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HomeMy WebLinkAboutOrd 2002-16 Auth Issue of Bonds.pdfORDINANCE NO. aC)Oa—I (D AN ORDINANCE by the City Council of the City of Anna, Texas, relating to bonds proposed to be issued and delivered by the Greater Texoma Utility Authority, approving the issuance thereof, and the facilities to be constructed, acquired, and improved by such Authority, and repealing Ordinance No. 2002-05, adopted March 26, 2002. WHEREAS, the Greater Texoma Utility Authority (the "Authority") and the City of Anna, Texas (the "City"), have previously executed and delivered a Contract for Water Supply and Sewer Service (the "Contract") whereby the Authority is to provide water and sewer services to the City; WHEREAS, under Section 4.15 of the Contract, it is provided that the City shall approve the issuance by the Authority of any bonds that are to be payable from certain moneys that the City has contracted to pay under the provisions of the Contract; WHEREAS, on March 26, 2002, the City Council of the City adopted Ordinance No. 2002-05, which ordinance approved the issuance by the Authority of certain bonds that were never issued, and now said Ordinance No. 2002-05 should be repealed and no longer be of any force or effect; WHEREAS, in connection with the proposed "Greater Texoma Utility Authority Contract Revenue Bonds, Series 2002" (City of Anna Project) (the "Bonds"), the Texas Agricultural Finance Authority (the "Finance Authority") has agreed, pursuant to an Application Requesting Financial Assistance (the "Application'), to purchase the Bonds and, -therefore, it is neither necessary nor advisable for the Authority to prepare a Notice of Sale because, insofar as the City is concerned, the Application contains sufficient information to accomplish the purpose of a Notice of Sale; and WHEREAS, the net effective interest rate on the Bonds will not exceed fifteen percent (15%) per annum, and it is now appropriate for this Council to approve the Application (in lieu of approving a Notice of Sale with respect to the Bonds) as well as the issuance and delivery of the Bonds and the facilities to be constructed, acquired, and improved with the proceeds of the Bonds for the Project described in Exhibit A attached to the Resolution of the Authority (the "Bond Resolution") authorizing the Bonds; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS: Section 1. The facilities to be constructed, acquired, and improved by the Authority with the proceeds of the Bonds for the Project described in Exhibit A attached to the Bond Resolution are hereby approved. The use of the proceeds of the Bonds, as described in Exhibit A attached to the Bond Resolution, is hereby approved. The Bond Resolution is approved as to form and content and the City acknowledges that the payment of principal of and interest on the Bonds is payable, in whole or in part, from payments to be made by the City under and pursuant to the Contract. The City agrees to provide the reports described in the Bond Resolution within the times specified therein, in compliance with the Finance Authority's commitment. The City agrees with the obligations and conditions set forth in the Finance Authority's Commitment to purchase the Bonds. A copy of such commitment is attached hereto as Exhibit B. 45200420.1\10202579 Section 2. It is the purpose and intent of the City Council of the City to approve the Bond Resolution, and the facilities to be constructed, acquired, and improved in full accordance with the provisions of the Contract mentioned in the preamble hereof. To the extent required by the Finance Authority or the Office of the Attorney General of Texas, the Authority is authorized by this City Council to make changes and revisions to the Bond Resolution from the form approved by this ordinance in order to expedite the delivery of the Bonds. It is the intent of the City to authorize the Authority to proceed with the construction, acquisition, and improvement of the facilities at the earliest possible date, but nothing herein shall be construed as a limitation upon the right and power of the City to approve a change in the facilities for which the Bonds are to be issued (but not the purpose for which the Bonds are to be issued as set forth in the Bond Resolution), the City specifically reserving the right to modify the facilities for which the Bonds are being issued if the Authority and the City agree such modification should be made. Section 3. The Contract is amended to include the definition of Project attached hereto as Exhibit A. A copy of Exhibit A shall be attached to the Contract, as Exhibit C. In all other respects the Contract is reapproved and shall be and remain in full force as the agreement of the parties. Section 4. Ordinance No. 2002-05, adopted by the City Council of the City March 26, 2002, and relating to certain bonds of the Authority which were never issued, is hereby repealed and shall no longer be of any force or effect. 45200420.1\10202579 PASSED AND APPROVED, this the 13`h day of August, 2002. City of Anna, Texas (Seal) 45200420.1\10202579 S_1 EXHIBIT A PROJECT DESCRIPTION Proceeds of the bond issue will be used to finance construction of a new wastewater treatment plant on the site of the existing plant, including a new sewage lift station, extended aeration activated sludge treatment, chlorination wedge wire sludge dewatering beds, and an emergency generator. 45200420.1\10202579 A-1 EXHIBIT B COMMITMENT OF TEXAS AGRICULTURAL FINANCE AUTHORITY 45200420.1\10202579 B_2 GENERAL CERTIFICATE OF THE CITY STATE OF TEXAS § COUNTY OF COLLIN § We, the undersigned Mayor and City Secretary of the City of Anna, Texas (the "City"), DO HEREBY CERTIFY as follows: follows: Relative to City Officials. The duly qualified and acting officials of the City are as Ron Ferguson Mayor Marion A. Howard City Secretary 2. Relative to Signature Identification. Appearing below are the true and correct signatures of the persons holding the offices of Mayor and City Secretary. By his signature hereon, the Mayor certifies that the signature of the City Secretary appearing hereon is her genuine signature and by her signature hereon, the City Secretary certifies that the signature of the Mayor appearing hereon is his genuine signature. 3. Relative to the Contract. The Contract for Water Supply and Sewer Service (the "Contract") between the Greater Texoma Utility Authority (the "Authority") and the City has been duly authorized and is in compliance with any applicable statutory requirements. The Contract, as submitted to the Attorney General of Texas, is still in full force and effect and, except as set forth in Section 41 of the bond resolution adopted by the Authority on March 25, 2002, has not been amended or rescinded. No litigation is pending or threatened concerning the title or authority of the officers or concerning the Contract. 4. Relative to Sufficiency of Revenues. A true and correct copy of the pro -forma operating statement of revenue and expense projections using the current rates showing the City's ability to make contract payments sufficient to pay bond principal and interest payments is attached hereto as Exhibit A-1, and a schedule reflecting recent historical gross and net revenues of the City's utility system is attached hereto as Exhibit A-2. 5. Relative to No Litigation. No litigation is pending before any federal or state court, or administrative body or, to the best of our knowledge and belief, threatened in any way affecting the Contract, the existence of the City or the titles of its officials to their respective positions, and that neither the Contract, the corporate existence or boundaries of the City, nor the right to hold office of any member of the governing body of the City or any other elected or appointed officer of the City is being contested or otherwise questioned. 6. Authority to Date. The City hereby authorizes the Office of the Attorney General to date this Certificate the date of delivery of its approving opinion, and agrees to notify the Office of the Attorney General of any changes with respect to this Certificate or any bond documents to which it is a party that are made between the date of such opinion and the date of closing. 45158079.2\10202579 WITNESS OUR HANDS AND SEAL of the City this the [moi la—&ba . lU i y Secretary City of Anna, Texas (CITY SEAL) 45158079.2\10202579 S-1 EXHIBIT A-1 PRO -FORMA OPERATING STATEMENT 45158079.2\10202579 A-1 EXHIBIT A-2 HISTORICAL REVENUES OF THE CITY'S UTILITY SYSTEM 45155079.2\10202579 A-2 CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS COUNTY OF COLLIN CITY OF ANNA I, the undersigned, Mayor of the City of Anna, Texas, DO HEREBY CERTIFY as follows: 1. That on the 13th day of August, 2002, the City Council of the City of Anna, Texas, convened in regular session at its regular meeting place of said City; the duly constituted members of the Council being as follows: RON FERGUSON MARK MONTGOMERY LYNN MOSIER JOE FINLEY, JR. JOHN GEREN LYNN DHANE MAYOR MAYOR PRO TEM COUNCIL MEMBERS all of said persons were present at said meeting, except the following :�.QecoS0r _ Among other business considered at said meeting, the attached ordinance entitled: AN ORDINANCE by the City Council of the City of Anna, Texas, relating to bonds proposed to be issued and delivered by the Greater Texoma Utility Authority, approving the issuance thereof, and the facilities to be constructed, acquired, and improved by such Authority, and repealing Ordinance No. 2002-05, adopted March 26, 2002. was introduced and submitted to the Council for passage and adoption. After presentation and due consideration of the ordinance, and upon a motion made by L. Mos iek a n seconded by the ordinance was duly passed and adopted by the Council to be effective immediately by the following vote: �j voted "For' Q voted "Against" 0 abstained all as shown in the official Minutes of the Council for the meeting held on the aforesaid date. 2. That the attached ordinance is a true and correct copy of the original on file in the official records of the City; the duly qualified and acting members of the City Council of the City on the date of the aforesaid meeting are those persons shown above and, according to the records of my office, advance notice of the time, place and purpose of the meeting was given to each member of the Council; and that said meeting, including the subject of the entitled ordinance, was posted and given in advance thereof in compliance with the provisions of Chapter 551 of the Texas Government Code. 45200444.1/10202579 IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this 13th day of August, 2002. (CITY SEAL) 45200444.1/10202579 -2-