HomeMy WebLinkAbout11-22-83-10 - Resolution - 11/22/1983RESOLUTION NO.
11-22-83-10
WHEREAS, the City staff has conducted a review of the legal,
financial, and administrative implications of the formations
of municipal utility districts within the City of College
Station and has advised the Council that the utilization of
such districts by developers entails certain advantages and
disadvantages for the City as a whole; and
WHEREAS, the staff has recommended that should the City
consent to the formation of any municipal utility districts,
that certain conditions should be imposed and should be
incorporated in a utility agreement prior to such consent;
and
WHEREAS, the Council has reviewed the merits of potential
municipal utility district utilization;
NOW, THEREFORE, be it resolved that the City of College
Station will not give favorable review until it has given
thorough consideration of the specifics of the proposed
Municipal Utility District and until all of the following
criteria and conditions are met:
A. No utility districts will be considered within
the ETJ.
B. Final consent to formation of a municipal
utility district shall depend upon approval and
execution of a utility agreement for acceptance
by the Municipal Utility District Board at its
organization meeting. A sample agreement is
attached to this Resolution, but may be
modified or revised as the particular
circumstances of each district requires, and
shall not necessarily be the form utilized, nor
does it contain all of the terms and
considerations which may be included and
required by the City for its consent. All
provisions in such future utility agreement
shall be subject to approval by the City
Council after preliminary approval by the City
Attorney, the City's Bond Counsel, and the
City's Financial Advisor.
C. The following conditions shall be imposed or
implemented in the utility agreement for any
district:
1. Approval of engineering plans for all
proposed facilities.
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2. Maximum cumulative assessed value overlap of
twelve percent (12%) of the City tax base
(City tax base times twelve percent (12%) =
total debt for all overlapping
jurisdictions, including the direct debt of
the City.
3. Bonds shall be sold at a rate no higher than
the Bond Buyer's 20 Bond Index in the last
thirty (30) days, plus two percent (2%).
4. City shall approve the form of the bonds,
subject to legal requirements imposed by
State or Federal law as to form.
5. City shall approve the form of the
construction of the facilities, which shall
in any event conform to state law
requirement for bidding and bonding.
6. City shall have inspection and approval
rights during construction and upon final
completion.
7. Bond terms shall require sale at not less
than ninety-five percent (95%) par,
requiring public sale, terms may include
fifteen (15) year call at par, and ten (10)
year redemption at a premium of one hundred
two (102).
8. City shall approve each subsequent project
within each district upon the basis of
engineering and economic feasibility.
9. Prior to creation of a Municipal Utility
District, an acceptable administrative
deposit of approximately Twenty-five
Thousand Dollars ($25,000) per district
shall be made. The exact amount of said
deposit may be adjusted to reflect the
City's administrative costs. Said deposit
shall not be returned unless the deposit
exceeds the City's administrative costs.
10. The City shall set and impose all fees and
costs of the system.
11. An acceptable opinion from the City's bond
counsel shall be required, to the effect
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that there is no city coverage overlap or
obligation on any Municipal Utility District
bonds or contractual obligations, and that
no term or provision of the arrangement
violates or impairs existing City bond
covenants or future bond covenants necessary
for the financial integrity of the City's
debt structure.
12. As built drawings shall be submitted prior
to City acceptance.
13. In the absence of city-wide implementation
of capital recovery system, acceptable
arrangements shall be required for pro-rata
contribution to the cost of capital
facilities necessary to supply water and
sewer service within any municipal utility
district.
PASSED, ADOPTED and APPROVED this
November , 1983.
ATTEST:
Cl~Y SECRETAR~
day of
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