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BAYTOWN CITY COUNCIL MEETING
Amending Resolution No. 227 regarding Cedar Bayou Park Utility District's Issuance of Bonds
Karen Horner, Legal
Consider a proposed resolution amending and restating Resolution No. 227 regarding the consent to the formation of the Cedar Bayou Park Utility District.
This proposed resolution amends and restates Resolution No. 227 regarding the consent to formation of the Cedar Bayou Park Utility District' (the "District"). On December 12, 1968, the City Council passed Resolution No. 227 consenting to the creation of the Cedar Bayou Park Utility District (the "District"), a reclamation district consisting of 188.01 acres located in the City's Harris County extraterritorial jurisdiction.
Currently the City supplies wastewater treatment services to the District for it to service approximately 173 customers. The District desires to borrow $840,000 under a program of the Texas Water Development Board ("TWDB"), which allows the District to borrow funds at a 0.0% interest rate. In order to do so in accordance with the TWDB requirements, the District has requested that the City amend Resolution No. 227 to allow bonds for purchased by the TWDB to be:
redeemed subsequent to the 10th anniversary of the date of issuance, rather than the 15th year,
sold on a competitive, negotiated or private placement basis, rather than just competitively bid, and
extended so that the maturity not exceed thirty (30) years and six months, rather than thirty (30) years.
These amendments are consistent with the TWDB requirements. Additionally, this proposed ordinance also updates the other conditions placed on the District by the City to align them to current practices. These updates include the following conditions:
none of the District’s bonds, other than refunding bonds, be sold for less than 97% of par;
the net effective interest rate on bonds not exceed two percent above the highest average interest rate reported by the
Daily Bond Buyer
in its weekly "20 Bond Index";
bids for the bonds be received not more than 45 days after notice of sale of the bonds is given;
the District's resolution authorizing the issuance of the District's bonds, which are secured by a pledge of the net revenues from the operation of the District's system, contain a provision that such pledge terminate when and if the City annexes the territory of the District;
notice be given to the City Manager thirty (30) days prior to the issuance of District bonds;
consent of the City be given prior to any annexation into the Distinct; and
the employment of an operator holding valid a certificate of competency and
the City be allowed to make periodic inspections.
Staff recommends approval.
Source of Funds (Operating/Capital/Bonds):
Funds Budgeted Y/N:
Fiscal Impact (Additional Information):
There is no fiscal impact associated with this item.
Resolution - Amending and Restating Consent Resolution for Cedar Bayou Park Utility District
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