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HomeMy WebLinkAbout2016-07-25 16-285 ORDERCOUNCIL ACTION Item No. 16-285 Date: July 25, 2016 Item/Subject: Order, Authorizing Issuance of $7,003,000 of the City's General Obligation Bonds and a Tax Levy There For Responsible Department: Finance Commentary: The attached Order would authorize the issuance of $7,003,000 in general obligation bonds for the following purposes: $330,000 for equipment replacement, $1,808,000 for streets and sidewalks, $1,650,000 for street/retaining wall; $1,200,000 for Fire apparatus, $160,000 for building improvements, $750,000 for Penobscot River remediation, and $1,105,000 for WWTP infrastructure improvements. These projects were discussed during the recently completed FY 2017 budget process. This Order will require a Public Hearing at the August 8"' City Council Meeting A�U� Department Head Manager's Comments: n n / (, City Manager Associated Information: Order Budget Approval: A Finance Director Legal Approval: City S icitor Introduced for Passage x First Reading Page _ of _ x Referral — Finance Committee of 8/1/16 Assigned to Councilor Durgin CITY OF BANGOR 16-285 JULY 25, 2016 (TITLE.) Order, Authorizing Issuance of $7,003,000 of the City's General Obligation Bonds and a Tax Levy There For. THAT pursuantto i.Section 13 ofArticle VIII of (Privater Special Laws of "31, Chapter 54 and all amendmentsr • acts additional thereto),and all other authority_ • enabliM there is herebyauthorized r approved the issue and sale of the City's general obligation bonds in an amount not to exceed the aggregate principal • of Million• r )r($7,003,000). The proceeds r derived • V-tp--:-q tisajr •• • • r • r • 'r be -r and are hereby•r rr -• to pay a portion of •ti defined) of 'Following • •. Estimated ri U Amount Life Street/Retaining Wall ApparatusFire • • r- r •944AIIUAt "M0951 Building Improvements Penobscot River Remediation Vl WTP Infrastructure $1,808,000 $1,650,000 $1,200,000 $330,000 15 years $160,000 1 years $750,000 12 years $1,105,000 THAT the ar weighted period of • property constituting the Projects to be -r with the proceeds obonds -• determined to be the period of indicated above for r Projects. THAT the Finance Director, with the approval of the Finance Committee, be and hereby is authorized to prepare, issue, and sell such bongs in the name of and on behalf of the City, at one time, or from time to time, as one or more separate bond issues, and to determine the (W5618826.1) IN CITY COUNCIL JULY 25, 2016 FIRST READING AND REFERRAL TO FINANCE COMMITTEE MEETING OF AUGUST 1, 201166/ It CITY CLERK IN CITY COUNCIL AUGUST 8, 2016 MOTION MADE AND SECONDED TO OPEN PUBLIC HEARING PUBLIC HEARING OPENED MOTION MADE AND SECONDED TO CLOSE PUBLIC HEARING PUBLIC HEARING CLOSED MOTION MADE AND SECONDED FOR PASSAGE PASSED CITY CLERK 16-285 JULY 25, 2016 date(s), 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, such approval to be conclusively evidenced by the execution thereof. THAT the Finance Director, with the approval of the Finance Committee, be and hereby is authorized to provide that any of 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. 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, ard the principal of such bonds maturing in such years. THAT pursuant to 30 A M.R.S.A. §5772, Section 15 of Article VIII of the City Charter and any other authority thereto enabling, the Finance Director, with the approval of the Finance Committee Is hereby authorized to issue temporary nates of the City in anticipation of the forgoing bond issue, to be in such form and contain such terms and provisions including, without limitation, maturities (not to exceed 3 years from the issue date), denominations, interest rate or rates, place of payment, and other details as they small approve, their approval to be conclusively evidenced by their execution thereof. THAT said bonds and nates in anticipation thereof 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 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 the Finance Director be, and hereby is, authorized and empowered in the name of and on behalf of the City to execute and deliver all such contracts, agreements, certificates, instruments and other documents as may be necessary or advisable, with the advice of counsel for the City, in connection with the financing of the Projects and the sale, execution, issuance, and delivery by the City of the bonds and notes. THAT the Finance Director -,y is authorized to select the underwriter,registrar, paying agent and transfer agent fbrbonds or notes e r• authorized and the Finance Director be and hereby is authorized and empowered execute and deliver such contracts or agreements be necessaryor appropriate r r THAT the Finance Director be and hereby is authorized to prepare, • • be prepared, • an Official Statement for offering and .. - •- rr r r r - -• • - , _.r �w • �_. r •� � r r r r �-- . , r. • "r r { W 5618826.1) 16-285 JULY 25, 2016 Preliminary Official Statement and the Official Statement in the name of and on behalf of the City in connection with offering the bonds or notes for sale be and hereby is approved. THAT the bonds and notes shall be transferable only on the registration books of the City kept by the transfer agent, and said principal amount of the bonds and notes 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 or notes as may be required to provide for exchanges or transfers of bonds or notes as heretofore authorized, all such bonds or notes to bear the original mature of the Finance Director and Chair of the City Council, and in case any officer of the City whose signature appears on any bead or note shall cease to be such officer More 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 or notes, the City and transfer amt 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 or notes upon exchanges or transfers thereof shall be paid by the person requesting the same. THAT in lieu of physical certificates of the bonds and notes hereinbefore authorized, the Finance Director be and hereby is authorized to undertake all acts necessary to provide for the Issuance and transfer of such bonds and notes in book -entry form pursuant to the Depository Trust Company Book -Entry Only System, as an alternative to the provisions of the foregoing paragraphs regarding physical transfer of bonds, and the Finance Director be and hereby is authorized and empowered to enter into a Letter of Representation or any other contract, agreement or understanding necessary or, in her opinion, appropriate in order to qualify the bonds for and participate in the Depository Trust Company Book -Entry Only System. THAT the bonds arab noes issued in anticipates thereof be issued an either a taxable or a tax-exempt basis, or a combination thereof, as determined by the Finance Director, with the approval of the Finance Committee, THAT, If the bonds or notes, or any part of them are issued on a tax exempt basis, Finance Director be and hereby is authorized and directed to covenant and certify in the name of and on behalf of the City that no part of the proceeds of the Issue and sale of the bonds or rotes authorized to be issued hereunder der and not part of the Projects shall be used directly or indirectly in any manner that would cause such bonds or nates to be "private activity bonds" or "arbitrage bonds" within the meaning of Sections 141 and 148 of the Internal Revenue Code of 1986, as amended (the "Code"). (W5618826. 1) 16-285 JULY 25, 2016 THAT, if the bonds or notes, or any part of them, are issued on a tax exempt basis, the Finance Director be and hereby is authorized to covenant and agree, in the name of and on behalf of the City, for the benefit of the holders of such bonds or notes, that the Citi will file any required reports and take any other action that may be necessary to ensure that interest on the bonds or notes will remain exempt from federal income taxation and that the City will refrain from any action that would cause interest on the bonds or notes to be subject to federal income taxation. THAT, If the bonds or notes, or any part of them, are issued on a tax exempt basis, the Finance Director be and hereby is authorized and empowered to take all such action as may be necessary to designate the bonds or notes as qualified tax-exempt obligations for purposes of Section 265(b) of the Code; it being the City Council`s intention that, to the extent permitted under the Cade, the bonds or notes be Section 265(b) designated and that the Finance Director with advice of bond counsel, make the required Section 265(b) election with respect to such bonds to the extent that the election may be available and advisable as determined by the Finance Director. - - • • • r - • • � r;- r •. r . • rr -, r. r. - THAT the term "cost'" or "costs" as used herein and applied to the Projects, 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 Projects; (1) 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 Projects; (3) the cost of feasibility studies, surveys, environmental studies and assessments, engineering, plans and specifications, legal and other professional services associated with the Projects; (4) issuance costs, including premiums for insurance, capitalized interest and other financing charges, fees and expenses relating to the financing transaction. earningsTHAT the investment on proceeds of bonds • notes,Ifr the excess proceeds of bonds or •tes (including • be r hereby appropriated for the following purposes: 1. To any costs of the Projects in excess of the principal amount of the bonds or notes authorized hereunder; 2. If the bonds or noes are issued on a tax exempt basis, in accordance with applicable terms and provisions of the Arbitrage and Use of Proceeds Certificate delivered in connection with the sale of the bonds or notes including, to the extent permitted thereunder, to the City's General Fund; (W561882& 1) 16-285 JULY 25, 2016 MINOR=. . - -, . THAT if the actual cost of any Project differs from the estimated cast set forth herein, whether due to completion, on, delay or abandonment of the Project for any other reason, the Finance Director is authorized, in her discretion to reallocate proceeds of the bonds to any other listed Project or to any other project or improvement that the City Council has approved or may in the future approve as part of the City`s annual capital improvement plan. 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 the name of and on behalf of the City to do or cause to be done all such acts and thins as may be necessary or advisable, with the advice of counsel for the City, in order to effect the sale, issuance, execution, and delivery by the City of the bonds and notes. THAT if any of the officers or officials of the City who have signed or sealed the bonds and notes hereinbefore authorized shall cease to be such officers: or officials before the bonds or rues so signed and sealed shall have been actually authenticated or delivered by the City, such bonds or notes nevertheless may be authenticated, issued, and delivered with the same force and effect as though the pion or persons who signed or sealed such bonds notes had not ceased to be such officer or official; and also any such bonds or notes may be signed and sealed on behalf of the City by those persons who, at the actual date of the execution of such bonds or notes, shall be the proper officers and officials of the City, although at the nominal date of such bonds or notes 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 THAT any issue of bonds may be consolidated with and Issued at the same time as any 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 bands 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, pry to their stated date(s) of maturity, and each refunding band 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. { W 5618826.1) 16-285 JULY 25, 2016 THAT it is the intent of the City Council that this Order constitute the City's declaration of official intent within the meaning of Treasury Regulation §1.150-2. { W5618826.1 }