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HomeMy WebLinkAbout2007-11-14 08-020 ORDERItem Mo. 00 n�'-o Date: 11-1407 Item/Subject: ORDER, Authonvng the Issuance of $600,000 Aggregate Principal Amount of General Obligation Bonds, Notes in Antidpagon Thereof, and a Tax Levy Therefore. Responsible Department Finance The attached order will authorize the City to Issue up to $600,000 In general obligation bonds or bond anticipation notes to finance building improvements at 103 Texas Avenue, to include roof replacement and costs associated with installation of a spnnkler system. These funds will be used for lmprovemertst the Bangor Nursing b Rehab Center building. When the City created a separate non-profit to operate the nursing home, a master transaction agreement was approved outlining the rights and responsibilities of both parties. Under the tams of the agreement, the City is to provide up to $2,250,000 for Improvements to the facility. To date nearly $850,000 of the Ohs commionent has been expended for projects such as HVAC and air handling system projects and kitchen and dining room improvements. aSLONSO'_._ Manager's Comment: A public hearing is required prior to the vote on the order. City Manager Associated Information F ClSolRltor Introduced for _Passage x Fltst Reading Page _ of _ X Referral — Finance Committee of November 19, 2007 ^u8 090 Assigned to councilor Farrington Nav®6er 14. zoo] CITY OF BANGOR (TITLE.) ORDER, AUTHORRING THE ISSUANCE OF $600,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, NOTES IN ANTICIPATION THEREOF AND A TAX LEVY THEREFOR. BE IT ORDERED BY THE CRY COUNCIL OF THE CITY OF BANGOR, THAT Pursuant to 30-A M.R.S.A. 557/2, Section 13 of Article VI of the City Charter (Private and Special laws of 1931, Chapter 54) and all amendments thereof and acts addidorel thereto, and all other authority thereto enabling, Mere is hereby authomeid the Issue and sale at one time and from time to time up to Sok Hundred Thousand Dollars ($600,000) aggregate principal amount of general oblgfatbn bonds of the City of Sanger. The proceeds derived from the sale of said bonds, induding premium, ti any, shall be used and are hereby appropriated M pay a portion of the costs (as herein defined) M design, construct: and equip or to acquire ads install the following project (the Vmjecn: Rstimetmd BNRC- Building Improvement; $60(11000 20ymrs THAT the estimated weighted period of utility for the property constituting the Project to be Framed with the proceeds of said bonds s hereby determined to be the period of time indicated above for the Project. THAT the date, maturities (not to exceed the nu durum firm permitted by law), denominations, Interest rate or rates fins: to exceed 8.00% per annum), place of payment and other details of each Issue of said bonds, including he timing and provision for Meir sale and award and the selection of an urdervolter, shall be determined by Me Finance Director with the approval of the Finance Committee and the Chairman of the City Council. THAT Me bonds hereby authorized may be made subject to oil for redemption, with or wMout a premium, before the data fired for final payment of the bands, as prodded in 30-A IN CITY COUNCIL November 16, 2007 First Heading and Referred to # ;08-020 the Finesse Committee ORDER DBQ01R CIS a9u[hU the Iipaence of gate ib00;000 Aggregate Principal Ames[ $600. CITY COODCS0 Gea,ricipat Obligation sends. Notes in November 26, No An Anticipation Thereof and a Pu I�y, and Notion Nelle end Seconded to Open the Public Nearing,. Faille Nearing Opssed No One fron the Public ..e forward Notice Nude and Seconded to Close tie, Publte Rearjug NYgnedb CmaelWs---( NoHetice searing Closed Notion Nage aM Seconded fo Pn ego Paaee C1T1 I "08 020 M.R.S.A. §5772(6), as amended, as shall be determined by the Finance Director with the approval of the Finance Committee. MAT said bonds shall be signed by the Finance Director, aumersigned by the Chairman of the City Council, sealed with the seal of the City, atba t d by ICs Clerk, and shall be in such form and contain such terns and provisions not immrsistent herewith as they may approve, their approval to be cenchsNHy evidenced by their execution thereof. Any issue of bends may be consolidated with and issued at the same tine as any other issue of bonds authorized prior to their issuance, and the bonds may be divided Into multiple series and Issued in separate pans of financing, with the approval of the Finance Committee and the Chairman of the City Council. THAT pursuant to 30-A M.R.S.A. §5772, Section 15 of Article VL of the City Charter and any other authority thereto enabling, the Finance Director, with approval of the Finance Committee and the Chairman of the City Council, is hereby authorized to issue temporary bonds or rotes of the City in anticipation of the forgoing bond taus, said bonds to be signed by the Finance Director, countersigned by Me Chairman of the City Council, sealed with the seal of the City, steamed! by Its Clerk, and otherwise to be In such farm and contain such terns and provisions Including, without limitation, maturities (not to exceed 3 years from the bsue dam), deraminations, interest rate or rates (not to exceed 8.00% per annum), place of payment, and other detalh as they shall approve, their approval to be conclusively evidenced by their execution thereof. THAT any bonds a notes Cinduding bonds or notes in renewal thereof) authorized to be Issued under this Order may be issued In combination with bonds or notes (including bonds or notes in renewal thereof) authorized to be issued by the Ory Council at any time prior to the date of Issuance of such bads or rotes. MAT the Finance Director be and hereby is authorized to select the registrar, paying agent, and transfer agent (the "Transfer Agent') for the bads and notes and to exavte and deliver such contracts and agreements as may be necessary or appropriate to secure their senoras. THAT the bonds and rates shall be transferable only on the registration kooks of the City kept by the Transfer Agent In minimum denominators approved by the Finance Director, and said principal amount of the bonds and notes of the same maturity (but not of other maturity), upon surrender thereof at the pindpal office of the Transfer Agent, with a writen instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner a his or her attomey duly authorized in writing. TKAT in lieu of physical ceri fxatss of the bonds and nom hereinbefore authorized, the Finance Director be and hereby is authorized to undertake all acts necessary to provide for the issuance and transfer of soon bonds and rates in book -entry form pursuant to the Depository Trust Company Book -Entry Only System, As an alternative to the provisions of the foregoing paragraph regarding physical transfer of bonds, and the Finance Director be and hereby Is audarized and empowered to enter into a tetter of Representaton or any abler cormaM agreement or understanding necessary or, in his opinion, appropriate in order to qualify the bands fa and perdipate in the Depository Trust Company Book -Entry Only System; THAT the Finance Director and Chairman of the City Council from time to time shall evecute such bonds or notes as may be requiretl to provide for exchanges or transfers of bods or notes as heretofore authonzed, all such bonds or notes to bear the original signabne of the Finance Director and Chairman of the City Council, and in ase any officer of the City whose signature appears on any bond or note shall cease to be such officer before the deliver of aid CS-OZO 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 far, fee, or other governmental charge required to be paid with respect to such transfer or exchange, and subsequent in the first exchange or transfer, the cost of which shall be borne by the City, the cot of preparing new bonds or notes upon exchanges or transfers thereof shall be paid by the person requesfing the same. THAT the bends and notes issued In anticipation thereof be Issued an either a taxable or a tax- exempt base, or a combination thereof, as determined by the finance Director, with me approval of the France Commitee. THAT, lf 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 Ory that no part of the proceeds of the issue and sale of the bolls or notes authoized to be issued hereunder shall be used directly or Irdiredly m acquire any securities or obligations, the acquisition of which would cause such bonds or notes W be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Cade'. 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 arempt from federal intone taxation and that the City will refrain from any action that would cause interest on the bonds o notes th be abject tu federal Income taxation. THAT the officers executing the bonds or notes be and hereby are individually authorized to covenant, certify, and agree, on behalf athe City, for the benefit of the holders of such bods or notes, that Me City will file any required reports, make any annual financial or material event disclosure, and take any other action that may be necessary tu ensure that the disdosure requirements Imposed by Rule 15c2-12 of the Securities and Exchange Commission, H applicable, are met THAT, 'd the bonds or notes, or any part of than, are fount on a tax exempt bass, the Frustum Director be and hereby is summarized and empowered to take all such action as may be necessary tu designate the bonds or notes as qualified Mx -exempt obfgations for purposes of Section 265(b) of the Code; It being the City Council's Intention that, to the extent permitted under the Cade, the bonds or notes be Section 255(b) designated and mat the Finance Director with advice of bond counsel, make the required Section 265(b) eledbn with respect M such bonds M Me eaten[ that the election may be available and advisable as demrmimid by the France Director. THAT the term cost"err"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 err any potion of the Project; (2) the cost of construction, building, alteration, enlargement reconstruction, renovation, improvement, and equipping of to 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 facilites; (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; (T) the cost of all Witty extensions and site Improvements and development; (8) the cost of planning, developing, preparation of specifications, surreys, engineering, feaslbllLLy studlos, legal and other professional serines associated with the Project; (9) the cost of environmental McRae and assessments; (10) is eie 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 fo exceed 3 years from the issue data thereof, underwriters' fees and costs, legal and accounting fees and costs, application fees, and Mer fees ant m0enses relating to the financing transaction; and (11) the cot of all other financing authorized hereunder, whether misted or unrelated to the foregoing. TXAT the investment earnings on the proceeds of the bonds, If any, and the excess proceeds of the bends, if any, be and hereby are appropriated for the following purposes, such proceeds to be held and applied in the following order of priority: 1. To any costs of the project in excess of the principal amount of the bads; 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 bads or rotes Including, to the edent permitted thereunder, to the Ciry's General fund. THAT the Finance Director, Chairman of Me dry Council, Cleric, 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 as may be necessary or desirable in order to effect the Issuance, sale, ant delivery of the bonds and notes as hereinbefore authorized THAT If the Finance Director, Chairman of the City Countil, or Clerk are for any reason unavailable to approve and execute the bonds or any related financing documents, the perms or persons than acting in any won wpacty, whether as an asslsbufl, a deputy, or otherwise, Is authorized to act for such official with the same force and effect as 9 such official had himself or herself pertormed such act THAT in each of the years during which any of the bands are outstanding, there shall be avied 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 wolf bonds maturing in such years.