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HomeMy WebLinkAbout137-87 Ordinance .. ~ .....l t- ORDINANCE NO. 13 7 -87 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $1,200,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR-THE PURPOSE OF PAYING COSTS OF CONSTRUCTING A SWIMMING POOL, BATH HOUSES, A PUMP HOUSE AND A CONCESSION STAND, ACQUIRING FURNISHINGS AND EQUIPMENT THEREFOR, AND MAKING RELATED SITE IMPROVEMENTS, TOGETHER WITH NECESSARY APPURTENANCES THERETO, AND DECLARING AN EMERGENCY. WHEREAS, this Council has requested that the Director of Finance, as fiscal officer, certify the estimated life or usefulness of the improvement described in Section 1 and the maximum maturity of the Bonds described in Section 1 and the Notes described in Section 3, to be issued in anticipation of the bonds; and WHEREAS, the Director of Finance has certified that the estimated life of that improvement is at least five years and that the maximum maturity of the bonds is 21 years allocated to the classes of improvements set forth in the Fiscal Officer's Certificate, whiCh allocation is approved, ratified and confirmed, and the maximum maturity of the notes is 20 years, or one year if sold at private sale; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Franklin, Union and De~aware Counties, OhiO, that: Section 1. It is necessary to issue bonds of this City in the aggre- gate principal amount of $1,200,000 (the Bonds) for the purpose of paYing costs of constructing a swimming pool, bath houses, a pump house and a concesSion stand, acquiring furnishings and equipment therefor, and making related site improvements, together With necessary appurtenances thereto. Section 2. The Bonds shall be dated approximately November 1, 1988, shall bear interest at the now estimated rate of 8-1/2% per year, payable semi-annually until the principal amount is paid, and shall mature in 21 substantially equal annual installments. Section 3. It is necessary to issue and this Council determines that notes in the aggregate principal amount of $1,200,000 (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 10% 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. 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 principal of and interest on the Notes shall be pay- able 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 pur- chaser. The principal of and interest on the Notes shall be payable, without deducti~n for services of the City's paying agent, at either or both of, as determined by the Director of Finance, the main office of The Huntington National Bank, Columbus, OhiO, or the principal office of a bank or trust company requested by the original purchaser of the Notes, provided that such request shall be approved by the Director of Finance after determining that the payment at that bank or trust company Will adequately protect the funds of the City and that proper procedures and safeguards are available for that purpose (the PaYing Agent). The Notes shall be dated the date of issuance and shall mature one year from the date of issuance. 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, and bear the corporate seal of the City or a facsimile of that seal. 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. 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 for whiCh they are issued and that they are issued pursuant to this ordinance. . . . . -2- . - , i Section 6. The Notes are offered at par and accrued interest, if any, to the Director of Finance, as officer in charge of the Bond Retirement Fund of the City. Notes not purchased for the Bond Retirement Fund or for other funds of the City shall be sold 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 ~he No~es signed and delivered, together with a true transcript of proceed1ngs w1th reference to the issuance of the Notes if requested by the original purchaser, to the original purchaser upon payment of the purchase price. 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 principal of and interest 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 limita ti on 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 principal of and interest on the Notes or the Bonds when and as the same fall due. Section 10. The City covenants that it Will restrict the use of the proceeds Of the Notes in such manner and to such extent, if any, as may be necessary so that the Notes Will not constitute arbitrage bonds under Section 148 of the Internal Revenue Code of 1986, as amended (the Code). The Director of Finance, as the fiscal officer, or any other officer of the City having responsibility for the issuance of the Notes shall give an appropriate certificate 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 the Notes. The City covenants that it (a) 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, and (b) Will not take or authorize to be taken any actions that would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts Of compliance, (1) apply the proceeds of the Notes to the governmental purpose of the borrowing, (ii) restrict the yield on investment property acquired With those proceeds, (iii) make timely rebate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of those proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The Director of Finance and other appropriate officers are authorized and directed to take any and all actions, make calculations and rebate payments, and make or give reports and certif ications, as may be appropriate to assure such exclusion of that interest. 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 represents and covenants that it (it having no subordinate entities With authority to issue obligations within the meaning of that Section of the COde) (i) has not issued and Will not issue, in the calendar year in which the Notes are issued, tax-exempt obligations (other than those that are not to be taken into account for purposes of Section 265(b)(3)(C) of the Code) in an aggregate principal amount exceeding $10,000,000 (including the Notes) and (ii) has not . . -3- ': . . designated and Will not designate as "qualified tax-exempt obligations", for purposes of that Section 265(b)(3), obligations issued in the calendar year in which the Notes are issued (other than those that are not to be taken into account for purposes of Section 265(b)(3)(D) of the Code) in an aggregate principal amount exceeding $10,000,000. The City further represents and covenants that during the calendar year in which the Notes are issued, the City did not issue and will not issue obligations (Of the type to which Section 265(b)(3) of the Code applies) on behalf of any other entity, and no other entity has issued or will be authorized to issue obligations (of such type) on behalf of the City. Further, the City represents that it has not formed, participated in the formation of, or benefited from the formation of, any entity formed in order to avoid the purposes of subparagraph (C) and (D) of Section 265(b)(3) of the Code, and covenants that it Will not do so. Section 11. The Clerk of Council is directed to deliver a certified copy of this ordinance to the County Auditors of Franklin, Union and Delaware Counties. Section 12. Thj,s 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 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, credit and revenues of the City are pledged for the timely payment of the principal of and interest 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 weqe 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 and welfare of the City, and for the further reason that this ordinance is reqUired to be immediately effective in order to issue and sell the Notes, which is necessary to award construction contracts and begin construction of the Swimming pool at the earllest POSSible time to prOVide adequate and safe I opportunities for eXerjiSe and recreation at the earliest pOSSible time and thereby improve the he lth and safety Of the citizens of the City; wherefore, this ordinance shall be in full force and effect immediately upon its passage. Signed: J3~~ {lP1t4Lf4'-r PreSiding Officer //i Attest: J;0ntto ~. t(hda-J Clerk of CounCil Passed: November d, 1987 , hereby certify tn,,! copies of this Or:F'2:lce/P::'2.')/utio!1 Effective: November ~ 1987 were po~ted in [hi] cr DL,!;,::.~: i;: E.,~'C;:':~~~;ice with Section 731.25 sf L3 0:::0 f;cv:~':',~ [:::8, ,._,qft~(.tj07/1 t~~_/ Clerk of Council ' I ~~ QLI. '.8 I . ' . .-. 2_~ Clerk of (0';0,::1, hNOhy certify thaI fomlJ'J:~g IS Cl IIT_ C!I)iY of ardii1ance/~~akt'J:l No, L-22:--.!!:_L d"ly O'''.'''''d '. f - ., t A '" '''''ri',. uy lie LO'.!;]::,i CiI ii;;?; Ci~ of D+i'rr (W" "n tl,,, #..<. doy of ~~~ -~-z'-'" ,.;~,,, ... / , ~. .- '-!Aa77~ ~=.Y/7~idd.~.,~ Clerk of Council, ~bl;n, Ohio . - - ~ MEMORANDUM TO: All Council Members FROM: Nanette J. Prushing, Finance Director SUBJECT: Bids on $1,200,000.00 Notes/Swimming Pool DATE: November 24, 1987 The following bids were received at 11:00 A.M. today for the above-referenced note issue: Interest Rate After Rate Premium Maturity - Ehrlich-Bober 6 . 00/0 $3,396.00 ----- Huntington National Bank 5.89% None ----- The Ohio Company 5.99% $79.00 10~% The high premium paid by Ehrlich-Bober gives a Net Interest Cost (NIC) of 5.71%; therefore I will be awarding the bid to them in accordance with Section 6 of Ordinance No. 137-87. NJP:fmu ~(Q)~W ~,ff~~0~ ~~/-~~..d ~., -C~d~ g-~ ('t1'/4,/ .?.?4.t9.P.?.? fJ8~. fJ8~ llJaPWelk Jf/~ g;~ g-~ ('t1'/4.J .?.?4.t9JJ.? G'~ O'k /55 rf?rzd 1lJ~ J~ ~~A1U: sz-~ ",'K- '$/.-(, ~ w.-( -C~. elk 48.?/5 9~..~ Jr~. 9~ November 23, 1987 Nanette J. Prushing Finance Director City of Dublin 6665 Coffman Road Dublin, Ohio 43017 Subj ect: $1,200,000 Swimming Pool Construction Notes Dear Nan: I have prepared and enclose herewith a revised fiscal officer's certificate, note ordinance, county auditors' receipts and rejection certificate. Each of these items has been revised for a note issue in the amount of $1,200,000, instead of the initial amount of $1,000,000. The increase in amount is in response to your request and based on the following revised project budget provided by the City's architect, AI Sulser: Buildings and other structures $ 528,000 (includes bath house/shower/locker room/pump house/concession building) Swimming pool and embedded equipment 314,000 Site work (includes utilities/grading/ 131,000 landscaping/seeding/fencing) Cabanas/sunscreens 21 ,000 Concession equipment 15,000 Architect's fees 83,000 Contingencies/other possible alternates 108,000 $1,200,000 Please call me if you have any questions regarding this budget. The enclosed fiscal officer's certificate should be reviewed and signed by you and presented to Council prior to consideration of the enclosed note ordinance at its special meeting on November 24. The weighted average useful life calculation in the certificate has been revised based on the new cost estimates. As with the original certificate, the calculation is based on .- ~,ff~fY~ Nanette J. Prushing November 23, 1987 Page 2 the conservative assumption that all alternates selected from the construction bid and all contingencies will have a useful life of 10 years. The enclosed note ordinance has been drafted as an emergency measure and should be passed following a suspension of Council's three-reading rule. The three-reading rule should be suspended and the ordinance passed by separate affirmative votes of two-thirds of the members of Council. The ordinance provides for the issuance of $1,200,000 notes "for the purpose of paying costs of constructing a swimming pool, bath houses, a pump house and a concession stand, acquiring furnishings and equipment therefor, and making related site improvements, together with necessary appurtenances thereto." This purpose clause is unchanged from the original ordinance. The ordinance-provides that the notes will ~ dated the date of issuance, and will mature one year from the date of issuance. The ordinance authorizes you to sell the notes at private sale at an interest rate not to exceed 10% per annum, and if requested by the original purchaser, at an after maturity interest rate not to exceed 10% per annum. The rate(s) of interest and specific maturity date will be established in the certificate of award executed by you in accordance with Section 6 of the ordinance. Please call me after you have selected a purchaser and determined an interest rate on the notes so that we can prepare the certificate of award and remaining items for the note closing. -- Reference is also made to Section 10 of the note ordinance and my letter of October 29 explaining these tax covenants and related provisions. Following passage of the note ordinance, a copy of the ordinance should be delivered to the Auditors of Franklin, Union and Delaware Counties, and each Auditor should complete, sign and date the appropriate version of the enclosed county auditor's receipt. You should sign and date the enclosed rejection certificate following passage of the ordinance. For the transcript of proceedings, please send me the following: 1. The executed fiscal officer's certificate. 2. A certified copy of the note ordinance as passed by Council. 3. The minutes or an extract of minutes of the meeting of Council showing passage of the note ordinance following separate roll call votes on the suspension of rules and on passage of the ordinance as an emergency measure. 4. The enclosed county auditor's receipts, completed, signed and dated by the county auditors noted above. . . ~.ff~~~ Nanette J. Prushing November 23, 1987 Page 3 5. The enclosed rejection certificate, signed and dated by you. Please call if you have any questions. Very truly yours, Gregory W. Stype:ecj Ga- enclosures cc: ~hen J. Smith, Director of Law (w/enc.) ancis Urban, Clerk of Council (w/ordinance enc.) Janet Jordan, Director of Parks and Recreation (w/ordinance enc.)