HomeMy WebLinkAbout2016-07-25 16-284 ORDERCOUNCIL ACTION
Item No. 16-284
Date: July 25, 2016
Item/Subject: Order, Amending Order #13-157 and Authorizing Issuance of $1,000,000 of
the City's General Obligation Bonds for School Building Improvements and for Additional
Cameron Stadium Improvements and a Tax Levy There For
Responsible Department: Finance
Commentary: The attached Order would authorize the issuance of $1,000,000 in general obligation
bonds for the following purposes: $668,000 for Cameron Stadium Improvements and $332,000 for school
building improvements.
In May 2013, Council Order 13-157 authorized the issuance of $1.2 million in general obligation bonds
for improvements at Cameron Stadium. At that time, the School Department presented an initial plan to
significantly improve the facilities at Cameron Stadium. The plan included replacement of the bleachers,
lighting system, new locker rooms and restrooms and equipment storage, expansion of the track and
the installation of turf. The bond proceeds were used to replace the bleachers, lighting and construct
restroom facilities.
The City's Charter requires that the issuance of general obligation bonds for a single capital
improvement be approved by voters if it exceeds a certain dollar threshold and does not meet one of
the defined exceptions. Both the bleachers and lighting portions of the project were deemed a life
safety issue that needed to be addressed as an emergency. The bleachers were unsafe and likely to be
put out of service and the lighting system was a hazard to participants and patrons alike. As there was
no plan to issue additional bonds for this project, the bond order did not include the specific language
citing the findings in support of the exception. Therefore, this Order would also amend Council Order
13-157 to state the emergency nature of the bonds for the bleacher and lighting upgrades.
These projects were discussed during the recently completed FY 2017 budget process. In addition, this Order
will require a Public Hearing at the August 8"' City Council Meeting
Department Head
Manager's Comments:
Associated Information:
Order
Budget Approval:
Legal Approval:
Introduced for
Passage
x First Reading
x Referral — Finance Committee of 8/1/16
City Manager
Finance Director
Page _ of _
i VEMA
Assigned to Councilor Perry
CITY OF BANGOR
16-284
JULY 25, 2016
(TITLE.) Order, Amending Order #13-157 and Authorizing Issuance of $1,000,000 of the
City's General Obligation Bonds for School Building Improvements and for
Additional Cameron Stadium Improvements and a Tax Levy There For.
WHEREk% on May 29, 2013, the Bangor City Council adapted Order #13-157 authWzing
the issuance of the City's general obligation bonds in an amount not to exceed $1,200,000 to
provide funds to replace bleachers, construct restroom and cold storage facilities and upgrade
the electrical system / lights at Cameron Stadium (the "Original Cameron Stadium
Improvements");
WHEREAS„ the amount of bands authorized by Order #13-157 ($1,200,000) fell below
the then -applicable referendum threshold ($1,231,000) establish under Article VIII, Section
19(a) of the City's Charter; and
WHEREAS, at the time Order #13-157 was adopted, the City Council anticipated that
certain related additional Cameron Stadium improvements, including but not limited to locker
rooms (the "Additional Cameron Stadium Improvements`), would be funded through private fund
raising efforts; and
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WHEREAS, there is a possibility that the Original Cameron Stadium Improvements: and
the Additional Cameron Stadium Improvements (referred to as the "Combined Cameron Stadium
Improvements") could be treated as a single capital improvement under Article VIII, Section 19(a)
of the Charter, which combined authorized amount of bonds for the Combined Cameron Stadium
Improvements ($1,868,000) would exceed the Charters current referendum threshold
($1,271,85:0); and
WHEREAS, certain portions of the Original Cameron Stadium Improvements were
necessary for the preservation of public health or safety and could have been excepted from the
Charter referendum requirement by the City Council under Article VIII, Section 19(b)(vi) of the
Charter; and
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IN CITY COUNCIL
JULY 25, 2016
FIRST READING AND REFERRAL TO FINANCE COMMITTEE MEETING OF
AUGUST 1, 2016
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 PASHAGE
PASSED
CITY CLERK
16-284
JULY 25, 2016
WHEREAS, the City Council now desires to amend Order #13-157 to retroactively
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for Additional f Stadium f f
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THAT pursuant to 30-A M.R.S.A. §:5772, Section 13 of Article VIII of the Charter (private
and Special laws of 1931, Chapter 54 and all amendments thereof and acts additional thereto),
and all other authority thereto enabling, tyre is hereby authorized and approved the issue and
sale of the City's general obligation lois in an amount not to exceed the aggregate principal
amount of One Million [dollars ($1,000,000). The proceeds derived from the sale of said bonds,
including premium, if any, and any investment earnings thereon shall be used and are hereby
appropriated to pay a portion of the costs (as herein defined) of the following improvements (the
Estimated
DescripAign Amount life
Cameron Stadium locker Rooms $668,000 15 years
14t' Street School — roof repair / replacement $332,000 20 years
THAT the City Council finds, determines and declares, with respect to the Original
Cameron Stadium Improvements, that an emergency existed and continues to exist with respect
to the need to acquire, Install, replace and improve the bleachers and electrical system / lights
ports of such Original Cameron Stadium Improvements within the meaning of Article VIII,
Section 19(b)(vi) of the Charter as follows:
• Cameron Stadium was built in the early 1940's and suffered from the following
issues: moisture infiltration had jeopardized the integrity of the walls; the
structural beams did not meet current capacity codes; the metal decking consisted
of lead paint, was flaking and was extremely slippery when wet; and the seating
section was not ADA compliant.
• The bleachers in Cameron Stadium being replaced were unsafe and were beyond
the end of their useful life;
• The electrical lighting system in Cameron Stadium was unsafe in that the wiring
which fed the various light poles was buried but not encased in conduit leading to
three instances were spectators and an employee received a shock attributable to
the deficient wiring and therefore needed to be replace!;
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JULY 25, 2016
• These circumstances create an unacceptable risk to the health and safety of the
residents of the City;
• There was and is therefore a substantial public exigency to speedily acquire, install,
replace and improve the bleachers and electrical system / lights, portions of
Cameron Stadium In order to meet the needs: of the residents of the City;
• Because there was and is an urgent and unavoidable need for these portions of
the Original Cameron Stadium Improvements, the City Council finds, determines
and declares that emergency circumstances exist under Article VIII, Section
19(b)(vi) of the City Charter requiring approval of the bonds issued or to be issued
for such improvements without referendum approval, which would put timely
completion of the Combined Cameroon Stadium Improvements at risk.
THAT in the event the above -retroactive declaration of an emergency with respect to the
Original Cameron Stadium Improvements: is found to be defective in any manner, the City Council
finds, determines and declares with respect to the Additional Cameron Stadium ImpNrovements,
that an emergency egoists with respect to the need to acquire, install, replace and improve the
Additional Cameron Stadium Improvements within the meaning of Article VIII, Section 19(b)(vi)
of the Charter as follows:
• At the time Order #13-157 was adopted, the City Council could have found and
declared that an emergency existed with respect to the need to acquire, install,
replace and improve the bleachers and electrical system / lights portions of the
Original Cameron Stadium Improvements within the meaning of Article VIII,
Section 19(b)(vi) of the Charter
• It is important for the Combined Cameron Stadium Improvements be completed
in a timely fashion.
• These circumstances create an unacceptable delay in the completion of the
Combined Cameron Stadium Improvements;
• There is a substantial public need to speedily complete the Combined Cameron
Stadium Improvements in order to meet the needs of the residents of the City;
• The City Council finds, determines and declares that emergency circumstances
exist under Article VIII, Section 19(b)(vi) of the City Charter requiring approval of
the bards authorized hereby for such improvements without referendum approval,
which would put timely completion of the Combined Cameron Stadium
Improvements at risk.
a•r r
THAT the estimated weighted period of utility for the property constituting the Projects ti
be financed with the proceeds of the bonds is hereby determined to be the period of tirne
indicated above for said Projects.
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THAT the Finance Director, with the approval of the Finance Committee, be and hereby
is authorized to prepare, issue, and sell such bonds 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
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, tyre 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 pursuant to 30 A M.R.S.A. §5772, Section 15 of Article VIII of the Charter and any
other authority thereto enabling, the Finance Director, with the approval of the Finance
Committee is hereby authorized to issue temporary notes 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 shall approve, their approval to be conclusively
evidenced by their execution thereof.
THAT said bonds and notes in anticipation thereof shall be signed by the Finance Director,
countersigned by the Chair of the City Council, sealed with the seat of the City, attested by Its
Clerk, and that said bonds smell 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 be and hereby is authorized to select the underwriter, registrar,
paying agent and transfer agent for the bonds or notes heretofore authorized and the Finance
Director be and hereby is authorized and empowered to execute and deliver such contracts or
agreements as may be necessary or appropriate in connection therewith.
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JULY 25, 2016
THAT the Finance Director be and hereby is authorized to prepare, or cause to be
prepared, a Preliminary Official Statement and an Official Statement for use in the offering and
sale of the bonds or notes heretofore authorized, such Preliminary Official Statement and Official
Statement to be in such form and contain such information as may be approved by the Finance
Director, with the advice of the bond counsel for the City, and that the use and distribution of the
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 sate 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 duty 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 Inds or notes 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 purges, 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 aunt 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
cast 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 bonds rhereinbeforer _r.
Finance Director be r hereby is authorized to undertaker. necessary to provide fr
issuance and transfer of bonds • notes in •,,•k -entry form pursuant to the Depository
Trust • • . Book -Entry Only r the provisions of r -r rinr
paragraphs ^r, r • physical transfer of bonds, • the Finance Directorbe r hereby
authorized and empowered to enter into a Letter of _ r - • or other contract
agreement or •- r r necessary or, opinion,appropriate order • qualify
bonds r and participate rr r Company Book -Entry
THAT the bonds and notes issued in anticipation 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
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JULY 25, 2016
behalf of the City that no part of the proceeds of the issue and sale of the bonds or notes
authorized to be issued hereunder and not part of the Projects shall be used directly or indirectly
in any manner that would cause such bonds or notes to be "private activity W or "arbitrage
bonds" within the meaning of Sections 141 and 148 of the Internal Revenue Cale of 1986, as
amended (the ""Code").
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 bores or notes, that the City 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 obligatim 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 Sectio 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.
THAT the Finance Director be and hereby is authorized to covenant, certify, 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 City will file any required reports, make any annual financial or material event disclosure, and
take any other action that may be necessary to ensure that the disclosure requirements imposed
by Rule 15c2-12 of the Securities and Exchange Commission, if applicable, are met.
THAT the term "cost" or "casts" 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 cast of land, easements and
other read 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 and notes,
proceedsof bonds •- • premium), be and hereby
appropriated ,• fbilowingpurposes:
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1. To any costs of the Projects in excess of the principal amount of the bands or
notes authorized hereunder;
2. If the bunds or notes are issued on a tax exempt basin 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 rotes including, to the extent
permitted thereunder, to the City's General Fund;
3. To pay debt service on the bonds.
THAT if the actual cost of any Project differs from the estimated cost set forth herein,
whether due to completion, delay or abandonment of the Project for any other reason, the
Finance Director is authorized, in her discretion to reallocate proceeds of the bands 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,of . and other proper officials
the City be, and herebyare, authorized and empowered in the name of and on behalf of
to do or cause to be done all such acts and things as may be necessary or advisable, with the
AW" "f5fk-ei�e-Saleissua-,
THAT if any of " officers or officials .the City whohave signed
or
sealed r,rd.
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notes so signed and sealed shall have been actually authenticated or delivered by the City, such
bonds or r- be authenticated, issued, and delivered with the same force
and effect as • .. personor persons whosignead or Jsuchbonds.. not
ceased to be such officw or official; and also any such bonds or notes may be signed and sealed
on behalfof by those persons who, at the actual date of • of bonds or
notes,be the proper officers and officials. of .- •h at the nominal date of such
bonds or r person r been 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
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.
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to determine the date, form, interest rate, maturities (not to exceed 30 years from the date of
issuance of the original beds) and all other details of such refunding bads including the farm
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.
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.
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