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HomeMy WebLinkAbout083-92 OrdinanceORDINANCE NO. 83-92 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $ 1,950,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING, IN ANTICIPATION OF THE LEVY AND COLLECTION OF SPECIAL ASSESSMENTS, COSTS OF THE IMPROVEMENT IN THE CITY OF TULLER ROAD AND VILLAGE PARKWAY BETWEEN CERTAIN TERMINI BY WIDENING, GRADING, DRAINING, PAVING, CURBING, LIGHTING, INSTALLING WATERLINES, FIRE HYDRANTS AND STORM SEWERS, CONSTRUCTING NEW CONNECTION CURVES TO REPLACE THE EXISTING INTER- SECTION OF TULLER ROAD AND VILLAGE PARKWAY, AND RELOCATING OVERHEAD WIRES, CABLES AND APPURTENANT EQUIPMENT UNDERGROUND, TOGETHER WITH ALL NECESSARY APPURTENANCES INCLUDING CONSTRUCTING A BIKEWAY, AND ACQUIRING REAL ESTATE AND INTERESTS IN REAL ESTATE THEREFOR, AND DECLARING AN EMERGENCY. WHEREAS, this Council has previously by proper legislation declared the necessity of the improvement described in Section 1; and WHEREAS, the Director of Finance as fiscal officer of this City has certified to this Council that the estimated life or period of usefulness of the improvement described in Section 1 is at least five years, the estimated maximum maturity of the bonds described in Section 1 is 20 years, and the maximum maturity of the Notes described in Section 3, to be issued in anticipation of the bonds, is five years; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Franklin, Union and Delaware Counties, Ohio, that: Section 1. It is necessary to issue bonds of this City in the aggre- gate principal amount of $ 1,950,000 (the Bonds) for the purpose of paying, in anticipation of the levy and collection of special assessments, costs of the improvement in the City of Tuller Road and Village Parkway between certain termini by widening, grading, draining, paving, curbing, lighting, installing waterlines, fire hydrants and storm sewers, constructing new connection curves to replace the existing intersection of tuller road and village parkway, and relocating overhead wires, cables and appurtenant equipment underground, together with all necessary appurtenances including constructing a bikeway, and acquiring real estate and interests in real estate therefor in the manner provided in Resolution No. 03-92 adopted April 6, 1992. The property owners' portion of that amount and the City's portion of that amount shall be as set forth in that Resolution No. 03-92 as adjusted in Ordinance No. 80-92 passed June 1, 1992. Section 2. The Bonds shall be dated approximately June 1, 1993, shall bear interest at the now estimated rate of 6-3/4% per year, payable semiannually until the principal amount is paid, and are estimated to mature in 2.0 annual principal installments that are substantially equal. Section 3. It is necessary to issue and this Council determines that notes in the aggregate principal amount of $1,950,000 (the Notes) shall be issued in anticipation of the issuance of the Bonds. The Notes shall bear interest at a rate or rates not to exceed 7% per year (computed on a 360 -day per year basis), payable at maturity and until the principal amount is paid or payment is provided for. If requested by the original purchaser, the Notes may provide that, in the event the City does not pay or make provision for payment at maturity of the debt charges on the Notes, the principal amount of the Notes shall bear interest at a different rate or rates not to exceed 10% per year from the maturity date until the City pays or makes provision to pay that principal amount. The rate or rates of interest on the Notes shall be determined by the Director of Finance in the certificate awarding the Notes in accordance with Section 6 of this ordinance. Section 4. The debt charges on the Notes shall be payable in lawful money of the United States of America, or in Federal Reserve funds of the United States of America if so requested by the original purchaser, and shall be payable, without deduction for services of the City's paying agent, at either or both of, as determined by the Director of Finance, the office of Bank One, Columbus, N.A., Columbus, Ohio, or at the principal office of a bank or trust company requested by the original purchaser of the Notes, provided that such payment shall be approved by the Director of Finance after determining that the payment at that bank or trust company will not endanger the funds or securities of the City and that proper procedures and safeguards are available for that purpose. The Notes shall be dated the date of issuance and shall mature not earlier than nine months or later than one year from the date of issuance, with the Director of Finance to establish a specific maturity date which, in her judgment, is most advisable to the sale of the Notes and with that specific maturity date set forth in the certificate of award. Section 5. The Notes shall be signed by the City Manager. and Director of Finance, in the name of the City and in their official capacities, provided that one of those signatures may be a facsimile. The Notes shall be issued in the denominations and numbers as requested by the original purchaser and approved by the Director of Finance, provided that the entire principal amount may be represented by a single note; and provided further that the Notes shall be issued .in the minimum denomination of $100,000 each and shall not be exchangeable for other Notes in denominations less than $100,000. The Notes shall not have coupons attached, shall be numbered as determined by the Director of Finance and shall express upon their faces the purpose, in summary terms, for which they are issued and that they are issued pursuant to this ordinance. Section 6. The Notes shall be sold at not less than par at private sale by the Director of Finance in accordance with law and the provisions of this ordinance. The Director of Finance shall sign the certificate of award referred to in Section 3 evidencing that sale, cause the Notes to be prepared, and have the Notes signed and delivered, together with a true transcript of proceedings with reference to the issuance of the Notes if requested by the original purchaser, to the original purchaser upon payment of the purchase price. The City Manager, the Director of Finance, the Clerk of Council and other City officials, as appropriate, are each authorized and directed to sign any transcript certificates, financial statements and other documents and instruments and to take such actions as are necessary or appropriate to consummate the transactions contemplated by this Ordinance. Section 7. The proceeds from the sale of the Notes, except any premium and accrued interest, shall be paid into the proper fund or funds and those proceeds are appropriated and shall be used for the purpose for which the Notes are being issued. Any portion of those proceeds representing pre- mium and accrued interest shall be paid into the Bond Retirement Fund. Section 8. The par value to be received from the sale of the Bonds or of any renewal notes and any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used to pay the debt charges on the Notes at maturity and are pledged for that purpose. Section 9. During the year or years in which the Notes are out- standing, there shall be levied on all the taxable property in the City, in addition to all other taxes, the same tax that would have been levied if the Bonds had been issued without the prior issuance of the Notes. The tax shall be within the ten -mill limitation imposed by law, shall be and is ordered computed, certified, levied and extended upon the tax duplicate and collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of those years are certified, levied, extended and collected, and shall be placed before and in preference to all other items and for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment of the debt charges on the Notes or the Bonds when and as the same fall due. All special assessments collected for the improvement described in Section 1 and any unexpended balance remaining in the improvement fund after the cost and expenses of the improvement have been paid shall be used for the payment of the debt charges on the Notes until paid in full. Section 10. The City covenants that it will use, and will restrict the use and investment of, the proceeds of the Notes in such manner and to such extent as may be necessary so that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Sections 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code) or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the interest on the Notes will not be treated as an item of tax preference under Section 57 of the Code. - 2 - The City further covenants that (a) it will take or cause to be taken such actions that may be required of it for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, (b) it will not take or authorize to be taken any actions that would adversely affect that exclusion, and (c) it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing, (ii.) restrict the yield on investment property, (iii) make timely and adequate payments to the federal government, (i.v) maintain books and records and make calculations and reports and (v) refrain from certain uses of those proceeds, and, as applicable, of property financed with such proceeds, all in such manner and to the extent necessary to assure such exclu- sion of that interest under the Code. The Notes are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. In that connection, the City hereby represents and covenants that it, together with all its subordinate entities or entities that issue obligations on its behalf, or on behalf of which it issues obligations, in or during the calendar year in which the Notes are issued, (i) have not issued and will not issue tax-exempt obligations designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code, including the Notes, in an aggregate amount in excess of $10,000,000, and (ii) have not issued, do not reasonably anticipate issuing, and will not issue, tax-exempt obligations (including the Notes, but excluding obligations, other than qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are private activity bonds as defined in Section 141 of the Code and excluding refunding obligations that are not advance refunding obligations as defined in Section 149(d)(5) of the Code) in an aggregate amount exceeding $10,000,000, unless the City first obtains a written opinion of nationally recognized bond counsel that such designation or issuance, as applicable, will not adversely affect the status of the Notes as "qualified tax-exempt obligations". Further, the City represents and covenants that, during any time or in any manner as might affect the status of the Notes as "qualified tax-exempt obligations", it has not formed or participated in the formation of, or benefited from or availed itself of, any entity in order to avoid the purposes of subparagraph (C) or (D) of Section 265(b)(3) of the Code, and will not form, participate in the formation of, or benefit from or avail itself of, any such entity. The City further represents that the Notes are not being issued as part of a direct or indirect composite issue that combines issues or lots of tax-exempt obligations of different issuers. The Director of Finance, as the fiscal officer, or any other officer of the City having responsibility for issuance of the Notes is hereby authorized (a) to make or effect any election, selection, designation, choice, consent, approval, or waiver on behalf of the City with respect to the Notes as the City is permitted to or required to make or give under the federal income tax laws, including, without limitation thereto, any of the elections provided for in Section 148(f)(4)(C) of the Code or available under Section 148 of the Code, for the purpose of assuring, enhancing or protecting favorable tax treatment or status of the Notes or interest thereon or assisting compliance with requirements for that purpose, reducing the burden or expense of such compliance, reducing the rebate amount or payments or penalties, or making payments of special amounts in lieu of making computations to determine, or paying, excess earnings as rebate, or obviating those amounts or payments, as determined by that officer, which action shall be in writing and signed by the officer, (b) to take any and all other actions, make or obtain calculations, make payments, and make or give reports, covenants and certifications of and on behalf of the City, as may be appropriate to assure the exclusion of interest from gross income and the intended tax status of the Notes, and (c) to give one or more appropriate certificates of the City, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City regarding the amount and use of all the proceeds of the Notes, the facts, circumstances and estimates on which they are based, and other facts and circumstances relevant to the tax treatment of the interest on and the tax status of the Notes. Section 11. The Clerk of Council is directed to deliver a certified copy of this ordinance to the County Auditor. Section 12. This Council determines that all acts and conditions necessary to be done or performed by the City or to have been met precedent to and in the issuing of the Notes in order to make them legal, valid and binding - 3 - general obligations of the City have been performed and have been met, or will at the time of delivery of the Notes have been performed and have been met, in regular and due form as required by law; that the full faith and credit and general property taxing power (as described in Section 9) of the City are pledged for the timely payment of the debt charges on the Notes; and that no statutory or constitutional limitation of indebtedness or taxation will have been exceeded in the issuance of the Notes. Section 13. This Council finds and determines that all formal actions of this Council concerning and relating to the passage of this ordinance were taken in an open meeting of this Council and that all delibera- tions of this Council and of any committees that resulted in those formal actions were in meetings open to the public in compliance with the law. Section 14. This ordinance is declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or welfare of this City and for the further reason that this ordinance is required to be immediately effective to provide for the construction of the improvement, which is needed to reduce traffic congestion and enhance traffic safety in the City; wherefore, this ordinance shall be in full force and effect immediately upon its passage. Passed: June / , 1992 Effective: June /, 1992 S'gned: f Presj6,.vng Officer Attest: 0- 2z__�-E Clerk of Council I hereby certify that codes of this Ordinance/ W City -of Dublin in accordance with Section 731.13 o Oh SM Postod Reristo jam, Clerk of Coundl, Dublin, Ohio - 4 - FISCAL OFFICER'S CERTIFICATE To the Council of the City of Dublin, Ohio: As fiscal officer of the City of Dublin, I certify in connection with your proposed issue of $ 1,950,000 notes (the Notes), to be issued in anticipation of the issuance of bonds (the Bonds) for the purpose of paying, in anticipation of the levy and collection of special assessments, costs of the improvement in the City of Tuller Road and Village Parkway between certain termini by widening, grading, draining, paving, curbing, lighting, installing waterlines, fire hydrants and storm sewers, constructing new connection curves to replace the existing intersection of Tuller Road and Village Parkway, and relocating overhead wires, cables and appurtenant equipment underground, together with all necessary appurtenances including constructing a bikeway, and acquiring real estate and interests in real estate therefor (the improvement), that: 1. The estimated life or period of usefulness of the improvement is at least five years. 2. The estimated maximum maturity of the Bonds, calculated in accordance with Section 133.20 of the Revised Code, is in excess of 20 years but because the special assessments will be payable over a period of 20 years, and the Bonds are to be issued in anticipation of the collection of those special assessments, the maximum maturity of the Bonds is 20 years. 3. The maximum maturity of the Notes is five years. Dated: June 1, 1992 Director of Finance City of Dublin, Ohio MEMORANDUM TO: Members of Dublin City Council FROM: Timothy C. Hansley, City Manager SUBJECT: Tuller Road Debt Issue DATE: May 28, 1992 INITIATED BY: Marsha I. Grigsby, Director of Finance As part of the Tuller Road project, notes need to be issued in an amount sufficient to cover the costs of acquiring easements and right-of-ways and the construction of the improvements. The attached ordinance is requesting Council's approval to issue those notes. Section 1 specifies the amount of debt that needs to be issued; however, due to issues that have arisen during the bidding process, the dollar amount needed was not known at the time the packet was distributed. This information will be provided to you Monday night at the Council meeting.