SUBJECT: FINAL READING OF ORDINANCE 2002-O-177

Ordinance approving an amendment to the Ordinance 91-O-032 authorizing the City of Laredo, Texas, Subordinate Sewer System Revenue Bonds, Series 1991 and other matters related thereto.

INITIATED BY:

Larry Dovalina, City Manager

STAFF SOURCE:

Pete Tart, McCall Parkhurst & Horton, L. L. P.

Rosario C. Cabello, Finance Director

PREVIOUS COUNCIL ACTION:

On June 17, 2002, City Council approved a Resolution 2002-R-055.

A public hearing and introduction of this ordinance was held on August 5, 2002

BACKGROUND:

The City of Laredo approved Ordinance 91-O-32 authorizing the issuance of City of Laredo, Texas, Subordinate Sewer System Revenue Bonds, Series 1991. On June 17, 2002, City Council approved Resolution 2002-O-55 requesting the Texas Water Development Board to consent to an amendment to Ordinance 91-O-032. Texas Water Development Board has agreed and approved such amendment on July 16, 2002. The amendment will permit the City to enter into agreements with other parties for the operation of the City’s Sewer system

FINANCIAL IMPACT:

None

COMMITTEE RECOMMENDATION:

STAFF RECOMMENDATION:

Approve introduction of Ordinance.

ORDINANCE NO. 2002-0-177

ORDINANCE APPROVING AN AMENDMENT TO THE ORDINANCE NO. 91-0-032 AUTHORIZING THE CITY OF LAREDO SUBORDINATE SEWER SYSTEM REVENUE BONDS, SERIES 1991 AND OTHER MATTERS RELATED THERETO

THE STATE OF TEXAS §

COUNTY OF WEBB §

CITY OF LAREDO §

WHEREAS, on February 11, 1991 the City did adopt an Ordinance NO. 91-0-032 ("Bond Ordinance") authorizing the City of Laredo, Texas Subordinate Sewer System Revenue Bonds, Series 1991, dated February 1, 1991, now outstanding in the principal amount of $990,000 ("Bonds"), which are all owned by the Texas Water Development Board; and

WHEREAS, the City has requested the Texas Water Development Board to agree to an amendment to Section 19 of the City's Bond Ordinance which would permit the City to enter into agreements with other parties for the operation of the City's Sewer System; and

WHEREAS, the Texas Water Development Board at its meeting on July 16, 2002, did adopt the attached Ordinance, attached hereto as Exhibit A, approving the proposed amendment to Section 19 of the City's Bond Ordinance; and

WHEREAS, it is deemed advisable to adopt this Ordinance approving Amendment No. 1 to the City's Bond Ordinance, attached hereto as Exhibit B; and

WHEREAS, the meeting was open to the public and public notice of the time, place and purpose of said meeting was given pursuant to Chapter 551 of the Texas Government Code.

NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO:

1. The City does hereby approve Amendment No. 1 to the City's Bond Ordinance ("Amendment No. 1") to be executed by the Mayor and City Secretary, substantially in the form, attached hereto as Exhibit B. With the Amendment Section 19 to read as follows:

"Section 19. MAINTENANCE AND OPERATION; INSURANCE. While any of the Bonds or Additional Bonds are outstanding, the Issuer covenants and agrees to maintain the System in good condition and to operate this System or to cause the System to be operated by contracting parties, in an efficient manner and at reasonable expense, and that the Issuer may enter into a contract for the operation of such System, and to maintain insurance on the System for the benefit of the holder or holders of the Bonds of a kind and in an amount which usually would be carried by private companies engaged in a similar type of business. Nothing in this Ordinance shall be construed as requiring the Issuer to expend any funds which are derived from sources other than the System, but nothing herein shall be construed as preventing the Issuer from doing so."

2. That all the conditions and provisions of the Bond Ordinance authorizing the Bonds are hereby reaffirmed in all respects.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE _______ DAY OF AUGUST, 2002.

Mayor

ATTEST:

City Secretary

APPROVED AS TO FORM:

City Attorney

‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑

AMENDMENT NO. 1 TO

ORDINANCE NO. 91-0-032 AUTHORIZING THE CITY OF LAREDO SUBORDINATE SEWER SYSTEM REVENUE BONDS, SERIES 1991 AND OTHER MATTERS RELATED THERETO

STATE OF TEXAS :

COUNTY OF WEBB :

CITY OF LAREDO :

1. The Texas Water Development Board, as the owner of all of the City of Laredo, Texas Subordinate Sewer System Revenue Bonds, Series 1991, dated February 1, 1991, now outstanding in the principal amount of $990,000 ("Bonds"), does hereby consent to the following amendment to Section 19 of the City's Bond Ordinance NO. 91-0-032 adopted on February 11, 1991 authorizing the Bonds ("Bond Ordinance"), which will read as follows:

2. That all the conditions and provisions of the Bond Ordinance authorizing the Bonds are hereby reaffirmed in all respects.

SIGNED AND APPROVED THIS THE _____ DAY OF AUGUST, 2002.

TEXAS WATER DEVELOPMENT BOARD

By:

Development Fund Manager

(BOARD SEAL)

CITY OF LAREDO

By:

Mayor

ATTEST:

City Secretary

APPROVED AS TO FORM:

City Attorney

(CITY SEAL)