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HomeMy WebLinkAboutResolution No. 2016-12 I RESOLUTION NO.R2016-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, APPROVING THE SEVENTH BOND ISSUANCE OF THE WEST RANCH MANAGEMENT DISTRICT,FOR THE PROPOSED AMOUNT OF$395009000. 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. 82009-71; 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 j I Fk 4 t i 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 j 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. i R2012-31; and WHEREAS, 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 District made application for its sixth issuance of bonds in 2014 for the amount of$9,735,000 and the City approved the issuance on September 8, 2014, by Resolution No. R2014-19; and WHEREAS, despite the prior authorizations, the District has only issued $18,623,288 worth of eligible projects out of the$20,340,000 available; and WHEREAS,the City is agreeable to approving the District's request for a seventh issuance of bonds and authorizing the District to issue bonds in the proposed amount of$3,500,000, which includes $2,080,000 of new debt and up to $1,420,000 worth of refunding bonds, subject to certain conditions as set forth herein; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS: 82016-12 2 Section 1. That the City Council of the City of Friendswood, Texas ("City"), hereby approves and authorizes the West Ranch Management District's seventh issuance of bonds in the proposed amount of $3,500,000, which includes $2,080,000 of new debt and up to $1,420,000 worth of refunding bonds; provided that if the City notifies the District, of its intent to issue debt in calendar year 2017, 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 and if the City dissolves the District, takes over the assets of the District, and assumes all of the obligations of the District. Section 3. That the authorization set forth in Section 1 above is expressly conditioned upon the District's implementation of improvements as outlined in that certain letter by the District dated August 15, 2016, a true and correct copy of which is attached as Exhibit "A," providing for the completion of a portion of Friendswood Lakes Boulevard. PASSED,APPROVED,AND RESOLVED this 12th day of September,2016. IA tA Kevin M. land Mayor ATTEST: ®•rrrrrr • •d/ • °. Melinda Welsh, TRMC City Secretary • ° • o ♦'�FOF��. 82016-12 3 Exhibit R2016-12 WEST RANCH MANAGEMENT DISTRICT 3200 Southwest Freeway,Suite 2600 Houston,Texas 77027 August 15, 2016. The Honorable Mayor and City Council City of Friendswood,Texas 910 South Friendswood"Drive Friendswood Texas 77546 Re; West Ranch Management District Update Dear Mayor and Council: This letter is provided in connection with the proposed issuance of the West Ranch Management District's Series 2016 Bonds. You had requested a-it update from the Management District on improvements witlw.-.West Ranch. • Falcon 11id ,e Boulevard iA complete from West Blvd west to the Friend.swood.ISD Junior High School site. This is a -3,000 foot long collector read. Other improvements with the road include detention for the road improvements and a 12 waterline loop. This road was fast traded to open at the same time as the school, The road and waterline have been turned over to the City while the Management District continues to maintain the detention facilities, • West Boulevard is complete from FM 518 south to the city line. This is a -6,600 foot long,44ane divided thoroughfare with signalization at the intersection of FM 518. Other improvements with the road include detention for the road improvements,a 12'f waterline loop,an 8"to 12"sanitary sewer collection line,and a regional lift station. The road, waterline, sewer linee and lift station have been turned over to the City while the Management District continues to maintain the detention facilities. East Friendswvad Lake Boulevard is complete from west Boulevard east to the city limit line. This is a -1,000 foot long, 4-lane divided. thoroughfare. Other improvements with the road included the detention for the road improvements and a 12" waterline loop. The road and water line have been turned over to the City while the Management District continues to maintahl the detention facilities. 'Nest F'riendswo©d Lakes Boulevard from West Boulevard to the western boundaries of the Management District is -a -1,400 foot divided. 4-1ane thorou.gl-dare. The detention for the goad has been completed and is being Acrgust 2016 WRMD Update maintained by the Management District. Friendswood Development Company is preparing the preliminaryr plat for submittal to the City, It is anticipated this plat will be submitted on August 22,2016. The Management District has sigped contracts with the engineer to complete design of the water, sewer and drainage (the 'WS&D") for West Friendswood. Lakes Boulevard. The District's engineer eer should submit plans within 14 days of gm approval of the preliminary Plat. Upon approval of the design,-the Management District will bid the construction of these facilities, This is the last project associated with the Series 2015 WS&D Bond Issue No.3. The Management District has signed a contract with the engirleer to complete design of the paving for West Friendswood Lakes Boulevard. Upon approval of the design, the Management District will bid the construction of these facilities. This is the last project associated with the Series 2014 Road Bond Issue No. 3. Tile remalmillg funds from the Series 2015 WS&D Bond Issue No.3 and Series 2014 Road Bond Issue No. 3 are being held in escrow by the Management District and have been used only to fund projects on the original bond report. L.A(e Friendswood Parking Lot and Pavilion, The Management District has completed Davis Prairie Lane, the parking lot, fencing and design of the pavilion and restroom facility. Funds to construct the pavilion and restroom facility are included in the Series 2016 Rec,Bond Issue No. 2 which has not been authorized by the City: The Management District has received contracts for the construction of the pavilion and restroom facility which it will execute and conu-nence coast ruction of upon the bond sale. To date., —67% of the total planned homes,are occupied in West Ranch and nearly 89% of the road construction is complete. At the August 17th board meeting, the Management District voted to lower the District's tax rate $0.10 to $0.55 for 2016. We respectfully request the City approve the Series 2016 Rec.Bond Issue No. 2 and release the City's hold on acceptance of Arbor Gate Section 3,so the value in the district can continue to Acrease. If you have any questions please contact me at 281-874-8558. Sincerely, West Pal C�Magemeiit District n, By: Brian Gibson,President Board of Directors August 2016 WRMD Update