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Loans for Refinance Mortgage of Ranch Land in Texas

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					                                                          August 18, 2008

On this the 18th day of August 2008 7:30 P.M., the City Commission of the
City of Hereford, Texas, convened in a regular session in the Commission
Chamber, in the City Hall, the meeting being open to the public and notice
of said meeting having been given as prescribed by Chapter 551 of the
Government Code, with the following members being present and in
attendance, to-wit:

              Robert D. Josserand, Mayor
              Martha Rincon, Commissioner Place One
              Wayne Winget, Commissioner Place Four
              Steve Coneway, Commissioner Place Five
              Sam Metcalf, Commissioner Place Six
              Rick L. Hanna, City Manager
              Suzanne Finch, City Secretary
              Slater C. Elza, City Attorney

Absent:       Angie Alonzo, Commissioner Place Two
              Charlie Kerr, Commissioner Place Three


Joe Southern of the Hereford Brand was present to witness the proceedings.
Assistant City Manager Steve Bartels, HEDC Executive Director Sheila
Quirk, Cynthia Dove & Steve Cline with Allied Waste Industries (B.F.I.),
Terry Langehennig with Panhandle-Plains Student Loan Center, Rocky Favila
with Atmos Energy, Roy Urrutia, Steve Cortez and Matt Cortez were also in
attendance.

Mayor Josserand called upon City Attorney Elza to voice the invocation and
then asked Commissioner Winget to lead the Pledge of Allegiance to the
United States flag. He called the meeting to order, welcomed those in
attendance and introduced each item on the agenda.

REGULAR HEARINGS:

ITEM 1 – Consider approval of minutes for the July 21st, 2008 Regular
Meeting and August 11th Special Meetings.

Commissioner Rincon made the motion to approve the minutes for the July
21st, 2008 Regular Meeting and August 11th Special Meetings. Commissioner
Winget seconded the motion and it passed with the unanimous vote of the
Commission.

ITEM 2 – Hear report from Hereford Economic Development Corporation.

Executive Director Sheila Quirk reported on the following:

             Standard Nutrition
             Dairy Vet Management Services
             Lone Star Calf Ranch
             White Energy
             Panda
             Caviness Packing
             Elliott Electrical Supply
             Milk Update
             Microgy ground-breaking (August 6th)
             Wind Energy update
ITEM 3 – Consider Resolution No. 08.18.08 approving the issuance of
certain obligations by Panhandle-Plains Higher Education Authority, Inc.,
and making certain findings in connection therewith.

Mayor Josserand called upon City Attorney Elza to read the pertinent parts
of Resolution No. 08.18.08.

                      RESOLUTION NO. 08.18.08

      A RESOLUTION BY THE CITY COMMISSION OF THE CITY OF
      HEREFORD, TEXAS, APPROVING THE ISSUANCE OF CERTAIN
      OBLIGATIONS  BY   PANHANDLE-PLAINS HIGHER EDUCATION
      AUTHORITY, INC., AND MAKING CERTAIN FINDINGS IN
      CONNECTION THEREWITH.


      WHEREAS, Panhandle-Plains    Higher Education Authority, Inc. (the
“Authority”) was established as   a non-profit corporation pursuant to the
Texas Non-Profit Corporation      Act, for the purpose of furthering
educational opportunities of      students by providing funds for the
acquisition of student loans;

      WHEREAS, the Authority intends to issue obligations for the above
said purposes;

      NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
HEREFORD, TEXAS:

               SECTION 1.      That the Authority has advised this
Commission that the Authority was unable to issue bonds by May 31, 2008,
as originally intended, and that the Authority now intends to issue bonds
in a principal amount not to exceed $282,500,000 (the “New Bonds”) by
December 31, 2008, utilizing a 2008 Private Activity Bond Allocation and a
2007 Carry forward Private Activity Bond Allocation. The proceeds of the
Bonds will be used by the Authority for the purposes of (1) purchasing
student or parent loan notes which are guaranteed under the Higher
Education Act of 1965, as amended, (2) refunding outstanding obligations
of the Authority, (3) setting aside those funds determined to be necessary
for the payment and security of the Bonds and operating costs, and (4)
paying certain expenses in connection with issuance of the Bonds, all in
accordance with Chapter 53B of the Texas Education Code, as amended, and
other applicable laws of the State of Texas.

               SECTION 2.      That the Authority has advised this
Commission of the Authority’s intention of refunding certain of its
Auction Rate Bonds in an aggregate principal amount not to exceed
$200,000,000 and certain of its Variable Rate Bonds insured by MBIA, Inc.
in the aggregate principal amount of $148,300,000 (collectively, the
“Refunding Bonds”) as soon as possible, since the failed auction rate
market and the downgrade in MBIA have made these obligations of the
Authority subject to penalty interest rates.        The proceeds of the
Refunding Bonds will be used by the Authority for the purposes of (1)
refunding outstanding obligations of the Authority, (2) setting aside
those funds determined to be necessary for the payment and security of the
Bonds and operating costs, and (3) paying certain expenses in connection
with issuance of the Bonds, all in accordance with Chapter 53B of the
Texas Education Code, as amended, and other applicable laws of the State
of Texas.
               SECTION 3.      That the governing body of the City hereby
approves the issuance and delivery of such Bonds and Refunding Bonds and
the use of the proceeds of such Bonds and Refunding Bonds for the purposes
aforesaid.   The City requests that the Authority exercise the powers
enumerated and provided in Section 53B.47(e), (f) and (g) of the Texas
Education Code, as amended, to issue the Bonds and Refunding Bonds on
behalf of the City.

               SECTION 4:      That it is recognized by this governing body
that the instruments which authorize the issuance of the Bonds and
Refunding Bonds by the Authority will specifically state that this City is
not obligated to pay the principal of or interest on the Bonds or
Refunding Bonds proposed to be issued by the Authority.

               SECTION 5.     Nothing in this resolution shall be
construed as an indication by this City that it will pay or provide for
the payment of any bonds or other obligations of the said Authority
whether heretofore or hereafter incurred, and in this connection,
attention is called to the Constitution of Texas wherein it is provided
that a City may incur no indebtedness without having made provisions for
its payment, and this City Commission hereby specifically refuses to set
aside any present or future funds, assets or money for the payment of any
indebtedness or obligation of the Authority.

               SECTION 6.     That the City does not agree to assume any
responsibility in connection with the administration of the Authority’s
student loan program. Sole responsibility for the administration of the
Authority’s student loan program is being assumed by the Authority.

               SECTION 7.      That the governing body of the City hereby
approves the application of the Authority for a 2008 Private Activity Bond
Allocation Carry forward in an amount not to exceed $250,000,000, and
hereby authorizes the Mayor to execute such application.

               SECTION 8.     That this Resolution shall be effective from
and after its passage and approval.

               SECTION 9.     That it is hereby officially found and
determined that the meeting at which this resolution is passed is open to
the public as required by law and that public notice of the time, place
and purpose of said meeting was given as required.

PASSED AND ADOPTED this 18th day of August 2008.


                                           /Robert D. Josserand
                                           Robert D. Josserand, Mayor
                                           City of Hereford, Texas


ATTEST:



/s/ Suzanne Finch
Suzanne Finch, City Secretary
City of Hereford, Texas
Mayor Josserand invited Terry Langehennig of the Panhandle-Plains Student
Loan Center to give the Commission an update.

Mr. Langehennig noted it has been quite a year. They typically issue in
March, April, May; however, they could not issue because the market was so
tight.   Also, he stated they used to issue auction rate securities;
however, they had their first failed auction February 11th, 2008. He cited
legislation that cut subsidy payments, raised lender fees, and made profit
margins too thin as part of the problem along with fears brought about by
sub-prime mortgage rates.

Mr. Langehennig noted the banks they work with have been very
understanding. He stated the tax-exempt money is like “gold” as it will
allow liquidity, more flexibility in structuring the debt, allow them to
buy loans, and refinance existing loans.

He noted their equity position sustained an approximate loss of 17-
18% and their organization    has weathered the storm due to good
management. He stated the problem they encountered with the auction was
that some of the buyers alleged it was presented to them as being
similar to a money market account, which was not correct.           The
purchasers got a good rate of return on their investment; however, they
could not pull their principal amounts out and it will probably
take this year and part of next year to refund those. They are asking
for approval of this resolution to allow them to go ahead and
work through these issues.

Commissioner Rincon made the motion to accept Resolution No. 08.18.08
approving the issuance of certain obligations by Panhandle-Plains
Higher Education Authority Inc., and making       certain findings in
connection therewith. Commissioner Coneway seconded the motion and it
passed with the unanimous vote of the Commission.

ITEM 4 – Hear follow up report from Allied Waste (B.F.I.).

Cynthia Dove thanked the Commission for allowing her to present a follow-
up on their four key action points.

Steve Cline commented on each of the four areas: (1) Audit and
realignment of    existing   Hereford   routes,  (2)   Commercial   and
residential container audit, with a map of all container locations, (3)
Alley Communication/Resolution Communication Plan, (4) Training drivers
on adherence to Hereford Service Standards.

Mr. Cline noted measurable standards have been put in place along with a
GPS tracking system in order to hold drivers accountable. He stated
drivers are now proactively calling in issues to their           liaison
for resolution. Service failures continue to decrease even during times
when the regular drivers are on vacation; they      are   cross-training
their employees.

Ms. Dove reiterated their commitment to aggressively address the service
issues through the use of extensive audits of routes, personnel, and
training. She asked the Commission to consider their proposal for a rate
increase and fuel adjustment and in return for their consideration she
would make sure things were done at a level the City and its citizens were
happy with and would strive to continue to improve the areas that are not
yet at the 100% mark.

Mayor Josserand noted the Commission had discussed their proposal and
their tentative decision is to partially honor their request; the City
Manager will discuss the tentative plans with them.      However, final
approval will not be given until the budget is approved at the September
15th Regular Commission Meeting.

ITEM 5 – Consider Ordinance No. 08.18.08 adopting the Rate Review
Mechanism Tariff; adopting a savings clause; determining that this
ordinance was passed in accordance with the requirements of the Texas Open
Meetings Act; declaring an effective date; and requiring delivery of this
ordinance to the company (Atmos Energy Corp., West Texas Division) and
legal counsel.

Mayor Josserand called upon City Attorney Elza to read the pertinent parts
of Ordinance No. 08.18.08.

                      ORDINANCE NO. 08.18.08

      AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF HEREFORD,
      TEXAS, ("CITY") ADOPTING THE RATE REVIEW MECHANISM TARIFF;
      ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS
      PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN
      MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING
      DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL.

Commissioner Coneway made the motion to accept Ordinance No. 08.18.08
adopting the Rate Review Mechanism Tariff; adopting a savings clause;
determining that this ordinance was passed in accordance with the
requirements of the Texas Open Meetings Act; declaring an effective date;
and requiring delivery of this ordinance to the company (Atmos Energy
Corp., West Texas Division) and legal counsel.       Commissioner Winget
seconded the motion and it passed with the unanimous vote of the
Commission.

ITEM 6 – Commission approval to authorize signatory authority pertaining
to U.S.D.A. / F.S.A.

Commissioner Coneway made the motion to authorize the City Manager as the
signatory for all documents pertaining to the U.S.D.A. / F.S.A. as they
relate to City land and property. Commissioner Winget seconded the motion
and it passed with the unanimous vote of the Commission.

ITEM 7 – Consider canceling regular City Commission Meeting scheduled for
September 1, 2008.

Commissioner Rincon made the motion to cancel   the  regular City
Commission Meeting scheduled for   September 1, 2008 [Labor Day].
Commissioner Winget seconded the motion and it passed with the
unanimous vote of the Commission.

ITEM 8 – Announcements and comments from Mayor and City Commissioners.

Mayor Josserand stated he could not remember ever receiving ten inches
of rain in such a short period of time. He noted the recent rains
caused problems including some flooding and the City systems are not
designed to handle such an influx of water. He applauded the City
employees for being out at three or four o’clock in the morning working
to solve the problems and to rescue stranded motorists.           Mayor
Josserand stated there is always room for improvement; but the
employees made a valiant effort.
Commissioner Rincon commended the City for raising $1,000.00 for the
Relay for Life.

Commissioner Coneway noted he has been keeping water records for 212 E.
New York since 1976 and never had he seen it rain that much in a
twenty-four to thirty-six hour period.

ITEM 9 – Announcements and comments from City Staff.

There were no announcements or comments from City Staff.

ITEM 10 – Public Comments.

Mayor Josserand welcomed Joe Southern from the Hereford Brand and
stated he is delighted to have the newspaper here tonight to fill the
bill of informing our citizens.

There being no further business before the Commission, the meeting was
adjourned at approximately 8:28 p.m.

                                     APPROVED:



                                     ___________________________
                                     ROBERT D. JOSSERAND, MAYOR
                                     CITY OF HEREFORD, TEXAS

ATTEST:



______________________________
SUZANNE FINCH, CITY SECRETARY

				
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