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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. 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