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HomeMy WebLinkAboutORD 1980-024 � ORDINANCE NO. S0_2� � � AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE ISSUANCE AND SALE �� �{ OF CITY OF GRAPEVINE, TEXAS, GENERAL OBLIGATION ' BONDS, SERIES 1980, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,895,000, FOR THE PURPOSE OF PROVIDING FUNDS WITH WHICH TO MAKE VARIOUS PERMANENT PUBLIC IMPROVE- MENTS FOR AND WITHIN SAID CITY; PRESCRIBING THE FORM OF SAID BONDS AND THE INTEftEST COUPONS TO BE INITIAL- LY ATTACHED THERETO; LEVYING AND REQUIftING ASSESS- MENT AND COLLECTION OF AN ANNUAL AD VALOREM TAX ON ALL TAXABLE PROPERTY WITHIN THE CITY TO PAY THE INTER.EST ON SAID BONDS AND TO CREATE A SIVKING FUND FOR THE PAYMENT THEREOF AT MATURITY; ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DE- CLARING AN EMERGENCY WHEREAS, the bonds hereinafter authorized were duly and favorably voted as required by the Constitution and laws of the State of Texas, at elections held in said City on the 23rd day of November, 1971, the 25th day of September, 1976, and the 19th day of January, 1980; WHEREAS, at said elections, the following were among the purposes and the amounts of general obligation bonds authorized, the amounts previously �,,�� issued for said purposes pursuant to the voted authorizations indicated, the amounts therefrom being issued pursuant to this Ordinance, and the respective b�iances which remain unissued for the purposes indicated after the issuance of �tie bonds herein authorized, to-wit: Amount Amount Election Amount Previously Being Unissued Purpose Date Voted Issued Issued Balance Fire Station 11-23-71 $200,000 -0- $200,000 -0- Fire S�ation 1-19-80 600,000 -0- 200,000 400,000 Waterworks System 9-25-?6 1,000,000 $300,000 700,000 -0- Municipal Services Center 1-19-80 770,000 -0- 245,000 $525,000 Street Improvements 1-19-80 4,155,000 -0- 550,000 3,605,Q00 and; `VHEREAS, the City Council considers it in the best interest of the City at this time to authorize the issuance and delivery of the amounts thus reflected, all in a single issue, and all in accordance with the laws of the State of Texas and the Charter of the City; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY � �s OF GRAPEVINE, TEXAS: ' Section 1. That said City's coupon bonds to be designated "City of +� Grapevine, Texas, General Obligation Bonds, Series 1980," are hereby authorized ,� to be issued and delivered in accordance with the Constitution and laws of the St�te of Texas and the Charter of the City, said bonds to be issued in the aggregate principal amount of $1,895,000 for the purpose of providing funds with � which to make the. following various permanent public improvements for and - within the City and in the following amounts: �200,000 for constructing and equipping fire station buildings in and for said City; $200,000 for improving, acquiring and equipping fire stations and fire training facilities, including sites therefor, in and for said City; �700,000 for improving and extending said City's waterworks sytem; $245,000 for improving, acquiring, constructing, recon- structing, renovating and equipping a Municipal Services Center for said City; and $550,000 for constructing improvements to the streets in and for said City, including sidewalks, storm drainage improvements, parking facilities, traffic control and maintenance facilities necessary and incidental thereto. Section 2. That said bonds shall be dated June 1, 1980, shall be numbered consecutively from One (1) through Three Hundred Seventy-Nine (379), shall be in the denomination of $5,000 each, and shall mature and become due and payable on June 1 in each of the years, and in the amounts, respectively, as set forth in the following schedule: BONDS YEARS AMOUNTS 1 - 4 1982 �20,000 5 - 9 1983 25,000 10 - 14 1984 25,000 !�� 15 - 19 1985 25,000 ;� 20 - 29 1986 50,000 30 - 39 1987 5Q,000 40 - 54 1988 75,000 55 - 69 1989 75,000 70 - 84 1990 75,000 85 - 109 1991 125,000 110 - 134 1992 125,000 135 - 164 1993 150,000 165 - 194 1994 150,000 195 - 224 1995 I50,000 225 - 259 1996 175,000 260 - 294 1997 175,000 295 - 334 1998 200,000 335 - 379 1999 225,000 Section 3. That as to said Bonds scheduled to mature on and after June 1, 1993, said City shall have the right and option to redeem such Bonds prior to their scheduled maturities, in whole or any part, on June 1, 1992, or on any interest payment date thereafter, for the prin,cipal amount thereof plus accruec3 interest to the date fixed for redemption. At least thirty (30) days prior to any interest payment date upon which .� 1, any of said bonds are to be redeemed, notice of redemption signed by the City Secretary (specifying the serial numbers and amount of bonds to be redeemed) shall be filed with the paying agent and published at least once in eaeh of two ir�� financial publications, one of which shall be 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 n�;�de with the paying agent for the payment of the principal amount of the bond, to be so redeemed, plus accrued interest "� thereon to the date fixed for redempt ion. If the notice of redemption is filed and i published, and if due provision for p:iyment is made, all as provided above, the �:� bonds, which are to be so redeemeci, thereby automatically shall be redeemed � prior to maturity, and they shall i�c�t bear interest after the date fixed for redemption, and shall not be regzircled as being outstanding except for the purpose of receiving the funds so prc�vided for such payment. Section 4. That said bonds �hall bear interest from their date, until maturity or redemption, at the follc�wing rates per annum: Bonds maturing in each of tt�r. years 1982 through 1985 8.75%; Bonds maturing in each of ttie years 1986 and 1987 8.50%; Bonds maturing in the year 1�)8g 8.00%; Bonds maturing in the year 198g 6.80%; Bonds maturing in the year 1990 6.90%: Bonds maturing in the year 1991 7.00�; , �' Bonds maturing in the year 1�)92 7.10%; � Bonds maturing in the year 1�)93 7.20%; Bonds maturing in the year 1994 7.30%; Bonds maturing in the year 1�)95 7.40%; Bonds maturing in the year 1�196 7.50%; Bonds maturing in the year 1997 7.60%; Bonds maturing in the year 1;)gg 7.70%; Bonds maturing in the year l�lgg 7.75%, with said interest to be evidenced by interest coupons payable on June 1, 1981, and semiannually thereafter on eacli December 1 and June 1. Section 5. That the princiE>;�i of and interest on said bonds shall be payable to bearer, in lawful money c�f the United States of America, without exchange or collection charges to tl��� bearer, upon presentation and surrender of proper bond or interest coupon, at 't'I�e Fort Worth National Bank, Fort Worth, �_ , Texas, which placr, shall be the piiyir�g agent for said bonds. I Section 6. That each of stiici tx�nds and interest coupons shall be signed �3�, by the imprintecl �n• lithographed fiicwimile� signature of the Mayor of said City --- and countersignc�� t�y the imprinte�i ��r lithographed facsimile signature of the City Secrei;iry of '.+iid C'ity, and th�� cafficial seal of said City shall be impressed or printed, or 1ith��K�•��trhed on eeirh ��f said bonds. Section 7. That the form of said bonds, including the form of ,«� Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each bond, and the form of the interest '� coupons to be attached to said bonds, shall be, respectively, substantially as �"" follows: (FORM OF BOND) NO. � UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF TARRANT CITY OF GRAPEVINE GENERAL OBLIGATION BOND SERIES 1980 On June 1, , the City of Grapevine, in the County of Tarrant, State of Texas, promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of % per annum, evidenced by interest coupons payable on June 1, 1981, and semiannually thereafter on each December 1 and June 1 while this bond is outstanding. The � principal of this bond and the interest coupons attached hereto shall be payable , to bearer, in lawful 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 Fort Worth National Bank, Fort Worth, Texas, which place shall be the paying agent for this issue of bonds. This bond is one of a Series of coupon bonds dated June l, 1980, issued in the principal amount of $1,895,000 for the purpose of providing funds with which to make the following various permanent public improvements for and within the City and in the following amounts: $200,000 for constructing and equipping fire station buildings in and for said City; $200,000 for improving, acquiring and equipping fire stations and fire training facilities, including sites therefor, in and for said City; $700,000 for improving and extending said City's waterworks system; $245,000 for improving, acquiring, constructing, recon- structing, renovating and equipping a Municipal Services Center for said City; and �550,000 for constructing improvements to the streets in and for said City, including sidewalks, storm drainage improvements, parking facilities, traffic control and maintenance facilities necessary and incidental thereto. The bonds of this Series scheduled to mature on and after June 1, 1993, may be redeemed prior to their scheduled maturities, in whole or in part, 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 any interest payment date upon !�" ` which any of said bonds are to be redeemed, notice of redemption signed by the ' City Secretary (specifying the serial numbers and amounts of bonds to be redeemed) shall be filed with the paying agent and 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. By the date fixed for any such redemption, due provision shall be made with the paying agent for � the payment af the principal amount of the bonds to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If the notice of redemption is filed and published, and if due provision for payment is made, all �+ as provided above, the bonds, which are to be so redeemed, thereby auto- matically shall be redeemed prior to maturity, and they shall 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 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 this Series of bonds, and of this bond, have been properly done and performed and have happened in regular and due time, form and manner as required by law; that sufficient and proper provision for the levy and collection of taxes has been made which, when collected, shall be appropriated exclusively to the payment of this bond, and the Series of which it is a part, and to the payment of the interest coupons hereto attached as the same shall become due; and that the total indebtedness of said City, including the entire Series of bonds of which this is one, does not exceed any constitutional or statutory limitation. In witness whereof, this bond and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the Mayor of said City and countersigned by the imprinted or lithographed facsimile signature of the City Secretary of said City, and the official seal of said City �� has been duly impressed, or printed, or lithographed on this bond. � ity Secretary, City oi Grapevine, Mayor, City o Grapevine Texas Texas (FORM OF REGISTRATION CERTIFICATE) COMPTROLLERS'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 Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas . [SEAL] (FORM OF INTEREST COUPON) �� NO. � 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 Fort Worth National Bank, Fort �'Vorth, Texas, said amount being interest due that day on the Bond, bearing the number hereinafter designated, of that issue of "City of Grapevine, Texas, General Obligation Bonds, Series 1980," dated June l, 1980. Bond No. City Secretary Mayor Section 8. That to provide for the payment of the debt service requirements on the said bonds, being (a) the interest on said bonds, and (b) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said bonds or interest thereon shall remain outstanding and unpaid, a sufficient tax on each one hundred dollars' valuation of taxable property in said City, adequate to pay such debt service requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the said debt service requirements, and the same shall not be diverted to any other purpose. The taxes so levied shall be paid into a fund known as "City of Grapevine, Texas, General Obligation Bonds, Series 198Q, Interest and Sinking Fund," which is hereby established for the payment of the !�^ obligations herein authorized. The City Council hereby declares and covenants � that it will provide and levy a tax legally and fully sufficient for such bonds, it ` y„� havinb been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding obligations. Section 9. That said bonds are hereby sold in accordance with law and shall be delivered to First City National Bank of Houston, for the principal amount thereof and accrued interest to the date of delivery. Section 10. That the purchaser's obligation to accept delivery of the bonds herein authorized is subject to their being furnished the final opinion of Hutchison Price Boyle & Brooks, Dallas, Texas, Bond Counsel for the City, 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 such 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 thereta executed by facsimile signature of the City Secretary of the City is hereby approved and authorized. Section 11. That the Mayor of the City is hereby authorized to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval "" � by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to �'T�` act for said Comptroller) shall manually sign the Comptrollerts Registration , r Certificate prescribed herein to be printed and endorsed on each bond, and the � seal of said Comptroller shall be impressed, or printed or lithographed on each ' of said bonds. �„ Sectian 12. That the proceeds derived from the sale of the bonds herein authorized shall be utilized promptly for the purposes for which issued; and such proceeds shall be invested only for the terriporary period pending such use; and in no event shall any investments of such proceeds be made in securities of such type or kind or for such period of time or bearing such rates of interest on producing such yield, and no other act or action shall be taken by the City, as will cause said bonds to be treated as "Arbitrage Bonds" within the meaning of' Section 103(d) of the Internal Revenue Code of 1954, as amended, or under any Regulations or ftulings issued thereunder by the Department of the Treasury, or the Internal Revenue Service of the United States. Section 13. That the form and substance of the Official Statement, dated April 1, 1980, and presented to and considered at this meeting, is hereby in all respeets 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 bonds herein authorized and described therein. The City Secretary is hereby authorized and directed to include and maintain a copy of the Official Statement thus approved among the permanent records of this meeting. Section 14. That the public importance of this measure and the fact that it is to the best interest of the City to provide 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, health and safety of the citizens of the City, which requires 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, and that the meeting at which this ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given as required by Article 6252-17, V.T.C.S., as amended. PASSED AND APPROVED this the 29th day of April, 1980. Mayor, y of Grapevine, Texas ATTEST: City S creta , ity of Gra ine, Texas � [SEAL] , APPROVED AS TO LEGALITY: ���� City A ney ORDINANCE NO. g0-25 � AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING AND � DIRECTING THE GIVING OF NOTICE OF INTENT TO ISSUE $3,100,000 CITY OF GRAPEVINE, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE RE- FUNDING AND IMPROVEMENT BONDS, SERIES 19$0 AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPE- VINE, TEXAS: Section 1. That the City Council of the City of Grapevine, Texas, is hereby authorized and directed to issue a notice in substantially the following form: "NOTICE OF INTENTION TO ISSUE $3,100,000 WATERWORKS AND SEWER SYSTEM REVENUE RE- FUNDING AND IMPROVEMENT BONDS, SERIES 1980 THE STATE OF TEXAS COUNTY OF TARRANT CITY OF GRAPEVINE "Notice is hereby given that on the 8th day of May, 1980, at 5:00 p.m., C.D.T., the City Council of the City of Grapevine, Texas, at a Special Meeting �, to be held at the City Hall, 413 Main Street, Grapevine, Texas, the regular meeting place thereof intends to approve an ordinance authorizing the issuance of its "City of Grapevine, Texas, Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 1980" in the aggregate principal amount of $3,100,000 for the �urpose� of refunding previously issued and outstanding revenue bonds of the� City and constructing improvements and extensions to the City's Waterworks System and to the City's Sewer System. Said Bonds will bear interest at a rate not to exceed 10% per annum, will have a maximum maturity date not later than Forty (40) years after their date and will be payable from the Net Revenues of the City's combined �Vaterworks and Sewer System, as authorized by the general laws of the State of Texas, particularly Articles 1111-1118 and Article 717k-3, V.A.T.C.S., as amended and supplemented. "This Notice is given in accordance with law and as directed by the City Council of the City of Grapevine, Texas. GIVEN this 22nd day of April, 1980. /s/ Shirley Armstrong City Secretary �, , Section 2. The foregoing Notice shall be published once a week for two ' consecutive weeks, in a newspaper of general circulation in the City the date of ;�,��» � the first publication of which shall be at least fourteen (14) days prior to the �., date set in the foregoing Notice for passage of the ordinance authorizing said Bonds. "'�" Section 3. That the public importance of this measure and the fact that ' it is to the best interest of the City to provide 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, health and safety of the citizens of the City, which requires 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, and that the meeting at which this ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given as required by Article 6252-17, V.T.C.S., as amended. PASSED AND APPROVED this the 22nd day of April, 1980. Mayor ity of Grapevine, Texas ATTEST: I'�`'" ' � City S retar Ci of Grapev' e, Texas APPROVED AS TO LEGALITY: [SEAL) City Attorney, City of G pevin , Texas � , .�w� , ._ ' OI�,DINA�TCE v0. 80-26 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TE�AS, AWARDING THE � SALE OF THE CITY'S WATERti110RKS AND SEWER SYSTEM REVENUE REFUNDING AND IMPROVE- � MENT BONDS, SERIES 1980; AUTHORIZING AND DIRECTING THE MAYOR AND CITY SECRETARY TO EXECUTE THE OFFICIAL BID FORM EVIDENC- ING THE CITY'S ACCEPTANCE OF THE BID FOR SIICH BONDS; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPE- VINE, TEXAS: Section 1. That the City's $3,100,000 City of Grapevine, Texas, Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 1980 are hereby awarded in accordance with the terms set forth in the Official Bid Form, Notice of Sale and Official Statement to �,nwlPc Winston and Associates , for a purchase price equal to the aggrega et principal amount of such Bonds, plus a premium of $ _�_ and accrued interest from the date of such Bonds to the date of delivery thereof. Section 2. That the Nlayor and City Secretary are hereby authorized and directed to execute the Official Bid Form of such winninb bidder, evidencing the acceptance of such bid in accordance with the terms thereof, the Notice of Sale and the Official Statement. � Section 3. That the public importance of this measure and the fact that it is to the best interest of the City to provide 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, health and safety of the citizens of the City, which requires 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, and that the meeting at which this ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given as required by Article 6252-17, V.T.C.S., as amended. PASSED AND APPROVED this the 29th day of April, 1980. ayor ity of Grapevine, Texas ATTEST: , �``�' City cret , of Grapeyi e, Texas i ; APPROVED AS TO LEGALITY: � iSEAL] City Attorney, City of Gr vine, Texas ORDINANCE NO. g0-27 � AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF i GRAPEVINE, TEXAS, AUTHORIZING THE ISSUANCE OF � �3,100,000 in aggregate principal amount of its "CITY OF GRAPE- VINE, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING AND IMPROVEMENT BONDS, SERIES 1980" for the purpose of refunding the currently outstanding waterworks and sewer system revenue bonds of the City, constrvcting improve- ments and extensions to the City's �Vaterworks System, con- structing improvements and extensions to the City's Sewer System, funding a portion of a debt service reserve fund for such Series 1980 Bonds and paying the costs and expenses in connection with the issuance of such Bonds, all as provided by the General Laws of the State of Texas, particularly Articles 1111 et seq. and 717k, V.A.T.C.S.; prescribing the form of the Series 1980 Bonds and interest coupons; pledging the net revenues of the City's Combined Waterworks and Sewer System to the payment of the principal of and interest on the Series 1980 Bonds; enacting provisions incident and relating to the subject and purposes of this Ordinance; and declaring an emergency WHEREAS, the City has currently outstanding the following waterworks and sewer system revenue bonds: �f°� (a) City of Grapevine, Texas, Waterworks and Sewer System Revenue ' Bonds, Series 1954, dated January 15, 1954, outstanding in the principal amount ,,,�,1 of $40,000; (b) City of Grapevine, Texas, Waterworks and Sewer System Revenue - Bonds, Series 1959, dated July 1, 1959, outstandino in the principal amount of $226,000; (c) City of Grapevine, Texas, Waterworks and Sewer System Revenue Bonds, Series 1968, dated February l, 1968, outstanding in the principal amount of $130,000; (d) City of Gcapevine, Texas, Waterworks and Sewer System Revenue Bonds, Series 1969, dated November 1, 1969, outstanding in the principal amount of $25,000; (e) City of Grapevine, Texas, Waterworks and Sewer System Revenue Bonds, Series 1971, dated April 1, 1971, outstanding in the principal amount of $110,000; (f) City of Grapevine, Texas, Waterworks and Sewer System Revenue Bonds, Series 1973, dated February 1, 1973, outstanding in the principal amount of �690,000; and �:,..� (g) City of Grapevine, Texas, Waterworks and Sewer System evenue Bonds, Series 1978, dated November 1, 1978, outstanding in the principal amount �� of $485,000; (all of such outstanding Series of bonds being hereinafter collectively referred to as the "Prior Bonds"); � WHEREAS, pursuant to the laws of the State of Texas, an election was � held in the City on the 19th day of January, 1980, at which a portion of the herein authorized Bonds were duly and favorably voted in the following amounts and for the following purposes, to-wit: Amount Election Amount Previously Present Balance Purpose Date Voted Issued Issue Unissued Waterworks 1-19-80 �1,465,000 -0- �330,000 $1,135,000 Sewer System 1-19-80 $1,335,000 -0- $350,000 985,000 and; WHEREAS, pursuant to an ordinance heretofore adopted by the City Council, a Notice of Intention to issue waterworks and sewer system revenue bonds of the City was published in a newspaper of general circulation in the City on the 23rd day of April, 1980, and on the 30th day of April, 1980, the date of the first publication of said Notice being at least fourteen (14) days prior to the date set for the passage of this ordinance; WHEREAS, with respect to said Notice, 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 bonds pursuant to said Notice; .�..� ' WHEREAS, the City Council hereby finds and determines that it is in the ' best interests of the City to issue its "City of Grapevine, Texas, �vaterworks and � Sewer System Revenue Refunding and Improvement Bonds, Series 1980," in the aggregate principal amount of $3,100,000 for the purpose of refunding the Prior -- Bonds, constructing improvements and extensions to the City's Waterworks System and the City's Sewer System pursuant to the above described election, constructing improvements and extensions to the City's Waterworks System pursuant to the above mentioned Notice of Intention, funding a portion of the Reserve Fund with respect to the Series 1980 Bonds and paying the costs and expenses in connection with the issuance of such Series 1980 Bonds, all pursuant to the General Laws of the State of Texas, particularly Articles 1111, et seq. and 717k, V.A.T.C.S.; and WHEREAS, the City Council hereby finds and determines that the refunding of the Prior Bonds is necessary and required for the purposes of eliminating certain restrictive covenants and provisions contained in the ordinances authorizina the Prior Bonds, which covenants and provisions require the City to generate excess revenues and, thus, requires the assessment of higher rates and charges than would otherwise be necessary to properly operate the City's combined Waterworks and Sewer System; and in addition, the adequate and economical financing of capital improvements and extensions is urgently needed for the City's Waterworks and Sewer System, and, furthermore, that, as a result of refunding the Prior Bonds, the annual revenues required to be derived "�` � from the operation of the City's Waterworks and Sewer System for the amortization of such indebtedness will be significantly reduced and thereby delay '.�� and substantially reduce rate increases for water and sewer services furnished by the System to the customers thereof; -2- NOW, THEREFOftE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE: � ! Section l. Authorization; Principal Amount; Designation. That the � City's coupon bonds to be designated "City of Grapevine, Texas, Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 1980," are hereby authorized to be issued and delivered in accordance with the Constitution and laws of the State of Texas and the Charter of the City, in the aggregate principal amount of $3,100,000, for the purpose of refundina the Prior Bonds, constructing improvements and extensions to the City's Waterworks System and ' to the City's Sewer System as approved at the election described in the preamble hereof, constructing improvements and extensions to the City's Waterworks System pursuant to the Notice of Intention described in the preamble hereof, funding a portion of a debt service reserve with respect to such Series 1980 Bonds and paying expenses and costs in connection with the issuance of the Series 1980 Bonds, all under and pursuant to the Constitution and the General Laws of the State of Texas, particularly Articles 1111, et seq. and 717k, V.A.T.C.S. Section 2. Date, Maturities. That said bonds shall be dated June 1, 1980, shall be numbered consecutively from One (1) through Six Hundred Twenty (620), shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on June 1 in each of the years, and in the amounts, respectively, as set forth in the following schedule: BONDS YEARS A1�70UNTS �' 1 - 10 1982 �50,000 �; 11 - 20 1983 50,000 2i - 35 1984 75,000 36 - 50 1985 ?5,000 51 - 65 1986 75,000 66 - 80 1987 75,000 81 - 95 1988 - 75,000 96 - 115 1989 100,000 116 - 135 1990 100,000 136 - 155 1991 10�,000 - 156 - 180 1992 I25,000 181 - 205 1993 125,000 206 - 230 1994 125,000 231 - 260 1995 150,000 261 - 290 1996 150,000 291 - 320 1997 150,000 321 - 355 1998 175,000 356 - 390 1999 175,000 391 - 430 2000 200,000 431 - 470 2001 � 200,000 471 - 515 2002 225,000 516 - 565 2003 250,000 ,�,,�� 566 - 620 2004 275,OOU Section 3. Optional Redemption. That as to said bonds scheduled to mature on and after June 1, 1993, said City shall have the right and option to � redeem such bonds prior to their scheduled maturities, in whole or in part on _3_ 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 before the date fixed for any such redemption, �� the City shall cause written notice of such redemption to be given to the paying agent thereof and published at least once in a financial publication published in the City of New York, New York. 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 so 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 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 shall 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. � Section 4. Interest Rates. That said bonds shall bear interest, from their date until maturity or earlier red�mption, at the following rates per annum: Bonds maturing in each of the years 1982 through 1986 9.25%; Bonds maturing in each of the years 1987 through 1991 8•75°�; Bonds maturing in the year 1992 8.35°�; �tt� Bonds maturing in the year 1993 7.80°�; i Bonds maturing in the year 1994 7.90%; Bonds maturing in each of the years 1995 '� and 1996 8.00°h; Bonds maturing in the year 1997 8.10°�; _ Bonds maturing in the year 1998 8.20%; Bonds maturing in the year 1999 8.25°�; Bonds maturing in the year 2000 8.30°.6; Bonds maturing in the year 2001 8.40%; Bonds maturing in each of the years 2002 through 2004 8.50°.6; � with said interest to be evidenced by coupons payable on December l, 1980, and semiannually thereafter on each June 1 and December 1. Section 5. Place of Payment. That the principal of and interest on said bonds shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to bearer, upon presentation and surrender of proper bond or interest coupon, at the First National Bank in Dallas, Dallas, Texas, which place shall be the paying agent for said bonds. Section 6. Execution of Bonds. That each of said bonds and interest coupons shall be signed by the imprinted or lithobraphed facsimile signature of the Mayor of said City and countersigned by the imprinted or lithographed �` " facsimile signature of the City Secretary of said City, and the official seal af said City shall be impressed or printed or lithographed on each of said bonds. ���._..�„ -4- Section 7. Form of Bonds. That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the �`" State of Texas, to be printed and endorsed on each bond, and the form of � interest coupons to be attached to said bonds, shall be, respectively, sutr � stantially as follows: (FORM OF BOND) NO. �5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF TARRANT CITY OF GRAPEVINE, TEXAS WATERWOK.KS AND SEWER SYSTEM REVENUE REFUNDING AND IMPROVEMENT BOND SERIES 1980 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 FIVE THOUSAND DOLLAftS and to pay interest thereon, from the date hereof to the maturity or earlier "'�'" redemption of this bond, at the rate of � per annum, evidenced by ' initially attached interest coupons payable December 1, 1980, and semiannually ,,,� thereafter on each June 1 and December 1. The principal of this bond and the interest coupons attached hereto shall be payable to bearer in lawful 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 issue of bonds. This bond is one of a Series of coupon bonds dated June l, 1980, issued in the principal amount of �3,100,000 for the purpose of refunding the previously issued and outstanding revenue bonds of the City, constructing improvements and extensions to the City's Waterworks System and to the City's Sewer System, funding a portion of the bond reserve fund with respect to such Bonds and paying the costs and expenses in connection with the issuance of such Bonds. The Bonds of this Series scheduled to mature on and after June 1, 1993, may be redeemed prior to their scheduled maturities in whole or in part at the option of the 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 before the date fixed for such redemption, the City shall cause written notice of such redemption to be given to the paying agent thereof and published at least once in a financial publication published in the City of New York, New York. 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, aIl as , _5_ . provided above, the bonds, which are to be so redeemed, thereby automatically �., shall be redeemed prior to maturity, and they shall not bear interest after the date fixed for redemption, and shall not be regarded as being outstandin� except � for the purpose of receiving 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; 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 from a first lien on and pledge of the net revenues of said City's 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 Waterworks and Sewer System. „�ar� 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. `"� In witness whereof, this bond and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the Mayor of said City and countersigned by the imprinted or lithographed facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or printed, or lithographed on this bond. City Secretary, City of Grapevine, Mayor, City of Grapevine, Texas Texas (FORM OF REGISTRATION CERTIFICATE) COMPTROLLER'S ftEGISTRATION 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 Public Accounts of the State of Texas. , Witness my signature and seal this �, � Comptroller of Public Accounts of the State of Texas l �.n=,,:� � -6- (FORM OF INTEREST COUPON) � NO. � ' � 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 theFirst 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 Refunding and Improvement Bonds, Series 1980, dated June 1, 1980. 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 Section 8. Definitions. That for all purposes of this Ordinanee and in particular for clarity with respect to the issuance of the Series 1980 Bonds herein authorized and the pledge and appropriation of revenues therefor, the �.<, following are provided: (a) The term "�dditional Bonds" shall mean the additional parity Bonds which the City reserves the right to issue under the provisions of Section 21 hereof. (b) The term "Bonds" shall mean the Series 1980 Bonds and any Additional Bonds at any time outstanding. (c) The term "1980 Bond Ordinance" shall mean the Ordinance authorizing the Series 1980 Bonds and under the provisions of which all Additional Bonds will be issued. (d) The term "Net Revenues" shall mean all income, revenues, and receipts of every nature derived from and received by virtue of the operation of the System (including interest income and earninas reeeived from the investment of moneys in the special Funds created by this ordinance or ordinances authorizing the issuance of Additional Bonds) after deducting and 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 render adequate service to theCity 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 determinino "Net Revenues." Contractual payments � for the purchase of water or the treatment of sewage shall be a maintenance "'�" and operating expense of theSystem to the extent provided in the contract incurred therefor and as may be authorized by statute. Depreciation shall never be considered as an expense of operation and maintenance. , _7_ (e) The term "Series 1980 Bonds" shall mean the City's waterworks and sewer system revenue bonds, issued pursuant to the provisions of the 1980 Bond �"'""' Ordinance and designated as "City of Grapevine, Texas, Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 1980" in the principal. i�' amount of �3,100,000. (f) The term "System" shall mean the City's existing Waterworks and Sewer System, including all properties (real, personal or mixed and tangible or intangible) owned, operated, maintained, and vested in, the City for the supply, treatment and distribution of treated water for domestic, commercial, industrial and other uses and the collection and treatment of water-carried wastes, and future additions, extensions, replacements and improvements thereto. (g) The terms "Interest and Sinking Fund" shall mean the City of Grapevine, Texas, Waterworks and Sewer System Kevenue Bonds Interest and Sinking Fund created and established pursuant to Section 13 hereof. (h) The term "Reserve Fund" shall mean the City of Grapevine, Texas, Waterworks and Sewer System Revenue Bonds Reserve Fund created and established in Section 14 of the 1980 Bond Ordinance. (j) The term "Reserve Fund ftequirement" means the amount which is equal to the maximum annual principal and interest requirements on the then outstandinb Bonds. (j) The term "fteserve Fund Requirement" means the amount whch is �` equal to the maximum annual principal and interest requirements on the then outstanding Bonds. � Section 9. Pledge. 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 for the ' payment of the Bonds, and the interest thereon, and it is hereby ordained that the payment of the Bonds and the interest thereon shall constitute a first lien upon said Net Revenues. � Section 10. Rates. 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 betterment 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) If the System should become legally liable for any other indebted- ness, the City will fix and maintain rates anc3 collect charges for the services of the System sufficient to discharge such indebtedness. Section 11. Funds. The City covenants and agrees that alI 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 sha11 be established ! and maintained in an official depository bank of the City, so long as any of the ��- Bonds or interest coupons appertaining thereto, are outstanding and unpaid: -8- (a) "City of Grapevine, Texas, Waterworks and Sewer System Revenue Fund," hereinafter called the "Revenue Fund." � (b) "City of Grapevine, Texas, Waterworks and Sewer System Revenue �� Bonds Interest and Sinking Fund," hereinafter calied the "Interest and Sinking F und." (c) "City of Grapevine, Texas, Waterworks and Sewer System Revenue Bonds Reserve Fund," hereinafter called the "Reserve Fund." Section 12. 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 other Funds created by 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 13. Interest and Sinking Fund. There shall be deposited into the Interest and Sinking Fund the following: (a) such amounts, in equal monthly installments, made on or before the lst day of each month, commencing June 1, 1980, as will be sufficient to pay the interest scheduled to come due on the Bonds on the next interest payment � � date; and ' (b) such amounts, in equal monthly installments, made on or before the � lst day of each month, commencing December 1, 1981, as will be sufficient to pay the next maturing principal of the 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 comes due. Section 14. Reserve Fund. The City covenants that, simultaneously with the delivery of the Series 1980 Bonds the amount of money on deposit in the reserve fund with respect to the Prior Bonds shall be transferred to the Reserve Fund hereby established, together with an amount from the proceeds of the Series 1980 Bonds, that will be equal to the fteserve Fund Requirement. So long as the funds on deposit in the Reserve Fund 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 tb not less than 1/60th of the total amount then reqtiired to be maintained therein until the R.eserve 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. -9- Section 15. Payment of Bonds. That on or before May 31, 1981, and semiannually on or be ore the last day of May and November 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 bonds as will accrue or mature or come due by reason of redemption prior to maturity on each June 1 and December 1, respectively. The paying agent shall destroy all paid bonds, and the coupons appertaining thereto, and furnish the City with an appropriate certificate of cancellation or destruction. S�=ction 16. Investment of Certain Funds. That 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 hereinafter described, or 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 Attorney General of the United States, are backed 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 Laan Mortgage Association, Small Business Administration, Federal Housing Associ- ation, or Participation Certificates in the Federal Assets Financing Trust; +�-° provided that all such deposits and investments shall be made in such a manner �' that money required to be expended from a Fund will be available at the proper �, time or times. 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 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. Section 17. Transfer of Funds from Prior Bonds. The funds on hand in the interest and sinking fund and the reserve fund, respectively, pertaining to the Prior Bonds being refunded hereby shall be transferred and credited to the Interest and Sinking Fund and Reserve Fund created above for the Bonds. Section 18. Deficiencies in Funds. If in any month the City shall fail to deposit into any Fund created by 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 pa�ments shall be in addition ta the amounts otherwise required to be paid into said Funds 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 19. Excess Revenues. The Net Revenues of the System in excess of those necessary to establish and maintain the Funds as required in this i�.-� Ordinance, or as hereafter may be required in connection with the issuance of Additional Bonds, may be used for any lawful purpose. -10- Section 20. Security or Funds. All Funds created by this Ordinance shall be secured in the manner and to the ullest extent permitted or required by law �'" for the security af public funds, and such Funds shall be used aniy for the purposes and in the manner permitted or required oy this Ordinance. Section 21. Additional 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 1980 Bonds; and the Series 1980 Bonds and all Additional Bonds shall be in all respects on a parity and of equal dinity. 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 b'Iayor and City Secretary of said City 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 of said City to the effect that the Interest and Sinkina Fund and the Reserve Fund each contain the amount then required to be on deposit therein; (c) A certificate is executed by a Certified Public Accountant to the effect that, in his 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 Ieast 1-1/4 times the �,. ma�imum 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; (d) The Additional Bonds are scheduled to mature only on June 1, and the interest thereon is scheduled to be paid on June 1 and December 1; (e) The ordinance authorizing the issuance of such installment or series of Additional Bonds provides that the aggregate amount to be accumulated and maintained in the Reserve Fund shall be increased to an amount equal to the maximum annual principal and interest requirements of all Bonds to be outstanding after the issuance of said Additional Bonds. Sueh additional amount shall be so accumulated within sixty months from the date of the Additional Bonds. � Section 22. 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. -11- Section 23. Accounts and Fiscal Year. The City shall keep proper books of records and accounts, separate rom 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 books 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 ardinance duly passed, if such change is deemed necessary by the City CounciL Section 24. Accounting Reports. 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: (a) A detailed statement of all gross revenues of the System and all expenses of operation and maintenance thereof for said fiscal year; (b) Balance sheet as of the end of the fiscal year; (c) Accountant's comment regarding the manner 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; (d) List of insurance policies in force at the end of said fiscal year, � ° showing, as to each policy, the risk covered, the amount of the policy, the name �, of the insurer, and the expiration date; � (e) The number of proQerties connected with the System, and the gross revenues of said System for said fiscal year; (f) The number of unmetered customers of the System at the end of said fiscal year; (g) 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; (h) The total annual billings of the System, and the average monthly bills per customer. Section 25. Inspection. 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 26. Special Covenants. The City further covenants as follows: (a) That other than for the payment of the Bonds, the revenue and "�'""' income of the System have not in any manner been pledged, except as any such pledge is secondary and subordinate to the first lien created herein, to the payment of any debt or obligation of the City or of the System; �,; ., . -12- (b) That while any of the Bonds are outstanding, the City will not sell or encumber the System or any substantial part thereof, and that, with ti�e �-« exeeption of the Additional Bonds expressly permitted by this Ordinance to be issued, it will not encumber the revenues and income of the System, unless such encumbrance is made junior and subordinate in all respects to the Bonds and all liens and pledges in connection therewith; (c) That 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; (d� That to the extent it legally may, the City further covenants and agrees that while any of the Bonds are outstanding, no franehise shall be granted for the installation or operation of any competing system; and the operation of any such competing system is hereby prohibited. Section 27. Bonds are Special Obligations. The Series 1980 Bonds and Additional Bonds shall be special obligations of the City payable from the pledged Net Revenues, and the holder or holders hereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxation. Section 28. Approval and Registration of Bonds. That the Mayor of said City is hereby authorized to have control o said Bonds and all necessary records and proceedings pertaining to said Bonds pending their delivery and their ���a investigation, examination, and approval by the Attorney General of the State of � Texas. Upon registration of said 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 prescribed herein to be printed and endorsed on each Bond, and the seal of said Comptroller shall be impressed, or printed, or lithographed on each of said Bonds. Section 29. Arbitrage. That the proceeds derived from the sale of the Bonds herein authorized shall be utilized promptly for the purposes for which issued; and such proceeds shall be invested only for the temporary period pending such use; and in no event shall any investments of such proceeds be mad� in securities of such type or kind or for such period of time or bearing such rates of interest or producing such yield, and no other act or action shall be taken by tne City, as will cause said Bonds to be treated as "Arbitrage Bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or under any Regulations or Rulings issued thereunder by the Department of the Treasury or the Internal Revenue Service of the United States. Section 30. Legal Opinion. Printing of a true and correct copy of the final approving opinion of l�7essrs. Hutchison Price Boyle & Brooks, Dallas, Texas, Bond Counsel for the City, on the reverse side of each Bond, with appropriate certificate pertaininb thereto executed by the facsimile signature of the City Secretary of the City, is hereby approved and authorized. "�° ' Section 31. Sale of Bonds. That the Series 1980 Bonds are hereby sold and shall be delivered to Rowles, VVinston Div. Cowen & Co. and Associates in accordance with the proposal of said purchasers heretofore accepted and �,.. � approved by the City. -13- Section 32. Disposition of Bond Proceeds. The proceeds from the sale of tt�e Series I980 Bonds, shall be used to make the following deposits: �, (a) To the Interest and Sinking Fund, the aecrued interest received �� from the sale of the Series 1980 Bonds. (b) To the First National Bank in Dallas, Dallas, Texas, as paying agent for the Prior Bonds and Escrowee for the City of Grapevine, Texas, Water and Sewer System Revenue Bonds, Series 1954, 1959, 1968, 1969, 1971, 1973 and 1978 Escrow Fund created and established with said bank in accordance with a certain Escrow Agreement, dated May 1, 1980, the amount of $1,467,000 which is an amount sufficient to provide for the payment of the principal of and interest on the Prior Bonds and which amount shall be used for such purposes in accordance �vith the terms of such Agreement. (c) To the Reserve Fund, in accordance with the requirements of the 1980 Ordinance, �203,000 which amount when added to the funds transferred from the reserve fund with respect to the Prior Bonds will equal the Reserve Fund Requirement. (d) To the City of Grapevine Waterworks Construction Fund, $1,018,367.19 which shall be used to make improvements and extensions to the City's Waterworks System. (e) To the City of Grapevine Sanitary Sewer Construction Fund, $350,000, which shall be used to make improvements and extensions to the City's I��� Sanitary Sewer System. �, (f) To the City, $61,632.81, with which to pay the costs and expenses pertaining to the issuance of the Bonds. Section 33. Escrow Agreement. The City Council hereby approves and authorizes the execution of the "SQecial Escrow Fund Agreement't between the City and the First National Bank in Dallas, Dallas, Texas (substantially in the form attached hereto as Exhibit A, which is hereby incorporated by reference and made a part of this ordinance for all purposes) providing for the deposit of part of the foregoing proceeds with said Bank, and governing the use thereof in connection with the refunding, discharging and retiring of the Prior Bonds. Section 34. Remedy in Event of Default. 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 (a) defaults in payments to be made to the Interest and Sinkino Fund or the Reserve Fund as required by this ordinance or (b) defaults in the observance or performance of any other of the covenants, conditions or obligations set forth in this ordinance, the holder or holdersof any of the bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction, compelling and r`equiring the City and its officers to observe and perform any covenant, condition or obligation prescribed in this ordinance. No delay or omission to exercise any right or �ower aceruing upon any default shall impair any such right or povuer, or shall be construed to be a ""�"°� waiver of any such default or acquiescence therein, and every such right and � power may be exereised from time to time and as often as may be deemed expedient. ���.:.:'�.Y -14- , The specific remedy herein provided shall be cumulative of all other existing remedies and the specification of such remedy shall not be deemed to �.., be exclusive. � Section 35. Final Deposits - Governmental Obligations. (a) That any bond of this series 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 for by irrevocably depositing with, or making available to, a paying agent therefor, in trust and irrevocably set aside exclusively for such payment, (1) money sufficient to make such payment or (2) 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 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 time 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 and pledge of the Net Revenues, and shall be entitled to payment solely from such money or Government Obligations. (b) That moneys 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 hereinbsfore 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 turned over to the City or deposited as directed by the City. (c) That the City .covenants that no deposit will be made or accepted under paragraph (a)(ii) of this Section and no use made of any _such deposit which would cause the bonds to be treated as arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended. (d) That, for the purpose of this Section, the term "Government Obligations" shall mean direct obligations of the United States of America, including obligations the principal of and interest on 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. ' (e) That notwithstanding any other provisions of this ordinance, all money or Government Obligations set aside �nd held in trust pursuant to the provisions of this Section for the payment of bonds and interest thereon, shall be applied to and used for the payment of such bonds and interest thereon and the income on such money or Government Oblligations shall not be considered +�'� to be income of the System under this ordinance. ? Section 36. Emergency. That it is hereby officially found and deter- mined that a case of emergency or urgent public necessity exists for the �Yt*•, :*r ' . � -15- �, . K immediate preservation of the public peace, health and public welfare of the citizens of the City, which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the � proceeds from the sale of said bonds are required as soon as possible and without � delay for necessary and urgently needed public improvements; and that said ',�„ meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Article 6252-17, V.A.T.C.S. PASSED AND APPROVED this 8th day of May, 1980. -�� Mayor, City of Grapevine, Texas ATTEST: City S cretar C o Grapevi , Texas APPROVED AS TO FORM AND LEGALITY: [SEAL] �� � Cit of Gr evine, Texas City Attorney, y � �, : � � .�E, �