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HomeMy WebLinkAbout2023-07-24 23-230 OrderCITY COUNCIL ACTION Council Meeting Date: Item No: Responsible Dept: Requested Action: Summary Committee Action Meeting Date: For: Against: City Manager City Solicitor Finance Director Map/Lot: Introduced for: Order Committee: Action: Staff Comments & Approvals Date: Item No: Assigned to Councilor: 23-230,As Amended JULY 24, 2023 • The current HVAC system is in need of significant and urgent upgrades. There is currently no cooling system in the building. The current heating and ventilation system is in a deteriorated condition which is inefficient and costly to operate, with resulting substandard air quality. • One of the two boilers in City Hall is completely non-operational. The other boiler is approximately 25 years old and at the end of its useful life. • The current City Hall elevator is not ADA compliant. • These circumstances raise significant concerns concerning accessibility to and the potential disruption to the operation of and services provided at City Hall and therefore pose a significant risk to the health and safety of the residents of the City and the users of City Hall; • There is therefore a substantial public exigency to speedily acquire, install, replace and improve the City Hall HVAC system in order to meet the needs of the residents of the City and the users of City Hall; • Because there was and is an urgent and unavoidable need for the City Hall Renovation Project to commence, proceed and be completed in an expeditious manner, the City Council finds, determines and declares that the above circumstances constitute emergency circumstances under Article VIII, Section 19(b)(vi)of the City Charter, and that the authorization and approval of the general obligation bonds to be issued for the City Hall Renovation Project are and shall be excepted from the referendum approval requirements of Article VIII, Section 19(a)(1) of the City Charter. THAT the estimated weighted period of utility for the property constituting the Projects to be financed with the proceeds of the bonds and notes is hereby determined to be the period of time indicated above for said Projects. THAT the Finance Director, with the approval of the Finance Committee, be and hereby is authorized, in the name of and on behalf of the City, to issue and sell said bonds and notes, at one time or from time-to-time, up to $13,339,000 aggregate principal amount, which bonds and notes may be issued as physical certificates or in book-entry form pursuant to the Depository Trust Company Book-Entry Only System. THAT the bonds and notes 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 the Finance Director, with the approval of the Finance Committee, be and hereby is authorized, in the name of and on behalf of the City, to determine the form, dates, maturities (not to exceed the maximum term permitted by law), denominations, interest rates, place of payment, provisions for redemption prior to the stated maturity date(s), with or without a premium, as provided in Title 30-A, §5772(6) of the Maine Revised Statutes, as amended, and all other details of the bonds and notes, including the timing and provision for their sale and award, which may be through a public offering or a private placement or the general resolution program of the Maine Municipal Bond Bank (the ��Bond Bank'�, or some combination thereof, on a competitive or negotiated basis, or some combination thereof, his determination and approval thereof to be conclusively evidenced by the execution thereof. 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 Finance Director be and hereby is authorized, in the name of and on behalf of the City, to do or cause to be done all such acts and things, including to approve, execute and deliver all such contracts, agreements, loan agreements (including but not limited to one or more loan agreements between the City and the Bond Bank, with such usual and customary terms and provisions, not contrary to the general tenor hereof, as the Bond Bank may require), investment agreements, financial or municipal advisory agreements, underwriting agreements, bond purchase agreements, official statements, certificates, tax certificates, instruments, a Letter of Representation or other agreement required to qualify the bonds or notes for and participate in the Depository Trust Company Book-Entry Only System and such other documents (the ��Bond Documents"), as may be necessary or advisable in order to accomplish the issuance of the bonds and notes, which Bond Documents may 23-230,As Amended JULY 24, 2023 be in such form and contain such terms and provisions including, without limitation, the waiving of the City's sovereign or governmental immunity with respect to the enforceability of any of the forgoing, and such other details as he shall approve, his approval to be conclusively evidenced by his execution thereof. THAT if the bonds or notes (or any portion thereofi� are issued on a tax-exempt basis, the Finance Director be and hereby is authorized, in the name of and on behalf of the City, to covenant and certify that no part of the proceeds of the issue and sale of the bonds or notes shall be used directly or indirectly, in such a manner as would cause such bonds or notes 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"). THAT if the bonds or notes (or any portion thereofi� are issued on a tax-exempt basis, the Finance Director be and hereby is authorized, in the name of and on behalf of the City, to covenant and agree for the benefit of the holders of such bonds 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 portion thereofi� are issued on a tax-exempt basis, the Finance Director be and hereby is authorized to take all such action as may be necessary to designate such 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 e�ent permitted under the Code, 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 e�ent that the election may be available and advisable as determined by the Finance Director. THAT the Finance Director be and hereby is authorized, in the name of and on behalf of the City, to covenant, certify, and agree 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��costs" as used herein and applied to Projects, or any portion thereof, includes, but is not limited to: (1) cost of feasibility studies, surveys, environmental studies and assessments, engineering, plans and specifications, legal and other professional services associated with the Projects; (2)the cost to design, construct, renovate, refurbish, improve, acquire, replace, furnish and equip the Projects; (3) the cost of land, easements and other real property interests, landscaping and site preparation, utility e�ensions, all appurtenances and other fi�ures, facilities, buildings and structures either on, above, or under the ground which are used or usable in connection with the Projects; (4) other costs of the Projects ancillary or related to the foregoing costs, and (5) issuance costs, including premiums for insurance, capitalized interest and other financing charges, fees and expenses relating to the financing transaction. THAT the proceeds of the bonds and notes (including premium), if any, and the investment earnings thereon, if any, be and hereby are appropriated for the following purposes, to be selected by the Finance Director: 1. To the cost of the Projects; 2. If the bonds or notes 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 e�ent permitted thereunder, to the City's General Fund; 3. To pay debt service on the bonds or notes. THAT if the actual cost of any Project differs from the estimated cost, whether due to completion, delay or abandonment of such Project, or for any other reason, the Finance Director is authorized, in his sole discretion, to reallocate proceeds of the bonds or notes to any other 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. 23-230,As Amended JULY 24, 2023 THAT if the Finance Director, Chair of the City Council, or Clerk are for any reason unavailable to approve and execute the bonds or notes or any related Bond Document, the person or persons then acting in any such capacity, whether on an interim or acting basis, 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 if any of the officers or officials of the City who have signed or sealed the bonds or notes shall cease to be such officers or officials before the bonds or notes 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 person 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 in the name of and 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 during the term any of the bonds are outstanding, in order to obtain debt service savings, the Finance Director is hereby authorized, in the name of 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 authorized hereby be made callable, with or without premium, prior to their stated date(s) of maturity, and each such refunding bond 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 if, following issuance of some but less than all of the bonds authorized hereby, the Finance Director determines, in his sole discretion, that the remaining authorized but unissued bonds will not be issued in furtherance of the Projects, then the Finance Director is authorized, in the name of and on behalf of the City, to note on the financial books and records of the City, in the form and manner as she shall determine to be appropriate, that such authorized but unissued bonds will not be issued, following which notation the remaining unissued bonds shall not thereafter be issued and the authority established pursuant to this Order to issue such remaining unissued bonds shall be e,xtinguished and of no further force and effect. THAT the City may pay certain costs of the Projects prior to the issuance of the bonds and notes authorized hereby (referred to as ��original expenditures'�; to that end, the City hereby declares its official intent to reimburse itself for such original expenditures from the proceeds of such bonds and notes, and this Order shall constitute the City's declaration of official intent pursuant to Treasury Regulation §1.150-2. CITY COUNCIL ACTION Council Meeting Date: Item No: Responsible Dept: Requested Action: Summary Committee Action Meeting Date: For: Against: City Manager City Solicitor Finance Director Map/Lot: Introduced for: Order Committee: Action: Staff Comments & Approvals Date: Item No: Assigned to Councilor: 23-230 JULY 24, 2023 THAT the Finance Director, with the approval of the Finance Committee, be and hereby is authorized, in the name of and on behalf of the City, to determine the form, dates, maturities (not to exceed the maximum term permitted by law), denominations, interest rates, place of payment, provisions for redemption prior to the stated maturity date(s), with or without a premium, as provided in Title 30-A, §5772(6) of the Maine Revised Statutes, as amended, and all other details of the bonds and notes, including the timing and provision for their sale and award, which may be through a public offering or a private placement or the general resolution program of the Maine Municipal Bond Bank (the ��Bond Bank'�, or some combination thereof, on a competitive or negotiated basis, or some combination thereof, his determination and approval thereof to be conclusively evidenced by the execution thereof. 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 Finance Director be and hereby is authorized, in the name of and on behalf of the City, to do or cause to be done all such acts and things, including to approve, execute and deliver all such contracts, agreements, loan agreements (including but not limited to one or more loan agreements between the City and the Bond Bank, with such usual and customary terms and provisions, not contrary to the general tenor hereof, as the Bond Bank may require), investment agreements, financial or municipal advisory agreements, underwriting agreements, bond purchase agreements, official statements, certificates, tax certificates, instruments, a Letter of Representation or other agreement required to qualify the bonds or notes for and participate in the Depository Trust Company Book-Entry Only System and such other documents (the ��Bond Documents"), as may be necessary or advisable in order to accomplish the issuance of the bonds and notes, which Bond Documents may be in such form and contain such terms and provisions including, without limitation, the waiving of the City's sovereign or governmental immunity with respect to the enforceability of any of the forgoing, and such other details as he shall approve, his approval to be conclusively evidenced by his execution thereof. THAT if the bonds or notes (or any portion thereofi� are issued on a tax-exempt basis, the Finance Director be and hereby is authorized, in the name of and on behalf of the City, to covenant and certify that no part of the proceeds of the issue and sale of the bonds or notes shall be used directly or indirectly, in such a manner as would cause such bonds or notes 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"). THAT if the bonds or notes (or any portion thereofi� are issued on a tax-exempt basis, the Finance Director be and hereby is authorized, in the name of and on behalf of the City, to covenant and agree for the benefit of the holders of such bonds 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 portion thereofi� are issued on a tax-exempt basis, the Finance Director be and hereby is authorized to take all such action as may be necessary to designate such 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 e�ent permitted under the Code, 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 e�ent that the election may be available and advisable as determined by the Finance Director. 23-230 JULY 24, 2023 THAT the Finance Director be and hereby is authorized, in the name of and on behalf of the City, to covenant, certify, and agree 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��costs" as used herein and applied to Projects, or any portion thereof, includes, but is not limited to: (1) cost of feasibility studies, surveys, environmental studies and assessments, engineering, plans and specifications, legal and other professional services associated with the Projects; (2)the cost to design, construct, renovate, refurbish, improve, acquire, replace, furnish and equip the Projects; (3) the cost of land, easements and other real property interests, landscaping and site preparation, utility e�ensions, all appurtenances and other fi�ures, facilities, buildings and structures either on, above, or under the ground which are used or usable in connection with the Projects; (4) other costs of the Projects ancillary or related to the foregoing costs, and (5) issuance costs, including premiums for insurance, capitalized interest and other financing charges, fees and expenses relating to the financing transaction. THAT the proceeds of the bonds and notes (including premium), if any, and the investment earnings thereon, if any, be and hereby are appropriated for the following purposes, to be selected by the Finance Director: 1. To the cost of the Projects; 2. If the bonds or notes 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 e�ent permitted thereunder, to the City's General Fund; 3. To pay debt service on the bonds or notes. THAT if the actual cost of any Project differs from the estimated cost, whether due to completion, delay or abandonment of such Project, or for any other reason, the Finance Director is authorized, in his sole discretion, to reallocate proceeds of the bonds or notes to any other 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 if the Finance Director, Chair of the City Council, or Clerk are for any reason unavailable to approve and execute the bonds or notes or any related Bond Document, the person or persons then acting in any such capacity, whether on an interim or acting basis, 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 if any of the officers or officials of the City who have signed or sealed the bonds or notes shall cease to be such officers or officials before the bonds or notes 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 person 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 in the name of and 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. 23-230 JULY 24, 2023 THAT during the term any of the bonds are outstanding, in order to obtain debt service savings, the Finance Director is hereby authorized, in the name of 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 authorized hereby be made callable, with or without premium, prior to their stated date(s) of maturity, and each such refunding bond 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 if, following issuance of some but less than all of the bonds authorized hereby, the Finance Director determines, in his sole discretion, that the remaining authorized but unissued bonds will not be issued in furtherance of the Projects, then the Finance Director is authorized, in the name of and on behalf of the City, to note on the financial books and records of the City, in the form and manner as she shall determine to be appropriate, that such authorized but unissued bonds will not be issued, following which notation the remaining unissued bonds shall not thereafter be issued and the authority established pursuant to this Order to issue such remaining unissued bonds shall be e,xtinguished and of no further force and effect. THAT the City may pay certain costs of the Projects prior to the issuance of the bonds and notes authorized hereby (referred to as ��original expenditures'�; to that end, the City hereby declares its official intent to reimburse itself for such original expenditures from the proceeds of such bonds and notes, and this Order shall constitute the City's declaration of official intent pursuant to Treasury Regulation §1.150-2. IN CITY COUNCIL JULY 24, 2023 COrd 23-230 Motion made and seconded for First Reading and Referral to Finance Committee Meeting on August 7, 2023 Vote: 7—0 Councilors Voting Yes: Davitt, Hawes, Pelletier, Schaefer, Sprague, Yacoubagha, Fournier Councilors Voting No: None Passed �����:,w�,��° '" .�� ��°,„�,��"���,°��*°.������ �� CITY CLERK IN CITY COUNCIL AUGUST 14, 2023 COrd 23-230 Motion made and seconded to Open Public Hearing Public Hearing Opened Michael Beck raised concern that there was not a Finance Committee meeting on August 7, 2023, but on August 8, 2023, and that this item was not discussed. He requested that it be referred back to the Finance Committee. He would also like more transparency on the $5,910,600 for building improvements. Motion made and seconded to Close Public Hearing Motion made and seconded to refer back to Finance Committee Passed as Amended ���.�` � M,�� �������w������ � �s� CITY CLERK IN CITY COUNCIL AUGUST 28, 2023 COrd 23-230 Motion made and seconded for Passage Motion made and seconded to Amend by Substitution Vote: 7—0 Councilors Voting Yes: Davitt, Pelletier, Schaefer, Sprague, Tremble, Yacoubagha, Fournier Councilors Voting No: None Amendment Passed 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 as Amended Vote: 7—0 Councilors Voting Yes: Davitt, Pelletier, Schaefer, Sprague, Tremble, Yacoubagha, Fournier Councilors Voting No: None Passed as Amended �����:,w�,��° '" .�� ��°,„�,��"���,°��*°.������ �� CITY CLERK