HomeMy WebLinkAbout021024 ORD - 11/15/1990THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
the
the
On this the 15th day of November, 1990, the City Council of
City of Corpus Christi, Texas convened in Special Meeting, with
following members of said Council present, to -wit:
Betty Turner
Clif Moss,
Frank Schwing,
Leo Guerrero,
Edward A. Martin,
Joe McComb,
Tom Hunt,
Mary Rhodes,
Cezar Galindo,
Juan Garza,
Hal George
Jorge G. Garza,
Armando Chapa,
with the following absent:
constituting a quorum, at which time the following among other
business was transacted:
Mayor
Councilmembers,
City Manager,
City Attorney,
Director of Finance,
City Secretary
City Manager Juan Garza presented for the consideration of the
Council an ordinance. The ordinance was read by the City
Secretary. The Mayor presented to the Council a communication in
writing pertaining to said proposed ordinance, as follows:
"Corpus Christi, Texas
November 15, 1990
"TO THE CITY COUNCIL
Corpus Christi, Texas
Councilmembers:
"The public importance and pressing need for the issuance of
bonds to facilitate further financing for permanent improvements
creates an emergency and an imperative public necessity requiring
the suspension of rules and Charter provisions requiring ordinances
to be considered and voted upon at three regular meetings. I,
therefore, requires that the City Council pass the proposed
ordinance authorizing the issuance of bonds as an emergency
measure. You will please consider this request in connection with
the ordinance with is to be introduced for passage by the City
Council on the subject.
"Yours very truly,
/s/ Betty Turner
Mayor"
PC -1 Ai
Councilmember f2- L-` F/k n t k e moved that the Charter
provision prohibiting ordinances from being passed finally on the
date introduced be suspended for the reasons stated in the written
request of the Mayor and stated in the emergency clause of the
ordinance. The motion was seconded by Councilmember /'1 D S S
The motion was carried by a vote by the City
Council, viz.:
AYES: All members of
present above
e-74 /IV Hu n/ T�
NAYS:
the City Council shown
voted "Aye", except
/1c(0/9rr, coIC .
Councilmember G G K' h' K - O moved that the ordinance
be passed finally. The motion was seconded by Councilmember
S S . The motion was carried by the following
vote.
AYES: All members of
present above
G A,/N00, /--/ei
NAYS:
the City Council shown
voted "Aye", except
/ Ie_e /113 R/toDeS
Fou .
The Mayor announced that the ordinance had been passed. The
ordinance is as follows:
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF
CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM
REVENUE REFUNDING BONDS, SERIES 1990
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
WHEREAS, the City of Corpus Christi, Texas (the "City" or the
"Issuer"), a "home -rule" city operating under a home -rule charter
adopted pursuant to Section 5 of Article XI of the Texas
Constitution, with a population according to the latest federal
decennial census of in excess of 90,000, has established and
currently owns and operates a "Waterworks System", a "Wastewater
Disposal System" and a "Gas System"; and
WHEREAS, the City has outstanding the obligations secured by
the pledge of a first lien on and pledge of the net revenues of the
Waterworks System, and the obligations supported in whole or in
part by a pledge of ad valorem taxes of the City, all as described
in Appendix A to this Ordinance; and
WHEREAS, the Waterworks System Revenue Bonds, Series 1985,
described in Appendix A are hereinafter called the "Series 1985
Bonds" and the other obligations described in Appendix A are
hereinafter called the "Refunded General Improvement Obligations";
and
WHEREAS, as a result of the City having financed wastewater
system improvements with tax -supported debt, the City finds it
advisable to refund the Refunded General Improvement Obligations
the City attributes to the financing of such wastewater system
improvements; and
WHEREAS, the Series 1985 Bonds and the Refunded General
Improvement Obligations are hereinafter referred to as the
"Refunded Bonds"; and
WHEREAS, it is appropriate and necessary, in order to provide
the citizens of the City more efficient and reliable service, to
combine such Systems into a unified "Utility System"; and
WHEREAS, the City Council, in its effort to provide its
citizens more efficient and reliable utility service, has
determined that it is appropriate and necessary to refund the
Refunded Bonds; and
WHEREAS, Article 717k, Texas Revised Civil Statutes, as
amended, authorizes the City to enter into an escrow agreement with
any paying agent for the Refunded Bonds with respect to the
safekeeping, investment, reinvestment, administration and
disposition of any such deposit, upon such terms and conditions as
the City and such paying agent may agree, provided that such
deposits may be invested and reinvested including obligations the
principal of and interest on which are unconditionally guaranteed
by the United States of America, and which shall mature and bear
interest payable at such times and in such amounts as will be
sufficient to provide for the scheduled payment or prepayment of
the Refunded Bonds; and
WHEREAS, Ameritrust Texas National Association, the successor
to MBank Corpus Christi, N.A., Corpus Christi, Texas, is the paying
agent for the Series 1985 Bonds; and First City, Texas - Corpus
Christi, Corpus Christi, Texas, is the paying agent for each issue
of the Refunded General Improvement Obligations; and
WHEREAS, in accordance with the aforesaid Article 717k, the
City has concurrently herewith authorized an Escrow Agreement with
Ameritrust Texas National Association wherein a portion of the
proceeds from the Bonds herein authorized, together with other
available funds, are held for the purpose of the payment of
principal of and interest on the Refunded Bonds; and
WHEREAS, the Refunded Bonds mature or are subject to
redemption prior to maturity within twenty years of the date of the
bonds hereinafter authorized; and
WHEREAS, the bonds hereinafter authorized are to be issued and
delivered pursuant to the laws of the State of Texas, including
specifically Article 717k and Article 717q, Texas Revised Civil
Statutes, as amended, for the purpose of refunding the Refunded
Bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
Section 1. BONDS AUTHORIZED. That the City's bonds (the
"Bonds") are hereby authorized to be issued in the aggregate
principal amount of $64,660,000 for the purpose of refunding the
Refunded Bonds. The Bonds shall be designated as the "City of
Corpus Christi, Texas Utility System Revenue Refunding Bonds,
Series 1990". The Bonds shall be issued, shall be payable, are
subject to redemption prior to their scheduled maturities, shall
have the characteristics, and shall be signed and executed (and the
Bonds shall be sealed), all as provided, and in the manner
indicated, in the FORM OF BOND set forth in Section 6 of this
Ordinance.
Section 2. DATE AND MATURITIES. That the Bonds shall be
dated November 1, 1990, shall be in the denomination of $5,000, or
any integral multiple thereof, shall be numbered consecutively from
one upward, and shall mature on July 15 in each of the years, and
in the amounts, respectively, unless redeemed prior to maturity as
required or permitted in the FORM OF BOND set forth in Section 6
of this Ordinance, as set forth in the following schedule:
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YEARS
AMOUNTS
YEARS AMOUNTS
1992 $2,355,000 2000 $ 2,900,000
1993 2,270,000 2001 2,790,000
1994 2,170,000 2002 2,950,000
1995 3,260,000 2003 3,190,000
1996 3,165,000 2004 3,405,000
1997 3,155,000 2005 3,640,000
1998 3,065,000 ****
1999 2,995,000 2010 23,350,000
The Bonds maturing July 15, 2010 are hereby designated as Term
Bonds for purposes of this Ordinance.
Section
reserves the
15, 2001, in
thereafter,
percentages
redemption),
redemption:
3. RIGHT OF PRIOR REDEMPTION. (a) That the City
right to redeem the Bonds maturing on and after July
whole, or in part, on July 15, 2000 or on any date
at the following redemption prices (expressed as
of the principal amount of such Bonds called for
plus accrued interest thereon to the date fixed for
Redemption Period
July 15, 2000 to July 14, 2001
July 15, 2001 to July 14, 2002
July 15, 2002 and thereafter
Redemption Price (%)
102
101
100
(b) The Term Bonds maturing July 15, 2010 are subject to
mandatory redemption, and shall be redeemed in part by lot prior
to maturity annually on July 15 in the years 2006 through 2009,
inclusive, at a redemption price equal to the principal amount of
such Term Bonds called for redemption, plus accrued interest
thereon to the date fixed for redemption.
(c) Notice of any such redemption of Bonds shall be given in
the following manner, to -wit, (i) a written notice of such
redemption shall be given to the registered owner of each Bond or
a portion thereof being called for redemption not more than 60 days
nor less than 30 days prior to the date fixed for such redemption
by depositing such notice in the United States Mail, first-class
postage prepaid, addressed to each such registered owner at his
address shown on the Registration Books (hereinafter defined) of
the Paying Agent/Registrar (hereinafter defined) and (ii) a notice
of such redemption shall be published one time, at least 30 days
prior to the date fixed for such redemption, in a journal or
publication of general circulation in the United States of America
which carries as a regular feature notices of redemption of
municipal bonds; provided, however, that the failure to send, mail,
or receive such notice described in clause (i) above, or any defect
therein or in the sending or mailing thereof, shall not affect the
validity or effectiveness of the proceedings for the redemption of
any Bond, as publication of notice as described in clause (ii)
above shall be the only notice actually required in connection with
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or as a prerequisite to the redemption of any Bonds. By the date
fixed for any such redemption due provision shall be made by the
City with the Paying Agent/Registrar for the payment of the
required redemption price for the Bonds or the portions thereof
which are to be so redeemed, plus accrued interest thereon to the
date fixed for redemption. If such notice of redemption is given,
and if due provision for such payment is made, all as provided
above, the Bonds, or the portions thereof which are to be so
redeemed, thereby automatically shall be redeemed prior to their
scheduled maturities, and shall not bear interest after the date
fixed for their redemption, and shall not be regarded as being
outstanding except for the right of the registered owner to receive
the redemption price plus accrued interest to the date fixed for
redemption from the Paying Agent/Registrar out of the funds
provided for such payment. The Paying Agent/Registrar shall record
in the Registration Books all such redemptions of principal of the
Bonds or any portion thereof. If a portion of any Bond shall be
redeemed, a substitute Bond or Bonds having the same maturity date,
bearing interest at the same rate, in any denomination or denomina-
tions in any integral multiple of $5,000 at the written request of
the registered owner, and in an aggregate principal amount equal
to the unredeemed portion thereof, will be issued to the registered
owner upon the surrender thereof for cancellation, at the expense
of the City, all as provided in this Ordinance. The maturities of
Bonds to be called for redemption shall be determined by the City.
The Bonds or portions to be redeemed within each such maturity
shall be selected by lot or other customary random method selected
by the Paying Agent/Registrar (provided that a portion of a Bond
may be redeemed only in an integral multiple of $5,000). The City
shall give written notice to the Paying Agent/Registrar of any such
redemption of Bonds at least 60 calendar days (or such shorter
period as is acceptable to the Paying Agent/Registrar) prior to
such redemption.
Section 4. INTEREST. That the Bonds scheduled to mature
during the years, respectively, set forth below shall bear interest
at the following rates per annum:
maturities 1992 5.850%
maturities 1993 6.000%
maturities 1994 6.000%
maturities 1995 6.100%
maturities 1996 6.200%
maturities 1997 6.300%
maturities 1998 6.400%
maturities 1999 6.500%
maturities 2000 6.600%
maturities 2001 6.700%
maturities 2002 6.800%
maturities 2003 6.875%
maturities 2004 7.000%
maturities 2005 7.000%
***********
maturities 2010 7.000%
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Said interest shall be payable to the registered owner of any such
Bond in the manner provided and on the dates stated in the FORM OF
BOND set forth in this Ordinance.
Section 5. CHARACTERISTICS OF THE BONDS. Registration,
Transfer. Conversion and Exchange; Authentication. (a) The City
shall keep or cause to be kept at the principal corporate trust
office of Ameritrust Texas National Association, in Dallas, Texas
(the "Paying Agent/Registrar") books or records for the
registration of the transfer, conversion and exchange of the Bonds
(the "Registration Books"), and the City hereby appoints the Paying
Agent/Registrar as its registrar and transfer agent to keep such
books or records and make such registrations of transfers,
conversions and exchanges under such reasonable regulations as the
City and the Paying Agent/Registrar may prescribe; and the Paying
Agent/Registrar shall make such registrations, transfers,
conversions and exchanges as herein provided. The City Manager or
the designee thereof is hereby authorized to execute a "Paying
Agent/Registrar Agreement" in such form as is approved by the City
Attorney. The Paying Agent/Registrar shall obtain and record in
the Registration Books the address of the registered owner of each
Bond to which payments with respect to the Bonds shall be mailed,
as herein provided; but it shall be the duty of each registered
owner to notify the Paying Agent/Registrar in writing of the
address to which payments shall be mailed, and such interest
payments shall not be mailed unless such notice has been given.
The City shall have the right to inspect the Registration Books
during regular business hours of the Paying Agent/Registrar, but
otherwise the Paying Agent/Registrar shall keep the Registration
Books confidential and, unless otherwise required by law, shall not
permit their inspection by any other entity. The City shall pay
the Paying Agent/Registrar's standard or customary fees and charges
for making such registration, transfer, conversion, exchange and
delivery of a substitute Bond or Bonds. Registration of
assignments, transfers, conversions and exchanges of Bonds shall
be made in the manner provided and with the effect stated in the
FORM OF BOND set forth in Section 6 of this Ordinance. Each
substitute Bond shall bear a letter and/or number to distinguish
it from each other Bond.
An authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such Bond, date and manually sign
said Certificate, and no such Bond shall be deemed to be issued or
outstanding unless such Certificate is so executed. The Paying
Agent/Registrar promptly shall cancel all paid Bonds and Bonds
surrendered for conversion and exchange. No additional ordinances,
orders, or resolutions need be passed or adopted by the governing
body of the City or any other body or person so as to accomplish
the foregoing conversion and exchange of any Bond or portion
thereof, and the Paying Agent/Registrar shall provide for the
printing, execution, and delivery of the substitute Bonds in the
manner prescribed herein, and said Bonds shall be of type
composition printed on paper with lithographed or steel engraved
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borders of customary weight and strength. Pursuant to Article
717k-6, Texas Revised Civil Statutes, as amended, and particularly
Section 6 thereof, the duty of conversion and exchange of Bonds as
aforesaid is hereby imposed upon the Paying Agent/Registrar, and,
upon the execution of said Certificate, the converted and exchanged
Bond shall be valid, incontestable, and enforceable in the same
manner and with the same effect as the Bonds which initially were
issued and delivered pursuant to this Ordinance, approved by the
Attorney General, and registered by the Comptroller of Public
Accounts.
(b) Payment of Bonds and Interest. The City hereby further
appoints the Paying Agent/Registrar to act as the paying agent for
paying the principal of, premium, if any, and interest on the
Bonds, all as provided in this Ordinance. The Paying
Agent/Registrar shall keep proper records of all payments made by
the City and the Paying Agent/Registrar with respect to the Bonds.
(c) In General. The Bonds (i) shall be issued in fully
registered form, without interest coupons, with the principal of
and interest on such Bonds to be payable only to the registered
owners thereof, (ii) may be redeemed prior to their scheduled
maturities, (iii) may be transferred and assigned, (iv) may be
converted and exchanged for other Bonds, (v) shall have the
characteristics, (vi) shall be signed, sealed, executed and
authenticated, (vii) the principal of and interest on the Bonds
shall be payable, and (viii) shall be administered and the Paying
Agent/Registrar and the City shall have certain duties and
responsibilities with respect to the Bonds, all as provided, and
in the manner and to the effect as required or indicated, in the
FORM OF BOND set forth in Section 6 of this Ordinance. The Bonds
initially issued and delivered pursuant to this Ordinance are not
required to be, and shall not be, authenticated by the Paying
Agent/Registrar, but on each substitute Bond issued in conversion
of and exchange for any Bond or Bonds issued under this Ordinance
the Paying Agent/Registrar shall execute the PAYING
AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE, in the form set forth
in said FORM OF BOND.
(d) Substitute Paying Agent/Registrar. The City covenants
with the registered owners of the Bonds that at all times while the
Bonds are outstanding a competent and legally qualified entity
shall act as and perform the services of Paying Agent/Registrar for
the Bonds under this Ordinance, and that the Paying Agent/Registrar
will be one entity. Such entity may be the City, to the extent
permitted by law, or a bank, trust company, financial institution,
or other agency, as selected by the City. The City reserves the
right to, and may, at its option, change the Paying Agent/Registrar
upon not less than 120 days written notice to the Paying
Agent/Registrar, to be effective not later than 60 days prior to
the next principal or interest payment date after such notice. In
the event that the entity at any time acting as Paying Agent/Reg-
istrar (or its successor by merger, acquisition, or other method)
should resign or otherwise cease to act as such, the City covenants
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that promptly it will appoint a competent and legally qualified
entity to act as Paying Agent/Registrar under this Ordinance. Upon
any change in the Paying Agent/Registrar, the previous Paying
Agent/Registrar promptly shall transfer and deliver the
Registration Books (or a copy thereof), along with all other
pertinent books and records relating to the Bonds, to the new
Paying Agent/Registrar designated and appointed by the City. Upon
any change in the Paying Agent/Registrar, the City promptly will
cause a written notice thereof to be sent by the new Paying
Agent/Registrar to each registered owner of the Bonds, by United
States Mail, first-class postage prepaid, which notice also shall
give the address of the new Paying Agent/Registrar. By accepting
the position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this Ordinance,
and a certified copy of this Ordinance shall be delivered to each
Paying Agent/Registrar.
Section 6. FORM OF BONDS. (a) That the form of all Bonds,
including the form of the Paying Agent/Registrar's Certificate, the
form of Assignment, and the form of the Comptroller's Registration
Certificate to be attached only to the Bonds initially issued and
delivered pursuant to this Ordinance, shall be, respectively,
substantially as follows, with such appropriate variations,
omissions, or insertions as are permitted or required by this
Ordinance:
FORM OF BOND:
NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI, TEXAS
UTILITY SYSTEM REVENUE REFUNDING BOND
SERIES 1990
MATURITY DATE INTEREST RATE
ORIGINAL ISSUE DATE CUSIP
November 1, 1990
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF CORPUS
CHRISTI, IN NUECES COUNTY, TEXAS (the "Issuer"), hereby promises
to pay to , or to the registered assignee
hereof (either being hereinafter called the "registered owner") the
principal amount of
and to pay interest thereon from the original issue date specified
above, on July 15, 1991 and semiannually on each January 15 and
July 15 thereafter to the maturity date specified above, or the
date of redemption prior to maturity, at the interest rate per
annum specified above; except that if the Paying Agent/Registrar's
Authentication Certificate appearing on the face of this Bond is
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dated later than July 15, 1991, such interest is payable
semiannually on each January 15 and July 15 following such date.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in
lawful money of the United States of America, without exchange or
collection charges. The principal of this Bond shall be paid to
the registered owner hereof upon presentation and surrender of this
Bond at maturity or upon the date fixed for its redemption prior
to maturity, at the principal corporate trust office of Ameritrust
Texas National Association, in Dallas, Texas, which is the "Paying
Agent/Registrar" for this Bond. The payment of interest on this
Bond shall be made by the Paying Agent/Registrar to the registered
owner hereof on each interest payment date by check or
draft, dated as of such interest payment date, drawn by the Paying
Agent/Registrar on, and payable solely from, funds of the Issuer
required by the ordinance authorizing the issuance of this Bond
(the "Bond Ordinance") to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter provided; and such
check or draft shall be sent by the Paying Agent/Registrar by
United States mail, first-class postage prepaid, on each such
interest payment date, to the registered owner hereof, at its
address as it appeared on the last business day of the month next
preceding each such date (the "Record Date") on the Registration
Books kept by the Paying Agent/Registrar, as hereinafter described.
Any accrued interest due at maturity or upon the redemption of this
Bond prior to maturity as provided herein shall be paid to the
registered owner upon presentation and surrender of this Bond for
redemption and payment at the principal corporate trust office of
the Paying Agent/Registrar. The Issuer covenants with the
registered owner of this Bond that on or before each principal
payment date, interest payment date, and accrued interest payment
date for this Bond it will make available to the Paying
Agent/Registrar, from the "Debt Service Fund" created by the Bond
Ordinance, the amounts required to provide for the payment, in
immediately available funds, of all principal of and interest on
the Bonds, when due.
THE TERMS AND PROVISIONS of this Bond are continued on the
reverse side hereof and shall for all purposes have the same effect
as though fully set forth at this place.
*IF THE DATE for the payment of the principal of or interest
on this Bond shall be a Saturday, Sunday, a legal holiday, or a day
on which banking institutions in the City where the principal
corporate trust office of the Paying Agent/Registrar is located are
authorized by law or executive order to close, or the United States
Postal Service is not open for business, then the date for such
payment shall be the next succeeding day which is not such a
Saturday, Sunday, legal holiday, or day on which banking
institutions are authorized to close, or the United States Postal
Service is not open for business; and payment on such date shall
have the same force and effect as if made on the original date
payment was due.
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*THIS BOND is one of a series of bonds of like tenor and
effect except as to number, principal amount, interest rate,
maturity, and right of prior redemption, dated as of the Original
Issue Date specified above, aggregating $64,660,000 (herein some-
times called the "Bonds"), issued for the purpose of refunding the
outstanding indebtedness of the City of Corpus Christi, Texas
defined in the Bond Ordinance as the "Refunded Bonds".
*THE OUTSTANDING BONDS maturing on and after July 15, 2001
may be redeemed prior to their scheduled maturities, at the option
of the Issuer, in whole, or in part on July 15, 2000, or on any
date thereafter, at the following redemption prices (expressed as
percentages of the principal amount of the Bonds called for
redemption), plus accrued interest thereon to the date fixed for
redemption:
Redemption Period Redemption Price (%)
July 15, 2000 to July 14, 2001 102
July 15, 2001 to July 14, 2002 101
July 15, 2002 and thereafter 100
*THE OUTSTANDING BONDS maturing July 15, 2010, are subject to
mandatory redemption, and shall be redeemed in part by lot prior
to maturity annually on July 15 in the years 2006 through 2009,
inclusive, and at final maturity in 2010 with funds in the
"Mandatory Redemption Account" of the "Debt Service Fund"
established in the Bond Ordinance, at a redemption price equal to
the principal amount of such Bonds called for redemption, plus
accrued interest to the date fixed for redemption.
*NOTICE OF any such redemption of Bonds shall be given in the
following manner, to -wit, (i) a written notice of such redemption
shall be given to the registered owner of each Bond or a portion
thereof being called for redemption not more than 60 days nor less
than 30 days prior to the date fixed for such redemption by
depositing such notice in the United States Mail, first-class,
postage prepaid, addressed to each such registered owner at his
address shown on the Registration Books of the Paying
Agent/Registrar and (ii) a notice of such redemption shall be
published one time, at least 30 days prior to the date fixed for
such redemption, in a journal or publication of general circulation
in the united States of America which carries as a regular feature
notices of redemption of municipal bonds; provided, however, that
the failure to send, mail, or receive such notice described in
clause (i) above, or any defect therein or in the sending or
mailing thereof, shall not affect the validity or effectiveness of
the proceedings for the redemption of any Bond, as publication of
notice as described in clause (ii) above shall be the only notice
actually required in connection with or as a prerequisite to the
redemption of any Bonds. By the date fixed for any such redemption
due provision shall be made by the Issuer with the Paying
Agent/Registrar for the payment of the required redemption price
for this Bond or the portion hereof which is to be so redeemed,
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plus accrued interest thereon to the date fixed for redemption.
If such notice of redemption is given, and if due provision for
such payment is made, all as provided above, this Bond, or the
portion hereof which is to be so redeemed, thereby automatically
shall be redeemed prior to its scheduled maturity, and shall not
bear or accrue interest after the date fixed for its redemption,
and shall not be regarded as being outstanding except for the right
of the registered owner to receive the redemption price plus
accrued interest to the date fixed for redemption from the Paying
Agent/Registrar out of the funds provided for such payment. The
Paying Agent/Registrar shall record in the Registration Books all
such redemptions of principal amount of this Bond or any portion
hereof. If a portion of any Bond shall be redeemed a substitute
Bond or Bonds having the same maturity date, bearing interest at
the same rate, in any denomination or denominations in any integral
multiple of $5,000 at the written request of the registered owner,
and in an aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the registered owner upon the
surrender thereof for cancellation, at the expense of the Issuer,
all as provided in the Bond Ordinance. The years of maturity of
the Bonds called for such redemption shall be selected by the
Issuer. The Bonds or portions thereof redeemed within a maturity
shall be selected by lot or other customary random method selected
by the Paying Agent/Registrar (provided that a portion of a Bond
may be redeemed only in an integral multiple of $5,000).
*ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomination of
any integral multiple of $5,000. As provided in the Bond Ordinance,
this Bond may, at the request of the registered owner or the as-
signee or assignees hereof, be assigned, transferred, converted
into and exchanged for a like aggregate amount of fully registered
Bonds, without interest coupons, payable to the appropriate
registered owner, assignee or assignees, as the case may be, having
any authorized denomination or denominations as requested in
writing by the appropriate registered owner, assignee or assignees,
as the case may be, upon surrender of this Bond to the Paying
Agent/Registrar for cancellation, all in accordance with the form
and procedures set forth in the Bond Ordinance. Among other
requirements for such assignment and transfer, this Bond must be
presented and surrendered to the Paying Agent/Registrar, together
with proper instruments of assignment, in form and with guarantee
of signatures satisfactory to the Paying Agent/Registrar, evi-
dencing assignment of this Bond or any portion or portions hereof
in any authorized denomination to the assignee or assignees in
whose name or names this Bond or any such portion or portions
hereof is or are to be registered. The form of Assignment printed
or endorsed on this Bond may be executed by the registered owner
to evidence the assignment hereof, but such method is not
exclusive, and other instruments of assignment satisfactory to the
Paying Agent/Registrar may be used to evidence the assignment of
this Bond or any portion or portions hereof from time to time by
the registered owner. The one requesting such conversion and
exchange shall pay the Paying Agent/Registrar's reasonable standard
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or customary fees and charges for converting and exchanging any
Bond or portion thereof. In any circumstance, any taxes or
governmental charges required to be paid with respect thereto shall
be paid by the one requesting such assignment, transfer, conversion
or exchange, as a condition precedent to the exercise of such
privilege. The foregoing notwithstanding, in the case of the
conversion and exchange of an assigned and transferred Bond or
Bonds or any portion or portions thereof, such fees and charges of
the Paying Agent/Registrar will be paid by the Issuer. The Paying
Agent/Registrar shall not be required (i) to make any such trans-
fer, conversion or exchange during the period beginning at the
opening of business 30 days before the day of the first mailing of
a notice of redemption and ending at the close of business on the
day of such mailing, or (ii) to transfer, convert or exchange any
Bonds so selected for redemption when such redemption is scheduled
to occur within 30 calendar days; provided, however, such limita-
tion of transfer shall not be applicable to an exchange by the
registered owner of an unredeemed balance of a Bond called for
redemption in part.
*IN THE EVENT any Paying Agent/Registrar for the Bonds is
changed by the Issuer, resigns, or otherwise ceases to act as such,
the Issuer has covenanted in the Bond Ordinance that it promptly
will appoint a competent and legally qualified substitute therefor,
whose qualifications substantially are similar to the previous
Paying Agent/Registrar it is replacing, and promptly will cause
written notice thereof to be mailed to the registered owners of the
Bonds.
*BY BECOMING the registered owner of this Bond, the regis-
tered owner thereby acknowledges all of the terms and provisions
of the Bond Ordinance, agrees to be bound by such terms and
provisions, acknowledges that the Bond Ordinance is duly recorded
and available for inspection in the official minutes and records
of the Issuer, and agrees that the terms and provisions of this
Bond and the Bond Ordinance constitute a contract between each
registered owner hereof and the Issuer.
*THE BONDS are special obligations of the Issuer payable
solely from and equally secured by a first lien on and pledge of
the "Pledged Revenues" (as such term is defined in the Bond
Ordinance) of the System. The Issuer has reserved the right,
subject to the restrictions stated, and adopted by reference, in
the Bond Ordinance, to issue additional parity revenue bonds which
also may be made payable from, and secured by a first lien on and
pledge of, the aforesaid Pledged Revenues. For a more complete
description and identification of the revenues and funds pledged
to the payment of the Bonds, and other obligations of the Issuer
secured by and payable from the same source or sources as the
Bonds, reference is hereby made to the Bond Ordinance.
*THE ISSUER has reserved the right, subject to the
restrictions stated, and adopted by reference, in the Bond
Ordinance, to amend the Bond Ordinance; and under some (but not
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all) circumstances amendments must be approved by the owners of a
majority in aggregate principal amount of the outstanding Priority
Bonds (as defined in the Bond Ordinance).
*THE REGISTERED OWNER HEREOF shall never have the right to
demand payment of this obligation out of any funds raised or to be
raised by taxation.
IT IS HEREBY certified and covenanted that this Bond has been
duly and validly authorized, issued and delivered; and that all
acts, conditions and things required or proper to be performed,
exist and be done precedent to or in the authorization, issuance
and delivery of this Bond have been performed, existed and been
done in accordance with law.
IN WITNESS WHEREOF, this Bond has been signed with the
imprinted or lithographed facsimile signature of the Mayor of said
Issuer, attested by the imprinted or lithographed facsimile
signature of the City Secretary, and the official seal of said
Issuer has been duly affixed to, printed, lithographed or impressed
on this Bond.
ATTEST:
�ecrety
(SEAL)
CITY O CORPUS C RISTI, TEXAS
By
Ma or
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FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE:
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
(To be executed if this Bond is not accompanied by an
executed Registration Certificate of the Comptroller of
Public Accounts of the State of Texas)
It is hereby certified that this Bond has been issued under
the provisions of the Bond Ordinance described on the face of this
Bond; and that this Bond has been issued in exchange for or
replacement of a bond, bonds, or a portion of a bond or bonds of
an issue which originally was approved by the Attorney General of
the State of Texas and registered by the Comptroller of Public
Accounts of the State of Texas.
Dated
By
Authorized Signatory
, Texas
Paying Agent/Registrar
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*FORM OF ASSIGNMENT:
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns
and transfers unto
Please insert Social Security or
Taxpayer Identification Number of Transferee
/
/
(Please print or typewrite name and address, including
zip code of Transferee)
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to register the transfer of the within Bond on the
books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must
be guaranteed by a member
firm of the New York Stock
Exchange or a commercial
bank or trust company.
NOTICE: The signature above
must correspond with the name
of the Registered Owner as it
appears upon the front of this
Bond in every particular, without
alteration or enlargement or any
change whatsoever.
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**
FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE:
OFFICE OF COMPTROLLER .
REGISTER NO.
STATE OF TEXAS •
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)
NOTE TO PRINTER:
*][s to be printed on back of Bond
**Q not to be printed on Bond
(b) The printer of the Bonds is hereby directed to print on
the Bonds the form of bond counsel's opinion relating to the Bonds,
and is hereby authorized to print on the Bonds an appropriate
statement of insurance furnished by a municipal bond insurance
company providing municipal bond insurance, if any, covering all
or any part of the Bonds.
Section 7. DEFINITIONS. That, as used in this Ordinance, the
following terms shall have the meanings set forth below, unless the
text hereof specifically indicates otherwise:
(a) The term "Account" shall mean any account created,
established and maintained under the terms of any ordinance
authorizing the issuance of Priority Bonds.
(b) The term "Accountant" shall mean a nationally recognized
independent certified public accountant, or an independent firm of
certified public accountants.
(c) The term "Additional Priority Bonds" shall mean the addi-
tional revenue bonds which the City reserves the right to issue
in the future on a parity with the Bonds, as provided in this
Ordinance.
(d) The term "Amortization Installment" shall mean the amount
of money which is required to be deposited into the Mandatory
Redemption Account for retirement of Term Bonds (whether at
maturity or by mandatory redemption and including redemption
premium, if any).
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(e) The term "Average Annual Principal and Interest
Requirements" shall mean that amount equal to the average annual
principal and interest requirements (including Amortization
Installments) of all Bonds and Additional Priority Bonds
outstanding. With respect to Additional Priority Bonds that bear
interest at a rate which is not established at the time of issuance
at a single numerical rate for each maturity of such series,
Average Annual Principal and Interest Requirements shall be
calculated by (i) assuming that the interest rate for every 12 -
month period on such bonds is equal to 9.20% or (ii) using the
highest numerical rate borne over the preceding 24 month period by
such bonds, whichever is greater; provided, that if such bonds have
not borne interest at a variable rate for such 24 month period,
such rate shall be assumed to be 9.20% until such time as bonds
have been outstanding for a 24 month period. In making such
determinations, it shall be assumed that the principal of such
bonds is amortized such that annual debt service is substantially
level over the remaining stated life of such bonds.
(f) The term "Bonds" shall mean the Series 1990 Bonds.
(g) The term "Capital Additions" shall mean a reservoir or
other water storage facilities, a wastewater treatment plant or an
interest therein, a gas distribution system or an interest therein
and associated transmission facilities with respect to each and any
combination thereof, which shall become a part of the System.
(h) The term "Capital Improvements" shall mean any capital
extensions, improvements and betterments to the System other than
Capital Additions.
(i) The term "Capitalized Interest Account" shall mean the
Account by that name which may be created within the Debt Service
Fund
(j) The terms "City" and "Issuer" shall mean the City of
Corpus Christi, Texas.
(k) The term "Code" shall mean the Internal Revenue Code of
1986, and any amendments thereto.
(1) The term "Credit Facility" shall mean a policy of
municipal bond insurance, a surety bond or a letter or line of
credit issued by a Credit Facility Provider in support of any
Priority Bonds or Subordinate Lien Bonds.
(m) The term "Credit Facility Provider" shall mean (i) with
respect to any Credit Facility consisting of a policy of municipal
bond insurance or a surety bond, an issuer of policies of insurance
insuring the timely payment of debt service on governmental
obligations such as the Priority Bonds, provided that a Rating
Agency having an outstanding rating on the Priority Bonds would
rate the Priority Bonds fully insured by a standard policy issued
by the issuer in its highest generic rating category for such
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obligations; and (ii) with respect to any Credit Facility
consisting of a letter or line of credit, any financial
institution, provided that a Rating Agency having an outstanding
rating on the Priority Bonds would rate the Priority Bonds in its
two highest generic rating categories for such obligations if the
letter or line of credit proposed to be issued by such financial
institution secured the timely payment of the entire principal
amount of the series of Priority Bonds and the interest thereon.
(n) The term "Debt Service Fund" shall have the meaning given
such term in Section 10 of this Ordinance.
(o) The term "Eligible Investments" shall mean those
investments in which the City is authorized by law, including, but
not limited to, the Public Funds Investment Act of 1987 (Article
842a-2, Texas Revised Civil Statutes), as amended, to purchase,
sell and invest its funds and funds under its control; and provided
further that Eligible Investments shall specifically include, with
respect to the investment of proceeds of any Priority Bonds,
guaranteed investment contracts fully collateralized by Government
Obligations.
(p) The term "Engineer of Record" shall mean the independent
engineer or firm at the time employed by the City to perform and
carry out the duties imposed on such engineer or firm by this
Ordinance and having a favorable reputation nationally for skill
and experience in the engineering of water, sanitary sewer and/or
gas systems of comparable size and character as those forming parts
of the System.
(q) The term "Government Obligations" shall mean direct
obligations of the United States of America, including obligations
the principal of and interest on which are unconditionally
guaranteed by the United States of America.
(r) The term "Fund" shall mean any fund created, established
and maintained under the terms of any ordinance authorizing the
issuance of Priority Bonds.
(s) The term "Gross Revenues" shall mean, all revenues,
income, and receipts derived or received by the City from the
operation and ownership of the System, including the interest
income from the investment or deposit of money in any Fund created
by this Ordinance or maintained by the City in connection with the
System, other than those amounts subject to payment to the United
States of America as rebate pursuant to section 148 of the Code.
(t) The term "Mandatory Redemption Account" shall mean the
Account by that name which may hereafter be created within the Debt
Service Fund and established by an ordinance authorizing the
issuance of Additional Priority Bonds.
(u) The terms "Net Revenues of the System" and "Net Revenues"
shall mean all Gross Revenues less Operating Expenses.
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(v) The term "Operating Expenses" shall mean the expenses of
operation and maintenance of the System, including all salaries,
labor, materials, repairs, and extensions necessary to render
efficient service, provided, however, that only such repairs and
extensions, as in the judgment of the City, reasonably and fairly
exercised by the passage of appropriate ordinances, are necessary
to render adequate service, or such as might be necessary to meet
some physical accident or condition which would otherwise impair
any Priority Bonds. Operating Expenses shall include the purchase
of water, sewer and gas services as received from other entities
and the expenses related thereto, and, to the extent permitted by
law, Operating Expenses may include payments made on or in respect
of obtaining and maintaining any Credit Facility. Depreciation,
and payments from the System Fund to other funds established in
this Ordinance, shall never be considered as expenses of operation
and maintenance.
(w) The term "Paying Agent/Registrar" shall mean the
financial institution specified in Section 5(a) of this Ordinance,
or its herein permitted successors and assigns.
(x)
The term "Pledged Revenues" shall mean
(1) the Net Revenues, plus
(2) any additional revenues, income, receipts, or other
resources, including, without limitation, any grants,
donations, or income received or to be received from the
United States Government, or any other public or private
source, whether pursuant to an agreement or otherwise, which
hereafter are pledged to the payment of the Priority Bonds.
(y) The term "Priority Bonds" shall mean the Bonds and any
Additional Priority Bonds.
(z) The term "Prudent Utility Practice" shall mean any of
the practices, methods and acts, in the exercise of reasonable
judgment, in the light of the facts, including but not limited to
the practices, methods and acts engaged in or approved by a
significant portion of the public utility industry prior thereto,
known at the time the decision was made, would have been expected
to accomplish the desired result at the lowest reasonable cost
consistent with reliability, safety and expedition. It is
recognized that Prudent Utility Practice is not intended to be
limited to the optimum practice, method or act at the exclusion of
all others, but rather is a spectrum of possible practices, methods
or acts which could have been expected to accomplish the desired
result at the lowest reasonable cost consistent with reliability,
safety and expedition. In the case of any facility included in the
System which is owned in common with one or more other entities,
the term "Prudent Utility Practice", as applied to such facility,
shall have the meaning set forth in the agreement governing the
operation of such facility.
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(aa) The term "Rating Agency" shall mean any nationally
recognized securities rating agency which has assigned a rating to
the Priority Bonds.
(bb) The term "Refunded Bonds" shall mean those bonds or other
obligations of the City so designated in the preamble to this
Ordinance.
(cc) The term "Required Amount" shall have the meaning given
such term in Section 11 of this Ordinance.
(dd) The term "Reserve Fund" shall have the meaning given such
term in Section 11 of this Ordinance.
(ee) The term "Reserve Fund Obligations" shall mean cash,
Eligible Investments, any Credit Facility, or any combination of
the foregoing.
(ff) The term "Series 1990 Bonds" shall mean the City of
Corpus Christi, Texas Utility System Revenue Refunding Bonds,
Series 1990, authorized by this Ordinance.
(gg) The term "Subordinated Obligations" shall mean any bonds,
notes, or other obligations issued pursuant to law payable in whole
or in part from the Pledged Revenues and subordinate to the
Priority Bonds.
(hh) The term "System" shall mean and include the City's
existing combined waterworks system, wastewater disposal system and
gas system, together with all future extensions, improvements,
enlargements, and additions thereto, including, to the extent
permitted by law, storm sewer and drainage, and all replacements
thereof; provided that, notwithstanding the foregoing, and to the
extent now or hereafter authorized or permitted by law, the term
System shall not include any waterworks, wastewater or gas
facilities which are declared by the City not to be a part of the
System and which are hereafter acquired or constructed by the City
with the proceeds from the issuance of "Special Facilities Bonds",
which are hereby defined as being special revenue obligations of
the City which are not secured by or payable from the Pledged Reve-
nues, but which are secured by and payable solely from special
contract revenues, or payments received from the City or any other
legal entity, or any combination thereof, in connection with such
facilities; and such revenues or payments shall not be considered
as or constitute Gross Revenues of the System, unless and to the
extent otherwise provided in the ordinance or ordinances authoriz-
ing the issuance of such "Special Facilities Bonds".
(ii) The term "System Fund" shall have the meaning given such
term in Section 9 of this Ordinance.
(jj) The term "Term Bonds" shall mean those Bonds so
designated in Section 2 of this Ordinance and those Additional
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Priority Bonds designated by the ordinance authorizing the issuance
thereof which shall be subject to retirement of the Mandatory
Redemption Account.
(kk) The term "Value of Investment Securities" and words of
like import shall mean the amortized value thereof, provided,
however, that all United States of America, United States Treasury
Obligations --State and Local Government Series shall be valued at
par and those obligations which are redeemable at the option of the
holder shall be valued at the price at which such obligations are
then redeemable. The computations made under this paragraph shall
include accrued interest on the investment securities paid as a
part of the purchase price thereof and not collected. For the
purposes of this definition "amortized value", when used with
respect to a security purchased at par means the purchase price of
such security.
(11) The term "Year" shall mean the regular fiscal year used
by the City in connection with the operation of the System, which
may be any twelve consecutive months period established by the
City.
Section 8. PLEDGE. That the Priority Bonds are and shall be
secured by and payable from a first lien on and pledge of the
Pledged Revenues including such revenues within the System Fund and
the Funds hereinafter created in this Ordinance; and the Pledged
Revenues are further pledged to the establishment and maintenance
of the Debt Service Fund and the Reserve Fund as hereinafter pro-
vided. The Priority Bonds are and will be secured by and payable
only from the Pledged Revenues, and are not secured by or payable
from a mortgage or deed of trust on any properties, whether real,
personal, or mixed, constituting the System.
Section 9. SYSTEM FUND. That there is hereby created and
there shall be established and maintained on the books of the City,
and accounted for separate and apart from all other funds of the
City, a special fund to be entitled the "City of Corpus Christi
Utility System Fund" (the "System Fund"). All Gross Revenues shall
be credited to the System Fund immediately upon receipt. All
Operating Expenses shall be paid from such Gross Revenues credited
to the System Fund as a first charge against same.
Section 10. DEBT SERVICE FUND. (a) That for the sole
purpose of paying the principal amount of, premium, if any,
Amortization Installments, if any, and interest on all Priority
Bonds, there is hereby created and there shall be established and
maintained on the books of the City a separate fund to be entitled
the "City of Corpus Christi Utility System Revenue Bonds Debt
Service Fund" (hereinafter called the "Debt Service Fund"). Monies
in the Debt Service Fund shall be deposited and maintained in an
official depository bank of the City.
(b) That within the Debt Service Fund there may hereafter be
established a Capitalized Interest Account. The proceeds of
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Priority Bonds representing capitalized interest may be deposited
into the Capitalized Interest Account. On or before the day next
preceding any interest payment date of bonds or other obligations
for which any interest has been capitalized, the City shall use the
monies in the Capitalized Interest Account to pay such interest on
such bonds or other obligations to the extent of the amounts
therein representing such capitalized interest.
(c) That within the Debt Service Fund there is hereby
established the Mandatory Redemption Account. Amortization
Installments shall be deposited to the credit of the Mandatory
Redemption Account and be used to retire the principal amount of
Term Bonds in the manner described in any ordinance authorizing the
issuance of Term Bonds, including specifically, with respect to
those Bonds which are Term Bonds, this Ordinance.
Section 11. RESERVE FUND. (a) That there is hereby created
and there shall be established and maintained on the books of the
City a separate fund to be entitled the "City of Corpus Christi
Utility System Revenue Bonds Reserve Fund" (hereinafter called the
"Reserve Fund"). There shall be deposited into the Reserve Fund
any Reserve Fund Obligations so designated by the City. Reserve
Fund Obligations in the Reserve Fund shall be deposited and
maintained in an official depository bank of the City. Reserve
Fund Obligations in the Reserve Fund shall be used solely for the
purpose of retiring the last of any Priority Bonds as they become
due or paying principal of and interest on any Priority Bonds when
and to the extent the amounts in the Debt Service Fund are
insufficient for such purpose. The Reserve Fund shall be
maintained in an amount equal to the Average Annual Principal and
Interest Requirements of the outstanding Priority Bonds (the
"Required Amount"). The City may, at its option, withdraw and
transfer to the System Fund, all surplus in the Reserve Fund over
the Required Amount.
(b) The City may replace or substitute a Credit Facility for
cash or Eligible Investments on deposit in the Reserve Fund or in
substitution for or replacement of any existing Credit Facility.
Upon such replacement or substitution, cash or Eligible Investments
on deposit in the Reserve Fund which, taken together with the face
amount of any existing Credit Facilities, are in excess of the
Required Amount may be withdrawn by the City, at its option, and
transferred to the System Fund; provided that the face amount of
any Credit Facility may be reduced at the option of the City in
lieu of such transfer.
(c) If the City is required to make a withdrawal from the
Reserve Fund for any of the purposes described in this Section, the
City shall promptly notify any applicable Credit Facility Provider
of the necessity for a withdrawal from the Reserve Fund for any
such purposes, and shall make such withdrawal FIRST from available
moneys or Eligible Investments then on deposit in the Reserve Fund,
and NEXT from a drawing under any Credit Facility to the extent of
such deficiency.
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(d) In the event of a deficiency in the Reserve Fund, or in
the event that on the date of termination or expiration of any
Credit Facility there is not on deposit in the Reserve Fund
sufficient Reserve Fund Obligations, all in an aggregate amount at
least equal to the Required Amount, then the City shall satisfy the
Required Amount by depositing Reserve Fund Obligations into the
Reserve Fund in monthly installments of not less than 1/60 of the
Required Amount made on or before the 10th day of each month
following such termination or expiration.
(e) In the event of the redemption or defeasance of any
Priority Bonds, any Reserve Fund Obligations on deposit in the
Reserve Fund in excess of the Required Amount may be withdrawn and
transferred, at the option of the City, to the System Fund, as a
result of (i) the redemption of any Priority Bonds, or (ii) funds
for the payment of any Priority Bonds having been deposited
irrevocably with the paying agent or place of payment therefor in
the manner described in any ordinance authorizing the issuance of
Priority Bonds, the result of such deposit being that such Priority
Bonds no longer are deemed to be outstanding under the terms of any
such ordinance.
(f) In the event there is a draw upon the Credit Facility,
the City shall reimburse the Credit Facility Provider for such
draw, in accordance with the terms of any agreement pursuant to
which the Credit Facility is issued, from Pledged Revenues,
however, such reimbursement from Pledged Revenues shall be
subordinate and junior in right of payment to the payment of
principal of and premium, if any, and interest on the Priority
Bonds.
(g) Upon the issuance of Additional Priority Bonds the monies
in the Reserve Fund shall be increased to the newly -established
Required Amount in accordance with the provisions of Section 20(b)
of this Ordinance.
Section 12. SUBORDINATED OBLIGATIONS FUNDS AND ACCOUNTS.
That the City hereafter may create, establish and maintain on the
books of the City separate funds and accounts from which moneys can
be withdrawn to pay the principal of and interest on Subordinated
Obligations which hereafter may be issued.
Section 13. CONSTRUCTION FUND. That the City hereafter may
create, establish and maintain on the books of the City a separate
fund to be utilized by the City for the payment of, or for
reimbursement of the City for payment of, lawful costs associated
with the acquisition, improvement and extension of the System.
Section 14. INVESTMENTS. That money in any Fund established
pursuant to this Ordinance may, at the option of the City, be
placed or invested in Eligible Investments. Money in the Reserve
Fund shall not be invested in securities with an average aggregate
weighted maturity of greater than seven years. If monies in a Fund
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herein established are permitted to be invested the value of any
such Fund shall be established by adding the monies therein to the
Value of Investment Securities. The value of each such Fund shall
be established annually during the last month of each Year and in
addition thereto, with respect to the Reserve Fund, value shall be
established within thirty days prior to the issuance of Priority
Bonds and at the time or times withdrawals are made therefrom.
Such investments shall be sold promptly when necessary to prevent
any default in connection with the Priority Bonds. Earnings
derived from the investment of moneys on deposit in the various
Funds and Accounts created hereunder shall be credited to the Fund
or Account from which moneys used to acquire such investment shall
have come.
Section 15. FUNDS SECURED. That monies in the System Fund
and all Funds created by this Ordinance, to the extent not
invested, shall be secured in the manner prescribed by law for
securing funds of the City.
Section 16. FLOW OF FUNDS. That all monies in the System
Fund not required for paying Operating Expenses during each month
shall be applied by the City, on or before the 10th day of the
following month, commencing during the months and in the order of
priority with respect to the Funds and Accounts that such
applications are hereinafter set forth in this Section.
(a) Debt Service Fund - To the credit of the Debt Service
Fund, in the following order of priority, to -wit:
(1) such amounts, deposited in approximately equal
monthly installments, commencing during the month in which the
Priority Bonds are delivered, or the month thereafter if
delivery is made after the 10th day thereof, as will be
sufficient, together with other amounts, if any, in the Debt
Service Fund available for such purpose (including
specifically moneys on deposit in the Capitalized Interest
Account dedicated thereto), to pay the interest scheduled to
come due on Priority Bonds on the next succeeding interest
payment date;
(2) such amounts, deposited in approximately equal
monthly installments, commencing during the month which shall
be the later to occur of, (i) the twelfth month before the
first maturity date of Priority Bonds, or (ii) the month in
which Priority Bonds are delivered, or the month thereafter
if delivery is made after the 10th day thereof, as will be
sufficient, together with other amounts, if any, in the Debt
Service Fund available for such purpose, to pay the princi-
pal scheduled to mature on Priority Bonds on the next
succeeding principal payment date; and
(3) Amortization Installments, in such amounts and on
such dates as set forth in any ordinance authorizing a series
of Priority Bonds which contain Term Bonds within such Series,
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to pay scheduled principal amounts of Priority Bonds which
constitute Term Bonds to be redeemed in accordance with the
terms of said ordinance;
With respect to those Bonds which are
be deposited in monthly installments on or
each month as Amortization Installments
Mandatory Redemption Account commencing
continuing through July, 2010, 1/12 of
amounts as follows:
Term Bonds, there shall
before the 10th day of
to the credit of the
in August, 2005 and
the respective annual
Twelve Month Period
Endinci July 10 Amortization Installment
2006
2007
2008
2009
2010*
$3,885,000
4,160,000
4,450,000
4,760,000
6,095,000
*Payable at maturity
The City shall redeem such Term Bonds on July 15 of each of the
years 2006 to 2009, inclusive. The principal amount of such Term
Bonds required to be redeemed pursuant to the operation of such
mandatory redemption provisions shall be reduced, at the option of
the City, by the principal amount of any such Term Bonds which, at
least 50 days prior to the mandatory redemption date, (1) shall
have been acquired by the City at a price not exceeding the
principal amount of such Term Bonds plus accrued interest to the
date of purchase thereof, and delivered to the Paying
Agent/Registrar for cancellation, (2) shall have been purchased and
cancelled by the Paying Agent/Registrar at the request of the City
with moneys in the Mandatory Redemption Account, at a price not
exceeding the principal amount of such Term Bonds plus accrued
interest to the date of purchase thereof, or (3) have been redeemed
pursuant to the optional redemption provisions set forth above in
Section 3(a) hereof and not theretofore credited against a
mandatory redemption requirement. On the maturity date of such
Term Bonds, the City shall apply the monies on hand in the
Mandatory Redemption Account for the payment of the principal of
the maturing Term Bonds. If the monthly transfers to the Mandatory
Redemption Account required hereby will produce a surplus in the
Mandatory Redemption Account at maturity of such Term Bonds, the
monthly transfers required on the account of such Term Bonds may
be reduced accordingly and in approximately equal amounts.
(b) Reserve Fund. To the credit of the Reserve Fund, such
amounts, deposited in approximately equal monthly installments,
commencing during the month in which the Priority Bonds are
delivered, or the month thereafter if delivery is made after the
10th day thereof, equal to not less than 1/60 of the Required
Amount, until such time as such amounts together with other
amounts, if any, in the Reserve Fund, equal the Required Amount.
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When and so long as the Reserve Fund Obligations in the Reserve
Fund are not less than the Required Amount, no deposits need be
made to the credit of the Reserve Fund. When and if the Reserve
Fund at any time contains less than the Required Amount due to any
cause or condition other than the issuance of Additional Priority
Bonds then, subject and subordinate to making the required deposits
to the credit of the Debt Service Fund, commencing with the month
during which such deficiency occurs, such deficiency shall be made
up from the next available Pledged Revenues or from any other
sources available for such purpose. Reimbursements to a Credit
Facility Provider made in accordance with the terms of Section
11(f) of this Ordinance shall constitute the making up of a
deficiency to the extent that such reimbursements result in the
reinstatement, in whole or in part, as the case may be, of the
amount of the Credit Facility. If the Reserve Fund contains less
than the Required Amount due to the issuance of Additional Priority
Bonds deposits shall be made to the Reserve Fund commencing during
the month and in the amounts required by Section 20(b) of this
Ordinance, unless a Credit Facility is deposited in the Reserve
Fund in an amount necessary to cause the sum of money and the value
of Investment Securities and any other Credit Facilities in the
Reserve Fund to equal the Required Amount.
(c) Surplus. The balance of any monies remaining in the
System Fund following such transfers may be used by the City for
payment of other obligations of the System, including, but not
limited to, Subordinated Obligations, and for any other lawful
purpose; provided that transfers made for purposes other than for
payment of obligations of the System shall be made only at the end
of the Year.
Section 17. DEFICIENCIES. That if on any occasion there
shall not be sufficient Pledged Revenues to make the deposits and
other applications of monies required by Section 17 with respect
to the various Funds as provided therein, any such deficiencies
shall be made up (in the order that each such Fund is provided for
in Section 16) as soon as possible from the next available Pledged
Revenues, or from any other sources available for such purpose.
The foregoing notwithstanding, however, if any deficiency in the
Reserve Fund occurs as a result of withdrawls therefrom or
decreases in the market value of Eligible Investments on deposit
therein, such deficiency will be made up from the next available
Pledged Revenues within twelve months from the date of such
deficiency is determined, with such deposits to the Reserve Fund
to be made in not more than twelve substantially equal monthly
payments.
Section 18. PAYMENT OF BONDS. That on or before the first
scheduled interest payment date, and on or before each interest
payment date and principal payment date thereafter while any of the
Priority Bonds are outstanding and unpaid, the City shall make
available to the paying agent therefor, out of the Debt Service
Fund (and the other Funds, if necessary, in the order of priority
set forth herein) monies sufficient to pay such interest on and
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such principal amount of the Priority Bonds, as shall become due
and mature on such dates, respectively, at maturity or by
redemption prior to maturity. The bond registrar for each series
of Priority Bonds shall destroy all paid Priority Bonds and furnish
the City with an appropriate certificate of cancellation or
destruction.
Section 19. FINAL DEPOSITS; GOVERNMENT OBLIGATIONS. (a)
That any Priority Bond shall be deemed to be paid, retired and no
longer outstanding within the meaning of this Ordinance when
payment of the principal amount of, redemption premium, if any, on
such Priority Bond, plus interest thereon to the due date thereof
(whether such due date be by reason of maturity, upon redemption,
or otherwise) either (i) shall have been made in accordance with
the terms thereof or (ii) shall have been provided for by ir-
revocably depositing with, or making available to, a paying agent
(or escrow agent) therefor, in trust and irrevocably set aside
exclusively for such payment, in accordance with the terms and
conditions of an agreement between the City and said paying agent
(or escrow agent), (1) money sufficient to make such payment or
(2), except as otherwise provided in Section 31 of this Ordinance,
Government Obligations, 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 Priority Bonds with
respect to which such deposit is made shall have been paid or the
payment thereof provided for (and irrevocable instructions shall
have been given by the City to such paying agent of such bonds to
give notice of such redemption in the manner required by the
ordinance or ordinances authorizing the issuance of such bonds) to
the satisfaction of such paying agent. Such paying agent shall
give notice to each registered owner of any Priority Bond that such
deposit as described above has been made, in the same manner as
described in Section 3 of this Ordinance. In addition, in
connection with a defeasance, such paying agent shall give notice
of redemption, if necessary, to the registered owners of any
Priority Bonds in the manner described in such Priority Bonds and
as directed in the redemption instructions delivered by the City
to such paying agent. At such time as a Priority 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 Pledged Revenues, and shall be entitled to
payment solely from such money or Government Obligations.
(b) That any moneys so deposited with a paying agent (or
escrow agent) may, at the direction of the City, also be invested
in Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government
Obligations in the hands of the paying agent pursuant to this
Section which is not required for the payment of the Priority
Bonds, the redemption premium, if any, and interest thereon, with
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respect to which such money has been so deposited, shall be
remitted to the City for deposit into the System Fund.
(c) Except as provided in clause (b) of this Section, all
money or Government Obligations set aside and held in trust
pursuant to the provisions of this Section for the payment of
Priority Bonds, the redemption premium, if any, and interest
thereon, shall be applied solely to and used solely for the payment
of such Priority Bonds, the redemption premium, if any, and
interest thereon.
Section 20. ISSUANCE OF ADDITIONAL PRIORITY BONDS. (a) That
subject to the provisions hereinafter appearing as conditions
precedent which must first be satisfied, the City reserves the
right to issue, from time to time as needed, Additional Priority
Bonds for any lawful purpose relating to the System. Such
Additional Priority Bonds may be issued in such form and manner as
now or hereafter authorized by the laws of the State of Texas for
the issuance of evidences of indebtedness or other instruments, and
should new methods or financing techniques be developed that differ
from those now available and in normal use, the City reserves the
right to employ the same in its financing arrangements provided
only that the same conditions precedent herein required for the
authorization and issuance of Additional Priority Bonds are
satisfied.
(b) That the Debt Service Fund and the Reserve Fund
established by this Ordinance shall secure and be used to pay all
Additional Priority Bonds hereafter issued. Upon the issuance and
delivery of Additional Priority Bonds, the additional amount
required to be deposited in the Reserve Fund shall be so
accumulated by the deposit in the Reserve Fund of all or any part
of said required additional amount in cash immediately after the
delivery of such Additional Priority Bonds, or, at the option of
the City, (i) by the deposit of said required additional amount (or
any balance of said required additional amount not deposited in
cash as permitted above) in approximately equal monthly install-
ments, made on or before the 10th day of each month following the
delivery of such Additional Priority Bonds, of not less than 1/60
of said required additional amount (or 1/60 of the balance of said
required additional amount not deposited in cash as permitted
above) or (ii) by the deposit of a Credit Facility which, in whole
or in combination with deposits described in clause (i) above, is
sufficient to satisfy the required additional amount to be on
deposit in the Reserve Fund.
(c) That all calculations of Average Annual Principal and
Interest Requirements made pursuant to this Section shall be made
as of and from the date of the Additional Priority Bonds then
proposed to be issued.
Section 21. FURTHER REQUIREMENTS FOR ADDITIONAL PRIORITY
BONDS. (a) Conditions precedent for Issuance of Additional
Priority Bonds - General. That as a condition precedent to the
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issuance of any Additional Priority Bonds, the City Manager (or
other officer of the City then having the responsibility for the
financial affairs of the City) shall have executed a certificate
stating (i) that the City is not then in default as to any
covenant, obligation or agreement contained in any ordinance or
other proceeding relating to any obligations of the City payable
from and secured by a lien on and pledge of the Pledged Revenues,
and (ii) that the amounts on deposit in all Funds or Accounts
created and established for the payment and security of all
outstanding obligations payable from and secured by a lien on and
pledge of the Pledged Revenues are the amounts then required to be
deposited therein. Such certificate shall be dated on or before
the date of delivery of such Additional Priority Bonds, but such
certificate shall not be dated prior to the date an ordinance is
passed authorizing the issuance of such Additional Priority Bonds.
(b) Conditions Precedent for Issuance of Additional Priority
Bonds - Capital Improvements and for any other lawful purpose
except for Capital Additions or for refunding. The City covenants
and agrees that Additional Priority Bonds will not be issued for
the purpose of financing Capital Improvements, or for any other
lawful purpose (except for Capital Additions or for refunding,
which are to be issued in accordance with the provisions of clauses
(c), (d) or (e) of this Section) unless and until the conditions
precedent in clause (a) above have been satisfied and, in addition
thereto, the City has secured a certificate or opinion of the
Accountant to the effect that, according to the books and records
of the City, the Net Earnings (hereinafter defined) for the
preceding Year or for 12 consecutive months out of the 15 months
immediately preceding the month the ordinance authorizing the
Additional Priority Bonds is adopted are at least equal to 1.25
times the Average Annual Principal and Interest Requirements for
all outstanding Priority Bonds after giving effect to the
Additional Priority Bonds then proposed.
The foregoing notwithstanding, the City covenants and agrees
that Additional Priority Bonds may not be issued for the purpose
of financing Capital Improvements when other outstanding Priority
Bonds which have been issued for the purpose of financing Capital
Additions and for which capitalized interest for such other
Priority Bonds has been provided for at least the twelve months
subsequent to the date of issuance of the Additional Priority Bonds
then proposed to be issued, unless the conditions precedent in
clause (a) above have been satisfied and, in addition thereto, the
City has either (1) complied with the relevant conditions in this
clause as set forth above, or (2) if the relevant conditions of
this clause (b) as set forth above cannot be satisfied, the City
has satisfied the conditions precedent in clauses (c)(i) and
(c)(ii) of this Section (but, for purposes of such clauses, the
term Capital Improvements shall be substituted for the term Capital
Additions where the term Capital Additions appears therein to the
extent necessary to give recognition to the fact that Capital
Improvements, rather than Capital Additions, are then to be
financed) and has secured a certificate or opinion of the
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Accountant to the effect that, according to the books and records
of the City, the Net Earnings for the preceding Year or for 12 con-
secutive months out of the 15 months immediately preceding the
month the ordinance authorizing the Additional Priority Bonds is
adopted are at least equal to 1.25 times the Average Annual
Principal and Interest Requirements for all outstanding Priority
Bonds (other than any Priority Bonds issued for Capital Additions
for which capitalized interest has been provided for at least the
twelve months subsequent to the date of issuance of the Additional
Priority Bonds proposed to be issued) after giving effect to the
Priority Bonds then proposed.
(c) Conditions Precedent for Issuance of Additional Priority
Bonds - Capital Additions: Initial Issue. The City covenants and
agrees that Additional Priority Bonds will not be issued for the
purpose of financing Capital Additions, unless the same conditions
precedent specified in clause (a) above have been satisfied and,
in addition thereto, either the relevant conditions precedent
specified in clause (b) above are satisfied or, in the alternative,
the City shall have obtained:
(i) from the Engineer of Record a comprehensive
Engineering Report for each Capital Addition to be financed,
which report shall (A) contain (1) detailed estimates of the
cost of acquiring and constructing the Capital Addition, (2)
the estimated date the acquisition and construction of the
Capital Addition will be completed and commercially operative,
and (3) a detailed analysis of the impact of the Capital
Addition on the financial operations of the system for which
the Capital Addition is to be integrated and to the System as
a whole during the construction thereof and for at least five
Years after the date the Capital Addition becomes commercially
operative, and (B) conclude that (1) the Capital Addition is
necessary and will substantially increase the capacity, or is
needed to replace existing facilities, to meet current and
projected demands for the service or product to be provided
thereby, and (2) the estimated cost of providing the service
or product from the Capital Addition will be reasonable in
comparison with projected costs for furnishing such service
or product from other reasonably available sources; and
(ii) a certificate of the Engineer of Record to the
effect that, based on the Engineering Report prepared for each
Capital Addition, the projected Net Earnings for each of the
five years subsequent to the date the Capital Addition becomes
commercially operative (as estimated in the Engineering
Report) will be equal to at least 1.25 times the Average
Annual Principal and Interest Requirements for Priority Bonds
then outstanding or incurred and all Priority Bonds estimated
to be issued, if any, for all Capital Improvements and for all
Capital Additions then in progress or then being initiated,
during the period from the date the first series of
obligations for the Capital Additions is to be delivered
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through the fifth year subsequent to the date the Capital
Addition is estimated to become commercially operative.
(d) Completion Issues. Once a Capital Addition has been
initiated by meeting the conditions precedent specified in clauses
(c)(i) and (c)(ii) above and the initial Priority Bonds issued
therefor are delivered, the City reserves the right to issue
Additional Priority Bonds to finance the remaining costs of such
Capital Addition in such amounts as may be necessary to complete
the acquisition and construction thereof and make the same
commercially operative without satisfaction of any condition
precedent under clauses (c)(i) and (c)(ii) or clause (b) of this
Section but subject to satisfaction of the following conditions
precedent:
(i) the City makes a forecast (the "Forecast") of the
operations of the System demonstrating the System's ability
to pay all obligations, payable from the Pledged Revenues of
the System to be outstanding after the issuance of the
Additional Priority Bonds then being issued for the period
(the "Forecast Period") of each ensuing year through the fifth
year subsequent to the latest estimated date such Capital
Addition is expected to be commercially operative; and
(ii) the Engineer of Record reviews such Forecast and
executes a certificate to the effect that (A) such Forecast
is reasonable, and based thereon (and such other factors
deemed to be relevant), the Pledged Revenues of the System
will be adequate to pay all the obligations, payable from the
Pledged Revenues of the System to be outstanding after the
issuance of the Additional Priority Bonds then being issued
for the Forecast Period and (B) the proceeds from the sale of
such Additional Priority Bonds are estimated to be sufficient
to complete such acquisition and construction.
(e) Refunding Issues. The City reserves the right to issue
refunding bonds to refund all or any part of the outstanding
Priority Bonds (pursuant to any law then available), upon such
terms and conditions as the governing body of the City may deem to
be in the best interest of the City and its inhabitants, and if
less than all such outstanding Priority Bonds are refunded, the
conditions precedent prescribed in clauses (a) and (b) of this
Section shall be satisfied and the Accountant's certificate or
opinion required by clause (b) shall give effect to the issuance
of the proposed refunding bonds (and shall not give effect to the
Priority Bonds being refunded following their cancellation or
provision being made for their payment). In addition, the City
reserves the right to refund all or any part of any other
obligations of the System, upon such terms and conditions as the
governing body of the City may deem to be in the best interest of
the City and its inhabitants, provided that the conditions
prescribed in clauses (a) and (b) of this Section shall be
satisfied. No Accountant's certificate otherwise required by
clause (b) will be required for refunding bonds, after giving
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effect to such proposed refunding, if there is no increase in debt
service for any Year in which there will be debt service on
Priority Bonds outstanding both before and after such refunding.
(f) Computations; Reports. With reference to Priority Bonds
anticipated and estimated to be issued or incurred, the Average
Annual Principal and Interest Requirements therefor shall be those
reasonably estimated and computed by the City's Director of Finance
(or other officer of the City then having the primary
responsibility for the financial affairs of the City). In the
preparation of the Engineering Report required in clause (c)(i)
above, the Engineer of Record may rely on other experts or profes-
sionals, including those in the employment of the City, provided
such Engineering Report discloses the extent of such reliance and
concludes it is reasonable so to rely. In connection with the
issuance of Priority Bonds for Capital Additions, the certificate
of the City's Director of Finance and Engineer of Record, together
with the Engineering Report for the initial issue and the Forecast
for a subsequent issue, shall be conclusive evidence and the only
evidence required to show compliance with the provisions and
requirements and this clause of this Section.
(g) Combination Issues. Priority Bonds for Capital Addi-
tions may be combined in a single issue with Priority Bonds for
Capital Improvements or for any lawful purpose provided the
conditions precedent set forth in clauses (b) through (e) are
complied with as the same relate to the appropriate purpose.
(h) Subordinated Obligations. The City may, at any time and
from time to time, for any lawful purpose, issue Subordinated
Obligations, the principal of and redemption premium, if any, and
interest on which is payable from and secured by a pledge of and
lien on the Pledged Revenues junior and subordinate to the lien and
pledge created hereby for the security of the Priority Bonds and
the payments required to be made hereunder into the Debt Service
Fund and the Reserve Fund; provided, however, that any such pledge
and lien securing the Subordinated Obligations shall be, and shall
be expressed to be, subordinate in all respects to the pledge of
and lien on the Pledged Revenues as security for the Priority
Bonds; and provided further that any default with respect to the
issuance of Subordinated Obligations will not be deemed a default
with respect to the Priority Bonds.
(i) Definition of Net Earnings. As used in this Section, the
term "Net Earnings" shall mean the Gross Revenues of the System
after deducting the Operating Expenses of the System, but not
expenditures which, under standard accounting practice, should be
charged to capital expenditures.
(j) Determination of Net Earnings. In making a determination
of Net Earnings for any of the purposes described in this Section,
the Accountant may take into consideration a change in the rates
and charges for services and facilities afforded by the System that
became effective at least 60 days prior to the last day of the
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period for which Net Earnings are determined and, for purposes of
satisfying any of the Net Earnings test described above, make a pro
forma determination of the Net Earnings of the System for the
period of time covered by the Accountant's certification or opinion
based on such change in rates and charges being in effect for the
entire period covered by the Accountant's certificate or opinion.
Section 22. GENERAL COVENANTS. That the City further
covenants and agrees that in accordance with and to the extent
required or permitted by law:
(a) PERFORMANCE. It will faithfully perform at all times any
and all covenants, undertakings, stipulations, and provisions
contained in this Ordinance, and each ordinance authorizing the
issuance of Additional Priority Bonds; it will promptly pay or
cause to be paid the principal amount of and interest on every
Priority Bond, on the dates and in the places and manner prescribed
in such ordinances and such Priority Bonds; and it will, at the
time and in the manner prescribed, deposit or cause to be deposited
the amounts required to be deposited into the System Fund and the
Funds herein created; and any registered owner of any Priority Bond
may require the City, its officials and employees to carry out,
respect or enforce the covenants and obligations of this Ordinance,
or any ordinance authorizing the issuance of Priority Bonds, by all
legal and equitable means, including specifically, but without
limitation, the use and filing of mandamus proceedings, in any
court of competent jurisdiction, against the City, its officials
and employees.
(b) CITY'S LEGAL AUTHORITY. It is a duly created and
existing home rule city of the State of Texas, and is duly
authorized under the laws of the State of Texas to issue the Bonds;
that all action on its part for the issuance of the Bonds has been
duly and effectively taken, and that the Bonds in the hands of the
owners thereof are and will be valid and enforceable special
obligations of the City in accordance with their terms.
(c) ACQUISITION AND CONSTRUCTION; OPERATION AND MAINTENANCE.
(1) It shall use its best efforts in accordance with Prudent
Utility Practice to acquire and construct, or cause to be acquired
and constructed, any Capital Additions or Capital Improvements, in
accordance with the plans and specifications therefor, as modified
from time to time with due diligence and in a sound and economical
manner; and (2) it shall at all times use its best efforts to
operate or cause to be operated the System properly and in an
efficient manner, consistent with Prudent Utility Practice, and
shall use its best efforts to maintain, preserve, reconstruct and
keep the same or cause the same to be so maintained, preserved,
reconstructed and kept, with the appurtenances and every part and
parcel thereof, in good repair, working order and condition, and
shall from time to time make, or use its best efforts to cause to
be made, all necessary and proper repairs, replacement and renewals
so that at all times the operation of the System may be properly
and advantageously conducted.
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(d) TITLE. It has or will obtain lawful title, whether such
title is in fee or lesser interest, to the lands, buildings,
structures and facilities constituting the System, that it warrants
that it will defend the title to all the aforesaid lands,
buildings, structures and facilities, and every part thereof, for
the benefit of the owners of the Priority Bonds, against the claims
and demands of all persons whomsoever, that it is lawfully
qualified to pledge the Pledged Revenues to the payment of the
Priority Bonds in the manner prescribed herein, and has lawfully
exercised such rights.
(e) LIENS. It will from time to time and before the same
become delinquent pay and discharge all taxes, assessments and
governmental charges, if any, which shall be lawfully imposed upon
it, or the System; it will pay all lawful claims for rents,
royalties, labor, materials and supplies which if unpaid might by
law become a lien or charge thereon, the lien of which would be
prior to or interfere with the liens hereof, so that the priority
of the liens granted hereunder shall be fully preserved in the
manner provided herein, and it will not create or suffer to be
created any mechanic's, laborer's, materialman's or other lien or
charge which might or could be prior to the liens hereof, or do or
suffer any matter or thing whereby the liens hereof might or could
be impaired; provided however, that no such tax, assessment or
charge, and that no such claims which might be used as the basis
of a mechanic's, laborer's, materialman's or other lien or charge,
shall be required to be paid so long as the validity of the same
shall be contested in good faith by the City.
(f) NO FREE SERVICE. No free service or service otherwise than
in accordance with the established rate schedule shall be
furnished, directly or indirectly, by the System to any person,
firm, corporation or other entity, other than the City. No part
of the salary of any official or employee of the City or his
replacement shall be paid from Pledged Revenues unless and only to
the extent the duties and performances of such official or employee
or his replacement appertain directly to the System. To the extent
the City receives the services of the System, such services shall
be accounted for according to the established rate schedule.
(g) FURTHER ENCUMBRANCE. It will not additionally encumber
the Pledged Revenues in any manner, except as permitted in this
Ordinance in connection with Priority Bonds, unless said
encumbrance is made junior and subordinate in all respects to the
liens, pledges, covenants and agreements of this Ordinance; but the
right of the City to issue Subordinated Obligations payable in
whole or in part from a subordinate lien on the Pledged Revenues
is specifically recognized and retained.
(h) SALE, LEASE OR DISPOSAL OF PROPERTY. No part of the
System shall be sold, leased, mortgaged, demolished, removed or
otherwise disposed of, except as follows:
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(1) To the extent permitted by law, the City may sell
or exchange at any time and from time to time any property or
facilities constituting part of the System only if (A) it
shall determine such property or facilities are not useful in
the operation of the System, or (B) the proceeds of such sale
are $250,000 or less, or it shall have received a certificate
executed by the Engineer of Record and the City Manager
stating, in their opinion, that the fair market value of the
property or facilities exchanged is $250,000 or less, or (C)
if such proceeds or fair market value exceeds $250,000 it
shall have received a certificate executed by the Engineer of
Record and the City Manager stating (i) that system within
the System of which the property or facilities comprises a
part thereof and (ii) in their opinion, that the sale or
exchange of such property or facilities will not impair the
ability of the City to comply during the current or any future
Year with the provisions of clause (k) of this Section. The
proceeds of any such sale or exchange not used to acquire
other property necessary or desirable for the safe or effi-
cient operation of the System shall forthwith, at the option
of the City (i) be used to redeem or purchase Priority Bonds,
or (ii) otherwise be used to provide for the payment of
Priority Bonds. The foregoing notwithstanding, if such
property or facilities sold or exchanged constituted property
or facilities comprising all or a part of a system within the
System, the acquisition, improvement or extension of such
system having not been financed by the City in any manner with
the proceeds of Priority Bonds, or with the proceeds of
obligations which were refunded in whole or in part with the
proceeds of Priority Bonds, then the City may utilize the
proceeds of such sale or exchange for any lawful purpose;
(2) To the extent permitted by law, the City may lease
or make contracts or grant licenses for the operation of, or
make arrangements for the use of, or grant easements or other
rights with respect to, any part of the System, provided that
any such lease, contract, license, arrangement, easement or
right (A) does not impede the operation by the City of the
System and (B) does not in any manner impair or adversely
affect the rights or security of the owners of the Priority
Bonds under this Ordinance; and provided, further, that if the
depreciated cost of the property to be covered by any such
lease, contract, license, arrangement, easement or other right
is in excess of $500,000, the City shall have received a
certificate executed by the Engineer of Record and the City
Manager that the action of the City with respect thereto does
not result in a breach of the conditions under this clause
(2). Any payments received by the City under or in connection
with any such lease, contract, license, arrangement, easement
or right in respect of the System or any part thereof shall
constitute Gross Revenues.
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(i) BOOKS, RECORDS AND ACCOUNTS. It shall keep proper books,
records and accounts separate and apart from all other records and
accounts, in which complete and correct entries shall be made of
all transactions relating to the System and the City shall cause
said books and accounts to be audited annually as of the close of
each Year by the Accountant.
(j) INSURANCE. (1) Except as otherwise permitted in clause
(2) below, it shall cause to be insured such parts of the System
as would usually be insured by corporations operating like
properties, with a responsible insurance company or companies,
against risks, accidents or casualties against which and to the
extent insurance is usually carried by corporations operating like
properties, including, to the extent reasonably obtainable, fire
and extended coverage insurance, insurance against damage by
floods, and use and occupancy insurance. Public liability and
property damage insurance shall also be carried unless the City
Attorney gives a written opinion to the effect that the City is not
liable for claims which would be protected by such insurance. At
any time while any contractor engaged in construction work shall
be fully responsible therefor, the City shall not be required to
carry insurance on the work being constructed if the contractor is
required to carry appropriate insurance. All such policies shall
be open to the inspection of the bondholders and their repre-
sentatives at all reasonable times.
(2) In lieu of obtaining policies for insurance as provided
above, the City may self -insure against risks, accidents, claims
or casualties described in clause (1) above.
(3) The annual audit hereinafter required shall contain a
section commenting on whether or not the City has complied with the
requirements of this Section with respect to the maintenance of
insurance, and listing the areas of insurance for which the City
is self-insuring, all policies carried, and whether or not all
insurance premiums upon the insurance policies to which reference
is hereinbefore made have been paid.
(k) RATE COVENANT. It will fix, establish, maintain and
collect such rates, charges and fees for the use and availability
of the System at all times as are necessary to produce Gross
Revenues and other Pledged Revenues equal to the greater of amounts
determined in accordance with clauses (1) or (2) below, to -wit,
amounts sufficient (1) (A) to pay all current Operating Expenses
of the System, and (B) to produce Net Revenues for each Year at
least equal to 1.25 times the Average Annual Principal and Interest
Requirements of all then outstanding Priority Bonds; or (2) to pay
the sum of (A) all current Operating Expenses, (B) the Average
Annual Principal and Interest Requirements on the then outstanding
Priority Bonds, (C) required deposits to the Reserve Fund required
for the Priority Bonds, and (D) amounts required to pay all other
obligations of the System reasonably anticipated to be paid from
Gross Revenues during the current Year. The calculation of Average
Annual Principal and Interest Requirements on all outstanding
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Priority Bonds shall be net of capitalized interest for such
Priority Bonds only if the moneys in the Capitalized Interest
Account received from proceeds of such Priority Bonds are invested
in Government Obligations. The foregoing notwithstanding, such
rates, charges and fees shall be fixed, established, maintained and
collected at a level sufficient to enable the City to pay debt
service on Priority Bonds during the current Year.
(1) AUDITS. After the close of each year while any Priority
Bonds are outstanding, an audit will be made of the books and
accounts relating to the System and the Pledged Revenues by the
Accountant. As soon as practicable after the close of each such
year, and when said audit has been completed and made available to
the City, a copy of such audit for the preceding year shall be
mailed to any holder of the then outstanding Priority Bonds who
shall so request in writing. Such annual audit reports shall be
open to the inspection of the registered owners of the Priority
Bonds and their agents and representatives at all reasonable times.
(m) GOVERNMENTAL AGENCIES. It will comply with all of the
terms and conditions of any and all franchises, permits and
authorizations applicable to or necessary with respect to the
System, and which have been obtained from any governmental agency;
and the City has or will obtain and keep in full force and effect
all franchises, permits, authorization and other requirements
applicable to or necessary with respect to the acquisition,
construction, equipment, operation and maintenance of the System.
(n) NO COMPETITION. To the extent it legally may, it will
not grant any franchise or permit for the acquisition, construction
or operation of any competing facilities which might be used as a
substitute for the System's facilities, and, to the extent that it
legally may, the City will prohibit any such competing facilities.
(o) RIGHTS OF INSPECTION. The Engineer of Record or any
registered owner of $100,000 in aggregate principal amount of the
Priority Bonds then outstanding shall have the right at all
reasonable times to inspect the System and all records, accounts
and data of the City relating thereto, and upon request the city
shall furnish to the Engineer of Record or such registered owner,
as the case may be, such financial statements, reports and other
information relating to the City and the System as the Engineer of
Record or such registered owner may from time to time reasonably
request.
Section 23. COVENANTS REGARDING TAX -EXEMPTION. That the
Issuer covenants to refrain from any action which would adversely
affect, or to take such action as to ensure, the treatment of the
Bonds as obligations described in section 103 of the Code, the
interest on which is not includable in the "gross income" of the
holder for purposes of federal income taxation. In furtherance
thereof, the Issuer covenants as follows:
-36-
(a) to take any action to assure that no more than ten
percent of the proceeds of the Bonds (less amounts deposited
to a reserve fund, if any) are used for any "private business
use", as defined in section 141(b)(6) of the Code or, if more
than ten percent of the proceeds are so used, that amounts,
whether or not received by the Issuer, with respect to such
private business use, do not, under the terms of this
Ordinance or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than ten
percent of the debt service on the Bonds, in contravention of
section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that
the "private business use" described in subsection (a) hereof
exceeds five percent of the proceeds of the Bonds (less
amounts deposited into a reserve fund, if any) then the amount
in excess of five percent is used for a "private business use"
which is "related" and not "disproportionate", within the
meaning of section 141(b)(3) of the Code, to the governmental
use;
(c) to take any action to assure that no amount which
is greater than the lesser of $5,000,000, or five percent of
the proceeds of the Bonds (less amounts deposited into a
reserve fund, if any) is directly or indirectly used to
finance loans to persons, other than state or local
governmental units, in contravention of section 141(c) of the
Code;
(d) to refrain from taking any action which would
otherwise result in the Bonds being treated as "private
activity bonds" within the meaning of section 141(b) of the
Code;
(e) to refrain from taking any action that would result
in the Bonds being "federally guaranteed" within the meaning
of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds
of the Bonds, directly or indirectly, to acquire or to replace
funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the
Code) which produces a materially higher yield over the term
of the Bonds, other than investment property acquired with -
(1) proceeds of the Bonds invested for a reasonable
temporary period of three years or less or, in the case
of a refunding bond, for a period of 30 days or less
until such proceeds are needed for the purpose for the
Bonds are issued,
(2) amounts invested in a bona fide debt service
fund, within the meaning of section 1.103-13(b)(12) of
the Treasury Regulations, and
-37-
(3) amounts deposited in any reasonably required
reserve or replacement fund to the extent such amounts
do not exceed ten percent of the proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds of the
Bonds or amounts treated as proceeds of the Bonds, as may be
necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to
arbitrage) and, to the extent applicable, section 149(d) of
the Code (relating to advance refundings);
(h) to pay to the United States of America at least once
during each five-year period (beginning on the date of
delivery of the Bonds) an amount that is at least equal to 90
percent of the "Excess Earnings", within the meaning of
section 148(f) of the Code and to pay to the United States of
America, not later than 60 days after the Bonds have been paid
in full, 100 percent of the amount then required to be paid
as a result of Excess Earnings under section 148(f) of the
Code; and
(i) to maintain such records as will enable the Issuer
to fulfill its responsibilities under this Section and section
148 of the Code and to retain such records for at least six
years following the final payment of principal and interest
on the Bonds.
It is the understanding of the Issuer that the covenants contained
herein are intended to assure compliance with the Code and any
regulations or rulings promulgated by the U. S. Department of the
Treasury pursuant thereto. In the event that regulations or
rulings are hereafter promulgated which modify, or expand
provisions of the Code, as applicable to the Bonds, the Issuer will
not be required to comply with any covenant contained herein to the
extent that such modification or expansion, in the opinion of
nationally -recognized bond counsel, will not adversely affect the
exemption from federal income taxation of interest on the Bonds
under section 103 of the Code. In the event that regulations or
rulings are hereafter promulgated which impose additional
requirements which are applicable to the Bonds, the Issuer agrees
to comply with the additional requirements to the extent necessary,
in the opinion of nationally -recognized bond counsel, to preserve
the exemption from federal income taxation of interest on the Bonds
under section 103 of the Code. In addition, the City Manager, any
Assistant City Manager and the Director of Finance are hereby
authorized to execute any instrument concerning or relating to the
tax-exempt status of the Bonds.
Section 24. TAXABLE OBLIGATIONS. That the provisions of
Section 23 of this Ordinance notwithstanding, the City reserves the
ability to issue Additional Priority Bonds in a manner such that
such obligations are not obligations described in section 103(a)
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of the Code or are obligations which constitute "private activity
bonds" within the meaning of section 141(b) of the Code.
Section 25. AMENDMENT OF ORDINANCE. (a) That the registered
owners of a majority in aggregate principal amount of the Priority
Bonds then outstanding shall have the right from time to time to
approve any amendment to this Ordinance which may be deemed
necessary or desirable by the City, provided, however, that without
the consent of the registered owners of all of the Priority Bonds
at the time outstanding, nothing herein contained shall permit or
be construed to permit the amendment of the terms and conditions
in this Ordinance or in the Priority Bonds so as to:
(1) Make any change in the maturity of any of the outstanding
Priority Bonds;
(2) Reduce the rate of interest borne by any of the
outstanding Priority Bonds;
(3) Reduce the amount of the principal payable on the
outstanding Priority Bonds;
(4) Modify the terms of payment of principal of, premium, if
any, or interest on the outstanding Priority Bonds or
impose any conditions with respect to such payment;
(5) Affect the rights of the registered owners of less than
all of the Priority Bonds then outstanding;
(6) Amend this clause (a) of this Section; or
(7) Change the minimum percentage of the principal amount of
Priority Bonds necessary for consent to any amendment;
unless such amendment or amendments be approved by the registered
owners of all of the Priority Bonds then outstanding.
(b) That if at any time the City shall desire to amend the
Ordinance under this Section, the City shall cause notice of the
proposed amendment to be published in a financial newspaper or
journal published in The City of New York, New York, and a
newspaper of general circulation in the City, once during each
calendar week for at least two successive calendar weeks. Such
notice shall briefly set forth the nature of the proposed amendment
and shall state that a copy thereof is on file at the principal
office of the Paying Agent/Registrar for inspection by all holders
of Priority Bonds. Such publication is not required, however, if
notice in writing is given to each registered owner of Priority
Bonds.
(c) That whenever at any time not less than 30 days, and
within one year, from the date of the first publication of said
notice or other service of written notice the City shall receive
an instrument or instruments executed by the registered owners of
-39-
at least a majority in aggregate principal amount of the Priority
Bonds then outstanding, which instrument or instruments shall refer
to the proposed amendment described in said notice and which
specifically consent to and approve such amendment in substantially
the form of the copy thereof on file with the Paying Agent/Reg-
istrar, the governing body of the City may pass the amendatory
ordinance in substantially the same form.
(d) That upon the passage of any amendatory ordinance
pursuant to the provisions of this Section, this Ordinance shall
be deemed to be amended in accordance with such amendatory
ordinance, and the respective rights, duties and obligations under
this Ordinance of the City and all the registered owners of then
outstanding Priority Bonds and all future Priority Bonds shall
thereafter be determined, exercised and enforced hereunder, subject
in all respects to such amendments.
(e) That any consent given by the registered owner of a
Priority Bond pursuant to the provisions of this Section shall be
irrevocable for a period of six months from the date of the first
publication of the notice provided for in this Section, and shall
be conclusive and binding upon all future registered owners of the
same Priority Bond during such period. Such consent may be revoked
at any time after six months from the date of the first publication
of such notice by the registered owner who gave such consent, or
by a successor in title, by filing notice thereof with the Paying
Agent/Registrar and the City, but such revocation shall not be
effective if the registered owners of at least a majority in
aggregate principal amount of the then outstanding Priority Bonds
as in this Section defined have, prior to the attempted revoca-
tion, consented to and approved the amendment.
(f) The foregoing provisions of this Section notwithstanding,
the City by action of the City Council may amend this Ordinance for
any one or more of the following purposes:
(1) To add to the covenants and agreements of the City
in this Ordinance contained, other covenants and agreements
thereafter to be observed, grant additional rights or remedies
to the registered owners of the Priority Bonds or to
surrender, restrict or limit any right or power herein
reserved to or conferred upon the City;
(2) To make such provisions for the purpose of curing
any ambiguity, or curing, correcting or supplementing any
defective provision contained in this Ordinance, or in regard
to clarifying matters or questions arising under this
Ordinance, as are necessary or desirable and not contrary to
or inconsistent with this Ordinance and which shall not
adversely affect the interests of the registered owners of the
Priority Bonds then outstanding;
(3) To modify any of the provisions of this Ordinance
in any other respect whatever, provided that (i) such
-40-
modification shall be, and be expressed to be, effective only
after all Bonds and each series of Additional Priority Bonds
outstanding at the date of the adoption of such modification
shall cease to be outstanding, and (ii) such modification
shall be specifically referred to in the text of all Priority
Bonds issued after the date of the adoption of such
modification;
(4) To make such amendments to this Ordinance as may be
required, in the opinion of nationally recognized bond counsel
acceptable to the City, to ensure compliance with sections 103
and 141 through 150 of the Code and the regulations
promulgated thereunder and applicable thereto;
(5) To make such changes, modifications or amendments
as may be necessary or desirable in order to allow the owners
of the Priority Bonds to thereafter avail themselves of a
book -entry system for payments, transfers and other matters
relating to the Priority Bonds, which changes, modifications
or amendments are not contrary to or inconsistent with other
provisions of this Ordinance and which shall not adversely
affect the interests of the owners of the Priority Bonds;
(6) To make such changes, modifications or amendments
as may be necessary or desirable in order to obtain or
maintain the granting of a rating on the Priority Bonds by a
Rating Agency or to obtain or maintain a Credit Facility; and
(7) To make such changes, modifications or amendments
as may be necessary or desirable, which shall not adversely
affect the interests of the owners of the Priority Bonds, in
order, to the extent permitted by law, to facilitate the
economic and practical utilization of interest rate swap
agreements, foreign currency exchange agreements, or similar
type of agreements with respect to the Priority Bonds.
Notice of any such amendment may be published by the City in the
manner described in clause (b) of this Section; provided, however,
that the publication of such notice shall not constitute a
condition precedent to the adoption of such amendatory ordinance
and the failure to publish such notice shall not adversely affect
the implementation of such amendment as adopted pursuant to such
amendatory ordinance.
Section 26. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
BONDS. (a) That in the event any outstanding Bond is damaged,
mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar
shall cause to be printed, executed, and delivered, a new bond of
the same principal amount, maturity, and interest rate, as the
damaged, mutilated, lost, stolen, or destroyed Bond, in replacement
for such Bond in the manner hereinafter provided.
-41-
(b) Application for replacement of damaged, mutilated, lost,
stolen, or destroyed Bonds shall be made to the Paying
Agent/Registrar. In every case of loss, theft, or destruction of
a Bond, the applicant for a replacement bond shall furnish to the
City and to the Paying Agent/Registrar such security or indemnity
as may be required by them to save each of them harmless from any
loss or damage with respect thereto. Also, in every case of loss,
theft, or destruction of a Bond, the applicant shall furnish to the
City and to the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Bond, as
the case may be. In every case of damage or mutilation of a Bond,
the applicant shall surrender to the Paying Agent/Registrar for
cancellation the Bond so damaged or mutilated.
(c) Notwithstanding the foregoing provisions of this Section,
in the event any such Bond shall have matured, and no default has
occurred which is then continuing in the payment of the principal
of, redemption premium, if any, or interest on the Bond, the City
may authorize the payment of the same (without surrender thereof
except in the case of a damaged or mutilated Bond) instead of
issuing a replacement Bond, provided security or indemnity is
furnished as above provided in this Section.
(d) Prior to the issuance of any replacement bond, the Paying
Agent/Registrar shall charge the owner of such Bond with all legal,
printing, and other expenses in connection therewith. Every
replacement bond issued pursuant to the provisions of this Section
by virtue of the fact that any Bond is lost, stolen, or destroyed
shall constitute a contractual obligation of the City whether or
not the lost, stolen, or destroyed Bond shall be found at any time,
or be enforceable by anyone, and shall be entitled to all the
benefits of this Ordinance equally and proportionately with any and
all other Bonds duly issued under this Ordinance.
(e) In accordance with Section 6 of Article 717k-6, Texas
Revised Civil Statutes, as amended, this Section of this Ordinance
shall constitute authority for the issuance of any such replacement
bond without necessity of further action by the governing body of
the City or any other body or person, and the duty of the
replacement of such bonds is hereby authorized and imposed upon the
Paying Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such bonds in the form and manner and with
the effect, as provided in Section 5(d) of this Ordinance for Bonds
issued in exchange for other Bonds.
Section 27. REASONS FOR REFUNDING. That the City has
determined that there are many financial and operational benefits
to establishing a unified water, wastewater and gas utility system.
The City hereby finds that the financial benefits consist
essentially of (1) reducing projected rate increases through
leveling and extending outstanding water and wastewater debt
service requirements, (2) enabling future Capital Additions and
Capital Improvements to the System to be financed in a more
economically advantageous manner to ratepayers and the City, and
-42-
(3) discharging the City's tax pledge for debt issue to make
improvements to the wastewater system. As a result of such
findings, the City has determined that it is in the best interest
of the City to issue the Bonds for the purpose of refunding the
Refunded Bonds.
Section 28. APPROVAL AND REGISTRATION OF BONDS. That the
Mayor of the City is hereby authorized to have control of the Bonds
and all necessary records and proceedings pertaining to the 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 the 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 accompanying the Bonds, and the seal of said
Comptroller shall be impressed, or placed in facsimile, on each
such certificate.
Section 29. SALE OF SERIES 1990 BONDS. (a) That the sale
of the Bonds to Dean Witter Reynolds Inc. (the "Purchaser"), at
the purchase price described in below described Bond Purchase
Contract (the "Purchase Contract"), is hereby authorized, ratified
and confirmed. One Bond in the principal amount maturing on each
maturity date as set forth in Section 2 hereof shall be delivered
to the Purchaser, and the Purchaser shall have the right to
exchange such bonds as provided in Section 5 hereof without cost.
(b) That the Purchase Contract setting forth the terms of
the sale of the Bonds to the Purchaser thereof referred to in
clause (a) above, in substantially the form attached to this
Ordinance, is hereby accepted, approved and authorized to be
delivered in executed form to said Purchaser. The Purchase
Contract shall be executed by the Mayor and attested by the City
Secretary.
(c) That the offering documents prepared in connection with
the sale of the Bonds, in substantially the form attached to this
Ordinance, are hereby accepted, approved and authorized to be
delivered in executed form to the Purchaser.
Section 30. ESCROW AGREEMENT. That the City Manager of the
City is hereby authorized and directed to execute, the City
Secretary is authorized to attest, and the City Attorney is
authorized to approve as to form, on behalf of the City, the
"Escrow Agreement" covering the use of the moneys to be deposited
with the "Escrow Agent" therein named for the benefit of the
holders of the Refunded Bonds, the form of such Escrow Agreement
being in substantially the form attached to this Ordinance.
Section 31. MUNICIPAL BOND INSURANCE. That the City Manager
or the designee thereof is hereby authorized to execute on or
before the date of delivery of the Bonds any instruments necessary
to obtain a municipal bond insurance policy from Financial Guaranty
-43-
Insurance Company (the "Bond Insurer") in support of the Bonds, as
is anticipated by the offering documents and the Purchase Contract
herein approved with respect to the sale of the Bonds, including,
but not limited to, any insurance commitment issued by the Bond
Insurer which agrees to issue a municipal bond new issue insurance
policy in support of the Bonds. For so long as the Bond Insurer
insures the Bonds, the City hereby agrees that (i) in the event the
City exercises its right under Section 11 of this Ordinance to
replace or substitute a Credit Facility for cash or Eligible
Investments on deposit in the Reserve Fund, it will receive the
prior written consent of the Bond Insurer to such replacement or
substitution and (ii) in the event the City effects a defeasance
of the Bonds, it will utilize only those Government Obligations
which are direct obligations of the United States of America.
Section 32. PREAMBLE. That the preamble to this Ordinance
is hereby incorporated by reference, and is to be considered a part
of the operative text of this Ordinance.
Section 33. IMMEDIATE EFFECT. That this Ordinance shall be
effective immediately from and after its passage in accordance with
the provisions of Section 14(f) of Article II of the Charter of the
City, and it is accordingly so ordained.
SIGNED AND SEALED THIS 15th DAY OF November, 1990.
City Secretary
(SEAL)
APPROVED AS. TO FORM:
C KttoYney
c
Ma or, CitS of Corpus Christi, Texas
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APPENDIX A - REFUNDED BONDS
OBNERAL D4PROVEMENT REFUNDING BONDS, SERIES 1963-A
MATURITY
Mal COUPON
1991 7.50%
1992
1993
1994
1995
1996
1997
1998
1999
7.75%
8.00%
8.20%
9.40%
9.00%
9.05%
9.15%
9.25%
PRINCIPAL
OUT-
STANDING
$6,955,000
7,900,000
5,695,000
9,800,000
11,130,000
7,875,000 •
8,630000 •
9,565,000 •
5.825.000 •
$76,395,000
PRINCIPAL
REFUNDED
$620,000
900,000
940,000
610,000
1,170,000
1,010,000 •
1,190,000 •
1,360,000 •
0 •
$7,700,000
GENERAL IMPROVEMENT BONDS SERIES 1986
MATURITY
1(1/17 COUPON
1991 8.00%
1992 8.00%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
8.00%
6.00%
7.25%
6.00%
6.20%
6.25%
6.25%
6.25%
6.50%
6.50%
6.50%
6.50%
6.00%
6.00%
PRINCIPAL
OUT-
STANDING
5900,000
1.000,000
1.000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,675,000
1,675,000
1,675,000
1,675,000
1,875,000
1,676,000
1,675,000
1.875.000
$n.9D ,000
PRINCIPAL
REFUNDED
$900,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,875,000
1,875,000
1,676,000
1,575,000
1,675,000
1,875,000
0
0
119,150,000
GENERAL IMPROVEMENT BONDS, SERIS 1919
MATURITY
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
21101
2002
2003
2004
2005
2006
2007
2008
2009
COUPON
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
1.75%
7.05%
7.10%
7.15%
7.20%
7.25%
7.30%
7.35%
7.00%
7.00%
7.001
PRINCIPAL
OUT-
STANDING
5400,000
300,000
500.000
600.000
600,000
250,000
250,000
250,000
250,000
850,000
1,200,000
1.200,000
1,210,000
1,200,000
1,200,000
1,200,000
1,200,000
1.200,000
1.550.000
515,600,000
REDEMPTION
DATE & PRICE
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
REDEMPTION
DATE & PRICE
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
MAT. 0 PAR
PRINCIPAL REDEMPTION
REFUNDED DATE & PRICE
• Maturity Valls of Capital Appreciation Ikeda
10
500,000 MAT. 0 PAR
500,000 MAT. 0 PAR
600,000 MAT. 0 PAR
600,000 MAT. 0 PAR
250,000 MAT. 0 MR
250,000 MAT. 0 PAR
250,000 MAT. 0 PAR
250,000 MAT. 0 PAR
650,000 MAT. 0 PAR
0
0
0
0
0
1,200,000 MAT. 0 PAR
0
0
0
$5,250,000
COMBINATION TAX & REVENUE CERTIFICATES OP OBLIGATION,
SERIES 1990
MATURITY
1991
1992
1993
1994
1995
COUPON
8.35%
6.90%
6.35%
6.40%
6.50%
PRINCIPAL
OUT- PRINCIPAL REDEMPTION
STANDING REFUNDED DATE & PRICE
3335,000 10
360,000 360,000 MAT. 0 PAR
380,000 300,000 MAT. 0 PAR
410,000 410,000 MAT. 0 PAR
435.000 43y MAT. 0 PAR
51,920,000 51,585,000
GENERAL D PROVEMENT BONDS, SERIES 1990
MATURITY
3D COUPON
1991 9.00%
1992
1993
1994
1995
1996
1997
1991
1999
2000
2001
2002
21133
2004
2005
2006
2007
2008
2009
2010
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
7.75%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
7.00%
PRINCIPAL
OUT- PRINCIPAL REDEMPTION
STANDING REFUNDED DATE & PRICE
1100,000 10
100,000 100,000 MAT. 0 PAR
100,000 100,000 MAT. 0 PAR
100,000 100,000 MAT. 0 PAR
100,000 100,000 MAT. 0 PAR
325,000 325,000 MAT. 0 PAR
350,000 350,000 MAT. 0 PAR
375,000 375,000 MAT. 0 PAR
400,000 400,000. MAT. 0 PAR
475,000 100,000 MAT. 0 PAR
500,000 320,000 MAT. 0 PAR
525,000 420,000 MAT. 0 PAR
575,000 575,000 MAT. 0 PAR
625,000 560,000 MAT. 0 PAR
675,00D 675,000 MAT. 0 PAR
700,000 210,000 MAT. 0 PAR
750,000 750,000 MAT. 0 PAR
825,000 250,000 MAT. 0 PAR
175,000 290,000 MAT. 0 PAR
i 30 000 MAT. 0 PAR
19,425,000 16,050,000
WATERWORXS SYSTEM REVENUE REFUNDING BONDS, SERIES 1985
PRINCIPAL
MATURITY OUT- PRINCIPAL REDEMPTION
I7/101 COUPON STANDING REPUNDED DATE & PRICE
1991 7.50% 11,965,000 11,965,000 MAT. 0 PAR
1992 7.75% 2,010,000 2,010,000 MAT. O PAR
1993 8.003 2,045,000 2,045,000 MAT. 0 PAR
1994 8.253 2090,000 2,090,000 MAT. 0 PAR
1995 8.50% 2,155,000 2,155,000 MAT. 0 PAR
1996 1.703 2,123003 2,125,000 7/10/95 0102
1997 1.103 2,015,000 2,065,000 7/10/95 0102
1998 8.903 2,050,000 2,050,000 7/10/950102
1999 9.003 2,010,000 2,010,000 7/10/95 0102
2002 9.25%
5.600.000 5.800.000 7/10/95 0l02
124,335,000 124,335,000
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI .
I, the undesigned, City Secretary of the City of Corpus
Christi, Texas, do hereby certify that the above and foregoing is
a true, full and correct copy of an Ordinance passed by the City
Council of the City of Corpus Christi, Texas (and of the minutes
pertaining thereto) on the 15th day of November, 1990, authorizing
the issuance of $64,660,000 Utility System Revenue Refunding
Bonds, Series 1990, which ordinance is duly of record in the
minutes of said City Council, 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 Vernon's Ann. Civ. Stat.,
art. 6252-17, as amended.
EXECUTED UNDER MY HAND AND SEAL of said City, this the 15th
day of November, 1990.
zit_
City Secretary, City of Corpus
Christi, Texas
(SEAL)
Corpus Christi, Texas �}
day of ���.lc-Q �� Y t Q � , 19 / 6
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing
ordinance an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances at three regular
meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance finally on the date it is introduced, or at
the present meeting of the City Council.
Respectfully,
Council Members
Respectfully,
YOR
THE CITY OF CORPUS CHRISTI
The above ordinance was passed by the following vote:
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
045
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(117:: C