HomeMy WebLinkAboutOrd 237-2005 Bonds by GTUA facilities to be constructed.pdfORDINANCE NO. 237-2005
AN ORDINANCE by the City Council of the C~y of Anna, Texas, relating to
bonds proposed to be issued and delivered by the Greater Texoma Util~y
Authority, approving the issuance thereof, and the faciHies to be
constructed, acquired, and Improved by such Authority.
WH~REAS, the Greater Texoma Utility Authority (the 'Authority") and the City of Anna ,
Texas (the Clty"), have prevIOUsly executed and delivered an Amended and Restated Contract
for Water Supply and Sewer Service (the "Contract1 whereby the Authority is to provide water
and _ services to the CHy ;
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 01 the Contract and the lonn of any purchase
contract for the purchase of such bonds;
WHEREAS, in connection with the proposed 'Greater Texoma Utility AuthorHy Conlract
Revenue Bonds, Series 2005 (City of Anna Project)" (the 'Bonds"), TIS-The Independent
BankersBank, Irving, Texas (the 'Purchaser") has agreed, punmant to a Purchase Agreement
between the Purchaser and the Authority, dated as of November 21, 2005 (the 'Purchase
Agreernenr), to purchase the Bonds, and such purchase of the Bonds by the Purchaser and the
terms 01 the Purchase Agreement relating to the CHy are hereby approved;
WHEREAS, the CHy acknowledges that no Notice of Sole relating to the Bonds has
been prepared, and the City hereby waives any requirement that a Notice of Sale relating to the
Bonds be pnepared, because the CHy has found and detennined and hereby finds and
determines that it is neither necessary nor advisable for the Authority to prepare a Notice of
Sale relating to the Bonds because, insofar as the CHy is concerned, the Purchase Agreement
evidences a 'private placement' of the Bonds with the Purchaser and contains sufficiant
inlonnation to accomplish the purposes of a Notice of Sale; and
WHEREAS, the net effective interest rate on the Bonds will not exceed fifleen percent
(15%) per annum, and n I. now appropriate for this Council to approve the Purchase Agreement
(in lieu of approving a Notice of Sale relaUng to the Bonds) as well as the issuance and delivery
of the Bonds and the facil~ies to be constructed, acqtIired, and improved with the proceeds of
the Bond. for the Project described in ExhlM A attached hereto and to the Resolution 0/ the
Authorny (the 'Bond Resolution') authorizing the Bonds; now, therefora,
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
w~ the proceeds of the Bonds for the Project described in Exhibit A attached hereto and to the
Authority's Bond Resolution are hereby approved . The use of the proceeds of the Bonds, as
described in Exhibit A attached hereto and to the Authorny's Bond Resolution, is hereby
approved . The Bond Resolution is approved as to lonn and content, and the City acknowledges
that the payment 0/ principal 01 and interest on the Bond. i. payable, in whole or in part, from
payments to be made by the CHy under and pursuant to the Contract. The CHy agrees to
provide the reports de$crIbed In the Bond Resolution within the times specified therein, and In
compliance w~ the Purchase Agreemert. The CHy agrees with the obligations and oonditions
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set forth in the Purchase Agreement. A copy of such Purchase Agreement is attached hereto
as Emibit B.
Section 2. It is the purpose and intent of the City Council of the City to approve the
Bond Resolution , and the facil~i es 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 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 exped~e 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 shatl be construed as a lim~ation upon the right and
power of the City to approve a change in the facilities for which the Bonds are to be isaued (but
not the purpose for which the Bonds are to be isaued as set forth in the Bond Resolution), the
City specifically reserving the right to modify the facil~ies for which the Bonds are being IS8ued W
the Authority and the City agree such modification should be made.
Section 3. In all respects , the Contrecl is reapproved and shall be and remain In full
force as the agreem ent of the parties.
Section 4 . The findings and determinations of the City Council contained in the
preamble hereof are hereby incorporated by reference and made a part 01 this Ordinance for all
purposes as if the same were restated in full in this Section .
45681866 .1 N 0507058 2
PASSED AND APPROVED, this the 22nd day of November, 2005 .
. ,'
or
City of Anna, Tex as
ATTEST:
(Seal)
4 5681 866 .1fl 0507058 &-1
EXHIBIT A
PROJECT DESCRIPTION
Proceeds of the bond issue will be used by the Greater T exama Utility Authority to
finance the folawing :
Water Project: The Series 2005 Project consists of the acquis~ion and construction of
improvements and extensions to the City of Anna 's water suppty system , including the purchase
of two (2) water wells -one Trinity water well and one Woodbine water well; a 350,QOO.gallon
elevated storage tank; purchase of approximately 7 acres, which contains the water wells and
elevated storage tank; approximately 40,000 feet of distribution lines and a portion of the South
Grayson Water Supply Corporation's CertifICate of Convenience and Necessity, which is in the
City of Anna's extraterritorial jurisdiction, and consiats of approximately 300 customers, to
remove potential development conflictS between the City of Ama and South Grayson Water
Supply Corporation in the umanizing area around Anna .
4568' 866. 111 0507058 A-I
EXHIBIT B
FORM OF PURCHASE AGREEMENT
4 566 1866.1/10507058 B-1