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Home My WebLink AboutR-2007-09 notice of intention to issue certificates of obligation-acquisition/construction/improvements of certian public works City of La Porte Interoffice Memorandum From: John Joerns, Interim City er To: Mayor and City Council Date: Subject: April 18, 2007 City Council Meeting on April 23, 2007 - Item #7 This Public Notice as drafted removes the building known as 908 Main but retains the building known as 912 Main (See Notice (ii)). Michael Dolby is working on alternate financing plans for these buildings, which City Council may wish to consider before taking action on this item. This material will be provided later. JJ/ml c: Clark Askins REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 23. 2007 Appropriation Report: Resolution: XX Ordinance: Source of Funds: N/A Requested By: Michael G. Dolbv. Interim Dir of Finance Department: FINANCE Account Number: N/A Amount Budgeted: Amount Requested: N/A Exhibits: Notice of Intent Budgeted Item: Exhibits: SUMMARY & RECOMMENDATION At this time, we would like to issue Certificates of Obligation Bonds for the following projects: Waste Water Treatment Plant Amateur Ball Fields Golf Course Cart Paths 912 Main St Building Additional Funding (If needed) Total $6,000,000 1,600,000 300,000 250,000 550,000 $8,700,000 With the exception of additional funding for parks of 1,5 million, City Council has previously approved resolutions, which allow the City to reimburse itself from these bond proceeds for expenditures that were made prior to the issuance of the debt. This is a position that we have taken on several other projects in the past as recommended by bond counsel and required by federal law. In order to issue bonds, a city is required to publish a Notice of Intent (NOI) to Sale, We would like to publish the initial Notice ofIntent for Certificates of Obligation for a maximum principle $8,700,000 on Sunday April 29, 2007; and the second notice on Sunday May 6, 2007. RBC Dain Rauscher, the City's Financial Advisors, is preparing and will make available to us a Preliminary Official Statement which will be reviewed and updated by staff and approved by Council. Action Required bv Council: Authorize the sale of $8.7 million in Certificates of Obligation, approve and authorize the first and second publication of Notice of Intent to Issue, enda ~f7 Date RESOLUTION NO, 2007-1ft RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS; AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE s s s WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City"), is authorized to issue certificates of obligation to pay contractual obligations to be incurred for the construction of public works, for the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes, and for the payment of contractual obligations for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; WHEREAS, the City Council has determined that it is in the best interests of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $8,7 million styled "City of La Porte, Texas, Certificates of Obligation, Series 2007" (the "Certificates") for the design, engineering, acquisition and construction of certain public works and the purchase of certain equipment for authorized needs and purposes and for the payment of contractual obligations for professional services; WHEREAS, in connection with the Certificates, the City Council intends to publish notice of its intent to issue the Certificates (the "Notice") in a newspaper of general circulation in the City; WHEREAS, for purposes of providing for the sale of the Certificates, the City Council intends to authorize the preparation of a Preliminary Official Statement (the "Preliminary Official Statement") to be used in the public offering of the Certificates; and WHEREAS, the City Council has been presented with and has examined the proposed form of Notice and finds that the form and substance thereof are satisfactory. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1, Preamble. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. HOU267777],] Section 2, Authorization of Notice. The City Secretary is hereby authorized and directed to deliver the Notice, in the form set forth in Exhibit A hereto, and to publish such Notice on behalf of the City once a week for two (2) consecutive weeks in a newspaper which is of general circulation in the City, the date of the first publication to be at least fifteen (15) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. Notwithstanding any other provision of this Resolution, the Mayor and Interim City Manager are each hereby authorized to make or approve such revisions, additions, deletions, and variations to the Notice as, in the judgment of the Mayor and/or Interim City Manager and in the opinion of Bond Counsel to the City, may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution, or as may be required for approval of the Certificates by the Attorney General of Texas; provided, however, that any change to the Notice resulting in material substantive amendments shall be subject to the prior approval of City Council. Section 3, Authorization of a Preliminary Official Statement. This City Council hereby approves the preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of the Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the Mayor or other authorized officers and agents of the City. Section 4, Authorization of Other Matters Relating Thereto. The Mayor, City Secretary and other officers and agents of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this Resolution. Section 5. passage, Effective Date. This Resolution shall take effect immediately upon its Section 6. Public Meeting. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered at such meeting, including this Resolution, was given all as required by the Texas Government Code, Chapter 551, as amended. 2 HOU:267777],] I~.e (JlactdJ EXHIBIT A - Ve jI':;,: DV a NOTICE OF INTENTION TO ISSUE CERTIFICATES NOTICE IS HEREBY GIVEN that the City Council of the City of La Porte, Texas (the "City") will meet at its regular meeting place at City Council Chambers, City Hall, 604 West Fairmont Parkway, La Porte, Texas at 6:00 p,m. on May 14, 2007, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $1,000) subordinate pledge of certain revenues of the water and sewer system of the City, in the maximum aggregate principal amount of $8,7 million, bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the construction of public works, the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes, to wit (i) construction of an addition to and upgrading of the City's wastewater treatment plant, (ii) acquisition of land and a building at 912 Main Street to be used for municipal office facilities for the promotion of tourism and the convention and hotel industry, construction of improvements to and equipment of such building, and construction of a parking lot and landscaping improvements at such location, (iii) improvements to the City's Bay Forest Golf Course, including replacement of cart paths, tunnel and restrooms, (iv) construction of amateur ball fields and related infrastructure to be located South of Fairmont Parkway and East of Willow Spring Gulley, and (v) professional services rendered in connection with the above listed projects. HOU:26777711 txh;b,-J, Vc> r~'PJV L3 NOTICE OF INTENTION TO ISSUE CERTIFICATES NOTICE IS HEREBY GIVEN that the City Council of the City of La Porte, Texas (the "City") will meet at its regular meeting place at City Council Chambers, City Hall, 604 West Fairmont Parkway, La Porte, Texas at 6:00 p.m. on May 21, 2007, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $1,000) subordinate pledge of certain revenues of the water and sewer system of the City, in the maximum aggregate principal amount of $8.7 million, bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the construction of public works, the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes, to wit (i) construction of an addition to and upgrading of the City's wastewater treatment plant, (ii) improvements to the City's Bay Forest Golf Course, including replacement of cart paths, tunnel and restrooms, (iii) construction of amateur ball fields and related infrastructure to be located South of Fairmont Parkway and East of Willow Spring Gulley, and (iv) professional services rendered in connection with the above listed projects. t- o 0 N (/), u:l ~ (/), ~ ~. u:l ~ ~ , ~ r./1 ~ , ~ r, . u:l " (/), 0 ~ Z m ~ > m r, 0 t- ~ u:l 0 ~ 0 >- " ~ 0 ~ 0 CO ~ 0 < N ~ Cl a 0 r, v "' ~ l.r) ('r') Q ~ Z ~ ~ N . 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" c ~=?' =>c "Cl""l = t-- = -= = t=J) := => => aC => It'l r--: => => It'l => ~ ~ => => r--: => It'l ...c => => ~ It'l \C lI'i (%)1 => => lI'i <~ ~~ -9~ ~~ ~ ~~ .A~ ~~ ~ ~~ ~ ~~ ~ ~~ ~~ ~~ 6"6.:; ~/ &16.:; ~ <6.:; ~/ -96.:; ~/ ~6.:; ~ .A6.:; ~/ r6.:; ~ ~6.:; f/) ~ - ...., COQJ /6.,; U ."t: ~ ~/ ~ Q.~ => ~6.,; et:a~ "l ~/ .~ ~ CITY OF LA PORTE, TEXAS $8,325,000 Certificates of Obligation Series 2007 Tentative Schedule of Events \ I' I{ I I - 21111~ \I \ \ - 21111~ .I I 'I - 211117 S M T W T F S 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S M T W T F S 2 345 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3 4 5 6 7 8 9 S MTWTFS 2 10 11 12 \3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 DavlDate Monday, April 2 Tuesday, April 10 Monday, April 23 Tuesday, April 24 Monday, April 30 Sunday, April 29 Tuesday, May 1 Sunday, May 6 Monday, May ~ 2.,{ Wednesday, May 115 2, 3 Monday, May Y 2$ Tuesday, June% (1 Action First Draft of Preliminary Official Statement (p.O.S.) Second Draft ofP.O.S. (Forward to all Participants) City Council Reviews Schedule of Events and Authorizes Publication of Notice ofIntention to Issue Certificates of Obligation (Regular Council Meeting) Third Draft ofP.O.S. (Forward to Rating Agencies and Bond Insurers) Final Comments Due on P.O.S. Publish 1 st Notice ofIntention to Issue C.O.'s Print and Distribute P,O.S. Publish 2nd Notice ofIntention to Issue e.O.'s City Council Adopts Order Authorizing the Issuance of the c.o.'s Review Final Official Statement Print Final Official Statement Delivery of Bonds P ARTICIP ANTS City - City of La Porte, Texas RBC - RBC Capital Markets AK - Andrews Kurth LLP Participants RBC, City, AK RBC, City, AK RBC, City, AK RBC, City, AK RBC, City, AK City, AK RBC City, AK RBC, City, AK RBC, City, AK RBC RBC, City, AK IRBe .~ Capital ., . Markets