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Home My WebLink AboutR-2006-06 authorize sale of $5.8 million in Certificate of Obligation and in the $1.2 million in General Obligation Bonds /' "-" REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: Michael G. Dolbv. Asst Dir of Finance Department: FINANCE Appropriation Agenda Date Requested: March 13. 2006 Report: Resolution: XX Ordinance: Source of Funds: N/A I / Account Number: NI.,~/ Amount Budgeted: / Amount Requested: NlA Exhibits: Budgeted Item: Exhibits: SUMMARY & RECOMMENDATION At this time, we would like to issue Certificates of Obligation Bonds and General Obligation Bonds for the following projects: Parks Improvement Police Headquarters Sports Complex TIRZ Infrastructure Bayshore Sewer Total $1,200,000 2,800,000 2,000,000 650,000 350,000 $7,000,000 City Council has previously approved resolutions that 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 (NO!) to Sale. We would like to publish the initial Notice of Intent for Certificates of Obligation in the amount of $5,800,000 on Saturday, April 1 2006; and the second notice on Saturday, April 8, 2006. We are also requesting that the previously voter approved General Obligation Bonds of $1 ,200,000 for Parks Improvement be approved for issuance. 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 that must also be approved by Council. Action Required bv Council: Authorize the sale of $5.8 million in Certificates of Obligation and the $1.2 General Obligation Bonds; approve and authorize the first and second publication of Notice of Intent to Issue. 3--7-ok Date RESOLUTION NO. 2006-~f.o RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $6,100,000 MILLION 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, t4e 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 $6,100,000 styled "City of La Porte, Texas Certificates of Obligation, Series 2006" (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. HOU:2554122.1 Section 2. Authorization of Notice. The City Secretary is hereby authorized and directed to deliver the Notice 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. 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. HOU:2554122.1 PASSED AND ADOPTED the .fi!aay of March _, 2006. ~?~ Mayor ATTEST: (Seal) HOU:2554122.1 EXHIBIT 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 ~~n April 24, 2006, 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 waterworks and sewer system of the City, in the maximum aggregate principal amount of $6,100,000, 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 a Police Headquarters located at 23rd Street and Spencer Highway in the City, (ii) construction of a new Sports Complex located on the south side of Spencer Highway and the eastside of Spring Creek Gulley in the City, (iii) construction of trunk sewer mains, lift station, and related facilities between Highway 146 and Broadway in the City, (iv) various additional water and sewer improvements within the City, and (v) professional services rendered in connection with the above listed projects. Dated the .et!:day o~ ' 2006 L1!ld)f/r it 1141/ City Secretary City of La Porte, Texas HOU:2554122.1