R2005-0092 05-23-05 Section 1.
and correct.
Section 2.
RESOLUTION NO. R2005-92
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING A BOND ORDER OF BRAZORIA COUNTY
MUNICIPAL UTILITY DISTRICT NO. 3 AUTHORIZING THE ISSUANCE OF
$1,640,000 UNLIMITED TAX AND REVENUE BONDS, SERIES 2005.
WHEREAS, Brazoria County Municipal Utility District No. 3 (the "District")is located
within the extraterritorial jurisdiction of the City of Pearland, Texas (the "City"); and
WHEREAS, by Resolution No. R 80-5, dated January 28, 1980, the City consented
to the creation of the District, and placed certain conditions on the issuance of bonds by the
District, including the approval by the City Council of the District's resolution authorizing the
issuance of such bonds; and
WHEREAS, the City Council has considered such a bond resolution in connection
with the issuance of the District's proposed $1,640,000 Unlimited Tax and Revenue Bonds,
Series 2005, and has found it to be acceptable; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
All of the matters and facts set forth in the preamble hereof are true
The bond order of the board of directors of Brazoria County Municipal
Utility District No. 3, authorizing the issuance of its $1,640,000 Unlimited Tax and Revenue
Bonds, Series 2005, is hereby approved.
Section 3. The Mayor of the City of Pearland is hereby authorized to execute such
letters or other documents required to be provided to the Attorney General of Texas in
connection with the issuance of such bonds by the District.
Section 4. This Resolution shall take effect immediately from and after its
passage in accordance with the provisions of the Charter of the City of Pearland and it is
accordingly so resolved.
RESOLUTION NO. R2005-92
PASSED, APPROVED and ADOPTED this the 23rd day of May
A. D., 2005.
TOM REID
MAYOR
ATTEST:
y/(~ N G 'L'~r~,/F-~I C~, ~R~ //
TY SECTARY ~/ ~'~
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
RATHMANN & ASSOCIATES, L.P.
Four Houston Center
1331 Lamar, Suite 1050
Houston, Texas 77010
(713) 751-1890
(713) 751-1891 Fax
R. Craig Rathmann
Managing Partner
(713) 751-1888
craigCwrathmannassociates.com
Mr. Darrin Coker
City of Pearland, Texas
3519 Liberty Drive
Pearland, TX 77581
May 6, 2005
Re'.
Brazoria County Municipal Utility District
No. 3 $1,640,000 Waterworks and Sewer
System Combination Unlimited Tax and
Revenue Bonds, Series 2005
Dear Dan-in:
As per your conversation with Christie Gutoski in my office, attached please find a draft
Preliminary Official Statement for the above referenced District so that it may be placed on the
agenda for the City Council meeting scheduled for May 23, 2005. A copy of the draft Bond Order
will follow under separate cover from Paul A. Philbin & Assoc., P.C.
Kindly contact the undersigned should you have any questions regarding this matter, or if I
may be of any further assistance.
Sincerely,
RATHMANN & ASSOCIATES, L.P.
By: gCx
.'.
R. Craig Rathmann
Managing Partner
The Bonds will mature serially on September 1 in each of the following years in the following amounts:
Year. Amount Year Amount
2005* $45,000 2013' $105,000
2006* 70,000 2014' 110,000
2007* 70,000 2015' 115,000
2008* 80,000 2016' 120,000
2009* 85,000 2017' 130,000
2010' 90,000 2018' 135,000
2011' 90,000 2019' 145,000
2012' 100,000 2020* 150,000
At the option of the Underwriter (hereinafter defined) as specified in the Official Bid Form, any or all of the
foregoing maturities of the Bonds may be designated as term bonds subject to mandatory sinking fund redemption
provided that the mandatory sinking fund amount in each year shall equal the amounts shown above as maturing in
such year.
The Bonds that mature on and after September 1, 2013, are subject to redemption and payment, at the option of the
District, in whole or, from time to time, in part, on September 1, 2012, or on any date thereafter, at a price equal to the
principal amount to be redeemed plus accrued interest thereon to the date fixed for redemption. If less than all the Bonds
are redeemed at any time, the District shall determine the maturity or maturities and the amounts thereof to be redeemed
in integral multiples of $5,000 in principal amount, and if less than all of the Bonds within a maturity are to be redeemed,
the Registrar shall designate by method of random selection the Bonds within such maturity to be redeemed (or by DTC
in accordance with its procedures while the Bonds are in book-entry-only form). In the event the book-entry-only system
is discontinued, the Bondholder of any Bond, all or a portion of which has been called for redemption, shall be required
to present such Bond to the Registrar for payment of the redemption price on the portion of the Bond so called for
redemption and issuance of an exchange Bond in a principal amount equal to the portion of the Bond not so redeemed.
SECURITY FOR PAYMENT: The Bonds, when issued, will constitute valid and binding obligations of the District,
payable as to principal and interest from the proceeds of a continuing, direct annual ad valorem tax, without legal
limitation as to rate or amount, levied against all taxable property within the District and are further payable from, and
secured by a pledge of and lien on certain net revenues (as defmed in the Preliminary Official Statement), if any, derived
from the operation of the District's waterworks, sanitary sewer, and drainage and storm sewer system (the "System") to
the extent and upon the conditions described in the Prelim/nary Official Statement. See "THE BONDS - Source of
Payment" in the Preliminary Official Statement.
OTHER TERMS AND COVENANTS: Other terms of the Bonds and the various covenants of the District contained
in the Bond Order are described in the Preliminary Official Statement, to which reference is made for all purposes.
MUNICIPAL BOND GUARANTY INSURANCE AND RATINGS: Applications have been made to Ambac Assurance
Corporation ("AMBAC"), Financial Guaranty Insurance Company ("FGIC"), and Financial Security Assurance Inc.
("FSA") to issue a commitment for municipal bond guaranty insurance on the Bonds. The purchase of such insurance
on the Bonds is mandatory, and such insurance must be unconditional, irrevocable and in full force and effect for the
scheduled maturity of the entire bond issue. It is a condition of the District's consideration of any bid on the Bonds that
Standard & Poor's Ratings Services ("S&P") assigns the Bonds a rating not less than "AA," and/or Moody's Investors
Service assigns the Bonds a rating not less than "Aa," based upon the issuance of such municipal bond guaranty
insurance. The payment of all costs associated with the insurance, including the premium charged by the insurer, and
fees charged by any rating companies other than S&P as described below, will be at the option of the Underwriter
(defined below). The Underwriter understands, by submission of its bid, that the Underwriter is solely responsible for
the selection of any insurer and for all negotiations with (i) the insurer as to the premium to be paid, and (ii) the insurer
and any and all rating companies as to selection of such rating companies, the ratings to be assigned the Bonds as a
consequence of the issuance of the municipal bond guaranty insurance policy, and the payment of fees in connection with
Source of Payment ...................
Other Characteristics .................
Use of Proceeds .....................
Payment Record .....................
Principal of and interest on the Bonds are payable from the proceeds
of a continuing, direct annual ad valorem tax, levied upon all taxable
property located within the District, without legal limitation as to rate
or amount, and are further payable from and secured by a pledge of
and lien on certain Net Revenues (as defined herein), if any, of the
District's waterworks and sewer system (the "System"), to the extent
and upon the conditions described herein. The System is not
expected to produce sufficient Net Revenues to make significant
contributions, if any, to future debt service payments. The Bonds are
obligations of the District and are not obligations of Brazoria County,
Texas, the City of Pearland, Texas, the State of Texas or any political
subdivision other than the District. See "THE BONDS - Source of
Payment," "TAX DATA Tax Rate Calculations," and
"INVESTMENT CONSIDERATIONS - Maximum Impact on
District Tax Rates."
The Bonds will be issued in fully registered form in the denomination
of $5,000 each, or integral multiples thereof.
Proceeds of the sale of the Bonds will be used by the District to,
among other items, (i) finance the District's cost of acquisition or
construction of(a) water distribution, wastewater collection and storm
drainage facilities to serve Stonebridge at Silverlake, Sections 2 and
3; (b) Wastewater Treatment Plant, Phase IV; Water Plant Nos. 1 and
2 well rework and recoating; auxiliary generators at lift station; VFD
controls at Wastewater Treatment Plant lift station and blowers; and
odor control at Wastewater Treatment Plant; (ii) pay engineering fees
related to such facilities and projects; (iii) pay interest on funds
advanced on the District's behalf by a developer of land located
within the District; (iv) capitalize an amount equal to the initial twelve
months of interest payments on the Bonds; and (v) pay for issuance
costs, legal fees, fmancial advisor's fees, a fee to the Texas
Commission on Environmental Quality and certain fmancing costs
related to the issuance of the Bonds. See "USE AND
DISTRIBUTION OF BOND PROCEEDS."
The Bonds are the seventh series of bonds authorized by District
voters for the acquisition and construction of the District's System (as
defined herein). The District has previously issued $4,665,000
Waterworks and Sewer System Combination Unlimited Tax and
Revenue Bonds, Series 1996 (the "Series 1996 Bonds"), $2,170,000
Waterworks and Sewer System Combination Unlimited Tax and
Revenue Bonds, Series 1998 (the "Series 1998 Bonds"), $1,770,000
Waterworks and Sewer System Combination Unlimited Tax and
Revenue Bonds, Series 1999 (the "Series 1999 Bonds"), $3,555,000
Waterworks and Sewer System Combination Unlimited Tax and
Revenue Bonds, Series 1999A (the "Series 1999A Bonds"),
$3,400,000 Waterworks and Sewer System Combination Unlimited
Tax and Revenue Bonds, Series 2001 (the "Series 2001 Bonds"), and
$2,920,000 Waterworks and Sewer System Combination Unlimited
Tax and Revenue Bonds, Series 2002 (the "Series 2002 Bonds"). In
2003 the District issued $3,915,000 Waterworks and Sewer System
Combination Unlimited Tax and Revenue Refunding Bonds, Series
2003 (the "Series 2003 Refunding Bonds") to advance refund and