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Home My WebLink AboutORD 1988-073 1 ,��.,� �,..:,,; BOND ORDINANCE ORDINANCE NO. 88-73 $6, 700 , 000 . CITY OF GRAPEVINE, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1988 �. � Dated: October 1, 1988 Adopted: September 20, 1988 �„. .:p �� - � , TABLE OF CONTENTS Page i �� ' Recitals 1 I ARTICLE I � DEFINITIONS, FINDINGS AND INTERPRETATION � I Section 1 . 01 . Definitions 2 I� Section 1 . 02 . Findings 5 I Section 1 . 03 . Table of Contents, Titles and Headings 5 Section 1 . 04 . Interpretation 5 i ARTICLE II SECURITY FOR THE BONDS Section 2 . 01 . Pledge of Security 5 Section 2 . 02 . Rates and Charges 6 Section 2 . 03 . Bonds as Special Obligations 6 ARTICLE III AUTHORIZATION; GENERAL TERMS AND � PROVISIONS REGARDING THE BONDS I Section 3 . 01 . Authorization 6 I , Section 3 . 02 . Date, Denomination, Maturities ' and Interest 6 Section 3 . 03 . Medium, Method and Place of Payment 7 �� I Section 3 . 04 . Execution and Registration 'I of Series 1988 Bonds 8 w �t ' Section 3 . 05 . Ownership 9 Section 3 . 06 . Registration, Transfer and Exchange 10 Section 3 . 07 . Cancellation 11 Section 3 . 08 . Temporary Bonds 11 Section 3 . 09 . Replacement Bonds 12 ARTICLE IV REDEMPTION OF BONDS BEFORE MATURITY � Section 4 . 01 . Limitation on Redemption 13 Section 4 . 02 . Optional Redemption 13 Section 4 . 03 . Partial Redemption 14 Section 4 . 04 . Notice of Redemption to Owners 14 Section 4 . 05 . Payment Upon Redemption 15 Section 4 . 06 . Effect of Redemption 15 ARTICLE V PAYING AGENT/REGISTRAR Section 5 . 01 . Appointment of Initial Paying Agent/Registrar 15 Section 5 . 02 . Qualifications 16 �`'� ��i� a, �_ Section 5 . 03 . Maintaining Paying Agent/Registrar 16 Section 5 . 04 . Termination 16 Section 5 . 05 . Notice of Change to Owners 16 Section 5 . 06 . Agreement to Perform Duties and Functions 16 � Section 5 . 07 . Delivery of Records to Successor 16 ARTICLE VI « � FORM OF THE BONDS Section 6 . 01 . Form Generally 17 Section 6 . 02 . Form of the Series 1988 Bonds 17 Section 6 . 03 . CUSIP Registration 24 Section 6 . 04 . Legal Opinion 24 Section 6 . 05 . Statement of Insurance 24 ARTICLE VII FUNDS AND ACCOUNTS Section 7 . 01 . Special Funds 24 Section 7 . 02 . Revenue Fund 25 Section 7 . 03 . Interest and Sinking Fund 25 Section 7 . 04 . Reserve Fund 25 Section 7 . 05 . Deficiencies in Funds 26 Section 7 . 06 . Excess Revenues 26 Section 7 . 07 . Security of Funds 26 Section 7 . 08 . Investment of Funds 26 ARTICLE VIII , SALE AND DELIVERY OF SERIES 1988 BONDS; DEPOSIT OF PROCEEDS � -� Section 8 . 01 . Sale of Series 1988 Bonds; Official Statement 27 Section 8 . 02 . Control and Delivery of Series 1988 Bonds 28 Section 8 . 03 . Deposit of Proceeds 28 ARTICLE IX PARTICULAR REPRESENTATIONS AND COVENANTS Section 9 . 01 . Payment of Bonds 28 Section 9 . 02 . Additional Parity Bonds 29 Section 9 . 03 . Maintenance and Operation; Insurance 30 Section 9 . 04 . Records; Accounts; Accounting Reports 30 Section 9 . 05 . Discharge 31 Section 9 . 06 . Bonds as Negotiable Instruments 32 Section 9 . 07 . No-Arbitrage; Rebate 32 �. ��. (ii) �� a ,; Section 9 . 08 . Further Covenants 33 Section 9 . 09 . Amendments 34 ARTICLE X DEFAULTS AND REMEDIES �,,,� Section 10 . 01 . Remedies in Event of Default 35 ART I CLE X I " `� Section 11 . 01 . Emergency 36 EXECUTION 36 w�.� . .�� ' �� ( iii) ,� ,, ORDINANCE N0. 88-73 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF CITY OF GRAPEVINE, TEXAS, WATERWORKS AND � � SEWER SYSTEM REVENUE BONDS, SERIES 1988, IN THE AGGREGATE PRINCIPAL AMOUNT OF $6, 700, 000; AND ENACTING OTHER PROVISIONS �..,.�, RELATING THERETO _ WHEREAS, under the provisions of Article 1111 , et seq. , Vernon' s Annotated Texas Civil Statutes, as amended, the City of Grapevine, Texas (the "City" ) , is authorized to issue bonds for the purposes specified in this Ordinance; and WHEREAS, the City is authorized to provide that such bonds will be payable from and secured by a first lien on and pledge of the net revenues the City' s combined waterworks and sewer system (the "System" ) ; and WHEREAS, the City Council has found and determined that it is necessary and in the best interests of the City and its citizens that it issue such bonds authorized by this Ordinance, and that the proceeds of .such bonds are to be used solely for the purposes specified in this ordinance, which the City Council hereby determines to be necessary and economically feasible; and WHEREAS, pursuant to an ordinance heretofore passed by � this governing body, notice of intention to issue bonds of the � City payable as provided in this Ordinance was published in a newspaper of general circulation in the City on July 20 , 1988 and July 27, 1988 (the date of the first publication being at �`"`�� least 14 days prior to the date set for passage of this Ordinance) , such bonds to be in an amount not to exceed $6, 700, 000 for the purpose of improving and extending the System; and WHEREAS, no petition of any kind has been filed with the City Secretary, any member of the City Council or any other official of the City, protesting the issuance of such bonds; and WHEREAS, this City Council is now authorized and empowered to proceed with the issuance of said bonds; and WHEREAS, the meeting at which this Ordinance is considered is open to the public as required by law, and the public notice of the time, place and purpose of said meeting was given as required by Article 6252-17, Vernon' s Annotated Texas Civil Statutes, as amended. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS : �,;.,.:,, �� ARTICLE I DEFINITIONS, FINDINGS AND INTERPRETATION Section 1 . 01 . Definitions . �-� Unless otherwise expressly provided or unless the context clearly requires otherwise, in this Ordinance, the following terms shall have the meanings specified below: � - "Additional Bonds" means the additional revenue bonds authorized to be issued on a parity with the Series 1988 Bonds and the Previously Issued Bonds in accordance with the terms and conditions prescribed in Section 9 . 02 of this Ordinance. _ "Bond" or "Bonds" means the Previously Issued Bonds, the Series 1988 Bonds and any Additional Bonds at any time outstanding. "Bond Date" means the date designated as the date of the Series 1988 Bonds by Section 3 . 02(a) of this Ordinance. "Closing Date" means the date of the initial delivery of and payment for the Series 1988 Bonds . "Code" means the Internal Revenue Code of 1986, as amended, including applicable regulations, published rulings and court decisions . "Government Obligations" means direct obligations of the ,�,� United States of America, the principal of and interest on which are unconditionally guaranteed by the United States of America, and which may be in book-entry form. �� "Initial Bond" means the initial Series 1988 Bond authorized by Section 3 . 04(d) of this Ordinance. "Interest and Sinking Fund" means the "City of Grapevine, Texas, Waterworks and Sewer System Revenue Bonds Interest and Sinking Fund, " described in Article VII of this Ordinance. "Interest Payment Date" means the date or dates upon which interest on the Series 1988 Bonds is scheduled to be paid until their respective dates of maturity or prior redemption, such dates being March 1 and September 1 of each year, commencing March 1, 1989 . � "Net Revenues" means all income, revenues, and receipts of every nature derived from and received by virtue of the operation of the System ( including interest income and earnings received from the investment of moneys in the special funds created or confirmed by this Ordinance or ordinances ,�..� 0 8 8 0 D I -2- authorizing the issuance of Additional Bonds) after deducting, paying, and making provision for the payment of current expenses of maintenance and operation thereof, including all salaries , labor, materials, repairs and extensions necessary to �" " render efficient service; provided, however, that only such expenses for repairs and extensions as in the judgment of the City Council , reasonably and fairly exercised, are necessary to #. � keep the System in operation and to render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair any obligations payable from the Net Revenues of the System, shall be deducted in determining "Net Revenues . " Contractual payments for the purchase of water or the treatment of sewage shall be a maintenance and operating expense of the System to the extent provided in the contract therefor and as may be authorized by law. Depreciation shall never be considered as an expense of operation and maintenance. "Ordinance" means this ordinance under which the Series 1988 Bonds are issued. "outstanding" when used in this Ordinance with respect to Series 1988 Bonds , Previously Issued Bonds or Additional Bonds, as the case may be, means, as of the date of determination, all such bonds theretofore issued and delivered, except : (i) those bonds theretofore cancelled by the � paying agent/registrar or delivered to the paying � agent/registrar for cancellation; ( ii) those bonds for which payment has been duly �_ � provided by the City by the irrevocable deposit with the paying agent/registrar of money in the amount necessary to fully pay the principal of and interest thereon to maturity or redemption, as the case may be, provided that, if such bonds are to be redeemed, notice of redemption thereof shall have been duly given pursuant to the ordinance authorizing such bonds or irrevocably provided to be given to the satisfaction of the paying agent/registrar, or waived; (iii) those bonds that have been mutilated, destroyed, lost , or stolen and replacement bonds have been registered and delivered in lieu thereof as provided in the ordinance authorizing such bonds; and (iv) those bonds for which the payment of the principal of and interest on has been duly provided by the City in accordance with the provisions of the ordinance authorizing such bonds by the deposit in trust of money or Government Obligations , or both. �,,.,r 0 8 8 0 D -3- �� ; _ "Owner" means the person who is the registered owner of a Series 1988 Bond or Series 1988 Bonds . ' "Paying Agent/Registrar" means initially Texas American �� , Bank/Fort Worth, N.A. , Fort Worth, Texas, or any successor ' thereto as provided in this Ordinance. I "Previously Issued Bonds" means the City' s Waterworks and � �° ', Sewer System Revenue Refunding and Improvement Bonds, Series , 1985, dated September 1 , 1985, issued in the original principal ', amount of $13 , 132,560 . �I, "Record Date" means the fifteenth day of the month next ', preceding an Interest Payment Date. I "Register" means the Register specified in Section 3 . 06(a) of this Ordinance. "Reserve Fund" means the "City of Grapevine, Texas , Waterworks and Sewer System Revenue Bonds Reserve Fund, " described in Article VII of this Ordinance. "Reserve Fund Requirement" means the amount which is equal to the average annual principal and interest requirements 'i on the Bonds at any time outstanding. � "Revenue Fund" means the "City of Grapevine, Texas , Waterworks and Sewer System Revenue Fund, " described in Article - '�� VII of this Ordinance. �;� II "Series 1988 Bond" means any of the Series 1988 Bonds . '�, , � � '�, "Series 1988 Bonds" means the City' s waterworks and sewer ', system revenue bonds authorized to be issued by Section 3 . 01 of ' this Ordinance and designated as "City of Grapevine, Texas , Waterworks and Sewer System Revenue Bonds, Series 1988, " in the aggregate principal amount of $6,700 , 000 . "System" means the City' s existing combined waterworks and sewer system, including all properties (real, personal or 'i mixed and tangible or intangible) owned, operated and I maintained by, and vested in, the City for the supply, I, treatment and distribution of treated water for domestic, ', commercial, industrial and other uses and the collection and '� treatment of water-carried waste, together with all future '�, additions, extensions, replacements, and improvements thereto. �� "Unclaimed Payments" ineans money deposited with the II Paying Agent/Registrar for the payment of principal of or , interest on the Series 1988 Bonds as the same come due and I payable and remaining unclaimed by the Owners of such Bonds for '� 90 days after the applicable payment or redemption date. ' �� , 0 8 8 0 D -4- ' � ::. _ Section 1 . 02 . Findinqs . (a) The declarations, determinations and findings declared, made and found in the preambles to this Ordinance are � °� hereby adopted, restated and made a part of the operative provisions hereof . �� (b) The Series 1988 Bonds are payable from and secured by a first lien on the Net Revenues of the System. Section 1 . 03 . Table of Contents , Titles and Headings . The table of contents, titles and headings of the Articles and Sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof and shall never be considered or given any effect in construing this Ordinance or any provision hereof or in ascertaining intent, if any question of intent should arise. Section 1 . 04 . Interpretation. (a) Unless the context requires otherwise, words of the masculine gender shall be construed to include correlative words of the feminine and neuter genders and vice versa, and words of the singular number shall be construed to include correlative words of the plural number and vice versa. `� ' (b) This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes �� set forth herein to sustain the validity of this Ordinance . ARTICLE II SECURITY FOR THE BONDS Section 2 . 01 . Pledqe of Security. The City hereby covenants and agrees that all of the Net Revenues of the System with the exception of those in excess of the amounts required to establish and maintain the funds as hereinafter provided are hereby irrevocably pledged to the payment of the Series 1988 Bonds and all Previously Issued Bonds and Additional Bonds, together with the interest thereon, required by this Ordinance, the ordinance authorizing the Previously Issued Bonds, and any future ordinances authorizing any Additional Bonds . It is hereby ordained that the payment of the Series 1988 Bonds, the Previously Issued Bonds and the Additional Bonds, if any, and the interest thereon, shall constitute a first lien upon the Net Revenues of the System. �.: 2, 0 8 8 0 D -5- �� . Section 2 . 02 . Rates and Charqes . The City covenants and agrees with the holders of the Bonds, as follows : �.,�,� (a) That it will at all times charge and collect for services rendered by the System rates sufficient to pay all operating, maintenance, replacement and improvement expenses , and any other costs deductible in determining Net Revenues and � ' to pay the interest on and the principal of the Bonds , and to establish and maintain the funds as hereinafter provided; and ' (b) That, if the System should become legally liable ', for any other indebtedness, the City will fix and maintain � rates and collect charges for the services of the System sufficient to discharge such indebtedness . Section 2 . 03 . Bonds as Special Obliqations . The Series 1988 Bonds are special obligations of the City payable solely from the Net Revenues of the System, and the Owners thereof shall never have the right to demand payment thereof out of any other funds raised or to be raised by taxation. �I�', ARTICLE III II' AUTHORIZATION; GENERAL TERMS AND I PROVISIONS REGARDING THE BONDS "'"" ' Section 3 . 01 . Authorization. � � �. ' The City' s bonds to be designated the "City of Grapevine, , Texas, Waterworks and Sewer System Revenue Bonds, Series 1988 , " are hereby authorized to be issued and delivered in accordance with the Constitution and laws of the State of Texas, including particularly Article 1111 , et . seq. , Vernon ' s Annotated Texas Civil Statutes, as amended. The Series 1988 Bonds shall be issued in the a ggregate rinci al amount of 6 700 00 P P $ , , 0 , for the purpose of extending and improving the System and for paying , the costs of issuing the Series 1988 Bonds . '�, Section 3 . 02 . Date, Denomination, Maturities and I Interest . ', (a) The Series 1988 Bonds shall be dated October 1 , ', 1988 . The Series 1988 Bonds .shall be in fully registered form, i without coupons, in the denomination of $5, 000 or any integral �, multiple thereof and shall be numbered separately from one I upward, except the Initial Bond, which shall be numbered T-1 . .�. ,�, 0 8 8 0 D � -6- . (b) The Series 1988 Bonds shall mature on September 1 in the years and in the principal amounts set forth in the following schedule: �:�„� Principal Interest Principal Interest Years Amounts Rates Years Amounts Rates 1989 $115, 000 10 . 00% 2000 $285,000 7 . 10% �"'� 1990 125,000 10 . 00% 2001 310, 000 7 . 20% 1991 140 ,000 10 . 00% 2002 330, 000 7 .30% 1992 155,000 10 . 00% 2003 355, 000 7 .35% 1993 165, 000 10 . 000 2004 380, 000 7 . 40% 1994 185, 000 10 . 00% 2005 410, 000 7 . 40% 1995 295, 000 10 . 00% 2006 440,000 7 . 50% 1996 220, 000 10 . 00% 2007 475, 000 7 . 50% 1997 235, 000 10 . 00% 2008 510 ,000 7 . 50% 1998 250 ,000 7 . 50% 2009 550 ,000 7 . 00% 1999 270 ,000 7 . 00% 2010 595,000 7 . 00o (c) Interest shall accrue and be paid on each Series 1988 Bond respectively until its maturity or prior redemption, from the later of the Bond Date or the most recent Interest Payment Date to which interest has been paid or provided for at the rate per annum for each respective maturity specified in the schedule contained in subsection (b) above. Such interest shall be payable semiannually on March 1 and September 1 of each year, commencing March 1 , 1989 , computed on the basis of a 360-day year of twelve 30-day months . � Section 3 . 03 . Medium, Method and Place of Payment . (a) The principal of, redemption premium, if any, and �� interest on the Series 1988 Bonds shall be paid in lawful money of the United States of America. (b) Interest on the Series 1988 Bonds shall be payable to the Owners as shown in the Register on the Record Date. (c) Interest shall be paid by check, dated as of the Interest Payment Date, and sent first class United States mail , postage prepaid, by the Paying Agent/Registrar to each Owner at the address of each Owner as such appears in the Register, or by such other customary banking arrangement acceptable to the Paying Agent/Registrar and the person to whom interest is to be paid; provided, however, that such person shall bear all risk and expenses of such customary banking arrangement . (d) The principal of each Series 1988 Bond shall be paid to the Owner thereof on the due date, whether at the maturity date or the date of prior redemption thereof, upon presentation and surrender of such Series 1988 Bond at the principal corporate trust office of the Paying Agent/Registrar . ��.� 0 8 8 0 D -7- � � , (e) If the date for the payment of the principal of or , interest on the Series 1988 Bonds shall be a Saturday, Sunday, ' legal holiday or day on which banking institutions in the city ' where the Paying Agent/Registrar is located are required or ', authorized by law or executive order to close, then the date .�� ' for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or day on which banking institutions are required or authorized to close, and payment ', on such date shall for all purposes be deemed to have been made � �' ' on the due date thereof as specified in this Section. ', (f) Unclaimed Payments shall be segregated in a , special account and held in trust, uninvested by the Paying 'i Agent/Registrar, for the account of the Owner of the Series 1988 Bonds to which the Unclaimed Payments pertain. Subject to _ any applicable escheat, abandoned property or similar law, Unclaimed Payments remaining unclaimed by the Owners entitled thereto for four years after the applicable payment or redemption date shall be applied to the next payment or payments on the Series 1988 Bonds thereafter coming due and, to the extent any such money remains after the retirement of all outstanding Series 1988 Bonds, shall be paid to the City to be , used for any lawful purpose. Thereafter, neither the City, the 'I Paying Agent/Registrar nor any other person shall be liable or responsible to any holders of such Series 1988 Bonds for any further payment of such unclaimed moneys or on account of any I such Series 1988 Bonds, subject to any applicable escheat law I or similar law. '� Section 3 . 04 . Execution and Reqistration of Series 1988 �`�" ', Bonds . I (a) The Series 1988 Bonds shall be executed on behalf "�� i of the City by the Mayor and City Secretary, by their manual or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile , signatures on the Series 1988 Bonds shall have the same effect ', as if each of the Series 1988 Bonds had been signed manually ! and in person b each of said officers, and such facsimile 1 Y sea on the Series 1988 Bonds shall have the same effect as if the official seal of the City had been manually impressed upon each of the Series 1988 Bonds . (b) In the event that any officer of the City whose I� manual or facsimile signature appears on the Series 1988 Bonds �I ceases to be such officer before the authentication of such , Series 1988 Bonds or before the delivery thereof, such 'I facsimile signature nevertheless shall be valid and sufficient � for all purposes as if such officer had remained in such office. ', (c) Except as provided below, no Series 1988 Bond ' shall be valid or obligatory for any purpose or be entitled to ' any security or benefit of this Ordinance unless and until ' �,� 0 8 8 0 D _$- r, w . there appears thereon the Certificate of Paying Agent/Registrar substantially in the form provided herein, duly authenticated by manual execution by an officer or duly authorized signatory of the Paying Agent/Registrar . It shall not be required that �� •� the same officer or authorized signatory of the Paying Agent/ Registrar sign the Certificate of Paying Agent/Registrar on all of the Series 1988 Bonds . In lieu of the executed Certificate of Paying Agent/Registrar described above, the Initial Bond ��"� delivered at the Closing Date shall have attached thereto the Comptroller ' s Registration Certificate substantially in the form provided herein, manually executed by the Comptroller of Public Accounts of the State of Texas , or by his duly authorized agent, which certificate shall be evidence that the Initial Bond has been duly approved by the Attorney General of the State of Texas and that it is a valid and binding obligation of the City, and has been registered by the Comptroller of Public Accounts of the State of Texas . (d) On the Closing Date, one Initial Bond representing the entire principal amount of all Series 1988 Bonds, payable in stated installments to the Purchaser, or its designee, manually signed by the Mayor and the City Secretary, approved by the Attorney General , and registered and manually signed by the Comptroller of Public Accounts, will be delivered to the Purchaser or its designee. Upon payment for the Initial Bond, the Paying Agent/Registrar shall cancel the Initial Bond and deliver registered definitive Series 1988 Bonds, each definitive Series 1988 Bond having a single, specified maturity � and interest rate, in integral multiples of $5, 000 , in m accordance with instructions received from the Purchaser or its designee. It shall be the duty of the Purchaser or its �� designee to furnish to the Paying Agent/Registrar, a•t least five business days prior to the Closing Date, written instructions on forms which the Purchaser or its designee must request of and obtain from, and which shall be provided by, the Paying Agent/Registrar, designating the names in which such definitive Series 1988 Bonds are to be registered, the addresses of the Owners, the respective maturities, interest rates and denominations . If such written instructions are not received within the specified time period, the cancellation of the Initial Bond and delivery of definitive Series 1988 Bonds in exchange therefor may be delayed until such instructions are received. Section 3 . 05 . Ownership. (a) The City, the Paying Agent/Registrar and any other person may treat the person in whose name any Series 1988 Bond is registered as the absolute owner of such Series 1988 Bond for the purpose of making and receiving payment of the principal thereof and redemption premium, if any, thereon, for the further purpose of making and receiving payment of the ��.� 0 8 8 0 D -9- . interest thereon, and for all other purposes, whether or not such Series 1988 Bond is overdue, and neither the City nor the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. �� (b) All payments made to the Owner of a Series 1988 Bond shall be valid and effectual and shall discharge the liability of the City and the Paying Agent/Registrar upon such r .: Series 1988 Bond to the extent of the sums paid. Section 3 . 06 . Reqistration, Transfer and Exchanqe . (a) So long as any Series 1988 Bond remains outstanding, the City shall cause the Paying Agent/Registrar to keep at its principal corporate trust office a register in ' which, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the ', registration and transfer of Series 1988 Bonds in accordance with this Ordinance. (b) The ownership of a Series 1988 Bond may be ' transferred only upon the presentation and surrender of the Series 1988 Bond at the principal corporate trust office of the ', Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar . No transfer of any Series 1988 Bond shall be effective until entered in the Register . (c) The Series 1988 Bonds shall be exchangeable upon the presentation and surrender thereof at the principal "�"� corporate trust office of the Paying Agent/Registrar for a , Series 1988 Bond or Series 1988 Bonds of the same maturity and w,.�F interest rate and in any denomination or denominations of any integral multiple of $5, 000 and in an aggregate principal amount equal to the unpaid principal amount of the Series 1988 Bonds presented for exchange. The Paying Agent/Registrar is hereby authorized to authenticate and deliver Series 1988 Bonds exchanged for other Series 1988 Bonds in accordance with this Section. , (d) Each exchange Series 1988 Bond delivered by the ', Paying Agent/Registrar in accordance with this Section shall ', constitute an original contractual obligation of the City and ' shall be entitled to the benefits and security of this ' Ordinance to the same extent as the Series 1988 Bond or Series ' 1988 Bonds in lieu of which such exchange Series 1988 Bond is delivered. ' (e) No service charge shall be made to the Owner for the initial registration and any subsequent transfer or exchange for a different denomination of any of the Series 1988 Bonds . The Paying Agent/Registrar, however, may require the �•.� 0 8 8 0 D -1�- k,. y. Owner to pay a sum sufficient to cover any tax or other ' governmental charge that is authorized to be imposed in connection with the registration, transfer or exchange of a Series 1988 Bond. �._� (f) Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer or exchange any Series 1988 Bond called for redemption, in whole or in part, where "�x�� such redemption is scheduled to occur within 30 calendar days after the transfer or exchange date; provided, however, such limitation of transfer shall not be applicable to an exchange by the Owner of the uncalled principal balance of a Series 1988 Bond. Section 3 . 07 . Cancellation. All Series 1988 Bonds paid or redeemed before scheduled maturity in accordance with this Ordinance and all Series 1988 Bonds in lieu of which exchange Series 1988 Bonds or replacement Series 1988 Bonds are authenticated and delivered in accordance with this Ordinance shall be cancelled and destroyed upon the making of proper records regarding such payment, redemption, exchange or replacement . The Paying Agent/Registrar shall then return such cancelled Series 1988 Bonds to the City or may, in accordance with law, destroy such cancelled Series 1988 Bonds and periodically furnish the City with certificates of destruction of such Series 1988 Bonds . • , Section 3 . 08 . Temporary Bonds . �r, .,, (a) Following the delivery and registration of the Initial Bond and pending the preparation of definitive Series "`°�ri� 1988 Bonds , the proper officers of the City may execute and, upon the City' s request, the Paying Agent/Registrar shall authenticate and deliver, one or more temporary Series 1988 Bonds that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination, substantially of the tenor of the definitive Series 1988 Bonds in lieu of which they are delivered, without coupons, and with such appropriate insertions, omissions, substitutions and other variations as the officers of the City executing such temporary Series 1988 Bonds may determine, as evidenced by their signing of such temporary Series 1988 Bonds . (b) Until exchanged for Series 1988 Bonds in definitive form, such Series 1988 Bonds in temporary form shall be entitled to the benefit and security of this Ordinance. (�) The City, without unreasonable delay, shall prepare, execute and deliver to the Paying Agent/Registrar, the Series 1988 Bonds in definitive form; thereupon, upon the presentation and surrender of the Series 1988 Bond or Series ��u:;� 0 8 8 0 D -11- 1988 Bonds in temporary form to the Paying Agent/Registrar , the ' Paying Agent/Registrar shall cancel the Series 1988 Bonds in temporary form and authenticate and deliver in exchange therefor a Series 1988 Bond or Series 1988 Bonds of the same maturity and series, in definitive form, in the authorized �� denomination, and in the same aggrega�e principal amount, as the Series 1988 Bond or Series 1988 Bonds in temporary form surrendered. Such exchange shall be made without the making of any charge therefor to any Owner . " � Section 3 . 09 . Replacement Bonds . (a� Upon the presentation and surrender to the Paying Agent/Registrar of a mutilated Series 1988 Bond, the Paying Agent/Registrar shall authenticate and deliver in exchange ', therefor a replacement Series 1988 Bond of like tenor and ', principal amount, bearing a number not contemporaneously outstanding. The City or the Paying Agent/Registrar may , require the Owner of such Series 1988 Bond to pay a sum '� sufficient to cover any tax or other governmental charge that , is authorized to be imposed in connection therewith and any , other expenses connected therewith. (b) In the event that any Series 1988 Bond is lost , , apparently destroyed or wrongf.ully taken, the Paying Agent/Registrar, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Series 1988 Bond has been acquired by a bona fide purchaser , shall authenticate and deliver a replacement Series 1988 Bond of like tenor and principal amount, bearing a number not +�� contemporaneously outstanding, provided that the Owner first complies with the following requirements : �.� ( i) furnishes to the Paying Agent/Registrar satisfactory evidence of his or her ownership of and the ' - circumstances of the loss, destruction or theft of such Series 1988 Bond; ' ( ii) furnishes such security or indemnity as may be required by the Paying Agent/Registrar to save it and the City harmless; ' ( iii) pays all expenses and charges in connection '� therewith, including, but not limited to, printing costs, ' legal fees, fees of the Paying Agent/Registrar and any , tax or other governmental charge that is authorized to be ' imposed; and ( iv) satisfies any other reasonable requirements ' imposed by the City and the Paying Agent/Registrar . �� 0 8 B 0 D -12- �, ,w.. , (c) After the delivery of such replacement Series 1988 Bond, if a bona fide purchaser of the original Series 1988 Bond in lieu of which such replacement Series 1988 Bond was issued presents for payment such original Series 1988 Bond, the City �;,.� and the Paying Agent/Registrar shall be entitled to recover such replacement Series 1988 Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the '�°°-� security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Paying Agent/Registrar in connection therewith. (d) In the event that any such mutilated, lost, apparently destroyed or wrongfully taken Series 1988 Bond has become or is about to become due and payable, the Paying Agent/Registrar, in its discretion, instead of issuing a replacement Series 1988 Bond, may pay such Series 1988 Bond if it has become due and payable, or may pay such Series 1988 Bond when it becomes due and payable. (e) Each replacement Series 1988 Bond delivered in accordance with this Section shall constitute an original additional contractual obligation of the City and shall be entitled to the benefits and seeurity of this Ordinance to the same extent as the Series 1988 Bond or Series 1988 Bonds in lieu of which such replacement Series 1988 Bond is delivered. ' ARTICLE IV REDEMPTION OF BONDS BEFORE MATURITY �'� �" Section 4 . 01 . Limitation on Redemption. The Series 1988 Bonds shall be subject to redemption before scheduled maturity only as provided in this Article IV. - Section 4 . 02 . �tional Redemption. (a) The City reserves the option to redeem Series 1988 Bonds maturing on and after September 1 , 1999 , in whole or in part before their respective scheduled maturity dates, on September 1, 1998, or on any date thereafter, such redemption date or dates to be fixed by the City, at a price equal to the principal amount of the Series 1988 Bonds so called for redemption plus accrued interest to the date fixed for redemption. (b) The City, at least 45 days before the redemption date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar �-,::,�, 0 8 8 0 D -13- ' of such redemption date and of the principal amount of Series " 1988 Bonds to be redeemed. ' Section 4 . 03 . Partial Redemption. �� (a) If less than all of the Series 1988 Bonds are to be redeemed, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot the Series � '�"' 1988 Bonds, or portions thereof, within such maturity or ' maturities and in such principal amounts for redemption. ' (b) A portion of a single Series 1988 Bond of a ' denomination greater than $5,000 may be redeemed, but only in a principal amount equal to $5,000 or any integral multiple i _ thereof . If such a Series 1988 Bond is to be partially I, redeemed, the Paying Agent/Registrar shall treat each $5 , 000 '�, portion of a Series 1988 Bond as though it were a single bond ��i for purposes of selection for redemption. ', (c) Upon surrender of any Series 1988 Bond for I, redemption in part, the Paying Agent/Registrar , in accordance with Section 3 . 06 of this Ordinance, shall authenticate and deliver an exchange Series 1988 Bond or Series 1988 Bonds in an aggregate principal amount equal to the unredeemed portion of the Series 1988 Bond so surrendered, such exchange being without charge, notwithstanding any provision of Section 3 . 06 '�, . to the contrary. , (d) The Paying Agent/Registrar shall promptly notify �� the City in writing of the principal amount to be redeemed of ' any Series 1988 Bond as to which only a portion thereof is to be redeemed. '�'�` ', Section 4 . 04 . Notice of Redemption to Owners . (a) The Paying Agent/Registrar shall give notice of any redemption of Series 1988 Bonds by sending notice by first ' class United States mail , postage prepaid, not less than 30 days before the date fixed for redemption, to the Owner of each Series 1988 Bond (or part thereof) to be redeemed, at the '�� address shown in the Register . ��, (b) The notice shall state the redemption date, the ', redemption price, the place at which the Series 1988 Bonds are ', to be surrendered for payment, and, if less than all the Series ' 1988 Bonds outstanding are to be redeemed, an identification of the Series 1988 Bonds or portions thereof to be redeemed. ' (c) Any notice given as provided in this Section shall be conclusively presumed to have been duly given, whether or not the Owner receives such notice. �� 0880D -14- � � Section 4 . 05 . Payment Upon Redemption. (a) Before or on each redemption date, the City shall deposit with the Paying Agent/Registrar money sufficient to pay all amounts due on the redemption date and the Paying �� Agent/Registrar shall make provision for the payment of the Series 1988 Bonds to be redeemed on such date by setting aside and holding in trust an amount from the Interest and Sinking Fund or otherwise received by the Paying Agent/Registrar from the . City and shall use such funds solely for the purpose of paying the principal of, redemption premium, if any, and accrued interest on the Series 1988 Bonds being redeemed. (b) Upon presentation and surrender of any Series 1988 Bond called for redemption at the principal corporate trust office of the Paying Agent/Registrar on or after the date fixed for redemption, the Paying Agent/Registrar shall pay the principal of, redemption premium, if any, and accrued interest on such Series 1988 Bond to the date of redemption from the money set aside for such purpose. Section 4 . 06 . Effect of Redemption. (a) Notice of redemption having been given as provided in Section 4 . 04 of this Ordinance, the Series 1988 Bonds or portions thereof called for redemption shall become due and payable on the date fixed for redemption and, unless the City defaults in the payment of the principal thereof, redemption premium, if any, or accrued interest thereon, such Series 1988 Bonds or portions thereof shall cease to bear interest from and ' after the date fixed for redemption, whether or not such Series 1988 Bonds are presented and surrendered for payment on such �„tr..� date. (b) If the City shall fail to make provision for payment of all sums due on a redemption date, then any Series 1988 Bond or portion thereof shall continue to bear interest at the rate stated on the Series 1988 Bond until due provision is made for the payment of same. ARTICLE V PAYING AGENT/REGISTRAR Section 5 . 01 . Appointment of Initial Paying Aqent/Reqistrar . Texas American Bank/Fort Worth, N.A. , Fort Worth, Texas, is hereby appointed as the initial Paying Agent/Registrar for the Series 1988 Bonds . ��,,� 0 8 8 0 D -15- t s Section 5 . 02 . Qualifications . Each Paying Agent/Registrar shall be a commercial bank, a trust company organized under the laws of the State of Texas, or any other entity duly qualified and legally authorized to �'� serve as and perform the duties and services of paying agent and registrar for the Series 1988 Bonds . Section 5 . 03 . Maintaininq Payinq Aqent/Reqistrar . 1 ' (a) At all times while any Series 1988 Bonds are , outstanding, the City will maintain a Paying Agent/Registrar that is qualified under Section 5 . 02 of this Ordinance. The ', Mayor is hereby authorized and directed to execute an agreement ', with the Paying Agent/Registrar specifying the duties and ', responsibilities of the City and the Paying Agent/Registrar . ', The signature of the Mayor shall be attested by the City '�, Secretary. �� (b) If the Paying Agent/Registrar resigns or otherwise ', ceases to serve as such, the Cit will rom tl , y p p y appoint a replacement . Section 5 . 04 . Termination. The Cit u on n 1 y, p ot ess than 60 days notice, reserves the � right to terminate the appointment of any Paying Agent/ 'I Registrar by delivering to the entity whose appointment is to ' be terminated written notice of such termination. r�� Section 5 . 05 . Notice of Chanqe to Owners . .�� Promptly upon each change in the entity serving as Paying '� Agent/Registrar, the City will cause notice of the change to be � sent to each Owner by first class United States mail , postage prepaid, at the address in the Register, stating the effective ', date of the change and the name and mailing address of the replacement Paying Agent/Registrar . Section 5 . 06 . Agreement to Perform Duties and Functions . By accepting the appointment as Paying Agent/Registrar, i and executing the Paying Agent/Registrar Agreement, the Paying , Agent/Registrar is deemed to have agreed to the provisions of ; this Ordinance and that it will perform the duties and ', functions of Paying Agent/Registrar prescribed thereby. ' Section 5 . 07 . Delivery of Records to Successor . If a Paying Agent/Registrar is replaced, such Paying Agent, promptly upon the appointment of the successor, will deliver the Register (or a copy thereof) and all other ��. . �'w��'4KR 0 8 B 0 D -16- pertinent books and records relating to the Series 1988 Bonds ' to the successor Paying Agent/Registrar . ARTICLE VI FORM OF THE BONDS Section 6 . 01 . Form Generally. � (a) The Series 1988 Bonds, including the Registration Certificate of the Comptroller of Public Accounts of the State of Texas , the Certificate of the Paying Agent/Registrar and the Assignment form to appear on each of the Series 1988 Bonds, ( i) shall be substantially in the form set forth in this Article with such appropriate insertions, omissions, substitutions and other variations as are permitted or required by this Ordinance, and ( ii) may have such letters, numbers or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements ( including any reproduction of an opinion of counsel) thereon as, consistently herewith, may be determined by the City or by the officers executing such Series 1988 Bonds, as evidenced by their execution thereof . (b) Any portion of the text of any Series 1988 Bonds may be set forth on the reverse side thereof, with an appropriate reference thereto on the face of the Series 1988 . Bonds . ��::., (c) The definitive Series 1988 Bonds, if any, shall be printed, lithographed or engraved, and may be produced by �:,� any combination of these methods or produced in any other similar manner, all as determined by the officers executing such Series 1988 Bonds, as evidenced by their execution thereof . (d) The Initial Bond submitted to the Attorney General of the State of Texas may be typewritten and photocopied or otherwise reproduced. Section 6 . 02 . Form of the Series 1988 Bonds . The form of the Series 1988 Bonds, including the form of the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the form of Certificate of the Paying Agent/Registrar and the form of Assignment appearing on the Series 1988 Bonds shall be substantially as follows : �,:� 0 8 8 0 D -1 7- . (a) Form of Series 1988 Bonds . REGISTERED REGISTERED No . $ ,�� United States of America State of Texas COUNTY OF TARRANT '� � � CITY OF GRAPEVINE, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BOND SERIES 1988 ', INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP NO. I�, October 1 , 1988 ' The City of Grapevine (the "City" ) , in the County of Tarrant, State of Texas, for value received, hereby promises to pay to I��, or registered assigns, but solely from the sources and in the �, manner hereinafter provided, on the Maturity Date specified ' above, the sum of DOLLARS '"""' unless this Bond shall have been sooner called for redemption ,��. and the payment of the principal hereof shall have been paid or ', provided for, and to pay interest on such principal amount f rom ' the later of the Bond Date specified above or the most recent interest payment date to which interest has been paid or ', provided for until payment of such principal amount has been , paid or provided for , at the per annum rate of interest , specified above, computed on the basis of a 360-da ear of Y Y twelve 30-day months, such interest to be paid semiannually on March 1 and September 1 of each ear, commencin March 1 1989 . � Y g , �', The principal of this Bond shall be payable without '�,, exchange or collection charges in lawful money of the United I States of America upon presentation and surrender of this Bond � at the principal corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon. Interest on this Bond is payable by check , dated as of the interest payment date, mailed by the Paying '�, Agent/Registrar to the registered owner at the address shown on ' the registration books kept by the Paying Agent/Registrar, or .�� 0 8 8 0 D -1.8- � .�, . by such other customary banking arrangement acceptable to the Paying Agent/Registrar and the person to whom interest is to be paid; provided, however, that such person shall bear all risk and expenses of such customary banking arrangement . For the '�'"�' purpose of the payment of interest on this Bond, the r�egistered owner shall be the person in whose name this Bond is registered at the close of business on the "Record Date, " which shall be � the fifteenth day of the month next preceding such interest payment date. If the date for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, legal holiday or day on which banking institutions in the city where the Paying Agent/Registrar is located are required or authorized by law or executive order to close, the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or day on which banking institutions are required or authorized to close and payment on such date shall for all purposes be deemed to have been made on the original date payment was due. This Bond is one of the series of fully registered bonds specified in its title issued in the aggregate principal amount of $6, 700 , 000 (herein referred to as the "Bonds" ) issued pursuant to an ordinance adopted by the governing body of the City (the "Ordinance" ) , for the purpose of improving and extending the City' s combined waterworks and sewer system (the � "System" ) and for paying the costs of issuing the Bonds . �* .a The Bonds constitute special obligations of the City and are payable solely from and equally secured by a first lien on �� and pledge of the Net Revenues (as defined in the Ordinance) of the System. The City expressly reserves the right to issue additional revenue obligations in all things on a parity with the Bonds, payable solely from and equally secured by a first lien on and pledge of the Net Revenues of the System; provided, however, that any and all such additional obligations may be so issued only in accordance with and subject to the covenants, conditions, limitations and restrictions relating thereto which are set out and contained in the Ordinance to which reference is hereby made for more complete and full particulars . The City has reserved the option to redeem the Bonds maturing on or after September 1 , 1999 , in whole or in part, before their respective scheduled maturity dates, on September 1, 1998, or on any date thereafter , at a price equal to the principal amount of the Bonds so called for redemption plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed, the City shall determine the maturity or maturities and the amounts thereof to �,-,�, 0 8 8 0 D -19- � , be redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions thereof, within such maturity and in such principal amounts, for redemption. Notice of such redemption or redemptions shall be given by first class mail , postage prepaid, not less than 30 days �� before the date fixed for redemption, to the registered owner of each of the Bonds to be redeemed in whole or in part . Notice having been so given, the Bonds or portions thereof designated for redemption shall become due and payable on the � � redemption date specified in such notice; and, from and after such date, notwithstanding that any of the Bonds or portions thereof so called for redemption shall not have been surrendered for payment, interest on such Bonds or portions thereof shall cease to accrue. As provided in the Ordinance, and subject to certain ' limitations therein set forth, this Bond is transferable upon surrender of this Bond for transfer at the principal corporate trust office of the Paying Agent/Registrar with such ' endorsement or other evidence of transfer as is acceptable to , the Paying Agent/Registrar; thereupon, one or more new fully registered Bonds of the same stated maturity, of authorized ', denominations, bearing the same rate of interest, and for the ' same aggregate principal amount will be issued to the designated transferee or transferees . I The City, the Paying Agent/Registrar and any other person , may treat the person in whose name this Bond is re istered as g the owner hereof for the purpose of receiving payment as herein provided (except interest shall be paid to the person in whose �''"� name this Bond is registered on the "Record Date" ) and for all other purposes, whether or not this Bond be overdue, and ' neither the City, the Paying Agent/Registrar nor any other �� , person shall be affected by notice to the contrary. ', Neither the City nor the Paying Agent/Registrar shall be ' required to issue, transfer or exchange any Bond called for redemption where such redemption is scheduled to occur within 30 calendar days of the transfer or exchange date; provided, however, such limitation shall not be applicable to an exchange I by the registered owner of the uncalled principal balance of a ', Bond. �, IT IS HEREBY CERTIFIED AND RECITED that the issuance of ', this Bond and the series of which it is a part is duly ', authorized by law; that all acts, conditions and things ' required to be done precedent to and in the issuance of the Bonds to render the same lawful and valid have been properly done and have happened in regular and due time, form and manner ', as required by law; that the Bonds do not exceed any constitutional or statutory limitation; and that provision has 08 8 0D s�+a� -2�- �. ,,, , been made for the payment of the principal of and interest on the Bonds by irrevocably pledging the Net Revenues of the System, as hereinabove recited. ,�>.,� The owner hereof shall never have the right to demand payment of this Bond out of any funds raised or to be raised by taxation. IN WITNESS WHEREOF, the City has caused this Bond to be executed in its name by the manual or facsimile signature of the Mayor of the City and countersigned by the manual or facsimile signature of the City Secretary, and the official seal of the City has been duly impressed or placed in facsimile on this Bond. Mayor, City of Grapevine, Texas City Secretary, City of Grapevine, Texas � [SEAL] ��_,.�, (b) Form of Comptroller ' s Registration Certificate . The following Comptroller ' s Registration Certificate may be deleted from the definitive Series 1988 Bonds if such Certificate on the Initial Bond is fully executed. OFFICE OF THE COMPTROLLER § OF PUBLIC ACCOUNTS § REGISTER N0. OF THE STATE OF TEXAS § I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this Bond has been examined by him as required by law, that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding special obligation of the City of Grapevine, Texas,: payable from the revenues pledged to its payment by and in the ordinance authorizing same and that said bond has this day been registered by me. ��,� 0 B 8 0 D -21- Witness my hand and seal of office at Austin, � Texas, .��, Comptroller of Public Accounts of the State of Texas ,�. ..; (SEAL] (c) Form of Certificate of Payinq Aqent/Reqistrar . ', The following Certificate of Paying Agent/Registrar may !, be deleted from the Initial Bond if the Comptroller ' s ' Registration Certificate appears thereon. ' CERTIFICATE OF PAYING AGENT/REGISTRAR The records of the Paying Agent/Registrar show that the ' Initial Bond of this series of bonds was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas, and that this is one of the Bonds referred to in the within-mentioned ' Ordinance. �+� TEXAS AMERICAN BANK/FORT WORTH, N.A. , FORT WORTH, TEXAS as Paying Agent/Registrar ��' Dated: gy; Authorized Signatory (d) Form of Assiqnment . II ASSIGNMENT , FOR VALUE RECEIVED the undersigned hereby sells, assigns � and transfers unto (print or typewrite name, address and zip ' code of transferee) : .�.� 0 8 8 0 D -22- (Social Security or other identifying number : ) the within Bond and all rights hereunder and hereby irrevocably constitutes and appoints attorney to "��'� transfer the within Bond on the books kept for registration hereof, with full power of substitution in the premises . Dated: Signature Guaranteed By: NOTICE: The signature on this . Assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular and must be guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Authorized Signatory Dealers . (e) The Initial Bond shall be in the form set forth in paragraphs (a) through (d) of this Section, except for the following alterations : ( i) immediately under the name of the Series � 1988 Bond, the headings "INTEREST RATE" and "MATURITY �� DATE" shall both be completed with the words "As shown below" ; �,. (ii) in the first paragraph of the Series 1988 Bond, the words "on the Maturity Date specified above" shall be deleted and the following will be inserted: "on September 1 in each of the years, in principal installments, and bearing interest at the per annum rates in accordance with the following schedule: Principal - Interest Years Installments Rates " (Information to be inserted from schedule in Section 3 . 02 of this Ordinance) ( iii) in the second paragraph of the Series 1988 Bond, the words "executing the registration certificate appearing hereon" shall be deleted and an additional sentence shall be added to the paragraph as follows : "The initial Paying Agent/Registrar is Texas American Bank/Fort Worth, N.A. , Fort Worth, Texas . " ; and ��_,� 0 S 8 0 D -23- , • ( iv) the Initial Bond shall be numbered T-1 . Section 6 . 03 . CUSIP Reqistration. ' The City may secure identification numbers through the �-�¢k� ' CUSIP Service Bureau Division of Standard & Poor ' s Corporation, New York, New York, and may authorize the printing of such ' numbers on the face of the Series 1988 Bonds . It is expressly � .: provided, however, that the presence or absence of CUSIP numbers on the Series 1988 Bonds shall be of no significance or , effect as regards the legality thereof and neither the City nor ', bond counsel to the City are to be held responsible for CUSIP ', numbers incorrectly printed on the Series 1988 Bonds . I', Section 6 . 04 . Legal Opinion. I�, The approving legal opinion of Hutchison Boyle Brooks & !i Dransfield, a Professional Corporation, Bond Counsel , may be �i printed on the reverse side of each Series 1988 Bond over the �I certification of the City Secretary of the City, which may be , executed in facsimile . ' Section 6 . 05 . Statement of Insurance. ' A statement relating to a municipal bond insurance policy, if any, to be issued for the Series 1988 Bonds may be ', printed on or attached to each Series 1988 Bond. ART I CLE V I I "�'"� FUNDS AND ACCOUNTS �,,g; , Section 7 . 01 . Special Funds . ' The City covenants and agrees that all revenues derived from the operation of the System shall be kept separate from other funds of the City. To that end, the following special funds shall be established and maintained in an official �, depository bank of the City so long as any of the Series 1988 ', Bonds, Previously Issued Bonds, or Additional Bonds are ', outstanding and unpaid, to-wit : �� (a) "City of Grapevine, Texas, Waterworks and Sewer 'I System Revenue Fund, " herein called the "Revenue Fund" ; and i (b) "City of Grapevine, Texas, Waterworks and Sewer � System Revenue Bonds Interest and Sinking Fund, " herein called the "Interest and Sinking Fund" ; and I „ , (c) Cit of Gra evine Tex y p , as, Waterworks and Sewer ' System Revenue Bonds Reserve Fund, " herein called the "Reserve ' Fund. �� .�� 0 8 8 0 D -24- Section 7 . 02 . Revenue Fund. All gross revenues of every nature received from the operation and ownership of the System shall be deposited from �,;.� day to day as collected into the Revenue Fund, and the reasonable, necessary, and proper expenses of operation and maintenance of the System shall be paid from the Revenue Fund. The revenues of the System not actually required to pay said �� expenses shall be deposited from the Revenue Fund into the oth�r funds described in this Ordinance, in the manner and amounts hereinafter provided, and each of such funds shall have priority as to such deposits in the order in which they are treated in the following sections . Section 7 . 03 . Interest and Sinkinq Fund. There shall be deposited into the Interest and Sinking Fund the following: (a) such amounts, in equal monthly installments, commencing November 1 , 1988 , and on the first day of each month thereafter, as will be sufficient to pay the interest scheduled � to come due on the Series 1988 Bonds and the Previously Issued Bonds on the next Interest Payment Date, less any amounts already on deposit therein for such purpose derived from the proceeds of the Series 1988 Bonds or from any other lawfully available source; and • (b) such amounts, in equal monthly installments, � � commencing November 1 , 1988, and on the first day of each month thereafter, as will be sufficient to pay the next maturing �.. .. principal of the Series 1988 Bonds . , The Interest and Sinking Fund shall be used to pay the principal of and interest on the Bonds as such principal matures and such interest becomes due. Section 7 . 04 . Reserve Fund. So long as the funds on deposit in the Reserve Fund created for the benefit of the Series 1988 Bonds, the Previously Issued Bonds, and all Additional Bonds are equal to the Reserve Fund Requirement, no deposits need to 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 �»�>� 0 8 8 0 D -25- � ' . 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 w� the same in the Revenue Fund. By reason of the issuance of the Series 1988 Bonds, the Reserve Fund Requirement is hereby determined to be �� $1, 7.77,024 . In accordance with the procedures specified in the preceding paragraph, the City hereby directs that the deposits, if any, being made to the Reserve Fund be increased to , accumulate in the Reserve Fund within 60 months from the date of the Series 1988 Bonds an amount equal to the Reserve Fund Requirement . Section 7 . 05 . Deficiencies in Funds . ' If in any month the City shall fail to pay into any Fund described in this Ordinance the full amounts required, amounts equivalent to such deficiencies shall be set apart and paid , into said fund from the first available and unallocated Net ', Revenues of the System for the following month or months, and ' such payments shall be in addition to the amounts otherwise ', required hereby to be paid into said fund during such month or ' months . To the extent necessary, the City shall increase the rates and charges for services of the System to make up for any ' such deficiencies . Section 7 . 06 . Excess Revenues . �� The Net Revenues of the System, in excess of those �� necessary to establish and maintain the funds as required by this Ordinance, or as hereafter may be required in connection ', with the issuance of Additional Bonds, may be used for any '�, lawful purpose. Section 7 . 07 . Security of Funds . I All moneys on deposit in the funds referred to in this ' Article shall be secured in the manner and to the fullest ', extent required by the laws of the State of Texas for the ' security of public funds, and moneys on deposit in such funds ' shall be used only for the purposes permitted by this Ordinance. ', Section 7 . 08 . Investment of Certain Funds . , Money in any fund established pursuant to this Ordinance may, at the option of the City, be placed in time deposits or , certificates of deposit secured by obligations of the type i hereinafter described, or may be invested, including , investments held in book-entry form, in direct obligations of ' the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the '"�" 0 8 8 0 D -26- � , , Attorney General of the United States, are secured by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of �� indebtedness issued, insured or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks , �� Government National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mortgage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such manner as will permit money required to be expended from a fund to be available at the proper time or times for the purposes thereof . Such investments shall be valued each year in terms of current market value as of the last day of the City' s fiscal year . All interest and earnings derived from deposits and investments in the Interest and Sinking Fund immediately shall be credited to, and any losses shall be debited to, the Interest and Sinking Fund. All interest and earnings derived from deposits and investments in the Reserve Fund immediately shall be credited to and deposited in the Revenue Fund as the same are received. All such investments shall be sold promptly, when necessary, to prevent any default in connection with the Bonds . ARTICLE VIII xi SALE AND DELIVERY OF SERIES 1988 BONDS; DEPOSIT OF PROCEEDS �µ,,� Section 8 . 01 . Sale of Series 1988 Bonds; Official Statement . (a) The Series� 1988 Bonds are hereby officially sold and shall be delivered to Underwood, Neuhaus & Co . , Inc . and associates (the "Purchaser" ) for a price of par plus accrued interest to the Closing Date, and a premium of $-0-. (b) The Official Statement -and the Notice of Sale and Bidding Instructions, both dated September 1, 1988, and the Official Bid Form dated September 20 , 1988, all of which have been prepared and distributed in connection with the sale of the Series 1988 Bonds are hereby approved, confirmed and adopted as official documents and statements of the City. (c) The use of such Official Statement and the Notice of Sale and Bidding Instructions and all addenda, if any, thereto, in the offering and sale of the Series 1988 Bonds is hereby approved, authorized and ratified. 0 8 8 0 D -2�- ' . (d) The signing of the Official Statement by the Mayor and the City Secretary are hereby approved, authorized and ratified. ', (e) All officers of the City are authorized to execute .�.,��. such documents, certificates and receipts as they may deem ', appropriate in order to consummate the delivery of the Series , 1988 Bonds in accordance with the terms of sale therefor . rt: ' (f) The obligation of the Purchaser to accept delivery , of the Series 1988 Bonds is subject to the Purchaser being , furnished with the final , approving opinion of Hutchison Boyle ', Brooks & Dransfield, a Professional Corporation, Bond Counsel for the City, which opinion shall be dated and delivered on the ' Closing Date. I�' Section 8 . 02 . Control and Delivery of Series 1988 Bonds . I', (a) The Mayor of the City is hereby authorized to have '�, control of the Initial Bond and all necessary records and ! proceedings pertaining thereto pending investigation, ! examination and approval of the Attorney General of the State ' of Texas, registration by the Comptroller of Public Accounts of ', the State of Texas, and registration with, and initial exchange ' or transfer by, the Paying Agent/Registrar . I��, (b) After registration by the Comptroller of Public , Accounts, delivery of the Series 1988 Bonds shall be made to ', ' the Purchaser under and subject to the general supervision and ' direction of the Mayor of the City, against receipt by the City +��* ', of all amounts due to the City under the terms of sale. ', Section 8 . 03 . Deposit of Proceeds . `��° (a) All amounts received on the Closing Date as accrued interest on the Series 1988 Bonds from the Bond Date to , the Closing Date shall be deposited to the Interest and Sinking Fund. (b) The remaining balance received on the Closing Date shall be deposited to a special construction fund of the City as directed by an authorized officer of the City, such moneys to be dedicated and used solely for the purposes for which the Series 1988 Bonds are being issued as herein provided. ARTICLE IX , PARTICULAR REPRESENTATIONS AND COVENANTS I�, Section 9 . 01 . Payment of Bonds . ��,�,�. �...�k ' 0 8 8 0 D -28- . ` , On or before February 28, 1989 , and semiannually on or before the last day of February and August thereafter while any of the Bonds are outstanding, the City shall make available to the paying agent therefor, in funds which will be immediately �`"°'� available on the next succeeding business day, out of the Interest and Sinking Fund and the Reserve Fund, if necessary, money sufficient to pay such interest on and such principal of �� the Series 1988 Bonds as will accrue or mature or will become due by reason of redemption prior to maturity on each March 1 and � September 1, respectively. The paying agent shall destroy all paid Bonds and shall furnish the City with an appropriate certificate of cancellation or destruction. Section 9 . 02 . Additional Parity Bonds . The City reserves the right to issue additional parity revenue bonds, to be known as Additional Bonds, which when issued and delivered, shall be payable from and secured by a pledge of the Net Revenues of the System, in the same manner and to the same extent as the Series 1988 Bonds and the Previously Issued Bonds, and the Series 1988 Bonds, the Previously Issued Bonds and the Additional Bonds shall be in all respects on a parity. The Additional Bonds may be issued in one or more installments or series; provided, however , that no installment or series of Additional Bonds shall be issued unless : (a) A certificate is executed by the Mayor and City y Secretary to the effect that no default exists in connection with any of the covenants or requirements of the ordinance or ordinances authorizing the issuance of all then outstanding �.,. „ Bonds; • (b) A certificate is executed by the Mayor and City Secretary to the effect that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to be on deposit therein; (c) A certificate is executed by a Certified Public Accountant to the effect that, in hi-s opinion, the Net Earnings of the System either for the last complete fiscal year of the City, or for any twelve consecutive calendar month period ending not more than ninety days prior to the passage of the ordinance authorizing the issuance of such Additional Bonds, were at least 1-1/4 times the average annual principal and interest requirements for all Bonds to be outstanding after the issuance of the Additional Bonds; and the term "Net Earnings, " as used in this subparagraph (c) , shall mean the Net Revenues of the System, but excluding and not deducting any charges or disbursements which under standard accounting practice should be charged to capital expenditures; ��, 0 8 S 0 D -29- r , (d) The Additional Bonds are scheduled to mature only on March 1 or September 1, and the interest thereon is scheduled to be paid on March 1 and September 1; and (e) The ordinance authorizing the issuance of such �� installment or series of Additional Bonds provides that the aggregate amount to be accumulated in the Reserve Fund shall be increased to an amount equal to the average annual principal �, ,� and interest requirements of all Bonds to be outstanding after the . issuance of said Additional Bonds . Such additional amount shall be so accumulated within sixty months from the date of the Additional Bonds . Section 9 . 03 . Maintenance and Operation; Insurance. While any of the Bonds are outstanding, the City , covenants and agrees to maintain the System in good condition ', and operate the same in an efficient manner and at reasonable ' expense and to maintain insurance on the System, for the ', benefit of the holder or holders of the Bonds, of a kind and in , an amount which usually would be carried by private companies ' engaged in a similar type of business . Nothing in this Ordinance shall be construed as requiring the City to expend , any funds which are derived from sources other than the System, ' but nothing herein shall be construed as preventing the City ' from doing so . Section 9 . 04 . Records; Accounts; Accountinq Re orts . (a) The City shall keep proper books of records and ""�' accounts, separate from all other records and accounts of the City, in which complete and correct entries shall be made of �,� all transactions relating to the System, and shall have said books audited once each fiscal year by a Certified Public �, Accountant . The City agrees to operate the System and keep its i bQoks of records and accounts pertaining thereto on the basis of its current fiscal year; provided, however, that the City Council may change such fiscal year by ordinance duly passed, if such change is deemed necessary by the City Council . ' (b) Within ninety days after the close of each fiscal year hereafter, the City will furnish, without cost, to any . ,� holder of any outstanding Bonds who may so request, a signed or certified copy of a report by a Certified Public Accountant, covering the next preceding fiscal year, showing the following information: ( i) A detailed statement of all gross revenues of the System and all expenses of operation and , maintenance thereof for such fiscal year; ,�� 0 8 8 0 D -30- � . , (ii) Balance sheet as of the end of such fiscal ' year; ( iii) Accountant ' s comment regarding the manner ��x� in which the City has complied with the requirements of this Ordinance and his recommendation, if any, for any changes or improvements in the operation of the System; �"'� (iv) List of insurance policies in force at the . end of such fiscal year, showing, as to each policy, the risk covered, the amount of the policy, the name of the insurer, and the expiration date; (v) The number of properties connected with the System, and the gross revenues of the System for such fiscal year; r (vi) The number of unmetered customers of the System at the end of such fiscal year; (vii) The number of gallons of water through the master meter, the number of gallons of water billed, an estimate of the number of gallons of water used for flushing mains and for fires, and the number of unaccounted gallons of water; and (viii) The total annual billings of the System, and the average monthly bills per customer . ' (c) Any holder or holders of any Bonds shall have the right at all reasonable times to inspect the System and all records, accounts and data of the City relating thereto. ��,.� , . Section 9 . 05 . Discharge. (a) Any Bond shall be deemed to be paid, retired, and no longer outstanding within the meaning of this Ordinance when payment of the principal and interest thereon to its due date (whether such due date be by reason of maturity, redemption or otherwise) either ( i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption) , or (ii) shall have been � _ _ _ provided by irrevocably depositing with, or making available to, a paying agent therefor, in trust and irrevocably set aside exclusively for such payment, (A) money sufficient to make such payments, or (B) Government Obligations, as hereinafter defined in this Section, certified by an independent public accounting firm of national reputation to mature as to principal and interest in such amounts and� at such times as will insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of such paying agent pertaining to the Bonds with �, ;� 0 8 8 0 D -31- f � respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of such paying agent . At such times as a Bond shall be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or entitled to the benefit of this Ordinance or a lien on or ,�.�: pledge of the Net Revenues , and shall be entitled to payment solely from such money or Government Obligations . (b) That money so deposited with a paying agent may, " `"' , at .the direction of the City, be invested in Government Obligations maturing in the amounts and times as hereinbefore set forth, and all income from all Government Obligations in the hands of the paying agent pursuant to this Section which is not required for the payment of the Bonds, and interest thereon, with respect to which such money has been deposited, ', _ shall be delivered to the City or deposited as directed by the �, City. I� (c) That the City covenants that no deposit will be made or accepted under subsection (a) and no use made of any '� such deposit which would cause the Bonds to be treated as !, "arbitrage bonds" within the meaning of Section 148 of the Code. II, �� (d) That, for the purpose of this Section, the term , Government Obligations shall mean direct obligations of the 'I United States of America, including obligations, the principal and interest of which are unconditionally guaranteed by the United States of America, which may be United States Treasury � obligations such as its State and Local Government Series, and ' which may be in book-entry form. .»,� ', Section 9 . 06 . Bonds as Neqotiable Instruments . � � � ' Each of the Series 1988 Bonds shall be deemed and ', construed to be an "Investment Security" and, as such, a ' negotiable instrument, within the meaning of Article 8 of the Texas Uniform Commercial Code. � Section 9 . 07 . No-Arbitraqe; Rebate. I (a) The City hereby represents that the proceeds of ', the Series 1988 Bonds are needed at this time to finance the ', costs of the capital improvements for which the Series 1988 , Bonds are issued (as specified in this Ordinance) ; that based ', on current facts, estimates, and circumstances, it is , reasonably expected that final disbursement of the proceeds of I the Series 1988 Bonds will occur within three years after the ', Closing Date, that substantial binding obligations to commence ', such improvements will be incurred within six months after such ' date, and that the construction or acquisition of the , improvements will proceed with due diligence to completion; that it is not reasonably expected that the proceeds of the � �, 0 8 8 0 D ' -32- f , Series 1988 Bonds or money deposited in the Interest and Sinking Fund, the Revenue Fund or the Reserve Fund will be used or invested in a manner that would cause the Series 1988 Bonds to be or become "arbitrage bonds, " within the meaning of ��"" Section 148 of the Code. (b) The City will not take any action or fail to take � any action with respect to the investment of the proceeds of the Series 1988 Bonds or any other funds of the City, including amounts received from the investment of any of the foregoing, that, based upon the facts, estimates and circumstances known on the Closing Date, would result in constituting the Series 1988 Bonds "arbitrage bonds, " within the meaning of such Section 148 of the Code, and the City will not take any deliberate action motivated by arbitrage that would have such result . (c) Proper officers of the City charged with the responsibility of issuing the Series 1988 Bonds are hereby directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the Closing Date and stating whether there are any facts , estimates or circumstances that would materially change the City' s current expectations . (d) The City will comply with the provisions of Section 148(f) of the Code and the applicable United States Treasury regulations promulgated thereunder relating to paying �,,� certain excess earnings of investment of proceeds of the Series 1988 Bonds to the United States of America. � (e) The covenants and representations made or required by this Section are for the benefit of the Owners and may be relied upon by the Owners and bond counsel for the City. (f) The Bonds are hereby designated qualified tax exempt obligations" for purposes of Section 265(b) (3) of the Code. The Bonds are not private activity bonds" as defined in the Code and neither the City nor any of its subordinate entities, if any, reasonably expect to issue in excess of $10 ,000 , 000 aggregate amount of qualified tax exempt obligations during the calendar year in which the Bonds are •• issued, and the City hereby covenants not to designate more than $10 , 000 , 000 aggregate amount of qualified tax exempt obligations during this calendar year in which the Bonds are issued. Section 9 . 08 . Further Covenants . The City hereby further covenants and agrees as follows : ��::� 0 8 8 0 D -33- � r ' f (a) It has the lawful power to pledge the Net Revenues to the payment of the Series 1988 Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas; that the Series 1988 Bonds , Previously Issued ', Bonds and Additional Bonds, when issued, shall be ratably �'� ' secured under sucy pledge in such manner that one Bond shall ' have no preference over any other Bond of said issues . ' �: �_. ' (b) That other than for the payment of the Previously Issued Bonds and the Series 1988 Bonds, Net Revenues of the System are not in any manner now pledged to the payment of any ' debt or obligation of the City or of the System except for any , debt or obligation which has a pledge of the Net Revenues ', subject and subordinate to the pledge of the Net Revenues '�, associated with the Bonds . I, (c) So long as any Series 1988 Bonds, Previously �, Issued Bonds or Additional Bonds or any interest thereon are I outstanding, the City will not sell or encumber the physical iproperties of the System or any substantial part thereof; , provided, however, this covenant shall not be construed to ', prohibit the sale of such machinery or other properties or �, equipment which has become obsolete or otherwise unsuited to � the efficient operation of the System. (d) No free service of the System shall be allowed, �, and should the City or any of its agencies or instrumentalities ', make use of the services and facilities of the System, payment ' of the reasonable value thereof shall be made by the City out ' of funds from sources other than the revenues and income of the �� ' System. (e) That it will comply with all of the terms and �� ', conditions of any and all franchises , permits and !, authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorizations and other requirements applicable to or necessary with respect to the , acquisition, construction, equipment, operation and maintenance ' of the System. I (f) That it will not grant any franchise or permit the ',, acquisition, construction or operation of any competing � facilities which might be used as a substitute for the System' s facilities, and, to the extent that it legally may, the City will prohibit any such competing facilities . II Section 9 . 09 . Amendments . I��, (a) The City acknowledges that the covenants and , obligations of the City herein contained are a material , �� 0 8 8 0 D -34- �, u. f � inducement to the purchase of the Series 1988 Bonds . This Ordinance shall constitute a contract with the Owners of any Series 1988 Bond from time to time, shall be binding on the City, and shall not be amended or repealed by the City so long �,.,�. as any Series 1988 Bond remains outstanding, except as permitted in this Section. (b) The City may, without the consent of or notice to � any Owners of Series 1988 Bond, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Owners of any Series 1988 Bonds, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. (c) In addition, the City may, with the written consent of Owners of Series 1988 Bonds owning a majority in aggregate principal amount of the Series 1988 Bonds then outstanding and affected thereby, amend, add to or rescind any of the provisions of this Ordinance; provided that, without the consent of all Owners of outstanding Series 1988 Bonds, no such amendment , addition or rescission shall ( i) extend the time or times of payment of the principal of, premium, if any, and interest on the Series 1988 Bonds, reduce the principal amount thereof, the redemption price therefor or the rate of interest thereon, or in any other way modify the terms of payment of the principal of , premium, if any, or interest on the Series 1988 Bonds, ( ii) give any preference to any Series 1988 Bond over any other Series 1988 Bond, or ( iii) reduce the aggregate � principal amount of Series 1988 Bonds required for consent to € . any such amendment, addition or rescission. � � ARTICLE X DEFAULT AND REMEDIES Section 10 . 01 . Remedies in Event of Default . (a) In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City ( i) defaults in payments to be made to the Interest and Sinking Fund and Reserve Fund as required by this Ordinance or ( ii) defaults in the observance or performance of any other of the covenants, conditions or obligations set forth in this Ordinance, the Owner of any Bond shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the City Council and other officers of the City to observe and perform any covenant, condition or obligation prescribed in this Ordinance. ��r� 0 8 8 0 D -35- (b) No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be �� exercised from time to time and as often as may be deemed expedient . The specific re�nedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. Notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Series 1988 Bonds shall not be available as a remedy under this Ordinance. ARTICLE XI EMERGENCY Section 11 . 01 . Emerqency. The public importance of this Ordinance and the fact that it is to the best interest of the City to provide funds for the construction of the improvements herein contemplated at the earliest possible date constitutes an emergency and creates a necessity for the immediate preservation of the public peace, property, health and safety of the citizens of the City requiring that this Ordinance be passed and take effect as an emergency measure, and it is accordingly ordained that this Ordinance shall be in full force and effect from and after its passage in accordance with the Charter of the City. �"`�"� FINALLY ADOPTED, APPROVED AND EFFECTIVE this 20th day of September, 1988 . � � Mayor, City of Grapevine, Texas ATTEST: 'ty Secr ta , , City of Grap vine, Texas [SEAL] APPROVED AS TO FORM: � � City Attorney, �� City of Grapevine, Te as oaaoo � -36-