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HomeMy WebLinkAbout2001-11-26 02-36 ORDERCOUNCIL ACQON Item No. 02-36 Cats: 11-26-01 Item/Subjec Order, Autmrting the Issuance of $3,052,400 Aggregate Principal Amount of General Obllgaaon Bonds, Notes in AMidWbn Thereof, and a Tax tevy Therefor. Responsible Department: Finance Commentary: In ohder to take w1vantage of the current Interest rate environment, staff Is proposing to accelerate the issuance of debt for certain projects previously discusses by various committees. We are at the point where it is necessary to authorize Nese projects so Nat work can begin on them. The attached bond order tic9eib Nese projects. The largest single Item Is the Police Department Renovatbn ($2,715,000) which is phase one of the total rehaNlita[ion of the Court Street location. The remolding projects Include an Expansion of Sawyer Arena ($622,900), Mich would atld shower facilites and expand Raker man and standing capacity, Recycling Center Bxpanslon ($275,00), Mich would increase the space available to support each the recycling program and bus operations, and &ACTS "ram ($290,000), which represents the 10%-15% local share as variety of State traffic Improvements. Approving the attached bond order does not commit the City N actually bonaning these funds. We ardicipate tat toncis will C issued in January. Between now and then, some cost estimates may be refined and a0ematNe funding sources for some projects may be identtec, including any balances which may he available fvn pdor capital projects. In )ecember, we wfll realm to the Finance Canmibee and Wuncil will 0nal proposals and projections. I recommend your approval. Budget Approval: ,1n/10 4/-� li Finance Director Legal Approval: Psd Cby SOlchor [Mrodn Passage X First Rending Page_ of �(_Refertal is lrvpr(t Garn,�2 02-36 &ss4md he(AWcilor Tabour November 26, 2001 o.i, o„04 CITY OF BANGOR (TITLE.): ORDER. AUTHORUING THE ISSUANCE Of 13,852.400 AGGREGATE PRINIMPAL AMOUNT OF GENERAL OBUGATION BONDS. NOTES IN ANTICIPATION THEREOF AND A TAX LEVY THEREFOR Nein ay Qxrod of ft Gly Marngw: ORDERID, TINT Pursuant to 30-A M.R.S.A. §5M, Sechen 13 of Mole N of the Oty CharW (Private and swial laws M 1931, Chapter 59) and all amendments thereof and ads additional thereto, and all otiea authority thereto eni there N hereby authoriretl the buys and sale M ore time and fiom time to time up M Three Millan Eight Hundred! FfRytwa Thousand Four Hundred Dollars (§3,852,9)0) aggregate pdmir d amount of general obligation bonds Mthe City of Bangor, plus up to Iwo pendent (2%) of the pdncipd amount M eaN issue or seder to NM bran costs. The proceeds demred horn the sale of said bonds, adudig premium, N arty, shall he used and are hereby appropriated to pay a portion of the costs (as herein defined) of the followhg pm Jects (the "ProjttK7, EatlmatN OMnietlen Amount ills Pollee Department Renovation $2,715,000 20years Sawyer Areas Expansion $622,900 Myears Req Jing Levan Exparaon $215,000 20years &ACTS Program 1250,0DO 12 years $3,052,900 THAT the emmamcl weighted period of Witty for the property oanstllutlrg the Projects to he financed with the proceeds of said bonds Is hereby determined m hethe period of tlme IMiated above for each tithe Projects. THAT the date maWnties (not to exceed! 20 years frown the Issue date), denominations, Interest as or more (rot to exceed 8.010% per annum), place of payrnen4 and other details M each issue Msad bonds, Including the binding and provbbn for their sale and Awad and the selecVon of an uie rter, shall be detail by the Aram Director with the aMmval athe Hnanea Committee and the Chaiman of The City Cowell. TPWT the bonds hereby authorized may be made subject to call for redemption, was or without a premium, before tier date fked for final payment of the binds, as prodded! in IDA M.R.S.A. §5TI2(6), as amended, as shall be tlemmined by the Areace Director vn'M the appoval of the Fire"Committee. THAT mid bonds shall he signed by the Arenas Director, cour8ersgratl by tyre Cheinran of the City Cnundl, s mad wish the seal of the City, arrested! by Is (]end, and shall he in such form and certain such terra and provbimrs not incomment herewith as they may approre, their approval to he oorduslvely e.Mercetl by their executiar Thereof. Any issue M bands may he consddetetl with and Issued at the same tlme as arty other issue M herds aumorisd poor to their issuame, and the bonds 02-36 may he divided Into muMple cedes and issued In separate plans of flail with the approval of the Rnaxe Commitee and the Chairman tithe CRY Cantil. THAT pursaM W 30-A M.R.SA. §5772, Sectbn 15 NNrdrle W of the City tarter and any other authority thereto enabling, the Flranm Dlrectw, with approval dthe Finance Commhlee and the (Mlmlan athe City round, Is hereby auNmted W issue temporary bards Of rhotrs of the CRY in anticipation of the forgoing bond issue, sand hmrds to 4 signed by the Firaae Dlre , Countmmgndl by the Chairman of the City Condi, aealed with Che seal dthe City, attested by Its Clerk, and otherwise to W in such form and contain such Imes and proddions inducing, without Ilmlhatlon, maturities (rot W exceed 3 years horn the issue cote), cerominatons, interest rola or rates (not W exceed 8.0096 per annum), place d payment and other daliniis as Nay stall approve, therr approval W he cordustw3y eAtlerhmtl by their execrton thereof. THAT any Impaary bonds or rotes (Inducing bonds or rotes In renewal thereof) autlodzed W he asded under this Other may he issues in com mumn with temporary bonds or notes (Inducng Winds or notes in renewal thereof) and bonds autlorted to he Issue! by tie City Coundl at anytime Prior W the cafe of Issuance dthe temporary bonds or notes. THAT the Rnace Director be and hereby is autlprized W select the registrar, paying agent and harsher agent (the "Transfer Agent') for the bards and tides and W emoute and cehayr such cormM and agreements as nay he neves-vry or appro robe W secure their seMces. T T one bolls and notes shall be transferable only on the registration books d the City kept by the oensfer agent and saki princmd amount of the bonds and notes tithe same mburty (Wt not d other m itudly), upon surrender thered at Ne principal trice dthe tramfer agent, win a amen Iratrumontof tra sin r sedsfactory W the harsher agent duly executed by the registered owner or his or icer a[Wmey duty authorized In wining. MT the France Dir and Charman of the City Coundl from time W time shall oscvte svch bands an rotes as may he required W provide tar exchanges or ba dhors d bonds or rams as heretofore aut horbed, all such bonds or notes W tear the original signature tithe Mrance Director and Chaiman d the City Courdl, and In ase any officer dthe City whose sgnai urs appears on am bond or note shall ease W he such oflker before the delNer asatl bond or mm, such signature shall nevertheless he vara and sulRdent for all Wraoses, the same As If such officer had! remained in dfice until dehYery tlxreof. THRT upon each exchage or transfer d bonds or rotes, the City and trarder agent shall make a dage suf aunt W aver any tax, fee, a cher govermmental charge requirtd W be paid with respect W such transfer or exchange, and subsequent W the first em:ha ge or transfer, the cos[ of whiN shall be Esme by Ne City, the cost d prepatng new Winds or notes upon exchanges or transfers thereof shell be pend by the person requesting the were. THAT the lords and notes Issued In aMMpation thereof he issued an either a tenable or a ta - axeznp[ basis, an a combination Cloned, as determined by the Finance Director, wed the approval d the Finance Tommi tee. THAT, If the bonds or noisy or any pat dNnn are issued on a tax exempt issues, the oRkxrs executing such hinds or notes he and hereby are IhoMdualty authahed and directed W coverant and certify on behalf d the City that no pat of the proceeds tithe Issue and sale of the bads or notes authorized W he ismatl hereunder Beall be used directly an Indirectly W acquire any securmes or oblgatbny the a culsdon of which would cause such bonds or notes W be "arbMage bads"within the mearks d Section 198 d the Internal Revenue Cate of III as amended (tic "Cote'). THAT, tide bonds or notes, or any pat of them, are awed an a res exempt basis, the oflcas exeoNng said balls or notes he and hereby are individually authorized W covenant and agree, an blot of the City, for the tacllt of the holders d such bonds or notes, that the dry will file any required reports and take any other action that may te necessary W ensure that interest on the bolls or notes 02-36 will remain exanptfmn fdderal lamz taxation and thathe Cby All refialn fiom any ad»n drat w0uld rause interest on the bondsor Dams W be subject W fetleral lc taxatiao. TUT de oifims em culing the bonds or notes be and hereby are individually authoomed W covenant, cerory, BM agree, on behHf of tun Ory, or the benent of the holders of such bolls a Wass, abet the City will file any required repats, make any annual ftmncWl a materel evert disclosure, all take am otlor action that may be necessary W ensure that the discbsure requirements imposed by Rue 1S 42 athe Securities all Etthange Cafflual , If applicable, are nn b TUT, tithe bonds or rotes, a any Part athero, are Issued on a tax exempt basis, has France Director be and hereby is authorized all empowered W take all such action as may be necessary W dalgrwte the bards or notes as gualifind mxemrnPt oalgauons for publicness a Section 265(6) of the Cade; A bell the City Doundl's inhention Mat W the extent permidnd under the rade, Me bock Or mass be Seclln 265(6) designated all tMt tine Rneae DireMr with advim of boll course, make the required Section 265(b) elecdc n vMh respect W such balls W the extent Mat the election may be aw iade all ativisabe as daenninnd by the Rnance Director. TIAT the barn "asC a"msM smeal herein and Includes but k not I"n W: (l) the curchase pun materials, building systems, machinery and equipmerR; (6) the cost a and, s[recWres, real Property Inumbi rights, easements, all franchises acquired In anne1lon with the Projects; (y) the cast of all utility entensrors all site Improvements all derebpment (8) the cost a Penning, d&vel*N, preparation Of spMiaticns, surveys, erginee ten, fisslbilby studies, legal all all prommanal services associated witn the Projects; (9) the as a ewimnmental AWiss all assessments; (10) the mat of authartcd hereunder, whether reWted or unrelated W the noregoig. THAT tun inveshrsnt eamirgs on the proceeds Of the bands, if any, all the excess proatCds of the bonds, nam, be and hereby are appropriated nor the folbwlrg purposes, such proceeds m be had and applied in one folbwing order of priority: 1. To any costs ofthe Projects in excess of the principal amount of one bonds; 2. Stun bonds or notes are kaund on a tax exernpt hasis, in xccMace AU applicable tams and prwisbns athe Arbilai and Use Of Hoceeds CeroiceM delivered In connection with the sale athe bonds or rales ialudhg, W the extent permitted thereunder, W the CWs f,enaal Fund. THAT Me Finance Direr, Omimran ofthe City Cauna, Citric, and oMer proper offidab Of the Ory he, and hereby are, authorittE and empoweretl in its more and on as behalf W m or muse to be dart all such acts and things as may be nesssary, a dsimae In order W effect: the issuance, sale, and delivery a do bonds and notes as hainduad iauUgRed. THIT tithe Rrwme Director, Owirman Of the City Quail, or Clark are for any reason unavallable W approve and execute the bonds or any rented firwrdrg tlocrments, the person or persons then acting In any such capacity, whether as an asHstany a deputy, or otherwise, b authorized W act for sxh oRtlal win Me some Wme and eft as 9 such official heti himself or herself performel such aa. IN CITY COUNCIL November 26, 2001 First Reading Referred to produce Committee Csae I ,I IN CITY COUNCIL Becenher 10, 2001 Nation Rade and seconded to Open Public Nearing, Public Rearing Opened. No e from the Public Cam Forward. Motion Nade and Seconded to Close Public Rearing. Public Rearing Closed. Notion Made and Seconded for Passage Passed �� 02-36 ORDER Title, Authorizing the Issuance of {3,852,608 Aggregate Principal Amnut of General Obligation Bonds, Notes In Anticipation Thereof and a Tax Lavy Therefor Assigned to PU�w- Councilor iQl 02-36 T Tin d Omyears EurlWwlnkh airy of Ne buxt are outsmndixi, Nemsball t kvietla W In an an nt Net, w ola navenues, H airy, avaiWde f that iwP , §ball h suNrlentan pay Ne Interest w said balls, payable In such years, a4 the alalaal of u h m bullg in sum y ars. 02-36 PUBLIC HEARING CRY OF BANGOR General Obligation Bonds Not to Exsed $3,852,900 For various Capital Projel The Bangor City Council will hold a Publk Hearing at its Regular Meeting at 7:30 PM on Monday, December 10, 2001 in The City CoumJl Chambers, on the third fiber of City Hall, 73 Harlow Street, Bangor, Maine, for the Purpose o/ hearing Public Comment on a proposed issuance of General Oblyadon Bands In the principal amount net to exceed $3,852,900 rd be Issued as part of the City's H02 Call borrowing Proseds will be used to fuM the following capital projects: Police Department Renovation Sawyer Arena Expansion Recycling Canter Expansion Bill Program The foregoing list of projects b a nron-boM1austive list of protects that will be consbered by the City Councll at Or public hearing and may be expantl 1, reduced or revised by the City Council at said public hearing. A copy of the entire order h available to the public In the City Clerk's Offs at Bangor City Hall. The public is invited to address the Council on Mis proposed bond issue. November 26, 2001 Gall Campbell City Clerk