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HomeMy WebLinkAbout1987-1203 TX Water Comm App for Project & Bonds ApprovalRESOLUTION AUTHORIZING APPLICATION TO THE TEXAS WATER COMMISSION FOR APPROVAL OF PROJECT AND BONDS WHEREAS, Denton County Municipal Utility District No. 3, of Denton County, Texas (the "District"), desires to commence acquisition and construction of the initial phase of its waterworks, sanitary sewer, storm sewer and drainage system to serve the land within its boundaries; and WHEREAS, Section 54.516, Texas Water Code, requires the District, when it desires to issue bonds, to submit in writing to the Texas Water Commission (the "Commission") an application for the investigation of the project proposed to be constructed and of the District's bonds proposed to be issued, together with a copy of the engineer's report and a copy of the data, plats, profiles, maps, plans and specifications prepared in connection with such project; and WHEREAS, the Board of Directors desires to secure the approval of the Commission to the purchase and construction of water, sewer and drainage facilities and services necessary to serve the District, and to the issuance of the bonds hereinafter described in Section 1(a) of this resolution; NOW, THEREFORE a/denbd BE IT RESOLVED BY THE BOARD OF DIRECTORS OF DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 3, OF DENTON COUNTY, TEXAS, THAT: Section 1: The President and Secretary of the Board of Directors of the District are hereby authorized and directed as follows: (a) To make application to the Commission pursuant to Section 54.516, Texas Water Code, for an investigation and report on the feasibility of the District's purchasing or constructing water, sewer and drainage facilities and services necessary to serve areas within the District; and (b) To request the Commission to approve the bonds of the District in the principal amount of $3,780,000, bearing interest at a rate not exceeding two percentage points above the Daily Bond Buyer's "20 -Bond Index", and maturing serially in accordance with a schedule to be furnished in an engineering report to the Commission by the District's engineers; and (c) To request the Commission to approve that portion of the District's system described in Section 1(a) and to make a written report thereon, with such report to be filed in the office of the Commission and a copy to be furnished to the Attorney General of Texas and to the Board of Directors of the District. a/denbd (d) To request the Commission to conditionally waive the developer cost participation requirements of §293.47 of the Rules of the Commission in anticipation of the receipt by the District of an acceptable credit rating. Section 2: By this application, the District assures the Commission that, to the extent applicable, it will abide by the terms and conditions prescribed by the Commission, and it will retain ten percent (10%) of all sums due all construction contractors on such portion of the District's system to assure that the system is completed in accordance with the approved plans and specifications. Section 3: Carter & Burgess, Inc., the District's engineers, are hereby authorized and directed to prepare an engineering report in such form as may be required by the Commission to submit the same to the Commission in support of this application. Section 4: The President and Secretary of the Board of Directors, the District's engineers, the District's financial advisors, Southwest Securities, Inc., and the District's attorney, Michael G. Page, are hereby authorized and directed to do any and all things necessary and proper in connection with this application. Section 5: A certified copy of this resolution shall constitute an application and request on behalf of the a/denbd District to the Commission pursuant to Section 54.516, Texas Water Code, and the Rules of the Commission for approval of that part of the District's waterworks, sanitary sewer and drainage system described in Section 1(a) hereof and of the bonds described in Section 1(b) hereof. PASSED AND APPROVED this 3rd day of December, 1987. /sj Michael J. Osborn , President, Board of Directors ATTEST: /s/ Tom Nickols Secretary, Board of Directors (SEAL) a/denbd