Passed CITY CLE IN CITY COUNCIL AUGUST 24,2020 CR 20-253 Motion made and seconded to Open Public Hearing Vote: 9—0 Councilors Voting Yes: Fournier, Hawes,Nichols, Okafor, Schaefer, Sprague, Supica, Tremble,Davitt Councilors Voting No: None Public Hearing Opened No Comments. Motion made and seconded to Close Public Hearing Vote: 9—0 Councilors Voting Yes: Fournier, Hawes,Nichols, Okafor, Schaefer, Sprague, Supica, Tremble,Davitt Councilors Voting No: None Public Hearing Closed Motion made and seconded for Passage Vote: 9—0 Councilors Voting Yes: Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague, Supica, Tremble,Davitt Councilors Voting No: None Passed ,cJ CITY CLE