HomeMy WebLinkAboutOrdinance 20930-09-2013 THE STATE OF TEXAS
COUNTIES OF TARRANT, DENTON, PARKER, WISE AND JOHNSON
CITY OF FORT WORTH
On the 10th day of September, 2013, the City Council of the City of Fort Worth, Texas,
met in regular, open, public meeting in the City Council Chamber in the City .Hall, and roll was
called of the duly constituted members of the City Council, to-wit:
Betsy Price, Mayor
Salvador Espino,
W.B. "Zim" Zimmerman
Danny Scarth,
Gyna Bivens (absent),
Jungus Jordan, Councilmembers,
Dennis Shingleton,
Kelly Allen Gray,
Joel Bums,
Tom Higgins, City Manager,
Sarah Fullenwider, City Attorney,
Mary J. Kayser, City Secretary
thus constituting a quorurn present; and after the City Council had transacted certain business,
the following business was transacted, to-wit:
Councilmember Bums introduced an ordinance and moved its passage. The motion was
seconded by Councilmember Espino. The ordinance was read by the City Secretary. The
motion, carrying with it the passage of the ordinance prevailed by a vote of 8 YEAS, 0 NAYS.
The ordinance as passed is as follows:
ORDINANCE NO. 20930-09-2013
BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS,
AMENDING ORDINANCE NO. 20876-08-2013 PROVIDING FOR THE
ISSUANCE OF CITY OF FORT WORTH, TEXAS COMBINATION TAX
AND REVENUE CERTIFICATES OF OBLIGATION; AND ORDAINING
OTHER MATTERS RELATING TO THE SUBJECT
THE STATE OF TEXAS
COUNTIES OF TARR-ANT, DENTON, WISE, PARKER AND JOHNSON
CITY OF FORT WORTH
WHEREAS, on the 16th day of July, 2013, the City Council, of the City of Fort Worth
(the "City" or the "Issuer") passed an ordinance authorizing and directing notice of its intention
to issue Certificates of Obligation, to be published in a newspaper as required by Section
271.049 of the Texas Local Government Code, in an amount not to exceed $74,000,000; and
WHEREAS, the City caused this notice of intention to be published in the Fort Worth
Star-Telegram on July 20, 2013 and July 27, 201.3; and
WHEREAS, on August 20, 2013, the City Council of the City adopted an ordinance
("Ordinance No. 20876-08-2013") authorizing the issuance of up to $74,000,000 in Certificates
of Obligation for the purposes described in the notice of intention;
WHEREAS, on August 23, 2013, acting tinder authority of Ordinance No. 20876-08-
2013, the City Manager, as a designated "Pricing Officer", executed a purchase contract (the
"Purchase Contract") with the underwriters named therein (the "Underwriters") in, respect to the
delivery of the Certificates of Obligation described in Ordinance No. 20876-08-2013; and
WHEREAS, under the terms of the Purchase Contract, the City has agreed to sell, and the
Underwriters have agreed to purchase, Certificates of Obligation designated "City of Fort Worth,
Texas Combination Tax and Revenue Certificates of Obligation, Series 2013A", in the aggregate
principal amount of$46,095,000 (the "2013A Certificates"); and
WHEREAS, the delivery of the 2013A Certificates is scheduled to occur on September
26, 2013-, and
WHEREAS, the 2013A Certificates were sold to finance all of the projects described in
the notice of intention, except for the project described in the notice of intention as the
"Maintenance Facility"; and
WHEREAS, Ordinance No, 20876-08-2013 provided that as a condition to selling
certificates of obligation to acquire the Maintenance Facility, a net present value savings of at
least three and one-half percent (3,50%) on the outstanding principal amount of the obligations
issued by the Service Center Relocation, Incorporated to finance the Maintenance Facility must
be realized; and
WHEREAS, the City has determined that it is in the best interests of the City to amend
Ordinance No. 20876-08-2013 to revise the minimum savings requirement condition to the sale
of Certificates of Obligation to finance the acquisition of the Maintenance Facility; and
WHEREAS, the Underwriters have raised no objection to amending Ordinance No.
20876-08-2013 for this purpose; and
WHEREAS, no petition, signed by 5% of the qualified electors of the Issuer as permitted
by Section 271.049 of the Texas Local Government Code protesting the issuance of such
Certificates of Obligation, has been filed with the City prior to the date this Ordinance was
presented to the City Council for consideration;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
Section 1. That Section 3(d) of Ordinance No. 20876-08-2013 is amended to read as
follows:
(d) Additional Parameter. A portion of the proceeds of the Certificates is to be used to
acquire the Maintenance Facility. The City currently leases the Maintenance Facility from the
Corporation, a local government corporation created by the City to act on its behalf in connection
with the initial financing of the Maintenance Facility. As a condition to the issuance of the
Certificates, Certificates may not be issued to acquire the Maintenance Facility unless the result
realized from the purchase of the Maintenance Facility is that the City realizes a net present
value savings on the outstanding principal amount of the obligations issued by the Corporation to
finance the Maintenance Facility (the "Refunded Obligations"). The Pricing Officer may elect
not to issue Certificates for the acquisition of the Maintenance Facility, but may elect to issue
Certificates for any one or more of the other purposes described in Section 2 of this Ordinance,
should the savings threshold described above not be realized at the time the Purchase Contract is
executed. On or before the date of delivery of the Certificates, if Certificates are sold to acquire
the Maintenance Facility, the person acting in the capacity of Chief Financial Officer of the City
shall execute and deliver to the City Council a certificate stating that the savings threshold
established in this subsection (d) has been met. The certificate shall specifically state both the
net present value savings and the gross savings realized by the City as a result of refunding the
Refunded Obligations.
Section 2. That the Pricing Officer is authorized to negotiate the sale of certificates of
obligation with respect to the purchase of the Maintenance Facility with a group of investment
banks, in which Citigroup Global Markets Inc. shall be the senior managing underwriter, as
approved by the Pricing Officer. For purposes of Ordinance No. 20876-08-2013, the term
"Underwriters", as used in connection with the sale of certificates of obligation to acquire the
Maintenance Facility, shall mean those investment banks named in the Purchase Contract
executed in connection with the sale of certificates of obligation to acquire the Maintenance
Facility.
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Section 3. That except as amended by this Ordinance, Ordinance No. 20876-08-2013
remains in full force and effect.
Section 4. That in accordance with the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall be effective immediately upon its adoption by the City
Council.
Section 5. That it is hereby officially found and determined that the meeting at which
this Ordinance was passed was open to the public, and public notice of the time, place and
purpose of said meeting was given, all as required by Chapter 551, Texas Government Code, as
amended,
ADOPTED this 10th day of September, 2013.
Mayor, City of Fort Worth, Texas
ATTEST:
City Secret
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City of Fort,,,,, orth, Texas
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APPROVED AS TO FORM AND LEGALITY:
City Attorn
City of Vv�orth, Texas
Signature Page—Amendatory Ordinance Authorizing Issuance of Certi ficates of Obligation
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THE STATE OF TEXAS
COUNTIES OF TARRANT, DENTON PARKER, WISE AND JOHNSON
CITY OF FORT WORTH
1, Mary Kayser, City Secretary of the City of Fort Worth, in the State of Texas, do hereby
certify that I have compared the attached and foregoing excerpt from the minutes of the regular,
open, public meeting of the City Council of the City of Fort Worth, Texas held on September 10
2013, and of the ordinance amending Ordinance No. 20876-09-2013, authorizing the issuance of
Certificates of Obligation, which was duly passed at said meeting, and that said copy is a true
and correct copy of said excerpt and the whole of said ordinance. Said meeting was open to the
public, and public notice of the time, place, and purpose of said meeting was given, all as
required by Chapter 551, Texas Government Code, as amended.
In testimony whereof, I have set my hand and have hereunto affixed the seal of said City
Worth,of Fort this /
rt rt p .day of September, 2013.
14" ' 0 R
A; I t " City Secreta
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City of Fort Worth, Texas
4
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 911012013 - Ordinance No, 20930-09-2013
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DATE. Tuesday, September 10, 2013 REFERENCE NO.: G-17992
LOG NAME: 13SERVICE CENTER AQUISITION
SUBJECT:
Amend Mayor and Council Communication G-17980 to Revise Parameters of the Sale of City of Fort Worth
Combination Tax and Revenue Certificates of Obligation for the Acquisition of the James Avenue
Maintenance Facility and Adopt Ordinance Amending Ordinance No. 20876-08-2013 with Revised
Parameters (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Amend Mayor and Council Communication G-17980 to revise the parameters of the sale of
Combination Tax and Revenue Certificates of Obligation in reference to the acquisition of the James
Avenue Maintenance Facility; and
2. Adopt the attached Ordinance amending Ordinance No. 20876-08-2013 to reduce the requirement of a
present value savings from 3.50 percent to present value savings.
DISCUSSION:
On August 20, 2013, (M&C G-17980) the City Council adopted an ordinance establishing the parameters
regarding the sale of Combination Tax and Revenue Certificates of Obligation (CO'S). The ordinance
provided that part of the proceeds from this sale was to be used to acquire a maintenance facility located
on James Avenue, Fort Worth, Texas 76115 (Maintenance Facility). Currently the City leases the
Maintenance Facility from Service Center Relocation, Inc., on a Lease with an Option to Purchase
Agreement.
The notice of intent approved by the City Council at its July 16, 2013 meeting provided that the acquisition
of the Maintenance Facility was to proceed if a present value savings on the outstanding Service Center
Relocation, Incorporated bonds could be realized.
The Mayor and Council Communication and ordinance included a condition for the sale of the CO's to
acquire the Maintenance Facility that the resulting retirement of the Service Center Relocation, Inc., bonds
must enable the City to achieve a present value savings of at least 3.50 percent of the outstanding bonds
issued to finance the Maintenance Facility. However, the primary purpose in authorizing the issuance of
certificates of obligation was to pay the option purchase price and acquire the Maintenance Facility. The
minimum savings threshold of 3.50 percent therefore should not apply.
The purpose of this Mayor and Council Communication is to amend M&C G-17980 and Appropriation
Ordinance No. 20876-08-2013 to reduce the 3.50 percent savings parameter to a present value savings,
thus facilitating the purchase of the Maintenance Facility.
Logname: 13SERVICE CENTER AQUISITION Pagel of 2
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All other terms of M&C 0-17980 and the associated appropriation ordinance will remain the same.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds will be available upon completion of the
sale, closing and delivery of the Combination Tax and Revenue Certificates of Obligation issued for the
purchase of the Maintenance Facility.
FUND CENTERS:
TO Fund/Accou nt/C enters FROM Fu nd/Accou nt/C enters
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Jay Chapa (8517)
Additional Information Contact: Lisa Parks (6630)
Logname: 13SERVICE CENTER AQUISITION Page 2 of 2