Minutes TC 01/28/2002 - Special SessionMINUTES OF
SPECIAL TOWN COUNCIL MEETING
FOR THE
TOWN OF TROPHY CLUB
JANUARY 28, 2002
STATE OF TEXAS
COUNTY OF DENTON
The Town Council of the Town of Trophy Club, Texas, met in Special Session on Monday, January
28, 2002. The meeting was held within the boundaries of the Town and was open to the public.
SPECIAL SESSION
TOWN COUNCIL MEMBERS PRESENT:
Scott Smith
Mayor
Susan Edstrom
Mayor Pro Tem
Bill Matthai
Council Member
Barry Huizenga
Council Member
TOWN COUNCIL MEMBERS ABSENT:
Scott Spence Council Member
Roger Williams Council Member
STAFF AND GUEST(S) PRESENT:
Donna Welsh
Town Manager
Diane Cockrell
Town Secretary
Roger Unger
Finance Director
Pete Tart
Bond Attorney
Dan Almon
Southwest Securities
CALL TO ORDER AND ANNOUNCE A QUORUM:
Mayor Smith called the Special Session to order at 8:02 a.m., noting a quorum was present.
INVOCATION: Council Member Huizenga gave the invocation.
PLEDGE OF ALLEGIANCE TO THE AMERICAN AND TEXAS FLAG:
Mayor Pro Tem Edstrom led the pledges.
CITIZEN PRESENTATIONS: THIS IS AN OPPORTUNITY FOR CITIZENS TO ADDRESS
THE COUNCIL ON ANY MATTER WHETHER OR NOT IT IS POSTED ON THE
AGENDA. THE COUNCIL IS NOT PERMITTED TO TAKE ACTION ON OR DISCUSS
ANY PRESENTATIONS MADE TO THE COUNCIL AT THIS TIME CONCERNING AN
ITEM NOT LISTED ON THE AGENDA. THE COUNCIL WILL HEAR PRESENTATIONS
ON SPECIFIC AGENDA ITEMS PRIOR TO THE COUNCIL ADDRESSING THOSE ITEMS.
Ms. Fran Hatzenbuhler addressed the Council.
TOWN COUNCIL TO DISCUSS AND TAKE APPROPRIATE ACTION REGARDING AN
ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AUTHORIZING THE
ISSUANCE SALE, AND DELIVERY OF TOWN OF TROPHY CLUB TEXAS GENERAL
Page 2 SPECIAL SESSION January 28, 2002
OBLIGATION REFUNDING BONDS SERIFS, 2002; ESTABLISHING BOND AMOUNT
AND PURPOSE; PROVIDING FOR DESIGNATION OF THE BONDS; PROVIDING FOR
INITIAL DATE, DENOMINATION, NUMBER, MATURITIES, INITIAL REGISTERED
OWNER, AND CHARACTERISTICS OF THE INITIAL BOND; PROVIDING FOR
INTEREST; PROVIDING FOR THE FORM OF THE INITIAL BOND; DEFINING
ADDITIONAL CHARACTERISTICS OF THE BONDS; PROVIDING FOR THE FORM OF
SUBSTITUTE BONDS; PROVIDING FOR TAX LEVY; PROVIDING FOR DEFEASANCE
OF BONDS; PROVIDING FOR DAMAGED, MUTILATED, LOST, STOLEN OR
DESTROYED BONDS; ESTABLISHING GUIDELINES FOR CUSTODY, APPROVAL, AND
REGISTRATION OF BONDS, BOND COUNSEL'S OPINION, CUSIP NUMBERS, AND
CONTINGENT INSURANCE PROVISION, IF OBTAINED; PROVIDING COVENANTS
REGARDING TAX EXEMPTION; PROVIDING FOR THE DISPOSITION OF PROJECT;
PROVIDING FOR CONTINUING DISCLOSURE; PROVIDING FOR SALE OF BONDS;
PROVIDING FOR APPROVAL OF THE OFFICIAL STATEMENT; PROVIDING FOR
APPROVAL OF ESCROW AGREEMENT AND TRANSFER OF FUNDS; PROVIDING FOR
NOTICE OF REDEMPTION; PROVIDING FOR NOTICE TO PAYING AGENT,
REGISTRAR AND PUBLICATION; PROVIDING FOR INTEREST EARNINGS ON BOND
PROCEEDS; PROVIDING REASONS FOR REFUNDING; PROVIDING FOR AN
INTEREST AND SINKING FUND; PROVIDING FOR INSURANCE; PROVIDING FOR
PUBLIC NOTICE; GENERALLY AUTHORIZING THE MAYOR TO EXECUTE ALL
NECESSARY DOCUMENTS; PROVIDING A CUMULATIVE CLAUSE; PROVIDING FOR
SAVINGS; PROVIDING SEVERABILITY; PROVIDING FOR PUBLICATION; PROVIDING
FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE.
Mr. Dan Almon explained the final document and the bond market. Net savings is $79,150.99;
present value of that is $68,973 or 4.68% of the par value of bond being refunded. First year savings
is $62,605. Net interest cost is 4.38% with average interest rate of 4.18%. Average life of issue is
8.488 years. Bonds may be redeemed in approximately 8'/2 years (09-01-10) at par without bank
consent and bank qualified.
Roger Unger added we have substantially reduced the negatives and are still on track to save up to
$62,000 to $67,000.
Pete Tart explained the need to adopt the ordinance authorizing the issuance of the bonds, which will
authorize the bonds at those interest rates and under the terms noted. Adding, there is an option to
prepay these bonds - September 1, 2010, adding that we have the ability to prepay all bonds maturing
in 2011 to 2014. The ordinance authorizes the issuance of the bonds, awards bonds to First Southwest
Company, authorizes the execution of an escrow agreement with JP Morgan Chase, authorizes a
paying agent registrar agreement with Chase, authorizes the purchase agreement with the purchaser
(First Southwest) and the notice of redemption.
Council Member Huizenga made a motion to approve the bond ordinance as written. Mayor Pro Tem
Edstrom seconded; motion carried unanimously.
Page 3 SPECIAL SESSION January 28, 2002
ADJOURN.
Council Member Huizenga made a motion to adjourn at 8:28 a.m. Council Member Matthai
seconded; motion carried unanimously-
V.1
nanimously-
a
Town Secretary, own of Trophy Club, Texas
Mayor, Town of T y Club, Texas
W
ATTEST:
a
Town Secretary, own of Trophy Club, Texas
Mayor, Town of T y Club, Texas