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HomeMy WebLinkAbout2005-03-14 05-99 ORDERItem No 05-99 Date: 3-142005 Item/Subjert ORDER, Authorizing the Issuance of up to $2,550,000 Aggregate Principal Amount of Bartel Obligation Bonds, Notes In Antidpetion Thereof, and a Tax Levy Therefor. Responsible Department: Finance Commentary: The atbched Cauncll Order will authorize the Issuance of up to $2,550,000 of general obligation bonds to protidedin forcing to acquire and Install fire suppression/sprinkler systems in various hangars and other buildings at Bangor International Alrourt. These systems are required by the National Fire Protection Act. Department Head Manager's Comments: The need to Install sprinkler systems In a variety of buildings at Bangor International Airport was discussed coding the budget process, at which time staff recommended that bonds be issued for this project given Its sire. These improvements are required to meet fire and life safety codes. Six athrma0ve votes are required to authorize the issuance of bonds. This item will require a publichearing on March 28, 2005 Assoclated Information: - Public NI Mel�� MAIN 4"k , Finance Director Legal Approval: 6tY Solicitor Introduced for Passage page of X First Reading X Rdmml- FinanceCommittee of March 21, 2005 05-99 March 16, 2005 �� ���.� Assignddb Cauneila Tceoale CITY OF BANGOR ClI .) ORDER. Authorizing the Iswance of up to $2,550,000 Aggregate Primipal Amount of General Obligation Bonds, Note in Anticipation Thereof, and a Tax Levy Therefore. EE IT ORDERED V THE C CODNCIL OF THEA OF BANGOR THAT Pursuant lo 30-A MRSA. §Sn2, Section 13 of Article VI of the City Charts (Private and Special laws of 1931, Chapter %) and all amendments thereof and acts additional thereto, and all other authority, thereon enabling, there is hereby authorized the issue and sale at one time and from time to time of up to Two Million Flue Hundred Fifty TMusind Dollars ($2,550,000) aggregate principal amount of general obligation bonds of the Cty of Bangor. The proceeds derived from the sale of said bands, including premium, if any, shall be used and are hereby appropriated to pay a portion of the msis (as herein defined) of the following Project (the "Project"): i%tlmated Description Amount Life Acquisiinon and installation of Fire Suppression / Sprinkler Systems in various $2,550,1100 20 years hangars and other bulltlings at Bangor International Airport THATthe estimated weighted period of utility for the property constituting the Project to be financed with the proceeds of said bonds is hereby determined W be the period of time indicated above for the Project THf1T the date, maturities (not to exmed 25 years from the Issue date), denominations, interest rate or rates (not to exceed 8.00% per annum), place of payment, and other details of each issue of mid bonds, Including the timing and povisian for their sale and award and the selection of an underwriter, shall be determined by the France Director with the approval of Um France Committee. THAT the bonds hereby authorized may be made subject to call for redemption, with or without a premium, before the data fixed for fired payment of the bonds, as provided in 30-A MRSA. §M2(6), as amended, as shall be determined by the Finance Director with the approval of the Finance Committee. THAT said bonds shall be signnd by the Finance Director, courrtersigned by the Chairman of the City Council, sealed with the seal of the City, attested by Its Clerk, and shall be in such form and comain such terms and provisions not inconsistent herewith as they may approve, their approval to be conclusively evidenced by their executor thereof. Any issue of bonds may be consolidated with and Issued at the same tone as any other issue of bonds authorized prior th their Issuance, and the bonds may be divided Into multiple series and issued in separate plans of financing, with the approval of the Rmince Committee and the Chairman of the City Council. THAT pursuant to 30-A MRSA. §5TF2, Section 15 of Article W of the City Charter and any other authority thereto enabling, the Finance Director, with approval of Me Fireance Committee and the Chairman of the City Council, Is hereby authorized to Issue temporary bonds or rwtrs of the City in anticipation of the forgoing bond Issue, said bonds to he signed by the Finance Director, countersigned by the Chairman of the City Council, sealed with the seal of the City, attested by its Clerk, and otherwise to be in such form and contain such terms and proWsions including, without limitation, maturities not to exceed 3 years from the issue date), denominations, interest rate or rates (not to exceed 8.00% Per annum), placce of payment and other details as they shall approve, Meir approval to be conclusively evidenced by their execution thereof. THAT any temporary bands or notes (including bonds or notes in renewal thereof) authorized M be issued under this Order may be Issued in combination with temporary bonds or notes (including bonds or notes in renewal thereof) and bonds authorized to be mauled by the City Council at any time pdor M the date of Issuance of the temporary bonds or noes. THAT the finance Director Is authorized M negotiate, execute, and deliver, in the name of and on behalf of the City such contracts, agreements, and other documents, Including agreements, contracts, leases, Instruments, documents and certitcates as may be necessary or appropriate as determined and approved by the Finance Director in connection with the financing of the Project which documents shall be in such form and contain such terms and conditions, not inconsistent herewph, as may be approved by Me Finance Director such approval to be conclusively evidenced by his execution thereof; THAT Me Finance Director be and hereby is authorized M select the underwriter for the Binds and notes and the Finance Director of the City he and hereby is authorized and empowered to ezecute and deliver such contracts or agreement as may be necessary or appropriate in connection therewith. THAT the Finance Director be and hereby Is authorized to prepare, or cause be be prepared, a Preliminary Of cal Statement and an Official Statement for use in the offering and sate of the Bands or notes such Preliminary Oficial Statement and Official Statement M be in such form and contain such information as may be approved by the Finance Director, with the advice of the bond coursel for the City, and Met the distribution of the Preliminary Oficial Statement and Me Metal Statement in the name of and on behalf of the City in connecton with offering the bonds be and hereby is approved. 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 M ewxute and deliver such contracts and agreements as may be necessary or appropriate to secure their Services. THAT the Bonds and rotes shall be transferable only on the registration books of the City kept by the transfer agent, and said principal amount of the bonds of the same mabi ty (but not of other maturity) in minimum denominations of $5,M and any integral multiple in excess thereof upon surrender thereof at Me principal office of the transfer agent, with a wrilMn instrument of transfer satisfactory M the transfer agent duly executed by the registered owner or his attorney duly authorized in writing. THAT the Rnance Director be and hereby is authorized to undertake all at; necessary to provide for the issuance and transfer of such Bonds antl notes in book -entry form pursuant to the Depo rhuy Trost Company Book -Entry Only System, as an altemadve to the provisions of the foregoing paragraph regarding physical transfer of bonds, and the Finance Director be and hereby is authorized and empowered to enter Into a Lelia of Representation or any other contract, agreement or understanding necessary or, in his opinion, appropriate in order to qualify Me bonds for and partidpate in the Depositary Trust Company Book -Entry Only System. THAT the Rn once Director and Chairman of the City Council from time to time shall execute such bands or notes as may be required to provide for exchanges or transfers of bonds or notes as heretofore audiodzed, all such bonds or nota to bear the original signature of the Finance Director and Chairman of the Cry Council, and in case any offices of the City whose signature appears on any bond or note shall cease to be such officer before the deliver of said bond or note, such signature shall nevertheless be valid and sulfcient for all purposes, the same as 9 such officer had remained in office until delivery thereof. THAT upon each exchange or transfer of bonds or nota, the City and transfer agent shall make a charge sufficient to cover any tax, fee, or other governmental charge required M be pall! with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cost of which shall be borne by the City, the cwt of preparing new bads or notes upon exchanges or transfers thereof shall be pair! 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 Rnaroe Director, with Me approval of the Finance Committee. THAT, if the bonds v rotes, or any part of them are iswetl 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 City that mo part of the proceeds of the issue and sale of the bonds or notes au[Iwrized 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 to be "arbitrage bonds'within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code'. MRT,'d the tolls 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 M covenant and agree, on behaB of the City, to the benefit of the holders of such bonds or notes, that the City will Be 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 intone 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. 05-99 THAT the officers executing the bonds or nota be and hereby are individually audhonzed to covenant, certiry, and agree, on behalf of the City, for the benefit of the holders of such bonds or nota, that the CM will file any required reports, make any annual financial or material event disclosure, and take any other action that may be necessary to ensure Mat the disclosure requiranents Imposed by Rule 15:2-12 of the Secunfies and Exchange Commission, If applicable, are met. THAT, if the bonds or notes, or any par[ 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 nates as qualified tax-escmpt obligations for purposes of Section 265(b) of the Cade; h being Me City Council's intention that to the extent permitted under the Code, the bonds or rotes be Section 265(b) designated and Mat the Fnance Director With advice of bond counsel, make the required Section 265(b) election with respect to such bonds to the extent that the decdon may be available and advisable as determined by the Finance Director. THAT the term "cost" or "costs" as used herein and applletl to the Project, or any portion thereof, Includes, but Is not limited to: (I) the purchase price or acquisition cost of all or any portion of the Project; (2) the cad of construction, building, alteration, enlargement, reconstruction, renovation, Improvement, and equipping of the Project; (3) the cwt of all apWnerances and other facilities either on, above, or under the ground which are used or usable in connection vlrth the Project; (4) the cost of landscaping, site preparation, and remodeling of any Improvements or facilities; (5) the cwt of all labor, materials, building systems, machinery and equipment; (6) the mat of land, structures, real property interests, rights, easements, and franchises acquired in connection with the Project; (7) the cost of all utility extensions and site Improvements and development; (8) the cost of planning, developing, preparation of specifications, surveys, engineering, fessibility 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 to and during construction and, following completion of mnstru:bon, for a period not to exceed 3 years horn the issue date Hereof, underwriters' has and costs, legal and accounting fees and costs, application fees, and other fees and expenses relating to the financing transaction; and (11) the cost of all other financing authonzed hereunder, whether related or unrelated to the foregoing. THAT the investment earnings on the proceeds of the bonds, if any, and tree excess proceeds of the bonds, if any, be and hereby are appropnMed for the following purposes, such proceeds to be held and applied In the following order of priority: 1. To any cos of Me Project in excess of the principal amount of the bolls; 2. If the bonds or rotes are iss ed 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 nota Including, to the extent permitted thereunder, to the Cry's Deraal Fund; 3. To the extent the City Council debermines tha any proceeds of the Bonds are not necsuissry to the completion of the Project, to any other public municipal purpose approved by the City Council. THAT the Fnance Director, Chairman of the City Council, Clark, and other proper officials of the City be, and hereby are, authorized and empowered in 0s name and on Its behalf W do or cause to be tion all such acts and things as may be necessary or desirable In order to eRect Me Issuance, sale, and dellw y of the bonds and notes as hereinbefore authorized. THAT if the Finance Director, Chairman of Me any Council, or perk are for any reason unavallabk to appow: and execute the bonds or any related financing documents, the person or persona Men acting in any such capacity, whether as an assistant, a deputy, or othervdse, is authorized! to M for such offic al with the same force and efied as M such official had himself or herself performed such aa. THAT in can of the years during which any of the bonds are outstanding, there shall be levied a tax in an amount that, with other revenues, if any, available for Mat purposei shall be wficlent M pay the Interest on said bonds, payable in such years, and the principal of such bonds maturing in such years. ID an COUNCIL March 14. 2005 First Reading tEe£ red co Ftnauce ree CITY CLEM IN CITY COUNCIL March 2E, 2004 Notion Made and Seconded to Ora public Hearing public Nearing Opened No no, from the public ams forward Nation Made and Secouded to Close Public Hearing public Hearin Closed Nation Made and Seconded for Passage q 05-99 �P�'1,LE) Authorizing the Issuance of up to 12.550.Aggregate Principal haount of general Obligation Bonds. Rotes In anticipation wren , and a Tax evyere ore 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 apublic hearing on March 28, 2005 at 7:30 pm. at City Hall, Bangor, Maine on the proposed issuance of general obligation bonds in the maximum principal meant of$2,550,000 to finance the costs to acquire and install fire Suppression I Sprinkler Systems in various hangars and other buildings at Bangor hHemational Airport The facilities financed are comet and operated by the City, but maybe leased and used by retail and service providers at the Airport The bonds will be general obligations of We City and 0 the extent not paid from specific feu or other designated revmue sources, will be repaid from germ] tax revenues. These bonds will pledge the fill faith and credit of the City of Bangor for their repayment. All persons who desire to be hand on the proposed issuance of the general obligation bonds are invited to Wend the public hearing. The City Council will consider the Wooden of a resolution authorizing the issuance of the bonds immediately following the public hearing. Copies of the proposed order will be on file and may be reviewed at the office of the City Clerk prior to said public hearing. 05-99