HomeMy WebLinkAboutOrd 387-2008 Approving GTUA Contract Revenue Bonds, Series 2008ORDINANCE NO.3n-2008
AN ORDINANCE by the City Council of the City of Anna, Texas, relating to
Greater Texoma Utility Authority Contract Revenue Bonds, Series 2008
(City of Anna Project)"; and approving the issuance thereof and the
facilities to be constructed or acquired by such Authority.
WHEREAS, the Greater Texoma Utility Authority (the "Authority") and the City of
Anna, Texas (the "City"), have previously executed and delivered an Amended and Restated
Contract for Water Supply and Sewer Service, dated as of April 17, 2006 (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 (in whole or in part) from
certain moneys that the City has contracted to pay under the provisions of the Contract;
WHEREAS, in connection with the proposed "Greater Texoma Utility Authority
Contract Revenue Bonds, Series 2008 (City of Anna Project)" (the `Bonds"), De Lage Landen
Public Finance (the "Purehaser'l has agreed, pursuant to a Purchase Agreement between the
Purchaser and the Authority, dated as of June 16, 2008 (the "Purchase Agreement"), to purchase
the Bonds, and such purchase of the Bonds by the Purchaser and the tercets of the Purchase
Agreement relating to the City are hereby approved;
WHEREAS, the City acknowledges that no Notice of Sale relating to the Bonds has been
prepared, and the City hereby waives any requirement that a Notice of Sale relating to the Bonds
be prepared, because the City has found and determined 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 City is concerned, the Purchase Agreement evidences a "private
placement" of the Bonds with the Purchaser and contains sufficient information to accomplish
the purposes of a Notice of Sale; and
WHEREAS, the net effective interest rate on the Bonds will not exceed fifteen percent
(1501.) per annum and it is now appropriate for this Council to approve the Purchase Agreement
(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 or acquired with the proceeds of the
Bonds for the project described in Exhibit A (the "Series 2008 Project') attached to the
Resolution of the Authority authorizing the Bonds (the "Bond Resolution"); 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 Series 2008 Project described in Exhibit A hereto and in
Exhibit A attached to the Bond Resolution are hereby approved. The use of the proceeds of the
Bonds, as described in Exhibit A to the Bond Resolution, is hereby approved. The Bond
Resolution is approved as to fort 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 with the obligations and
iPi['1'YYY#n[dX63�Fi]
conditions set forth in the Purchase Agreement. A copy of such Purchase Agreement is attached
hereto as Exhibit B.
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 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.
SECTION 3. In all respects the Contract is re -approved and shall be and remain in full
force as the agreement 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 of this Ordinance for all
purposes as if the same were restated in full in this Section.
(remainder ofpage left blank intentionalW
80198642.1nos05856
PASSED AND APPROVED, this June 24, 2008.
CITY OF ANNA, TEXAS
/� ayor
ATTEST: %
Lilt Ci l
Secretary
(City Se#e..-*
>_C)
8019WITIM05856 S-1
EXHIBIT A
SERIES 2005 PROJECT DESCRIPTION
Water Project: The Series 2008 Project will consist of the constriction of Ferguson
Parkway waterline and other water system appurtenances as necessary.
Sewer Project: The Series 2008 Project will consist of the construction of Northpointe
Interceptor Sewer and other sewer system appurtenances as necessary.
80198642.1/10805856 A-1
C37:113ii=3
PURCHASE LETTER
80198642180805856 $-1