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