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Home My WebLink AboutItem 22 - Certificates of ObligationITEM 2 Z MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER` �,/ MEETING DATE: FEBRUARY 15, 2000 SUBJECT: RESOLUTION DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION RECOMMENDATION: City Council to consider approving a Resolution directing publication of a Notice of Intention to issue Certificates of Obligation. FUNDING SOURCE: Future issue of Certificates of Obligation for the purpose of acquisition of authorized vehicles and equipment and public safety radio system improvements for the City of Grapevine. BACKGROUND: This item is placed on the agenda pursuant to direction from Bond Counsel in order to meet necessary requirements for selling Certificates of Obligation. Funding from the sale of the Certificates will be used for acquiring vehicles and equipment authorized for purchase in the FY 2000 Budget and for funding the public safety radio system improvements which have previous been reviewed with the City Council. Staff has carefully analyzed the investment market and recommends that third party financing is the financially prudent way to proceed with acquisition of vehicles and equipment from the lease fund. We anticipate the CO's to be financed at an interest rate of approximately 5.25%; whereas the City's investment portfolio is currently earning 5.75%. It is to the City's advantage to keep our cash invested through the lease fund and finance the equipment acquisition with CO's. As previously presented to the Council, the radio system improvements are critically important to the continued high level of public safety services performed by the Police and Fire Departments of Grapevine. A state of the art radio system is vital to police and fire February 8, 2000 (4:52PM) personnel as they perform their duties in the City. (The portion of the CO's radio system will pay for the required equipment and improvements.) The amount and uses for the CO's stated in the notice of intent is as follows: Authorized Vehicles and Equipment purchases (FY 2000 Budget) $1,550,600 Radio System Improvement (800MHz and 911 Systems) 4,041,669 Issuance Costs $42,731 Total $5,635,000 The Certificates are tax pledges, which are used to get the optimum interest rate and lower debt costs. The sale date is schedule for March 7, 2000, along with Phase 11 of the General Obligation Bond sale from the December 1998 bond election. If approved by Council, the required notice will be published February 17 and February 24, 2000. A copy of the notice is attached. Staff recommends approval. WAG/cjc Kagmnoticeintent February 8, 2000 (4:52PM) RESOLUTION NO. 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 2000 AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the "City"), pursuant to Section 271.041- .063, Texas Local Government Code, as amended, is authorized to issue its certificates of obligation 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; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: 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 issue a notice of intention to issue certificates of obligation in substantially the following form: "NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2000 "NOTICE IS HEREBY GIVEN that on March 7, 2000, 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 at the City Hall, 200 Main Street, Grapevine, Texas, the regular meeting place of the City Council, intends to pass an ordinance authorizing the issuance of not to exceed $5,635,000 principal amount of Certificates of Obligation for the purpose of paying contractual obligations to be incurred for the following purposes, to wit: (i) purchase, construction, relocation and upgrade of public safety radio communications system and 911 system, including equipment relating thereto; (ii) purchase of vehicles and equipment for City Services (collectively, the Project); and (iii) to pay for professional services of attorneys, financial advisors and other professionals in connection with the Project and the issuance of the Certificates. The Certificates 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 GRA325/71002 O: \ RESOLUTE\2000 \02-15-2000 \ RESOLUT3. DOC 02/02/00:4:21 PM 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 Section 271.041-.063, Texas Local Government Code, as amended, and from all or a part of the surplus revenues of the City's waterworks and sewer system, such pledge of surplus revenues being limited to $1,000. "THIS NOTICE is given in accordance with law and as directed by the City Council of the City of Grapevine, Texas. "GIVEN THIS February 15, 2000. / s/ Linda Huff City Secretary City of Grapevine, Texas" Section 3. That the foregoing notice shall be published once a week for two consecutive weeks, the date of the first publication being not less than the fourteenth (14th) day prior to the date set forth in the foregoing notice for passage of the ordinance authorizing the Combination Tax and Revenue Certificates of Obligation. 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 15th day of February, 2000. William D. Tate Mayor, City of Grapevine, Texas ATTEST: Linda Huff City Secretary, City of Grapevine, Texas APPROVED AS TO FORM: John Boyle City Attorney, City of Grapevine, Texas GRA325/71002 O:\RESOLUTE\2000\02-15-2000\RESOLUT3.DOC 02/02/00:4:21PM -2- PRESENTED, FINALLY PASSED AND APPROVED, AND EFFECTIVE on the 15th day of February, 2000, by a vote of ayes and — nays at a regular meeting of the City Council of the City of Grapevine, Texas. 11VU-6ma Linda Huff City Secretary, City of Grapevine, Texas APPROVED AS TO FORM: John Boyle City Attorney, City of Grapevine, Texas William D. Tate Mayor, City of Grapevine, Texas MINUTES AND CERTIFICATION PERTAINING TO PASSAGE OF A RESOLUTION STATE OF TEXAS COUNTY OF TARRANT CITY OF ARLINGTON On the 15th day of February, 2000, the City Council of the City of Grapevine, Texas, convened at 7:30 p.m., in a regular meeting at the regular meeting place thereof, the meeting being open to the public and notice of said meeting, giving the date, place and subject thereof, having been posted as prescribed by Chapter 551, Texas Government Code, as amended; and the roll was called of the duly constituted officers and members of the City Council, which officers and members are as follows: William D. Tate, Mayor C. Shane Wilbanks ) Ted R. Ware, Mayor Pro Tem Sharron Spencer ) Members of Clydene Johnson ) the Council Darlene Freed ) Roy Stewart ) and all of said persons were present except , thus constituting a quorum. Whereupon, among other business, a written resolution bearing the following caption was introduced: ` A Resolution Relating to the Giving of Notice of Intention to Issue City of Grapevine, Texas Combination Tax and Revenue Certificates of Obligation, Series 2000 The Resolution, a full, true and correct copy of which is attached hereto, was read and reviewed by the City Council. Thereupon, it was duly moved and seconded that the Resolution be finally passed and adopted. The Presiding Officer put the motion to a vote of the members of the City Council, and the Resolution was finally passed and adopted by the following vote: AYES: NAYS: GRA325/71002 O: \ RESOLUTE\2000 \02-15-2000 \ RESOLUT3. DOC 02/02/00:4:21PM MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT, and to correctly reflect the duly constituted officers and members of the City Council of said City, and the attached and following copy of said Resolution is hereby certified to be a true and correct copy of an official copy thereof on file among the official records of the City, all on this the day of February, 2000. City Secretary City of Grapevine, Texas [SEAL]