HomeMy WebLinkAboutORD 1978-073 ORDINANCE N0 . 78-73
. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE ISSUANCE OF
$500, 000 WATERWORKS AND SEWER SYSTEM REVENUE BONDS ,
SERIES 1978 , AND MAKING PROVISION FOR THE SECURITY
AND PAYMENT THEREOF
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WHEREAS, the bonds hereinafter authorized were duly and
favorably voted at an election held in said City on November 23 , 1971 ;
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WHEREAS , at said election, the following were among the
purposes and the amounts of revenue bonds authorized, the amounts
previously issued for said purposes , and the amounts issued pursuant
to this Ordinance, to-wit :
Amount Amount Amount
Purposes Voted Previously Issued Being Issued
Waterworks $450, 000 $250, 000 $200, 000
Sewer System $800, 000 $500, 00 $300 , 000
WHEREAS , 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 Articles 1111 through 1118 , V:A.T.C. S . , and the Charter of the
City;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
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GRAPEVINE, TEXAS :
Section l. That said City' s coupon bonds to be designated
� the "City of Grapevine, Texas , Waterworks and Sewer System Revenue
Bonds , Series 1978, " 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 principal amount of $500 , 000, for the
purpose of providing funds for the following purposes and in the
following amounts , towit : $200, 000 for improving and extending said
City' s Waterworks System; and $300, 000 for improving and extending
said City' s Sewer System.
Section 2. That said bonds shall be dated November 1, 1978 ,
shall be numbered consecutively from One (1) through One Hundred (100) ,
shall be in the denomination of $5, 000 each, and shall mature and be-
come due and payable serially on May 1 in each of the years , and in
the amounts , respectively, as set forth in the following schedule :
BOND NUMBERS YEARS
(all inclusive) (May 1) AMOUNTS
1 - 3 1980 $15 , 000
4 - 6 1981 15 , 000
7 - 9 1982 15 , 000
,,�� 10 - 13 1983 20, 000
14 - 17 1984 20, 000
18 - 21 1985 20, 000
22 - 25 1986 20, 000
� 26 - 30 1987 25 , 000
31 - 35 1988 25 , 000
36 - 40 1989 25 , 000
41 - 46 1990 30, 000
47 - 52 1991 30, 000
53 - 59 1992 35 , 000
60 - 66 1993 35 , 000
67 - 74 1994 40, 000
75 - g2 1995 40, 000
83 - 91 1996 45 , 000
92 - 100 1997 45 , 000
Section 3 . That as to said bonds scheduled to mature on and
after May l, 1993 , said City shall have the right and option to redeem
such bonds prior to �their scheduled maturities , in whole or in part on
May l, 1992 , or on any interest payment date thereafter, for the prin-
cipal amount thereof plus accrued interest to the date fixed for re-
demption.
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 lease 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 pro-
vided 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 re-
garded as being outstanding except for the purpose of receiving the
funds so provided for such payment.
Section 4. That said bonds shall bear interest, from their
date until maturity or earlier redemption, at the following rates :
Bonds maturing in each of the years 1980-1991 . . . . 6 . S�ip;
Bonds maturing in the year 1992 . . . . . . . . . . . . . . . . . . 6 . 15%;
Bonds maturing in the year 1993 . . . . . . . . . . . . . . . . . . 6 . lOQ/a;
Bonds maturing in the year 1994. . . . . . . . . . . . . . . . . . 6 . 20'/0;
� Bonds maturing in the year 1995 . . . . . . . . . . . . . . . . . . 6. 30%;
Bonds maturing in the year 1996. . . . . . . . . . . . . . . . . . 6.40%;
Bonds maturing in the year 1997 . . . . . . . . . . . . . . . . . . 6 . 50Q/a;
with said interest to be evidenced by coupons payable on May l, 1979 ,
and semi-annually therea€ter on each November 1 and May 1.
Section 5 . 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 pre-
sentation 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. That each of said bonds and interest coupons
shall be signed• by the imprinted or lithographed facsimile signature
of the Mayor of said City and countersigned by the imprinted or lith-
ographed facsimile signature of the City Secretary of said City, and
the official seal of said City shall be impressed or printed, or
lithographed on each of 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 interest coupons to be attached to said bonds , shall be, re-
�,,, spectively, substantially as follows :
(FORM OF BOND)
N0. $5 , 000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF GRAPEVINE, TEXAS
� WATERWORKS AND SEWER SYSTEM REVENUE BOND
SERIES 1978
� On May 1 , 19 , 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 May l, 1979 ,
and semi-annually thereafter on each November 1 and May 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 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 November l,
1978 , issued in the principal amount of $500, 000 for the purpose of
providing funds in the amount of $200, 000 for improving and extending
the City' s Waterworks System and $300, 000 for improving and extending
,.-.
the City' s Sewer System.
The bonds of this Series scheduled to mature on and after
;� May l, 1993 , may be redeemed prior to their scheduled maturities in
whole or in part at the option of the said City, on May l, 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 pub-
lication 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 re-
demption. If the written notice of redemption is given and published,
and if due provision for such payment is made, all as provided above,
the bonds , which are to be so redeemed, thereby automatically shall
be redeemed prior to maturity, and they shall not bear interest after
the date fixed for redemption, and shall not be regarded as being out-
standing 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 and has been authorized by a majority of the properly qualified
�,:�,
electors of said City voting at an election held for that purpose
within said City; that all acts , conditions and things required to
exist precedent to and in the issuance of this bond to render the
same lawful and valid have been properly done, have happened and been
performed in regular and due time, form and manner as required by
the Constitution and laws of the State of Texas , and the ordinance
authorizing this Series of bonds , and that this Series of revenue
bonds does not exceed any constitutional or statutory limitations ,
and that the interest on and principal of this bond, and the Series
of which it is a part, together with other outstanding waterworks and
sewer system revenue bonds of said City, 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 pledged
of the net revenues of said City' s Waterworks and Sewer System.
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 im-
pressed, or printed, or lithographed on this bond.
City Secretary, City o Mayor, City o Grapevine, Texas
Grapevine, Texas
(FORM OF REGISTRATION CERTIFICATE)
COMPTROLLER' S REGISTRATION CERTIFICATE: REGISTER N0 .
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
Comptro er o Pu ic Accounts o
the State of Texas
"��' (FORM OF INTEREST COUPON)
�, N0 . $
ON l, 19
The City of Grapevine, in the County of Tarrant, State of Texas ,
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, unless due provision has been made
for the redemption prior to maturity of the bonds to which this
interest coupon appertains , upon presentation and surrender of this
interest coupon, at the First National Bank in Dallas , Dallas , Texas ,
said amount being interest due that day on the bond bearing the �
number hereinafter designated, of that issue of City of Grapevine, �
Texas , Waterworks and Sewer System Revenue Bonds , Series 1978 , dated
November l, 1978. Bond No.
City Secretary Mayor
Section 8 . (a) That the term "Outstanding Bonds ," as used
herein, shall mean the outstanding bonds of the following issues of
� said City :
i. Waterworks and Sewer System Revenue Bonds , Series 1954,
authorized by ordinance dated January 15 , 1954;
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ii. Waterworks and Sewer System Revenue Bonds , Series 1959 ,
authorized by ordinance dated June 24, 1959 ;
iii. Waterworks and Sewer System Revenue Bonds , Series 1968 ,
authorized by ordinance dated February 26 , 1968 ;
iv. Waterworks and Sewer System Revenue Bonds , Series 1969 ,
authorized by ordinance dated November 18 , 1969 ;
v. Waterworks and Sewer System Revenue Bonds , Series 1971 ,
authorized by ordinance dated March 16 , 1971 ; and
vi. Waterworks and Sewer System Revenue Bonds , Series 1973 ,
authorized by ordinance dated March 20, 1973 .
b. That the bonds authorized hereby are parity "Additional
Bonds" as defined in the ordinance passed April 27 , 1951 , authorizing
the issuance, sale and delivery of said City' s Waterworks and Sewer
System Revenue Refunding Bonds, Series 1950.
c. That Sections 13 through 19 , and Sections 21 through 26 ,
of the aforesaid Ordinance dated April 27 , 1951, and Sections 13 and
� 14 of the Ordinance dated January 15 , 1954, which authorized the
issuance of the Waterworks and Sewer System Revenue Bonds , Series 1954,
are adopted by reference and shall be applicable to the bonds autho-
� rized to be issued by this Ordinance for all purposes , except to the
extent hereinafter specifically modified and supplemented. The bonds
authorized to be issued by this Ordinance and the Outstanding Bonds
are and shall be payable from, and secured by a first lien on and
pledge of, the Net Revenues of said City' s Waterworks and Sewer
System, and all of said obligations shall be on a parity and of equal
dignity in all respects.
Section 9. That, in addition to all other amounts required
by the ordinances , respectively, authorizing the Outstanding Bonds ,
there shall be deposited into the Interest and Sinking Fund, created
for the beneift of said Outstanding Bonds and all Additonal Bonds , the
following:
a. such amounts , in approximately equal monthly install-
ments , deposited on or before the lOth day of each
month hereafter, commencing on or before December lOth,
1978, as will be sufficient to pay the interest sched-
uled to come due on the bonds authorized by this
Ordinance on the next interest payment date; and
b. such amounts , in approximately equal monthly install-
��' ments , deposited on or before the lOth day of each
month hereafter, commencing on or before April lOth,
,,�,. 1979, as will be sufficient to pay the next maturing
principal of the bonds authorized by this Ordinance.
Section 10. That in addition to all other amounts required
by the ordinances , respectively, authorizing the Outstanding Bonds ,
there shall be deposited into the Reserve Fund, created for the benefit
of said Outstanding Bonds and all Additional Bonds , on or before
December 10, 1978, and on the lOth day of each month thereafter, the
amount of $641. 00 until there has been accumulated the aggregate
amount on � , +53. 00 in said Reserve Fund. Thereafter, said aggre-
gate amount sha e maintained in said Reserve Fund, for the benefit
of the Outstanding Bonds , the bonds authorized by this Ordinance, and
all other Additional Bonds , in accordance with the procedures , as
herein modified and supplemented, set forth in the ordinances , res-
pectively, authorizing the Outstanding Bonds .
Section 11. That the bonds authorized by the Ordinance are
and shall be special obligations of said City, and the holders thereof
shall never have the right to demand payment of said obligations out
of any funds raised or to be raised by taxation.
Section 12. That the Mayor of said City is hereby autho-
'"�" rized 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
act for said Comptroller) shall manually sign the Comptroller ' s
Registration Certificate printed and endorsed on each of said bonds ,
and the seal of the said Comptroller shall be impressed or placed in
facsimile on each of said bonds .
Section 13. That all of said bonds , being numbered One (1)
through One Hundred (100) , both inclusive, are hereby sold in accor-
dance with law and shall be delivered to First Southwest Com an ,
Dallas , Texas for the principal amount thereof p us accrued interest
to the ate of delivery, plus a premium of $
Section 14. That the purchaser ' s obligation to accept
delivery of the bonds herein authorized is subject to their being
furnished the final opinion of Messrs . Hutchison, Price, Boyle, &
Brooks , Attorneys at Law, Dallas , Texas , such opinion approving such
bonds as to their validity, said opinion to be dated and delivered as
� of the date of delivery and payment for 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 cer-
tificate pertaining thereto executed by facsimile signature of the
City Secretary of the City is hereby approved and authorized.
Section 15. That the City certifies that based on facts ,
estimates and circumstances expected to exist on the date of the issue
of the bonds, it is not reasonable to anticipate that the proceeds
thereof will be used in a manner which would cause them to be "arbi-
trage bonds" within the meaning of Section 103 (c) of the Internal
Revenue Code of 1954, as amended, or regulations thereunder applicable
thereto, and the officers charged with such responsibilities in the
issuance of bonds are authorized and directed to make, execute and
deliver certifications as to facts , estimates and circumstances in
existence as of the date of the issue of said bonds and stating
whether there are any facts , estimates or circumstances which would
materially change the City' s present expectations . Additionally, the
City covenants that so long as the bonds are outstanding it will
diligently comply with the requirements of Section 103 (c) of the
Internal Revenue Code of 1954, as amended, or regulations thereunder
�°� applicable thereto, so that the bonds will not at any time become
arbitrage bonds.
'�" Section 16. That the form and substance of the Official
Statement, dated November l, 1978 , and presented to and considered at
this meeting, is hereby in all respects approved and adopted by the
City Council, and the Mayor and the City Secretary are hereby authorized
and directed to execute the same and deliver appropriate numbers of
executed copies thereof to the purchasers of the bonds herein authorized
and described therein. Said Official Statement as thus approved,
executed and delivered with such appropriate variations as shall be
approved by the City Manager and the purchasers of said bonds shall be
used by said purchasers in the public offering and sale of said bonds .
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 i7 . That is hereby officially found and determined
that a case of emergency or urgent public necessity exists for the
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 re-
quired 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 .
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PASSED AND APPROVED this the 7�h day of November, 1978 .
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Mayor, City o Grapevine, Texas
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ATTEST :
City ecr City o apevine, '
Texas
APPROVED AS TO FORM AND LEGALITY:
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City Attorney, City o apvine,
Texas
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