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HomeMy WebLinkAbout2011-OR-05 ORDINANCE NO. 2011-OR- 5 An Ordinance of the City of Jeffersonville to amend and supplement Ordinance No. 2009 -OR -44 as heretofore amended and supplemented by Ordinance No. 2010 -OR -29 and Ordinance No. 2010 -OR -29 to authorize the issuance of the City's sewage works revenue bonds for certain brownfield projects and related matters connected therewith, and repealing ordinances inconsistent herewith. WHEREAS, the City of Jeffersonville, Indiana ( "City ") adopted Ordinance No. 2009 - OR-44 ( "2009 Ordinance ") as amended and supplemented by Ordinance No. 2010 -OR -29 and Ordinance No. 2010 -OR -50 (collectively, the "Bond Ordinance ") which authorized sewage works revenue bonds, in multiple series with an aggregate principal amount not to exceed $68,250,000 ("Authorized Project Bonds'), to provide financing for the funding of certain projects as described in the Bond Ordinance, which as the date hereof, the City has issued its 2010 Bonds (each as hereafter defined) as part of the Authorized Project Bonds in an aggregate principal amount of $20,170,000, leaving the remaining principal amount of the Authorized Bond that are not yet issued but remains authorized to be issued pursuant to the Bond Ordinance of $48,080,000 ("Remaining Authorized Bond Amount"); and WHEREAS, the City has outstanding the following sewage works revenue bonds (collectively, "Outstanding Bonds ") authorized by the various prior related ordinances of the City including the Bond Ordinance (the "Authorizing Ordinances "): (i) Sewage Works Revenue Bonds, Series 1999, dated December 30, 1999, now outstanding in the amount of $1,923,188 and maturing annually over a period ending January 1, 2020; (ii) Sewage Works Revenue Bonds, Series 2003, dated December 17, 2003, now outstanding in the amount of $2,365,000 and maturing annually over a period ending January 1, 2024; (iii) Sewage Works Revenue Bonds of' 2005, Series A, dated July 21, 2005, now outstanding in the amount of $6,500,000 and maturing annually over a period ending January 1, 2026; (iv) Sewage Works Revenue Bonds of 2008, dated March 28, 2008, now outstanding in the amount of $9,798,000 and maturing annually over 1558411 a period ending January 1, 2029; (v) Sewage Works Revenue Bonds of 2009, dated August 10, 2009, now outstanding in the amount of $1,399,000 and maturing annually over a period ending January 1, 2030; (vi) Sewage Works Refunding Revenue Bonds of 2009, dated December 30, 2009 ("2009 Refunding Bonds'), now outstanding in the amount of $3,365,000 and maturing annually over a period ending January 1, 2019; (vii) Sewage Works Revenue Bonds of 2010, Series A, dated June 30, 2010 ( "2010A Bonds"), now outstanding in the amount of $2,500,000 and maturing annually over a period ending January 1, 2031; (viii) Sewage Works Revenue Bonds of 2010, Series C -1, dated November 23, 2010 ( "2010A Bonds "), now outstanding in the amount of $4,000,000 and maturing annually over a period ending January 1, 2016 ( "Series C -1 Bonds"); (ix) Sewage Works Revenue Bonds of 2010, Series C -2, dated November 23, 2010 ( "Series C -2 Bonds" and which Series C -2 Bonds and together with the Series C-1 Bonds, collectively, the "2010C Bonds "), now outstanding in the amount of $315,000 and maturing on • January 1, 2012; and (x) Sewage Works Revenue Bonds of 2010, Series B (Taxable Build America Bonds — Direct Pay Option), dated November 23, 2010 ("2010B Bonds" and which 20108 Bonds together with the 2010A Bonds and the 2010C Bonds, collectively, the "2010 Bonds "), now outstanding in the amount of $17,355,000 and maturing annually over a period ending January 1, 2031; which Outstanding Bonds are payable from the Net Revenues (as defined in the respective Authorizing Ordinances) of the Sewage Works and are now outstanding in the aggregate principal amount of $49,520,188 and maturing annually over a period ending January 1, 2031; and WHEREAS, the City has been advised that undertaking certain Brownfield projects will qualify to the City to be eligible under the Indiana SRF Program and/or the Indiana Brownfield Program for an interest rate that is lower than that which would otherwise apply to certain of its Authorized Project Bonds expected to be so sold to the Indiana SRF Program and/or the Indiana - 2 - 1558411 Brownfield Program, thereby allowing City to effectively off -set debt service related to financing such brownfield projects; and WHEREAS, the City has been advised that loans made available by the Indiana Finance Authority from the Indiana SRF Program would be made pursuant to one or more Financial Assistance Agreements and loans made available from the Indiana Brownfield Program would be made pursuant to one or more Brownfield Loan Agreements (each respectively or collectively, "Assistance Agreement(s) "); and WHEREAS, the Common Council of the City ( "Council ") now fords it is necessary and desirable to supplement the projects authorized under the Bonds Ordinance to permit and include the design and the construction of those brownfield improvements and activities described on Exhibit A attached ( "Additional Projects ") and to increase the Remaining Authorized Bond Amount by an additional principal amount of $2,000,000 to provide for the funding of the Additional Projects pursuant to the Bond Ordinance as amended by this ordinance; and NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLF. INDIANA, THAT: Section 1. The Bond Ordinance to the extent not expressly amended hereby is hereby affirmed and the foregoing recitals are hereby incorporated in this Ordinance. Each reference to the SRF Program as contained in the Bond Ordinance shall also be deemed a reference to the Indiana Brownfield Program as the context requires. Each reference to a Financial Assistance Agreement as contained in the Bond Ordinance shall be deemed to be a reference to an Assistance Agreement, which shall be substantially in one of the forms attached hereto as Exhibit B (as the context requires) which forms are (i) are incorporated herein by reference, (ii) are hereby approved by the Common Council, and (iii) the Mayor and Clerk- Treasurer are hereby authorized to execute and deliver the same, and to approve any changes in form or -3 1558411 substance to the Assistance Agreement, which are consistent with the terms of this onlinance, such changes to be conclusively evidenced by its execution including without limitation different loan amounts, different references to the related Bonds, different sourced from which such loan are funded by the Indiana Finance Authority and different parts of the Project to which such loans relate. Section 2. The Bond Ordinance is hereby amended to the effect that the Additional Projects shall be deemed a part of the Project (as defined and authorized in the Bond Ordinance). Section 1 of the 2009 Ordinance, as previously amended, is hereby amended to increase the cost of construction of the Project to an amount not to exceed $70,250,000, plus investment earnings on the bond and BAN proceeds. Section 3. (a) Section 2(a), first paragraph, second sentence, the 2009 Ordinance, as previously amended, is amended as follows: . "The City shall issue its BANS, in one or more series, in an amount not to exceed Seventy Million Two hundred Fifty Thousand Dollars ($70,250,000) to be designated "[Taxable) Sewage Works Bond Anticipation Notes, Series _" (to be completed with the appropriate series designation." (b) The first sentence of Section 2(b) of the 2009 Ordinance, as previously amended, is amended as follows: "The City shall issue (i) its sewage works revenue bonds, in one or more series, to be designated as "Sewage Works Revenue Bonds of " (to be completed with the year in which the bonds are issued and the appropriate series designation, if any) ( "Project Bonds "), in an aggregate principal amount not to exceed Seventy Million Two Hundred Fifty Thousand Dollars ($70,250,000 for the purpose of procuring funds to be applied on the cost of the Project, the payment of costs of issuance, refunding the BANs, if issued, and all other costs related to the Project, including premiums for municipal bond insurance and a debt service reserve surety; and (ii) its "Sewage Works Refunding Revenue Bonds of " (to be completed with the year in which the bonds are issued and the appropriate series designation, if any) ( "Refunding Bonds "), in an aggregate principal amount not to exceed $4,075,000 for the purpose of currently refunding the 1998 Bonds, if economically advantageous, the payment of costs of issuance and all other costs related to the refunding, including premiums for -4 155&411 municipal bond insurance and a debt service reserve surety. The Project Bonds and the Refunding Bonds are collectively referred to as the "Bonds." If it is economically advantageous for the City to refund the 1998 Bonds and the Refunding Bonds are issued, the City shall apply moneys currently held for the payment of debt service on the 1998 Bonds to the refunding as provided herein." Section 4. Following the issuance of the Refunding Bonds and the 2010 Bonds heretofore issued, the Bond Ordinance, as so amended, continues to authorize the issuance of further Authorized Project Bonds not to exceed a Remaining Authorized Bond Amount, each as modified and increased by this ordinance, in the aggregate principal amount of $50,080,000. Section 5. This ordinance shall be in full force and effect from and after its passage and approval by the Mayor. -5 1558411 DC Passed and adopted by the Common Council of the City of Jeffersonville, Indiana this r1 day of 1, �9U.et , 2011. COMMON COUNCIL Presiding Officer Attest: f� ((�� •ii a.p. Id �.QMB U Clerk-' ? r Presented by me to the Mayor of the City of Jeffersonville this I day of `�R uAV , 2011 at �1��� Clerk-' urer Signed and approved by me, the Mayor of the City of Jeffersonville, this a_ day of ,2011at - -_m. a4/ /,, //, ra :yor r -6 1558411 EXHIBIT A DESCRIPTION OF ADDITIONAL PROJECTS Remediation of effects resulting from certain activities and facilities associated with the following properties: A. Property commonly known as 1718 Spring Street, Jeffersonville, IN, which is presently described as an abandoned gasoline service station site. Based on Phase II and Supplemental Phase II ESA's, the subject site has been determined to be impacted by petroleum hydrocarbon contamination. Tank registrations and geophysical surveys indicate that five Underground Storage Tanks (USTs) are present on the subject site. Analytical results from the investigation reported hydrocarbon impact exceeding IDEM Industrial Direct Contact Limits on and adjacent to the subject site. The planned remediation is to first remove the USTs along with impacted soil (exceeding regulatory limits) to be removed and hauled to a landfill. Impacted groundwater will be treated with an oxygen releasing compound to encourage bacteria to reduce the level of contamination in the groundwater. Finally, the groundwater will be monitored quarterly to verify that the remediation has been effective and to obtain IDEM closure on the property by IDEM issuing a letter to the effect that that there is no further remedial action needed on the subject site at such point. B. Property commonly known as 1701 and 2005 Allison Lane, Jeffersonville, 114, which is presently described as a vacant lot and was formerly a gas station. A leaking underground storage tank was reported on this site in 1987, and extensive investigation as well as interim remedial action has taken place on the site already. Additional remediation is needed to prepare the site for redevelopment. The remediation will involve removal of any remaining soil contaminated with petroleum hydrocarbons. In addition, impacted groundwater will be treated with an oxygen releasing compound to encourage bacteria to reduce the level of contamination in the groundwater. Finally, the groundwater will be monitored quarterly to verify that the remediation has been effective and to obtain IDEM closure on the property by IDEM issuing a letter to the effect that that there is no further remedial action needed on the subject site. C. Property commonly known as the CSX property at 9 Street and VFW Boulevard, Jeffersonville, IN, which formerly was a part of a CSX railroad line. Historical railroad operations on this property may have resulted in soil and groundwater contamination on the property. Soil and groundwater impacted by these operations would be remediated to facilitate the redevelopment and reuse of this property. 1558411 EXHIBIT B FORM OF ASSISTANCE AGREEMENTS 1556411