HomeMy WebLinkAboutItem 06 - Notice of Intent to Finance Expenditures ITS
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER KIL
MEETING DATE: SEPTEMBER 7, 2010
SUBJECT: RESOLUTION EXPRESSING INTENT TO FINANCE
EXPENDITURES TO BE INCURRED AND PROVIDING AN
EFFECTIVE DATE
RECOMMENDATION:
City Council to consider approving a resolution directing publication of a Notice of Intention
to issue Certificates of Obligation in the amount of$500,000.
FUNDING SOURCE:
Future issue of Certificates of Obligation for the purposes of improvements to Lake Parks
capitalized interest 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:
Lake Parks Improvements
Construction — Cabins, Camp Store, Docks, Trees and Supplies
(see attached memo of August 12, 2010) $500,000
The sale date for the Certificates of Obligation is scheduled for October 19, 2010. If
approved by the Council, the required notices will be published September 11, 2010 and
September 18, 2010. A copy of the proposed notice is attached.
The sale will be a private placement with a local bank. There will be an option of the City to
pre-pay any or all prior to maturity of the Certificates of Obligation. Additional cabin
revenue will cover the cost of the debt service and operations costs associated with the
cabins (see attached memo from Administrative Services Director).
Staff recommends approval.
MEMORANDUM CITY OF GRAPEVINE TX
TO: JOHN McGRANE, DIRECTOR OF ADMINISTRATIVE SERVICES
FRED WERNER, MANAGING DIRECTOR OF FINANCIAL SERVICES
FROM: JOE MOORE, ASSISTANT DIRECTOR, PARD
DATE: AUGUST 12, 2010
SUBJECT: THE VINEYARDS CAMPGROUND: FINANCING AMENITIES
The amenities for the financing proposal for The Vineyards Campground are the
following:
Full service cabins, purchased, delivered setup, decked, skirted, HV/AC installation,
supplies, linens, and amenities.
7 cabin units $50,000 ea. $350,000
Campstore is the same size as cabins, with a handicap restroom and no interior walls.
Shelving, vending machines, coolers, and racks will be purchased to outfit store.
There will be a porch the same size of the store constructed at the front in a "cracker
barrel" style format for seating, socializing, and activities.
1 campstore unit $50,000 $ 50,000
Boat ramp courtesy dock to provide a docking area for boats after launching at the
campground boat ramp
Ramp courtesy dock $25,000 $ 25,000
Courtesy docks for RV sites allow for temporary docking of boats that campers bring
to the campground.
4 RV site courtesy docks $ 6,750 ea. $ 27,000
The Corps of Engineers requires mitigation of any tree removal to be 3 times the
diameter inches of trees removed. For this project, the City will need to mitigate 330
inches of trees. The 2" — 3"trees are estimated to cost $300 each, container grown,
planted, and guaranteed.
160 Landscape Trees $300 ea. $ 48,000
Grand Total $500,000
MEMORANDUM CITY OF GRAPEVINE TEXAS
TO: Bruno Rumbelow, City Manager /
FROM: John McGrane, Administrative Service Director
DATE: September 2, 2010
SUBJECT: Vineyards Campground — New Cabins and Camp Store
It is anticipated that the 7 new cabins will generate an addition $139,400 and the camp
store $40,000 in increased revenue. The amount for the cabins is calculated using
current fees at a 50% occupancy rate.
The operational cost for the units will run $50.00 per occupied day. Again at the 50%
occupancy rate, the estimated annual operation cost for the new units is $63,875. The
average annual debt service for the $500,000 CO's is $59,700.
Based on these assumptions, the annual Revenue/Expense should be as follows:
Revenues (7 new units and camp store) $179,430
Expenses
Operation expense $ 63,875
Debt Service 59,691 $ 123,566
Excess Revenues over Expenses: $ 55,734
If you need any additional information just let me know.
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED 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; and
WHEREAS, all statutory and legal prerequisites for the passage of this resolution
have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council of the City has determined that it is in the best
interest of the health, safety, and welfare of the citizens of Grapevine, Texas to adopt
this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the findings and determinations set forth hereinabove are
found to be true and correct and 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 CERTIFICATES OF
OBLIGATION, SERIES 2010
NOTICE IS HEREBY GIVEN that on October 19, 2010, 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 South Main Street, Grapevine, Texas, the regular meeting
place of the City Council, intends to pass an ordinance authorizing the issuance of not
to exceed $500,000.00 principal amount of Certificates of Obligation for the purpose of
paying contractual obligations to be incurred for the following purposes, to wit: (i)
designing, constructing, improving, renovating and equipping the Vineyards
Campgrounds, the "Project"), (ii) payment of 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 five percent
(3.50%) per annum, and shall have a maximum maturity date of not later than ten (10)
years after their date. Said Certificates shall be payable from the levy of a direct and
continuing ad valorem tax against all taxable properly 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.
THIS NOTICE is given in accordance with law and as directed by the City
Council of the City of Grapevine, Texas.
GIVEN THIS September 7, 2010.
Is/ 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 thirtieth
(30th) 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 7th day of September, 2010.
APPROVED:
RES. NO. 2
ATTEST:
APPROVED AS TO FORM:
RES. NO. 3