HomeMy WebLinkAbout2013-03-25 13-117 ORDERCOUNCIL ACTION
Item No. 13-117
Date: March 25, 2013
Item/Subject: Order, Authorizing a $3,000,000 Bond Issue to Repair the Bangor Public
Library Roof
Responsible Department: Finance
Commentary:
At a workshop on March 11, 2013, members of the Library Board of Trustees and others approached
the Council to request that the City issue $3,000,000 in General Obligation Bonds for construction of
a new copper roof. At that time Library staff and volunteers shared with the Council a $9,000,000
capital fund raising campaign that would be used for remodeling portions of the library, construction
of a new roof, and enhancement of the endowment. At this time it was stated that the Library had
a $3,000.000 donation that requires a 2-1 match. The Library anticipates privately fundraising for
$3,000,000 and asking the City for $3,000,000 to pay for the roof. If approved, the attached Order
would authorize the issuance of up to $3,000,000 in general obligation bonds to repair the Bangor
Public Library roof.
This Order will require a Public Hearing at the April 8th City Council meeting. In addition, as
required by Article VIII, Section 19 of the City Charter, the question of whether to borrow these
funds will be put before the voters. A separate order establishing the date of the voter
referendum will be an item on the agenda of the April 8th City Council meeting. This item was
discussed at a Council workshop on March 11th and referred to the March 25, 2013 council
meeting.
Manager's Comments:
Associated Information:
Order
Budget Approval:
Legal Approval:
Introduced for
Passage
x First Reading
Referral
Department Head
ca& f1 ' -
City Manager
Finance Director
Page _of_
City Solicitor
13-117
MARCH 25, 2013
Assigned to Councilor Blanchette
CITY OF BANGOR
(TITLE.) Order, Authorizing a $3,000,000 Bond Issue to Repair the Bangor Public Ubrary Roof
By the City Council of the City of Bangor, be it hereby ORDERED.
THAT pursuant to 30-A M.R.S.A. §5772, Article VIII, Section 13(d) 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 the issue and sale
at one time and from time to time the City's general obligation bonds not to exceed the
aggregate principal amount of Three Million Dollars ($3,000,000). 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 Project:
Estimated
Description Amount We
Capital Grant to Bangor Public Ubrary to repair the $3,000,000 30 years
Ubrary roof
........ . .. ........ .... _
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 said bonds 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. 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
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.
(w3602787.1)
IN CITY COUNCIL
March 25,' 2013
i Rppeadin
CITYICLERK
IN CITY COUNCIL
April 8, 2013
Motion made and seconded to open the Public Hearing
Public Hearing Opened
Lee Chick, President of the Library Board of Trustees, supported the
Council's consideration of the bond.
Bob Kelly, Library Trustee, reported that the Building Committee invited
five companies to bid. They recieved four bids and interviewed the two
lowest bids. They opted to go with the lowest bid, Roof Systems of Maine
of Bangor. If approved by the Council' -and voters, construction will
begin on June 19th.
Bill Sullivan, amember of the Friends of the Library, spoke in favor of
the bond and the many services provided by the library.
Frank Bragg, Vice President of the Bangor Public Library encouraged
the Council to support this order.
Motion Made and seconded to Close the Public Hearing
Public Hearing Closed
Motion made and seconded for Passage
Councilor Longo requested a Roll Call vote
Vote: 9-0
Councilors Voting Yes: Baidacci, Blanchette, Civiello,_Gallant, Hawes,
Longo, Nealley, Sprague, Durgin
Councilors `Toting Noo None
Pa se
CITY CLERK
13-117
MARCH 25, 2013
THAT pursuant to 30 A M.R.S.A. §5772, Article VIII, Section 15 of the City Charter and
any other authority thereto enabling, the Finance Director, with approval of the Finance
Committee is hereby authorized to issue temporary notes of the City in anticipation of the
forgoing bond issue, said notes to 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 otherwise 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 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 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 or notes, 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 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 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, the
officers executing such bonds or notes be and hereby are individually authorized and directed
to covenant and certify on 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 shall be used directly or indirectly to
acquire any securities or obligations, the acquisition of which would cause such bonds or notes
to be "arbitrage bonds" within the meaning of Section 148 of the Intemal Revenue Code of
1986, as amended (the "Code").
(W3602787. 1)
13-117
MARCH 25, 2013
THAT, if the bonds or notes, or any part of them, are issued on a tax exempt basis, the
officers executing such bonds or notes be and hereby are individually authorized to covenant
and agree, on behalf of the City, 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 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 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 extent that the election may be available and advisable as determined by the
Finance Director.
THAT the officers executing the bonds or notes be and hereby are individually
authorized to covenant, certify, and agree, 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 "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 of construction, building, alteration, enlargement,
reconstruction, renovation, improvement, and equipping of the Project; (3) the cost of all
appurtenances and other facilities either on, above, or under the ground which are used or
usable in connection with the Project; (4) the cast of landscaping, site preparation, and
remodeling of any improvements or facilities; (5) the cost of all labor, materials, building
systems, machinery and equipment; (6) the cost of land, structures, real property interests,
rights, easements, and franchises acquired in connection with the Project; (7) the cost of all
utility extensions and site, improvements and development; (8) the cost of planning, developing,
preparation of specifications, surveys, engineering, feasibility studies, legal and other
professional services associated with the Project; (9) the cost of environmental studies and
assessments; (10) the cost of financing charges and issuance costs, including premiums for
insurance, interest prior to and during construction and, following completion of construction,
for a period not to exceed 3 years from the issue date thereof, underwriters' fees and costs,
legal and accounting fees and costs, application fees, and other fees and expenses relating to
the financing transaction; and (11) the cost of all other financing authorized hereunder,
whether related or unrelated to the foregoing.
THAT the investment earnings on the proceeds of the bonds and notes, if any, and the
excess proceeds of the bonds or notes (including premium), if any, be and hereby are
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;
(w3e02787.1)
13-117
MARCH 25, 2013
2. If the bonds or notes are issued on a tax exempt basis, in accordance with
applicable terns 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.
THAT if the actual cost of any Project differs from the estimated cost set forth herein,
the Finance Director is authorized, in her discretion to reallocate proceeds of the Bonds to any
other listed Project.
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
such financing documents, contracts, agreements, deeds, assignments, certificates,
memoranda, abstracts, 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 Projects, the issuance, execution, sale, and delivery by the City
of the bonds and notes and the execution and delivery of the documents, including the entering
into of a Loan Agreement with the Bond Bank, as may be necessary or desirable.
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 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 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 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.
(W3602787.1)