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HomeMy WebLinkAboutR-1990-03 e e RESOLUTION NO. 90-3 RESOLUTION REQUESTING APPROVAL OF RELEASE OF FUNDS FROM ESCROW WHEREAS, the Texas Water Commission (the "Commission"), by Order dated February 17, 1984 (the "Order"), approved an application for approval of an engineering project and bonds in the amount of $3,350,000 submitted by the College View Municipal Utility District (the "District"); and WHEREAS, the Order required, among other things, that the District deposit in escrow the sum of $2,532,000 of the proceeds from the sale of such bonds until the Commission had received and approved plans and specifications for the construction of (a) a 310,000 gallon elevated water storage tank" ($356,500), (b) an 18 inch sanitary sewer main from the District to the City of La Porte's sewage treatment plant ($1,543,000) and (c) a 550,000 gpd expansion to the City of La Porte's sewage treatment plant ($632,500, the Order also requiring an amended waste discharge permit for such expansion); and WHEREAS, the District subsequently issued and sold, pursuant to and in accordance with the terms of the Order, its Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1984, Dated as of February 15, 1984, in the aggregate principal amount of $3,350,000; and WHEREAS, pursuant to the requirements of the Order, the District placed in escrow with the First City National Bank of Houston, and its successor First City Texas (the "Bank") the sum of $2,532,000 pursuant to an Escrow Agreement between the Bank and the District dated March 26,1984 (the "Escrow Agreement"), providing for such sum to be held in escrow by the Bank until it received written authorization, approval or other instructions from the Commission to deliver said sum or any part thereof and any interest earned thereon to, or in accordance with the directions of, the District; and, WHEREAS, by Ordinance No. 1393, the City Council of the City of La Porte, Texas ( the "City"), duly annexed all of the territory within the District and, by Ordinance No. 1400, the City abolished the District effective March 27, 1984, and on such date the City took over all of the properties and assets of the District, assumed all debts, liabilities and obligations of the District and commenced to perform all functions and services of the District; and WHEREAS, the City obtained an amended waste discharge permit authorizing said 550,000 gpd expansion of its sewage treatment plant, and the City submitted to the Commission plans and specifications for the construction of such expansion and for the construction of said 18 inch sanitary sewer main (the "Fairmont Parkway Relief Sanitary Sewer"); and e e Resolution 90-3, Page 2 WHEREAS, the City requested that the Commission release from escrow the amount of $2,175,500 to proceed with construction; and WHEREAS, the Commission subsequently released from escrow $2,175,500 for the construction of the Expansion of the La Porte Sewage Treatment Plant and the construction of the Fairmont Parkway Relief Sanitary Sewer, and construction was completed on July 27, 1988; and WHEREAS, the City has retained prepare plans and specifications for 500,000 gallon elevated water storage lines (the "Project"); and engineering services to the construction of a tank and related water WHEREAS, the City desires to secure the release from escrow the amount of $356,500 in order to proceed with the construction of the Project; therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. That the recitals in the preamble of this Resolution be, and are hereby, adopted as findings of fact by the City Council of the City and made a part of this Resolution for all purposes, and the terms defined in said recitals shall have the same respective meanings when used in the body of this Resolution. Section 2. That a copy of this Resolution, duly certified by the City Secretary, shall be filed with the Texas Water Commission as a formal request by the City for authorization, approval or instruction of the release of the amount of $356,500, plus all interest earned thereon, from escrow with the Bank pursuant to the Escrow Agreement, in order that such funds may be utilized to pay the costs of the construction of the Project. Section 3. That the appropriate officers of the City and the City's Engineer and Attorney be, and they are hereby, respectively authorized and directed to execute and deliver all such documents and take all such further action as they, or any of them, may deem necessary or appropriate in order to secure the release of such funds from escrow or otherwise to carry out the spirit and intent of this Resolution. , ~ . e Resolution 90-3, Page 3 Section 4. That this Resolution shall be effective from and after its adoption. Passed 'and approved on the ~'~day of March, 1990. ~~~ P'M yor, City 0 L Porte ATTEST: ~&d . City Secretary, City of La Porte [SEALl APPROVED: tZ;r:J City Attorney, City of La Porte