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HomeMy WebLinkAbout2007-03-12 07-119 ORDERItem No, Date: 3/12/2007 07 17.9 Item/Subject Order, Authorizing the City to Partclpate In the State Revolving Loan Fund with Respect W Prevrousiy Authorized $2,000,000 General Obligation Bonds Responsible Department: Finance Commentary: As part of lbe $6,568,031 in general obligation bonds authorized by the City Council on September 12, 2005, $2,000,000 was authorized In connection with the City's CSO program. For many Years, the City has participated! in the Maine Municipal Bond Bank's State Revolving Loan Fund Program (SRF). The SRF program was created in 1987 ny the Clean Water AR, wherebythe Environmental Protecdon Agency provided seed moneyto capitalize the state loan program. These funds are used to assotsewersystems In financing high priority water -quality actinides, ata lower cost of borrowing. In order to obtain financing through the SRF program, certain language must be present in the Orderauthorbirg the issuance of bands. The original order did not contain the necessary language to be financed through the SRF program. The attached Order amends the original Order as R relates to the $2,000,000 borrowing for 60 pumoses. Department Head Manager's Comments: As noted, this is a technical amendment that will simply authonze the City to borrow these funds through Me State Revolving Loan Fund. 1 recommend your approval. AUIAC15411 ❑ty Manager 64�41 Dire4or CltySolitltor X Passage _ First Reading Page _ of_ Referral 03/12/2007 07 11 Asriruedmcomogor Blanchettei 07 119 CITY OF BANGOR (TITLE.) Order, Authorizing the City to Participate in the State Revolving Loan Fund with Respect to Previously Authorized $2,000,000 General Obligation Bonds WHEREAS, on September 12, 2005, Me City Council of the Ory of Bangor adopted a bond order (the "Bond Order') captioned "Order, Authorizing the Issuance of $6,568,831 Aggregate principal Amount of General Obligation Bonds, Notes in Anticipatbn Thereof and a Tax Levy Therefor", which authorized $2,00D,000 of the City's General Obligation Bonds (the "Bonds') to be issued in connection with the City's CSO Program, the proceeds of which, less premium, if any, M be used and were thereby appropriated to pay the cost of certain sewer Improvement projects more fully described therein (Me 'Project); and WHEREAS, the City desires to issue the Bons through the State of Maine Revolving Loan Fund Program an to otherwise supplement Me terms of the Bond Order; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR: THAT in order to effect the borrowing and issuance of the Bonds, or any series thereof, authorized by the Bond Order and to finance the wets of the Project, the Finance Director and the Chairman of the Ory Council are hereby authorized and empowereci in the name of and on behalf of the Oty M issue and sell Me Bonds to, an borrow the amount evidenced thereby from the Maine Munklpal Bond Bank (the "Bank') pursuant to the State's Revolving Loan Fun program established under 3 M.R.S.A. §IBM -A and administered by the Department of FnVionmental Protectean and the Bank an M enter into a Loan Agreement between the City an Me Bank providing for a ban from the Bank in a principal amount not in excess of the principal amount of the Bonds an the Finance Director be and hereby is authorized and empowered, in the name an on behalf of the City, to execute and deliver, under the seal of the City attested by as Carly, a Loan Agreemart between the Ory and the Bank providing for a ban from the Bank to Me City in an amount not to exceed such amount old Loan Agreement to be in the usual an ordinary form utilized by the Bank in connection with the State Revolving Loan Fund which is hereby approved, and to contain such other terms an provisions, not contrary to the general tenor hereof, as the Finance Director may approve, her approval to be conclusively evidenced by Me execution thereof. THAT the Finance Director and the Chairman of the City Council be and hereby are Individually authorized and empowered, in the name of and an behalf of me City, to execute an file with Me Bank and/or the Oeoarbnent of Environmental Protection an application for Me Ory M Issue and sell up M $2,000,000 aggregate principal amount of its bonds M Me Bank pursuant to the State Revolving Loan Fund Program. Ur !: THAT the following resolutions required by Section C(4)(e) of the State of Maine .. `07 17.9 Revolving Loan Fund Rules, Chapter 595, Department d Environmental Protection and Maine Municipal Bond Bank (the 'SRF Reguladom ), and governing the loan to be made to the M under the State Revolving Loan Fund! Program be and hereby are adopted: (1) That a project Account shall be created for the Projects which shall be separate from all other accounts of the City. If operating revenues are to be used to retire the debt, a sub -account will be established. (2) That the project Account shall be maintained in accordance with standards set form by the Dank and in accordance with generally accepted government accounting standards. (3) That a final accounting shall be made to the Bank of the total cast of the Project upon completion of the Project Performance Certification as set out in Section G(3) of the SRF Reguladws and the Oty acknowledges that the Bank reserves the 69M at its sole discretion to be provided with a cost certification of the Project as built. (4) That an annual audit of the City, prepared by a mrtiBed public accountant or licensedpublic 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 protect the Bank's interest for the term of the loan with the Bank named as loss payee. (6) That the City will comply with any special conditions specified by the Department of Environmental Pmmcdon5 environmental determination until all financial obligations to the State have been discharged. (7) That the City rntify to he Bank that it has secured all permits, licenses and approvals necessary and that It has a dedicated source of revenue for 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 toml operations and debt service coverage at a level at which the coverage for the Bank is sufficient (9) That the City mat demonstrate the ability to pay reasonably anticipated costs of operating and maintaining the financed Project. (10) That the City abide by the rules of the Department of Environmental Protection, the Bank, the SRF Regulations, as revised and amended, and relevant statutes of the State of Maine. In CITY caoncn March 12. 2007 Nati Made am seaaaded far PVsage Pas ITY CLQ MRyPLgI huthoriving the City to Participate the Sta=viog ro n £�V1LIf' Respect [o P[eviaaely du[hari¢ed $2.000,000 Cepteral Ob11gaT>tr�s 4. b*`- A? NJpW to CouceOor