HomeMy WebLinkAboutORD 1981-026 a.
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ORDINANCE NO. 81-26
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, authorizing the issuance of $1,050,000 "CITY
- OF GRAPEVINE, TEXAS, �tiATER41'ORKS AND SEWER SYSTEM
REVENUE BONDS, SERIES 1981," dated 1�4ay 1, 1981, for the
purpose of improving and extending the City's Waterworks System �
in the amount of $1,050,000, as authorized by the General Laws of
the State of Texas, particularly Article 1111 - 1118, V.A.T.C.S.;
prescribing the form of the bonds and the form of the interest
coupons; pledging the Net Revenues of the City's combined
�tiaterworks and Sewer System to the payment of such bonds and
the interest thereon; providing certain covenants pertaining to the
bonds and the funds from which same are to be paid; enacting .
provisions incident and relating to the subject and purpose of this
Ordinance; and declaring an emergency
�VHEREAS, at an eleetion duly and legally called and held on the 19th day
of January, 1980, the City Council of the City of Grapevine, Texas, was
authorized and empowered to issue its revenue bonds in the amount of $1,465,000
for the purpose of improving and extending the City's Waterworks System, such
bonds being payable from and secured by a pledge of the net revenues of the
City's combined �Vaterworks and Sewer System, and to mature in not more than
forty (40) years from their date; and
titi'HEREAS, out of the bonds authorized for said purposes at said election,
$330,000 have heretofore been issued for the purposes of the City's �Naterworks
System, and the City Council has determined it to be necessary and appropriate
� to issue bonds authorized at said election in the principal am�unt of $1,050,000
for the purposes of the City's �Naterworks System; and
WHEREAS, the City has heretofore issued its City of Grapevine, Texas,
Waterworks and Sewer System Refunding and Improvement Bonds, Series 1980, in
the aggregate prineipal amount of $3,100,000, presently outstanding in the
aggregate principal amount of $3,100,000 (the "Outstanding Bonds"), which bonds
are secured by and payable from a pledge of and lien upon the net revenues of
the City's combined Waterworks and Sewer System; and
WHEREAS, the City Council, by this ordinance, has determined it to be
necessary and appropriate to issue $1,050,000 aggregate principal amount of
revenue bonds (hereinafter the "Series 1981 Bonds"), for the purpose of improving
and extending the City's Waterworks System at the present time pursuant to the
authorization granted the City at the aforesaid election, such bonds to be payable
from and equally secured by a lien on and pledge of the Net Revenues of the
City's combined Waterworks and Sewer System;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. Authorization, Principal Amount, Designation. That in
� order to borrow the sum o ONE MILLION FIFTY THOUSAND DOLLARS
� (�1,050,000) for the purpose of improving and extending the City's Waterworks
System, the City Council of the City, by virtue of the authority expressly
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' conferred at an election held within the City on January 19, 1980, and pursuant
�� to the General Laws of the State of Texas, particularly Article 1111 - 1118,
' V.A.T.C.S., has determined that there shall be issued and there is hereby ordered
to be issued a series of coupon bonds in the total principal sum of ONE MILLION
FIFTY THOUSAND DOLLARS ($1,050,000), to be designated "CITY OF GRAPE-
VINE, TE�iAS, �1'ATER�VORKS AND SEjtiTER SYSTE141 REVENUE BONDS, SERIES
1981," said series of bonds, together with the previously issued Outstanding Bonds,
to be payable as to both principal and interest solely from and secured by a first .
and senior lien on and pledge of the Net Revenues of the City's combined
�Naterworks and Sewer System.
Section 2. Date, Number, 14Taturity, Option. That the Series 1981 Bonds
shall be dated l�7ay 1, 1981; shall be numbered consecutively from One (1) through
Two Hundred Ten (210); shall each be in the denomination of Five Thousand
Dollars (�5,000}; and shall become due and payable serially on June 1 in each year
in accordance with the following schedule:
BONDS YEARS AMOUNTS
1 - 5 1982 $ 25,000
6 - 10 1983 25,000
11 - 15 1984 25,000
16. - 25 1985 50,000
26 - 35 1986 50,000
36 - 45 1987 50,000
46 - 60 1988 75,000
61 - 75 1989 75,000
76 - 95 1990 100,000
96 - 115 1991 100,000
116 - 135 1992 100,000
136 - 160 1993 125,000
161 - 185 1994 125,000
186 - 210 1995 125,000
PROVIDED, HOWEVER, the City reserves the right, at its option, to redeem
Series 1981 Bonds maturing June 1, 1993, through June 1, 1995, both inclusive, in
whole or any part thereof, on June 1, 1992, or on any interest payment date
thereafter, at the price of par and accrued interest to the date fixed for
redemption; and PROVIDED, FURTHER, at least thirty (30) days prior to any
interest payment date upon which any of the Series 1981 Bonds are to be
redeemed, notice of redemption signed by the City Secretary, specifying the
serial numbers and amount of the Series 1981 Bonds to be redeemed, shall be filed
with the Paying Agent (named in each of the Series 1981 Bonds) and shall be
published at least once in each of two financial publications, one of which shall
be published in the City of New York, New York, and the other in the State of
Texas; and should any Series 1981 Bond or Series 1981 Bonds not be presented for
redemption pursuant to such notice the same shall cease to bear interest from and
after the date so fixed for redemption.
I Section 3. Interest. That the Series 1981 Bonds shall bear interest from
their date to maturity at the following rates per annum:
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�,,�,,. . _ . _
Bonds maturing in the years 1982 through 1984 9.75°0
.�-� Bonds maturing in the years 1985 through 1995 10.00°'0
such interest. to be evidenced by proper coupons attached to each of the Series
1981 Bonds, payable on December 1, 1981, and semiannually thereafter on June
1 and December 1 in each year.
Section 4. Place of Payment. That both the principal of and interest on
the Series 1981 Bonds shall be payable in lawful money of the United States of
America, without exchange or collection charges to the owner or holders, at the
First National Bank in Dallas, Dallas, Texas, upon presentation and surrender of
said bonds or proper coupons.
Section 5. Execution of Series 1981 Bonds and Coupons. That the seal
of the City may be impressed on each of the Series 1981 Bonds or, in the
alternative, a facsimile of such seal may be printed thereon. The Series 1981
Bonds and interest coupons appurtenant thereto shall be executed by the
imprinted or lithographed facsimile signatures of the Mayor and City Secretary
for the City and execution in such manner shall have the same effect as if the
Series 1981 Bonds and coupons had been signed by the Mayor and City Secretary
manually. Inasmuch as the Series 1981 Bonds are required to be registered by the
Comptroller of Public Accounts for the State of Texas, only his signature (or that
of a deputy designated in writing to act for the Comptroller) shall be required to
be manually subscribed to the Series 1981 Bonds in connection with the
registration certificate to appear thereon, as hereinafter provided, all in
accordance with the provisions of Article 717j-1, V.A.T.C.S.
Section 6. Form of Series 1981 Bonds, Certificates and Coupons. That
the form of the Series 1981 Bonds issued in coupon orm, including the form of
Registration Certificate of the Comptroller of Public Accounts of the State of
Texas to be printed and endorsed thereon, and the form of interest coupons to be
initially attached thereto, shall be, respectively, substantially as follows:
(FORM OF SERIES 1981 BOND)
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF GRAPEVINE, TEXAS
WATERWORKS AND SEWER SYSTEM REVENUE BOND
SERIES 1981
On June 1, , the City of Grapevine in the County of Tarrant, State
of Texas, promises to pay to bearer, solely from the revenues and funds described
herein, the principal amount of
FNE THOUSAND DOLLARS
(�5,000), and to pay interest thereon, from the date heteof to the maturity or
earlier redemption qf this bond, at the rate of °o per annum, evidenced
-- by initially attached interest coupons payable on December 1, 1981, and
semiannually thereafter on each June 1 and December 1. The principal of this
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bond and the interest coupons attached hereto shall be payable to bearer in lawful
--ti money of the United States of America, without exchange or collection charges
to the bearer, upon presentation and surrender of this bond or proper interest
coupon, at the First National Bank in Dallas, Dallas, Texas, which place shall be
the paying agent for this series of bonds.
This bond is one of a series of coupon bonds dated 1�1ay 1, 1981, each in
the denomination of Five Thousand Dollars ($5,000) and of like tenor and effect,
except as to number, interest rate, right of prior redemption and maturity, issued
in the aggregate principal amount of $1,050,000 for the purpose of improving and
extending the City's Waterworks System.
The bonds of this series stated to mature on and after June 1, 1993, may
be redeemed prior to their scheduled maturities in whole or any part thereof at
the option of said City on June 1, 1992, or on any interest payment date
thereafter, for the principal amount thereof, plus accrued interest to the date
fixed for redemption. At least thirty (30) days prior to the date fixed for any
such redemption, the City shall cause written notice of such redemption to be
given to the paying agent hereof and to be published at least once in each of two
financial publications, one of which is published in the City of New York, New
York, and the other in the State of Texas. By the date fixed for any such
redemption, due provision shall be made with the paying agent for the payment
of the principal amount of the bonds to be redeemed plus accrued interest thereon
to the date fixed for redemption. If the written notice of redemption is given
and published, and if due provision for such payment is made, all as provided
above, the Bonds, which are to be so redeemed, thereby automatically shall be
redeemed prior to maturity, and they stiall not bear interest after the date fixed
for redemption, and shall not be regarded as being outstanding except for the
purpose of receiving the funds so provided for such payment.
It is hereby certified and recited that the issuance of this bond and of the
series of which it is a part is duly authorized by law; that all acts, conditions and
things required to exist precedent to and in the issuance of this bond to render
the same lawful and valid have been properly done, have happened and been
performed in regular and due time, form and manner as required by the
Constitution and laws of the State of Texas, and the ordinance authorizing this
series of bonds, and that this series of revenue bonds does not exceed any
constitutional or statutory limitations, and that the interest on and principal of
this bond, and the series of which it is a part, together with other waterworks
and sewer system revenue bonds of said City which may be hereafter issued on
a parity with the bonds of this series, are secured by and payable solely from a
first lien on and pledge of the net revenues of said City's combined waterworks
and sewer system.
Said City has reserved the right, subject to the restrictions stated, or
adopted by reference, in the ordinance authorizing this series of bonds, to issue
additional parity revenue bonds which also may be secured by and made payable
from a first lien on and pledge of the net revenues of said City's combined
waterworks and sewer system. '
I The holder hereof shall never have the right to demand payment of this
bond out of any funds raised or to be raised by taxation.
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In witness whereof, this bond and the interest coupons initially attached
� �� hereto have been signed by the imprinted or lithographed facsimile signature of
� the 14layor of said City and countersigned by the imprinted or lithographed
facsimile signature of its City Secretary, and the official seal of said City has
been duly impressed or printed or lithographed on this bond.
City Secretary, City of Grapevine, l��ayor, City of Grapevine,
Texas Texas
[SEAL]
(FOR1�1 OF REGISTRATION CERTIFICATE) .
COMPTROLLER'S REGISTRATION CERTIFICATE: Register No.
I hereby certify that this bond has been examined, certified as to validity,
and approved by the Attorney General of the State of Texas, and that this bond
has been registered by the Comptroller of Publie Accounts of the State of Texas.
Witness my signature and seal this
Comptroller of Public Accounts o
the State of Texas
(FORM OF INTEREST COUPON)
N0. �
ON 1,
The City of Grapevine in the County of Tarrant, State of Texas, unless due
provision has been made for the redemption prior to maturity of the bond to
which this interest coupon appertains, promises to pay to bearer the amount
shown on this interest coupon, in lawful money of the United States of America,
without exchange or collection charges to the bearer, upon presentation and
surrender of this interest coupon, at the First National Bank in Dallas, Dallas,
' Texas, said amount being interest due that day on the bond, bearing the number
hereinafter designated, of that issue of City of Grapevine, Texas, Waterworks and
Sewer System Revenue Bonds, Series 1981, dated 1�Zay 1, 1981. The holder hereof
shall never have the right to demand payment of this obligation out of any funds
raised or to be raised by taxation. Bond No. �
City Secretary Mayor
I
Section 7. (a) That the term "Outstanding Bonds", as used herein, shall
mean the outstanding bonds of the following issue of said City: City of
Grapevine, Texas, Waterworks and Sewer System Refunding and Improvement
Bonds, Series 1980, authorized by an ordinance passed May 8, 1980.
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(b} That the bonds authorized hereby are parity "Additional Bonds" as
�� defined in the ordinance passed on May 8, 1980, authorizing the issuance, sale and
delivery of the above referenced City of Grapevine, Texas, Waterworks and Sewer
System Refunding and Improvement Bonds, Series 1980.
(c) That sections 8 through 16, sections 18 through 27 and section 34 of
the aforesaid Ordinance passed on Nlay 8, 1980, are adopted by reference and
shall be applicable to the bonds authorized to be issued by this ordinance for all
purposes, except to the extent hereinafter specifically modified and supple-
mented. The bonds authorized to be issued by this ordinance and the Outstanding
Bonds are and shall be secured by and payable from a first and superior lien on
and pledge of, the Net Revenues of said City's combined waterworks and sewer
system and shall be on a parity and of equal dignity as to lien and right.
Section 8. That, in addition to all other amounts required by the
ordinance authorizing the Outstanding Bonds, there shall be deposited into the
Interest and Sinking Fund, created for the benefit of said Outstanding Bonds and
all Additional Bonds, the following:
(a) such amounts, in equal monthly installments, commencing June 1,
1981, and on the lst of each month thereafter, as will be sufficient to pay the
interest scheduled to come due on the Series 1981 Bonds on the next interest
payment date, less any amounts already on deposit therein for such purpose
derived from the proceeds of the Series 1981 Bonds or from any other lawfully
available source; and
(b) such amounts, in equal monthly installments, commencing June 1,
1981, and on the lst day of each month thereafter, as will be sufficient to pay
the next maturing principal of the Series 1981 Bonds.
Section 9. Reserve Fund. So long as the funds on deposit in the Reserve
Fund created for the benefit of said Outstanding Bonds and all Additional Bonds,
are equal to the Reserve Fund Requirement, no deposits need be made to the
credit of the Reserve Fund; but should the Reserve Fund at any time contain less
than the Reserve Fund Requirement, then, subject and subordinate to making the
required deposits to the credit of the Interest and Sinking Fund, the City shall
transfer from the Net Revenues in the Revenue Fund and deposit to the credit
of the Reserve Fund, on the first day of each month, a sum equal to not less than
1/60th of the total amount then required to be maintained therein until the
Reserve Fund is restored to the Reserve Fund Requirement. The money on
deposit in the Reserve Fund may be used to pay the principal of and interest on
the Bonds at any time there are not sufficient funds on deposit in the Interest
and Sinking Fund for such purpose. The City may, at its option, withdraw all
surplus in the Reserve Fund over the Reserve Fund Requirement and deposit the
same in the Revenue Fund.
Section 10. That the Series 1981 Bonds are and shall be special obligations
of said City, and the holder or holders thereof shall never have the right to
demand payment of said obligations out of any funds raised or to be raised by
taxation.
- Section 11. That the I�'Iayor of said City is hereby authorized to have
control of the Series 1981 Bonds and all necessary records and proceedings
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1 pertaining to the Series 1981 Bonds pending their delivery and their investigation,
` examination and a roval b the Attorne General of the State of Texas, and
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their registration by the Comptroller of Public Accounts of the State of Texas.
Upon registration of the Series 1981 Bonds, said Comptroller of Public Accounts
(or a deputy designated in writing to act for said Comptroller) shall manually sign
the Comptroller's Registration Certificate printed and endorsed on each of the
Series 1981 Bonds, and the seal of said Comptroller shall be impressed or printed
or lithographed on each of the Series 1981 Bonds.
Section 12. That all of the Series 1981 Bonds, being numbered one (1)
through Two Hundred Ten (210), both inclusive, are hereby sold in accordance
with law and shall be delivered to Rauscher Pierce Refsnes, Inc. and Associates,
for the principal amount thereof plus accrued interest to the date of delivery,
plus a premium of $145.00. �
Section 13. That the purchaser's obligation to accept delivery of the
Series 1981 Bonds herein authorized is subject to their being furnished the final
opinion of Messrs. Hutchison Price Boyle & Brooks, Attorneys at Law, Dallas,
Texas, such opinion approving such bonds as to their validity, said opinion to be
dated and delivered as of the date of delivery and payment for the Series 1981
Bonds. Printing of a true and correct copy of the opinion of Hutchison Price
Boyle & Brooks on the reverse side of each such bond, with appropriate
certificate pertaining thereto executed by facsimile signature of the City
Secretary of the City is hereby approved and authorized.
Section 14. That the City certifies that based on facts, estimates and
circumstances known or reasonably expected to exist on the date of the issue of
the Series 1981 Bonds, it is not reasonable to anticipate that the proceeds thereof
will be used in a manner which would cause them to be "arbit�•age bonds" within
the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended,
or regulations thereunder applicable thereto, and the officers charged with such
responsibilities in the issuance of the Series 1981 Bonds are authorized anc3
directed to make, execute and deliver certifications as to facts, estimates and
circumstances in existence as of the date of the issue of the Series 1981 Bonds
and stating whether there are any facts, estimates or circumstances which would
materially change the City's present expectations. Additionally, the City
covenants that so long as the bonds are outstanding it will diligently comply with
the requirements of Seetion 103(c) of the Internal Revenue Code of 1954, as
amended, or regulations thereunder applicable thereto, so that the Series 1981
Bonds will not at any time become arbitrage bonds.
Section 15. Approval of Official Statement. That the form and substance
of the Official Statement, dated March 16, 1981, and any addenda, supplement or
amendment thereto presented to and considered at this meeting, is hereby in all
respects approved and adopted by the City Council, and the Mayor and the City
Secretary are hereby authorized and directed to execute the same and deliver
appropriate numbers of executed copies thereof to the purchasers of the Series
1981 Bonds. Said Official Statement as thus approved, executed and delivered,
with such appropriate variations as shall be approved by the City Manager and the
purchasers of the Series 1981 Bonds, may be used by said purchasers in the public
offering and sale thereof. The City Secretary is hereby authorized and directed
; to include and maintain a copy of the Official Statement and any addenda,
' supplement or amendment thereto thus approved among the permanent records of
this meeting.
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Section 16. Emergency. That the public importance of this measure and
the fact that it is to the best interest of the City to provide funds for the purpose
� of constructing improvements and extensions to the City's Waterworks System at
the earliest possible date, for the immediate preservation of the public peace,
� property, health and safety of the City and its citizens, creates an emergency and
� an imperative necessity that the rule requiring ordinances to be read at two
meetings of the City Council, be suspended, and said rule is hereby suspended, and
this ordinance shall take effect and be in force from and after its passage and
approval.
FINALLY PASSED, APPROVED AND EFFECTIVE, this 21st day af April,
1981.
� ...
Mayor, Ci y of Grapevine, Texas
ATTEST:
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City Se retar , City of Grapevin , exas
APPROVED:
(SEAL] �
City Attorney, City rape ' , Texas
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