19-R-146 Authorization issuance of obligations designated as Schertz-Seguin Local Government Corporation contract revenue refunding bondsRESOLUTION NO. 19 -R -146
APPROVING A BOND RESOLUTION ADOPTED BY THE BOARD OF
DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT
CORPORATION AUTHORIZING THE ISSUANCE OF OBLIGATIONS
DESIGNATED AS "SCHERTZ/SEGUIN LOCAL GOVERNMENT
CORPORATION CONTRACT REVENUE REFUNDING BONDS, SERIES
2019 (SAN ANTONIO WATER SYSTEM EXPANSION WATER
TREATMENT PROJECT 2) "; ACKNOWLEDGING THAT THESE
OBLIGATIONS WERE SOLD TO THE AUTHORIZED
REPRESENTATIVE OF A GROUP OF UNDERWRITERS IDENTIFIED IN
THE PRELIMINARY OFFICIAL STATEMENT PURSUANT TO THE
PROVISIONS OF A PURCHASE CONTRACT; RATIFYING,
RECONFIRMING, AND READOPTING THE PROVISIONS OF A
MUTUAL REGIONAL WATER SUPPLY CONTRACT EXECUTED
BETWEEN THE CITY OF SCHERTZ, TEXAS, THE CITY OF SEGUIN,
TEXAS, THE SCHERTZ /SEGUIN LOCAL GOVERNMENT
CORPORATION, AND THE CITY OF SAN ANTONIO, TEXAS, ACTING
BY AND THROUGH ITS SAN ANTONIO WATER SYSTEM;
AUTHORIZING THE MAYOR, THE CITY SECRETARY, AND /OR THE
CITY MANAGER OF THE CITY OF SCHERTZ, TEXAS TO EXECUTE ON
BEHALF OF THE CITY OF SCHERTZ, TEXAS ALL DOCUMENTS IN
CONNECTION WITH THIS TRANSACTION; AND OTHER MATTERS IN
CONNECTION THEREWITH
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
The City Council of the City of Schertz, Texas (the "City ") has reviewed and hereby
approves (i) the bond resolution (the "Bond Resolution ") as to form and content, including the
factual findings contained therein and all documents referenced therein, adopted by the Board of
Directors of the Schertz /Seguin Local Government Corporation relating to the issuance of
obligations designated as "Schertz /Seguin Local Government Corporation Contract Revenue
Refunding Bonds, Series 2012 (San Antonio Water System Expansion Water Treatment Project 2) (the
"Bonds "), (ii) the Bonds that will be sold to an authorized representative of a group of underwriters
(the "Underwriters ") as identified in the Preliminary Official Statement (as defined in the Bond
Resolution), (iii) the Mutual Regional Water Supply Contract, including the factual findings
contained therein, previously approved and executed among the City of Schertz, Texas, the City of
Seguin, Texas (collectively, the "Cities "), the City of San Antonio, Texas, acting by and through
its San Antonio Water System ( "SAWS "), and the Schertz /Seguin Local Government Corporation
(the "Contract ") which provides certain security for the payment of the Bonds, (iv) the bond
purchase contract (the "Purchase Contract ") authorizing the sale of the Bonds to the Underwriters,
(v) the Official Statement (as defined in the Bond Resolution), and (vi) the City's obligations under
the Contract and acknowledges that the payment of principal of and interest on such Bonds is
payable solely from the Bond Payment portion of the Annual Payments to be made by SAWS to
the Corporation under and pursuant to the Contract. The Mayor, the City Secretary, and/or the City
Manager of the City of Schertz, Texas are hereby authorized to execute on behalf of the City, the
Purchase Contract, and any and all documents in connection with this transaction. This resolution
75008381.2
may be relied upon by the appropriate representatives of the parties to this transaction and the Texas
Attorney General in his review and approval of this transaction.
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75008381.2 -2-
APPROVED THIS THE 22ND DAY Ol
ATTEST:
City Secretary
75008381.2 S -1
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
COUNTIES OF GUADALUPE, COMAL §
AND BEXAR §
CITY OF SCHERTZ §
THE UNDERSIGNED HEREBY CERTIFIES that:
1. On the 22nd day of October, 2019, the City Council (the Council) of the City of
Schertz, Texas (the City) convened in regular session at its regular meeting place in the City Hall
of the City (the Meeting), the duly constituted members of the Council being as follows:
Michael Carpenter
Mark E. Davis
Ralph Gutierrez
Scott Larson
Cedric Edwards
David L. Scagliola
Allison Heyward
Tim Brown
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
and all of such persons were present at the Meeting, except the following: ,
thus constituting a quorum. Among other business considered at the Meeting, the attached
resolution (the Resolution) entitled:
RESOLUTION APPROVING A BOND RESOLUTION ADOPTED BY THE
BOARD OF DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF
OBLIGATIONS DESIGNATED AS "SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION CONTRACT REVENUE REFUNDING
BONDS, SERIES 2019 (SAN ANTONIO WATER SYSTEM EXPANSION
WATER TREATMENT PROJECT 2) "; ACKNOWLEDGING THAT THESE
OBLIGATIONS WERE SOLD TO THE AUTHORIZED REPRESENTATIVE
OF A GROUP OF UNDERWRITERS IDENTIFIED IN THE PRELIMINARY
OFFICIAL STATEMENT PURSUANT TO THE PROVISIONS OF A
PURCHASE CONTRACT; RATIFYING, RECONFIRMING, AND
READOPTING THE PROVISIONS OF A MUTUAL REGIONAL WATER
SUPPLY CONTRACT EXECUTED BETWEEN THE CITY OF SCHERTZ,
TEXAS, THE CITY OF SEGUIN, TEXAS, THE SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION, AND THE CITY OF SAN ANTONIO,
TEXAS, ACTING BY AND THROUGH ITS SAN ANTONIO WATER
SYSTEM; AUTHORIZING THE MAYOR, THE CITY SECRETARY, AND /OR
THE CITY MANAGER OF THE CITY OF SCHERTZ, TEXAS TO EXECUTE
ON BEHALF OF THE CITY OF SCHERTZ, TEXAS ALL DOCUMENTS IN
75005051.2
CONNECTION WITH THIS TRANSACTION; AND OTHER MATTERS IN
CONNECTION THEREWITH
was introduced and submitted to the Council. After presentation and due consideration of the
Resolution, a motion was made by Coufteihnembe O-C ` nvl that the Resolution be finally
a
passed and adopted in cord ce with the City's Home Rule Charter. The motion was seconded
by Councilmember e' • and carried by the following vote:
4 voted "For" `voted "Against" -b abstained
all as shown in the official Minutes of the Council for the Meeting.
2. The attached Resolution is a true and correct copy of the original on file in the
official records of the Board; the duly qualified and acting members of the Board on the date of
the Meeting are those persons shown above, and, according to the records of my office, each
member of the Board was given actual notice of the time, place, and purpose of the Meeting and
had actual notice that the matter would be considered; and the Meeting, and deliberation of the
aforesaid public business, was open to the public and written notice of said meeting, including the
subject of the Resolution, was posted and given in advance thereof in compliance with the
provisions of Chapter 551, as amended, Texas Government Code.
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-2-
75005051.2
IN WITNESS WHEREOF, I have signed my name officially and affixed the seal of the
City, this 22nd day of October, 2019.
AAA-
City Secretary
City of Schertz, Texas
(SEAL)
7500505 1.2 S -1
EXHIBIT A
CURRENTLY OUTSTANDING INDEBTEDNESS
PAYABLE FROM UTILITY SYSTEM REVENUES
Description Amount
Total $-0-
Additionally, the City has covenanted in the Contract to establish, assess, and collect
rates sufficient to make the Annual Payments (as defined in the Contract), including an amount
sufficient to pay the principal and interest payments on the Bonds and the Previously Issued
Bonds designated as (i) Schertz /Schertz Local Government Corporation Contract Revenue
Bonds, Series 2001 ", dated February 1, 2001, issued in the aggregate original principal amount
of $41,040,000, (ii) Schertz /Seguin Local Government Corporation Contract Revenue Refunding
Bonds, New Series 2014, dated September 1, 2014, issued in the aggregate original principal
amount of $6,275,000, (iii) Schertz /Seguin Local Government Corporation Contract Revenue
Improvement and Refunding Bonds, New Series 2015, dated October 1, 2014, issued in the
aggregate original principal amount of $41,720,000, (iv) Schertz /Seguin Local Government
Corporation Contract Revenue Bonds, New Series 2016 (Texas Water Development Board
SWIRFT Project Financing), dated August 1, 2016, issued in the aggregate original principal
amount of $43,670,000, (v) Schertz/Seguin Local Government Corporation SWIFT Funding
Loan Agreement dated November 16, 2016, issued in the aggregate original principal amount of
$22,830,000 and (vi) "Schertz /Seguin Local Government Corporation Contract Revenue
Refunding Bonds, New Series 2018 ", dated November 1, 2018, issued in the aggregate original
principal amount of $19,045,000.
75004957.4 A-1
EXHIBIT B
UTILITY RATES
75004957.4 B-1
EXHIBIT C
OPERATING SCHEDULE
75004957.4 C-1
GENERAL CERTIFICATE OF THE CITY OF SCHERTZ, TEXAS
THE STATE OF TEXAS §
COUNTIES OF BEXAR, COMAL, AND §
GUADALUPE §
CITY OF SCHERTZ §
THE UNDERSIGNED MAYOR AND CITY SECRETARY HEREBY CERTIFY that:
1. The City of Schertz, Texas (the City) is a duly incorporated home rule city, having
more than 5,000 inhabitants, operating and existing under the laws of the State of Texas and the
City's duly adopted home rule charter.
2. The outstanding indebtedness payable from the net revenues of the City's
combined utility system (the Utility System) and the debt service requirements in connection
therewith are shown on Exhibit A. The City is not in default as to any covenant, condition or
obligation contained in the ordinances authorizing the issuance of the outstanding bonds of the
City shown on Exhibit A; and there is on hand in the special funds created for the payment and
security of the aforesaid obligations the amounts now required to be on deposit therein.
3. The rates now being charged by the City for utility services provided by the
Utility System are as shown on Exhibit B.
4. The duly qualified and acting officials of the City are as follows:
Michael Carpenter Mayor
Brenda Dennis City Secretary
5. A schedule of the gross receipts, operating expenses and net revenues of the
City's Utility System for the last five fiscal years is shown on Exhibit C.
6. The Mutual Regional Water Supply Contract, dated as of January 1, 2011 (the
Contract) between the Schertz /Seguin Local Government Corporation, the City of Seguin,
Texas, the City, and the City of San Antonio, Texas, acting by and through its San Antonio
Water System has been duly authorized and is in compliance with any applicable statutory
requirements. The Contract, as submitted to the Attorney General of Texas, is still in full force
and effect and has not been amended or rescinded. No litigation is pending or threatened
concerning the title or authority of the officers or concerning the Contract.
7. Appearing below are the true and correct signatures of the persons holding the
offices of Mayor and City Secretary. By his signature hereon, the Mayor certifies that the
signature of the City Secretary appearing hereon is their genuine signature and by their signature
hereon, the City Secretary certifies that the signature of the Mayor appearing hereon is his
genuine signature.
75004957.4
8. Capitalized terms not defined in this certificate shall have the meanings ascribed
to them in the bond resolution passed and adopted by the Schertz /Seguin Local Government
Corporation on the 17th day of October, 2019 (the Bond Resolution).
9. This certificate is made for the benefit of the persons involved in this transaction
and the Attorney General of The State of Texas in connection with his examination into and the
approval of the Bonds and the Contract. None of the obligations being refunded by the Bonds
has ever been held in or purchased for the account of the special Funds created and maintained
for the payment and security of such obligations being refunded and, none of the obligations
being refunded by the Bonds is currently owned nor has any of the same ever been purchased or
held for any account or fund of the City.
Authorization of Attorne, General to Date Certificate
10. This certificate is submitted pursuant to 1 TAC §53.247. Upon the approval of
the Bonds and the Contract by the Attorney General of the State of Texas, he is authorized to
date this certificate as of the date of such approval. If any litigation should develop, or if any
other event should occur which should make this certificate inaccurate before the Attorney
General's approval of the Bonds and the Contract, we will notify the Attorney General at once
by both telephone and facsimile transmission. With this assurance, the Attorney General is
entitled to rely on the accuracy of this certificate at the time of approval of the Bonds unless we
advise him otherwise.
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75004957.4 -2-
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF SCHERTZ, TEXAS, this
CITY OF I4TZ, TEXAS
f
i
City ecretary
(CITY SEAL)
75004957.4 S -1