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HomeMy WebLinkAbout2002-08-26 02-316 ORDERDUNCILAMON Item N0. 02-316 Dace: August 26, 2002 Item/Subject: ORDER - Authorizing the issuance of $3,000,000 aggregate principal amount of general obligation bonds, notes in anticipation thereof and a tax levy therefor for CSO project Responsible Department: Finance Commentary: In order to remain in compliance with an EPA consent decree, the City is required to complete certain ComNned Sewer Overflow (CSO) projects annually. This order will allow the City to borrow up to $3,000,000 for the FY03 CSO projects. With this issue, the City will resume financing M projects through the Maine Municipal Bond Bank's State Revolving tuan Fund (SRF). For the last five years, 55% of the costs of CSO projects have been funded by a grant from the Environmental Protection Agency. Those grant funds are now depleted. By utilizing the SRF program, the borrowed funds are partially interest free resulting in a lower average cost to borrow than would be available in the bond market. Department Head Manager's Comments: This order requires a public hearing prior to passage. City Manager Order, Notice of Public Hearing Budget Approval: Finance Committee recommends approval. Finance Director Legal Approval: City Solicitor Introduced for _ Passage _L First Reading Page _ Of— Referral f_Referral 02-316 1 Assigned W Councilor Tremble August 26, 2002 INN CITY OF BANGOR (TRINE.) ORDER, Authorizing the Issuance of $3,MOM aggregate principal amount of general obligation bonds, notes In anticpation thereof and a tax levy therefor for CSO project By me Oily Cbunci/ of 6x IX y Wanga: ORDERED, THAT Pursued M 30-A M.R.SA. §57]2, Section 13 of Article W of the aty Garter (Private and Special Laws of 1931, Chapter 54 and all amendme ms thereof and acts additional Mereto), and all other authority thereto enabling, there is hereby authorized Me Issue and sale atone core aud from time M time up M Three Million Dollars ($3,00(1,000) aggregate prindpal amount of general obligation bonds of Me City of Bangor. The proceeds derived from the sale of old bonds, including premium, if any, and any Investment earnings thereon shall be used aud are hereby appropriated W pay a portion of Me costs (as herein defined) of the following Project (Me "Project'): Eecm tted Deacriat on amount Life CSO Project $3,000,000 20 years T T the estimated weighted period of utility for Me property constituting the Project M be financed with Me proceeds of old bonds is hereby, determined to be the period of core iindicated above for said Project. T T the date, maturitiss (not W exceed 20 years from the Issue date), denominations, Interest rate or rates (not W exceed 8.00% per annum), place of payment and other details of each Issue of mid bonds, including Me timing and provisbn for their sale and award shall be determined by Me finance Director with Me approval of Me Finance Committee. T Tthe bonds hereby authorized may, be made subject to call far redemption, with or without a premium, before the data fixed for final payment of the bonds, as provided in 30-A MRSA. §5772(6), as amended, as shall be determined by Me finance Director with the approval of the finance Committee. T T old bonds shall be signed by the Forane Director, countersigned by the Caiman of the City Council, sealed with the seal of the City, attested by its Clerk, and shall be In such forth and contain such terms and provisions not inconsistent herewith as they may approve, Meir approval to be conclusively evidenced by their execution Mereof. Any issue of bonds may be consolidated with and issued at Me same time as any other issue of bonds authorized prior to their issuance, and the bonds may be divided Into multiple series and Issued in separate plans of financing, with Me approval of Me Finance Committee. 02-316 THAT the following resolutions required by Section C(4)(e) of the State of Maine Revolting Loan Fund Rules, Chapter 595, Department of Environmental Protection and Maine Municipal Bond Bank (the "SRF ReguWtiOrej, and goveming the ban ta be made m the City under the State Revolving Loan Fund Program be and hereby are adopted: (1) That a Project Account shall be created far the Project which shall be separate from all other accounts of the City. If operating revenues are to be used ce retire the debt, a sub -account will be established. (2) That the project Account shall be maintained in accordance with standards set fad by the Maine Municipal Bond Bank and in accordance with generally accepted gommment account standards. (3) That a final accounting shall be made to the Bank of the total con of the project upon completion of the Project performance certification as set out In Section G(3) of the SRF Regulations and the City admoMedges that the Bank resenrea the right at Its We discretion ta be provided with a cost certification of the Prcjed as Will. (4) That an annual audit of the City, prepared by a certified pudic accountant or licensed pudic accountant be provided m the Bank for the term of one loan. (5) That the City shall maintain insurance coverage on Me Project in an amount adequate to protect the Bank's interest for the term of tie: loan with the Bank named as loss payee. (6) That the City will comply with any special condition specified by the Department of Environmental Protection's environmental determination until all finandal obligations ta the State have been discharged. (n That the City certify to the 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 prlMpal and interest. Such race change or schedule shall provide total operations and debt service coverage at a level at which the coverage for the Bank Is sufikient, (9) That Me City must demonstrate the ability to pay reasonably anticipated costs of operating and maintaining the financed Project. (10) That the City abide by the SRF Regulations, as revised and amended and relevant State statutes of the State of Maine. 02-316 THAT the investment eamirgs on the proceeds of the bonds and nota, if any, and the excess proceeds of the bonds or nota, if airy, be and hereby are appropriated for the following purposes, such proceeds to be held and applied in the following order of priority: 1. To any costs of the Project in excess of the principal amount of the bands or notes authorized hereunder; 2. If the bonds or nota are Issued an a tax exempt basis, in accordance with applicable terns and provisions of the Arbitrage and Use of Premeds Cen ficam delivered in connection with the sake of the bonds or notes including, to the extent permitted thereunder, M the CRys General Fund. THAT the Finance Dkecter, Chairman of the City Council, Clerk, and other proper oifidais of die Chy be, and hereby are, authorized and empowered in Its name and on Its behalf to do or muse to be time all such acts and things as may he necessary or clearable In order to effect the issuance, cele, and delivery of the bonds and notes as hereinbefore authorized. THAT if the Finance Director, Chairman of the City Council, or Cleric are for any reason unavailable to approve and execute the bonds or any related financing documents, the person or persons then acting in any such capacity, whether as an assistant, a deputy, or otherwise, Is authonzed to ad for such official with the same farce and effect as if such official had himself or herself performed such ad. THAT in each of the years during which any of the bonds are outstanding, Mere shall he levied a tax in an amount that, with other revarues, V any, available for that purpose, shall be sufficient to pay the Interest on mid bonds, payable in such years, and the principal of such bonds maturing in surd years. THAT in order M effect the borromi g and issuarxe of the bonds or notes, or any series thereof, authorized hereunder and M finance the cost of the Project, the Finance Director and the Chairman of the City Ceundl are hereby authorized and empowered (but not required) In the name of and on behalf of the City to borrow an amount not m exceed $3,DD0,000 at any one time outstanding from the Maine Municipal Bond Bank (the "Bank's (except that such amount may be exceeded when aggregated with arty other amounts duly authorized to be borrowetl by the City from the Bank) pursuant to the Statex Revolving Loan Fund program established under 3 A M.R.S.A. §WWA and administered by the Department of Environmental Protected and the Bank and to enter Into a Loan Agreement between the CRY and the Bank providing for a loan from the Bank in a principal amount not in excess of $3,000,000 and the Finance Director be and hereby is authorized and empowered, in the name and on behalf of the City, fo execute and deliver, under the seal of the City attested by E Clerk and countersigned by the Chairman of the City Council, a Loan Agreement between the city and the Bank providing for a loan from the Bank to the City in an amount not to exceed such amount said Loan Agreement fo be In the usual and ordinary form utilized by the Bank in connection with the State Revolving Loan Fund which Is hereby approved, and to contain such other terns and provisions, not contrary M the general tenor hereof, as the Finance Director may approve, her approval to be conclusively evidenced by this execution thereof. THAT the Finance Director be and hereby Is authorized and empowered, in the name of and on behalf of the City, fo execute and file with the Maine Municipal Band Bank and/or the Department of Environmental Protection an application for the City fo issue and sell up M $3,oD0,0D0 aggregate principal amount of its bands to the Maine Municipal Bond Bank wrsuant to the State Revolving Loan fund program. 02-316 T AT, if the bonds or nobs, or any part of them are Issued on a tax exempt basis, the officers executing such bones or notes be and hereby are Individually authorbetl and directed to covenant and certify on behalf of the City [hat no part a the proceeds of the issue and sale of the bonds or notes authorised to W sued hereunder shall be used directly or indirectly to acquire any seadtles or obligations, the acquisition of which would cause such bonds or notes W be "arb'Nege bonds" within the meaning of Section 198 of the Internal Revenue Code of 1986, as amended (the "Code'. TWIT, if the bonds or notes, w any part of them, are issued on a our exempt basis, the officers executing such bonds w rotes be and hereby are individually authorized to covenant and agree, on behalf of the City, for the benefit of the holders of soon bonds or notes, that the City will file any required repots and take any other action that may be necessary to ensure that Interest on the bonds ar notes will remain exempt from federal income taxation and that the City will refrain from any action Mat 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 IndMdually authorized to covenant, codify, 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, make any annual financial or material event disdaure, and take any other action that may be necessary to ensure that the disciowre requirements imposed by Rule I5c2-12 ofthe Securities and Exchange Commission, Y applicable, are met. T T, if the bonds or note; or any part 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 m designate the bonds or rotes as qualified tax-exempt obligations for WrPoses of Section 265(b) ofthe Code; it being Me City Ceunci t Intention that, to the extent permitted under the Code, the bonds or rotas be Section 265(b) designated and that the Finance Director with advice of bond counsel, make the required Section 265(b) election with respect to such bonds to the extent that Me election may be available and advisable as determined by the Finance Director. THAT Me term "cast" w"costs" as used herein and applied to the Project, or any potion Hereof, indudw, but Is trot limited to: (1) the Wrthase Wce or acquisition cost of all or any potion of the Project; (2) the tort of construction, building, alteration, enlargement, reconstruction, renovation, improvement, and equipping aide Project; (3) the cost aall appurtenances and other facilities either on, above, or undo the ground which are usetl 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, macbmery and equipment; (6) Me cat of land, structures, real property interests, rights, easements, and franchises acquired In connectiwi wgh the Project; (7) the cat of all utility extensions and site improvements and development; (8) the cost of planning, developing, preparation ofspedfiation% surveys, engineering, feasibility studies, legal and other professional services associated with the Project; (9) the asst of environmental studies and assessments; (10) the coot of financing charges and issuance cosh, including premiums for insuri interest prior to and during construction and, following completion ofcansbuctlon, for a period not M exceed 3 years from the issue date thereof, underwritenr fees and vests, legal and accounting fees and costs, application fees, and other fees and expenses relating to the financing transaction; and (11) the cast of all other financing authorized hereunder, whether needed or unrelated to the foregoing. THAT pursuant to 30-A M.R.SA. 45772, Section 15 of Article W of the City Charter and any other authority drereto enabling, the Finance Diredor, with approval of the Finance Committee is hereby authorized to Issue temporary nota of the Ory In anticipation of the forgoing bond Issue, said bonds to be signed by the Finance Director, countersigned by the Chairman of the City Council, sealed with the Baal of the City, attested by its Clerk, and otherw¢e to be in such farm and contain such terms and provisions including, without limitation, matudtia (not to exceed 3 years from the Issue date), denominations, interest rate 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. TTIAT any temporary notes Ondu ling nota in renewal thereof) authorized to be Issued under this Order may be Issued in combination with temporary notes (inducing notes in renewal thereof) and bonds authorized to be issued by the City Council at any time prior to the date of Issuance of the temporary nota. T T the francs Director be and hereby is authorized to select the underwriter, a financial advisor and the registrar, paying agent, and transfer agent for the bods and notes and to execute and deliver such contracts and agreements as may be necessary or appropriate to secure their services. TI WT the bonds and rotes shall be transferable only on the registration books lythe City kept by the transfer agent and said principal amount of the bonds and nota of the more maturity (but not of other maturity), upon surrender thereof at the princlpal office of the transfer agent with a written instrument of transfer satisfactory to the transfer agent duty executed by the registered owner or his or her attorney, duly authorized in writing. THAT the Finance Director be and hereby Is authorized to undertake all acts necessary W provide for the issuance and transfer of the bonds in book -entry form pursuant to the Depository Tent Company Book -Entry Only System, as an aftemative to the provisions of the foregoing paragraph above regarding physical transfer of bonds, and the France Director be and hereby is authorized and empowered to enter Into a Letter of Representation or any other contract agreement or understanding necessary or, in her opinion, appropriate in order to qualify the bonds for and participate in the Depository Trust Comprry Book-Enby Only System; THAT the Finance Director and Chairman of the City Council from time to time shall execute such hands or nota as may be required to pm nde far exchanges or transfers of bonds or nota as heretofore authorized, all such bonds or nota 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 shall cease M be such officer before the deliver of said fond or rote, such signature shall nevertheless be valid and sulfident for all purposes, the same as if such officer had remalned in office until delivery thereof. THAT upon each exchange or transfer of bonds or notes, the City and transfer agent shall make a charge sumdent to cover any tax, fee, or other govemmental charge required M be paid with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cont of which shall be bome by the City, the cost of preparing new bonds or rotes upon exchanges or transfers thereof shall be paid by the person requesting the same. THAT the bonds and nota issued in anticipation thereof be Issued an either a taxable or a tax-exempt basis, or a combination thereof, as determined by the Finance Director, with the approval of the Finance Committee. IN August CO®CIL Angnat Tb, 2002 i Pirs[ genal i p 02-316 ORORR ��77ITLE)^"cmriaf..g the Issuance of IN CITY COWICIL j3.00d. gate Fraucrpal September 9. 2002 of General Obligation goad. Nates in Notion Hare and Seconded Ant pat onreo d an ana TLevy to Open Public Nearing. Therefor for ISO Project Public Nearing Opened. No one from the Public ace forward. lotion Made and Seconded to Close Public Hearing. Public Hearing Closed. p Notion Mande and Seconded Assigned to Councilor I/W'm4'hP fon' Passage _ Passed 02-316 PUBLIC HEARING CITY OF BANGOR General Obligation Bonds Nm W Exceed $3,000,000 For Combined Sewer Overflow Projects The Bangor City Council will Hold a Public Hearing at its RegWm Mating at 7:00 p.m. on September 9, 2002 in the City Council Chambers on the 30 floor of City Hall, 73 Harlow Street, Bangor, Maine, for the Purpose of Hearing Public Comment on a Proposed Issuance of General Obligation Bonds in the Principal Amount not to Exceed $3,00 0,000 an fwd Combined Sewer Overflow Projects. A Copy of the Order will be Available to the Public in the City Clerks office at Bangor City Hell Prior to the Public Hearing. The Public is Invited to Address the Council on this Proposed Bond Order. August 27, 2002 Gail E. Campbell, City Clerk — macaFAp&� ForCITY OF eapar all p M'wAPOA` Tho Ai M a Trym 4mN gswuG.w to NO Has of St of ntoo 0.a tlIn waft ^.101 Annanol I,, ad eynI Fa IAbv$veiewap� too wwr All IHHalf HIM to th, an FHArnF haw. Col I noOn' Pg q