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HomeMy WebLinkAboutResolution No. 2014-19 RESOLUTION NO.R2014-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, APPROVING THE SIXTH BOND ISSUANCE OF THE WEST RANCH MANAGEMENT DISTRICT,FOR THE PROPOSED AMOUNT OF$9,735,000. WHEREAS, in Resolution No. R2007-07, the City of Friendswood consented to the creation of the West Ranch Management District (the "District"), a municipal management district created by an Act of the 79th Legislature (SB 1806)in 2005; and WHEREAS, the District entered into a Utility Services Agreement with the city effective August 15,2005; and WHEREAS, the conditions to the City's consent to formation of the District and the Utility Services Agreement provided for the issuance of bonds by the District, under certain terms and conditions; and WHEREAS, the District made application for its first issuance of bonds in 2009 for the amount of$8,100,000 and the City approved the issuance on December 7, 2009, by Resolution No. R2009-71; WHEREAS,the District actually issued bonds in the amount of$6,740,000; and WHEREAS, the District made application for its second issuance of bonds in 2010 for the amount of$1,815,000 and the City approved the issuance on October 18, 2010, by Resolution No. R2010-41; and WHEREAS, the District made application for its third issuance of bonds in 2011 for the amount of$4,790,000 and the City approved the issuance on November 7, 2011, by Resolution No. R2011-38; and WHEREAS, the District made application for its fourth issuance of bonds in 2012 for the amount of$1,390,000 and the City approved the issuance on November 5, 2012, by Resolution No. R2012-31;and WHERE S, the District made application for its fifth issuance of bonds in 2013 for the amount of$1,270,000 and the City approved the issuance on October 7, 2013, by Resolution No. R2013-19; and WHEREAS,the City is agreeable to approving the District's request for a sixth issuance of bonds and authorizing the District to issue bonds in the proposed amount of $9,735,000, which includes a$660,000 bond anticipation note, subject to certain conditions; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS: Section 1. That the City Council of the City of Friendswood, Texas ("City"), hereby approves and authorizes the West Ranch Management District's sixth issuance of bonds in the proposed amount of$9,735,000, which includes a bond anticipation note of $660,000; provided that if the City notifies the District, of its intent to issue in calendar year 2015,the District shall not issue tax-exempt bonds in the applicable calendar year in any amount (determined by the City's staff financial advisor) that would cause the City's tax-exempt bonds to be ineligible as "qualified tax exempt obligations"for purposes of section 265(b)of the Internal Revenue Code of 1986. Section 2. That the pledge of any revenues from the operation of the District's water and sewer and/or drainage system to the payment of the District's bonds shall terminate when 82014-19 2 and if the City dissolves the District, takes over the assets of the District, and assumes all of the obligations of the District. PASSED,APPROVED,AND RESOLVED this 8th day of September,2014. Kevin M. Holla I Mayor ATTEST: �� ,••pF FRIES/®•,° Melinda Welsh, dTRMC '•�� ®00 City Secretary ° °°(P ° 9 . F®F fE ° 82014-19 3