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CAPE ELIZABETH TOWN COUNCIL AGENDA

Regular Meeting # 14-2009

Cape Elizabeth Town Hall

Wednesday, August 26, 2009

7:30 p.m.

Roll Call by the Town Clerk

James S. Rowe, Chairman 127 Oakhurst Road 799-7467 12/2009
David J. Backer 2 Rugosa Way 253-0529 12/2009
Penelope A. Jordan 349 Fowler Road 671-5341 12/2010
Sara W. Lennon 54 Cranbrook Drive 741-5139 12/2009
Paul J. McKenney 5 Katahdin Road 899-0045 12/2010
David S. Sherman, Jr. 74 Hunts Point Road 749-2668 12/2011
Anne E. Swift-Kayatta 14 Stone Bridge Road 767-5754 12/2011

The Pledge of Allegiance to the Flag
Town Council Reports and Correspondence
Citizen Opportunity for Discussion of Items Not on the Agenda

Town Manager’s Report
Review of Minutes of Meeting held August 10, 2009

Item# 127-2009 Appointments Committee Recommendation
The Appointments Committee will recommend citizens to serve on the Municipal Operations Review Committee.

Item# 128-2009 Bond Refunding Resolution
The Town Manager is recommending that callable bonds issued in 1998 and 1999 be refinanced in order to save approximately $675,000 in interest payments between now and 2020. The exact savings will be known upon bids being received on September 29th.

DRAFT MOTION

TOWN OF CAPE ELIZABETH, MAINE
TOWN COUNCIL VOTE AUTHORIZING THE ISSUANCE OF
UP TO $5,850,000 OF GENERAL OBLIGATION REFUNDING BONDS



WHEREAS, the Town has outstanding certain 1998 General Obligation Refunding Bonds (the “1998 Bonds”) which were issued to refund the Town’s 1994 general obligation bonds which in turn were issued to pay the costs of improvements and additions to and equipping of the Town’s Elementary and Middle Schools, the costs of acquiring the Thomas Jordan Trust Land and the costs of renovations to the Town Hall and Thomas Memorial Library; and

WHEREAS, the Town has outstanding certain 1999 General Obligation Bonds (the “1999 Bonds”) which were issued to pay the costs of (1) renovations to the Donald Richards Community Pool and (2) construction of a new public works garage, athletic fields and related infrastructure improvements; and

WHEREAS, the 1998 Bonds maturing in the years 2008 to 2014, in the principal amount of $2,915,000 and the 1999 Bonds maturing in the years 2009 through 2019, in the principal amount of $2,850,000 (the “Callable Bonds”) are subject to early redemption on or after October 15, 2009; and

WHEREAS, it appears that refunding of the Callable Bonds would result in a significant net present cash flow savings to the Town and that it is, therefore, advisable to issue bonds of the Town to refund the Callable Bonds.

NOW, THEREFORE, it is

VOTED: That pursuant to the provisions of Section 5772 of Title 30-A of the Maine Revised Statutes and all other authority thereto enabling and in order to provide for the refunding of the Callable Bonds and the costs and expenses related thereto, including interest to the redemption date and call premium, if any, the Town Council of the Town of Cape Elizabeth hereby authorizes the Treasurer to borrow on behalf of the Town up to $5,850,000 in principal amount.

VOTED: That in order to effect the borrowing heretofore authorized, the Treasurer be and hereby is authorized to prepare, issue and sell bonds of the Town in the aggregate principal amount not to exceed $5,850,000, such bonds to be signed by the Treasurer, countersigned by the Chairman of the Town Council and attested by the Town Clerk.

VOTED: That the form, maturity, interest rates and other details of said bonds shall be as determined by the Treasurer and the Chairman of the Town Council by their execution thereof, but shall have their respective final maturity not later than the respective final maturity for the Callable Bonds and shall not be inconsistent with the provisions hereof. Such bonds may be issued as callable bonds, at the discretion of the Treasurer and Chairman of the Town Council.

VOTED: That the proceeds of such bonds, after payment of issuance costs, shall be used to pay the principal, interest and call premium on the Callable Bonds.

VOTED: That the Chairman of the Town Council, the Treasurer and Clerk and other proper officials of the Town be and hereby are authorized and empowered in its name and on its behalf to do or cause to be done all such acts and things as may be deemed necessary or desirable in order to effect the issue and delivery of said bonds and notes hereinbefore authorized in the foregoing votes.

VOTED: That the Town covenants and certifies that no part of the proceeds of the issue and sale of the notes and bonds authorized to be issued by the foregoing resolutions (including any notes and bonds in renewal thereof) shall be used, directly or indirectly, to acquire any securities or obligations, the acquisition of which would cause such notes or bonds to be “arbitrage bonds” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the “Code”).

VOTED: That said bonds are hereby designated “qualified tax exempt obligations” under Section 265(b)(2) of the Code.

VOTED: That the Treasurer of the Town be authorized to covenant on behalf of the Town and for the benefit of the holders of the notes and bonds, that the Town will take whatever steps, and refrain from taking any action, as may be necessary or appropriate to ensure that interest on the notes and bonds will remain exempt from federal income taxes.

VOTED: That any or all of the bonds issued hereunder may be consolidated with and become a part of any other issue of general obligation bonds authorized and issued by the Town of Cape Elizabeth.


Item# 129-2009 Town Center Intersection
The Town Council agreed to discuss the proposed project as part of this agenda.

Citizen Opportunity for Discussion of Items Not on the Agenda

Adjournment

Future Meetings/Events

September 3, 2009: Town Council Workshop- Library Report at the Thomas Memorial Library

September 14, 2009: Town Council Meeting including public hearing on the Goddard Mansion, Shoreland Zoning and the Shore Road Path.