1999R16- SUPPORTING THE PROJECT AND FINANCING PLANS
RESOLUTION NO. f7f- J!! - / t,
RESOLUTION
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
SUPPORTING THE PROJECT AND FINANCING PLANS
OF THE SCHERTZ/SEGUIN LOCAL GOVERNMENT
CORPORATION.
WHEREAS, the City of Schertz, Texas ("Schertz") and the City of
Seguin, Texas ("Seguin") (together the "Cities") have authorized and approved
the creation of the Schertz/Seguin Local Government Corporation (the
"Corporation"), a local government corporation created under provisions of
Subchapter D of Chapter 431 of the Texas Transportation Code, as amended
(the "Act"), to aid, assist, and act on behalf of the Cities; and
WHEREAS, the Board of Directors of the Corporation has completed its
preliminary planning with respect to the development of a water well field, land
and water rights acquisition, and facilities, transmission lines, and equipment to
provide water to the citizens of the Cities (the "Project") to be financed with the
proceeds of one or more series of contract revenue bonds (the "Bonds") currently
anticipated to be issued in the aggregate principal amount of approximately
$40,000,000, with an initial series of such Bonds to be in the aggregate principal
amount of approximately $10,000,000 to finance the initial phases of the Project
and to reimburse the Cities for certain advances to the Corporation; and
WHEREAS, to provide for the payment of the Bonds, the Cities each
intend to enter into an interlocal agreement, including a take or pay contract
(each, an "Interlocal Agreement"), with the Corporation, pursuant to which the
Cities will provide funds to the Corporation derived from utility service revenues
of the Cities' utility systems and the Corporation will provide water to the citizens
of the Cities; and
WHEREAS, the City Council of the City of Schertz desires to express
its support for the actions of the Board of Directors of the Corporation; NOW,
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS THAT:
Section 1. The City Council hereby finds and determines that
development of the Project through the issuance of the Bonds is in the best
interest of the citizens of Schertz and that the Board of Directors of the
Corporation should proceed with development of the Project through the
issuance of the Bonds.
Section 2. When the Board of Directors of the Corporation, in
conjunction with its financial advisor and bond counsel, determines that the terms
of the initial and subsequent series of Bonds and the final form of the City's
Interlocal Agreement require approval by the City Council pursuant to the Act, the
Articles of Incorporation or Bylaws of the Corporation, or otherwise, the City
Council is prepared to favorably consider such action to assist the Corporation.
Section 3. The recitals contained in the preamble hereof are hereby
found to be true, and such recitals are hereby made a part of this Resolution for
all purposes and are adopted as a part of the judgment and findings of the City
Council.
Section 4. All resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Resolution are hereby repealed to the
extent of such conflict, and the provisions of this Resolution shall be and remain
controlling as to the matters ordained herein.
Section 5. This Resolution shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
Section 6. If any provision of this Resolution or the application thereof
to any person or circumstance shall be held to be invalid, the remainder of this
Resolution and the application of such provision to other persons and
circumstances shall nevertheless be valid, and the City Council hereby declares
that this Resolution would have been enacted without such invalid provision.
Section 7. It is officially found, determined, and declared that the
meeting at which this Resolution is adopted was open to the public and public
notice of the time, place, and subject matter of the public business to be
considered at such meeting, including this Resolution, was given, all as required
by Chapter 551, as amended, Texas Government Code.
Section 8. This Resolution shall be in force and effect from and after its
final passage, and it is so resolved.
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PASSED, APPROVED AND ADOPTED this the t!:!:. day of October, 1999.
~4~
Mayor, City of Schertz, Texas
ATTEST:
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City Secretary, City of Schertz
(CITY SEAL)