ORDER N0.28970
NOTICE OF INTENTION TO ISSUE CERTIFICATES
OF OBLIGATION
Came to be heard this the 28th day of December 2004 with a motion made by
Commissioner Letz seconded by Commissioner Williams. The Court approved by a vote
of 3-1-0 the adoption of Order Authorizing Publication of Notice of intention to Issue
Certificates of Obligation.
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ORDER N0. 28970
CERTIFICATE FOR ORDER
STATE OF TEXAS
COUNTY OF KERR

I, the undersigned County Clerk of KEx12 COUNTY, TEXAS, hereby certify as follows:
1. The Commissioners Court of said County convened in REGULAR TERM ON THE 28TH
DAY OF DECEMBER 2004, at the County Courthouse, and the roll was called of the duly
constituted officers and members of said Commissioners Court, to wit:
Pat Tinley, County Judge
H.A. "Buster" Baldwin, Commissioner, Precinct 1
William Williams, Commissioner, Precinct 2
Jonathan Letz, Commissioner, Precinct 3
Dave Nicholson, Commissioner, Precinct 4
and all of said officers and members of said Commissioners Court were present, except the following
absentees: None Whereupon, among other
business, the following was transacted at said Meeting: a written Order entitled:
ORDER AUTHORIZING PUBLICATION OF NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
was duly introduced for the consideration of said Commissioners Court. It was then duly moved and
seconded that the Order be adopted; and, after due discussion, said motion carrying with it the
adoption of the Order, prevailed and carried by the following vote:
AYES:3 NOES: 1 ABSTENTIONS: 0
2. A true, full and correct copy of the aforesaid Order adopted at the Meeting described in
the above and foregoing paragraph is attached to and follows this Certificate; said Order has been
duly recorded in said Commissioners Court's minutes of said Meeting; the above and foregoing
paragraph is a true, full and correct excerpt from said Commissioners Court's minutes of said Meeting
pertaining to the passage of the Order; the persons named in the above and foregoing paragraph are
the duly chosen, qualified and acting officers and members of said Commissioners Court as indicated
therein; each of the officers and members of said Commissioners Court was duly and sufficiently
notified officially and personally, in advance, of the time, place and purpose of the aforesaid Meeting,
and that the Order would be introduced and considered for passage at said Meeting, and each of said
officers and members consented, in advance, to the holding of said Meeting for such purpose, and
that said Meeting was open to the public and public notice of the time, place and purpose of said
meeting was given, all as required by Chapter 551, Texas Government Code.
SI~iNED 1~N~ SEALED the 8th day of February, 2005.
(SEAL)' ,' ~ ~ ~ ~L-
Co ty Clerk
• ~ ~ - ~ Ken County, Texas
,- - .'•
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ORDER AUTHORIZING PUBLICATION OF NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
STATE OF TEXAS §
COUNTY OF KERR §
WHEREAS, in December 2002, the HILL COUNTRY JWENILE FACILITY CORPORATION,
a nonprofit public facility corporation (the "Corporation") created by KERB CouNTY, TEXAS (the
"County") pursuant to the provisions of Chapter 303, Texas Local Government Code, issued and
delivered $5,140,000 in principal amount of Hill Country Juvenile Facility Corporation Lease
Revenue Bonds, Series 2002 (Kerr County, Texas Juvenile Detention Facilities Project) (the "Lease
Revenue Bonds"); and
WHEREAS, proceeds of the Lease Revenue Bonds were used to refinance an existing
juvenile detention facility located in the County and to construct a new facility to house additional
juveniles (collectively, the "Juvenile Facility"); and
WHEREAS, the Juvenile Facility is owned by the Corporation but is operated by the Kerr
County Juvenile Board (the "Juvenile Board"} in accordance with the provisions of state law; and
WHEREAS, the Juvenile Facility is leased to the County pursuant to a Lease Agreement
between the Corporation and the County that was entered into in connection with the issuance of the
Lease Revenue Bonds; however, most obligations of the County under the Lease Agreement,
including the obligation to make Lease Payments (subject to annual appropriation), were assumed
by the Juvenile Board pursuant to an Operating Agreement between the County and the Juvenile
Board; and
WHEREAS, due to a series of events that occurred subsequent to the issuance of the Lease
Revenue Bonds, which had a substantial negative effect on the revenues of the Juvenile Facility, in
August 2004, the Juvenile Board exercised its right under the Operating Agreement to
nonappropriate for the payment of Lease Payments due on the Lease Revenue Bonds for the fiscal
year beginning on October 1, 2004; and
WHEREAS, in September 2004, the Commissioners Court similarly exercised the County's
right under the Lease Agreement to nonappropriate for the payment of Lease Payments due on the
Lease Revenue Bonds for the fiscal year beginning on October 1, 2004; and
WHEREAS, as a result ofthe Juvenile Board and the County exercising their respective rights
to nonappropriate, the holders of the Lease Revenue Bonds (the "Bondholders") entered into
numerous discussions and negotiations with the Commissioners Court, The Bank ofNew York Trust
Company, N.A., as the Trustee for the Lease Revenue Bonds, and representatives of the County and
the Trustee regarding various issues related to mitigating the loss the Bondholders would experience
due to such nonappropriation; and
WHEREAS, on December 8, 2004, the Commissioners Court of the County approved an
agreement in principal with representatives of the Bondholders to provide $1,900,000 to purchase
the Juvenile Facility from the Corporation, which amount would be used in its entirety by the
Corporation to pay principal of the outstanding Lease Revenue Bonds, in exchange for the
Bondholders providing a full, written release of the County, the Corporation, the Juvenile Board and
all officials and employees of the County from all claims the Bondholders may have against such
entities and persons in connection with the issuance of the Lease Revenue Bonds or the operation of
the Juvenile Facility; and
WHEREAS, the Commissioners Court hereby determines that it is necessary and desirable
to purchase the Juvenile Facility from the Corporation; and
WHEREAS, following such acquisition, the Juvenile Facility will be owned by the County
and will be operated in accordance with the requirements of state law; and
WHEREAS, the Commissioners Court of the County intends to finance the acquisition of the
Juvenile Facility from proceeds derived from the sale of one or more series of Certificates of
Obligation issued by the County pursuant to Sections 271.041 - 271.063, Texas Local Government
Code, as amended; and
WHEREAS, pursuant to Section 271.049, Texas Local Government Code, the
Commissioners Court deems it advisable to give notice of intention to issue certificates of obligation
in an amount not to exceed an aggregate of $2, 000, 000 for the purpose of paying, in whole or in part,
for the acquisition of the Juvenile Facility, and to pay all or a portion of the legal, fiscal and
professional fees in connection with such acquisition and the costs of issuance of such Certificates
of Obligation; and
WHEREAS, it is hereby officially found and determined that the meeting at which this Order
was passed was open to the public, and public notice of the time, place and purpose of said meeting
was given, all as required by Chapter 551, Texas Government Code.
THEREFORE, BE IT ORDERED BY THE COHMISSIONERS COURT OF KERR
COUNTY, TEXAS:
SECTION 1. APPROVAL OF NOTICE OF INTENTION. Attached hereto as Exhibit A and
incorporated herein by reference is a form of the "Notice of Intention to Issue Certificates of
Obligation", the form and substance of which is hereby adopted and approved.
SECTION 2. AUTHORIZATION TO PUBLISHNOTICE OFINTENTION. The County Clerk shall
cause said notice to be published in substantially the form attached hereto in a newspaper of general
circulation in said County, on the same day in each of two consecutive weeks, the date of the first
publication thereof to be before the 14th day before the date tentatively set for the passage of the
order authorizing the issuance of such Certificates of Obligation as shown in said notice. The County
Clerk is authorized to make changes to said Notice as necessary prior to its publication.
SECTION 3. INCORPORATION OF RECITALS. The Commissioners Court hereby finds that
the statements set forth in the recitals of this Order are true and correct, and the Commissioners
Court hereby incorporates such recitals as a part of this Order.
SECTION 4. EFFECTIVE DATE. This Order shall become effective immediately upon passage.
[The remainder of this page intentionally left blank)
PASSED AND APPROVED BYTHE COMMISSIONERS COURT OFKERR COUNTY,
TEXAS ON THE 28'N DA Y OF DECEMBER, 2004.
y udge
Kerr County, Texas
ATTEST:
~. f ,~-
Co my Clerk
Kerr County, Texas
(SEAL)
[SIGNATURE PAGE TO NOTICE OF INTENTION ORDER]
Notice as published in the Kerrville Daily Times on January 6, 2005
KERB COUNTY, TEXAS
NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
The Commissioners Court of Kerr County, Texas (the "County") does hereby give notice of
intention to issue one or more series of Kerr County, Texas Certificates of Obligation in the
maximum aggregate principal amount not to exceed $2, ODD, DOD for the purpose of paying, in whole
or in part, contractual obligations to acquire from the Hill Country Juvenile Facility Corporation, a
Texas nonprofit public facility corporation (the "Corporation"),the existing juvenile detention facility
located in the County (the "Juvenile Facility"), for a purchase price of $1,900,000 (the "Project").
All funds received from the County to acquire the Juvenile Facility will be used by the Corporation
to pay $1,900,000 to the holders of the Corporation's outstanding Lease Revenue Bonds, Series 2002
(Kerr County, Texas Juvenile Detention Facilities Project) (the "Lease Revenue Bonds"), in exchange
for a full, written release by such holders of the County, the Corporation, the Kerr County Juvenile
Board and their officials and employees from all claims such holders may have against such entities
and persons in connection with the issuance of the Lease Revenue Bonds or the operation of the
Juvenile Facility. The County proposes to provide for the payment of such Certificates of Obligation
from the levy and collection of ad valorem taxes in the County within the limits provided by law. The
Commissioners Court proposes to authorize the issuance of such Certificates of Obligation at 11:00
a.m. on Monday, January 24, 2005, which is a regularly scheduled meeting of the Commissioners
Court, at the Union Church Building located on the Shreiner University Campus at the intersection
of Travis and Broadway, Kerrville, Texas.
/s/Pat Tinley
County Judge, Kerr County, Texas
Revised Notice as published in the Kerrville Daily Times in its issues of January 13 and 20, 2005.
KERR COUNTY, TEXAS
CORRECTED NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
The Commissioners Court of Kerr County, Texas (the "County") does hereby give notice of
intention to issue one or more series of Kerr County, Texas Certificates of Obligation in the
maximum aggregate principal amount not to exceed $2, 000, D00 for the purpose of paying, in whole
or in part, contractual obligations to acquire from the Hill Country Juvenile Facility Corporation, a
Texas nonprofit public facility corporation (the "Corporation"), the existing juvenile detention facility
located in the County (the "Juvenile Facility"), for a purchase price of $1,900,000 (the "Project").
All funds received from the County to acquire the Juvenile Facility will be used by the Corporation
to pay $1,900,000 to the holders of the Corporation's outstanding Lease Revenue Bonds, Series 2002
(Kerr County, Texas Juvenile Detention Facilities Project) (the "Lease Revenue Bonds"), in exchange
for a full, written release by such holders of the County, the Corporation, the Kerr County Juvenile
Board and their officials and employees from all claims such holders may have against such entities
and persons in connection with the issuance of the Lease Revenue Bonds or the operation of the
Juvenile Facility. The County proposes to provide for the payment of such Certificates of Obligation
from the levy and collection of ad valorem taxes in the County within the limits provided by law. The
Commissioners Court proposes to authorize the issuance of such Certificates of Obligation at 1:00
p.m. on Wednesday, January 26, 2005, at the Commissioners Courtroom in the Kerr County
Courthouse, 700 Main Street, Kerrville, Texas.
This corrected Notice is substantially identical to the initial notice published on January 6,
2005, regarding the issuance of the Certificates of Obligation described above. Only the location and
time of the meeting during which the Commissioners Court will meet to consider authorizing the
issuance of such Certificates of Obligation (as described in the final sentence of the preceding
paragraph) have been revised by this corrected Notice.
/s/ Pat Tinley
County Judge, Kerr County, Texas