HomeMy WebLinkAboutItem 03 - Certificates of ObligationMEMO TO
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
ITEM* 3
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER
APRIL 5, 2005
RESOLUTION DIRECTING PUBLICATION OF A NOTICE OF
INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
City Council to consider approving a Resolution directing publication of a Notice of
Intention to issue Certificates of Obligation in the amount of $3,225,000.
FUNDING SOURCE:
Future issue of Certificates of Obligation for the purposes of acquisition of authorized
vehicles and equipment; a sign installation program; and issuance costs.
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 as follows:
To acquire vehicles and equipment authorized for purchase in the FY 2005 Budget.
To implement the Citywide "Way Finding Program" that has been authorized by the City
Council and will result in the installation of vintage signs about town.
The amounts and uses of the CO's stated in the Notice of Intention are as follows:
Authorized Vehicles and Equipment purchases (FY 2005 Budget) $2,725,000
Sign Program 500,000
Total $3,225,000
The sale date for the Certificates of Obligation is scheduled for May 3, 2005. If approved
by the Council, the required notices will be published April 11, 2005 and April 18, 2005.
A copy of the proposed notice is attached.
Staff recommends approval.
WAG/cjc
H:AGMNoticeoflntent4-5-2005
March 31, 2005 (8:22AM)
C 0
RESOLUTION NO.
A RESOLUTION RELATING TO THE GIVING OF NOTICE
OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2005 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 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, THAT:
Section 1. The findings and determinations set forth in the preambles hereto
are hereby incorporated by reference for all purposes.
Section 2. 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 2005
"NOTICE IS HEREBY GIVEN that on May 3, 2005, 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
$3,225,000 principal amount of Certificates of Obligation for the purpose of paying
contractual obligations to be incurred for the following purposes, to wit: (i) acquisition of
vehicles and equipment for various City departments; (ii) acquisition, construction and
installation of vintage signage in various locations throughout the City to implement the
Citywide "Way Finding Program" approved by the City Council; 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 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 Subchapter C, Chapter 271, 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 April 5, 2005.
/s/ Linda Huff
City Secretary
City of Grapevine, Texas"
Section 3. 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, APPROVED AND EFFECTIVE April 5, 2005.
RES. NO. 2
PRESENTED, FINALLY PASSED AND APPROVED, AND EFFECTIVE on the
5th of April, 2005, by a vote of ayes and nays at a regular meeting of
the City Council of the City of Grapevine, Texas.
Mayor, City of Grapevine, Texas
ATTEST:
City Secretary, City of Grapevine, Texas
APPROVED AS TO FORM:
City Attorney, City of Grapevine, Texas
RES. NO. 3
MINUTES AND CERTIFICATION PERTAINING TO
PASSAGE OF A RESOLUTION
On April 5, 2005, 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 Tern 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
2005
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:
ABSTENTIONS:
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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 April 5, 2005.
City Secretary
City of Grapevine, Texas
[SEAL]
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