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CC Resolution No. 2626RESOLUTION NO. 2626 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION AND OTHER MATTERS RELATING THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the City Council (the "City Council") of the City of Baytown, Texas (the "City"), finds that the design, planning, acquisition, construction, renovation, and equipping of the public property and payment of fees for professional services described in Exhibit "A" would be beneficial to the inhabitants of the City, and such property is needed to perform essential governmental functions; and WHEREAS, the City Council has determined that certificates of obligation (the "Certificates") should be issued pursuant to the provisions of the Certificate of Obligation Act of 1971, Section 271.041 et seq., Texas Local Government Code (the "Act"), for such purposes; and WHEREAS, prior to the issuance of the Certificates, the City is required under the Act to publish notice of its intention to issue the Certificates in a newspaper of general circulation in the City and on the City's website, the notice stating: (i) the time and place the City Council tentatively proposes to pass the ordinance authorizing the issuance of the Certificates; (ii) the purpose of the Certificates proposed to be issued; (iii) the manner in which the City Council proposes to pay the Certificates, whether by taxes, revenues, or a combination of the two; (iv) along with the following: (A) the then -current principal of all outstanding debt obligations of the City, (B) the then -current combined principal and interest required to pay all outstanding debt obligations of the City on time and in frill, which may be based on the City's expectations relative to the interest due on any variable rate debt obligations, (C) the maximum principal amount of the Certificates to be authorized, and (D) the estimated combined principal and interest required to pay the Certificates to be authorized on time and in full; (v) the estimated interest rate for the Certificates to be authorized or that the maximum interest rate for the Certificates may not exceed the maximum legal interest rate; and (vi) the maximum maturity date of the Certificates to be authorized; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, THAT: Section l: The form and substance of the form of notice of intention to issue the Certificates, which is attached hereto as Exhibit "A", is hereby adopted and approved. Section 2: The Mayor or the City Clerk shall cause the notice in substantially the form attached hereto (A) to be published in a newspaper, as defined in Section 2051.044, Texas Government Code, of general circulation in the City for two consecutive weeks, and (B) to be posted on the City's website continuously from the first date of publication until adoption of the ordinance authorizing the issuance of the Certificates. The date of first publication in a newspaper and of first posting on the City's website is to be at least 45 days prior to the date tentatively set for adoption of the ordinance authorizing the issuance of the Certificates. Section 3: This section of this resolution declares the intention of the City to reimburse the expenditures for the Project (hereinafter defined) with the proceeds of the Certificates. The City presently intends to reimburse the expenditure by issuing the Certificates, the interest on which is excludable from gross income under section 103 of the Internal Revenue Code of 1986, as amended. The City reasonably expects to issue Certificates in an aggregate maximum principal amount now estimated to be $20,500,000 for the purpose of paying the costs for the acquisition of certain property and related improvements for the City listed in Exhibit "A" attached hereto (the "Project"). The City intends to reimburse the expenditures not later than 18 months after the date the original expenditure is paid or the date the Project is placed in service or abandoned. However, in no event shall the City reimburse expenditures more than three years after the original expenditure is paid; provided, however, if the Project is a construction project for which the City and a licensed architect or engineer have certified that at least five years are necessary to complete the Project, the maximum reimbursement period shall be five years after the date of the original expenditure. The City intends that this section of this resolution satisfy the official intent requirement set forth in Section 1.150-2 of the Treasury Regulations and evidences its intentions under Section 1201.042(c) of the Texas Government Code. This section of this resolution shall be liberally construed to evidence the intent of the City to comply with state law and federal income tax law in the issuance of tax-exempt Certificates for the Project. Section 4: The Mayor and the City Clerk are hereby authorized and directed to do any and all things proper and necessary to carry out the intent hereof. Section 5: This resolution shall take effect immediately from and after its passage by the City Council of the City. INTRODUCED, READ AND PASSED by the affirmative vote of the City Council of the City of Baytown, this 181h day of November, 2019. BRANDON CAPETILLO, Mayor - JATT: BRYSCH, City APPROVED AS TO FORM .OWN T G NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE is hereby given that it is the intention of the City Council of the City of Baytown, Texas (the "City"), to issue interest -bearing Certificates of Obligation of the City to be designated and known as the "CITY OF BAYTOWN, TEXAS CERTIFICATES OF OBLIGATION, SERIES 2020" (the "Certificates") for the purpose of providing for the payment of contractual obligations to be incurred in connection with the planning, acquisition, construction, equipping, expansion, repair, and.,or renovation of City -owned public property, including (1) a convention center consisting of public conference rooms and meeting space of approximately 33,600 square feet, including a ballroom of approximately 12,000 square feet, (2) public facilities and infrastructure ancillary to the conference rooms and meeting space, (3) a proportionate interest in elements common to the convention center and the hotel that will be interconnected with the convention center (the "related hotel"), such as the foundation, HVAC system, mechanical, electrical, and plumbing systems, roof, and other similar structural elements, (4) areas common to the convention center and related hotel, (5) the completion of a water and wastewater preliminary engineering report for the design of a water line extension and replacement of an existing wastewater lift station and force main, and (6) a parking lot or parking structure with approximately 320 spaces adjacent to the convention center. The City Council tentatively proposes to authorize the issuance of the Certificates at its regular meeting place in the City Council Chambers, City Hall, 2401 Market Street, Baytown, Texas, at a special meeting of the City Council to be commenced at 6:30 p.m., on January 30, 2020, in a principal amount not to exceed $20,500,000, with a maximum maturity date of February 1, 2045, at an interest rate or rates that may not exceed the maximum legal interest rate. The current principal outstanding of all City ad valorem tax -supported debt obligations ("Tax Debt") is $206,530,000; the current combined principal and interest required to pay all Tax Debt of the City on time and in full is $254,813,172. The estimated combined principal and interest required to pay the Certificates on time and in full is $31,376,150; the estimated interest on the Certificates of $10,876,150 is provided for illustrative purposes only, and is based on an assumed interest rate of 3.50° o. Market conditions affecting interest rates vary based on a number of factors beyond the control of the City, and the City cannot and does not guarantee a particular interest rate associated with the Certificates. The City Council presently proposes to provide for payment of the Certificates by the pledge of an annual ad valorem tax levied upon all taxable property within the City, within the limits prescribed by law, and by (i) a limited subordinate pledge of $1,000 of the City's net sewer and water revenues, together with (ii) a portion of the City's hotel occupancy tax revenue imposed under Chapter 351, Texas Tax Code, and received by the City for the use of rooms in the related hotel. The Certificates are to be issued, and this notice is given, pursuant to Section_244-04 ,, et seq., Texas L9c41 Govgrnment Code. BRANDON CAPETILLO; Mayor City of Baytown, Texas 4839-7305-3355v.13 63325-1