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HomeMy WebLinkAbout2009-09-14 09-291 ORDERCOUNCIL ACTION Item No_ J9 291 Date: 9/14/2009 Item/Subject: Order, Authorizing Issuance of $1,365,878 of the City's General Obligation Bonds and a Tax Levy Therefor Responsible Department: Finance Commentary: The attached order would authorize the issuance of $1,365,878 in general obligation bonds for the following purposes: fleet vehicle replacement and the permanent financing of the recently completed General Fund energy conservation projects. This Order will be combined with the Refunding Order also on the Council Agenda and prior Council bond authorization will result in the City issuing a total of $14,245,000 in 10 year general obligation bonds. Based on current market conditions and the City's limited capital needs, the City is in a position to take advantage of the favorable condition of the short term municipal bond market. Historically, the City has issued 20 year term bonds; by bundling the refunding opportunity with the shorter term nature of the projects to be funded, the City should realize a lower rate of interest for this issue than would be the norm. Department Head Manager's Comments: This item will require a Public Hearing on 9/28/09 City Manager Associated Information: Budget Approval: Finance Director Legal Approval: dLkwA �U, ity Solicitor Introduced for Passage x First Reading Page _ of _ x Referral — Finance Committee of 9/21/09 A 291 Assigned to Councilor - Bronson September 14, 2009 CITY OF BANGOR (TITLE.) Order, Authorizing Issuance of $1,365,878 of the City's General Obligation Bonds and a Tax Levy Therefor. By the City Council of the City of Bangor, be it hereby ORDERED. THAT pursuant to 30-A M.R.S.A. §5772, Section 13 of Article VI 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, and to evidence such loan, there is hereby authorized the issue and sale at one time and from time to time the City's general obligation bonds in like amount to the above authorized loan, not to exceed the aggregate principal amount of One Million Three Sixty Five Thousand Eight Hundred and Seventy Eight Dollars ($1,365,878). 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 Projects. Estimated seri tin Ufg Fleet Replacement 12 years Energy Efficiency Improvements 12 years 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 Chairman 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 IN CITY COUNCIL September 14, 2009 First Reading & Refferal to Finance Committee of 9/21/2009 at 5pm TY CLERK IN CITY COUNCIL September 30, 2009 Motion Made and Seconded for Passage Motion Made and Seconded to Open the Public Hearing Public Hearing Opened No One from the Public Came Forward Motion Made and Seconded to Close the Public Hearing Public Hearing Closed Motion Made and Seconded for Passage Passed PUTY CITY. CP # 09-291 (TITLE,) Authorizing Issuance of $1,365,878 of the City's General Obligation Bonds and a Tag Levy Therefor(first reading &_Referral to Finance Committee of 9/21/09 at 5pm) Assigned to Councilor - LUAAA111) 4�6p� 39 291 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. THAT pursuant to 30 A M.R.S.A. §5772, Section 15 of Article VI 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 Chairman 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 Chairman 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 Chairman 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 deliver 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 sufficlent 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. 09 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 Internal Revenue Code 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 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 cost 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; 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 extent permitted thereunder, to the City's General Fund; 3. To pay debt service on the bonds. THAT the Finance Director, Chairman 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 the Finance Director, Chairman 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 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 during the term any of the hands are outstanding, the Finance Director is hereby authorized, in the name and on behalf of the City, to issue and deliver refunding bonds to refund some or all of the bonds then outstanding, and to determine the date, form, interest rate (not to exceed 5.00% per annum), 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 Chairman of the City Council, sealed with the seal of the City, attested by its Clerk. CITY OF BANGOR, MAINE NOTICE OF PUBLIC HEARING Notice is hereby given that the Bangor City Council will hold a public hearing at 7:30 p.m., September 30, 2009 at City Hall, 73 Harlow Street, Bangor, Maine on the proposed issuance of the City's general obligation bonds, to be issued in the following amounts and for the following purposes: • $11,765,000 of bonds to refinance the City's outstanding 1997 and 1998 general obligation bonds and to refinance the City's existing lease purchase obligations with Honeywell Global Finance LLC • $1,365,878 of bonds to finance fleet replacement and to construct energy efficiency improvements in various City facilities All persons who desire to be heard on the proposed borrowing are invited to attend the public hearing. The City Council will consider action authorizing the bonds immediately following the public hearing. Copies of the proposed order will be on file and may be reviewed at the office of the City Clerk prior to said public hearing. (W 1528598. t ) OiRlUB ' i" .(� si y1�MANq,tMd1 the Bangor City Cour""VAI pggliG t"UG,at7:30 0.m•- 20, 20Gs.at City Hall, 73 Harlow Street, Bang sine on the proposed issuance of the City's general obligation bonds, to be issued, jn the following amounts and for, the following purposes: • $11,765,0'00 of bonds to refinance-the City's ,outstanding 1997 and 1998 general obligation bonds and to refinance the City's existing lease purchase obligations with Honeywell Global Finance LLC • $1,365,878 of bonds to finance fleet replacement and City facilities. All persons who desire to be heard on the proposed borrowing are invited to attend the public hearing. The City Council will consider action authorizing the bonds immediately following the public hearing. Copies of the proposed order will be on'file and may be reviews at the office of the City CLW* .prier a OOM P '} Sept. T4,2009 a