Ordinance 46-12RECORD OF ORDINANCES
Inc.
Ordinance No.
46 -12 (Amended)
Passed 20
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF $4,240,000
FOR THE PURPOSE OF PAYING THE COSTS OF CURRENTLY
REFUNDING THE CITY'S AVERY- MUIRFIELD DRIVE
INTERCHANGE IMPROVEMENT NOTE, SERIES 1999 WHICH WAS
ORIGINALLY ISSUED FOR THE PURPOSE OF PAYING COSTS OF
IMPROVING THE VEHICULAR TRANSPORTATION SYSTEM IN
THE CITY BY MODIFYING THE AVERY- MURUIELD DRIVE
INTERCHANGE, INCLUDING DECK WIDENING AND RAMP
WIDENING; THE WIDENING OF AVERY- MUIRFIELD FROM THE
INTERCHANGE TO PERIMETER DRIVE, ADDING ONE LANE IN
EACH DIRECTION; ADDING A LANE FROM PERIMETER DRIVE
TO POST ROAD; AND INSTALLING A CLOSED LOOP SIGNAL
SYSTEM, TOGETHER WITH ALL NECESSARY APPURTENANCES.
WHEREAS, pursuant to Ordinance No. 87 -99 passed on August 9, 1999 (the "1999 Note
Ordinance "), the City issued its $8,055,000 Avery - Muirfield Drive Interchange
Improvement Note, Series 1999, dated as of September 1, 1999 (the "1999 Note") for the
purpose stated in Section 2; and
WHEREAS, this Council finds and determines that it is in the best interest of the City to
issue the Bonds described in Section 2 to refund, together with other monies available to
the City for the purpose, at a lower rate of interest the 1999 Note maturing semi - annually
in the years 2012 through 2019 and currently outstanding in the aggregate amount of
$4,026,563.45 (collectively, the "Refunded Note "), and to pay financing costs with
respect to the Bonds; and
WHEREAS, this Council has requested that the Director of Finance, as fiscal officer of
the City, certify the estimated life or period of usefulness of the Improvement described in
Section 2 and the maximum maturity of the Bonds described in Section 2; and
WHEREAS, the Director of Finance, as fiscal officer of the City, has certified to this
Council that the estimated life or period of usefulness of that Improvement is at least five
years and that the maximum maturity of the Bonds described in Section 2 is August 1,
2021;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State
of Ohio, —q-- of the elected members concurring, that:
Section 1. Definitions and Inte retation. In addition to the words and terms elsewhere
defined in this Ordinance, unless the context or use clearly indicates another or different
meaning or intent:
"Authorized Denominations" means the denomination of $5,000 or any integral
multiple in excess thereof.
"Bond Proceedings" means, collectively, this Ordinance, the Certificate of Award,
the Continuing Disclosure Agreement, the Purchase Agreement, the Registrar Agreement
and such other proceedings of the City, including the Bonds, that provide collectively for,
among other things, the rights of holders and beneficial owners of the Bonds.
"Bond Register" means all books and records necessary for the registration,
exchange and transfer of Bonds as provided in Section 5.
"Bond Registrar" means a bank or trust company authorized to do business in the
State of Ohio and designated by the Director of Finance in the Certificate of Award
pursuant to Section 4 as the initial authenticating agent, bond registrar, transfer agent and
paying agent for the Bonds under the Registrar Agreement and until a successor Bond
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Passed 20
Registrar shall have become such pursuant to the provisions of the Registrar Agreement
and, thereafter, "Bond Registrar" shall mean the successor Bond Registrar.
"Bonds" means, collectively, the Serial Bonds and the Term Bonds, each as is
designated as such in the Certificate of Award.
"Book entry form" or "book entry system" means a form or system under which
(a) the ownership of beneficial interests in Bonds and the principal of and interest on the
Bonds may be transferred only through a book entry, and (b) physical Bond certificates in
fully registered form are issued by the City only to a Depository or its nominee as
registered owner, with the certificates deposited with and maintained in the custody of the
Depository or its designated agent. The book entry maintained by others than the City is
the record that identifies the owners of beneficial interests in those Bonds and that
principal and interest.
"Certificate of Award" means the certificate authorized by Section 6, to be
executed by the Director of Finance, setting forth and determining those terms or other
matters pertaining to the Bonds and their issuance, sale and delivery as this Ordinance
requires or authorizes to be set forth or determined therein.
"Closing Date" means the date of physical delivery of, and payment of the
purchase price for, the Bonds.
"Code" means the Internal Revenue Code of 1986, the Regulations (whether
temporary or final) under that Code or the statutory predecessor of that Code, and any
amendments of, or successor provisions to, the foregoing and any official rulings,
announcements, notices, procedures and judicial determinations regarding any of the
foregoing, all as and to the extent applicable. Unless otherwise indicated, reference to a
Section of the Code includes any applicable successor section or provision and such
applicable Regulations, rulings, announcements, notices, procedures and determinations
pertinent to that Section.
"Continuing Disclosure Agreement" means the Continuing Disclosure Agreement
which shall constitute the continuing disclosure agreement made by the City for the
benefit of the holders and beneficial owners of the Bonds in accordance with the Rule, as
it may be modified from the form on file with the Clerk of Council and executed by the
City Manager and the Director of Finance in accordance with Section 9(c).
"Depository" means any securities depository that is a clearing agency under
federal law operating and maintaining, with its Participants or otherwise, a book entry
system to record ownership of beneficial interests in Bonds or the principal of and interest
on Bonds, and to effect transfers of Bonds, in book entry form, and includes and means
initially The Depository Trust Company (a limited purpose trust company), New York,
New York.
"Interest Payment Dates" means June 1 and December 1 of each year that the
Bonds are outstanding, commencing on the date specified in the Certificate of Award.
"Mandatory Redemption Date" shall have the meaning set forth in Section 3(b).
"Mandatory Sinking Fund Redemption Requirements" shall have the meaning set
forth in Section 3(e)(i).
"Original Purchaser" means the purchaser of the Bonds specified in the
Certificate of Award.
"Participant" means any participant contracting with a Depository under a book
entry system and includes securities brokers and dealers, banks and trust companies, and
clearing corporations.
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"Principal Payment Dates" means June 1 in each of the years from and
including 2013 to and including 2019; provided that the last Principal Payment Date
may be advanced in such manner as to be in the best interest of and financially
advantageous to the City (provided that in no case shall the final Principal Payment
Date exceed the maximum maturity limitation referred to in the preambles hereto),
which determination shall be made by the Director of Finance in the Certificate of
Award.
"Purchase Agreement" means the Bond Purchase Agreement between the City
and the Original Purchaser, as it may be modified from the form on file with the Clerk of
Council and executed by the City Manager and the Director of Finance in accordance
with Section 6.
"Redemption Date" means the date designated by the Director of Finance in the
Certificate of Award as the date on which the Refunded Bonds shall be redeemed in
accordance with Section 10, provided that such Redemption Date shall be no later than
ninety (90) days following the Closing Date.
"Registrar Agreement" means the Bond Registrar Agreement between the City
and the Bond Registrar, as it may be modified from the form on file with the Clerk of
Council and executed by the City Manager and the Director of Finance in accordance
with Section 4.
"Regulations" means Treasury Regulations issued pursuant to the Code or to the
statutory predecessor of the Code.
"Rule" means Rule 15c2 -12 prescribed by the SEC pursuant to the Securities
Exchange Act of 1934.
"SEC' means the Securities and Exchange Commission.
"Serial Bonds" means those Bonds designated as such and maturing on the dates
set forth in
the Certificate of Award, bearing interest payable on each hnterest Payment Date and not
subject to mandatory sinking fund redemption.
"Term Bonds" means those Bonds designated as such and maturing on the date or
dates set forth in the Certificate of Award, bearing interest payable on each Interest
Payment Date and subject to mandatory sinking fund redemption.
The captions and headings in this Ordinance are solely for convenience of
reference and in no way define, limit or describe the scope or intent of any Sections,
subsections, paragraphs, subparagraphs or clauses hereof. Reference to a Section means a
section of this Ordinance unless otherwise indicated.
Section 2. Authorized Principal Amount and Purpose: Application of Proceeds This
Council determines that it is necessary and in the best interest of the City to issue bonds of
this City in the maximum principal amount of $4,240,000 (the "Bonds ") for the purpose
of paying the costs of currently refunding the City's Avery- Muirfield Drive Interchange
Improvement Note, Series 1999 which was originally issued for the purpose of paying
costs of improving the vehicular transportation system in the City by modifying the
Avery- Muirfield Drive interchange, including deck widening and ramp widening; the
widening of Avery- Muirfield from the interchange to Perimeter Drive, adding one lane in
each direction; adding a lane from Perimeter Drive to Post Road; and installing a closed
loop signal system, together with all necessary appurtenances (the "Improvement"). The
Bonds shall be issued pursuant to Chapter 133 of the Ohio Revised Code, the Charter of
the City, this Ordinance and the Certificate of Award.
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Ordinance No. Passed . 20
The aggregate principal amount of Bonds to be issued shall not exceed the
maximum principal amount specified in this Section 2 and shall be an amount determined
by the Director of Finance in the Certificate of Award to be the aggregate principal
amount of Bonds that is required to be issued at this time for the purpose stated in this
Section 2, taking into account the costs of refunding the Refunded Note, other City
monies available for the purpose, and the estimated financing costs.
The proceeds from the sale of the Bonds received by the City (or withheld by the
Original Purchaser on behalf of the City) shall be paid into the proper fund or funds, and
those proceeds are hereby appropriated and shall be used for the purpose for which the
Bonds are being issued, including without limitation but only to the extent not paid by
others, the payment of the costs of issuing and servicing the Bonds, printing and delivery
of the Bonds, legal services including obtaining the approving legal opinion of bond
counsel, any financial advisor, paying agent, rating agency fees and expenses, any fees or
premiums relating to municipal bond insurance or other security arrangements determined
necessary by the Director of Finance, and all other financing costs (as defined in Section
133.01 of the Ohio Revised Code) and costs incurred incidental to those purposes. The
Certificate of Award and the Purchase Agreement may authorize the Original Purchaser
to withhold certain proceeds from the purchase price of the Bonds to provide for the
payment of financing costs related to the Bonds on behalf of the City. Any portion of
those proceeds received by the City representing premium (after payment of any
financing costs identified in the Certificate of Award) shall be used to pay costs of
refunding the Refunded Note and/or be paid into the Bond Retirement Fund. Any portion
of those proceeds received by the City representing accrued interest shall be paid into the
Bond Retirement Fund.
Section 3. Denominations: Dating: Princinal and Interest Pavment and Redemption
Provisions The Bonds shall be issued in one lot and only as fully registered bonds, in
Authorized Denominations, but in no case as to a particular maturity date exceeding the
principal amount maturing on that date. The Bonds shall be dated as provided in the
Certificate of Award; provided that their dated date shall not be more than sixty (60) days
prior to the Closing Date.
(a) Interest Rates and Payment Dates The Bonds shall bear interest at the rate
or rates per year (computed on the basis of a 360 day year consisting of 12 30 -day
months) as shall be determined by the Director of Finance, subject to subsection (c) of this
Section, in the Certificate of Award. Interest on the Bonds shall be payable at such rate or
rates on the Interest Payment Dates until the principal amount has been paid or provided
for. The Bonds shall bear interest from the most recent date to which interest has been
paid or provided for or, if no interest has been paid or provided for, from their date.
(b) Principal Payment Schedule The Bonds shall mature or be payable
pursuant to Mandatory Sinking Fund Redemption Requirements on the Principal Payment
Dates in principal amounts as shall be determined by the Director of Finance, subject to
subsection (c) of this Section, in the Certificate of Award, which determination shall be
in the best interest of and financially advantageous to the City.
Consistent with the foregoing and in accordance with the determination of the best
interest of and financial advantages to the City, the Director of Finance shall specify in the
Certificate of Award (i) the aggregate principal amount of Bonds to be issued as Serial
Bonds, the Principal Payment Date or Dates on which those Bonds shall be stated to
mature and the principal amount thereof that shall be stated to mature on each such
Principal Payment Date and (ii) the aggregate principal amount of Bonds to be issued as
Term Bonds, the Principal Payment Date or Dates on which those Bonds shall be stated to
mature, the principal amount thereof that shall be stated to mature on each such Principal
Payment Date, the Principal Payment Date or Dates on which Term Bonds shall be
subject to mandatory sinking fund redemption (each a "Mandatory Redemption Date ")
and the principal amount thereof that shall be payable pursuant to Mandatory Sinking
Fund Redemption Requirements on each Mandatory Redemption Date.
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(c) Conditions for Establishment of Interest Rates and Principal Payment
Dates and Amounts The rate or rates of interest per year to be borne by the Bonds and
the principal amount of Bonds maturing or payable pursuant to Mandatory Sinking Fund
Redemption Requirements on each Principal Payment Date, shall be such as to
demonstrate a net present value savings to the City due to the refunding of the Refunded
Note, after taking into account all expenses related to that refunding and the issuance of
the Bonds.
(d) Payment of Debt Charges The debt charges on the Bonds shall be
payable in lawful money of the United States of America without deduction for the
services of the Bond Registrar as paying agent. Principal of and any premium on the
Bonds shall be payable when due upon presentation and surrender of the Bonds at the
designated corporate trust office of the Bond Registrar. Interest on a Bond shall be paid
on each Interest Payment Date by check or draft mailed to the person in whose name the
Bond was registered, and to that person's address appearing, on the Bond Register at the
close of business on the 15 day of the calendar month next preceding that Interest
Payment Date. Notwithstanding the foregoing, if and so long as the Bonds are issued in a
book entry system, principal of and interest and any premium on the Bonds shall be
payable in the manner provided in any agreement entered into by the Director of Finance,
in the name and on behalf of the City, in connection with the book entry system.
(e) Redemption Provisions The Bonds shall be subject to redemption prior to
stated maturity as follows:
(i) Mandatory Sinking Fund Redemption of Term Bonds If any of
the Bonds are issued as Term Bonds, the Term Bonds shall be subject to
mandatory redemption in part by lot and be redeemed pursuant to mandatory
sinking fund redemption requirements, at a redemption price of 100% of the
principal amount redeemed, plus accrued interest to the redemption date, on the
applicable Mandatory Redemption Dates and in the principal amounts payable on
those Dates, for which provision is made in the Certificate of Award (such Dates
and amounts being referred to as the "Mandatory Sinking Fund Redemption
Requirements").
The aggregate of the moneys to be deposited with the Bond Registrar for
payment of principal of and interest on any Term Bonds on each Mandatory
Redemption Date shall include an amount sufficient to redeem on that Date the
principal amount of Term Bonds payable on that Date pursuant to the Mandatory
Sinking Fund Redemption Requirements (less the amount of any credit as
hereinafter provided).
The City shall have the option to deliver to the Bond Registrar for
cancellation Term Bonds in any aggregate principal amount and to receive a credit
against the then current or any subsequent Mandatory Sinking Fund Redemption
Requirement (and corresponding mandatory redemption obligation) of the City, as
specified by the Director of Finance, for Term Bonds stated to mature on the same
Principal Payment Date and bearing interest at the same rate as the Term Bonds so
delivered. That option shall be exercised by the City on or before the 45
preceding any Mandatory Redemption Date with respect to which the City wishes
to obtain a credit, by furnishing the Bond Registrar a certificate, signed by the
Director of Finance, setting forth the extent of the credit to be applied with respect
to the then current or any subsequent Mandatory Sinking Fund Redemption
Requirement for Term Bonds stated to mature on the same Principal Payment
Date and bearing interest at the same rate as the Term Bonds so delivered. If the
certificate is not timely famished to the Bond Registrar, the current Mandatory
Sinking Fund Redemption Requirement (and corresponding mandatory
redemption obligation) shall not be reduced. A credit against the then current or
any subsequent Mandatory Sinking Fund Redemption Requirement (and
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corresponding mandatory redemption obligation), as specified by the Director of
Finance, also shall be received by the City for any Term Bonds which prior
thereto have been redeemed (other than through the operation of the applicable
Mandatory Sinking Fund Redemption Requirements) or purchased for
cancellation and canceled by the Bond Registrar, to the extent not applied
theretofore as a credit against any Mandatory Sinking Fund Redemption
Requirement, for Term Bonds stated to mature on the same Principal Payment
Date and bearing interest at the same rate as the Term Bonds so redeemed or
purchased and canceled.
Each Term Bond so delivered, or previously redeemed, or purchased and
canceled, shall be credited by the Bond Registrar at 100% of the principal amount
thereof against the then current or subsequent Mandatory Sinking Fund
Redemption Requirements (and corresponding mandatory redemption
obligations), as specified by the Director of Finance, for Term Bonds stated to
mature on the same Principal Payment Date and bearing interest at the same rate
as the Term Bonds so delivered, redeemed or purchased and canceled.
(ii) Optional Redemption The Bonds of the maturities and interest
rates specified in the Certificate of Award (if any are so specified) shall be subject
to optional redemption by and at the sole option of the City, in whole or in part in
integral multiples of $5,000, on the dates and at the redemption prices (expressed
as a percentage of the principal amount to be redeemed), plus accrued interest to
the redemption date, to be determined by the Director of Finance in the Certificate
of Award; provided that the redemption price for any optional redemption date
shall not be greater than 103 %.
If optional redemption of Term Bonds at a redemption price exceeding
100% of the principal amount to be redeemed is to take place as of any Mandatory
Redemption Date applicable to those Term Bonds, the Term Bonds, or portions
thereof, to be redeemed optionally shall be selected by lot prior to the selection by
lot of the Term Bonds of the same maturity (and interest rate within a maturity if
applicable) to be redeemed on the same date by operation of the Mandatory
Sinking Fund Redemption Requirements. Bonds to be redeemed pursuant to this
paragraph shall be redeemed only upon written notice from the Director of
Finance to the Bond Registrar, given upon the direction of the City by passage of
an ordinance or adoption of a resolution. That notice shall specify the redemption
date and the principal amount of each maturity (and interest rate within a maturity
if applicable) of Bonds to be redeemed, and shall be given at least 45 days prior to
the redemption date or such shorter period as shall be acceptable to the Bond
Registrar.
(iii) Partial Redemption If fewer than all of the outstanding Bonds are
called for optional redemption at one time and Bonds of more than one maturity
(or interest rate within a maturity if applicable) are then outstanding, the Bonds
that are called shall be Bonds of the maturity or maturities and interest rate or rates
selected by the City. If fewer than all of the Bonds of a single maturity (or interest
rate within a maturity if applicable) are to be redeemed, the selection of Bonds of
that maturity (or interest rate within a maturity if applicable) to be redeemed, or
portions thereof in amounts of $5,000 or any integral multiple thereof, shall be
made by the Bond Registrar by lot in a manner determined by the Bond Registrar.
In the case of a partial redemption of Bonds by lot when Bonds of denominations
greater than $5,000 are then outstanding, each $5,000 unit of principal thereof
shall be treated as if it were a separate Bond of the denomination of $5,000. If it is
determined that one or more, but not all, of the $5,000 units of principal amount
represented by a Bond are to be called for redemption, then, upon notice of
redemption of a $5,000 unit or units, the registered owner of that Bond shall
surrender the Bond to the Bond Registrar (A) for payment of the redemption price
of the $5,000 unit or units of principal amount called for redemption (including,
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without limitation, the interest accrued to the date fixed for redemption and any
premium), and (B) for issuance, without charge to the registered owner, of a new
Bond or Bonds of any Authorized Denomination or Denominations in an
aggregate principal amount equal to the unmatured and unredeemed portion of,
and bearing interest at the same rate and maturing on the same date as, the Bond
surrendered.
(iv) Notice of Redemption The notice of the call for redemption of
Bonds shall identify (A) by designation, letters, numbers or other distinguishing
marks, the Bonds or portions thereof to be redeemed, (B) the redemption price to
be paid, (C) the date fixed for redemption, and (D) the place or places where the
amounts due upon redemption are payable. The notice shall be given by the Bond
Registrar on behalf of the City by mailing a copy of the redemption notice by first -
class mail, postage prepaid, at least 30 days prior to the date fixed for redemption,
to the registered owner of each Bond subject to redemption in whole or in part at
the registered owner's address shown on the Bond Register maintained by the
Bond Registrar at the close of business on the 15'" day preceding that mailing.
Failure to receive notice by mail or any defect in that notice regarding any Bond,
however, shall not affect the validity of the proceedings for the redemption of any
Bond.
(v) Payment of Redeemed Bonds In the event that notice of
redemption shall have been given by the Bond Registrar to the registered owners
as provided above, there shall be deposited with the Bond Registrar on or prior to
the redemption date, moneys that, in addition to any other moneys available
therefor and held by the Bond Registrar, will be sufficient to redeem at the
redemption price thereof, plus accrued interest to the redemption date, all of the
redeemable Bonds for which notice of redemption has been given. Notice having
been mailed in the manner provided in the preceding paragraph hereof, the Bonds
and portions thereof called for redemption shall become due and payable on the
redemption date, and, subject to the provisions of Sections 3(d) and 5, upon
presentation and surrender thereof at the place or places specified in that notice,
shall be paid at the redemption price, plus accrued interest to the redemption date.
If moneys for the redemption of all of the Bonds and portions thereof to be
redeemed, together with accrued interest thereon to the redemption date, are held
by the Bond Registrar on the redemption date, so as to be available therefor on
that date and, if notice of redemption has been deposited in the mail as aforesaid,
then from and after the redemption date those Bonds and portions thereof called
for redemption shall cease to bear interest and no longer shall be considered to be
outstanding. If those moneys shall not be so available on the redemption date, or
that notice shall not have been deposited in the mail as aforesaid, those Bonds and
portions thereof shall continue to bear interest, until they are paid, at the same rate
as they would have borne had they not been called for redemption. All moneys
held by the Bond Registrar for the redemption of particular Bonds shall be held in
trust for the account of the registered owners thereof and shall be paid to them,
respectively, upon presentation and surrender of those Bonds; provided that any
interest earned on the moneys so held by the Bond Registrar shall be for the
account of and paid to the City to the extent not required for the payment of the
Bonds called for redemption.
Section 4. Execution and Authentication of Bonds; Appointment of Bond Registrar The
Bonds shall be signed by the City Manager and the Director of Finance, in the name of
the City and in their official capacities; provided that either or both of those signatures
may be a facsimile. The Bonds shall be issued in the Authorized Denominations and
numbers as requested by the Original Purchaser and approved by the Director of Finance,
shall be numbered as determined by the Director of Finance in order to distinguish each
Bond from any other Bond, and shall express upon their faces the purpose, in summary
terns, for which they are issued and that they are issued pursuant to Chapter 133 of the
Ohio Revised Code, the Charter of the City, this Ordinance and the Certificate of Award.
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The Director of Finance is hereby authorized to designate in the Certificate of
Award a bank or trust company authorized to do business in the State of Ohio to act as the
initial Bond Registrar. The City Manager and the Director of Finance shall sign and
deliver, in the name and on behalf of the City, the Registrar Agreement between the City
and the Bond Registrar, in substantially the form as is now on file with the Clerk of
Council. The Registrar Agreement is approved, together with any changes or
amendments that are not inconsistent with this Ordinance and not substantially adverse to
the City and that are approved by the City Manager and the Director of Finance on behalf
of the City, all of which shall be conclusively evidenced by the signing of the Registrar
Agreement or amendments thereto. The Director of Finance shall provide for the
payment of the services rendered and for reimbursement of expenses incurred pursuant to
the Registrar Agreement, except to the extent paid or reimbursed by the Original
Purchaser in accordance with the Certificate of Award and the Purchase Agreement, from
the proceeds of the Bonds to the extent available and then from other money lawfully
available and appropriated or to be appropriated for that purpose.
No Bond shall be valid or obligatory for any purpose or shall be entitled to any
security or benefit under the Bond Proceedings unless and until the certificate of
authentication printed on the Bond is signed by the Bond Registrar as authenticating
agent. Authentication by the Bond Registrar shall be conclusive evidence that the Bond
so authenticated has been duly issued, signed and delivered under, and is entitled to the
security and benefit of, the Bond Proceedings. The certificate of authentication may be
signed by any authorized officer or employee of the Bond Registrar or by any other
person acting as an agent of the Bond Registrar and approved by the Director of Finance
on behalf of the City. The same person need not sign the certificate of authentication on
all of the Bonds.
Section 5. Registration; Transfer and Exchange; Book Entry System
(a) Bond Register So long as any of the Bonds remain outstanding, the City
will cause the Bond Registrar to maintain and keep the Bond Register at its designated
corporate trust office. Subject to the provisions of Sections 3(d) and 9(c), the person in
whose name a Bond is registered on the Bond Register shall be regarded as the absolute
owner of that Bond for all purposes of the Bond Proceedings. Payment of or on account
of the debt charges on any Bond shall be made only to or upon the order of that person;
neither the City nor the Bond Registrar shall be affected by any notice to the contrary, but
the registration may be changed as provided in this Section. All such payments shall be
valid and effectual to satisfy and discharge the City's liability upon the Bond, including
interest, to the extent of the amount or amounts so paid.
(b) Transfer and Exchange Any Bond may be exchanged for Bonds of any
Authorized Denomination upon presentation and surrender at the designated corporate
trust office of the Bond Registrar, together with a request for exchange signed by the
registered owner or by a person legally empowered to do so in a form satisfactory to the
Bond Registrar. A Bond may be transferred only on the Bond Register upon presentation
and surrender of the Bond at the designated corporate trust office of the Bond Registrar
together with an assignment signed by the registered owner or by a person legally
empowered to do so in a form satisfactory to the Bond Registrar. Upon exchange or
transfer the Bond Registrar shall complete, authenticate and deliver a new Bond or Bonds
of any Authorized Denomination or Denominations requested by the owner equal in the
aggregate to the unrnatured principal amount of the Bond surrendered and bearing interest
at the same rate and maturing on the same date.
If manual signatures on behalf of the City are required, the Bond Registrar shall
undertake the exchange or transfer of Bonds only after the new Bonds are signed by the
authorized officers of the City. In all cases of Bonds exchanged or transferred, the City
shall sign and the Bond Registrar shall authenticate and deliver Bonds in accordance with
the provisions of the Bond Proceedings. The exchange or transfer shall be without charge
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to the owner, except that the City and Bond Registrar may make a charge sufficient to
reimburse them for any tax or other governmental charge required to be paid with respect
to the exchange or transfer. The City or the Bond Registrar may require that those
charges, if any, be paid before the procedure is begun for the exchange or transfer. All
Bonds issued and authenticated upon any exchange or transfer shall be valid obligations
of the City, evidencing the same debt, and entitled to the same security and benefit under
the Bond Proceedings as the Bonds surrendered upon that exchange or transfer. Neither
the City nor the Bond Registrar shall be required to make any exchange or transfer of (i)
Bonds then subject to call for redemption between the 15 day preceding the mailing of
notice of Bonds to be redeemed and the date of that mailing, or (ii) any Bond selected for
redemption, in whole or in part.
(c) Book Entry System Notwithstanding any other provisions of this
Ordinance, if the Director of Finance determines in the Certificate of Award that it is in
the best interest of and financially advantageous to the City, the Bonds may be issued in
book entry form in accordance with the following provisions of this Section.
The Bonds may be issued to a Depository for use in a book entry system and, if
and as long as a book entry system is utilized: (i) the Bonds may be issued in the form of a
single, fully registered Bond representing each maturity, and, if applicable, each interest
rate within a maturity, and registered in the name of the Depository or its nominee, as
registered owner, and immobilized in the custody of the Depository or its designated
agent for that purpose, which may be the Bond Registrar; (ii) the beneficial owners of
Bonds in book entry form shall have no right to receive Bonds in the form of physical
securities or certificates; (iii) ownership of beneficial interests in book entry form shall be
shown by book entry on the system maintained and operated by the Depository and its
Participants, and transfers of the ownership of beneficial interests shall be made only by
book entry by the Depository and its Participants; and (iv) the Bonds as such shall not be
transferable or exchangeable, except for transfer to another Depository or to another
nominee of a Depository, without further action by the City.
If any Depository determines not to continue to act as a Depository for the Bonds
for use in a book entry system, the Director of Finance may attempt to establish a
securities depository/book entry relationship with another qualified Depository. If the
Director of Finance does not or is unable to do so, the Director of Finance, after making
provision for notification of the beneficial owners by the then Depository and any other
arrangements deemed necessary, shall permit withdrawal of the Bonds from the
Depository, and shall cause Bond certificates in registered form and Authorized
Denominations to be authenticated by the Bond Registrar and delivered to the assignees
of the Depository or its nominee, all at the cost and expense (including any costs of
printing), if the event is not the result of the City action or inaction, of those persons
requesting such issuance.
The Director of Finance is hereby authorized and directed, to the extent necessary
or required, to enter into any agreements, in the name and on behalf of the City, that the
Director of Finance determines to be necessary in connection with a book entry system for
the Bonds.
Section 6. Sale of the Bonds to the Orieinal Purchaser The Director of Finance is
authorized to sell the Bonds at private sale to the Original Purchaser at a purchase price,
not less than 97% of the aggregate principal amount thereof, as shall be determined by the
Director of Finance in the Certificate of Award, plus accrued interest (if any) on the
Bonds from their date to the Closing Date, and shall be awarded by the Director of
Finance with and upon such other terms as are required or authorized by this Ordinance to
be specified in the Certificate of Award, in accordance with law, the provisions of this
Ordinance and the Purchase Agreement. The Director of Finance is authorized, if it is
determined to be in the best interest of the City, to combine the issue of Bonds with one or
more other bond issues of the City into a consolidated bond issue pursuant to Section
133.30(B) of the Ohio Revised Code in which case a single Certificate of Award may be
RECORD OF ORDINANCES
46 -12 (Amended)
Ordinance No.
Page 10 of 14
Passed 20
utilized for the consolidated bond issue if appropriate and consistent with the terms of this
Ordinance.
The Director of Finance shall sign and deliver the Certificate of Award and shall
cause the Bonds to be prepared and signed and delivered, together with a true transcript of
proceedings with reference to the issuance of the Bonds, to the Original Purchaser upon
payment of the purchase price.
The City Manager and the Director of Finance shall sign and deliver, in the name
and on behalf of the City, the Purchase Agreement between the City and the Original
Purchaser, in substantially the form as is now on file with the Clerk of Council, providing
for the sale to, and the purchase by, the Original Purchaser of the Bonds. The Purchase
Agreement is approved, together with any changes or amendments that are not
inconsistent with this Ordinance and not substantially adverse to the City and that are
approved by the City Manager and the Director of Finance on behalf of the City, all of
which shall be conclusively evidenced by the signing of the Purchase Agreement or
amendments thereto.
The Mayor, the City Manager, the Director of Finance, the Director of Law, the
Clerk of Council and other City officials, as appropriate, each are 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. Provisions for Tax Lew There shall be levied on all the taxable property in
the City, in addition to all other taxes, a direct tax annually during the period the Bonds
are outstanding in an amount sufficient to pay the debt charges on the Bonds when due,
which tax shall not be less than the interest and sinking fund tax required by Section 11 of
Article XII of the Ohio Constitution. 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 Bonds
when and as the same fall due.
In each year to the extent money from the municipal income tax is available for
the payment of the debt charges on the Bonds and is appropriated for that purpose, the
amount of the tax shall be reduced by the amount of such money so available and
appropriated with the covenant hereinafter set forth. To the extent necessary, the debt
charges on the Bonds shall be paid from municipal income taxes lawfully available
therefor under the Constitution and the laws of the State of Ohio, and the Charter of the
City; and the City hereby covenants, subject and pursuant to such authority, including
particularly Section 133.05(B)(7) of the Ohio Revised Code, to appropriate annually from
such municipal income taxes such amount as is necessary to meet such annual debt
charges.
Nothing in the preceding paragraph in any way diminishes the irrevocable pledge
of the full faith and credit and general property taxing power of the City to the prompt
payment of the debt charges on the Bonds.
Section 8. Federal Tax Considerations The City covenants that it will use, and will
restrict the use and investment of, the proceeds of the Bonds in such manner and to such
extent as may be necessary so that (a) the Bonds will not (i) constitute private activity
bonds or arbitrage bonds under Sections 141 or 148 of the Code or (ii) be treated other
than as bonds the interest on which is excluded from gross income under Section 103 of
the Code, and (b) the interest on the Bonds will not be an item of tax preference under
Section 57 of the Code.
RECORD OF ORDINANCES
Dayton Legal Blank, Inc.
Ordinance No
46 -12 (Amended)
Page 11 of 14
Passed 20
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 Bonds 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 Bonds to the
governmental purpose of the borrowing, (ii) restrict the yield on investment property, (iii)
make timely and adequate payments to the federal government, (iv) 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 exclusion of that interest under the Code.
The Director of Finance or any other officer of the City having responsibility for
issuance of the Bonds 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
Bonds 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 available under Section
148 of the Code, for the purpose of assuring, enhancing or protecting favorable tax
treatment or status of the Bonds 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 with respect to the Bonds, 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 with respect to the
Bonds, 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 Bonds, and
(c) to give one or more appropriate certificates of the City, for inclusion in the transcript
of proceedings for the Bonds, setting forth the reasonable expectations of the City
regarding the amount and use of all the proceeds of the Bonds, 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 Bonds. The Director of Finance or
any other officer of the City having responsibility for issuance of the Bonds is specifically
authorized to designate the Bonds as "qualified tax - exempt obligations" if such
designation is applicable and desirable, and to make any related necessary representations
and covenants.
Each covenant made in this section with respect to the Bonds is also made with
respect to all issues any portion of the debt service on which is paid from proceeds of the
Bonds (and, if different, the original issue and any refunding issues in a series of
refundings), to the extent such compliance is necessary to assure exclusion of interest on
the Bonds from gross income for federal income tax purposes, and the officers identified
above are authorized to take actions with respect to those issues as they are authorized in
this section to take with respect to the Bonds.
Section 9. Official Statement, Rating, Bond Insurance and Continuing Disclosure
(a) Primary Offering Disclosure -- Official Statement The City Manager and
the Director of Finance are each authorized and directed, on behalf of the City and in
their official capacities, to (i) prepare or cause to be prepared, and make or authorize
modifications, completions or changes of or supplements to, a disclosure document in
the form of an official statement relating to the original issuance of the Bonds, (ii)
determine, and to certify or otherwise represent, when the official statement is to be
"deemed final" (except for permitted omissions) by the City as of its date or is a final
official statement for purposes of paragraph (b) of the Rule, (iii) use and distribute, or
authorize the use and distribution of those official statements and any supplements
thereto in connection with the original issuance of the Bonds, and (iv) complete and
sign those official statements and any supplements thereto as so approved, together
with such certificates, statements or other documents in connection with the finality,
RECORD OF ORDINANCES
46 -12 (Amended)
Ordinance No.
Page 12 of 14
Passed 20
accuracy and completeness of those official statements and any supplements, as they
may deem necessary or appropriate.
(b) Application for Rating or Bond Insurance If, in the judgment of the
Director of Finance, the filing of an application for (i) a rating on the Bonds by one or
more nationally - recognized rating agencies, or (ii) a policy of insurance from a
company or companies to better assure the payment of principal of and interest on the
Bonds, is in the best interest of and financially advantageous to this City, the Director
of Finance is authorized to prepare and submit those applications, to provide to each
such agency or company such information as may be required for the purpose, and to
provide further for the payment of the cost of obtaining each such rating or policy,
except to the extent otherwise paid in accordance with the Purchase Agreement, from
the proceeds of the Bonds to the extent available and otherwise from any other funds
lawfully available and that are appropriated or shall be appropriated for that purpose.
The Director of Finance is hereby authorized, to the extent necessary or required, to
enter into any agreements, in the name of and on behalf of the City, that the Director of
Finance determines to be necessary in connection with the obtaining of that bond
insurance.
(c) Agreement to Provide Continuing Disclosure For the benefit of the
holders and beneficial owners from time to time of the Bonds, the City agrees to provide
or cause to be provided such financial information and operating data, audited financial
statements and notices of the occurrence of certain events, in such manner as may be
required for purposes of the Rule. The City Manager and the Director of Finance are each
authorized and directed to complete, sign and deliver the Continuing Disclosure
_ Agreement, in the name and on behalf of the City, in substantially the form as is now on
file with the Clerk of Council. The Continuing Disclosure Agreement is approved,
together with any changes or amendments that are not inconsistent with this Ordinance
and not substantially adverse to the City and that are approved by the City Manager and
the Director of Finance on behalf of the City, all of which shall be conclusively evidenced
by the signing of the Continuing Disclosure Agreement or amendments thereto.
The Director of Finance is further authorized and directed to establish procedures
in order to ensure compliance by the City with its Continuing Disclosure Agreement,
including timely provision of information and notices as described above. Prior to
making any filing required under the Rule, the Director of Finance shall consult with and
obtain legal advice from, as appropriate, the Director of Law and bond or other qualified
independent special counsel selected by the City. The Director of Finance, acting in the
name and on behalf of the City, shall be entitled to rely upon any such legal advice in
determining whether a filing should be made. The performance by the City of its
Continuing Disclosure Agreement shall be subject to the annual appropriation of any
funds that may be necessary to perform it.
(d) Financing Costs The expenditure of the amounts necessary to pay any
financing costs (as defined in Section 133.01 of the Ohio Revised Code) in connection
with the Bonds, to the extent not paid by the Original Purchaser in accordance with the
Purchase Agreement, is authorized and approved, and the Director of Finance is
authorized to provide for the payment of any such amounts and costs from the proceeds of
the Bonds to the extent available and otherwise from any other funds lawfully available
that are appropriated or shall be appropriated for that purpose.
Section 10. Call for Redemption Acting pursuant to the 1999 Note Ordinance, which
authorized the Refunded Note, the Refunded Note is hereby called for redemption on the
Redemption Date, at the redemption price of 100% of the principal amount thereof, and
the Director of Finance is hereby authorized and directed to cause that Refunded Note to
be called for redemption on the Redemption Date, and arrange for the notice of
redemption to be given in accordance with the applicable provisions of the 1999 Note
Ordinance.
RECORD OF ORDINANCES
Inc.
Ordinance No.
46 -12 (Amended)
Page 13 of 14
Passed 20
In order to provide for the payment of the principal of and interest on the
Refunded Note to be called for redemption on the Redemption Date, the City covenants
and agrees with the owners of the Refunded Note that the City will, on the date of
delivery of the Bonds, deposit proceeds of the Bonds into the City's Bond Retirement
Fund, which, together with monies already on deposit in the Bond Retirement Fund, will
be an amount sufficient, without further reinvestment, to pay in full the principal of and
interest on the Refunded Note to be called for redemption on the Redemption Date. The
City covenants and agrees with the owner of the Refunded Note that the City will take all
steps required by the terms of this Ordinance and Section 133.34 of the Ohio Revised
Code to carry out such payments so that the Refunded Note is not deemed to be
outstanding.
Section 11. Bond Counsel The legal services of the law firm of Squire Sanders (US)
LLP are hereby retained. Those legal services shall be in the nature of legal advice and
recommendations as to the documents and the proceedings in connection with the
authorization, sale and issuance of the Bonds and rendering at delivery related legal
opinions. In providing those legal services, as an independent contractor and in an
attorney - client relationship, that fine shall not exercise any administrative discretion on
behalf of this City in the formulation of public policy, expenditure of public funds,
enforcement of laws, rules and regulations of the State, any county or municipal
corporation or of this City, or the execution of public trusts. For those legal services
that firm shall be paid just and reasonable compensation and shall be reimbursed for
actual out -of- pocket expenses incurred in providing those legal services. The Director
of Finance is authorized and directed to make appropriate certification as to the
availability of funds for those fees and any reimbursement and to issue an appropriate
order for their timely payment as written statements are submitted by that firm.
Section 12. Financial Advisor The services of Prism Municipal Advisors, LLC, as
financial advisor, are hereby retained. The financial advisory services shall be in the
nature of financial advice and recommendations in connection with the issuance and
sale of the Bonds. In rendering those financial advisory services, as an independent
contractor, that firm shall not exercise any administrative discretion on behalf of the
City in the formulation of public policy, expenditure of public funds, enforcement of
laws, rules and regulations of the State, the City or any other political subdivision, or
the execution of public trusts. That firm shall be paid just and reasonable
compensation for those financial advisory services and shall be reimbursed for the
actual out -of pocket expenses it incurs in rendering those financial advisory services.
The Director of Finance is authorized and directed to make appropriate certification as
to the availability of funds for those fees and any reimbursement and to issue an
appropriate order for their timely payment as written statements are submitted by that
firm.
Section 13. Certification and Delivery of Ordinance and Certificate of Award The
Clerk of Council is directed to promptly deliver a certified copy of this Ordinance and
an executed copy of the Certificate of Award to the County Auditors of Delaware
County, Ohio, Franklin County, Ohio and Union County, Ohio.
Section 14. Satisfaction of Conditions for Bond Issuance This Council determines that
all acts and conditions necessary to be performed by the City or to have been met
precedent to and in the issuing of the Bonds 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 Bonds 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 7) of the City are pledged for the timely payment of the
debt charges on the Bonds; that no statutory or constitutional limitation of indebtedness or
taxation will have been exceeded in the issuance of the Bonds; and that the Bonds are
being authorized and issued pursuant to Chapter 133 of the Ohio Revised Code, the
Charter of the City, this Ordinance, the Certificate of Award and other authorizing
provisions of law.
RECORD OF ORDINANCES
No
46 -12 (Amended)
Page 14 of 14
Passed 20_
Section 15. Compliance with Open Meeting Requirements This Council finds and
determines that all formal actions of this Council and any of its committees concerning
and relating to the passage of this Ordinance were taken in an open meeting of this
Council or its committees and that all deliberations of this Council and of any committees
that resulted in those formal actions were in meetings open to the public, all in compliance
with the law, including Section 121.22 of the Ohio Revised Code.
Section 16. Effective Date This Ordinance shall be in full force and effect on the
earliest date permitted by law.
Signed:
Mayor, Pr id ig Officer
Attest:
L�. �,zd'_
Clerk of Council
Passed: J -U-4 u5T 0 1 2012
Effective: 2012
SUPPLEMENTAL
FISCAL OFFICER'S CERTIFICATE
To the City Council of the City of Dublin, Ohio:
As fiscal officer of the City of Dublin, Ohio, and supplementing the fiscal officer's
certificate delivered in connection with the note proposed to be refunded, I certify in connection
with your proposed issue of bonds in the maximum principal amount of $4,240,000 (the
"Bonds ") for the purpose of paying the costs of currently refunding the City's Avery- Muirfield
Drive Interchange Improvement Note, Series 1999 which was originally issued for the purpose of
paying costs of improving the vehicular transportation system in the City by modifying the Avery -
Muirfield Drive interchange, including deck widening and ramp widening; the widening of Avery-
Muirfield from the interchange to Perimeter Drive, adding one lane in each direction; adding a lane
from Perimeter Drive to Post Road; and installing a closed loop signal system, together with all
necessary appurtenances (collectively, the "Improvement'), that:
1. The estimated life or period of usefulness of the Improvement is at least five (5)
years.
2. The maximum maturity of the Bonds allocable to refunding the note originally
issued for the purpose described above, calculated in accordance with Sections 133.20 and 133.34
of the Ohio Revised Code, is August 1, 2021.
Dated: June .2:2- , 2012 . aL-
Directot Finance
City of Dublin, Ohio
Office of the City Manager
Emerald Parkway * City of Dublin Pho 614-410-4400 • Fax:b614 --410 -4490 43017 - 1090
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager \`+NNZ�,--
Date: August 2, 2012
Memo
Initiated By: Angel L. Mumma, Deputy City Manager /Director of Finance & Administration
Re: Ordinances 43 -12 through 46 -12 — Providing for the Issuance and Sale of Bonds
Summary
On July 2, 2012, City Council had a first reading of Ordinances 43 -12 through 46 -12, which
provided for the issuance and sale of bonds.
Ordinance 46 -12 provided funding up to $4.24 million to refund the City's 1999 State
Infrastructure Bank (SIB) Loan on the Avery- Muirfield Drive /US 33 Interchange. When the
legislation was initially prepared, information obtained from the Ohio Department of Transportation
related to the outstanding balance on that borrowing was incorporated into the second "Whereas"
paragraph of the bond ordinance. As part of the financial analysis that has been done in
preparation for this refunding, we have discovered that the aggregate payoff amount of the note is
$4,026,563.44. This amount is $9,878.08 lower than the amount listed in the first draft of
Ordinance 46 -12 that Council received.
Ordinance 46 -12 has been amended to reflect this change.
Recommendation
Staff recommends approval of Ordinances 43 -12, 44, 12, 45 -12, and 46 -12 (Amended) at the
second reading /public hearing on August 8, 2012.
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
City of Dublin Phone: 614- 410 -4400 • Fax: 614 -410 -4490
To- Members of Dublin City Council
From: Marsha I. Grigsby, City Manager
Date: June 28, 2012 7
Memo
Initiated By: Angel L. Mumma, Deputy City Manager /Director of Finance & Administration
Re: Ordinances 43 -12 through 46-12 — Providing for the Issuance and Sale of Bonds
Background
As introduced in the June 14, 2012 information only memo to City Council, staff is preparing for
the issuance of bonds to provide revenue to fund a number of projects that were approved in the
2012 — 2016 Capital Improvements Program (CIP). The bonds authorized by Ordinances 43 -12
through 45 -12 will be utilized for the following projects:
Ordinance 43 -12 will provide funding up to $2.7 million for the purpose of improving the
sewer system through sewer lining and manhole rehabilitation. Bond proceeds will be used
to reimburse the Sewer Fund for the advance made in early 2012 for the sewer lining and
repair project that began during that timeframe. Phase I of the project focused mainly on
installing cured in place pipe (CIPP) in the sanitary sewer pipe located on the Muirfield
Village Championship Golf Course. These sanitary sewer pipes were providing a significant
quantity of inflow and infiltration (I & I) into the system and were part of the cause of the
minor system surcharges in that area over the past few years. The cost of this work was
$506,000.
Phase II of the project will focus on installing CIPP in an area predominantly north of Glick
Road. This phase was authorized by City Council on April 9, 2012 with Resolution 18 -12
and the anticipated cost is approximately $1.6 million. This phase is expected to be
complete by the end of November.
Approximately $375,000 in funding will be used to repair a number of sanitary sewer
manholes in accordance to the schedule needed to be in compliance with the "Director's
Final Findings and Orders" issued by the Ohio Environmental Protection Agency. This
project repairs the integrity of the manholes and reduces the amount of I & I entering the
system via the main lines with a focus on the Deer Run sewer shed. Staff anticipates
bidding this component in July 2012.
• Ordinance 44-12 will provide funding up to $2.5 million for the purpose of constructing the
Dublin Road water tower. Proceeds will be used to reimburse the Water Fund for advances
made to the Water Tower Construction Fund for expenses incurred prior to receiving the
bond funds.
Preparation for the construction of the tank began in 2010 with site selection and in 2011
with design and engineering. In July of 2011, 3.824 acres of land were purchased by the
City for $255,640 from the Muirfield Village Golf Club and in the fall of 2011, installation of
Memo re. Ordinances 43 -12 through 46 -12 — Providing for the Issuance and Sale of Bonds
June 28, 2012
Page 2 of 2
the 12 -inch water main to the tank site was initiated at a cost of approximately $486,000.
After a competitive bidding process, City Council accepted the bid from Caldwell Tanks, Inc.
in February 2012 for the construction of the tank, which is expected to begin forthwith.
Ordinance 45 -12 will provide funding up to $2.3 million for the purpose of replacing
approximately 1,300 City -owned street lights with LED light fixtures. Staff will be
evaluating various configurations of LED light fixtures (same fixture currently in use in
Dublin) over the next few months. Once determined, the purchase of the fixtures will be
competitively bid with bid acceptance by City Council anticipated in August. Once
purchased, City staff will install all fixtures, and the replacements are anticipated to be
completed by end of summer 2013.
Staff has also been evaluating the opportunity to refinance existing outstanding bonds. As a
reminder, the City refunded a significant amount of debt in 2009 and, as a result, there are
currently limited opportunities for refunding. However, it has been determined based on current
market interest rates that the opportunity does exist to refinance the City's 1999 State
Infrastructure Bank (SIB) Loan on the Avery- Muirfield Drive /US 33 Interchange. Ordinance 46 -12
will provide funding up to $4.24 million to refund the SIB loan. Based on preliminary debt
schedules run by the City's financial advisor on June 15, 2012, the net present value benefit from
interest rate savings and elimination of administrative fees associated with the SIB loan is
expected to be approximately $230,000, or 6.1 %. The general 'Yule of thumb" is that the present
value savings should be at least 3 to 5 percent.
Overall, the bonds authorized by Ordinances 43 -12 through 46 -12 will be amortized over a 20 -year
period and are currently estimated to have a net interest cost of 2.9 %.
Based on adoption of Ordinances 43 -12 through 46 -12 at the August 8, 2012 meeting, staff would
anticipate scheduling discussions with the rating agencies, Moody's Investors Service and Fitch
Ratings, for mid - August, followed by pricing mid - September, and closing in early October.
Recommendation
Staff recommends approval of Ordinances 43 -12 through 46 -12 at the second reading /public
hearing on August 8, 2012.