06-A UARCO - CO ReimbursementAGENDA INFORMATION SHEET
PROJECT: A resolution expressing official intent to reimburse the cost of acquiring and improving
the UARCO building as a new law enforcement center from the proceeds of the sale of Certificates
of Obligation.
BACKGROUND: As part of the process for issuing Certificates of Obligation to fund the
acquisition of the UARCO building and the conversion of that building to the City's police, jail, and
municipal courts building, the Citymustissue aresolution expressing official intentto reimburse costs
incurred by the City in furtherance of the project before the Certificates are actually sold. Because
the City is at the point of approving a real estate purchase agreement to acquire the building, which
will require a$25,000 earnestmoney payment, and also atthe point of hiring an architectto perform
the substantive design and conshuction services associated with the project, it is appropriate to adopt
such a resolution at this time before substantial costs are incurred. Mr. Pete Tart of the law firm of
McCall Parkhurst, the City's bond counsel, recommends adoption of this resolution at this time.
DESCRIPTION: The enclosed resolution would express the City's official intent to reimburse those
costs incurred by the City associated with acquiring the UARCO building and beginning the process
of converting that building to the City's new police, jail, and municipal court facility from the
proceeds of the future sale of Certificates of Obligation.
COST: There is no cost directly associated with adopting the resolution.
RECOMMENDED ACTION: Consider adoption of the proposed resolution.
STAFF CONTACT: Larry W. Schenk, City Attorney; and Michael E. Malone, City Manager
SCHEDULE: It is appropriate to adopt the resolution at this time because of the other actions the
City is taking incidental to the project.
COUNCIL DATE: Consider for approval at City Council's May 13, 2002, regular Council meeting.
ADDITIONAL MATERIALS: See attached proposed resolution.
DRAFT
J:WttorneyW.ICE~6WO~CURRENT~timbursemeutUARCO BltlgRes.wptl
May 10, 2002
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, EXPRESSING OFFICIAL INTENT TO REIMBURSE
COSTS OF CITY ACQUISITION AND IMPROVEMENTS FOR THE
UARCO BUILDING WHICH WILL BE CONVERTED TO A LAW
ENFORCEMENT CENTER FOR POLICE, COURTS AND JAIL; MAHING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Paris (the "Issuer") is a municipality of the State of Texas; and,
WHEREAS, the Issuer expects to pay expenditures in connection with the purpose of paying
all or a portion of the City's contractual obligations for the purpose of acquiring an 83,000 sq. ft.
building situated on 23 acres being referred to as the UARCO Building, which will be converted to
a law enforcement center for police, court, and jail facilities (the "ProjecY'); and,
WHEREAS, the Issuer finds, considers, and declares thatthe reimbursement of the Issuer for
the payment of such expenditures will be appropriate and consistent with the lawful objectives of the
Issuer and, as such, chooses to declare its intention, in accordance with the provisions of Section
1.150-2 of the Treasury Regulations, to reimburse itself for such payments at such time as it issues
obligations to finance the Project NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the Issuer reasonably expects to incur debt, as one or more series of
obligations, with an aggregate maximum principal amount not to exceed $6,000,000.00 to pay for
the Project.
Section 3. That all costs to be reimbursed pursuant hereto will be capital expenditures. No
tax-exempt obligations will be issued by the Issuer in furtherance ofthis Resolution after a date which
is later than 18 months after the later of (1) the date the expenditures are paid ar(2) the date on which
the property, with respect to which such expenditures were made, is placed in service.
Section 4. That the foregoing notwithstanding, no tax-exempt obligation will be issued
pursuant to this Resolution more than three years after the date any expenditure which is to be
reimbursed is paid.
Section 5. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 13th day of May, 2002.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney