HomeMy WebLinkAboutO-2004-2788
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ORDINANCE NO. 2004-r41f r
ORDINANCE AUTHORIZING THE ISSUANCE OF $7,000,000 CITY OE LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES.2004 AND OTHER MA TIERS RELATED THERETO-
WHEREAS, the City Council of the City of La Porte (the "Issuer" or the "City") deems it advisable to
issue Certificates of Obligation hereinafter described (the "Certificates") in the original aggregate principal amount
of $7,000,000 for the purpose of providing for the acquisition of land and construction of street and drainage
improvements for ~ay Area Boulevard and Canada Road, the acquisition of land for the police headquarters and
emergency operations center, and to pay for the costs associated with the issuance of the Certificates.
WHEREAS, the Certificates hereinafter authorized and designated are to be issued and delivered for cash
pursuant to Chapter 1502, Texas Government Code, as amended, and the Certificate of Obligation Act of 1971,
Section 271.041 et seq, Texas Local Government Code, as amended (the "Act");
WHEREAS, the City Council has heretofore, on September 27, 2004, passed a resolution authorizing and
directing the City Secretary to give notice of intention to issue the Certificates, which notice.bas been duly published
in the Bayshore Sun, which is a newspaper of general circulation in the City, in its issues of October 6, 2004 and
October 13, 2004, the date of the frrst publication being at least 14 days prior to the tentative date stated in the notice
for passage of this Ordinance;
WHEREAS, the City has received no petition from the qualified electors of the City protesting the issuance
of the Certificates; and
WHEREAS, it is considered to be in the best interest of the City that the Certificates be issued bearing the
date, interest rates, denominations, and maturities as hereafter provided;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS, THAT:
SECTION 1. AUTHORIZATION OF THE CERTIFICATES. There is hereby authorized to be issued and
delivered, a series of certificates of obligation of the City, to be known as "CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2004" (the "Certificates"), in the original aggregate principal amount
of $7,000,000 payable from ad valorem taxes and a limited pledge not to exceed $1,000 of the revenues of the City's
Waterworks and Sewer System, for the purposes described in the Form of Certificates contained in Section 3 hereof.
SECTION 2. DATE. DENOMINATIONS. NUMBERS. AND MATURITIES OF THE CERTIFICATES.
The Certificates shall be dated as of November 1, 2004, shall be in denominations of $5,000 each or any integral
multiple thereof, shall be numbered I-I for the Initial Certificate and consecutively from R-I upward for the
definitive certificates and shall mature on March 15 in each of the years as provided below. The Certificates shall
bear interest at the rates per annum shown below from the dated date, and payable on September 15, 2005 and on
each March 15 and September 15 thereafter through the respective maturity date as shown below:
Year of Principal Interest Year of Principal Interest
Maturity Pavment Rate Maturitv Pavment Rate
2006 $200,000 - % 2016 $345,000 _%
2007 210,000 2017 360,000
2008 220,000 2018 380,000
2009 235,000 2019 405,000
2010 245,000 2020 425,000
2011 260,000 2021 450,000
2012 275,000 2022 475,000
2013 290,000 2023 505,000
2014 305,000 2024 530,000
2015 325,000 2025 560,000
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SECTION 3. GENERAL CHARACTERISTICS AND FORM OF THE CERTIFICATES. The
Certificates shall be issued. shall be payable, shall have the characteristics, and shall be signed and executed (and the
Certificates shall b~ sealed} all as provided and in the manner indicated in the form set forth below. The Certificates
are subject to optional redemption as described in the FORM OF CERTIFICATES. The Form of the Certificates,
the Form of the Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed
and manually endorsed on th.e Initial Certificate, the Form of the Authentication Certificate, the Form of Statement
of Insurance, and :the Form of Assignment, which shall be, respectively, substantially as follows, with necessary and
appropriate v8rlations, omissions, and insertions as permitted or required by this Ordinance, and the definitions
contained within each such form shall apply solely to such form:
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FORM OF 'CERTIFICA TES
FORM OF DEFINITIVE CERTIFICATES
United States of America
State of Texas
NUMBER
R-
REGISTERED
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2004
INTEREST RATE:
MATURITY
DATE
DATED DATE
NOVEMBER 1,2004
_%
REGISTERED OWNER:
PRINCIPAL AMOUNT: $7,000,000
DENOMlNA TION
$
REGISTERED
CUSIP
THE CITY OF LA PORTE, TEXAS (the "Issuer" or the "City"), being a municipal corporation of the State
of Texas, promises to pay to the Registered Owner, specified above, or registered assigns (the "Registered Owner"),
on the Maturity Date, specified above, upon presentation and surrender of this Certificate at the agent of CHASE
BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, or its successor (the "Paying AgentlRegistrar"),
to wit: the Principal Amount, specified above, in lawful money of the United States of America, and to pay interest
thereon at the Interest Rate, specified above, calculated on the basis of a 360-day year of twelve 30-day months,
from the Dated Date, specified above. Interest on this Certificate is payable by check payable on September 15,
2005, and each March 15 and September 15 thereafter, mailed to the Registered Owner of record as shown on the
books of registration kept by the Paying AgentlRegistrar, as of the Record Date, or in such other manner as may be
acceptable to the Registered Owner and the Paying Agent/Registrar. The record date ("Record Date") for payments
hereon means the last calendar day of the month preceding a scheduled payment. In the event of a non-payment of
interest on a scheduled payment date, and for 30 days thereafter, a new record date for such payment (a "Special
Record Date") will be established by the Paying AgentlRegistrar, if and when funds for the payment thereof have
been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due
payment (the "Special Payment Date", which shall be 15 calendar days after the Special Record Date) shall be sent
at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the
address of the Registered Owner appearing on the books of the Paying Agent/Registrar at the close of business on
the last business day next preceding the date of mailing of such notice. The City covenants with the Registered
Owner that no later than each principal installment payment date and interest payment date for this Certificate it will
make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the Certificates, when due, in the manner set forth in the ordinance
authorizing the issuance of the Certificates adopted by the City Council of the City on October 25, 2004 (the
"Ordinance").
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. THIS CERTIFICATE is one of a series of Certificates (the "Certificates") dated as of the Dated Date,
specified above, of like designation, date; -.and tenor, except as to number, interest rate, denomination, and maturity
issued pursuant to the Ordinance in the original aggregate principal amount of $7,000,000 for the pwpose of
providing for the payment of contractual obligations to be incurred for the pwpose of providing for the acquisition
of land and construction of street and drainage improvements for Bay Area Boulevard and Canada Road, the
acquisition of land for the police headquarters and emergency operations center, and to pay for the costs associated
with the issuance of the Certificates.
*REFERENCE IS HEREBY MADE TO THE FURTIlER PROVISIONS OF TIllS CERTIFICATE SET
FORTIl ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND
EFFECf AS IF SET FORTH IN TIllS SPACE.
**IN WITNESS WHEREOF, this Certificate has been signed with the manual or facsimile signature of the
Mayor of the Issuer and countersigned with the manual or facsimile signature of the City Secretary of the Issuer, and
the official seal of the Issuer has been duly impressed, or placed in facsimile, on this Certificate.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
City Secretary
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Mayor
(CITY SEAL)
(Back Panel of Certificates)
THE CERTIFICATES are issued pursuant to the Ordinance whereunder the City Council of the City
covenants to levy a continuing, direct, annual ad valorem tax on taxable property within the City, within the limits
prescribed by law, for each year while any part of the Certificates are considered outstanding under the provisions of
the Ordinance, in a sufficient amount to pay interest on each Certificate as it becomes due, to provide a sinking fund
for the payment of the principal of the Certificates when due, and to pay the expenses of assessing and collecting
such tax, and this Certificate is additionally secured by and payable from a limited pledge not to exceed $1,000 from
the revenues of the Issuer's waterworks and sewer system (the "System"), which amount is payable from the
revenues remaining after payment of all operation and maintenance expenses of the System, and all debt service,
reserve, and other requirements in connection with all of the Issuer's revenue bonds or other obligations (now or
hereafter outstanding) which are payable from all or any part of the "Net Revenues" of the System. Reference is
hereby made to the Ordinance for provisions with respect to the custody and application of the City's funds,
remedies in the event of a default hereunder or thereunder, and the other rights of the Registered Owner. By
acceptance of this Certificate, the Registered Owner consents to all of the provisions of the Ordinance, a certified
copy of which is on file in the office of the City Secretary.
THE CITY RESERVES THE RIGHT to redeem the Certificates maturing on or after March 15, 2015, in
whole or in part, in integral multiples of $5,000, on March 15, 2014, or on any date thereafter. Such optional
redemptions shall be at a redemption price C?f par plus accrued interest on the principal amounts called for
redemption to the date fixed for redemption. If less than all of the Certificates are to be redeemed, the particular
Certificates to be redeemed shall be selected by the City in integral multiples of $5,000 within anyone maturity. At
least 45 days prior to the date fixed for any redemption of Certificates or portions thereof prior to maturity a written
notice of such redemption shall be given by the City to the Paying AgentlRegistrar, and the Paying AgentlRegistrar
shall send a copy of such notice at least 30 days prior to the date fixed for redemption by United States mail, first
class, postage prepaid, addressed to the registered owner of each Certificate to be redeemed in whole or in part at the
address shown on the Registration Books; provided, however, that the failure to send, mail, or receive such notice,
or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the
proceedings for the redemption of any Certificate. When Certificates or portions thereof have been called for
redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be
payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts
called for redemption shall tenninate on the date fixed for redemption.
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THIS CERTIFICATE IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender
at the designated payment office of the Paying AgentlRegistrar. If this Certificate is being transferred, it shall be
duly endorsed for transfer or accompanied by an assignment duly executed by the Registered Owner, or his
authorized representative, subject to the terms and conditions of the Ordinance. If this Certificate is being
exchanged, it shall be in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and
conditions of the Ordinance. The Registered Owner of this Certificate shall be deemed and treated by the City and
the Paying AgentlRegistrar as the absolute owner hereof for all purposes, including payment and discharge of
liability upon this Certificate to the extent of such payment, and the City and the Paying AgentlRegistrar shall not be
affected by any notice to the contrary.
IN THE EVENT any Paying Agent/Registrar for the Certificates is changed by the City, resigns, or
otherwise ceases to act as such, the City has covenanted in the Ordinance that it promptly will appoint a competent
and legally qualified substitute therefor, and cause written notice thereof to be mailed to the Registered Owners.
IT IS HEREBY CERTIFIED, COVENANTED, AND REPRESENTED that all acts, conditions, and things
necessary to be done precedent to the issuance of the Certificates in order to render the same legal, valid, and
binding obligations of the City have happened and have been accomplished and performed in regular and due time,
form, and manner, as required by law; that provision has been made for the payment of the principal of and interest
on the Certificates by the levy of a continuing, direct, annual ad valorem tax upon all taxable property within the
City, within the limit prescribed by law, and from the above described limited pledge of the surplus revenues of the
System; and that issuance of the Certificates does not exceed any constitutional or statutory limitation.
BY BECOMING the Registered Owner of this Certificate, the Registered Owner thereby acknowledges all
of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, and agrees that the
terms and provisions of this Certificate and the Ordinance constitute a contract between each Registered Owner and
the City.
FORM OF AUTHENTICATION CERTIFICATE
AUTHENTICA nON CERTIFICATE .
This Certificate of Obligation is one of the Certificates described in and delivered pursuant to the within-
mentioned Ordinance, and this Certificate has been issued in conversion of and exchange for, or replacement of, a
Certificate, Certificates, or a portion of a Certificate or Certificates of an issue which was originally approved by the
Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
JPMORGAN CHASE BANK
Dallas, Texas
Paying AgentlRegistrar
Registration Date:
By
Authorized Signature
. . .
FORM OF STATEMENT OF INSURANCE
[TO COME]
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Page 1 of2
Garrison, Bonnie
From: Rinehart, Phyllis
Sent: Tuesday, April 07, 2009 8:45 AM
To: Garrison, Bonnie
Subject: FW: signature on document
Bonnie,
Here is the response from the bond attorneys. I guess you could clip this note to the document.
Phyllis
From: Kubicek, Russ [mailto:rkubicek@winstead.com]
Sent: Tuesday, April 07, 2009 8:05 AM
To: Rinehart, Phyllis
Cc: Martin, Paul
Subject: RE: signature on document
Good Morning Ma'am:
The highlighted item is for the Authentication Certificate of the Paying Agent, which is
in a section we title, in effect, "General Characteristics and Form of the Bonds." We put
the form of the bond in the Resolution to define what the individual definitive bonds and
the initial bond will contain. The Paying Agent signed that block on every definitive
bond issued for this transaction, but the Certificate of Authentication is never signed in
the form of bonds in the Resolution.
Please do not hesitate to let me know if you have any questions or require any
additional information or assistance.
Russ Kubicek, Legal Secretary to M. Paul Martin
Winstead PC I 700 North St. Mary's Street I Suite 1900 I San Antonio, Texas 78205
210.277.6806 direct I 210.277.6810 fax I rkubicek@wim;teCid.com I www.winstead.com
From: Rinehart, Phyllis [mailto:RinehartP@laportetx.gov]
Sent: Tuesday, April 07, 2009 7:54 AM
To: Kubicek, Russ
Subject: RE: signature on document
Russ,
Weare looking for a document with a signature from JP Morgan. I highlighted the blank signature line.
Thanks,
4/7/2009
Page 2 of2
Phyllis Rinehart
From: Kubicek, Russ [mailto:rkubicek@winstead.com]
Sent: Monday, April 06, 2009 5:08 PM
To: Rinehart, Phyllis
Subject: RE: signature on document
ON BEHALF OF M. PAUL MARTIN.
Good Afternoon Ms. Rinehart:
To our knowledge, the document you have is probably a working copy. We checked our transcript,
and enclosed is a certified copy of the Resolution. We hope this takes care of your requirements. Please
let us know if we can be of service at any time in the future.
Russ Kubicek, Legal Secretary to M. Paul Martin
Winstead PC I 700 North St. Mary's Street I Suite 1900 I San Antonio, Texas 78205
210.277.6806 direct I 210.277.6810jax I rkubicek@\Vinst~ad-,-com I www.winstead.com
IRS Circular 230 Required Notice--IRS regulations require that we inform you as follows: Any U.S.
federal tax advice contained in this communication (including any attachments) is not intended to be
used and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or
(ii) promoting, marketing or recommending to another party any transaction or tax-related matter[s].
Information contained in this transmission is attorney privileged and confidential. It is intended for the
use of the individual or entity named above. If the reader of this message is not the intended recipient,
you are hereby notified that any dissemination, distribution or copy of this communication is strictly
prohibited. If you have received this communication in error, please immediately notify us by telephone.
IRS Circular 230 Required Notice--IRS regulations require that we inform you as follows: Any U.S. federal tax advice contained in this communication
(including any attachments) is not intended to be used and cannot be used, for the purpose of (I) avoiding penalties under the Internal Revenue Code or
(ii) promoting, marketing or recommending to another party any transaction or tax-related matter[s].
Information contained in this transmission is attorney privileged and confidential. It is intended for the use of the individual or entity named above. If the
reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copy of this communication is strictly
prohibited. If you have received this communication in error, please immediately notify us by telephone.
4/7 /2009
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
October 25. 2004
Appropriation
Requested By: Cynthia AIf>Yandpr,
Source of Funds: N/A
Department: Flbl "-NeE
Account Number: N/A
Report:
Resolution:
Ordinance:
xxx
Amount Budgeted: N/A
Exhibits:
Ordinance
Amount Requested: L\T'''-
Exhibits:
Budgeted Item: YES NO
Exhibits:
SUMMARY & RECOMMENDATION
First Southwest Co. Inc. will be receiving bids on behalf of the City of La Porte until 5:00 pm on Monday, October
25,2004 for $7,000,000 in Certificates of Obligation (Bonds).
The Certificates will be designated as "Qualified Tax Exempt Obligations" for financial institutions. The Bonds will
be dated November 1, 2004. Interest on the Bonds will accrue from November I, 2004 and will be due on March
15,2005 and each September 15 and March 15 thereafter until final maturity.
The proceeds from the bonds will be used for the following projects:
$4,400,000 for Bay Area Boulevard Extension;
$ t ,900,000 for Canada Road Paving and Drainage; and
$ 700,000 for Purchase of Land for Police Headquarters.
Action Reauired bv Council:
Approve ordinances authorizing the issuance of $7,000,000 in Certificates of Obligation.
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