Expedited Bill No.
12-12
Concerning: Bond Authorization -
Stormwater Management
Revised:
3/9/2012
Draft No._1_
Introduced:
March 20. 2012
Enacted:
April 17. 2012
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _,_ __
Sunset Date: -!N..::..;o=n=e_ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN EXPEDITED ACT
to authorize the County to issue special limited obligation bonds to
finance the planning, design, acquisition, and construction of stonnwater management facilities
and related projects.
By adding to the Laws of Montgomery County 2012
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 12-12
1
Sec. 1. The following is added to the Laws of Montgomery County
2012:
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(a) The County may at any time and from time to time sell in one or more
series an aggregate principal amount not to exceed $95,000,000 in
special limited obligation bonds (the "Bonds") authorized under the
authority of Section 5(P)(2) of Article
25A
of the Maryland Code
Title 4 of the Environmental Article of the Maryland Code ("Title
4"), as amended and Chapter 19 of the County Code, as amended to
finance the planning, design, acquisition, and construction of
stormwater management facilities and related projects as approved in
the County's Capital Improvements Program.
(b) The Bonds are special limited obligations of the County and must not
constitute a pledge of the full faith and credit and unlimited taxing
power of the County. The Bonds must be payable by the County from
its water quality protection charges authorized to be imposed on
certain real property in the County under Title 4 and Section 19-35 of
the County Code (the "Water Quality Protection Charge") and
deposited into the stormwater management fund (the "Fund"). To pay
the interest and redeem and pay the Bonds authorized by this Act as
they respectively mature, the County must impose the Water Quality
Protection Charge in each fiscal year in an amount sufficient to
provide for the payment, when due, of the principal of and interest on
all Bonds maturing in each fiscal year and all other costs and expenses
authorized for payment and determined to be paid by the County from
the Fund in that fiscal year under Chapter 19. If the revenue derived
from the Water Quality Protection Charge imposed in any fiscal year
proves inadequate for the listed purposes, additional charges must be
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EXPEDITED BILL No. 12-12
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imposed in the next fiscal year to make up any deficiency.
The
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County may apply to the payment of the principal of and interest on
the Bonds and such other costs and expenses any other funds legally
available and deposited to the Fund. To the extent such funds are
received or are receivable in any fiscal year, the amount of the Water
Quality Protection Charge required to be imposed may be reduced
accordingly.
(c)
The Bonds may be sold for a price at or above par, plus accrued
interest to the date of delivery. The County Executive may sell the
Bonds through a public sale or through a private (negotiated) sale
without solicitation of competitive bids, as the County Executive by
executive order after consulting the Director of Finance finds to be in
the best interests of the County. Any sale of the Bonds by private
negotiation is for the County's best interest.
(d)
In accordance with this Act, the County Executive may determine by
Executive Order, for each Bond or series of Bonds issued under this
Act, all matters relating to the sale, issuance, delivery and payment of
the Bonds, including the purposes for which the Bonds are issued, the
date or dates of sale of the Bonds, the designation of the Bonds, the
date of delivery of the Bonds, the authorized denominations for the
Bonds, the redemption provisions, if any, pertaining to the Bonds, the
manner of authentication and numbering of the Bonds, the date from
which interest on the Bonds accrues, the rate or rates of interest borne
by the Bonds or the method of determining the rates, the interest
payment and maturity dates of the Bonds, including provisions for
mandatory sinking fund redemption of any term bonds, the forms of
the Bonds, whether the Bonds are to be issued in book-entry form and
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EXPEDITED BILL
No. 12-12
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all matters incident to the issuance of Bonds in book-entry form, and
the provisions for the registration of Bonds.
The execution and
delivery of Bonds is conclusive evidence of the approval of all terms
and provisions of the Bonds on behalf of the County.
(e)
Except as otherwise provided in an Executive Order, the Bonds must
be executed in the name of the County and on its behalf by the County
Executive, whose signature may be by facsimile; an original or
facsimile of the official seal of the County must be imprinted or
otherwise reproduced thereon, attested by the manual or facsimile
signature of the Director of Finance, and authenticated by the manual
or facsimile signature of the Paying AgentlRegistrar or any designated
sIgner.
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(0
The County hereby covenants that if the County Executive decides to
issue the Bonds as tax-exempt bonds or bonds that must comply with
regulations regarding tax-exempt bonds, the County will take, or
refrain from taking, all actions necessary to comply with Section 103
and Sections 141 through 150 of the Internal Revenue Code,
applicable to the Bonds issued as tax-exempt bonds to preserve the
status of the interest on the Bonds as excluded from gross income for
Federal income tax purposes. Without limiting the generality of the
covenant in the preceding sentence: (1) the County must not use or
permit the use of any proceeds of the Bonds issued as tax-exempt
bonds or any funds of the County in a manner as would cause the
interest on the Bonds to be included in gross income for Federal
income tax purposes; (2) the County must regulate the investment of
the proceeds of the Bonds so as not to cause any of the Bonds to be an
"arbitrage bond" within the meaning of Section 148 of the Internal
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EXPEDITED BILL
No. 12-12
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Revenue Code and the Income Tax Regulations thereunder; (3) the
County must, if and to the extent necessary, make periodic
determinations of the rebate amount and timely pay any rebate
amount, or installment thereof, to the United States of America; (4)
the County must prepare and timely file Internal Revenue Service
Form 8038-G and 8038-B, Information Return for Tax-Exempt
Governmental Obligations; and (5) the County Executive or the
Executive designee must prepare and execute and certify any other
document required to assure compliance with the applicable
prOVISIOns of Section 103 and Sections 141 through 150 of the
Internal Revenue Code, and the Income Tax Regulations thereunder.
The County Executive may take any actions necessary or desirable to
assure that any Bonds authorized by this Act are allowed a tax credit,
that the County is entitled to a subsidy from the United States or any
agency or instrumentality thereof with respect to such Bonds or the
interest payable thereon, or the interest thereon is entitled to any other
available benefits under the Internal Revenue Code, as amended.
(g)
In connection with the issuance of any Bonds under this Act, the
County may enter into one or more agreements as the County
Executive finds necessary or appropriate for the issuance, sale,
delivery or security of the Bonds, which may include: (1)
underwriting, purchase or placement agreements for Bonds sold at
private (negotiated) sale in accordance with this Act; (2) trust
agreements with commercial banks or trust companies for the
issuance and security of the Bonds; (3) any dealer, remarketing or
similar agreements for the placement or remarketing of the Bonds; (4)
agreements for any credit or liquidity facilities supporting any Bonds;
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EXPEDITED BILL
No. 12-12
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(5) agreements with commercial banks or trust companies for the
deposit of proceeds of any Bonds; (6) agreements with fiscal agents
for the issuance of Bonds, their authentication, registration or payment
or other similar services; and (7) continuing disclosure agreements,
including any agreement required to enable the underwriters of any
Bonds to meet the requirements of paragraph (b)(5) of Rule 15c2-12
issued by the Securities and Exchange Commission.
Each such
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agreement must take the form determined by the County Executive by
Executive Order.
(h)
The County Executive, the Chief Administrative Officer, the County
Attorney, the Director of Finance and the Clerk of the Council, on
behalf of the County, may execute all instruments and otherwise take
any action necessary to carry out the authority conferred by this Act.
(i)
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The issuance and sale of any bonds under this Act are exempt from
the provisions of Article 31, Sections 9, 10, and 11 of the Maryland
Code.
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Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
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128
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EXPEDITED
BILL
No. 12-12
129
Approved:
130
Date
131
Approved:
132
Isiah Leggett, County Executive
Date
133
This is a correct copy o/Council action.
134
Linda
M.
Lauer, Clerk ofthe Council
Date
7
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No.
12-12
Concerning: Bond Authorization -
Stormwater Management
Revised:
3/9/2012
Draft No._1_
Introduced:
March 20. 2012
Enacted:
April 17. 2012
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _,_ __
Sunset Date: -!N..::..;o=n=e_ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN EXPEDITED ACT
to authorize the County to issue special limited obligation bonds to
finance the planning, design, acquisition, and construction of stonnwater management facilities
and related projects.
By adding to the Laws of Montgomery County 2012
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL
No. 12-12
1
Sec. 1. The following is added to the Laws of Montgomery County
2012:
2
3
(a) The County may at any time and from time to time sell in one or more
series an aggregate principal amount not to exceed $95,000,000 in
special limited obligation bonds (the "Bonds") authorized under the
authority of Section 5(P)(2) of Article
25A
of the Maryland Code
Title 4 of the Environmental Article of the Maryland Code ("Title
4"), as amended and Chapter 19 of the County Code, as amended to
finance the planning, design, acquisition, and construction of
stormwater management facilities and related projects as approved in
the County's Capital Improvements Program.
(b) The Bonds are special limited obligations of the County and must not
constitute a pledge of the full faith and credit and unlimited taxing
power of the County. The Bonds must be payable by the County from
its water quality protection charges authorized to be imposed on
certain real property in the County under Title 4 and Section 19-35 of
the County Code (the "Water Quality Protection Charge") and
deposited into the stormwater management fund (the "Fund"). To pay
the interest and redeem and pay the Bonds authorized by this Act as
they respectively mature, the County must impose the Water Quality
Protection Charge in each fiscal year in an amount sufficient to
provide for the payment, when due, of the principal of and interest on
all Bonds maturing in each fiscal year and all other costs and expenses
authorized for payment and determined to be paid by the County from
the Fund in that fiscal year under Chapter 19. If the revenue derived
from the Water Quality Protection Charge imposed in any fiscal year
proves inadequate for the listed purposes, additional charges must be
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EXPEDITED BILL No. 12-12
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imposed in the next fiscal year to make up any deficiency.
The
29
30
County may apply to the payment of the principal of and interest on
the Bonds and such other costs and expenses any other funds legally
available and deposited to the Fund. To the extent such funds are
received or are receivable in any fiscal year, the amount of the Water
Quality Protection Charge required to be imposed may be reduced
accordingly.
(c)
The Bonds may be sold for a price at or above par, plus accrued
interest to the date of delivery. The County Executive may sell the
Bonds through a public sale or through a private (negotiated) sale
without solicitation of competitive bids, as the County Executive by
executive order after consulting the Director of Finance finds to be in
the best interests of the County. Any sale of the Bonds by private
negotiation is for the County's best interest.
(d)
In accordance with this Act, the County Executive may determine by
Executive Order, for each Bond or series of Bonds issued under this
Act, all matters relating to the sale, issuance, delivery and payment of
the Bonds, including the purposes for which the Bonds are issued, the
date or dates of sale of the Bonds, the designation of the Bonds, the
date of delivery of the Bonds, the authorized denominations for the
Bonds, the redemption provisions, if any, pertaining to the Bonds, the
manner of authentication and numbering of the Bonds, the date from
which interest on the Bonds accrues, the rate or rates of interest borne
by the Bonds or the method of determining the rates, the interest
payment and maturity dates of the Bonds, including provisions for
mandatory sinking fund redemption of any term bonds, the forms of
the Bonds, whether the Bonds are to be issued in book-entry form and
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36
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 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL
No. 12-12
55
56
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all matters incident to the issuance of Bonds in book-entry form, and
the provisions for the registration of Bonds.
The execution and
delivery of Bonds is conclusive evidence of the approval of all terms
and provisions of the Bonds on behalf of the County.
(e)
Except as otherwise provided in an Executive Order, the Bonds must
be executed in the name of the County and on its behalf by the County
Executive, whose signature may be by facsimile; an original or
facsimile of the official seal of the County must be imprinted or
otherwise reproduced thereon, attested by the manual or facsimile
signature of the Director of Finance, and authenticated by the manual
or facsimile signature of the Paying AgentlRegistrar or any designated
sIgner.
62
63
64
65
66
67
(0
The County hereby covenants that if the County Executive decides to
issue the Bonds as tax-exempt bonds or bonds that must comply with
regulations regarding tax-exempt bonds, the County will take, or
refrain from taking, all actions necessary to comply with Section 103
and Sections 141 through 150 of the Internal Revenue Code,
applicable to the Bonds issued as tax-exempt bonds to preserve the
status of the interest on the Bonds as excluded from gross income for
Federal income tax purposes. Without limiting the generality of the
covenant in the preceding sentence: (1) the County must not use or
permit the use of any proceeds of the Bonds issued as tax-exempt
bonds or any funds of the County in a manner as would cause the
interest on the Bonds to be included in gross income for Federal
income tax purposes; (2) the County must regulate the investment of
the proceeds of the Bonds so as not to cause any of the Bonds to be an
"arbitrage bond" within the meaning of Section 148 of the Internal
4
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 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL
No. 12-12
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Revenue Code and the Income Tax Regulations thereunder; (3) the
County must, if and to the extent necessary, make periodic
determinations of the rebate amount and timely pay any rebate
amount, or installment thereof, to the United States of America; (4)
the County must prepare and timely file Internal Revenue Service
Form 8038-G and 8038-B, Information Return for Tax-Exempt
Governmental Obligations; and (5) the County Executive or the
Executive designee must prepare and execute and certify any other
document required to assure compliance with the applicable
prOVISIOns of Section 103 and Sections 141 through 150 of the
Internal Revenue Code, and the Income Tax Regulations thereunder.
The County Executive may take any actions necessary or desirable to
assure that any Bonds authorized by this Act are allowed a tax credit,
that the County is entitled to a subsidy from the United States or any
agency or instrumentality thereof with respect to such Bonds or the
interest payable thereon, or the interest thereon is entitled to any other
available benefits under the Internal Revenue Code, as amended.
(g)
In connection with the issuance of any Bonds under this Act, the
County may enter into one or more agreements as the County
Executive finds necessary or appropriate for the issuance, sale,
delivery or security of the Bonds, which may include: (1)
underwriting, purchase or placement agreements for Bonds sold at
private (negotiated) sale in accordance with this Act; (2) trust
agreements with commercial banks or trust companies for the
issuance and security of the Bonds; (3) any dealer, remarketing or
similar agreements for the placement or remarketing of the Bonds; (4)
agreements for any credit or liquidity facilities supporting any Bonds;
5
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EXPEDITED BILL
No. 12-12
109
110
111
112
(5) agreements with commercial banks or trust companies for the
deposit of proceeds of any Bonds; (6) agreements with fiscal agents
for the issuance of Bonds, their authentication, registration or payment
or other similar services; and (7) continuing disclosure agreements,
including any agreement required to enable the underwriters of any
Bonds to meet the requirements of paragraph (b)(5) of Rule 15c2-12
issued by the Securities and Exchange Commission.
Each such
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114
115
116
117
agreement must take the form determined by the County Executive by
Executive Order.
(h)
The County Executive, the Chief Administrative Officer, the County
Attorney, the Director of Finance and the Clerk of the Council, on
behalf of the County, may execute all instruments and otherwise take
any action necessary to carry out the authority conferred by this Act.
(i)
118
119
120
121
122
The issuance and sale of any bonds under this Act are exempt from
the provisions of Article 31, Sections 9, 10, and 11 of the Maryland
Code.
123
124
125
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
126
127
128
6
 PDF to HTML - Convert PDF files to HTML files
EXPEDITED
BILL
No. 12-12
129
Approved:
130
Date
131
Approved:
132
Isiah Leggett, County Executive
Date
133
This is a correct copy o/Council action.
134
Linda
M.
Lauer, Clerk ofthe Council
Date
7