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1995 06 01 CC Minutes, SpecialMINUTES OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN June 1, 1995 The City Council of the City of Baytown, Texas, met in special session on June 1, 1995, at 8:00 a.m. in the Council Chamber of the Baytown City Hall with the following in attendance: Eva Benavides Stephen DonCarlos Manuel Escontrias E. Frank Hinds, Jr. Rolland J. Pruett Council Member Council Member Council Member Council Member Council Member Pete C. Alfaro Mayor Bobby Rountree City Manager Ignacio Ramirez City Attorney Eileen P. Hall City Clerk Absent: David Byford Council Member The meeting was opened with a quorum present, and Council Member Hinds offered the invocation, after which the following business was conducted: Consider Approval of Preliminary Official Statement and Notice of Sale for General Obligation and Refunding Bonds, Series 1995 and Waterworks and Sewer System Revenue Bonds, Series 1995 and Consider Proposed Ordinance No. 950601 -1, Directing the Giving of Notice of Intention to Issue Revenue Bonds The City Manager noted that this would be the last bond sale except for remaining water bonds, and acknowledged the presence of Mr. Bob Gillette, one of the co- chairpersons of the 1991 bond program. Prior to the election on the 1991 950601 -2 Minutes of the Special Session - June 1, 1995 bond issue, citizens were told that passage would result in an increase of five to six cents in taxes. Due to the advice of Drew Masterson, Financial Advisor, the increase has been three cents. The sale of the remaining 1991 water and sewer revenue bonds and the recommended $2 Million in sewer bonds (totaling $5,200,000) will require a nine cent and ten cent per 1,000 gallons increase, respectively, in the water and sewer rates. The rate would go into effect on October 1, 1996. What is being recommended is the sale of $4,310,000 in general obligation bonds and revenue bonds totaling $3, 200,000. Other bonds include refunding of Municipal Utility District No. 3 for the amount of $3,655,000 and the extra revenue bonds for sewer rehabilitation in the amount of $2 Million, for a total of $13,165,000. There is some long -term positive news regarding the sale of future water and sewer bonds. In years 2003 and 2004, the Baytown Area Water Authority will pay off its bonded indebtedness providing approximately $1.1 Million that the City can use to retire proposed water and sewer debt. For example, if a bond program is presented to the citizens in 1996 and is approved, revenue bonds could be sold in 1997 and structured to allow a majority of the debt to come due in years 2003, 2004, and thereafter. This would lessen a rate increase to the homeowner depending on the amount of revenue bonds sold, interest rates, etc. Mr. Masterson stated that this bond package is different from previous bond sales. Included in this bond sale is refunding of MUD No. 3 bonds which is usually done through a negotiated sale. Since it is necessary to refund MUD No. 3 bonds, the financial advisor felt it would be to the advantage of the City of Baytown to have the entire sale a negotiated sale. In order to accomplish the sale on the $2 Million not voted on previously, there is a publication requirement. Notice must be published fifteen days prior to the actual sale. Another step required for the negotiated sale would be the acceptance of the resignation of Masterson, Moreland, Sauer, Whisman, Inc. and to appoint the firm as manager of an underwriting group formed for the purpose of purchasing, directly or indirectly, from the City, all or any portion of the bonds. Other entities in the group are Rausch Pierce, Edward D. Jones & Co., and A. G. Edwards & Sons, Inc. Council had no objection to this procedure. The administration recommended approval of the Preliminary Official Statement and Notice of Sale, as well as the proposed ordinance giving notice of intention to issue revenue bonds. Council Member Pruett moved to approve the Preliminary Official Statement and Notice of Sale for General Obligation and Refunding Bonds, Series 1995 and Waterworks and Sewer System Revenue Bonds, Series 1995, as well as proposed ordinance directing the giving of notice of intention to issue revenue bonds. Council Member Escontrias seconded the motion. The vote follows: 950601 -3 Minutes of the Special Session - June 1, 1995 Ayes: Council Members Benavides, Escontrias, Hinds, DonCarlos, and Pruett Mayor Alfaro Nays: None For copy of the ordinance, see Attachment "A." Recess into Executive Session to Discuss Pending Litigation Regarding Franchise Agreements Mayor Alfaro recessed the open meeting into executive session to discuss pending litigation regarding franchise agreements. When the open meeting reconvened, Mayor Alfaro announced that no action was necessary as a result of the executive session. Adjourn There being no further business to be transacted, the meeting was adjourned. Eileen P. Hall, City Clerk mi n utes106- 01 -95. spc 950601 -1 ORDINANCE NO. 7323 ORDINANCE DIRECTING THE GIVING OF NOTICE OF INTENTION TO ISSUE REVENUE BONDS THE STATE OF TEXAS § COUNTIES OF HARRIS AND CHAMBERS § CITY OF BAYTOWN § WHEREAS, the City Council of the City of Baytown, Texas (the "City"), deems it necessary and advisable that the bonds hereinafter described be authorized, issued, sold and delivered as soon as possible; Now, Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN: The Notice attached hereto shall be published in English and Spanish in The Baytown Sun, which is the official newspaper of the City, at least once a week for two consecutive weeks prior to June 22, 1995, with the date of the first publication to be at least fifteen (15) days prior to June 22, 1995. PASSED AND APPROVED this 1st day of June, 1995. ,��a e- Mayor CITY OF BAYTOWN, TEXAS ATTEST: City Clerk CITY OF BAYTOWN, TEXAS (SEAL) NOTICE OF INTENTION TO ISSUE REVENUE BONDS Pursuant to the provisions of Article 2368a, Vernon's Texas Civil Statutes, as amended, and Chapter 252, Local Government Code, as amended, notice is hereby given that the City Council of the City of Baytown, Texas (the "City"), will meet at 6:30 p.m. on June 22, 1995, at the City Hall, 2401 Market Street, Baytown, Texas, to consider adopting an ordinance authorizing the issuance of the City's Waterworks and Sewer System Revenue Bonds, Series 1995, in an amount not exceeding $5,200,000 ($3,200,000 of which were previously authorized at an election held within the City on May 4, 1991), maturing serially or otherwise over a period of not more than 40 years, with interest payable semiannually at a rate not in excess of that prescribed by Article 717k -2, Vernon's Texas Civil Statutes, as amended, for the purpose of constructing improvements and extensions to the City's waterworks and sanitary sewer system, in accordance with the provisions of Articles 1111 through 1118, Vernon's Texas Civil Statutes, as amended. By ordinance of the City Council of the City of Baytown, Texas. Is/ Eileen P. Hall City Secretary City of Baytown, Texas