NEW BUSINESS  ITEM #1    MCCALL PARKHURST & HORTON  Focused on Public Finance since 1919.  MEMORANDUM  TO: FROM: RE: DATE:  Warren Escovy J. Bart Fowler Series 2024 May 17,2024  City of Blanco, Texas Combination Tax and Revenue Certificates of Obligation,  Belowist the proposed agenda language in connection with the delegation ordinance fori the  above-captioned obligations scheduled for an upcoming City Council meeting:  U  Consideration and action with respect to RESOLUTION AUTHORIZING PROCEEDING WITH ISSUANCEOFCERTIFICATES OF OBLIGATION AND FURTHER DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CITY OF BLANCO, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES  2024."  Please do not hesitate to contact mei ifyou have any questions.  cc: Steven Perry  600 Congress Ave. Suite 1800 Austin, Texas 78701 T512.478.3805 F512.472.0871  717 North Harwood Suite 900 Dallas, Texas 75201 T214.754.9200 F214.754.9250  Two. Allen Center 1200 Smith Street, Suite 1550 Suite 1525 Houston, Texas 77002 T713.980.0500 F713.980.0510  700 N. St. Mary's Street San Antonio, Texas 78205 T.210.225.2800 F210.225.2984  www.mp    RESOLUTION NO. 2024-  RESOLUTION AUTHORIZING PROCEEDING WITH ISSUANCE OF CERTIFICATES OF OBLIGATION AND FURTHER DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CITY OF BLANCO, TEXAS COMBINATION TAX AND REVENUE  CERTIFICATES OF OBLIGATON,SERISZNA  THE STATE OF TEXAS COUNTY OF BLANCO CITY OF BLANCO  $ S $  WHEREAS, the City Council (the "Council") of the City of Blanco, Texas (the "City") has determined it to be in the City 's best interest to issue certificates of obligation for paying all or aj portion of the City's contractual obligations incurred or to be incurred for (i) constructing improvements and extensions to the City's water system (the "System") including expanding and equipping the System and (ii) payment of professional services in connection therewith including legal, engineering, architectural and fiscal fees and the costs ofi issuing the Certificates (collectively  the "Project"); and  WHEREAS, the Council has deemed it advisable to give notice of intention to issue the Certificates in a maximum principal amount not to exceed $3,500,000 pursuant to the provisions ofthe Certificate of Obligation Act of1971, Section 271.041 et seq., Local Government Code, as  amended (the "Act"), for the purpose of financing the Project; and  WHEREAS, prior tot the issuance oft the Certificates, the Council isi required under Section 271.041 et seq., Local Government Code to publish notice ofitsi intention to issue the Certificates inar newspaper of general circulation in the City and continuously on the City's website, the notice stating: (i) the time and place tentatively set for the passage oft the order authorizing the issuance of the Certificates, (ii) the purpose of the Certificates to be authorized; and (iii) the manner in which the Certificates will be paid; (iv) the then-current principal of all outstanding debt obligations of the issuer; (v) the then-current combined principal and interest required to pay all outstanding debt obligations oft the issuer on time and in full; (vi) the maximum principal amount ofthe certificates to be authorized; (vii) the estimated combined principal and interest required to pay the certificates to be authorized on time and in full; (viii) the estimated interest rate for the certificates to be authorized or that the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (ix) the maximum maturity date of the certificates to be  authorized.  WHEREAS, the meeting at which this Resolution is adopted was open to the public and public notice oft the time, place and purpose of the meeting was given, all as required by Chapter  551, Government Code, as amended.  BLANCOCTSRC0:2024: NOTICE.RES    THEREFORE, BEI IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF  BLANCO, TEXAS: 1.  Attached hereto is a form of the Notice of Intention to Issue the Certificates, the  form and substance of which is hereby adopted and approved.  2. The City Secretary shall cause said notice to be published in substantially the form attached hereto, in a newspaper, as defined by Subchapter C, Chapter 2051, Texas Government Code, of general circulation in the area of the City, once a week for two consecutive weeks, the date of the first publication thereoft to be before the 45th day before the date tentatively set for the  passage oft the ordinance authorizing the issuance ofthe Certificates.  3.  The City Secretary shall cause said notice to be continuously published in  substantially the form attached hereto on the City's website for at least 45 days before the date tentatively set: for the passage of the ordinance authorizing the issuance oft the Certificates. Secretary is hereby authorized and directed to execute the certificate to which this Resolution is attached on behalf of the City and the Mayor, City Secretary, the City Manager and Director of Finance are further authorized to do any and all things proper and necessary to carry out the intent ofthis Resolution including approving appropriate changes to the notice and approving the final form of any Preliminary Official Statement for distribution to the market in connection with the  4.  This Resolution shall become effective immediately upon adoption. The City  sale oft the Certificates.  5. The City hereby authorizes the disbursement of a fee equal to the lesser of (i) one- tenth of one percent oft the principal amount of each series oft the obligations being issued or (ii) $9,500 per series, provided that such fee shall not be less than $750, to the Attorney General of Texas Public Finance Division for payment oft the examination fee charged by the State ofTexas for the Attorney General's review and approval of public securities and credit agreements, as required by Section 1202.004 of the Texas Government Code. The appropriate member of the City's staffisl hereby instructed to take the necessary measures to make this payment. The City is also authorized to reimburse the appropriate City funds for such payment from proceeds of the  obligations.  [Execution Page Follows]  BLANCOCISACO:2024: NOTICE.RES    PASSED, APPROVED AND EFFECTIVE THIS MAY 2024.  City Secretary, City of] Blanco, Texas  Mayor, City of Blanco, Texas  [SEAL]  BLANCOCTSRCOS2024: NOTICE.RES    NOTICE OF INTENTION TO ISSUE CITY OF BLANCO, TEXAS SERIES 2024  COMBINATIONTAX AND REVENUE CERTIFICATES OF OBLIGATION,  NOTICE is hereby given that iti is the intention of the City Council of the City of] Blanco, Texas to issue Certificates of Obligation (the "Certificates") of the City in one or more series for the purpose of providing funds for paying contractual obligations incurred or to be incurred for: (i) constructing improvements and extensions to the City's water system (the "System") including expanding and equipping the System and (ii) payment of professional services in connection therewith including legal, engineering, architectural and fiscal fees and the costs of issuing the Certificates. The City Council tentatively proposes to authorize the issuance of the Certificates at its regular meeting place, Byars Building, 308 Pecan St., Blanco, Texas to be commenced at 6:00 p.m., on1 the 16th day ofJuly, 2024. The City Council presently proposes toj provide for the security and payment oft the Certificates by a pledge of ad valorem taxes upon all taxable property within the City within the limits allowed by law and from al limited pledge oft the City's surplus water and  sewer system revenues not to exceed $1,000.  The following information is required pursuant to Texas Local Government Code, Section 271.049(b)(4): As ofl May - 2024 the principal of all outstanding debt obligations of the City is principal amount of the Certificates to be authorized is $3,500,000. The estimated combined principal and interest required to pay the Certificates to be authorized on time and in full is estimates takei into account ai number ofi factors, including the issuance schedule, maturity schedule and the expected ratings oft the proposed Certificates. Such estimated maximum interest rates is provided as a matter of information, but is not a limitation on the interest rate at which the Certificates, or any series thereof, may be sold. The maximum maturity date oft the Certificates to  $  As of May  2024, the combined principal and interest required to pay all  outstanding debt obligations of the City on time and in full is $  The maximum  $  The estimated interest rate for the Certificates tol be authorized is  %. Such  be authorized is  20  BLANCOCTSRCO:2024: NOTICE.RES    City ofBlanco Schedule of] Events  DRAFT  Combination Tax & Revenue Certificates of Obligation Series 2024-TWDB DWSRF #62938  May-24 1 2 3 4  Jun-24  Jul-24 12 3 456  Aug-24  SMTw T F S SM TWT! Fs SMT W TFs SM TW T F s 5 67 89 10 11 2 34 5678 7 891011 12_13 45 6 7 8 9 10 12 13_14 15 16 171 18 91011 12_13_1415 14167D890, 1112 13 14_15 16 17 19 2021 22 23 24 25 16_171 18 19 20_2122 21 22_23 2425_26_27 18 19 20 2122 23 24  2 3  26 27_28 29 30 31  23 24_25 26_27 28_29 28_29_30_31  25 26_27/28 29 30 31  30  Sep-24 M T W T F S 3 4 5 6 7 8 9101112 13 14 15_16_17 18 19 20 21 2223/24/2526 2728 29_30  Complete By 11-Jun-24 28-Jun-24  Day Tuesday Friday  Event  City Council Authorizes Publication ofNotice of] Intent to Sell COs Last Datet to Publish First Notice of] Intent to Sell COs  Bond Counsel Distribute First Drafts of] Bond Ordinance and Related Documents Financial Advisor Distributes First Draft ofPrivate Placement Memorandum  4-Jul-24 5-Jul-24 23-Jul-24 6-Aug-24 13-Aug-24 15-Aug-24 24-Aug-24 29-Aug-24 31-Aug-24 5-Sep-24 13-Sep-24  Thursday Friday Tuesday Tuesday Tuesday Thursday Saturday Thursday Saturday Thursday Friday  Comments Due tol Bond Documents &1 PPM Last Datet tol Publish Secondl Notice of Intent to Sell CO's Final Bond Documents &1 PPM: sentt to' TWDB Texas Water Development Board Sets Interest Rates City Council. Adopts CO Ordinance PPMI Finalized Invoices Due to City for Outlay Report Outlay] Report Due to' Texas Water Development Board Escrow Release Authorization from City Receive. AG Opinion; Final Submission to' TWDB Closing and Delivery of Funds  PARTICIPANTS  City of Blanco (City)- Issuer McCall, Parkhurst &1 Horton LLP- Bond Counsel D.A. Davidson & Co. Financial Advisor    NEW BUSINESS  ITEM #2    Performance Services Tol Whom It May Concern,  October 31, 2022  Performance Services is concerned. and disappointed over thet federal investigations andi indictments in Hidalgo County, Texas, that were announced earlyi in: 2022. We were unaware of anyi inappropriate activities that were occurring and are fully cooperating witht the US Attorneya and FBI offices. The authorities shared with ust that theyb believe PSIi is not a subject oft thei investigation. Since our founding 24 years ago, nol PSI employee has ever been accused of unethical behavior with Thei indictments indicate that some of the local subcontractors of our public entity customers, were a partial source of various kickbacks or bribest tos government officials. These government officials also appeart tol havel beene engaging in other Wheni indictments initially indicated: al PSI employee was involved, PSI immediately put the employee on Administrative Leave and have since terminated their employment. PSI is hopeful the remaining indictments willl be issued soon sO we can fully understand exactly what transpired. We do not believe any other PSI employees were involved. We have not Thiss summer, thel Texas Facilities Commission (TFC) heldac competitive procurement: andi issueda al Request for Qualification seeking energy performance companies to deliver an Investment Grade Audit and then design and construct an Energy Savings Project for ten state buildings (Texas Project #: 23-002-1221; TFC Energy Savings Performance Contract Phase V). Afterathorough: assessment througha aj proposal, interview andr reference checks, TFC selected PSI and one other company on October 3, 2022, to deliver five buildings each back to the state by the end of 2024. This selection displays the PSI's company culture is built on our Guiding Principles, Fundamentals and requires our employees to deal ethically with customers, business partners and coworkers. We: arej proud of our record as al high-integrity: and top-quality public works construction provider since 1998. Wel lookf forwardi to delivering excellent workf fori the! benefit oft the generations to come  customers or business partners.  inappropriate procurement activities unrelated to our contracts.  learned anymore froma authorities over thel lastf fiver months.  confidence the State of Texas hasi in our people, process, customer focus andi integrity.  inl Texas andi throughout the United States. Tim1 Thoman,Président:  RRlc  Sincerely,  and CEO  Jim  801E E. Old Settlers Blvd., Suite 100] Round Rock, TX78664 Ph: 888.390.2700 Fax317.713.1751 wmpertomancewnvescon    RESOLUTION: 2024-R-012  RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BLANCO, TEXAS, AUTHORIZING THE CITY TO ENTER INTO A PERFORMANCE GUARANTEE CONTRACT WITH PERFORMANCE SERVICES, INC. RELATING TO THE ACQUISITION AND. INSTALLATION OF) PERSONALPROPROPERTY,AND ENTER INTOA PUBLIC PROPERTY FINANCE ACT LEASE PURCHASE AGREEMENT WITH FIRST SECURITY FINANCE, INC, TO FINANCE THE COSTS THEREOF; AND APPROVING CERTAIN OTHER DOCUMENTS AND. ACTIONS IN CONNECTION THEREWITH. WHEREAS, the City of Blanço, Texas (the "City") is a political subdivision duly organized under the WHEREAS, iti is hereby determined that at true and real need exists for the acquisition and installation of certain personal property, consisting of approximately 1,231 water meters and related advanced metering infrastructure improvements at various locations throughout the City and other areas served by the City's water department, andi replacement ofthe Palomino Water Line (collectively, the "Project"), asi identified int the herein-after WHEREAS, the City is authorized under the Constitution and laws oft the State of Texas (the "State") to enter into aj public property finance act lease purchase agreement to finance the acquisition and installation oft the WHEREAS, in order to accomplish the foregoing, iti is necessary and desirable for the City to enter into the  constitution and laws ofthe State ofTexas; and  defined) Performance Guarantee Contract; and  Project; and  following documents (the "Transaction Documents"):  Performance Guarantee Contract (the "Contract") between the City and Performance Public Property Finance Act Lease Purchase Agreement (the "Agreement") with First  Services, Inc. relating to the acquisition andi installation oft the Project;  2.  Security Finance, Inc., as lessor (the* "Lessor"), in aprincipal amount (including capitalization ofi interest and closing costs) not to exceed $1,900,000, ai maturity date ofno later than December 31, 2044, and an interest rate of5,49% per annum, for the purposes described therein, includingt to provide financing for the Project; establishing an acquisition: fundi into which the Lessor will deposit an amount equal tot the aggregate principal expectations, terms and conditions relating to the use and investment of the proceeds of the Agreement in order to establish andi maintain the exclusion oft the interest portion of rental payments under the. Agreement from gross income for federal income tax purposes andi in order to provide guidance for complying with the arbitrage rebate provisions oft the Internal Revenue Code upon the terms and conditions as set forth in the NOW,THEREFORL, BEI ITI RESOLVED, BY THE CITY COUNCIL OF' THE CITY OF BLANCO, Section 1. The Transaction Documents are hereby approved in substantially the forms submitted to and reviewed by the City Council of the City on the date hereof, with such changes therein as are deemed necessary by the City'sattorney: and approvedl byt thel Mayor ort the City Administrator ofthe City (each, an" Authorized City Officer"), said officer's execution thereoftol be conclusive evidence ofthe approval thereof. The Authorized City Officerishereby authorized and directed to execute and deliver the Transaction Documents on behalfo of and as the act and deed oft the City. The City Secretary is hereby authorized tos affix the City's seal thereto and attest such as may be necessary..  3. 4.  Escrow. Agreement with thel Lessor and the escrow agent named therein fort thep purpose of Federal Tax Agreement (the "Tax Agreement"), setting forth certain representations, facts,  components of rental payments under the Agreement; and  Tax Agreement. TEXAS, ASI FOLLOWS:    Section 2. During the term oft the Agreement, as security for the amount necessary to payt the rental payments and all other amounts payable thereunder, the City has agreed to pledge its ad valorem taxes. The City will use its revenues generated from the operation and maintenance tax levy under Article XI, Section 4, Texas Constitution (the "Limited Tax") revenues and other revenues and funds lawfully available to pay the rental payments and all other amounts payable under the Agreement and shall deposit all such funds in accordance the Agreement. Pursuant to the Agreement, the City shall levy and agrees to assess and collect, a continuing direct annual Limited Tax on all taxable property within thel boundaries ofthe City, within the limitations prescribed byl law, at ar rate from year toy years sufficient, together with such other revenues and funds lawfully available to the City for the payment of rental payments and all other amounts) payable undert the Agreement, to provide funds eachy year toj payt the rental payments and all other amounts payable under the Agreement, full allowancel being made for delinquencies and costs of collection. Thel Limited" Tax and such revenues and funds in an amount sufficient to pay rental payments and all other amounts payable under the Agreement shall be pledged to the Lessor for such purpose as the same shall become due and payable under the Section 3. The City hereby designates the Agreement as a "qualified tax-exempt obligation" for purposes of Section 265(b) of the Internal Revenue Code. In furtherance of such designation, the City represents, covenants and warrants thei following: (a) during thec calendar year 2024, the City (including any subordinate entities)! has not designated nor will it designate obligations, which when aggregated with the Agreement, will resulti in more than $10,000,000 of "qualified tax-exempt obligations" being issued; (b) the City reasonably anticipates that the amount of tax-exempt obligations issued during the calendar year 2024 by the City (including any subordinate entities) will not exceed $10,000,000; and (c)the City willi take such action orT refrain from sucha action asi isi necessary in order thatt the Agreement Section 4. The City shall, and the officials and agents of the City are hereby authorized and directed to, take such action, expend such funds and execute such other documents, certificates and instruments as may be neçessary or desirablei to carry out and comply with the intent of this resolution and1 to carry out, comply with andj perform the duties ofthe City with respect tot the Transaction Documents andt the acquisition andi installation oft the Project. Section 5, The City has made certain capitale expenditures in connection with the acquisition andi installation of thel Project prior tot the datel hereof, and the City expects to make additional capital expenditures in connection with the acquisition andi installation thereofi in the future. The City intends to reimburse itself for all or aj portion of such expenditures, to the extent permitted by law, with the proceeds of the Agreement or other tax-exempt obligations to be delivered byt the City. The maximum principal amount oft the Agreement or other tax-exempt obligations expected  Agreement,  will not be considered" "private activity bonds" within thei meaning of section 141 ofthe Code.  tol be delivered for the Project is not expected to exceed $1,900,000.  Section 6. This resolution will take effect and bei in full force from and after its adoption by the City Council PASSED byt the City Council oft the City of Blanco, Texas this 14th day ofMay, 2024.  ofthe City.  CITY OFI BLANCO,TEXAS By: Name: Mike Arnold Title: Mayor  [SEAL] ATTEST: By: Name: Laurie Cassidy, TRMC Title: City Secretary