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HomeMy WebLinkAboutItem 07 - Certificates of Obligation;ii !Iir!�iziffegx IN FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: DECEMBER 2, 2014 SUBJECT: CONSIDER A RESOLUTION TO SELL CERTIFICATES OF OBLIGATION IN AN AMOUNT NOT TO EXCEED $12,500,000 City Council to consider a resolution to sell Certificates of Obligation in an amount not to exceed $12,500,000 This action allows the City to proceed with the intent to sell Certificates of Obligation. The Certificates will provide funding for the following items: $900,000 Fire Truck (Quint) Replacement $500,000 Replace Two Ambulances $350,000 Replace 1996 Blownox Paver $300,000 Jenkins/Wall Street Parking Lot $10,000,000 Water and Wastewater Projects It is anticipated that the sale of the Certificates will take place at the January 20, 2015 City Council Meeting. Staff recommends approval. RESOLUTION NO. &rl OP oduGA-r/s/J A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, RELATING TO THE GIVING OF NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2015 AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the "City"), pursuant to Subchapter C, Chapter 271, Texas Local Government Code, as amended, is authorized to issue its certificates of obligation (the "Certificates") for the purpose of paying contractual obligations to be incurred for the purposes set forth below; and WHEREAS, the City Council of the City has found and determined that a notice of intention to issue certificates of obligation should be published in accordance with the requirements of applicable law; WHEREAS, it is hereby found and determined that the meeting at which this resolution is considered is open to the public as required by law, and public notice of the time, place and purpose of said meeting was given as required by Chapter 551, Texas Government Code; and WHEREAS, all legal prerequisites for the adoption of this resolution have been met, including but not limited to the Local Government Code and the Open Meetinas Act; and WHEREAS, the City Council hereby declares that the approval of this resolution is in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, THAT: Section 1. That the findings and determinations set forth in the preambles hereto are hereby incorporated by reference for all purposes. Section 2. That the City Secretary of the City is hereby authorized and directed to cause to be published in the manner required by law and in substantially the form attached hereto as Exhibit "A", a notice of the City's intention to issue the Certificates (the "Notice"). Section 3. That the Notice shall be published once a week for two consecutive weeks, the date of the first publication being not less than thirty-one (31) days prior to the date set forth in the Notice for passage of the ordinance authorizing the Certificates. Such Notice shall be published in a newspaper of general circulation in the area of the City of Grapevine, Texas. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 2nd day of December, 2014. ATTEST: RES. NO. 2 NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that on January 20, 2015, the City Council of the City of Grapevine, Texas, at 7:30 p.m. at a regular meeting of the City Council to be held in the Council Chambers at the City Hall, 200 S. Main St., Grapevine, Texas, the regular meeting place of the City Council, intends to pass an ordinance authorizing the issuance of not to exceed $12,500,000 total principal amount of Certificates of Obligation for the purpose of paying contractual obligations to be incurred for the following purposes, to wit: (a) constructing, installing, acquiring and equipping additions, extensions and improvements to the City's waterworks and sewer system, (b) acquiring equipment and vehicles for the public safety, fire and public works departments, (c) constructing a public parking lot in downtown Grapevine (collectively, the "Project"), and (d) paying professional services of attorneys, financial advisors and other professionals in connection with the Project and the issuance of the Certificates. The Certificates shall be issued in one or more series, shall bear interest at a rate not to exceed fifteen percent (15%) per annum, and shall have a maximum maturity date of not later than forty (40) years after their date. Said Certificates shall be payable from the levy of a direct and continuing ad valorem tax against all taxable property within the City sufficient to pay the interest on this series of Certificates as due and to provide for the payment of the principal thereof as the same matures, as authorized by Chapter 271, Subchapter C, Texas Local Government Code, as amended, and from all or a part of the surplus revenues of the City's waterworks and sewer system. THIS NOTICE is given in accordance with law and directed by the City Council of the City of Grapevine, Texas. GIVEN THIS December 2, 2014. /s/ Jodi Brown, City Secretary City of Grapevine, Texas