HomeMy WebLinkAbout2006-03-13 06-111 ORDERItem No, 06 111
Dace: 3-13-06
Item/Subject ORDER, AUTHORIZING THE ISSUANCE OF $455,000 AGGREGATE
PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, NOTES IN
ANTICIPATION THEREOF AND A TAX LEW THEREFOR
Responsible Department: Finance
The artached order wi0 authorize the City to issue up to $955,000 In general obligation bonds on, WW
antsmation notes to pay a potion of the costs to design, construct and equip an HVAC and Air Handling
system at 103 Texas Avenue.
These funds will be Used for the aforementioned improvements to the Bangor Nursing & Rehab Center
building, in which Ore City's Healm & WNfare Department h a tenant When the City created a separate
nonprofit to operate the nursing home, a master transaction agreement was approved outlining me
fights and respontiNli[ies of both parties. Under the terms of the agreement, the Ory, is W provide up to
$2,250,000 for improvements to the facility. PnorIn me effect of the HVAC and air handling system
projxts, approximately $165,000 of NM amount has been expanded.
xaze4r� Head
A
Notice of Public Hearing
Budget Approval:
Finance Director
Legal Approval: ,��
' Ory Solicitor
Introduced Tor
Banque"
First Reading Page _ of
X Referral -Finance Committee of March 20, 2006 @ 5:00 pm
Assigned to Councilor Stone Nareh 13. 2006
wcy
3^ CITY OF BANGOR
(TITLE.) ORDER, AUTHORIZING THE ISSUANCE OF $455,000 AGGREGATE
PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, NOTES IN AN TCIPATION
THEREOF AND A TAX LEVY THEREFOR.
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR,
THAT Pursuant m 30-A M.R.S.A. §5772, Section 13 of Miele 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-srudding, there is hereby authorized the issue and sale at
one time and from time to time up to Four Hundred and Fifty -Five Thousand Dollars ($455,000)
aggregate principal amount of guarmaLobligation bonds of the City ofBungor. Theproceeds
derived from the We of saidbbnds, including premium, Unary, shall be used and are hereby
appropriated to pay a portion Othe costs (as herein defined) to design, construct and equip an
HVAC and Air Handling system at the Bangor Nursing @ Rehab Center at 103 Texas Avenue
(the"Pr jeet').
THAT the estimated weighted period of utility for the Project or be financed with the
proceeds of said bonds is hereby determined to be 20 years.
THAT the date, maturities (notm exceed the maximum tens permitted by law),
denominations, interest rate or rates (not m exceed 8.000%Per annum), place of payment, and
other details of each issue of said bonds, including the timing and provision for their sale and
award and the selection of an underwriter, shall be determined by the Finance Director with the
approval of the Finance Committee.
THAT the bonds hereby authodued 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 Contents.
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, ade ded by its Clerk, and 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
06 111
authorized prior to their issuance, and the bonds may be divided into multiple series and issued in
separate plans of financing, with the appmval of the Finance Committee.
THAT pursuant to 30-A M.R S.A. §5992, Section 15 of Article VI 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 notes of the City in anticipation of the forgoing bond issue, said bonds to be signed by the
Finance Director, countersigned by the Chairman of the CityCouncil, sailed with the seal of the
City, attested by its Clark, 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 cote or rates (not to exceed 8.00°/ per annum), place of payment, and
other details as they shall approve, their approval to be conclusively evidenced by their execution
thereof.
THAT any bonds or notes (including bonds or notes in renewal thereof) authorized m be
issued under this Order may be issued in combination with bonds or notes (including bonds or
notes in renewal Soared) authorized to be issued by the City Council at any fine prior to the date
of issuance of such bonds or notes.
THAT the Finance Director be and hereby is authorized to select the registrar, paying
agent and transfer agent (the"Transfer Agent") for the bonds and notes and to execute and
deliver such contracts and agreements as may be necessary or appropriate to secure their services.
THAT the bonds and notes shall be transferable only on the registration books of the City
kept by the Transfer Agent in minimum denominations approved by the Finance Director, and
said principal amount of the bonds and nates of the same maturity (but not of other maturity),
upon surreraler 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 authonzed in writing.
THAT in lieu of physical certificates of the bonds and now hereinbefore authorized, the
Finance Director be and hereby is authorized to undedske all acts necessary to provide for the
issuance and transfer of such bonds and notes in book -entry form pursuant to the Depository
True Company Book -Entry Only System, as an alternative to the provisions of foregoing
paragraph regarding physical transfer of bonds, and the finance Director he and hereby is
authorized and empowered to enter into a letter of Representation or any other contract
agreement or understanding necessary or, in his opinion, appropriate in order to qualify the bonds
for and participate in the Depository Trust Company Book -Entry Only System;
THAT the Finance Director and Chairman of the City Council firm 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 nates 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 shag cease to be such officer before the deliver of said
bond or Dote, such signature shall nevertheless be valid and sufficient for all purposes, the same
as if such officer had remained in office unfit 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 tax, has, or other governmental charge required to be paid
ts,emo-t
06 111
with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the
cast of which shall be home 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 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 Facing Director, with the
approval of the Finance Committee.
THAT, if the bands or notes, or any pan of them we issued on a tax exempt basis, the
officers executing such bonds or notes be and hereby are individually authorized and directed m
covenant and certify on behalf of the City that no pan of the proceeds of the issue and sale of the
bonds or notes welowized to be issued hereunder sball be used directly or indirectly m 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'7.
THAT, if tire bonds or notes, or any pan 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 the officers executing the bonds or notes be and hereby are individually
authorized to covered, 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 repens, make any annul financial or
material event disclosure, and take any other action that may be necessary to ensure the the
disclosure medicaments imposed by Rule 15c2-12 of the Securities and Exchange Commission,
if applicable, are met.
THAT, if the bonds or notes, or any pan 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 w qualified tax-exempt obligations for purposes of
Section 265(b) of the Cade; it being the City Council's intention that, to the extent permitted
under the Code, the bonds or notes be Section 265(6) designated and that the Finance Director
with advice of bond counsel, make the required Section 265(b) election with respect to such
bands to the extent that the election may be available and advisable as determined by the Finance
Director.
THAT the term "cost" or "costs" as used herein and applied to the Project, or any portion
thereof, includes, but isnot 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 coder 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 444Eland, simcNres, reel property interests, rights, easements, and
franchises ecquiredin coun etion with the Project; (7) the war of all utility extensions and site
o"Sorke
associated with the Pmjt
of financing charges and
during construction and,
from the issue date there
application fees, and oN
cost of all other fan ursom
THAT the inv(
proceeds of the bonds,
proceeds to be held an.
1. To any
2. ifone Is
THAT the France
officials of the City be, and
to do or cause to be done d
effect the issuance, sale, an
unavailable to approve and
Persons Nen acting in any s
authorized to not for such it
herself performed such act
THAT in each oftb
levied a tax in an amount d
sufficient to pay the interes
maturing in such years.
tl (8) the cost of planning, developing, preparation of
ring, feasibility studies, legal and other professional services
the cost of environmental studies and assessments; (10) the cost
cox casts, including premiums for insurance, interest prior to and
in completion of construction, for a period not to exceed 3 years
erwriters' fes and costs, legal and accounting fees and costs,
and expenses relating to the financing transaction; and (11) the
trued hereunder, whether related or unrelated to the foregoing.
amings on the proceeds of the bonds, if my, and the excess
and hereby are appropriated for the following proposes, such
in the following order of priority
he Project in excess of the principal amount of the bonds;
otes are issued on aon exempt basis, in accordanew with
and provisions of the Arbitrage and Use of Proceeds Certificate
rection with the sale of the bonds or notes including, to the extent
order, to the City's General Fwd.
com, Chairman of the City Council, Clerk, and other proper
sby are, authorized and empowered in its name and on its behalf
;h acts and things as may be necessary or desirable in order to
livery of the bonds and nates as hereinbefore authorized.
iremor, Chairman of the City Council, or Clerk are for any reason
rule the bonds or any related financing documents, Ne person or
capacity, whether as an assistam, a deputy, or otherwise, is
al with the same force and effect as if such official had himself or
ears during which any of the bonds are outstanding, there shall be
with other revenues, if any, available for that purpose, shop be
i said bonds, payable in such years, and the principal of such bonds
w n
4
Pit eeaai„g and Neferrea
t once Ca®t[[ee
CIT4
IN an COUNCIL
March 21, 2006
Nation Made and Seconded to
Open Public Hearing
Public Nearing Opened
Nw Nunn , Presidend S
Cap of Manger Rehab Nursing
Center, Urged the Council to
support the Order
Nation Node and Seconded to
Close Public Nearing
public Nearing Closed
Notion Made and Seconded for
Pas
P"=a
MTLpd 6 W -g^ - of
$655,000 Aggregate principalAmount
sb31g1W an
RmAl, Note,
anticipation thereof anda Tax Levy ^
.. b .et,�
t
'.Y Aev9nN OCoonciluv���d
2
LEGAL ADVERTISEMENT
CITY OF BANGOR, MAINE
NOTICE OF PUBLIC HEARING ON ISSUANCE OF GENERAL OBLIGATION BONDS
Notice is hereby given that the Bangor City Council will hold a public bearing on March 27,
�l. �200fi at 7b)Sp.m. at City Hall, 73 Harlow Show, Burger, Maine on the proposed issuance of
� 0=111 obligation bonds in the maximum principal amount of (a) $455,000 to finance the costs
with respect to the design, construction and equipping of an HVAC and Air Handling system at
103 Texas Avenue and (b) $1,265,000 to refinance the City's 1995 and 1996 General Obligation
Bonds and all other costs necessary or incidental thereto, including costs of issuance and
redemption pmmium.
The bonds will be general obligations of the City and to the extent not paid from specific fees or
other designated revenue sources, will be repaid from general tax revenues. The bonds will
pledge the full faith and credit of the City of Bangor for their repayment.
All persons who desire to be heard on the proposed issuance of the bonds are invited to attend
the public hearing. The City Council will consider the adoption ofr¢solutions authorizing the
issuance of the bonds immediately following the public bearing.
The foregoing list is a non -exhaustive list ofprojects that will be considered by the City Council
at said public hearing or prior to final City Council action and may be expanded, reduced or
revised by the City Council at said public hearing or prior to final City Council action.
Copies of the proposed orders will be on file and may be reviewed at the office of the City Clerk
prior no said public hearing.
111411 20, 2006 Patti laid a is
city clert
Otle NAY AN P.0.260791
2'0 M 3/20/06
PPONr cITY ANNITION ONLY
PLEASE S PROOF
2099918065
06-M
,angor all1
ft's what p you need. To know.
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