R-1999-26 - Laserfiche WebLink

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. e LA PORTE AREA WATER AUmORITY The Authority was created in 1981 by the 67th Legislature of the State of Texas, Regular Session, as a conservation and reclamation district for the pwpose of acquiring, treating and delivering water to municipalities, water districts and industries within a 30-mile radius in southeast Harris County, including the City of La Porte and its extraterritorial jurisdiction. The creation of the Authority was confirmed at an election held within the City of La Porte on January 16, 1982 by a majority of the votes cast With the proceeds of its $9,800,000 revenue bonds, sold in 1988, the Authority acquired an Wldivided interest in the Southeast Water Purification Plant (the "Plant") constrncted by the City of Houston. The Authority constrncted a major water transmission system to serve its contracting parties, which presently include the Cities of La Porte, Shoreacres and Morgan's Point. The Plant has surface water treatment facilities capable of producing 80 million gallons per day (mgd) and treated water storage facilities and pwnping facilities capable of storing approximately 25 million gallons of potable water and pumping approximately 156,000 gallon per minute (gpm) of treated potable water. The Authority is entitled to an initial demand factor of 5.25% (4.2 mgd) and an initial pwnping allocation factor of 2.33% (3,650 gpm). Each contracting partys share of such capacities are as follows: City of La Porte ................ City of Shoreacres .............. City of Morgan's Point ........... 90.97% 4.74% 4.29% Each contracting party is responsible for its share of the Authority's portion of the cost of constrnction and maintenance and operation of the plant in the percentages shown above. The contracts between the Authority and its contracting parties provide for establishment of rates and charges sufficient to meet the Authority's obligation with respect to operation and maintenance of the project, debt service and reserve fund requirements on its bonds, billing and payment procedures and minimwn monthly charges. The City of La Porte has budgeted $1,390,300 for payment to the Authority for the fiscal year ending September 30, 1998. The payments made to the Authority constitute operating expenses of the contracting parties' water and sewer systems. The term of the contracts is forty years commencing 1988. SELECTED PROVISIONS OF THE CONTRACT REVENUE BOND RESOLUTION PLEDGE. The Bonds and any interest payable thereon, are and shall be secured by and payable from a lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created by this Resolution. The Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. The registered owner of the Bonds shall never have the right to demand payment of such obligations out of any funds raised or to be raised by taxation, or from any source whatsoever other than the Pledged Revenues. "This Resolution shall not be construed as requiring the Authority to expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the Authority from doing so. RAlES. The Authority covenants and agrees with the holders of the Bonds that it will: (a) subject to any restrictions in the Water Sales Contracts, fix and maintain rates and collect charges for the facilities and services afforded by the System which will provide revenues sufficient at all times (i) to pay all Operating Expenses; (ii) to establish and maintain the Bond Fund; and (iii) to pay all indebtedness outstanding against the System, other than the Bonds, as and when the same become due; and (b) deposit as collected all Gross Revenues into the Revenue FWld. Creation of Funds. All Revenues shall be kept separate and apart from all other funds of the Authority, and the following special funds ("Funds") shall be established and maintained in an official depository bank or depository banks of the Authority so long as any of the Bonds, or interest thereon, are outstanding and unpaid: (a) La Porte Area Water Authority Revenue Fund (the "Revenue FWld"); (b) La Porte Area Water Authority Bond Fund (the "Bond Fund"); and (c) La Porte Area Water Authority Reserve FWld (the "Reserve Fund"); 12 33