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1981 10 29 CC Minutes, Special11029 -1 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN October 29, 1981 The City Council of the City of Baytown, Texas, met in special session on Thursday, October 29, 1981, at 6:30 p.m. in the Council Chamber of the Baytown City Hall with the following attendance: Fred T. Philips Jimmy Johnson Perry M. Simmons Mary E. Wilbanks Roy Fuller Allen Cannon Emmett 0. Hutto Fritz Lanham Larry Patterson Randy Strong Eileen P. Hall Councilman Councilman Councilman Councilwoman Councilman Councilman Mayor City Manager Assistant City Manager City Attorney City Clerk Mayor Hutto called the meeting to order, afterwhich the following business was transacted: Consider and, if Deemed Advisable, Adopt Proposed Ordinance, Authorizing Issuance of $2,000,000 Permanent Improvement Bonds, Series 1981, and Containing Other Provisions Relating Thereto Tom Masterson with the firm of Underwood, Neuhaus, City of Baytown Financial Consultants, was present. He opened the bids as follows: Cullen Bank Houston, Manager Dean Witter Reynolds Inc. National Bank of Commerce, Dallas Westcap Securities, Inc. Maturity 1983 through 1986 1987 1988 through 1990 1991 1992 through 1994 Interest Rate 12.00% 11.200 10.50% 10.75`"0 11.00% Total Interest Cost from October 1, 1981 $ 1,724,225.01 Less Cash Premium: -0- Net Interest Cost $ 1,724,225.01 Net Effective Interest Rate 10.9532560 11029 -2 Minutes of the Special Meeting - October 29, 1981 Cowen & Company Rowles, Winston Division Bossier Bank & Trust Kidder Peabody & Co. Inc. Oppenheimer & Co. Inc. Maturity 1983 through 1988 1989 1990 1991 through 1994 Interest Rate 12.00% 11.50% 10.75% 11.00% Total Interest Cost from October 1, 1981 $ 1,764,187.50 Less Cash Premium: -0- Net Interest Cost $ 1,764,187.50 Net Effective Interest Rate 11.2071% Republic National Bank N.A., Dallas and Associates Maturity 1983 through 1987 1988 1989 1990 1991 1992 1993 through 1994 Interest Rate 12.00% 11.50% 10.507, 10.80% 11.0070 11.25% 11.50% Total Interest Cost from October 1, 1981 $ 1,784,562.49 Less Cash Premium -0- Net Interest Cost $ 1,784,562.49 Net Effective Interest Rate 11.33655% Underwood, Neuhaus & Co., Inc. E. F. Hutton & Co. Mercantile National Bank of Dallas Paine Webber Jackson & Curtis Rausher Pierce Refsnes, Inc. Rotan Mosle, Inc. Maturity 1983 through 1986 1987 1988 1989 1990 1991 1992 through 1994 Interest Rate 11.70% 11.20"0 10.20% 10.40°,'0 10.60% 10.80% 11.00% Total Interest Cost from October 1, 1981 $ 11718,691.67 Less Cash Premium: -0- Net Interest Cost $ 1,718,691.67 Net Effective Interest Rate 10.918105% 11029 -3 Minutes of the Special Meeting - October 29, 1981 Texas Commerce Bank N.A. First City National Bank Maturity Interest Rate 1983 through 1990 11.50% 1991 through 1992 11.2070 1993 11.40% 1994 10.00%, Total Interest Cost from October 1, 1981 $ 1,748,633.33 Less: Cash Premium 331.49 Net Interest Cost $ 1,748,301.84 Net Effective Interest Rate 11.106205% Merrill Lynch White Weld Capital Markets Group & Associates Maturity 1983 1984 through 1986 1987 1988 1989 1990 1991 1992 1993 1994 Interest Rate 11.70% 11.75% 11.10 % 10.25% 10.50010 10.75% 11.00% 11.20% 11.35% 11.50% Total Interest Cost from October 1, 1981 $ 1,755,966.67 Less: Cash Premium 45.75 Net Interest Cost $ 1,755,920.92 Net Effective Interest Rate 11.15460 First National Bank In Dallas Goldman Sachs & Co. The Ft. Worth National Bank Crews & Associates Kidder, Peabody & Co., Inc. A. C. Becker, Inc. Maturity Interest Rate 1983 through 1989 12.00% 1990 through 1992 10.75% 1993 through 1994 10.50% Total Interest Cost from October 1, 1981 $ 1,729,625.00 Less: Cash Premium 159.50 Net Interest Cost $ 1,729,465.50 Net Effective Interest Rate 10.98654% 11029 -4 Minutes of the Special Meeting - October 29, 1981 After tabulation of the bids, the bond advisor announced that the lowest and best bid was submitted by Underwood, Neuhaus. Fritz Lanham, City Manager, recommended adoption of the ordinance as presented in full context to Council. Councilman Simmons moved for adoption of the ordinance; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Nays: Mayor Hutto Attached to the minutes and made a part hereof are the Certificate for Ordinance and Ordinance No. 3249. ].1029 -5 CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS § COUNTIES OF HARRIS AND CHAMBERS § CITY OF BAYTOWN § We, the undersigned officers of the CITY OF BAYTOWN, TEXAS (the "City "), hereby certify as follows: 1. The City Council of the City convened in special meeting on the 29th day of October, 1981, at the regular meeting place thereof, within the City, and the roll was called of the duly constituted offi- cers and members of the City Council and the City Clerk, to -wit: Emmett O. Hutto Mayor Allen Cannon Mayor Pro Tem Perry M. Simmons Council Member Jimmy Johnson Council Member Mary E. Wilbanks Council Member Fred T. Philips Council Member Roy L. Fuller Council Member Eileen P. Hall City Clerk and all of said persons were present, except the following absentees: , thus constituting a quorum. Whereupon,, among other business, the following was transacted at said meeting: a written ORDINANCE AUTHORIZING ISSUANCE OF $2,000,000 PERMANENT IMPROVEMENT BONDS, SERIES 1981; APPROPRIATING $2,000,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO (the "Ordinance ") was duly introduced for the consideration of the City Council and read in full. It was then duly moved and seconded that the Ordinance be adopted; and, after due discussion, said motion, carrying with it the adoption of the Ordinance, prevailed and carried by the fol- lowing vote: AYES: All members of the City Council shown present above voted "Aye ". NAYS: None. 2. That a true, full and correct copy of the Ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the Ordinance has been duly recorded in the City Council's minutes of said meeting; that the above and fore- going paragraph is a true, full and correct excerpt from the City Council's minutes of said meeting pertaining to the adoption of the Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date,.hour, place and subject of the aforesaid meeting, and that the Ordinance would be introduced and considered for adoption at said meeting, and each of said officers and members consented, in advance, to the holding of such meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of said meeting was given as required by Vernon's Article 6252 -17, as amended. SIGNED AND SEALED this 29th day of October, 1981. City Clerk Mayor (SEAL) 11029 -6 ORDINANCE 140. - 3249 ORDINANCE AUTHORIZING ISSUANCE OF $2,000,000 PERM.Ai4ENNT INPROVE::ENT BONDS, SERIES 1981; APPROPRIATING $2,000,000 OF PROCEEDS OF SALE THEREOF FOR W- RI0';S PROJECTS; AND CONTAINING OTHER PROVISIOL:S RELATING —HERETO THE STATE OF TEXAS § COUNTIES OF HARRIS AIM CHAMBERS § CITY OF BAYTOWN § WHEREAS, the bonds hereinafter authorized were duly and favorably voted at an election held in the City of Baytown, Texas (the "City "), on the 9th day of June, 1981; and WHEREAS, the City Council now deems it advisable to issue, sell, and deliver $2,000,000 bonds for the purposes shown. in the following schedule as a portion and the first installment of'$23,290,000 bonds voted at said election: Amount Amount Unissued Amount Previously Purpose Authorized Issued Waterwks.*Sys.$ 3,540,000 $ -0- San. Sew. Sys. 61340,000 -0-- Drainage 4,000,000 -0- Streets 4,940,000 -0- Fire Station 2,1801000 -0- Parks 21290,000 -0- $23,290,000 $ -0- Amount Being Unissued Issued Balance $ 200,000 $ 3,340,000 1,150,000 5,190,000 170,000 31830,000 -0- 4,940,000 230,000 11950,000 250000 2,040,000 $2,000,000 $21,290,000 WHEREAS, the City Council has caused a notice of sale of such bonds to be published in the TEXAS BOND REPORTER which is a publication carrying municipal bond notices and devoted primarily to-financial news and in the BAYTOWN SUN which is the official newspaper of the City, said notice having been publishes in each said publication at least ten days prior to the data set for the sale of said bonds; and Wr_r. -zEAS, bids have been received pursuant to said publi- cations of said notice and the City Council desires to autho- rize the issuance of said bonds and award the sale thereof on the basis of the best bid received; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN THAT: 11029 -7 Section 1(a). The ordinance heretofore adopted by the • City Council on the 14th day of May, 1981, authorizing the issuance of the bonds described in the preamble of this ordi- nance and calling an election therefor is hereby in all things ratified and confirmed. Section 1(b). All the matters and facts recited in the preamble hereof are hereby officially found to be true and correct. Section 2. The City's negotiable, serial, coupon bonds to be designated CITY OF BAYTOWN, TEXAS, PER✓IANENT IMPROVEMENT BONDS, SERIES 1981 (hereinafter called the "Bonds "), are hereby authorized to be issued and delivered in the aggregate prin- cipal amount of $2,000,000 for the following purposes: (1) $200,000 for constructing improvements to the City's waterworks system;. .(2) $1,150,000 for constructing improvements to the City's sanitary sewer system; (3) $170,000 for constructing permanent drainage improvements for the City; (4) $230,000 for constructing and permanently equipping fire station buildings for the City; and (5) $250,000 for purchasing and /or improving lands for park purposes for the City. Section 3. The Bonds shall be dated October 1, 1981, shall be numbered consecutively from 1 through 400, and shall be in the denomination of $5,000 each, and shall mature serially on February 1 of each of the years, and in the amounts, respec- tively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 1983 $100,000 1989 $150,000 1984 100,000 1990 175,000 1985 125,000 1991 200,000 1986 125,000 1992 225,000 1987 150,000 1993 250,000 1988 150,000 1994 250,000 The Bonds may be redeemed prior to their scheduled maturities, -2- 11029 -8 at the option of the City, on the dates stated and in the man- ner provided in the FORM OF BOND set forth in this ordinance. Section 4. The Bonds shall bear interest per annum at the following rates, respectively, to -wit: Bonds maturing 1983 through 19_, % Bonds maturing 19_ through 19_, % Bonds maturing 19_ through 19,, % Bonds maturing 19_ through 19_, % Bonds maturing 19_ through 19_; % Bonds maturing 19_ through 19_, Bonds maturing 19_ through 19_, % Bonds maturing 19` through 19_, evidenced by interest coupons which shall appertain to the Bonds and which shall be payable on the dates indicated in the FORM OF BOND set forth in this ordinance. Section 5. The Bonds, and the interest coupons apper- taining thereto, shall be payable, shall have the character- istics, and shall be signed and executed (and the Bonds shall be sealed), all as provided and in the manner indicated in the FORM OF BOND set forth in this ordinance. Section 6. The form of the Bonds, including the form of registration certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of the Bonds, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of the Bonds, shall be, respectively, substantially as follows: NO. FORM OF BOND: UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF HARRIS AND CHAMBERS -3- $5,000 11029 -9 CITY OF BAYTOWN, TEXAS PERMANENT IMPROVEMENT BOND • SERIES 1981 ON FEBRUARY 1, 19 , the CITY OF BAYTO;INO (the "City"), in the Counties of Harris and Chambers, in the State of Texas, promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of % per annum, evidenced by interest coupons payable August 1, 1982, and semiannually thereafter on each February 1 and August 1 while this Bond is outstanding. The principal of this Bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this Bond or proper interest coupon at the CITIZENS BANK & TRUST CO.'OF BAYTOWN, Baytown, Texas, which shall be the paying agent for this series of Bonds. THIS BOND is one of a series of negotiable, serial, cou- pon bonds, dated October 1, 1981, numbered consecutively from 1 through 400, in the denomination of $5,000 each, issued in the aggregate principal amount of $2,000,000 for the following purposes: (1) $200,000 for constructing improvements to the City's waterworks system; . (2) $1,150,000 for constructing improvements to the City's sanitary sewer system; (3) $170,000 for constructing permanent drainage ira=ovements for the City; (4) $230,000 for constructing and permanently equipping fire station buildings for the City; and (5) $250,000 for purchasing and /or improving lands for park purposes for the City; in accordance with Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas, as amended, and pursuant to an election held within the City on the 9th day of June, 1981, and authorized pursuant to an ordinance duly adopted by the City Council of -4- 11029 -10 the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $2,000,000 PERMANENT IMPROVEMENT BONDS, SERIES 1981; APPROPRIATING $2,000,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO and finally passed on the 29th day of October, 1981, this Bond being one of a series of Bonds which constitutes a portion and the first in- stallment of $23,290,000 bonds voted at the aforesaid election. ON FEBRUARY 1, 1990, OR ON ANY INTEREST PAY14ENT DATE THERE- AFTER, the outstanding Bonds of this series may be redeemed prior to their scheduled maturities, at the option of the City, IN WHOLE, OR IN PART IN I14 -VERSE NU;SERICAL ORDER, for the prin- cipal amount thereof and accrued interest thereon to the date fixed for any such-redemption. At least thirty days prior to the date fixed for any such redemption, the City shall cause a written notice of such redemption to be mailed to the bank at which the Bonds are payable and published at least once in a financial publication published in the City of New York, New York, or in the City of Austin, Texas. By the date fixed for any such redemption, due provision shall be made with the paying agent for the payment of the required redemption price. If such written notice of redemption is published and if .due provision for such payment is made, all as provided above, the Bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities; and they shall not be regarded as being outstanding except for the purpose of being paid by the paying agent with the funds so provided for such payment. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly voted, authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issuance and delivery of this Bond have been performed, existed, and been done in accordance with law; and that annual -5- 11029 -11 ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged for such payment within the limits prescribed by law. IN WITNESS WHEREOF, this Bond and the interest coupons appertaining hereto have been signed with the facsimile signa- ture of the Mayor of the City and countersigned with the fac- simile signature of the City Clerk of the City, respectively, and the official seal of the City has been duly impressed, or placed in facsimile, on this Bond. COUNTERSIGNED: xxxxxxxxxx Mayor xxxxxxxxxx CITY OF BAYTOWN, TEXAS City Clerk CITY OF BAYTOWN, TEXAS (SEAL) FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, cer- tified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of-the State of Texas. WITNESS my signature and seal this xxxxxxxxxx (SEAL) Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON: NO. $ ON 1, 19 , the CITY OF BAYTOWN, in the Counties of Harris and Chambers, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, unless due provision has been made for the redemption prior am 11029 -12 to maturity of the Bond to which this presentation and surrender of this in- CITIZENS BANK & TRUST CO. OF BAYTO10, amount being interest due that day on number hereinafter designated of that BAYTOWN, TEXAS, PERMANENT IMPROVEMENT dated October 1, 1981. Bond No. xxxxxxxxxx City Clerk coupon appertains, upon terest coupon, at the Baytown, Texas, said the Bond bearing the issue of CITY OF BONDS, SERIES 19818, xxxxxxxxxx Mayor Section 7. A special fund or account, to be designated the "City of Baytown, Texas, Permanent Improvement Bonds, Series 1981, Interest and Sinking Fund" (hereinafter called the "Interest and Sinking Fund "), is hereby created and shall be established and maintained by the City at an official deposi- tory bank of the City. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the City and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds or interest coupons appertaining thereto are outstanding and unpaid, the City Council.of the City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise - and produce the money required to pay the interest on the Bonds as such interest comes due and to provide and maintain a sinking fund adequate to pay the principal of the Bonds as such principal matures but never less than 2% of the original principal amount of the Bonds as a sinking fund each year; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquen- cies and the cost of tax collection. Said rate and amount of ad valorem tax are hereby levied, and are hereby ordered to be -7- 7 11029 -13 levied, against all taxable property in the City for each year while any of the Bonds or interest coupons appertaining thereto are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment within the limits prescribed by law. Section 8. Immediately following delivery of the Bonds to the purchaser thereof, the accrued interest and premium, if any, shall be deposited in the Interest and Sinking Fund. Section 9. There is hereby appropriated out of the pro- ceeds of sale of the Bonds authorized by this ordinance the fol- lowing sums for the following indicated purposes, respectively: (1) $200,000 for constructing improvements to the City's waterworks system; (2) $1,150,000 for constructing improvements to the City's sanitary sewer system; (3) $170,000 for constructing permanent drainage improvements for the City; (4) $230,000 for constructing and permanently equipping fire station buildings for the City; and (5) $250,000 for purchasing and /or improving lands for park purposes for the City. It is hereby estimated that the maximum cost, respectively, for each of the aforesaid projects will not exceed the amount named above for each such project, respectively; and there is no necessity for any down payment on these projects; and no such down payment is hereby ordered to be made. It is hereby officially found and determined (1) that the probable period of usefulness of each of the aforesaid projects is forty years, and (2) that all of said projects are related projects within the meaning of Section 61 of the Home Rule Charter of the City. Section 10. Out of the proceeds of sale of the Bonds authorized by this ordinance the following sums are hereby -8- 11029 -14 ordered to be used and expended for the following indicated • purposes, respectively: (1) $200,000 for constructing improvements to the City's waterworks system; (2) $1,150,000 for constructing improvements to the City's sanitary sewer system; (3) $170,000 for constructing permanent drainage improvements for the City; (4) $230,000 for constructing and permanently equipping fire station buildings for the City; and (5) $250,000 for purchasing and /or improving lands for park purposes for the City;- as provided in the ordinance adopted on the 14th day of May, 1981, calling the bond election which was held in the City on the 9th day of June, 1981. Section 11. The City certifies that based upon all facts and estimates now known or reasonably expected to be in exis- tence on the date the Bonds are delivered and paid for, the City reasonably expects that the proceeds of the Bonds will not be used in a manner that would cause the Bonds or any portion of the Bonds to be an "arbitrage bond" under Section 103(c)(2) of the Internal Revenue Code of 1954, as amended, and the regulations prescribed thereunder. Furthermore, all officers, employees and agents of the City are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the City as of the date the Bonds are delivered and paid for. In particular, all or any officers of the City are authorized to certify for the City the facts and circumstances and reasonable expectations of the City on the date the Bonds are delivered and paid for regarding the amount and use of the proceeds of the Bonds. Moreover, the City covenants that it shall make such use of the proceeds of the Bonds, regulate investments of proceeds of the Bonds and take such other and further actions as may be required so that the Bonds shall not be "arbitrage bonds" under Section 103(c)(2) W .11029 -16 Section 16. This ordinance was read once by the City • Council and shall take effect immediately. Section 17. The Official Notice of'Sale, Official State- ment and Official Bid Form submitted to the City Council are hereby approved for use in connection with the solicitation of bids for and sale and distribution of the Bonds. Section 18. It is hereby officially found and determined that the need of the City for such financing creates an emer- gency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the City Council at which this ordinance is adopted and for the adoption of this ordi- nance; and the NOTICE OF MEETING relating to said meeting and heretofore posted by the City Clerk, and the posting thereof, is hereby authorized, approved, adopted and ratified. PASSED, AUTHENTICATED, AND APPROVED this 29th day of October, 1981. 0 ATTEST: /s/ Eileen P. Hall City Clerk CITY OF BAYTOWN, TEXAS APPROVED: /s/ Randall B. Strong City Attorney CITY OF BAYTOWN, TEXAS (SEAL) /s/ Emmett 0. Hutto Mayor CITY OF BAYTOWN, TEXAS -11- 11020 -15 of the Internal Revenue Code of 1954, as amended, and the regu- lations prescribed from time to time thereunder. Section 12. The Mayor of the City is hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registra- tion Certificate prescribed herein to be printed and endorsed on each Bond; and the seal of the Comptroller shall be im- pressed, or placed in facsimile, on each of the Bonds. Section 13. The Bonds are hereby sold and shall be de- livered to for the par value thereof and accrued interest thereon to date of delivery, plus a premium of $ , subject to the un- qualified approving opinions, as to the legality of the Bonds, of the Attorney General of the State of Texas and of Vinson & Elkins, Houston, Texas, market attorneys; and it is hereby officially found, determined, and declared that the Bonds are sold on the best terms and for the best price possible. Section 14. The approving opinion of Vinson & Elkins, Houston, Texas, and Cusip numbers may be printed on the back of each of the Bonds, but errors or omissions in such opinion, or errors in or omissions of such numbers, shall have no effect on the validity of the Bonds. Section 15. The Mayor and all other appropriate officers of the City are hereby authorized and directed to do any and all things-necessary or convenient to carry out the provisions of this ordinance. -10- i M ai 11029 -17 Minutes of the Special Meeting - October 29, 1981 Approval of Official Statement The bond consultants had developed the Official Statement based on information provided by the Administration. This document will be furnished to purchasers of the bonds. The Administration recommended approval of the Official Statement. Councilman Philips moved to approve the Official Statement; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Fuller and Cannon Mayor Hutto Nays: None Redistricting by Texas House of Representatives Mayor Hutto called Council's attention to the article in the Baytown Sun notifying Baytonians that the city had been divided into three parts in the redistricting by the Texas House of Representatives. Council concurred that this would greatly diminish Baytown's effectiveness in the Legislative process. Council requested that the legal staff consider what alternatives could be considered, if any. An item in this regard will be on the next regular agenda. There being no further business to be transacted, the meeting was adjourned. S-e�� P. Eileen P. Hall, City Clerk