HomeMy WebLinkAbout2007-08-13 07-266 ORDERItensffo, 07 266
Date: 8-13-07
Item/Subject: ORDER, Authorizing the issuance of $2,000,000 aggregate principal
amount of general obligation bonds, notes in anticipation thereof and a tax levy
therefor for combined sewere overflow (CSO) projects
Responsible Department: Finance
The attached order will authorize the Ery to Issue up to $2,000,0W in general obligation bonds
through the Maine Munidpal Bond eanks'State Revolving Loan Fund or bond anticipation notesfor
fund combinetl sevrer overflow pmjed s.
Manager's Comments:
A public hearingis required prior to the vote on etre order. Fr�/YnLt ��VldrsoiWrFrV
City Manager
Associated Information:
Budget Approval:
nm Dft;c r
Passage
x First Reading Page_af_
x Referral—Finance Committee of August 20, 2007
07 266
AsnwxxlwC icor Blanchette August 13, 2007
Tq
e " CITY OF BANGOR
(TITLE.) ORDER, Authorizing me Issuance of $2,000,000 Aggregates Principal Amount of
General Obligation Bonds, Notes in Anticipation Thereof and a Tax Levy Therefor
for Combined Sewer Overflow (CSO) Projects
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
pursuant to 30A M.M.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, mere is hereby authorized the issue and sale at ane time
and from time to time up m Two Million Dollars ($2,000,WD) aggregate principal amount of
general obligation bonds of the City of Bangor. The proceeds demmol from the sale of sag
bonds, Including premium, If any, and any imtesmrent earnings thereon shall be used and are
hereby appropriated to pay a portion of the coals (as herein defined) of combined sewer
overflow (CSO) improvements In various locations throughout the Oty, as follows (the
.project"):
Estimated
Description Amount life
project - Combined Sewer Overflow
Improvements $2,000,000 4a years
THAT the estimated weighted period of utility, for the property constituting the Project
to be financed with the proceeds of said bonds is hereby determined m be me period of time
Indicatetl above for said Project.
THAT the date, maturities (not he exceed 25 years from the Issue date), denominations,
irstemst rate or rates (not to exceed 6.50% par annum), place of payment, and other details of
each Issue of said bolls, Including me timing and pm Asion for weir 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 m oil 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 me Finance Director with the
approval of dte Finance Committee.
THAT said bonds shall be signed by me Finance Director, countersigned by the
Chairman of the City Council, soled with the seal of the City, attested by its Clerk, and shall be
in such form and onteln such terns and provisions not inconsistent herewith as they may
approve, their approval m 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
07 266
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 pursuant to 30-A WR,SA. §5772, Section 15 of Article VI of the City Charter and
any other aumo ty thereto enabling, Me Finance Director, with approval of the France
Commiittee is hereby authorized to issue temporary notes of the City in anticipation of the
forgoing bond issue, said bonds M be signed by the Finance Director, countersigned by ttce
Chairman a the City Council, sealed with the seal of Me Cry, attested by Its Clerk, and
otherwise to be in such form and contain such terns and provisions including, without
limitation, maturities (not to exceed 3 years from Me issue date), denominations, interest oto
or rates (not to exceed 6.50% par annum), place of payment, and other details as they shall
approve, their approval to be condudvety evidenced by theb execution thereof.
THAT any temporary notes (including notes in renewal thereof) authorized to be Issued
under this Order may be issued in combination with temporary races (including notes in
renewal thereof) and bolls authorized to be Issued by Me City Council at arty time prior to the
data of Issuance of the temporary notes.
THAT the France Director be and hereby is audinmed to select the underwriter, a
financial advisor and the registrar, paying agent, and transfer agent for the bonds and notes
and to execute and deriver such mntrzcis and agreements as may be necessary or appropriate
W secure their services.
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 bands and rrotes of the same
maturity (but not of other maturity), upon surrender thereof at Me principal office of the
transfer agent, with a written Instrument of transfer satisfactory to the transfer again duty
executed by Me registered owner or his or her attorney duty auMorbed in writing.
THAT the France Director be and hereby Is authorized to undertake all acts necessary
to provide for the issuance and transfer of the bonds in book -entry form pursuant to the
Depository Trust Company Book -Entry Only System, as an alternative to the provisions of the
foregoing paragraph above regarding physical transfer of bonds, and the Finance Director be
and hereby Is authorized and empowered to enter into a tetter of Representation or any other
contract, agreement or understanding necessary or, in her opinion, appropriate in order to
quality the bonds for and partiapate in the Depository Trust Company Book -Entry Only System;
THAT the France DbeMor and Chairman of the City Council from time to time shall
execute such bonds or notes as may be required to provide for archanges or transfers of bonds
or notes as heretofore authorized, all such bonds or notes to bear the original signature ofthe
Finance Director and Chairman of die City Council, and in case any officer of the City wtwse
signature appears on any bond or note shall cease to be such officer before the calker of said
bend or rrote, such signature shall nevertheless be valid and sufficient for all purppses, the
same as if such officer had remained In office undl dellway thereof.
THAT upon main exchange or transfer of bonds or myth die City and transfer agent
Mail make a Marge sufficient to carer 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 mat of which shall be home by the City, the cost of preparing new bonds or notes
upon exdanges or transfers thereof shall be paid by the person requesting the same.
THAT the bonds and rotes issued In anticipation thereof be Issued an ether a taxable
or a tax-exempt basis, or a combination thereof, as determined by Ne Finance D rector, 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 bands or nous; be and hereby are Individually authorlzod and directed
to covenant and certify on behalf of the City Nat no part tithe proceeds of the issue and sale
of the bonds or notes autlwrizer) 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
N 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 ofthem, are issued on a tax exempt bass, the
officers amo ting wxh [rands or notes be and hereby are indivitlually authorized to covenant
and agree, on behalf of the City, for the benefit tithe holders of such bonds or notes, that the
City will file any required reports and take any other action Nat may be necessary to ensure
that interest on the bonds or notes will remain exempt from federal Income taxation and that
the (Sty will refrain from and action that wouH cause interest on the bonds or rotes to be
wbjecc to federal income taxation.
THAT the officers executing the bomb or notes be and hereby are individually
authorized to covenant, car*, and agree, on behalf tithe City, for the benefit tithe holders
of such bonds or notes, that the City will file any required rep^ make any aonual financial or
material event disdcaure, and take any other action that may be necessary to ensure that the
disdowre requirements Imposed by Rule 1S -12 of the Securities and Exchange Commission,
If applicable, are met.
THAT, If the bands or rates, or any part of them, are Issued on a tax exempt basis, the
Finance Director be and hereby is authorized and empowered N take all such action as may be
muessary to designate the bonds or rotes as qualified tax-exempt obligations her purposes of
Section 265(6) of the Cade; It being to 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 morsel, make the required Section 265(b) election with respect to such
binds he the extent cwt the election may be avallabie and advisable as deknnined by the
Finance Dhector.
THAT the term "cosC 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 porton of the Project; (2) the cut of construction, building, alteration, enlargement,
reconstruction, neravadon, improvement, and equipping tithe 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, Wilding
systems, machinery and equipment; (6) the coat of land, structures, real property interests,
rights, easements, and franchises acquired in connection with the Project; (7) the cost of all
utility extensions and she 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 ro and during construction and, following completion of construction,
for a period not to exceed 3 years from the Issue date thereof, undervmiters' fees and costs,
legal and amounting lees and costs, application fees, and other fees and expenses relating to
J7
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 nobas, if any, and the
excess; proceeds of the bonds or rates, If any, be and hereby are appropriated for the following
purposes, such proceeds to be held and applied in the fdlowbg order of priorly:
1. To any costs of the Project in success; of the principal amount of the bonds or
rotes authorized hereunder:
2. If Me binds or war are i wed 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, m the Citys General RIM.
THAT the Finance Director, Chairman of to City Council, Clerk, and other proper
officials of the City be, and hereby are, authorized and empowered in i6 name and on its behalf
to do or cause te be done all such acts and things as may be necessary or desirable in order to
eKect the Issuance, sale, and delivery of the bands and roar as hereinbefore authorized.
THAT if the finance Director, Chairman of the City Council, or Cleric are for any reason
unavailable to approve and execute the bonds or any related financing documents, the pawn
or persons Men aNng In any such capacity, whether as an assistant, a deputy, or otherwise, is
authorized to act For such official with the same farce and effect as ff such official had himself
or herself performed such act.
THAT in each of the years during which any of the bonds are outstanding, Mere shall
be levied a tax in an amount Mat, with other revenu s. if any, available for Mat purpose, shall
be sufficient to pay the interest on sad bonds, payable in such years, and the principal of such
bonds maturing in such years.
THAT In order to effect the borrowing and issuance of the bonds or rotes, or any series
thereof, authorized hereunder and to finance the costs of the Project, the Finanne Dlrecror and
the Chairman of the City Council are hereby authorized and empowered (but not required) in
Me name of and on behalf of the City M borrow an amount rot to exceed $2,00010DO at any
one time outstanding from the Maine Municipal Bond Bank (the "Bank") (except that such
amount may be exceeded when aggregated with any other amounts duly authorized to be
borrowed by the City from the Bank) pursuant to the State's Revolving loan Fund program
established under 30-A M.R.SA. §M -A and administered by the Department of
Fmlronmental Protection and Me Bank and to enter Into a I.oan Agreement between the City
and the Bank providing for a ban from the Bank In a principal amount not in excess of
$2,000,000 and the Finance Direchor be and hereby is autorized and empowened, In the name
and on behalf of the City, to execute and deliver, under the mal of the CM attested by its Clerk
and countersigned by the Chairman of the City Caundl, a Loan Agreement between the City
and the Bank providing for a loan from the Bank to the City in an amount not to exceed such
amount and Loan Agreement to be in the usual and atlirary form utilized by the Bank in
connection with the State Revolving loan fund which is hereby approved, and M contain such
other terms and provisions, not contrary to the germal tenor hereof, as the Finance Director
may approve, her approval to be condusively evidenced by this execution thereof.
THAT the Finance Director be and hereby is authorized and empowered, in the name of
and on behaff of the City, to execute and file with the Maim Municipal Bad Bank and/or the
07 266
Department of Environmental Protection an application for the City to issue and sell up to
$2,000,000 aggregate prindpal amount of its bonds to the Maine Municipal Bond Bank pursuant
to the State Revolving loan Fund program.
THAT the following resolutions required by Section C(4)(e) of the State of Maine
Revolving loan Fund Rules, Chapter 595, Department of Environmental protection and Maine
Munhdpal Bond Bank (the "SRF Regulations'"), and governing the ban to be made to the City
under the State Revolving Loan fund Pmgmm be and hereby are adopted:
(1) That a Project Account shall be created for the Project which shall be
separate from all other accounts of the City. If operating revenues are to be used to
retire the debt, a sub-acceunt will be established.
(2) That the project Account shall be maintained in accordance with
standards set font by the Mains Municipal Bond Bank and in accordance with generally
accepted government account standards.
(3) That a final accounting shall be made to the Bank of the total cost Mthe
project upon completion of the Project performance oertlflcatbn as set out In Section
G(3) of the SRF Regulations and the City admowle lges that the Bank reserves the fight
at its sale discretion to be provided with a cost certification of the Project as built
(4) That an annual audit of the Oty, prepared by a certified public
accountant or licensed public accountant be provided to the Bank for the term of the
loan.
(5) That the City shall maintain insurance coverage on the Project In an
amount adequate to prated the Bank's interest for the term of the loan with the Bank
named as loss payee.
(6) That the City viii comply with any special candidons specified by the
Deparbr ent of Environmental Protection's environmental determination until all financial
obligations to the State have been d@chamed.
(7) That the City certi(y th the Bank that R has secured all permits, licenses
and approvals necessary and that It has a dedicated source of revenue far repayment.
(8) That the City establish a rate, charge or assessment schedule In order to
pay principal and interest. Such rate change or schedule shall provide moat operations
and debt service coverage at a level at which the coverage for the Bank is sufficient.
(9) That the City must demonstrate Me ability to pay reasonably anticipated
costs of operating and maintaining Me finarrced Project
(10) That the City abide by the SRF Regulations, as revised and amended and
relevant State stables of the Sate of Maine.
Is CIAO COg9C1L
Angoat 13. 2007
Mist Heading and Referred
to
Chel Pivavice Co®i[Cee
r1cuilx
IN UW WWaL
August 27s 207
Motion Made and Seconded
to
Opm the. Public Rearing
Pobifc Mearfng opened
No one from the public
Moo fatvard
Motion Hade and seconded
M
Close tLe Public Nearing.
Public Heating -Cloaed
MUM Made and seconded
far
Pas
Pao
CITE
p W-266
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