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Home My WebLink AboutORD 1999-020 " ORDINANCE NO. 99—Z� �� AN ORDINANCE OF TI-� CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AUTHORIZING THE DEFEASANCE OF A PORTION OF THE CITY'S WATERWORKS AND SEWER SYSTEM REFUNDING AND IMPROVEMENT REVENUE BONDS, SERIES 1985 FROM SURPLUS FUNDS; CALLING THE DEFEASED BONDS FOR REDEMPTION; DECLARING AN EMERGENCY; AND PROVIDING AN EFFECTIVE DATE: WHEREAS, in accordance with the Constitution and laws of the State of Texas, specifically Article 1111 et seq., Vernon's Annotated Texas Civil Statutes, as amended, the City of Grapevine, Texas (the "City"), has previously issued its waterworks and sewer system revenue bonds payable from a lien on and pledge of the net revenues of the City's combined waterworks and sewer system (the "System"); and WHEREAS, the City has previously issued its $13,132,560 Waterworks and Sewer System Refunding and Improvement Revenue Bonds, Series 1985 (the "Series 1985 Bonds"), dated as of September 1, 1985, pursuant to an ordinance(the"1985 Ordinance"), adopted by the City Council of the City (the "City Council"), and presently outstanding in the aggregate principal amount of$2,012,560; and WHEREAS, the City presently has on hand surplus funds (the "Surplus Funds") of the City's Waterworks and Sewer System Revenue Fund in an amount sufficient to provide for the defeasance of the _ -� Series 1985 Bonds maturing September 1, 1999 and September 1, 2000, such Surplus Funds having accumulated from unanticipated surplus revenues due to strong water sales during the last fiscal year; and ,� WHEREAS, the City Council desires to apply the Surp(us Funds to the defeasance of the Series 1985 Bonds maturing September 1, 1999 and September 1,2000 for the purpose of reducing the total debt service of the City's previously issued waterworks and sewer system revenue bonds; and WHEREAS, pursuant to Article 717k, Vernons Annotated Civil Statutes, as amended ("Article 717k"), the City is autliorized to provide for the payment and discharge of the Series 1985 Bonds maturing September 1, 1999 and September 1, 2000 by depositing with the paying agent for the Series 1985 Bonds an amount sufficient to pay the principal of and interest on the Series 1985 Bonds maturing September 1, 1999 and September 1, 2000 when due,either at maturity or prior redemption; and WHEREAS, Bank One Texas, N.A., Fort Worth, Texas is the paying agent for the Series 1985 Bonds; and WHEREAS, the City Council hereby finds and determines that the application of the Surplus Funds to the defeasance of the Series 1985 Bonds maturing September l, 1999 and September 1, 2000 and tl�e redemption thereof prior to maturity for the purpose of achieving a debt service savings is in the best interests of tl�e citizens of the City; and WHEREAS, the meeting at which this Ordinance is considered is open to the public as required 6.��caro�o 01/28/99:(3:42pm) 'a`�.+,,:;e:a z by law, and the public notice of the time, place and purpose of said meeting was given as required by ��r� Chapter 551,Texas Government Code,as amended; ,,,�, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,TEXAS,THAT: Section 1. Findin�s. The declarations, determinations and findings declared, made and found in the preamble to this Ordinance are hereby adopted, restated and made a part of the operative provisions hereof. Section 2. Aoproval of Use of Surplus Funds for Defeasance of the Series 1985 Bonds Maturin� September 1, 1999 and September 1, 2000. Surpius Funds, in an amount sufficient to pay the principal of and interest on the Series 1985 Bonds maturing September 1, 1999 and September 1, 2000 shall be transferred from the Waterworks and Sewer System Revenue Fund and shall be deposited with and to be held by the Paying Agent for the 1985 Bonds. Section 3. Redemption of Series 1985 Bonds. The Series 1985 Bonds maturing September 1, 1999 and September 1, 2000 are hereby cal(ed for redemption and shall be redeemed prior to their respective stated maturities on April 1, 1999. Following the deposit with the Paying Agent as provided herein, the Series 1985 Bonds maturing September 1, 1999 and September 1, 2000 shall be payable solely from and shall be solely secured by the cash on deposit with the Paying Agent and shall cease to be payable from the"Net Revenues" (as defined in the 1985 Ordinance)of the System. �� Section 4. Notice of Deposit and Redemption. The City's Director of Finance is hereby authorized and directed to cause notice of defeasance and notice of redemption to be given to the owners of the Series 1985 Bonds maturing September 1, 1999 and September 1, 2000 in accordance with the requirements of the 1985 Ordinance and to cause notice of defeasance to be given to each "nationally recognized municipal securities information repository" and each"state information depository," as such terms are defined in Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") pursuant to the City's existing obligations to provide such notices under the Rule. Section 5. Authorization to Execute and Deliver pocuments. All officers of the City are authorized to execute and deliver such agreements, documents, certificates and receipts as may be required to effect the purposes of this Ordinance. Section 6. Declaration of Emergency. The public importance of this Ordinance and the fact that it is in the best interest of the City to provide funds for the purposes set forth herein 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. Section 7. Effective Date. This Ordinance shall be effective upon its approval. e.nc.roi� �'''`.°'" Ol/28/99:(3:42pm) 3 APPROVED AND ADOPTED this 16th day of February, 1999. ,�,.::., �� WILLIAM D.TATE,Mayor ATTEST: " { LIN A HUFF,City� e •etary , APPROVED AS TO FORM: By: " - MATTHEW BOYLE, City Attorney �� 6.1\csrolc _ '�1°"'°y 01l28l99:(3:42pm) MINUTES AND CERTIFICATION PERTAINING TO PASSAGE OF AN ORDINANCE ° I,the undersigned City Secretary of the City of Grapevine,Texas,hereby certify as follows: 1. The City Council of said City convened in Regular Session on February 16, 1999, at the location specified in the public notice of said meeting, and the roll was called of the duly constituted officers and members of said City Council,to-wit: William D.Tate,Mayor Ted R. Ware,Mayor Pro Tem C. Shane Wilbanks, Councilmember Sharron Spencer, Councilmember Clydene Johnson,Councilmember Darlene Freed,Councilmember Roy Stewart,Councilmember and all of said persons were present, except D � thus constituting a quorum. Whereupon, among other business,the following was transacted at said meeting: a written Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AUTHORIZING THE DEFEASANCE OF A PORTION OF THE CITY'S WATERWORKS AND SEWER SYSTEM �„� REFUNDING AND IMPROVEMENT REVENUE BONDS, SERIES 1985 FROM SURPLUS FUNDS; CALLING THE DEFEASED BONDS �� FOR REDEMPTION; DECLARING AN EMERGENCY; AND PROVIDING AN EFFECTIVE DATE was duly introduced for consideration of said City Council. It was then duly moved and seconded that said Ordinance be passed; and, after due discussion, said motion, carrying with it the passage of said Ordinance,prevailed and carried by the following vote: AYES: � NOES: D ABSTENTIONS: �J 2. A true, full and correct copy of the aforesaid Ordinance passed at the meeting described in the above and foregoing paragraphs is attached to and follows this Certificate; said Ordinance has been duly recorded in the official minutes of said City Council;the above and foregoing paragraph is a true and correct exeerpt from said minutes of said meeting pertaining to the passage of said Ordinance; the persons named in the above and foregoing paragraph, at the time of said meeting and the passage of said Ordinance, were the duly chosen, qualified and acting officers and members of said City Council as indicated tllerein; each of said officers and members was duly and sufficiently notified officially and personally in advance, of the time, place and purpose of the aforesaid meeting and that said Ordinance would be introduced and considered for passage at said meeting, and each of said officers and members consented in advance to the holding of said meeting for such purpose; and 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 �`'� Texas Government Code, Section 551.041,as amended. .::�_� • SIGNED AND SEALED this 16th day of February, 1999. _ > ' ,L Ci S retary,City of evine,Texas 6.I�Cuolt OIl28/99:(3:42pm) ,�;,...:.�:y