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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. To:_ U�.��¢SjC.L`zfpLCS' Company: -Cl _ o Phone:-.._ 922:_Z2oSL.__ Fax:, C2 0��_5' - Time_ - Date:._ __---- Number of Pages:__„-_ -I - a'g'°`Oal -.. irzcl (� ja Sa��...e From: ,�i / G. C�.� �" E n RLI_-_gYi �o�s Phone:_, _9 O . g O Faz: _ B0X°`n Message: