Loading...
HomeMy WebLinkAboutORD 81-97 . e Ordinance 9/- 9 7 ORDINANCE AUTHORIZING ADVANCE REFUNDING OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE REFUNDING BONDS, SERIES 1959, AND CITY OF BEAUMONT, TEXAS, WATERWORKS SYSTEM REVENUE BONDS, SERIES 1971-A, SERIES 1972-A AND SERIES 1978-A WHEREAS, the City of Beaumont, Texas (the "City" ) desires to refund, in advance of their maturities, the outstanding bonds of the City' s Waterworks System Revenue Refunding Bonds, Series 1959, and its Waterworks System Revenue Bonds, Series 1971-A, Series 1972-A and Series 1978-A (the "Refunded Bonds" ) in order to terminate and discharge, and release the City from, the terms and provisions of the ordinances authorizing the issuance of the Refunded Bonds, which have been found to be onerous and unfavorable to the City, and thereby further permitting the City to finance greatly needed waterworks and sewer system facilities and improvements that could not other- wise be financed through the issuance of revenue bonds under the terms and provisions of such ordinances, and further to permit the City to combine the City' s waterworks system and sewer system into a single system and to issue revenue bonds secured by the pledge of the combined revenues thereof; and WHEREAS, the City is authorized by Article 717k, Vernon' s Texas Civil Statutes, as amended, to issue, sell and deliver refunding bonds in amounts sufficient to provide for the pay- ment of the principal of and interest on the Refunded Bonds; and WHEREAS, contemporaneously herewith, the City has adopted an ordinance (the "Bond Ordinance" ) authorizing the issuance of the $3, 740, 000 City of Beaumont, Texas, Waterworks and Sewer System Revenue Refunding Bonds, Series 1981 (the "Refund- ing Bonds" ) , for the purpose of providing funds to be used in refunding the Refunded Bonds; and WHEREAS, the City desires to enter into an Escrow Agree- ment with Texas Commerce Bank-Beaumont N.A. , Beaumont, Texas, as escrow agent, and First Security National Bank, Beaumont, Texas, pursuant to which provision will be made for the safe- keeping, investment, reinvestment, administration and disposi- tion of funds so as to make firm banking arrangements to provide for the full and timely payment of principal of and interest on the Refunded Bonds; and -�i- 97 Page 2 WHEREAS, the City desires to authorize the subscription for certain book entry United States Treasury certificates of indebtedness, notes and bonds and other obligations of the United States of America to be purchased with the Refunding Bond proceeds for deposit into such escrow; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1: Escrow Agreement. The discharge and defeasance of the Refunded Bonds shall be effectuated pursuant to the terms and provisions of an Escrow Agreement to be entered into by and between the City and Texas Commerce Bank-Beaumont N.A. , Beaumont, Texas, as Escrow Agent, and First Security National Bank, Beaumont, Texas, which shall be substantially in the form attached hereto as Attachment "A, " the terms and provisions of which are hereby approved, subject to such insertions,' additions and modifications as shall be necessary (a) to carry out the program designed for the City by Underwood, Neuhaus & Co. Incorporated, and Haynes and Miller, which shall be certified as to mathematical accuracy by Coopers and Lybrand, Certified Public Accountants, whose Report (the "Report" ) shall be attached to the Escrow Agreement (b) to maximize the City' s present value savings and/or to minimize the City' s costs of refunding, (c) to comply with all applicable laws and regulations relating to the refunding of the Refunded Bonds and (d) to carry out the other intents and purposes of this Ordinance and the Bond Ordinance; and the Mayor or Mayor Pro-Tem is hereby authorized to execute and deliver such Escrow Agreement on behalf of the City in multiple counter- parts and the City Clerk is hereby authorized to attest thereto and affix the City' s seal. Section 2 : Purchase of United States Treasury Obliga- tions . In order to assure the purchase of the Escrowed Securi- t s referred to in the Escrow Agreement, the Mayor or Mayor Pro Tem or Finance Officer is hereby authorized to subscribe for, agree to purchase and purchase, such obligations of the United States of America, in such amounts, maturities and bearing interest at such rates as may be provided for in the report to be attached to the Escrow Agreement, and to execute any and all subscriptions, purchase agreements, commitments, letters of authorization and other documents necessary to effectuate the foregoing, and any actions heretofore taken by the Mayor or Mayor Pro-Tem or Finance Officer for such purpose are hereby ratified and approved. Page 3 Section 3 : Related Matters . In order that the City shall satisfy in a timely manner all of its obligations under the Ordinance, the Escrow Agreement and the Bond Ordinance, the Mayor, City Clerk and Finance Officer of the City and all other appropriate officers and agents of the City are hereby authorized and directed to take all other. actions that are reasonably necessary to provide for the refunding of the Refunded Bonds, including without limitation, executing and delivering on behalf of the City all certificates, consents, receipts, requests, and other documents as may be reasonably necessary to satisfy the City' s obligations under the Escrow Agreement and the Bond Ordinance and to direct the transfer and application of funds of the City consistent with the provisions of such Escrow Agreement and the Bond Ordinance. Section 4: Open Meeting. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City at which this Ordinance was adopted was posted on a bulletin board located at a place convenient and readily accessible at all times to the general public at the City Hall of the City of Beaumont for the time required by law preceding this meeting, as required by the Open Meetings Law, . Article 6252-17, Vernon' s Texas Civil Statutes, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and' the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5 : Declaration of Emergency. It is hereby officially found and determined that a case of emergency and urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed and further requires that this Ordinance be passed finally and take effect immediately on the date of its introduction, such emergency and urgent public necessity being that the proceeds from the sale of the Bonds are required as soon as possible and without delay for the purposes set forth in the ordinance authorizing the issuance of the bonds . Section 6 : Repealer. All resolutions and ordinances or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Page 4 PASSED AND APPROVED THIS 24th day of November, 1981. Mayor, City of Be�aumbnt Texas ATTEST: Ll �wv'-�c z"' ff / City Jerk, City of aumont, Texas (SEAL) Approved as to Form: City Attorney, City of Beaumont, Texas