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HomeMy WebLinkAbout2024-08-12 24-250 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: 24-250 AUGUST 12,2024 THAT the Finance Director, with the approval of the Finance Committee, is authorized, in the name of and on behalf of the City, to establish, determine and approve the form, date, maturities (not to exceed the maximum term permitted by law), denominations, interest rates, payment dates, provisions for redemption prior to the stated maturity date, 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, such establishment, determination and approval to be conclusively evidenced by his 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 such 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 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 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, bond purchase agreements, continuing disclosure agreements, tax compliance agreements, official statements or other offering documents, instruments, a Letter of Representation or other agreement required to allow the bonds or notes to be issued through the Depository Trust Company Book-Entry Only System, and such other documents and closing certificates, as may be necessary or desirable in order to accomplish the issuance of the bonds and notes and the investment of the proceeds thereof (the �� Bond Documents"),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, which waiver of sovereign or governmental immunity is hereby authorized, confirmed and approved, and such other details as he shall establish, determine and approve, such establishment, determination and approval to be conclusively evidenced by his execution thereof. THAT if the bonds or notes (or any portion thereof) are issued on a tax-exempt basis, the Finance Director 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 the Finance Director is authorized, in the name of and on behalf of the City: To covenant and agree (i) that no part of the proceeds of the bonds or notes, or the Project, shall be used directly or indirectly in any manner that would cause the bonds or notes to be��private activity bonds"or`�arbitrage bonds" within the meaning of Sections 141 or 148 of the Internal Revenue Code of 1986, as amended (the ��Code"), and (ii) that the City will take all such action as 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; and To designate such bonds or notes as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Code, to the extent such designation is available and permissible under said Section 265(b)(3). 24-250 AUGUST 12,2024 THAT the Finance Director 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 the Project, or any portion thereof, includes, but is not limited to: (1) the purchase price or acquisition cost of all or any portion of the Project; (2) the cost to design, construct or reconstruct, renovate, improve, repair, furnish and equip the Project; (3) the cost of demolition, disposal, site preparation, permitting and environmental remediation in connection with the Project; (4) the cost of land, easements and other real property interests, landscaping and site preparation, 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; (5) the cost of feasibility studies, surveys, environmental studies and assessments, engineering, plans and specifications, legal and other professional services associated with the Project; (6) issuance costs, bond insurance, capitalized interest and other costs, fees and expenses relating to the financing transaction and issuance of the bonds and notes, and (7) other costs of the Project ancillary or related to the foregoing costs. THAT the proceeds of the bonds and notes (including premium, if any, and any investment earnings thereon), are appropriated for the following purposes, to be selected by the Finance Director: 1. To the cost of the Project; 2. 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; 3. To pay debt service on the bonds or notes. THAT if the actual cost of the 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 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 or temporary basis, as an assistant, a deputy, or otherwise, is authorized to act for such official, in the name of and on behalf of the City, with the same force and effect as if such official had himself or herself performed such act. THAT if the Finance Director, Chair of the City Council, or Clerk 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. 24-250 AUGUST 12,2024 THAT while any of the bonds remain outstanding, the Finance Director is 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 the maximum term permitted by law), and all other details of such refunding bonds, which may be made callable, with or without premium, prior to their stated date(s) of maturity, and to determine the form and manner of their sale and award, which refunding bonds shall be signed in like manner as the bonds. 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 Project, 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 he 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 extinguished and of no further force and effect. THAT the City may pay certain costs of the Project 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. THAT the question of issuing the bonds and notes authorized by the foregoing votes be submitted to the voters of the City of Bangor at a referendum election at a time to be designated by the City Council, and that the foregoing votes authorizing the issuance of such bonds and notes shall not be effective unless and until approved by the voters in such referendum election, and if not so approved, the bonds and notes shall not be issued. IN CITY COUNCIL AUGUST 12, 2024 COrd 24-250 First Reading and Referral to Finance Committee on August 18, 2024 �����:,w�,��° '" .�� ��°,„�,��"���,°��*°.������ �� CITY CLERK IN CITY COUNCIL AUGUST 26, 2024 COrd 24-250 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 �����:,w�,��° '" .�� ��°,„�,��"���,°��*°.������ �� CITY CLERK