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HomeMy WebLinkAboutO-2000-2388 e e ORDINANCE NO. 2000- ~3 <if ~ AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE CITY OF LA PORTE DEVELOPMENT CORPORATION, FOR SALES AND USE TAX RETENTION; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1 The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. Section 2 The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3 This Ordinance shall be in effect from and after its passage and approval. PASSED AND APPROVED this the 27th day of March, 2000. ATTEST: ~JJ~ (4A11J;11 a a Gille ,City Secretary Knox W. Askins, City Attorney City of La Porte, Texas Long Range Projection for the La Porte Development Corporation Section 48 1/2 Cent Sales Tax Method 1 - Issue Debt for Projects Projected 2001-02 Projected 2000-01 Projected 1999-00 Actual 1998-99 Projected 2007-08 Projected 2006-07 Projected 2005-06 Projected 2004-05 Projected 2003-04 Projected 2002-03 211.585 ,096.563 5,791 ,102,354 247,608 ,069.817 5.161 ,074.978 343,346 ,043,724 6,039 ,049,763 496,705 ,018,267 8,374 ,026,642 705,660 993.432 12.115 ,005.546 968.248 969.202 17,211 986,413 881,633 945,563 23,616 969,178 875,817 922,500 21,503 944,003 45,706 900.000 21.361 921.361 o 50.484 222 50,706 Beg Working Capital Balance Plus Revenues: Sales Tax Interest Total Revenue e 5.000 o 257,813 355,250 458,438 ,076,501 5.000 o 266,438 366.750 472,813 .111,001 5.000 o 275,063 378,250 487,188 145.501 5,000 o 283,688 389,750 501,563 ,180,001 5.000 o 292,313 401,250 515.938 ,214.501 5,000 o 300,938 412,750 530.313 ,249,001 5,000 o 309.563 424.250 143,750 882,563 5,000 500,000 318,188 115,000 o 938.188 5.000 o 86.250 o o 91.250 5,000 o o o o 5,000 Less Expenses: Operations Projects $3 issue in 99-00 $4 issue in 00-01 $5 issue in 01-02 Total Expenses 968,248 881,633 875,817 45,706 Ending Balance 237,438 211,585 247,608 343,346 496,705 705,660 Assumptions: Annual growth of the 1/2 cent Sales Tax will be at 2.5% per year. Interest will be earned at 5% on average balance A debt issue of $3 million will occur in March 2000 A debt issue of $4 million will occur in March 2001 A debt issue of $5 million will occur in March 2002 e be about 2009 before another debt issue could be supported. wi f these assumptions hold true. Debt issues are based on a 20 year term and an average interest rate of 5.75%. The $3 million issue in March 2000 is targeted for the Community Library. probably be for the Bay Area Boulevard extension. Projects for the $500,000 in FY 2000-2001 and the $5 million issue in February 2002 have not been identIfIed. wi The $4 million issue in February 2001 e e AKIN, GUMP, STRAUSS, HAUER & FELD, L.L.P. ATTORNEYS AT LAW AUSTIN BRUSSELS DALLAS HOUSTON LONDON LOS ANGELES MOSCOW NEW YORK PHILADELPHIA WASHINGTON, D.C. A REGISTERED LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS 300 CONVENT STREET SUITE 1500 SAN ANTONIO, TEXAS 78205 (2101 281-7000 FAX (2101 224-2035 Direct Dial: (2101 281-7004 March 23, 2000 Ms. Martha Gillett City of La Porte 604 West Fainnont La Porte, TX 77571 Re: City of La Porte, Texas General Obligation Bonds, Series 2000 City of La Porte, Texas Certificates of Obligation, Series 2000 Dear Martha: Enclosed are the documents for the captioned transactions. I believe everything is clearly marked where signatures and seals are needed. The only oddity I might point out is that the Official Statement Certificates (one for each transaction) are to be signed by Mr. Herrera. We still need the following documents for the Certificates of Obligation: l. Certificates for the Resolution authorizing publication of notice of intention to issue and 2. Affidavits of Publication. These were sent to Jeff Litchfield on February 23. If you need more copies, just let me know. Also, in reviewing the January 16, 1999 election documents, I see that Mr. Griffiths was absent from the meeting when the election results were canvassed. Since it was a special meeting, we need for him to sign an acknowledgment that he was notified of the meeting. I have enclosed three copies of the acknowledgment. Thank you for all your help. Please call if you have any questions. Paul and an associate (Benita Lee) will be at the meeting Monday. Very truly yours, ~. e,,~L0 Doris M. Aldennan Assistant to M. Paul Martin Enclosures e e RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE CITY OF LA PORTE DEVELOPMENT CORPORATION WHEREAS, the City of La Porte is in the process of issuing its "Certificates of Obligation, Series 2000" (the "Certificates") for the purposes of constructing and equipping a new La Porte Community Library and pledging ad valorem taxes to the payment thereof to obtain the best possible credit rating on the Certificates; WHEREAS, the City of La Porte Development Corporation has agreed to use a portion of the sales tax to pay the Certificates; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THE CITY OF LA PORTE, TEXAS that the Sales and Use Tax Retention Agreement substantially in the form attached hereto as Exhibit "A" is hereby approved and the officers of the City are authorized to execute and deliver the Agreement. PASSED, APPROVED, AND ADOPTED this March 27, 2000. ~// /' . L.-;-/ '-;?' -/ ..- /~~~~~ Mayor. , ATTEST: ~1 a,l;jjk jl{1i1J City Secretary .... e e SALES AND USE TAX RETENTION AGREEMENT This SALES AND USE TAX RETENTION AGREEMENT (the "Agreement") is dated as of March 15,2000 and entered into between the CITY OF LA PORTE, TEXAS (the "City") and the CITY OF LA PORTE DEVELOPMENT CORPORATION, a nonprofit corporation created by the City pursuant to Section 4B, Article 5190.6, Vernon's Texas Civil Statutes, as amended (the "Act") (the "Corporation"). WITNESSETH: WHEREAS, the City has levied a sales and use tax for the benefit of the Corporation as authorized by Section 4B(d) of the Act, and; WHEREAS, the City plans to issue its "City of La Porte, Texas Certificates of Obligation, Series 2000" (the "Certificates") in part to finance the improvements described in Exhibit "A" attached hereto (the "Project"); and WHEREAS, the Project is a "Project" as defined in Section 48 of the Act and as such, is a Project for which the Corporation may expend sales and use tax revenues; and WHEREAS, the issuance of the Certificates by the City will result, generally, in a lower cost of financing for the Project over the costs the Corporation might incur in financing the Project; and WHEREAS, the Corporation wishes to finance the Project at the lowest possible cost and, therefore, intends that the City retain a portion of the sales and use tax receipts from the sales and use tax levied by the City for the benefit of the Corporation to pledge to the Certificates and for use in making payments of principal of and interest on the Certificates when due, when redeemed prior to maturity, or when defeased in accordance with the provisions of the City's ordinance authorizing the sale of the Certificates (the "Ordinance"); NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Corporation hereby agree as follows: Section 1. Incorporation of the Preambles. The preambles to this Agreement are incorporated by reference and are hereby included in this Agreement as though set forth in full at this place. Section 2. Incorporation of the Ordinance. The Ordinance is incorporated by reference and is hereby included in this Agreement as though set forth in full at this place., : \ 1 ~ Section 3. Retention of Sales and Use Tax Receipts b.V'~~~. (a) The Board of Directors of the Corporation hereby agrees that the sales and use taxllevied by the City for the benefit of the Corporation, in an amount necessary to pay the Certificates. Such portion of the sales and use tax revenues is to be irrevocably retained by the City from the effective date of this Agreement until the Certificates are paid in full, whether at maturity or redemption prior to maturity, or until sufficient money and/or securities have been set aside in an irrevocable escrow fund for payment of the Certificates in full, all in accordance with the Ordinance; provided, however, if the City issues refunding bonds or certificates to redeem the Certificates prior to maturity or to defease the Certificates, as permitted in accordance with the Ordinance, such sales and use tax revenues are to be continued to be retained by the City to pledge to and pay in full the refunding bonds or certificates. . e (b) At the City's sole option, any such sales and use tax revenues retained by the City for payment of the Certificates which are not needed for payment of the Certificates in any given fiscal year of the City may be delivered to the Corporation for use pursuant to the Act. (c) Once the Certificates are defeased or paid in full and all bonds or certificates issued to refund the Certificates are paid in full, the City shall, as soon as possible, notify the Corporation of such fact, and commencing on the date of the first distribution of such sales and use tax revenues to the City from the Texas Comptroller of Public Accounts after such notification, the City shall deliver all of the proceeds of the sales and use tax levied for the benefit of the Corporation to the Corporation. Section 4. Notices. All notices required hereunder shall be in writing and delivered by certified mail, return receipt requested, by facsimile, by overnight mail, or by personal delivery, and addressed as follows: If to the City: City of La Porte, Texas Attention: City Manager 604 West Fairmont La Porte, TX 77571 Phone: (281) 471-5020 Fax: (281) 471-7168 If to the Corporation: City of La Porte Development Corporation Attention: President 604 West Fairmont La Porte, TX 77571 Phone: (281) 471-5020 Fax: (281) 471-7168 Any party listed above may designate any additional or different address or facsimile number to which communications under this Agreement shall be delivered by giving at least five days advance notice thereof to the affected parties. Section S. Amendment. This Agreement may be amended by execution of an instrument by both parties hereto; provided, however, this Agreement may not be amended to halt or limit the retention of sales and use tax revenues collected by the City as described in Section 3 hereof. Section 6. Bindin!! Effect. This Agreement shall bind and inure to the benefit of the successors of the parties hereto. Section 7. Applicable Law. This Agreement shall be construed and governed in accordance with the laws of the State of Texas. Section 8. SeverabiJitv. Any provision of this Agreement found to be prohibited by law shall be ineffective only to the extent of such prohibition and shall not invalidate the remainder of this Agreement. 2 e e Section 9. Execution in Counteroarts. This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. Section 10. Comolete Ae:reement. This Agreement supersedes and takes the place of any and all previous agreements entered into among the parties hereto with respect to the subject matter hereof. EXECUTED AS OF MARCH 15,2000. CITY OF LA PORTE, TEXAS B/kh/";" 74 {~--- . Mayor A ITEST: By~,,~.Jt(LLll ity Secretary (SEAL) CITY OF LA PORTE DEVELOPMENT CORPORATION By: A ITEST: By~tt~D- ,lit /.fl. Secretary, BoarCl of DIrectors EXECUTION PAGE OF SALES AND USE TAX RETENTION AGREEMENT e e EXHIBIT "A" The Project consists of constructing and equipping of the La Porte Community Library and the payment of contractual obligations for professional services in connection therewith (to wit: architectural, engineering, financial advisory, and legal). e e CERTIFICATE FOR RESOLUTION We, the undersigned President and Secretary of the City of La Porte Development Corporation (the "Corporation"), hereby certify as follows: 1. The Board of Directors of the Corporation (the "Board") convened in regular session, open to the public, on March 22, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll was called of the members, to wit: Chuck Engelken, Jr., Jerry Clarke, Peter E. Griffiths, William S. Love, Jr., Edward Matuszak, and Patricia Muston. All members of the Board were present, except , constituting a quorum. Whereupon among other business, the following was transacted at the Meeting: a written resolution entitled RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE CITY OF LA PORTE (the "Resolution") was duly introduced for the consideration of the Board and read in full. It was then duly moved and seconded that the Resolution be finally passed and adopted; and after due discussion, such motion, carrying with it the adoption of the Resolution prevailed and carried by the following vote: YES:~ NOES:~ ABSTENTIONS:L. 2. A true, full, and correct copy of the Resolution adopted at the Meeting is attached to and follows this Certificate; the Resolution has been duly recorded in the Board's minutes of the Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of the Meeting pertaining to the adoption of the Resolution; the persons named in the above and foregoing paragraph are duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the Meeting, and that the Resolution would be introduced and considered for adoption at the Meeting and each of such officers and members consented, in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551, Texas Government Code, as amended. SIGNED AND SEALED THIS March 22, 2000. .i11 ctL?t1t fLlti! Secretary, Board of Directors City of La Porte Development Corporation (SEAL) e e RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE CITY OF LA PORTE WHEREAS, the Board of Directors of the City of La Porte Development Corporation (the "Corporation") finds that the new La Porte Community Library is a project the Corporation should support; and WHEREAS, the City of La Porte is in the process of issuing its "Certificates of Obligation, Series 2000" (the "Certificates") for such purpose and pledging ad valorem taxes to the payment thereof to obtain the best possible credit rating on the Certificates; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LA PORTE DEVELOPMENT CORPORATION that the Sales and Use Tax Retention Agreement substantially in the form attached hereto as Exhibit "A" is hereby approved and the officers of the Corporation are authorized to execute and deliver the Agreement. PASSED, APPROVED, AND ADOPTED this -3 ,1;).;)./ 00 -1fVl {UJ)eL tlctct Secretary, Board of Directors . e CERTIFICATE FOR RESOLUTION We, the undersigned Mayor and City Secretary of the City of La Porte (the "City"), hereby certify as follows: 1. The City Council of the City (the "Council") convened in regular session, open to the public, on March 27, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll was called of the members, to wit: Norman L. Malone, Mayor, and Councilmembers Chuck Engelken, Jr., Guy Sutherland, Howard Ebow, Deotis Gay, Charlie Young, Jerry Clarke, Peter Griffiths, and Alton Porter. All members of the Council were present, except , constituting a quorum. Whereupon among other business, the following was transacted at the Meeting: a written resolution entitled RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE CITY OF LA PORTE DEVELOPMENT CORPORA nON (the "Resolution") was duly introduced for the consideration of the Council and read in full. It was then duly moved and seconded that the Resolution be finally passed and adopted; and after due discussion, such motion, carrying with it the adoption of the Resolution prevailed and carried by the following vote: YES:~ NOES: 0 ABSTENTIONS:L. 2. A true, full, and correct copy of the Resolution adopted at the Meeting is attached to and follows this Certificate; the Resolution has been duly recorded in the Council's minutes of the Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Council's minutes of the Meeting pertaining to the adoption of the Resolution; the persons named in the above and foregoing paragraph are duly chosen, qualified, and acting officers and members of the Council as indicated therein; each of the officers and members of the Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the Meeting, and that the Resolution would be introduced and considered for adoption at the Meeting and each of such officers and members consented, in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551, Texas Government Code, as amended. SIGNED AND SEALED TIDS March 27, 2000. ~dll JitlMI City ccretary City of La Porte, Texas ~~/ / : I -'./ . 7j, .~~ " { Mayor City of La Porte, Texas (SEAL)