HomeMy WebLinkAbout1991/12/10-Minutes-City Council124
Council Met
Members present
Invocation
Pledge of
Allegiance
Minutes of
December 3, 1991
Withdrew MAC Nos.
G-9416 and G79417
Withdrew MAC No.
C-13165
M&C No. G-9403
cont for one week,
and MAC No.
BH -0076 cont for
one week
Consent agenda
approved
CITY COUNCIL MEETING
DECEMBER 10, 1991
On the 10th day of December, A.D., 1991, the City Council of the City of Fort Worth,
Texas, met in regular session, with the following members and officers present, to -wit:
Mayor Kay Granger; Mayor Pro tempore Virginia Nell Webber; Council Members Chuck
Silcox, Morris Matson, Eugene McCray, Jewel Woods, Bill Meadows, and David Chappell; City
Manager David- Ivory; City Attorney Wade Adkins; Acting City Secretary Gloria Pearson;
Council Member Carols Puente absent; with more than a quorum present,.at which time the
following business was transacted:
The invocation was given by The Very Reverend Gaylord Pool, Executive Director of
Tarrant Area Community of Churches.
The Pledge of Allegiance was recited.
On motion of Council Member Meadows, seconded by Council Member Woods, the minutes of
the meeting of December 3, 1991, were approved.
Council Member Chappell requested that Mayor and Council Communication Nos. G-9416 and
G-9417 be withdrawn from the consent agenda.
Council Member Matson requested that Mayor and Council Communication No. C-13165 be
withdrawn from the consent agenda.
City Manager Ivory requested that Mayor and Council Communication No. G-9403 be
continued for one week and that Mayor and Council Communication No. BH -0076 be continued for
one week.
On motion of Council Member Chappell, seconded by Council Member Woods, the consent
agenda, as amended, was approved.
Resignation of Council Member Chappell made a motion, seconded by Council Member Woods, that the
The Reverend W.B. resignation of The Reverend W.B. Langham from City Zoning Commission and Fort Worth Alliance
La ng ha m Airport Zoning Commission be accepted with regrets. When the motion was put to a vote by
the Mayor, it prevailed unanimously.
Mayor Granger Mayor Granger announced that the City Council is asking for the citizens' help in a
announced redraw City-wide project to redraw district lines that will insure City government representation
district lines is as balanced as its population and advised citizens' that Citizens' Guides for
reapportionment for the City's eight single member districts are available in the City
Secretary's Office located on the third floor of City Hall.
MAC OCS-368 There was presented Mayor and Council Communication No. OCS-368 from the Office of the
Liability Bonds City Secretary recommending that the City Council authorize the acceptance of liability
and cancellation bonds and approve the cancellation of liability bonds, with cancellation remaining in full
force and effect for all work performed prior to date of cancellation, as follows:
PARKWAY CONTRACTOR'S BOND
INSURANCE COMPANY
Metroplex Concrete Construction State Farm Fire and Casualty Insurance
Company
CANCELLATION
PARKWAY CONTRACTOR'S BOND CANCELLATION DATE INSURANCE COMPANY
Minutes of City Council T-3 Page 124
Del Weston Concrete
January 8, 1992 State Farm Fire and Casualty
Insurance Company .
M&C OCS-36 8
It was the consensus of the City
Council that the recommendation be adopted.
adopted
MAC OCS-369
There was presented Mayor and Council Communication No. OCS-369 from the Office of the
Claims
City Secretary recommending that
City Council refer notices of claims regarding alleged
damages and/or injuries to the Risk
Management Department, as follows:
Michael & Martha
1. Claimant:
Michael & Martha Madison
Madison
Date Received:
December 2, 1991
Date of Incident:
November 13, 1991
Location of Incident:
7325 Normandy
Estimate of Damages/
Injuries:
$50.00
Nature of Incident:
Claimants seek to recover cost of plumbing bill as
result of an alleged erroneous inspection by City
Water Department.
Charlene Smyth
2. Claimant:
Charlene Smyth
Date Received:
December 3, 1991
Date of Incident:
August 30, 1991
Location of Incident:
2000 Block of Cooks
Estimate of Damages/
Injuries:
$564.62
Nature of Incident:
Claimant alleges damages to automobile as result
of road conditions.
Tanya Nichole
3. Claimant:
Tanya Nichole Daniels
Daniels
Date Received:
December 3, 1991
Date of Incident:
November 18, 1991
Minutes of City Council T-3 Page 124
125
Tuesday, December 10, 1991
la ny a Hic hole
Location of Incident:
8700 Block of Trinity Blvd.
Daniels claim
Estimate of Damages/
cont.
Injuries:
$485.00
Nature of Incident:
Claimant alleges damages to automobile as result
of road conditions.
Judson P. Smith &
4. Claimant:
Judson P. Smith & Kathryn B. Smith
Kathryn B. Smith
Date Received:
December 3, 1991
Date of Incident:
November 1, 1991
Location of Incident:
2433 Medford Ct. W.
Estimate of Damages/
Injuries:
$177.00
Nature of Incident:
Claimants allege damages to sprinkler system as
result of action taken by City workers request
adjustment to water bill.
Richard Allen 5. Claimant: Richard Allen Thomas
Thomas Date Received: December 3, 1991
Date of Incident: Undeclared
Attorney: Kugle, Byrne & Alworth
Location of Incident: 3900 Mount Vernon
Estimate of Damages/
Injuries: $1,820.00
Nature of Incident: Claimant alleges injuries due to a fall sustained
by stepping into a two inch hole in the street.
Ricky Evans 6. Claimant: Ricky Evans
Date Received: December 4, 1991
Date of Incident: November 16, 1991
Location of Incident: Grandbury Road
Estimate of Damages/
Injuries: $140.00
Nature of Incident: Claimant alleges damages to vehicle as result of
road conditions.
B & W GRO. (Shed- 7. Claimant: B & W GRO. (Shedrich Lance Wiley)
rich Lance Wiley) Date Received: December 4, 1991
Date of Incident: November 14-17, 1991
Location of Incident: 2460 E. Rosedale
Estimate of Damages/
Injuries: $150.00 per day
Nature of Incident: Claimant alleges damages in the ability to conduct
business hampered by construction work blocking
access to place of business.
Regelio F. Flores 8. Claimant: Regelio F. Flores
Date Received: December 4, 1991
Date of Incident: November 15, 1991
Attorney: The Dent Law Firm
Location of Incident: 4000 Camp Bowie
Estimate of Damages/
Injuries: Undeclared
Nature of Incident: Claimant alleges injuries and damages as result of
an accident.
Farmers Insurance 9. Claimant: Farmers Insurance Group (Ms. Candice Baugh)
Group (Ms. Can- Date Received: December 2, 1991
dice Baugh) Date of Incident: November 14, 1991
Location of Incident: Centennial Road
Estimate of Damages/
Injuries: Undeclared
Nature of Incident: Claimant seeking subrogation rights on behalf of
their insured, Leonard Baker.
M&C OCS-369 adopted It was the consensus of the City Council that the recommendation be adopted.
M&C OCS-370 There was presented Mayor and Council Communication No. 370 from the Office of the
Correspondence from City Secretary recommending that correspondence received from Mrs. Lucy Jane Mock, 2612
Mrs. Lucy Jane Mock re Yeager Street, regarding garbage pick up on Friday after Thanksgiving and correspondence
garbage pick upJ1r. received from Mr. W.R. Watt, Jr., President of the Southwestern Exposition and Livestock
W.R. Watt, Jr. re Show, requesting permission to close Crestline Road temporarily through the stock show
closure of Crestline grounds beginning Monday, January 13, through Monday, February 3, 1992, be referred to the
Road City Manager. It was the consensus of the City Council that the recommendation be adopted.
Benefit Hearing It was the consensus of the City Council that the benefit hearing for the assessment
BH -0076 paving of Truman Drive from Stalcup Road to Flemmings Drive, be continued from day to day
Truman Drive from and from time to time and especially to the City Council meeting of December 19, 1991.
Stalcup Road to
Flemmings Drive It was the consensus of the City Council that consideration of Mayor and Council
M&C No. G-9403 re Communication No. G-9403, Recommendation to reject Texas Air Control Contract and
Texas Air Control discontinue Local Air Quality Program, be continued until December 19, 1991.
Contract be cont.
until December 19, 1991 There was presented Mayor and Council Communication No. G-9413 from the City Manager
M&C G-9413 re recommending that the City Council approve, confirm, and ratify his appointment of Mr.
appointment to the Franklin Burkley to the Personnel Commission, filling the unexpired term of Ms. Wyntress
Personnel Commission Ware, with a term of office expiring October 1, 1992. It was the consensus of the City
Council that the recommendation be adopted.
Minutes of City Council T-3 Page 125
126
Tuesday, December 10, 1991
There was presented Mayor and Council Communication No. G-9414 from the City Manager,
as follows:
M&C G-9414 re
amendments to the SUBJECT: AMENDMENTS TO THE FORT WORTH ELECTRICAL ORDINANCE NO. 10671
Fort Worth Electrical
Ordinance RECOMMENDATION:
It is recommended that the City Council amend Electrical Ordinance No. 10671 of
the City of Fort Worth and adopt the changes as follows:
DISCUSSION:
The Electrical Board of the City of Fort Worth is requesting that the Fort Worth
Electrical Ordinance No. 10671 be amended as follows:
Section 307 (Place under the existing paragraph.)
Fee Refunds. The Building Official may authorize the
refunding of any fee paid hereunder which was erroneously
paid or collected. Where work for which a permit has been
issued does not commence, and a request is made for a
cancellation of such permit within a 60 -day time limit, the
permit fee may be returned, upon request, minus an
administration charge of $15.00. After the 60 days, no fee
shall be returned.
(Place under Schedule 307A - Inspection Fees.)
Miscellaneous
Inspection outside normal work hours . . . $30.00 Per Hour
A two-hour minimum fee will be charged.
Section 1001(b) Be the holder of a valid electrician license issued by
another city, hereafter referred to as a reciprocal license,
which license has been valid for one year and is of a grade
equal to that for which the applicant is applying.
EXCEPTION: Applicants filing with a license from the
Tarrant County Electrical Examining Board or the Dallas
County Electrical Examining Board are exempt from the one
(1) year requirement.
Section 1005 Temporary Working Permit: Deleted effective January 1,
1991.
Delete all references to temporary working permit in this
code contained in Section 1006(a), (e) and (f), Section
1007(c) and (d).
Section 1011 Any applicant who passes an examination for any grade of
license and fails to obtain the license for the grade of
license as prescribed in this code, within a period of sixty
(60) calendar days of such examination date shall forfeit
the right to obtain such license until he again qualifies
himself by passing another examination or applies for a
license as required herein.
M&C G-9414 adopted It was the consensus of the City Council that the recommendation, as contained in Mayor and
Council Communication No. G-9414, be adopted.
Introduced an Council Member Chappell introduced an ordinance and made a motion that it be adopted.
Ordinance The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, Meadows, and Chappell
NOES: None
ABSENT: Council Member Puente
The ordinance, as adopted, is as follows:
Minutes of City Council T-3 Page 126
127
Tuesday, December 10, 1991
ORDINANCE NO. 10975
Ordinance No.
10975 AN ORDINANCE AMENDING THE ELECTRICAL CODE OF THE CITY OF FORT
WORTH, CODIFIED AS CHAPTER 11 OF THE CODE OF THE CITY OF FORT WORTH
(1986), AS AMENDED, BY AMENDING SECTION 307A - "INSPECTION FEES",
BY PROVIDING A FEE FOR INSPECTIONS OUTSIDE NORMAL HOURS AND BY
ADDING A PARAGRAPH AUTHORIZING REFUNDS OF FEES ERRONEOUSLY PAID OR
COLLECTED; BY AMENDING THE EXCEPTION TO SECTION 1001(B); BY
DELETING SECTION 1005 AND ALL REFERENCES TO IT IN SECTION 1006; BY
AMENDING SECTION 10119 "NULLIFICATION OF EXAMINATION", TO CHANGE
"WORKING DAYS" TO "CALENDAR DAYS"; PROVIDING THAT THIS ORDINANCE IS
CUMULATIVE OR ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A PENALTY CLAUSE FOR THE VIOLATION HEREOF; PROVIDING A
SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN PAMPHLET FORM;
PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING FOR PUBLICATION
IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
SECTION 8.
It shall be unlawful for any person to install, alter or repair any
electrical equipment in the City or cause the same to be done contrary to or in
violation of any of the provisions of this Code. Any person, firm or
corporation who violates, disobeys, omits, neglects or refuses to comply with
or who resists the enforcement of any of the provisions of this Code shall be
fined not more than Two Thousand Dollars ($2,000.00) for each offense. Each day
that a violation is permitted to exist shall constitute a separate offense.
SECTION 13.
This ordinance shall be in full force and effect from and after its
passage and publication as required by law and it is so ordained.
M&C G-9415 re There was presented Mayor and Council Communication No. G-9415 from the City Manager
settlement of claim stating that Donald and Susan Disney filed a claim for property damage and personal injuries
filed by Donald and they allegedly received on September 17, 1990, at 5800 Camp Bowie Boulevard as a result of
Susan Disney being struck by a City vehicle; that, while admitting no liability in this matter, the Risk
Management Department has negotiated with Mr. and Mrs. Disney through her attorney and has
agreed to a settlement of $35,000.00 subject to City Council approval; that the Director of
Fiscal Services certifies that funds for this expenditure are available in the current
budget, as appropriated, of the Insurance Fund; and recommending that the City Council
approve the settlement of claim filed by Donald and Susan Disney and authorize the City
Manager to expend the sum of $35,000.00 for the settlement agreed to by Mr. and Mrs. Disney,
their attorney, and the City of Fort Worth. It was the consensus of the City Council that
the recommendations be adopted.
M&C G-9416 re There was presented Mayor and Council Communication No. G-9416 from the City Manager
cont for one week stating that the lawsuit styled Gina Peabody V. City of Fort Worth and Arnold Delgado, Jr.;
Civil Action No. CA -4-89-404-E was filed on April 19, 1989, by Mr. Art Brender, Attorney at
Law, alleging various constitutional and civil rights violations along with various causes
of action in negligence arising from an incident involving Officer Arnold Delgado, Jr.;
that, while admitting no liability, but to avoid further and costly litigation, an agreement
has been reached to settle this lawsuit for $25,000.00; that the Director of Fiscal Services
certifies that funds for this expenditure are available in the current operating budget of
the Insurance Fund; and recommending that the City Council approve the settlement described
above; authorize the expenditure of $25,000.00 and taxable court costs not to exceed
$1,000.00 in order to complete the settlement; and authorize the appropriate City personnel
to execute the documents necessary to complete the settlement. Council Member Chappell made
a motion, seconded by Council Member Meadows, that consideration of Mayor and Council
Communication No. G-9416 be continued for one week and requested that staff place this item
on executive session for next week. When the motion was put to a vote by the Mayor, it
prevailed unanimously.
M&C G-9417 re There was presented Mayor and Council Communication No. G-9417 from the City Manager
cont for one week stating that the lawsuit styled Glenda Bruan, Individually and as Heir to the Estate of
Howard Glenn Elliott, Jr., vs. City of Fort Worth, Steve Warren, and Bill Donovan, Cause
No. 89-13362, was filed on November 6, 1989, by Mr. Ed Moore of the law firm of Windle
Turley, alleging various causes of action in negligence arising from an incident in which
Howard Glenn Elliott, Jr., died as a proximate result of the actions of Officer Steve
Warren; that, while admitting no liability, but to avoid further and costly litigation, an
agreement has been reached to settle this lawsuit in its entirety for $155,000.00; that the
Director of Fiscal Services certifies that the funds for this expenditure are available in
the current operating budget of the Insurance Fund; and recommending that the City Council
approve the settlement of the referenced lawsuit; authorize the expenditure of $155,000.00
and taxable court costs not to exceed $5,000.00 in order to complete the settlement; and
authorize the appropriate City personnel to execute the documents necessary to complete the
settlement. Council Member Chappell made a motion, seconded by Council Member Meadows, that
consideration of Mayor and Council Communication No. G-9417 be continued for one week and
requested staff to place this item on the agenda for an executive session. When the motion
was put to a vote by the Mayor, it prevailed unanimously. (See subsequent action to
reconsider Mayor and Council Communication No. G-9417 and subsequent approval of same.)
Minutes of City Council T-3 Page 127
128
Tuesday, December 10, 1991
M&C G-9418 re There was presented Mayor and Council Communication No. G-9418 from the City Manager
improvements to Page stating that the 1986 Capital Improvement Program included funds for the improvement of Page
Avenue from Hemphill Avenue from Hemphill Street to east of the Southern Pacific Railroad; that the street is in
Street to East of the the Worth Heights Target Area and previously has been constructed to City standards; that
Southern Pacific Rail- Community Development Block Grant funds will provide a portion of the construction cost;
road that the project is in Council District 9; that the proposed assessment totals $106,633.00;
land recommending that the City Council:
1. Declare the necessity for and order the improvements to Page Avenue from
Hemphill Street to East of the Southern Pacific Railroad, and
2. Authorize the assessment of a portion of the cost of the improvements to
Page Avenue against the owners of the abutting property, and
3. Approve the estimate of costs and amounts to be assessed as stated in the
Engineer's Estimate, and
4. Establish January 14, 1992, as the date of benefit hearing, and
5. Authorize the preparation of assessment rolls and notification of property
owners in accordance with the provisions of Article 1105b of Vernon's
Annotated Civil Statutes.
M&C G-9418 adopted On motion of Council Member Chappell, seconded by Council Member Woods, the recommendations
were adopted.
M&C G-9419 re
cont. for one week There was presented Mayor and Council Communication No. G-9419 from the City Manager,
as follows:
SUBJECT: ADOPTION OF THE CITY OF FORT WORTH AVIATION DEPARTMENT MINIMUM
STANDARDS FOR FIXED BASE OPERATORS AND OTHER AIRPORT TENANTS
RECOMMENDATION:
It is recommended that the City Council adopt the City of Fort Worth Aviation
Department Minimum Standards for Fixed Base Operators and other Airport Tenants.
DISCUSSION:
To properly operate the City's three airports within certain minimum standards
that will be fair and reasonable to all types of tenants, staff developed the
attached minimum standards document. In developing the document, input was
obtained at each airport. Additionally, the Federal Aviation Administration
reviewed and commented on the document. Research within the aviation industry
was conducted as part of the process of developing the standards, and the
Aviation Advisory Board held a special workshop to assist with the development
of the document. Although the majority of the minimum standards are new to the
City of Fort Worth, the document adopts some existing standards that have been
in existence for a number of years, they are:
1. Airport Rates & Charges
2. Nonpublic Aircraft Fuels Dispensing Agreement
3. Public Aircraft Fuels Dispensing Agreement
It should be noted that the existing Airport Rates & Charges as previously
approved by City Council, contained an error that has been corrected with its
adoption into this document. Article XVI, Schedule 3 (page 33 of the Minimum
Standards) NON-COMMERCIAL OPERATORS AND MILITARY, paragraph 2, referenced only
the Fort Worth Alliance Airport. This was incorrect, and has been revised to
include Meacham and Spinks Airports as well.
Also, Articles XVIII and XIX, NONPUBLIC AIRCRAFT FUELS DISPENSING AGREEMENT and
PUBLIC AIRCRAFT FUELS DISPENSING AGREEMENT have been revised to include the Fort
Worth Alliance and Spinks Airports. Additionally, revisions to these previously
existing documents have been made in accordance with current EPA and Texas Water
Commission rules, regulations, and laws.
FISCAL INFORMATION/CERTIFICATION:
No City funds will be expended.
Council Member Chappell made a motion, seconded by Council Member Meadows, that Mayor
and Council Communication No. G-9419 be continued for one week. When the motion was put to
a vote by the Mayor, it prevailed unanimously.
M&C G-9420 re There was presented Mayor and Council Communication No. G-9420 from the City Manager
Fairmount/Southside stating that the Fairmount/Southside Historic District is bordered by Magnolia on the north,
Historic District Jessamine on the south, Hemphill on the east and an alley parallel to 8th Avenue on the
west; that the City Council approved creation of the district in October 1990 and designated
property in the district as "HC" Historic and Cultural Landmark Subdistrict; that Ms. Gean
Gros presented a petition to City Council from various residents and property owners in the
district on November 5, 1991, requesting that the "HC" zoning classification be removed;
that the Department of Development reviewed the petition and was able to verify the
signatures of 166 property owners; that the procedure for removal of the "HC" classification
from property in the district would be for the owner of each lot who desires such removal
to apply for rezoning; that the applications would be reviewed by the Historic Landmark
Commission and the Zoning Commission and would be sent to City Council for action; that the
City staff would notify each property owner who signed the petition of the rezoning
Minutes of City Council T-3 Page 128
129
Tuesday, December 10, 1991
M&C G-9420 cont. procedures and would give him/her 90 days to file an application; that all applications
would then be processed as a single zoning case; that the usual rezoning application fee for
this request would be $1,500.00 if all lots were processed as one case, or $750.00 per lot
if each lot were processed as a separate case; and recommending that the City Council take
the following action:
1. Direct the City Manager to contact all property owners who signed the
petition submitted to City Council by Ms. Gean Gros on November 5, 1991,
and inform such owners how to apply for removal of the "HC" Historic and
Cultural Landmark Subdistrict designation from their property, and
2. Direct the City Manager to waive or not waive the application fee for
property owners who apply for removal of the "HC" designation within 90
days after being contacted by the Manager.
City Manager Ivory City Manager Ivory advised the City Council of two clarifications that need to be made
re M&C G-9420 on Mayor and Council Communication No. G-9420 and advised the City Council that staff will
prepare a letter in Spanish and in English that will be mailed to all property owners who
signed the petition submitted to City Council by Ms. Gean Gros and advised the City Council
that property owners will have 45 days in which to apply for removal of the "HC" designation
with waiver of application fee and after the 45 days the application fee will revert back
to its original cost of $750.00 per lot; and advised the City Council that the cases need
to be heard on an individual basis.
Mayor Granger reII Mayor Granger directed staff to include in the letters to the property owners an
M&C G-9420 explanation of the benefits of having a "HC" zoning classification.
Council Member Chappell made a motion, seconded by Council Member Meadows, that Mayor
and Council Communication No. G-9420 be approved, with waiver of filing fee for a period of
45 days after the letter is mailed.
Mayor Granger intro- Mayor Granger introduced Master Tim Branch, Student Council President from Sunrise
duced Master Tim Elementary School and stated that he had been presented with a City of Fort Worth pin.
Branch
Ms. Gean Gros, 1901 Alston, appeared before the City Council and presented the City
Ms. Gean Gros re Council with background information regarding the property owner of 1909 Sixth Avenue
M&C G-9420 showing Stephen J. Lipsett as the property owner and inquired as to how Ms. Dorothy McKinney
could request the historical and cultural zoning classification for this area, inasmuch as
she does not own the property; and requested that City Council send a letter to all of the
homeowners in the Fairmount area informing them of the opportunity to make application for
the removal of the "HC" zoning classification from their property.
City Attorney Adkins City Attorney Adkins advised Ms. Gros that it was his understanding that Ms. McKinney
re M&C G-9420 represented the Fairmount Homeowners' Association and spoke on behalf of the property owners
in her request for the "HC" Historic and Cultural Landmark Subdistrict designation and was
acting in that capacity rather than a property owner; advised Ms. Gros that anyone may
circulate a petition and that the petition went through the same verification as did her
petition by the Development Department; and stated that the item that the City Council will
be acting on today is a mechanism for individuals to be removed from the "HC" zoning
classification with a waiver of the application fee for property owners who apply for
removal within 45 days after receipt of the letter.
In answer to Council Member Matson's inquiry, City Attorney Adkins advised the City
Council that the process, as he understands it, is that the letters will be mailed to all
property owners who signed the petition submitted to City Council by Ms. Gros for removal
of the "NC" zoning classification and will be given the opportunity to apply for removal
whereby the normal notification will be sent out by the City Zoning Commission for property
owners within 300 feet of the property and advised the City Council that he does not see any
exposure on the part of the City Council whereby a lawsuit could be filed.
Council Member Chappell amended his motion, seconded by Council Member Meadows, that
once the mailing goes out, anyone in the Fairmount/Southside Historic District -can apply for
a change in zoning and go through the regular process on a case-by-case basis, with waiver
of the application fee within a 45 day period.
City Attorney Adkins
re M&C G-9420 City Attorney Adkins advised the City Council that, under the ordinance, one of the
criteria for the removal of any "HC" zoning classification is that the individual must show
that a hardship exists as the result of the "HC" zoning classification.
When the amended motion that, once the mailing goes out, anyone in the
Fairmount/Southside Historic District, can apply for a change in zoning and go through the
regular process on a case-by-case basis, with waiver of the application fee within a 45 day
period, was put to a vote by the Mayor, it prevailed unanimously.
MAC G-9421 cont. Council Member Silcox made a motion, seconded by Council Member Meadows, that
until after executive consideration of Mayor and Council Communication No. G-9421, Cause No. 153-116466-88, Smith
session Shopping Center, a General Partnership, et al, v. City of Fort Worth, Texas, be continued
until after the executive session. When the motion was put to a vote by the Mayor, it
prevailed unanimously.
M&C G-9422 re There was presented Mayor and Council Communication No. G-9422 from the City Manager,
residential sanitation as follows:
services
SUBJECT: REQUEST FOR PROPOSALS AND ADDENDUMS FOR THE PROVISION OF
RESIDENTIAL'SANITATION SERVICES IN SPECIFIED AREAS OF THE CITY OF
FORT WORTH
Minutes of City Council T-3 Page 129
130
M&C G-9422 cont.
Tuesday, December 10, 1991
RECOMMENDATION:
It is recommended that the City Council approve the Request for Proposals and
Addendums for the provision of residential sanitation services in specified
areas of the City of Fort Worth.
DTSMISSTnN-
A request for proposals (RFP) for the provision of residential sanitation
services has been prepared. The staff has received suggestions for changes
which would improve the RFP. City staff agrees with the suggestions and the
changes are included in the attached addendums. A copy of the RFP was provided
to the City Council two weeks ago.
Mr. Fred Oberkircher Mr. Fred Oberkircher, President of Citizens' for Curbside Recycling, 2209 Sixth
re M&C G-9422 Avenue, appeared before the City Council and gave background information regarding the
Curbside Recycling Program and suggested that the City Council direct City staff not to bid
on Option No. 1 which does not permit any curbside recycling.
Council Member re Council Member Chappell advised Mr. Oberkircher that the City Council is very much
M&C G-9422 interested in the curbside recycling but stated that the City cannot enter into this without
the overall cost information being provided to the Council.
Council member Matson Council Member Matson expressed concerns regarding Item 3 on page 2 of the Addendum
re M&C G-9422 No. 2 to the RFP for Residential Refuse Service, City of Fort Worth, Texas, and requested
that an Item 7 be added to include that "improper contact by a bidder or his agent regarding
this request for a proposal will be considered grounds for disqualifying the bidder's
proposal."
Council Member Council Member Chappell advised the City Council of an amendment to be made to Item
Chappell re M&C No. 3 proposed by Council Member Meadows, with Council Member Chappell concurring, stating
G-9422 that Item 3 should read "City Council Members may request in writing, information from
bidders provided that both the written request and responses are provided to all members of
the City Council and City staff."
Council Member Chappell made a motion, seconded by Council Member Meadows, that Mayor
and Council Communication No. G-9422 be approved, as amended. When the motion was put to
a vote by the Mayor, it prevailed unanimously.
M&C G-9423 re There was presented Mayor and Council Communication No. G-9423 from the City Manager,
Sale of Water and as follows:
Sewer System Revenue
bonds SUBJECT: SALE OF WATER AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES
1991A AND 1991B
RECOMMENDATION:
It is recommended that the City Council approve:
1. Master Ordinance No. 10968 establishing the City of Fort Worth, Texas
Water and Sewer System Revenue Financing Program, and
2. The First Supplemental Ordinance No. 10969 authorizing the Issuance and
Sale of City of Fort Worth, Texas Water and Sewer System Revenue Refunding
Bonds, Series 1991A and City of Fort Worth, Texas Water and Sewer System
Revenue Refunding Bonds, Series 1991B and other matters related thereto.
DISCUSSION:
On December 3, 1991, the City Council authorized the staff to proceed with
establishing a master ordinance for the Revenue Financing Program of the Water
and Sewer System. The Master Ordinance is intended to establish a master
program under which revenue supported indebtedness attributable to the system
and payable from pledged revenues can be incurred. Revenue debt may be issued,
incurred or assumed pursuant to the terms of a Supplement. The supplement will
provide the authorization, issuance, sale, delivery, form ,characteristics,
provisions of payment and redemption, and security of each issue or Parity
Obligation and any other matters related to Parity Obligation not inconsistent
with the Constitution and laws of the State of Texas or the provisions of the
ordinance.
The City entered into a negotiated sale to complete the refunding of Water and
Sewer Revenue Debt. The process concluded with the refunding of $150,630,000
Water and Sewer Revenue Bonds and $50,000,000 in Commercial Paper for Water and
Sewer. The refunding of Water and Sewer Revenue Bonds had a present value
saving of $2,108,020. The principal debt was reduced by $9,080,000. The total
new debt for revenue and commercial paper is $192,825,000 verses the refunded
debt of $200,630,000.
Today, the Council is being asked to approve the master ordinance and the first
supplement for the refunding. The proceeds from the refunding will be used to
provide funds which with other available funds of the City Water and Sewer Fund
will be sufficient to refund the outstanding revenue bonds and the Commercial
Paper debt.
Mr. Judson Bailiff Mr. Judson Bailiff, Director of Fiscal Services Department, appeared before the City
re M&C G-9423 Council and called attention of the City Council to Mayor and Council Communication
No. G-9423 and to the financial binder that was passed out to the City Council earlier along
with a copy of the ordinance showing the funds to be received and disbursed from the sale
Minutes of City Council T-3 Page 130
131
Tuesday, December 10, 1991
Mr. Judson Bailiff of the Water and Sewer System Refunding Bonds Series 1991A and 1991B; and advised the City
statement cont. MAC Council that this will have a positive impact regarding the financing and stated that there
G-9423 would be a $33,000,000.00 deficit by the proposed sale at this time.
Council Member Matson made a motion, seconded by Council Member Woods, that Mayor and
Council Communication No. G-9423 be adopted. When the motion was put to a vote by the
Mayor, it prevailed unanimously.
Introduced an
Ordinance Council Member Matson introduced an ordinance and made a motion that it be adopted.
The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, Meadows, and Chappell
NOES: None
ABSENT: Council Member Puente
The ordinance, as adopted, is as follows:
Ordinance No. 10968 II ORDINANCE NO. 10968
MASTER ORDINANCE ESTABLISHING THE
CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM
REVENUE FINANCING PROGRAM
THE STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH
WHEREAS, the City of Fort Worth, 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 in excess of 90,000, has heretofore issued and
has outstanding its City of Fort Worth, Texas Water and Sewer System Revenue
Refunding Bonds, Series 1984, City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1984A, City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1985, City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1986, City of Fort Worth, Texas Water and Sewer System
Revenue Refunding Bonds, Series 1986-A, City of Fort Worth, Texas Water and
Sewer System Revenue Bonds, Series 1987 and City of Fort Worth, Texas Water and
Sewer System Revenue Bonds, Series 1988 (together, the "Previously Issued Parity
Bonds"); and
WHEREAS, in the ordinances authorizing the issuance of the Previously
Issued Parity Bonds (together, the "Prior Lien Bond Ordinance"), the Previously
Issued Parity Bonds were secured by a first lien on and pledge of the "Pledged
Revenues" of the "System" (each as defined in the Prior Lien Bond Ordinance);
and
WHEREAS, the City reserved the right in the Prior Lien Bond Ordinance to
issue obligations payable from a subordinate lien on the Pledged Revenues to
that granted to the Previously Issued Parity Bonds; and
WHEREAS, on March 8, 1990, the City adopted an ordinance authorizing the
establishment of a commercial paper program and the issuance of commercial paper
notes in a principal amount at any time outstanding not to exceed $75,000,000
(the "Series A Notes"); and
WHEREAS, the Series A Notes are secured in part by a line of credit with
The Mitsui Taiyo Kobe Bank, Limited (the "Bank"); and
WHEREAS, the City has pledged to the Bank .as security for said line of
credit a lien on and pledge of the Pledged Revenues subordinate to that securing
the Previously Issued Parity Bonds; and
WHEREAS, in order to reduce costs, increase borrowing capacity, provide
additional security to the credit markets, and provide the City with greater
financial flexibility to meet the financing needs of the System, the City deems
it necessary and desirable to establish a revised financing structure for
revenue supported indebtedness of the System; and
WHEREAS, the terms used in this Ordinance and not otherwise defined shall
have the meaning given Exhibit A to this Ordinance attached hereto and made a
part hereof;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT:
Section 1. ESTABLISHMENT OF REVENUE FINANCING PROGRAM AND ISSUANCE OF
PARITY OBLIGATIONS. There is hereby established the City of Fort Worth, Texas
Water and Sewer System Revenue Financing Program for the purpose of providing
a financing structure for revenue supported indebtedness of the System. This
Ordinance is intended to establish a master program under which revenue
supported indebtedness attributable to the System and payable from Pledged
Revenues can be incurred. It is hereby authorized that revenue supported
indebtedness may be issued, incurred or assumed pursuant to the terms of a
Supplement. Each Supplement shall provide for the authorization, issuance,
sale, delivery, form, characteristics, provisions of payment and redemption, and
security of each issue or series of Parity Obligations and any other matters
related to Parity Obligations not inconsistent with the Constitution and laws
of the State of Texas or the provisions of this Ordinance.
Section 2. PLEDGE. The Parity Obligations 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 created by this Ordinance, in accordance
with the terms of this Ordinance and any Supplement; and the Pledged Revenues
are further pledged to the establishment and maintenance of the Debt Service
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Fund as provided in accordance with the terms of this Ordinance and the Funds
Ordinance No. 10968 and Accounts as provided in accordance with the terms of any Supplement. The
cont. Parity Obligations 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. The
owners of the Parity Obligations shall never have the right to demand payment
out of funds raised or to be raised by taxation, or from any source other than
specified in this Ordinance or any Supplement.
Section 3. RATE COVENANT. The City 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 sufficient (1) to pay all current Operating Expenses, (2) to produce
Net Revenues for each Fiscal Year at least equal to the Annual Debt Service
Requirements during such Fiscal Year of the then Outstanding Parity Obligations,
and (3) to pay all other financial obligations of the System reasonably
anticipated to be paid from Gross Revenues.
Section 4. GENERAL COVENANTS. While any of the Parity Obligations is
Outstanding, 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 any Supplement; it will promptly pay or cause to be paid the
principal amount of and interest on every Parity Obligation, on the dates and
in the places and manner prescribed in a Supplement and such Parity Obligations;
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 Funds and Accounts as
provided in accordance with this Ordinance and any Supplement; and any owner of
any Parity Obligation may require the City, its officials and employees to carry
out, respect or enforce the covenants and obligations of this Ordinance, or any
Supplement, 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 Parity Obligations; that all action on its part for the
issuance of the Parity Obligations has been duly and effectively taken, and that
the Parity Obligations 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) OPERATION AND MAINTENANCE. 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, replacements and renewals
so that at all times the operation of the System may be properly and
advantageously conducted.
(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 Parity Obligations, against the
claims and demands of all persons whomsoever, that it is lawfully qualified to
pledge the Pledged Revenues to the payment of the Parity Obligations 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 of the System shall be allowed, and
should the City or any of its agencies or instrumentalities make use of the
services and facilities of the System, payment of the reasonable value shall be
made by the City out of funds from sources other than the revenues of the
System, unless made from surplus or excess Pledged Revenues as permitted in
Section 10(b) hereof.
(g) FURTHER ENCUMBRANCE. It will not additionally encumber the Pledged
Revenues in any manner, except as permitted in this Ordinance and any Supplement
in connection with Parity Obligations, unless said encumbrance is made junior
and subordinate in all respects to the liens, pledges, covenants and agreements
of this Ordinance and any Supplement; but the right of the City to issue
Subordinated Debt 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:
(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
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part of the System only if (A) it shall determine such property or facili-
Ordinance No. 10968 ties are not useful in the operation of the System, or (B) the proceeds
cont. of such sale are $250,000, or less, or it shall have received a
certificate executed by a Designated Financial Officer stating, in the
opinion thereof, 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
a Designated Financial Officer stating, in the opinion thereof, 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 Fiscal Year
with the covenant of the City set forth in Section 3 of this Ordinance.
The proceeds of any such sale or exchange not used to acquire other
property necessary or desirable for the safe or efficient operation of the
System shall forthwith, at the option of the City, (i) be used to redeem
or purchase Parity Obligations, (ii) otherwise be used to provide for the
payment of Parity Obligations or (iii) be used for any other 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 of the
System by the City and (B) does not in any manner impair or adversely
affect the rights or security of the owners of the Parity Obligations
under this Ordinance and any Supplement; 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 a
Designated Financial Officer 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.
(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 Fiscal 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 Holders and their repre-
sentatives at all reasonable times during regular business hours. Upon the
happening of any loss or damage covered by insurance from one or more of said
causes, the City shall make due proof of loss and shall do all things necessary
or desirable to cause the insuring companies to make payment in full directly
to the City. The proceeds of insurance covering such property, together with
any other funds necessary and available for such purpose, shall be used
forthwith by the City for repairing the property damaged or replacing the
property destroyed; provided, however, that if said insurance proceeds and other
funds are insufficient for such purpose, then said insurance proceeds pertaining
to the System shall be used promptly as follows:
(i) for the redemption prior to maturity of the Parity
Obligations, ratably in the proportion that the Outstanding Principal
Amount of each series of Parity Obligations bears to the total Outstanding
Principal Amount of all Parity Obligations, provided that if on any such
occasion the principal of any such series is not subject to redemption,
it shall not be regarded as outstanding in making the foregoing
computation; or
(ii) if none of the outstanding Parity Obligations is subject to
redemption, then for the purchase on the open market and retirement of
said Parity Obligations in the same proportion as prescribed in the
foregoing clause (i), to the extent practicable; provided that the
purchase price for any Parity Obligation shall not exceed the redemption
price of such Parity Obligation on the first date upon which it becomes
subject to redemption; or
(iii) to the extent that the foregoing clauses (i) and (ii) cannot
be complied with at the time, the insurance proceeds, or the remainder
thereof, shall be deposited in a special and separate trust fund, at an
official depository of the City, to be designated the Insurance Account.
The Insurance Account shall be held until such time as the foregoing
clauses (i) and/or (ii) can be complied with, or until other funds become
available which, together with the Insurance Account, will be sufficient
to make the repairs or replacements originally required, whichever of said
events occurs first.
(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.
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Tuesday, December 10, 1991
(3) The annual audit hereinafter required _shall contain a section
Ordinance No. 10968 commenting on whether or not the City has complied with the requirements of this
cont. 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) AUDITS. After the close of each Fiscal Year while any of the Parity
Obligations is Outstanding, an audit will be made by the Accountant of the books
and accounts relating to the System and,the Pledged Revenues. As soon as
practicable after the close of each such Fiscal Year, and when said audit has
been completed and made available to the City, a copy of such audit for the
preceding Fiscal Year shall be mailed to the Municipal Advisory Council of Texas
and to any owner of the then Outstanding Parity Obligations who shall so request
in writing. Such annual audit reports shall be open to the inspection of the
owners of the Parity Obligations and their agents and representatives at all
reasonable times during regular business hours.
(1) 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, opera-
tion and maintenance of the System.
(m) 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 material substitute for the
System's facilities, and, to the extent that it legally may, the City will
prohibit any such competing facilities.
(n) RIGHTS OF INSPECTION. The owner of $100,000 in Outstanding Principal
Amount of Parity Obligations shall have the right at all reasonable times during
regular business hours to inspect the System and all records, accounts and data
of the City relating thereto, and upon request the City shall furnish to such
owner, at the cost of such owner, such financial statements, reports and other
information relating to the City and the System as such owner may from time to
time reasonably request.
Section 5. SYSTEM FUND. 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 separate fund designated as the
System Fund. All Gross Revenues shall be credited to the System Fund
immediately upon receipt. All Operating Expenses shall be paid from the Gross
Revenues credited to the System Fund as a first charge against same.
Section 6. DEBT SERVICE FUND. (a) For the sole purpose of paying the
principal amount of, premium, if any, and interest on, and other payments (other
than Operating Expenses) incurred in connection with Parity Obligations, 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 separate fund designated as the Debt Service Fund. Moneys in the Debt Service
Fund shall be deposited and maintained in an official depository bank of the
City.
(b) The terms and conditions with respect to the deposit of moneys into
the Debt Service Fund, and the amounts to be deposited from time to time to the
credit of the Debt Service Fund, shall be contained in the Supplement. In
addition, the City reserves the right in any Supplement to establish within the
Debt Service Fund various Accounts to facilitate the timely payment of Parity
Obligations as the same become due and owing.
Section 7. RESERVE FUND. (a) There is hereby created and there shall be
established and maintained on the books of the City a separate fund designated
as the Reserve Fund. Except as provided in subsection (g) below, the Reserve
Fund shall be maintained for the benefit of the owners of the Parity
Obligations. 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 for the
purpose of retiring the last of the Parity Obligations as they become due or
paying principal of and interest on the Parity Obligations 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 Required Reserve
Amount. The City may, at its option, withdraw and transfer to the System Fund
all surplus in the Reserve Fund over the Required Reserve 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 Reserve 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 the issuer of such Credit Facility 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.
(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
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Tuesday, December 10, 1991
an aggregate amount at least equal to the Required Reserve Amount, then the City
Ordinance No. 10958 shall, after making required deposits to the Debt Service Fund in accordance
cont. with the terms of this Ordinance and any Supplement, satisfy the Required
Reserve Amount by depositing Reserve Fund Obligations into the Reserve Fund in
monthly installments of not less than 1/12 of the Required Reserve Amount on or
before the 10th day of each month following such deficiency, termination or
expiration.
(e) In the event of the redemption or defeasance of any of the Parity
Obligations, any Reserve Fund Obligations on deposit in the Reserve Fund in
excess of the Required Reserve Amount may be withdrawn and transferred, at the
option of the City, to the System Fund, as a result of (i) the redemption of the
Parity Obligations, or (ii) funds for the payment of the Parity Obligations
having been deposited irrevocably with the paying agent or place of payment
therefor in the manner described in this Ordinance and any Supplement, the
result of such deposit being that such Parity Obligations no longer are deemed
to be Outstanding under the terms of this Ordinance. -
(f) In the event there is a draw upon the Credit Facility, the City shall
reimburse the issuer of such Credit Facility 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
subject to the provisions of Section 7(d) hereof and shall be subordinate and
junior in right of payment to the payment of principal of and premium, if any,
and interest on the Parity Obligations.
(g) For the purpose of this Section,'the Reserve Fund shall not secure
Parity Obligations issued in the form of commercial paper, or any Credit
Agreement issued in support of such Parity Obligations issued in the form of
commercial paper, except as otherwise may be provided in any Supplement.
Section 8. ISSUANCE OF ADDITIONAL OBLIGATIONS. (a) Parity Obligations.
The City reserves and shall have the right and power to issue or incur Parity
Obligations for any purpose authorized by law pursuant to the provisions of this
Ordinance and a Supplement to be hereafter authorized. The City may issue,
incur, or otherwise become liable in respect of any Parity Obligations if (i)
a Designated Financial officer shall deliver to the City a certificate stating
that, to the best of his or her knowledge, the City is in compliance with all
covenants contained in this Ordinance and any Supplement, is not in default in
the performance and observance of any of the terms, provisions and conditions
hereof and thereof, and the Funds and Accounts securing the Parity Obligations
then Outstanding as established in accordance with the terms of this Ordinance
and any Supplement contain the amount then required to be therein; and (ii) an
Accountant signs a written certificate to the effect that, in the opinion
thereof, during either the next preceding Fiscal Year, or any twelve consecutive
calendar month period ending not more than ninety days prior to the date of the
then proposed Parity Obligations, the Net Revenues were at least equal to (A)
1.25 times the average Annual Debt Service Requirements of the Parity
Obligations to be Outstanding and (B) 1.10 times the Annual Debt Service
Requirements of the Parity Obligations to be Outstanding in the Fiscal Year
during which such Annual Debt Service Requirements are scheduled to be the
greatest, after the issuance of the then proposed Parity Obligations. For
purposes of this subsection (a), if Parity Obligations are issued to refund less
than all of the Parity Obligations then Outstanding, the Accountant's
certificate required by clause (ii) above shall give effect to the issuance of
the proposed refunding Parity Obligations (and shall not give effect to the
Parity Obligations being refunded following their cancellation or provision
being made for their payment).I I
(b) Short -Term Parity Obligations. The City may not issue or incur
Parity Obligations issued in the form of commercial paper in an amount in excess
of the greater of (i) 25% of the Outstanding Funded Debt secured by the Pledged
Revenues of the System or (ii) $75,000,000. For purposes of this subsection,
the term "Outstanding Funded Debt" shall include Subordinated Debt that matures
by its terms, or that is renewable at the option of the City to a date, more
than one year after the original creation thereof by the City. The terms and
conditions pertaining to the issuance of Parity Obligations in the form of
commercial paper, including, without limitation, the security and reserves which
may be necessary to support such issuance, shall be set forth in the Supplement
authorizing the issuance of Parity Obligations in the form of commercial paper.
(c) Special Facilities Debt and Subordinated Debt. Special Facilities
Debt and Subordinated Debt may be incurred by the City without limitation.
(d) Credit Agreements. Payments to be made under a Credit Agreement may
be treated as Parity Obligations if the governing body of the City makes a
finding in the Supplement authorizing the treatment of the obligations of the
City incurred under a Credit Agreement as a Parity Obligation that, based upon
the findings contained in a certificate executed and delivered by a Designated
Financial Officer, the City will have sufficient funds to meet the financial
obligations of the System, including sufficient Pledged Revenues to satisfy the
Annual Debt Service Requirements of the System and the financial obligations of
the City relating to the System after giving effect to the treatment of the
Credit Agreement as a Parity Obligation.
(e) Determination of Net Revenues. In making a determination of Net
Revenues 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 30 days prior
to the last day of the period for which Net Revenues are determined and, for
purposes of satisfying the Net Revenues test described above, make a pro forma
determination of the Net Revenues 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.
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Section 9. FINAL DEPOSITS; GOVERNMENT OBLIGATIONS. (a) Any Parity
Ordinance No. 10968 Obligation shall be deemed to be paid, retired and no longer Outstanding within
cont. the meaning of this Ordinance, and the Supplement pursuant to which it was
issued, when payment of the principal amount of, redemption premium, if any, on
such Parity Obligation, plus interest thereon to the due date thereof (whether
such due date be by reason of maturity, upon redemption, or otherwise) either
shall have been (i) made in accordance with the terms thereof or (ii) provided
for by irrevocably 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) 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 rein-
vestment, of sufficient money to make such payment, and all necessary and proper
fees, compensation, and expenses of such Paying Agent pertaining to the Parity
Obligation 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 to give notice of such redemption in the
manner required by the Supplement authorizing the issuance of such Parity
Obligation) to the satisfaction of such Paying Agent. Such Paying Agent shall
give notice to each owner of any Parity Obligation that such deposit as
described above has been made, in the same manner as required with respect to
the redemption of such Parity Obligation, all in accordance with the terms of
the Supplement pursuant to which such Parity Obligation was issued. In
addition, in connection with a defeasance, such Paying Agent shall give notice
of redemption, if necessary, to the owners of any Parity Obligation in the
manner described in such Parity Obligation and as directed in the redemption
instructions delivered by the City to such Paying Agent. At such time as a
Parity Obligation 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 the
Supplement pursuant to which it was issued 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 principal of the Parity
Obligations, the redemption premium, if any, and interest thereon, with respect
to which such money has been so deposited, shall be remitted to the City for
deposit to the credit of 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 Parity Obligations, the redemption premium,
if any, and interest thereon, shall be applied solely to and used solely for the
payment of such Parity Obligations, the redemption premium, if any, and interest
thereon.
Section 10. AMENDMENT OF ORDINANCE. (a) The owners of a majority in
Outstanding Principal Amount of the Parity Obligations 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 nothing herein
contained shall permit or be construed to permit the amendment of the terms and
conditions in this Ordinance or in the Parity Obligations so as to:
(1) Make any change in the maturity of any of the Outstanding Parity
Obligations;
(2) Reduce the rate of interest borne by any of the Outstanding Parity
Obligations;
(3) Reduce the amount of the principal payable on the Outstanding
Parity Obligations;
(4) Modify the terms of payment of principal of, premium, if any, or
interest on the Outstanding Parity Obligations or impose any
conditions with respect to such payment;
(5) Affect the rights of the owners of less than all of the Parity
Obligations then Outstanding;
(6) Amend this subsection (a) of this Section; or
(7) Change the minimum percentage of the principal amount of Parity
Obligations necessary for consent to any amendment;
unless such amendment or amendments be approved by the owners of all of the
Parity Obligations 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 each Paying Agent or
Registrar, as the case may be, for the Parity Obligations for inspection by all
Holders of Parity Obligations. Such publication is not required, however, if
notice in writing is given to each owner of Parity Obligations.
(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 owners of at least a majority in Outstanding Principal Amount of the Parity
Obligations 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 each Paying Agent or Registrar, as the case may be, for the Parity
Minutes of City Council T-3 Page 136
Tuesday, December 10, 1991
Obligations, the governing body of the City may pass the amendatory ordinance
Ordinance No. 10968 in substantially the same form.
cont. (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 owners of then
Outstanding Parity Obligations and all future Parity Obligations shall
thereafter be determined, exercised and, enforced hereunder, subject in all
respects to such amendments.
(e) That any consent given by the owner of a Parity Obligation 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 owners of the same
Parity Obligation 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
owner who gave such consent, or by a successor in title, by filing written
notice thereof with the Paying Agent or Registrar, as the case may be, for such
Parity Obligation and the City, but such revocation shall not be effective if
the owners of at least a majority in Outstanding Principal Amount of the then
Outstanding Parity Obligations as determined in accordance with this Section
have, prior to the attempted revocation, consented to and approved the
amendment.
(f) The foregoing provisions of this Section notwithstanding, the City
by action of its governing body 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 owners of the Parity
Obligations 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 owners of the Parity Obligations
then outstanding;
(3) To modify any of the provisions of this Ordinance in any other
respect whatever, provided that (i) such modification shall be, and be
expressed to be, effective only after all Parity Obligations 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 Parity Obligations 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 Bond Counsel, 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 Parity
Obligations to thereafter avail themselves of a book -entry system for
payments, transfers and other matters relating to the Parity Obligations,
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 Parity Obligations;
(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 Parity Obligations by a Rating Agency or to obtain or
maintain a Credit Agreement or 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 Parity Obligations, 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
types of agreements with respect to the Parity Obligations.
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.
(g) Ownership. For the purpose of this Section, the ownership and other
matters relating to all Parity Obligations shall be determined as provided in
each Supplement.
(h) Amendments of Supplements. Each Supplement shall contain provisions
governing the ability of the City to amend such Supplement; provided, however,
that no amendment may be made to any Supplement for the purpose of granting to
the owners of Outstanding Parity Obligations under such Supplement a priority
over the owners of any other Outstanding Parity Obligations.
Section 11. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a) If on any
occasion there shall not be sufficient Pledged Revenues to make the required
deposits into the Funds and Accounts established in accordance with this
Ordinance and any Supplement, then such deficiency shall be made up as soon as
possible from the next available Pledged Revenues, or from any other source
available for such purpose.
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Tuesday, December 10, 1991
(b) Subject to making the required deposits to the credit of the Funds
Ordinance No. 10958 and Accounts established in accordance with this Ordinance and any Supplement,
cont. when and as required by this Ordinance and any Supplement, the excess Pledged
Revenues may be used by the City for any lawful purpose.
Section 12. FUNDS SECURED. Moneys in all Funds and Accounts created in
accordance with this Ordinance and any Supplement shall be secured in the manner
prescribed by law for securing funds of the City.
Section 13. INVESTMENTS. Moneys in any Fund or Account established
pursuant to this Ordinance and any Supplement may, at the option of the City,
be placed or invested in Eligible Investments. The value of any such Fund or
Account shall be established by adding any money therein to the Value of
Investment Securities. The value of each such Fund or Account shall be
established no less frequently than annually during the last month of each
Fiscal Year. Earnings derived from the investment of moneys on deposit in the
various Funds and Accounts shall be credited to the Fund or Account from which
moneys used to acquire such investment shall have come.
Section 14. IMMEDIATE EFFECT. This Ordinance shall be effective
immediately from and after its passage in accordance with the provisions of
Section 2 of Chapter 25 of the Charter of the City, and it is accordingly so
ordained.
ADOPTED this day of , 1991.
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
(SEAL)
EXHIBIT "A"
DEFINITIONS
Mayor
As used in the Ordinance,,the following terms and expressions shall have
the meanings set forth below, unless the text hereof specifically indicates
otherwise:
"Account" means any account created, established and maintained under the
terms of any Supplement.
"Accountant" means a nationally recognized independent certified public
accountant, or an independent firm of certified public accountants.
"Annual Debt Service Requirements" means, for any Fiscal Year, the
principal of and interest on all Parity Obligations coming due at Maturity or
Stated Maturity (or that could come due on demand of the owner thereof other
than by acceleration or other demand conditioned upon default by the City on
such Debt, or be payable in respect of any required purchase of such Debt by the
City) in such Fiscal Year, and,,for such purposes, any one or more of the
following rules shall apply at the election of the City:
(1) Committed Take Out. If the City has entered into a Credit
Agreement constituting a binding commitment within normal commercial
practice, from any bank, savings and loan association, insurance company,
or similar institution to discharge any of its Funded Debt at its Stated
Maturity (or, if due on demand, at any date on which demand may be made)
or to purchase any of its Funded Debt at any date on which such Debt is
subject to required purchase, all under arrangements whereby the City's
obligation to repay the amounts advanced for such discharge or purchase
constitutes Funded Debt, then the portion of the Funded Debt committed to
be discharged or purchased shall be excluded from such calculation and the
principal of and interest on the Funded Debt incurred for such discharging
or purchase that would be due in the Fiscal Year for which the calculation
is being made, if incurred at the Stated Maturity or purchase date of the
Funded Debt to be discharged or purchased, shall be added;
(2) Balloon Debt. If the principal (including the accretion of
interest resulting from original issue discount or compounding of
interest) of any series or issue of Funded Debt due (or payable in respect
of any required purchase of such Funded Debt by the City) in any Fiscal
Year either is equal to at least 25% of the total principal (including the
accretion of interest resulting from original issue discount or
compounding of interest) of such Funded Debt or exceeds by more than 50%
the greatest amount of principal of such series or issue of Funded Debt
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Tuesday, December 10, 1991
due in any preceding or succeeding Fiscal Year (such principal due in such
inance No. 10968 Fiscal Year for such series or issue of Funded Debt being referred to
t, herein and throughout this Exhibit A as "Balloon Debt"), the amount of
principal of such Balloon Debt taken into account during any Fiscal Year
shall be equal to the debt service calculated using the original principal
amount of such Balloon Debt amortized over the Term of Issue on a level
debt service basis at an assumed interest rate equal to the rate borne by
such Balloon Debt on the date of calculation;
(3) Consent Sinking Fund. In the case of Balloon Debt, if a
Designated Financial Officer shall deliver to the City a certificate
providing for the retirement of (and the instrument creating such Balloon
Debt shall permit the retirement of), or for the accumulation of a sinking
fund for (and the instrument creating such Balloon Debt shall permit the
accumulation of a sinking fund for), such Balloon Debt according to a
fixed schedule stated in such certificate ending on or before the Fiscal
Year in which such principal (and premium, if any) is due, then the
principal of (and, in the case of retirement, or to the extent provided
for by the sinking fund accumulation, the premium, if any, and interest
and other debt service charges on) such Balloon Debt shall be computed as
if the same were due in accordance with such schedule, provided that this
clause (3) shall apply only to Balloon Debt for which the installments
previously scheduled have been paid or deposited to the sinking fund
established with respect to such Debt on or before the times required by
such schedule; and provided further that this clause (3) shall not apply
where the City has elected to apply the rule set forth in clause (2)
above;
(4) Prepaid Debt. Principal of and interest on Parity Obligations,
or portions thereof, shall not be included in the computation of the
Annual Debt Service Requirements for any Fiscal Year for which such
principal or interest are payable from funds on deposit or set aside in
trust for the payment thereof at the time of such calculations (including
without limitation capitalized interest and accrued interest so deposited
or set aside in trust) with a financial institution acting as fiduciary
with respect to the payment of such Debt;
(5) Variable Rate. As to any Parity Obligation that bears interest
at a variable interest rate which cannot be ascertained at the time of
calculation of the Annual Debt Service Requirement then, at the option of
the City, either (1) an interest rate equal to the average rate borne by
such Parity Obligations (or by comparable debt in the event that such
Parity Obligations has not been outstanding during the preceding 24
months) for any 24 month period ending within 30 days prior to the date
of calculation, or (2) an interest rate equal to the 30 -year Tax -Exempt
Revenue Bond Index (as most recently published in The Bond Buyer), shall
be presumed to apply for all future dates, unless such index is no longer
published in The Bond Bim, in which case an index of tax-exempt revenue
bonds with maturities of at least 20 years which is published in a
financial newspaper or journal with national circulation may be used for
this purpose;
(6) Commercial Paper. With respect to any Parity Obligations issued
in the form of commercial paper, the interest on such Parity Obligations
shall be calculated in the manner provided in clause (5) of this
definition and the maturity schedule shall be calculated in the manner
provided in clause (2) of this definition; and
(7) Credit Agreement Payments. If the City has entered into a
Credit Agreement in connection with an issue of Debt, payments due under
the Credit Agreement, from either the City or the Credit Provider, shall
be included in such calculation except to the extent that the payments are
already taken into account under (1) through (6) above and any payments
otherwise included above under (1) through (6) which are to be replaced
by payments under a Credit Agreement, from either the City or the Credit
Provider, shall be excluded from such calculation. With respect to any
calculation of historic data, only those payments actually made in the
subject period shall be taken into account in making such calculation and,
with respect to prospective calculations, only those payments reasonably
expected to be made in the subject period shall be taken into account in
making the calculation.
"Bond Counsel" means Messrs. McCall, Parkhurst & Horton and Messrs. Kelly,
Hart & Hallman.
"City" and "Issuer" mean the City of Fort Worth, Texas.
"Code" means the Internal Revenue Code of 1986, as amended.
"Credit Agreement" means, collectively, a loan agreement, revolving credit
agreement, agreement establishing a line of credit, letter of credit,
reimbursement agreement, insurance contract, commitments to purchase Parity
Obligations, purchase or sale agreements, interest rate swap agreements, or
commitments or other contracts or agreements authorized, recognized and approved
by the City as a Credit Agreement in connection with the authorization,
issuance, security, or payment of Parity Obligations and on a parity therewith.
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Tuesday, December 10, 1991
"Credit Facility" means (i) a policy of insurance or a surety bond, issued
Ordinance No. 10968 by an issuer of policies of insurance insuring the timely payment of debt
cont. service on governmental obligations, provided that a Rating Agency having an
outstanding rating on Parity Obligations would rate the Parity Obligations fully
insured by a standard policy issued by the issuer in its highest generic rating
category for such obligations; and (ii) a letter or line of credit issued by any
financial institution, provided that a Rating Agency having an outstanding
rating on the Parity Obligations would rate the Parity Obligations 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 Parity Obligations and the
interest thereon.
"Credit Provider" means any bank, financial institution, insurance
company, surety bond provider, or other institution which provides, executes,
issues, or otherwise is a party to or provider of a Credit Agreement.
"Debt" of the City payable from Pledged Revenues means all:
(1) indebtedness incurred or assumed by the City for borrowed money
(including indebtedness arising under Credit Agreements) and all other
financing obligations of the System that, in accordance with generally
accepted accounting principles, are shown on the liability side of a
balance sheet; and
(2) all other indebtedness (other than indebtedness otherwise
treated as Debt hereunder) for borrowed money or for the acquisition,
construction, or improvement of property or capitalized lease obligations
that is guaranteed, directly or indirectly, in any manner by the City, or
that is in effect guaranteed, directly or indirectly, by the City through
an agreement, contingent or otherwise, to purchase any such indebtedness
or to advance or supply funds for the payment or purchase of any such
indebtedness or to purchase property or services primarily for the purpose
of enabling the debtor or seller to make payment of such indebtedness, or
to assure the owner of the indebtedness against loss, or to supply funds
to or in any other manner invest in the debtor (including any agreement
to pay for property or services irrespective of whether or not such
property is delivered or such services are rendered), or otherwise.
For the purpose of determining the "Debt" payable from the Pledged Revenues of
the System, there shall be excluded any particular Debt if, upon or prior to the
Maturity thereof, there shall have been deposited with the proper depository
(a) in trust the necessary funds (or investments that will provide sufficient
funds, if permitted by the instrument creating such Debt) for the payment,
redemption, or satisfaction of such Debt or (b) evidence of such Debt deposited
for cancellation; and thereafter it shall not be considered Debt. No item shall
be considered Debt unless such item constitutes indebtedness under generally
accepted accounting principles applied on a basis consistent with the financial
statements of the City in prior Fiscal Years.
"Debt Service Fund" means the "City of Fort Worth, Texas Water and Sewer
System Parity Obligations Debt Service Fund" established pursuant to Section 6
of the Ordinance.
"Designated Financial Officer" shall mean the City Manager, the Director
of Fiscal Services, or such other financial or accounting official of the City
so designated by the governing body of the City.
"Eligible Investments" means those investments in which the City is now
or hereafter 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.
"Fiscal Year" means the fiscal year of the City which currently ends on
September 30 of each calendar year.
"Fund" means any fund created, established and maintained under the terms
of the Ordinance and any Supplement.
"Funded Debt" of the System means all Parity Obligations (and, for
purposes of Section 8(b) of the Ordinance, all Subordinated Debt) created or
assumed by the City and payable from Pledged Revenues that mature by their terms
(in the absence of the exercise of any earlier right of demand), or that are
renewable at the option of the City to a date, more than one year after the
original creation or assumption of such Debt by the City.
"Government Obligations" means 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.
"Gross Revenues" means 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 the Ordinance or a Supplement 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. The term "Gross
Revenues", however, does not include impact fees charged by the System under
authority of Chapter 395, Texas Local Government Code, for the construction of
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Tuesday, December 10, 1991
capital improvements or facility expansions pursuant to a capital improvement
Ordinance No. 10968 plan prepared in accordance with the provisions of Chapter 395, Texas Local
cont. 11 Government Code.
"Holder" or "Bondholder" or "owner" means the registered owner of any
Parity Obligation registered as to ownership and the holder of any Parity
Obligation payable to bearer.
"Maturity" when used with respect to any Debt means the date on which the
principal of such Debt or any installment thereof becomes due and payable as
therein provided, whether at the Stated Maturity thereof or by declaration of
acceleration, call for redemption, or otherwise.'
"Net Revenues" and "Net Revenues of the System" means all Gross Revenues
less Operating Expenses.
"Operating Expenses" means 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 Parity
Obligations. Operating Expenses shall include the purchase of water, sewer,
and, to the extent permitted by law, drainage 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 Agreement or Credit Facility. Depreciation shall never
be considered as expenses of operation and maintenance.
"Opinion of Counsel" means a written opinion of counsel which shall be
acceptable to the City.
"Ordinance" means this master ordinance establishing the Water and Sewer
System Revenue Financing Program.
"Outstanding" when used with respect to Parity Obligations means, as of
the date of determination, all Parity Obligations theretofore delivered under
this Ordinance and any Supplement, except:
(1) Parity Obligations theretofore cancelled and delivered to the
City or delivered to the Paying Agent or the Registrar for cancellation;
(2) Parity Obligations deemed paid pursuant to the provisions of
Section 9 of the Ordinance or any comparable section of any Supplement;
(3) Parity Obligations upon transfer of or in exchange for and in
lieu of which other Parity Obligations have been authenticated and
delivered pursuant to the Ordinance and any Supplement; and
(4) Parity Obligations under which the obligations of the City have
been released, discharged, or extinguished in accordance with the terms
thereof;
provided, that, unless the same is acquired for purposes of cancellation, Parity
Obligations owned by the City shall be deemed to be Outstanding as though it was
owned by any other owner.
"Outstanding Principal Amount" means, with respect to all Parity
Obligations or to a series of Parity Obligations, the outstanding and unpaid
principal amount of such Parity Obligations paying interest on a current basis
and the outstanding and unpaid principal and compounded interest on such Parity
Obligations paying accrued, accreted, or compounded interest only at maturity
as of any Record Date established by a Registrar in connection with a proposed
amendment of the Ordinance or any Supplement.
"Parity Obligations" means all Debt of the City which may be issued or
assumed in accordance with the terms of the Ordinance and a Supplement, and
secured by a first lien on and pledge of the Pledged Revenues.
"Paying Agent" means each entity designated in a Supplement as the place
of payment of a series or issue of Parity Obligations.
"Pledged Revenues" means
(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 Parity Obligations.
"Prudent Utility Practice" means 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
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Tuesday, December 10, 1991
result at the lowest reasonable cost consistent with reliability, safety and
Ordinance No. 10968 expedition. It is recognized that Prudent Utility Practice is not intended to
cont. 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.
"Rating Agency" means any nationally recognized securities rating agency
which has assigned a rating to the Parity Obligations.
"Registrar" means each entity designated in a Supplement as the registrar
of a series or issue of Parity Obligations.
"Required Reserve Amount" means an amount equal to the greater of (a) 50%
of the average Annual Debt Service Requirements of the Parity Obligations then
Outstanding or (b) 37 % of the Annual Debt Service Requirements of the Parity
Obligations to be Outstanding in the Fiscal Year during which such Annual Debt
Service Requirements are scheduled to be the greatest, to the extent such Parity
Obligations are to be secured by the Reserve Fund in accordance with the terms
and provisions of Section 7 of the Ordinance and any Supplement.
"Reserve Fund" means the "City of Fort Worth, Texas Water and Sewer System
Parity Obligations Reserve Fund" established pursuant to Section 7 of the
Ordinance.
"Reserve Fund Obligations" means cash, Eligible Investments, any Credit
Facility, or any combination of the foregoing.
"Stated Maturity" when used with respect to any Debt or any installment
of interest thereon means any date specified in the instrument evidencing or
authorizing such Debt or such installment of interest as a fixed date on which
the principal of such Debt or any installment thereof or the fixed date on which
such installment of interest is due and payable.
"Subordinated Debt" means any Debt which expressly provides that all
payments thereon shall be subordinated to the timely payment of all Parity
Obligations then Outstanding or subsequently issued.
"Supplement" or "Supplemental Ordinance" means an ordinance supplemental
to, and authorized and executed pursuant to the terms of, the Ordinance.
"System" means and includes the City's existing combined water and sewer
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 water, sewer, or, if applicable, drainage
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 Debt", which term is hereby defined as being
special revenue obligations of the City which are not secured by or payable from
the Pledged Revenues, 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 authorizing the issuance of such "Special Facilities Debt".
"System Fund" means the "City of Fort Worth, Texas Water and Sewer System
Revenue Fund" established pursuant to Section 5 of the Ordinance.
"Term of Issue" means with respect to any Balloon Debt, a period of time
equal to the greater of (i) the period of time commencing on the date of
issuance of such Balloon Debt and ending on the final maturity date of such
Balloon Debt or the "maximum maturity date" in the case of commercial paper
("maximum maturity date" having the meaning given to said term in any Supplement
authorizing the issuance of commercial paper) or (ii) twenty-five years.
"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.
Council Member Matson introduced an ordinance and made a motion that it be adopted.
The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
Minutes of City Council T-3 Page 142
143
Tuesday, December 10, 1991
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, Meadows, and Chappell
NOES: None
ABSENT: Council Member Puente
The ordinance, as adopted, is as follows:
Ordinance No. 10969 11 ORDINANCE NO. 10969
FIRST SUPPLEMENTAL ORDINANCE AUTHORIZING THE
ISSUANCE AND SALE OF CITY OF FORT WORTH, TEXAS
WATER AND SEWER SYSTEM
REVENUE REFUNDING BONDS, SERIES 1991A AND
CITY OF FORT WORTH, TEXAS
WATER AND SEWER SYSTEM
REVENUE REFUNDING BONDS,
SERIES 1991B
THE STATE OF TEXAS .
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH
WHEREAS, the City of Fort Worth, 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 combined waterworks and sanitary sewer system (the
"System"); and
WHEREAS, the City has outstanding the following obligations secured by the
pledge of a first lien on and pledge of the net revenues of the System, to -wit:
City of Fort Worth, Texas Water and Sewer System
Revenue Refunding Bonds, Series 1984, now outstanding
in the aggregate principal amount of $31,170,000;
City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1984A, now outstanding in the
aggregate principal amount of $4,200,000;
City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1985, now outstanding in the
aggregate principal amount of $7,200,000;
City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1986, now outstanding in the
aggregate principal amount of $15,100,000;
City of Fort Worth, Texas Water and Sewer System
Revenue Refunding Bonds, Series 1986-A, now outstanding
in the aggregate principal amount of $60,360,000;
City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1987, now outstanding in the
aggregate principal amount of $15,200,000;-
City
15,200,000;City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 1988, now outstanding in the
aggregate principal amount of $17,400,000;
(the "Previously Issued Parity Bonds"); and
WHEREAS, in the ordinances authorizing the issuance of the Previously
Issued Parity Bonds (together, the "Prior Lien Bond Ordinance"), the Previously
Issued Parity Bonds were secured by a first lien on and pledge of the "Pledged
Revenues" (as defined in the Prior Lien Bond Ordinance); and
WHEREAS, the City reserved the right in the Prior Lien Bond Ordinance to
issue obligations payable from a subordinate lien on the Pledged Revenues to
that granted to the Previously Issued Parity Bonds; and
WHEREAS, on March 8, 1990, the City adopted an ordinance authorizing the
establishment of a commercial paper program and the issuance of commercial paper
notes in a principal amount at any time outstanding not to exceed $75,000,000
(the "Series A Notes"); and
WHEREAS, the Series A Notes are secured in part by a line of
credit with The Mitsui Taiyo Kobe Bank, Limited (the "Bank"); and
WHEREAS, the City has pledged to the Bank as security for said line of
credit a lien on and pledge of the Pledged Revenues subordinate to that securing
the Previously Issued Parity Bonds; and
WHEREAS, concurrently herewith, the City Council has adopted a "Master
Ordinance Establishing The City of Fort Worth, Texas System Revenue Financing
Program" (referred to herein as the "Master Ordinance"); and
WHEREAS, unless otherwise defined herein, terms used herein shall have the
meaning given in the Master Ordinance; and
WHEREAS, the Master Ordinance establishes said Revenue Financing System,
and pledges the Pledged Revenues of the System to the payment of Parity
Obligations to be outstanding thereunder; and
Minutes of City Council T-3 Page 143
144
Tuesday, December 10, 1991
WHEREAS, the City Council finds it necessary and advisable to refund the
Ordinance No. Previously Issued Parity Bonds and the outstanding Series A Notes (collectively
10969 cont. defined in Exhibit A hereto as the "Refunded Obligations"); 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 Previously Issued Parity Bonds or the Series A Notes 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 only in
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, 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 Previously Issued Parity Bonds and the Series A
Notes; and
WHEREAS, Manufacturers Hanover Trust Company, is the paying agent for said
Series 1984, Series 1984A, Series 1985, Series 1986 and Series 1986-A Bonds, and
Ameritrust Texas National Association (the successor to MTrust National
Association) is the paying agent for said Series 1987 and Series 1988 Bonds; 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
hereinafter authorized, together with other available funds, are held for the
purpose of the payment of principal of and interest on the Previously Issued
Parity Bonds and the Series A Notes; and
WHEREAS, the Previously Issued Parity Bonds and the Series A Notes each
mature or are subject to redemption prior to maturity within twenty years of the
date of the bonds hereinafter authorized; and
WHEREAS, the City Council has adopted this First Supplement to the Master
Ordinance in accordance with the provisions of the Master Ordinance and the
bonds hereinafter authorized shall hereafter constitute Parity Obligations under
the Master Ordinance; 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 Previously Issued Parity Bonds and the Series A Notes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
SECTION 1. DEFINITIONS. In addition to the definitions set forth in the
preamble of this First Supplement, the terms used in this First Supplement
(except in the FORM OF BONDS set forth in Exhibit B to this First Supplement)
and not otherwise defined shall have the meanings given in the Master Ordinance
or in Exhibit A to this First Supplement attached hereto and made a part hereof.
Section 2. BONDS AUTHORIZED. That the "City of Fort Worth, Texas Water
and Sewer System Revenue Refunding Bonds, Series 1991A" are hereby authorized
to be issued in the aggregate principal amount of $51,275,000 and the "City of
Fort Worth, Texas Water and Sewer System Revenue Refunding Bonds, Series 1991B"
are hereby authorized to be issued in the aggregate principal amount of
$141,550,000, for the purpose of refunding the Refunded Obligations. 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 BONDS set forth in Exhibit B to this First Supplement.
Section 3. DATE AND MATURITIES. That the Bonds shall be dated December
1, 1991, shall be in the denomination of $5,000, or any integral multiple
thereof, shall be numbered consecutively from one upward, and shall mature on
February 15 in each of the years, and in the amounts, respectively, unless
redeemed prior to maturity as required or permitted in the FORM OF BONDS set
forth in Exhibit B of this First Supplement, as set forth in the following
schedule:
SERIES 1991A BONDS
YEARS AMOUNTS YEARS AMOUNTS
1993
$1,405,000
2002
$ 2,300,000
1994
1,475,000
2003
2,445,000
1995
1,550,000
2004
2,600,000
1996
1,635,000
2005
2,775,000
1997
1,720,000
2006
2,960,000
1998
1,820,000
****
10,760,000
1999
1,925,000
2008
6,535,000
2000
2,040,000
****
3,835,000
2001
2,165,000
2012
15,925,000
SERIES 1991B BONDS
YEARS
AMOUNTS
YEARS
AMOUNTS
1993
$ 9,015,000
2001
$ 9,730,000
1994
9,160,000
2002
10,220,000
1995
9,505,000
2003
10,675,000
1996
9,625,000
2004
11,390,000
1997
9,635,000
2005
10,760,000
1998
9,755,000
2006
7,930,000
1999
10,340,000
2007
3,835,000
2000
9,975,000
The Series 1991A Bonds maturing February 15, 2008 and February 15, 2012 each are
hereby designated as Term Bonds for purposes of this First Supplement.
Minutes of City Council T-3 Page 144
Tuesday, December 10, 1991
Section 4. RIGHT OF PRIOR REDEMPTION. (a) That the Bonds are subject
rdinance No. 10969 to optional and mandatory redemption prior to their scheduled maturities in the
ont. manner provided in the FORM OF BONDS set forth in Exhibit B to this First
Supplement.
(b) Notice of any redemption of Bonds shall be given in the following
manner, to -wit, (i) a written notice of such redemption shall be given to the
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 owner at the address thereof 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
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 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 denominations
in any integral multiple of $5,000 at the written request of the owner, and in
an aggregate principal amount equal to the unredeemed portion thereof, will be
issued to the owner upon the surrender thereof for cancellation, at the expense
of the City, all as provided in this First Supplement. The maturities of Bonds
to be called for redemption shall be determined by the City. The Bonds or por-
tions 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 5. INTEREST. (a) That the Series 1991A Bonds scheduled to mature
during the years, respectively, set forth below shall bear interest at the
following rates per annum:
maturities 1993 ----------- 4.40%
maturities 1994 ----------- 4.85%
maturities 1995 ----------- 5.00%
maturities 1996 ----------- 5.20%
maturities 1997 ----------- 5.40%
maturities 1998 ----------- 5.60%
maturities 1999 ----------- 5.75%
maturities 2000 ----------- 5.875%
maturities 2001 ----------- 5.90%
maturities 2002 ----------- 6.10%
maturities 2003 ----------- 6.20%
maturities 2004 ----------- 6.30%
maturities 2005 ----------- 6.40%
maturities 2006 ----------- 6.50%
***********
maturities
2008 -----------
6.60%
maturities
2012 -----------
6.50%
(b) That the Series
1991B Bonds
scheduled to mature during the years,
respectively, set forth below shall
bear interest at the following rates per
annum:
maturities
1993 -----------
4.40%
maturities
1994 -----------
4.85%
maturities
1995 -----------
5.00%
maturities
1996 -----------
5.20%
maturities
1997 -----------
5.40%
maturities
1998 -----------
5.60%
maturities
1999 -----------
5.75%
maturities
2000 -----------
5.875%
maturities
2001 -----------
5.90%
maturities
2002 -----------
6.10%
maturities
2003 -----------
6.20%
maturities
2004 -----------
6.30%
maturities
2005 -----------
6.40%
maturities
2005 -----------
6.50%
maturities
2007 -----------
6.60%
Minutes of City Council T-3 Page 145
Tuesday, December 10, 1991
(c) Said interest shall be payable to the owner of any such Series 1991A
Ordinance No. 10969 Bond or Series 1991B Bond, as the case may be, in the manner provided and on
cont. the dates stated in the FORM OF BONDS set forth in Exhibit B to this First
Supplement.
Section 6. 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 Fort Worth, 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 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 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. Except as otherwise provided in the FORM OF BONDS set forth in Exhibit
B to this First Supplement, the owner of each Bond requesting a conversion,
transfer, exchange and delivery of such Bond 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 in
the FORM OF BONDS set forth in Exhibit B to this First Supplement. 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 the "Paying
Agent/Registrar's Authentication Certificate" in the form set forth in the FORM
OF BONDS set forth in Exhibit B to this First Supplement, and, except as
provided below, no such Bond shall be deemed to be issued or Outstanding unless
such Certificate is so executed; the foregoing notwithstanding, such Certificate
need not be executed if any such Bond is accompanied by an executed
"Comptroller's Registration Certificate" in the form set forth in the FORM OF
BONDS set forth in Exhibit B to this First Supplement. 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 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 Cer-
tificate, 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 First Supplement, 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 First
Supplement. 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, executedand 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 BONDS set forth in
Exhibit B to this First Supplement. The Bonds initially issued and delivered
pursuant to this First Supplement 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 First
Supplement the Paying Agent/Registrar shall execute the "Paying
Agent/Registrar's Authentication Certificate", in the form set forth in said
FORM OF BONDS.
(d) Substitute Paying Agent/Registrar. The City covenants with the
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 First Supplement, 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
Minutes of City Council T-3 Page 146
147 -
Tuesday, December 10, 1991
other agency, as selected by the City. The City reserves the right to, and may,
Ordinance No. 10969 at its option, change the Paying Agent/Registrar upon not less than 120 days
cont. 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/Registrar (or
its successor by merger, acquisition, or other method) should resign or other-
wise cease to act as such, the City covenants that promptly it will appoint a
competent and legally qualified entity to act as Paying Agent/Registrar under
this First Supplement. 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 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 First
Supplement, and a certified copy of this First Supplement shall be delivered to
each Paying Agent/Registrar.
(e) Notice of Redemption. (i) In addition to the manner of providing
notice of redemption of Bonds as set forth in this First Supplement, the Paying
Agent/Registrar shall give notice of redemption of Bonds by United States Mail,
first-class postage prepaid, at least thirty (30) days prior to a redemption
date to each registered securities depository and to any national information
service that disseminates redemption notices. In addition, in the event of a
redemption caused by an advance refunding of the Bonds, the Paying
Agent/Registrar shall send a second notice of redemption to the persons
specified in the immediately preceding sentence at least thirty (30) days but
not more than ninety (90) days prior to the actual redemption date. Any notice
sent to the registered securities depositories or such national information
services shall be sent so that they are received at least two (2) days prior to
the general mailing or publication date of such notice. The Paying
Agent/Registrar shall also send a notice of prepayment or redemption to the
owner of any Bond who has not sent the Bonds in for redemption sixty (60) days
after the redemption date.
(ii) Each redemption notice, whether required in the FORM OF BOND or
otherwise by this First Supplement, shall contain a description of the Bonds to
be redeemed including the complete name of the Bonds, the series, the date of
issue, the interest rate, the maturity date , the CUSIP number, if any, the
certificate numbers, the amounts called of each certificate, the publication and
mailing date for the notice, the date of redemption, the redemption price, the
name of the Paying Agent/Registrar and the address at which the Bond may be
redeemed including a contact person and telephone number.
(iii) All redemption payments made by the Paying Agent/Registrar to the
registered owners of the Bonds shall include a CUSIP number relating to each
amount paid to such registered owner.
Section 7. 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 First Supplement,
shall be, respectively, substantially as set forth in Exhibit B, with such
appropriate variations, omissions, or insertions as are permitted or required
by this First Supplement and any Bond Purchase Agreement.
(b) The printer of the Bonds is hereby authorized 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 8. ESTABLISHMENT OF FINANCING PROGRAM AND ISSUANCE OF PARITY
OBLIGATIONS. That by adoption of the Master Ordinance the City has established
the City of Fort Worth, Texas Water and Sewer System Revenue Financing Program
for the purpose of providing a financing structure for revenue supported
indebtedness of the System. The Master Ordinance is intended to establish a
master plan under which revenue supported debt of the System can be incurred.
This First Supplement provides for the authorization, issuance, sale, delivery,
form, characteristics, provisions of payment and redemption, and security of the
Bonds which are a series of Parity Obligations. The Master Ordinance is
incorporated herein by reference and as such made a part hereof for all
purposes, except to the extent modified and supplemented hereby, and the Bonds
are hereby declared to be Parity Obligations under the Master Ordinance. As
required by Section 8(a) of the Master Ordinance, the City hereby determines
that it will have sufficient funds to meet the financial obligations of the
System, including sufficient Pledged Revenues to satisfy the Annual Debt Service
Requirements of the System and to meet all financial obligations of the City
relating to the System.
Section 9. PLEDGE. That the Bonds are and shall be secured by and
payable from a first lien on and pledge of the Pledged Revenues; and the Pledged
Revenues are further pledged to the establishment and maintenance of the Debt
Service Fund, and to the Reserve Fund to the extent hereinafter provided. The
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 10. DEBT SERVICE FUND ACCOUNTS. 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 those Series 1991A Bonds
which are designated as Term Bonds under this First'Supplement.
Minutes of City Council T-3 Page 147
Tuesday, December 10, 1991
Section 11. .RESERVE FUND. .That deposits to the credit of the Reserve
Ordinance No. 10969 Fund shall be made in the manner described in Section 13(b) of this First
cont. Supplement.
Section 12. INVESTMENTS. That money in the Reserve Fund created under
this First Supplement shall not be invested in securities with an average
aggregate weighted maturity of greater than seven years. The value of the
Reserve Fund, in addition to the annual determination described in the Master
Ordinance, shall be established at the time or times withdrawals are made
therefrom. Investments shall be sold promptly when necessary to prevent any
default in connection with the Bonds. Earnings derived from the investment of
moneys on deposit in the various Funds and Accounts shall be credited to the
Fund or Account from which moneys used to acquire such investment shall have
come.
Section 13. 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 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 interest
scheduled to come due on the 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 the
Bonds, or (ii) the month in which the 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 principal scheduled to mature on
the Bonds on the next succeeding principal payment date; and
(3) with respect to those Series 1991A Bonds which are Term Bonds,
there shall be deposited in monthly installments on or before the 10th day
of each month as Amortization Installments to the credit of the Mandatory
Redemption Account commencing in March, 2006 and continuing through
February, 2012, 1/12 of the respective annual Amortization Installments
as follows:
Twelve Month Period
Ending Amortization Installment
February
10,
2007
$3,160,000
February
10,
2008*
3,375,000
February
10,
2009
3,600,000
February
10,
2010
3,845,000
February
10,
2011
4,100,000
February
10,
2012*
4,380,000
*Payable at maturity
The City shall redeem such Term Bonds on February 15 in each of the years 2007
to 2012, 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 in the FORM OF BONDS set forth in Exhibit B to this First
Supplement 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 Bonds are delivered, or the month thereafter if delivery is
made after the 10th day thereof, equal to not less than 1/24 of the Required
Reserve Amount, until such time as such amounts together with other amounts, if
any, in the Reserve Fund, equal the Required Reserve Amount. When and so long
as the Reserve Fund Obligations in the Reserve Fund are not less than the
Required Reserve 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
Reserve Amount due to any cause or condition 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, in the manner provided in the Master Ordinance.
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Reimbursements to the provider, if any, of a Credit: Facility shall constitute
Ordinance No. 10969 the making up of a deficiency to the extent that such reimbursements result in
cont, the reinstatement, in whole or in part., as the case may be, of the amount of the
Credit Facility.
Section 14. 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 Bonds are Outstanding and unpaid, the
City shall make available to the Paying Agent/Registrar, out of the Debt Service
Fund (and the Reserve Fund, if necessary) monies sufficient to pay such interest
on and such principal amount of the Bonds, as shall become due on such dates,
respectively, at maturity or by redemption prior to maturity. The Paying
Agent/Registrar shall destroy all
paid Bonds and furnish the City with an appropriate certificate of cancellation
or destruction.
Section 15. 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:
(a) to take any action to assure that no more than ten percent of
the proceeds of the Bonds or the projects financed therewith (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 or the projects financed therewith
(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 which 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
(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.
For purposes of the foregoing, the Issuer understands that in the case of a
refunding bond, the term proceeds includes transferred proceeds and for purposes
of clauses (a) and (b) above, proceeds of the refunded bonds expended prior to
the date of the issuance of 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
Minutes of City Council T-3 Page 149
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Tuesday, December 10, 1991
applicable to the Bonds, the Issuer will not be required to comply with any
Ordinance No. 10969 covenant contained herein to the extent that such modification or expansion, in
cont. 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, any Designated Financial Officer
is hereby authorized to execute any instrument concerning or relating to the
tax-exempt status of the Bonds.
Section 16. AMENDMENT OF FIRST SUPPLEMENT. (a) That the owners of a
majority in Outstanding Principal Amount of the Bonds shall have the right from
time to time to approve any amendment,to this First Supplement which may be
deemed necessary or desirable by the City, provided, however, that nothing
herein contained shall permit or be"construed to permit the amendment of the
terms and conditions in this First Supplement or in the Bonds so as to:
(1) Make any change in the maturity of any of the Outstanding Bonds;
(2) Reduce the rate of interest borne by any of the Outstanding Bonds;
(3) Reduce the amount of the principal payable on the Outstanding
Bonds;
(4) Modify the terms of payment of principal of, premium, if any, or
interest on the Outstanding Bonds or impose any conditions with
respect to such payment;
(5) Affect the rights of the owners of less than all of the Bonds then
Outstanding;
(6) Amend this clause (a) of this Section; or
(7) Change the minimum percentage of the principal amount of Bonds
necessary for consent to any amendment;
unless such amendment or amendments shall be approved by the owners of all of
the Bonds then Outstanding.
(b) That if at any time the City shall desire to amend the First
Supplement 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 owners of the Bonds. Such publication is
not required, however, if notice in writing is given to each owner of the 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 owners of at least a majority in Outstanding Principal Amount of the 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/Registrar, the governing body of the City may pass such amendment
in substantially the same form.
(d) That upon the passage of any such amendment pursuant to the
provisions of this Section, this First Supplement shall be deemed to be amended
in accordance with such amendment, and the respective rights, duties and
obligations under this First Supplement of the City and all the owners of then
Outstanding Bonds shall thereafter be determined, exercised and enforced
hereunder, subject in all respects to such amendment.
(e) That any consent given by the owners of a 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 owners of the same 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 owner who gave such
consent, or by a successor in title, by filing written notice thereof with the
Paying Agent/Registrar and the City, but such revocation shall not be effective
if the owners of at least a majority in Outstanding Principal Amount of the
Bonds have, prior to the attempted revocation, 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 First Supplement without the
consent of any owner of the Bonds or any other Parity Obligations, solely for
any one or more of the following purposes:
(1) To add to the covenants and agreements of the City in this
First Supplement contained, other covenants and agreements thereafter to
be observed, grant additional rights or remedies to the owners of the
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 First Supplement, or in regard to clarifying matters or
questions arising under this First Supplement, as are necessary or
desirable and not contrary to or inconsistent with this First Supplement
and which shall not adversely affect the interests of the owners of the
Bonds then Outstanding;
(3) To modify any of the provisions of this First Supplement in any
other respect whatever, provided that such modification shall be, and be
expressed to be, effective only after the Bonds Outstanding at the date
of the adoption of such modification shall cease to be Outstanding;
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Tuesday, December 10, 1991
(4) To make such amendments to this First Supplement as may be
finance No. 10969 required, in the opinion of Bond Counsel, to ensure compliance with
t. 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 Bonds to
thereafter avail themselves of a book -entry system for payments, transfers
and other matters relating to the Bonds, which changes, modifications or
amendments are not contrary to or inconsistent with other provisions of
this First Supplement and which shall not adversely affect the interests
of the owners of the 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 Bonds by a Rating Agency or to obtain or maintain a Credit
Agreement or a Credit Facility issued in support of the Bonds; 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 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 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.
(g) Ownership of the Bonds shall be established by the Registration
Books maintained by the Paying Agent/Registrar, in its capacity as registrar and
transfer agent for the Bonds.
Section 17. 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.'
(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/Reg-
istrar 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 First
Supplement equally and proportionately with any and all other Bonds duly issued
under this First Supplement.
(e) In accordance with Section 6 of Article 717k-6, Texas Revised Civil
Statutes, as amended, this Section of this First Supplement 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 6(a) of this First Supplement for Bonds issued in
exchange for other Bonds.
Section 18. REASONS FOR REFUNDING. That the City has determined that in
order to remove various covenants set forth in the Prior Lien Bond Ordinance
which restrict the ability of the City to establish and maintain an efficient
financing system for the issuance of Parity Obligations (including the Bonds),
it is in the best interest of the City to refund all of the Previously Issued
Parity Bonds. The refunding of the Previously Issued Parity Bonds also will
result in a net present value savings to the City and to the System. The Series
A Notes were issued to provide interim financing for various System projects,
and the City has determined that it is in the best interest of the City to
convert the interim financing into permanent financing by refunding the Series
A Notes with a part of the proceeds of the Bonds.
Section 19. FIRST SUPPLEMENT TO CONSTITUTE A CONTRACT; EQUAL SECURITY.
That in consideration of the acceptance of the Bonds, the issuance of which is
authorized hereunder, by those who shall hold the same from time to time, this
First Supplement shall be deemed to be and shall constitute a contract between
the City and the Holders from time to time of the Bonds and the pledge made in
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this First Supplement by the City and the covenants and agreements set forth in
Ordinance No. 10969 " u ? "this- Fi rst S,uppl ement;,to hen performed c by. the, ,Gi ty shal 1 be for the equal and
cont. proportionate benefit, security, and protection of all Holders, without
preference, priority, or distinction as to security or otherwise of any of the
Bonds authorized hereunder over any of the others by reason of time of issuance,
sale, or maturity thereof or otherwise for any cause whatsoever, except as
expressly provided in or permitted by this First Supplement.
Section 20. SEVERABILITY OF INVALID PROVISIONS. That if any one or more
of the covenants, agreements, or provisions herein contained shall be held
contrary to any express provisions of law or contrary to the policy of express
law, though not expressly prohibited, or against public policy, or shall for any
reason whatsoever be held invalid, then such covenants, agreements, or
provisions shall be null and void and shall be deemed separable from the
remaining covenants, agreements, or provisions and shall in no way affect the
validity of any of the other provisions hereof or of the Bonds issued hereunder.
Section 21. PAYMENT AND PERFORMANCE ON BUSINESS DAYS. That, except as
provided to the contrary in the FORM OF BONDS set forth in Exhibit B to this
First Supplement, whenever under the terms of this First Supplement or the
Bonds, the performance date of any provision hereof or thereof, including the
payment of principal of or interest on the Bonds, shall occur on a day other
than a Business Day, then the performance thereof, including the payment of
principal of and interest on the Bonds, need not be made on such day but may be
performed or paid, as the case may be, on the next succeeding Business Day with
the same force and effect as if made on the date of performance or payment.
Section 22. LIMITATION OF BENEFITS WITH RESPECT TO THE FIRST SUPPLEMENT.
That with the exception of the rights or benefits herein expressly conferred,
nothing expressed or contained herein or implied from the provisions of this
First Supplement or the Bonds is intended or should be construed to confer upon
or give rto t.any-,person other,.. than the;.,Cityy - the Holders, and the Paying
Agent/Registrar, any Iegal.or equitable right, remedy, or claim under or by
reason of or in respect to this First .Supplement or any covenant, condition,
stipulation, promise, agreement, or provision herein contained. This First
Supplement and all of the covenants, conditions, stipulations, promises,
agreements, and provisions hereof are intended to be and shall be for and inure
to the sole and exclusive benefit of the -City, the Holders, and the Paying
Agent/Registrar as herein and therein provided.
Section 23. FURTHER PROCEDURES. That the Mayor, the City Secretary or
Assistant City Secretary, any Designated Financial Officer, and all other
officers, employees, and agents of the City, and each of them, shall be and they
are hereby expressly authorized, empowered, and directed from time to time and
at any time to do and perform all such acts and things and to execute,
acknowledge, and deliver in the name and under the seal and on behalf of the
Issuer all such instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this
First Supplement, the Bonds, the Bond Purchase Agreement, the offering documents
prepared in connection with the sale of the Bonds, the Paying Agent/Registrar
Agreement described in Section 6 hereof, the Escrow Agreement or the redemption
of those Previously Issued Parity Bonds called for redemption prior to their
scheduled maturities. In case any officer whose signature appears on any Bond
shall cease to be such officer before the delivery of such Bond, such signature
shall nevertheless be valid and sufficient for all purpose the same as if he or
she had remained in office until such delivery.
Section 24. 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
4 investigation,rexamination and.,approva1 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 25. SALE OF BONDS. (a) That the sale of the Bonds to the
Underwriters, at the purchase price described in the Bond Purchase Agreement,
is hereby authorized, ratified and confirmed. One Bond in the principal amount
maturing on each maturity date as set forth in Section 3 hereof shall be
delivered to the Underwriters, and the Underwriters shall have the right to
exchange such bonds as provided in Section 6 hereof without cost.
(b) That the Bond Purchase Agreement setting forth the terms of the sale
of the Bonds to the Underwriters, in substantially the form attached to this
First Supplement, is hereby accepted, approved and authorized to be delivered
in executed form to said Underwriters.
(c) That the offering documents prepared in connection with the sale of
the Bonds, in substantially the form attached to this First Supplement, are
hereby accepted, approved and authorized to be delivered in executed form to the
Underwriters. The use of the "Preliminary Official Statement" prepared in
connection with the sale of the Bonds is hereby ratified.
Section 26. 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 ;Qbl i gati ons, , the.,form ,of the, -Escrow Agreement being in substantially
the form attached to this First Supplement.
Section 27. 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 in support of the Bonds, as is anticipated by the offering
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Tuesday, December 10, 1991
documents and the Bond Purchase Agreement herein approved with respect to the
Ordinance No. 10969 sale of the Bonds, including, but not limited to, any insurance commitment
cont. issued by a municipal bond insurance company which agrees to issue a municipal
bond new issue insurance policy in support of the Bonds.
Section 28. REDEMPTION OF REFUNDED OBLIGATIONS. That the following of
the Refunded Obligations are hereby called for redemption prior to their
scheduled maturities, at the price of par,plus accrued interest to the date
fixed for redemption:
All of such Series 1984 Bonds maturng in the years 1995 through
2004, inclusive; Redemption Date: March 1, 1994;
All of such Series 1986 Bonds maturing in the years 1998 through
2007, inclusive; Redemption Date: March 1, 1997;
A1'l of such Series 1986-A Bonds maturing in the years 1998 through 2006,
inclusive; Redemption Date: March 1, 1997;
All of such Series 1987 Bonds maturing in the years 1998 through
2007, inclusive; Redemption Date: March 1,111997; and
All of such Series 1988 Bonds maturing in the years 1999 through
2007, inclusive; Redemption Date: March 1, 1998.
The City Secretary or Assistant City Secretary is hereby directed to coordinate
with the paying agent for each such series of Refunded Obligations so called for
redemption to give notice of such redemption, in substantially the form attached
to this First Supplement, in accordance with the applicable terms of the Prior
Lien Bond Ordinance.
Section 29. DTC REGISTRATION. The Bonds initially shall be issued and
delivered in such manner that no physical distribution of the Bonds will be made
to the public, and The Depository Trust Company ("DTC"), New York, New York,
initially will act as depository for the Bonds. DTC has represented that it is
a limited purpose trust company incorporated under the laws of the State of New
York, a member of the Federal Reserve System, a "clearing corporation" within
the meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered under Section 17A of the Securities Exchange Act of 1934, as amended,
and the City accepts, but in no way verifies, such representations. The Bonds
initially authorized by this First Supplement shall be delivered to and
registered in the name of CEDE & CO., the nominee of DTC. It is expected that
DTC will hold the Bonds on behalf of the Underwriters and their respective
participants. So long as each Bond is registered in the name of CEDE & CO., the
Paying Agent/Registrar shall treat and deal with DTC the same in all respects
as if it were the actual and beneficial owner thereof. It is expected that DTC
will maintain a book -entry system which will identify ownership of the Bonds in
integral amounts of $5,000, with transfers of ownership being effected on the
records of DTC and its participants pursuant to! rules and regulations
established by them, and that the Bonds initially deposited with DTC shall be
immobilized and not be further exchanged .for substitute Bonds except as
hereinafter provided. The City is not responsible or liable for any functions
of DTC, will not be responsible for paying any fees or charges with respect to
its services, will not be responsible or liable for maintaining, supervising,
or reviewing the records of DTC or its participants; or protecting any interests
or rights of the beneficial owners of the Bonds. It shall be the duty of the
DTC Participants, as defined in the Official Statement herein approved, to make
all arrangements with DTC to establish this book -entry system, the beneficial
ownership of the Bonds, and the method of paying the fees and charges of DTC.
The City does not represent, nor does it in any way covenant that the initial
book -entry system established with DTC will be maintained in the future.
Notwithstanding the initial establishment of the foregoing book -entry system
with DTC, if for any reason any of the originally delivered Bonds is duly filed
with the Paying Agent/Registrar with proper: request for transfer and
substitution, as provided for in this First Supplement, substitute Bonds will
be duly delivered as provided in this First Supplement, and there will be no
assurance or representation that any book -entry system will be maintained for
such Bonds. To effect the establishment of the foregoing book -entry system, the
Mayor or the City Manager are hereby authorized to execute the "DTC Letter of
Representation" in the form provided by DTC to evidence the City's intent to
establish said book -entry system.
Section 30. FUNDING OF RESERVE FUND. That the Director of Fiscal
Services is hereby directed to take such steps as are necessary to cause to be
deposited to the credit of the Reserve Fund, as soon as practicable on or after
the date of delivery of the Bonds, an amount equal to the Required Reserve
Amount, from available funds other than proceeds from the Bonds.
Section 31. PREAMBLE. That the preamble to.this First Supplement is
hereby incorporated by reference, and is to be considered a part of the
operative text of this First Supplement.
Section 32. IMMEDIATE EFFECT. That this First Supplement shall be
effective immediately from and after its passage in accordance with the
provisions of Section 2 of Chapter 25 of the Charter of the City, and it is
accordingly so ordained.
SIGNED AND SEALED THIS DAY OF , 1991.
Mayor, City of Fort Worth, Texas
Minutes of City Council T-3 Page 153
154
Tuesday, December 10, 1991
Ordinance No. 10969
cont. II City Secretary
(SEAL)
APPROVED AS TO FORM AND LEGALITY:
City Attorney
EXHIBIT A
That, as used i n thi s Fi rst Suppl ement, the fol l owi ng terms shal l have the
meanings set forth below, unless the text hereof specifically indicates
otherwise:
"Amortization Installment" means 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).
"Bond Purchase Agreement" means the Bond Purchase Contract, dated December
10, 1991, by and among the City and the Underwriters.
"Bonds" means collectively, the Series 1991A Bonds and the Series 1991B
Bonds.
"Business Day" means a day other than a Sunday, Saturday, 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.
"Escrow Agreement" means the Escrow Agreement, dated December 10, 1991,
by and between the City and Ameritrust Texas National Association.
"First Supplement" means the ordinance authorizing the issuance of the
Series 1991 Bonds.
"Mandatory Redemption Account" means the Account known as the "City of
Fort Worth, Texas Water and Sewer System Series 1991 Bonds Mandatory Redemption
Account" created within the'Debt Service Fund and established by the First
Supplement.
"Master Ordinance" means the "Master Ordinance establishing the City of
Fort Worth Texas Water and Sewer System Revenue Financing Program", passed by
the City on December 10, 1991.
"Paying Agent/Registrar" means the financial institution specified in
Section 6(a) of the First Supplement.
"Previously Issued Parity Bonds" shall have the same meaning given said
term in the preamble to the First Supplement.
"Prior Lien Bond Ordinance" shall have the same meaning given term in the
preamble to the First Supplement.
"Refunded Obligations" means the Previously Issued Parity Bonds and the
Series A Notes.
"Registration Books" shall have the meaning given said term in Section
6(a) of the First Supplement.
"Series A Notes" means the City of Fort Worth, Texas Water and Sewer
System Commercial Paper Notes, Series A, currently outstanding in the principal
amount of $50,000,000.
"Series 1991A Bonds" shall mean the City of Fort Worth, Texas Water and
Sewer System Revenue Refunding Bonds, Series 1991A, authorized by the First
Supplement.
"Series 1991B Bonds" shall mean the City of Fort Worth, Texas Water and
Sewer System Revenue Refunding Bonds, Series 19918, authorized by the First
Supplement.
"Term Bonds" means those Series 1991A Bonds so designated in Section 3 of
the First Supplement.
"Underwriters" means Merrill Lynch, Pierce, Fenner & Smith Incorporated,
on its behalf and the underwriters named in the Bond Purchase Agreement.
EXHIBIT B
Minutes of City Council T-3 Page 154
Ordinance No. 10969 II NO.
cont.
MATURITY DATE
Tuesday, December 10, 1991
FORM OF BONDS: SERIES 1991A BONDS
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH, TEXAS
WATER AND SEWER SYSTEM REVENUE REFUNDING BOND
SERIES 1991A
INTEREST RATE
DATED DATE
December 1, 1991
CUSIP
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT WORTH, IN TARRANT
AND DENTON COUNTIES, 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 dated date specified above, on August 15,
1992 and semiannually on each February 15 and August 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 dated later than August 15, 1992, such interest is payable semiannually on
each February 15 and August 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, 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 pro-
vided; 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
day of the month next preceding each such date (thee"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 has
covenanted in the Bond Ordinance 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 ordinance establishing the City of Fort Worth, Texas Water and
Sewer System Revenue Financing Program (the "Master Ordinance"), the amounts
required to provide for the payment, in immediately available funds, of all
principal of and interest on the Bonds, when due.
IN THE EVENT of a non-payment of interest on a scheduled payment date, and
for 30 days thereafter, a new record date for such interest payment (a "Special
Record Date") will be established by the Paying Agent/Registrar, if and when
funds for the payment of such interest have been received from the Issuer.
Notice of the Special Record Date and of the scheduled payment date of the past
due interest ("Special Payment Date", which shall be 15 days after the Special
Record Date) shall be sent at least five business days prior to the Special
Record Date by United States mail, first class postage prepaid, to the address
of each registered owner appearing on the reigstration books of the Paying
Agent/Registrar at the close of business on the last business day next preceding
the date of mailing of such notice.
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 bylaw or executive order to
close, 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; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
*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 dated date specified above, aggregating $51,275,000
(herein sometimes called the "Bonds"), which, together with the "City of Fort
Worth, Texas Water and Sewer System Revenue, Refunding Bonds, Series 1991B"
issued concurrently herewith, are issued for the purpose of refunding the
Minutes of City Council T-3 Page 155
Tuesday, December 10, 1991
outstanding indebtedness of the City of Fort Worth, Texas defined in the Bond
Ordinance No. 10969 Ordinance as -the "Previously Issued Parity Bonds" rand for the purpose of
cont. refunding $50,000,000 of the outstanding indebtedness of the City of Fort Worth,
Texas defined in the Bond Ordinance as the "Series A Notes".
*THE OUTSTANDING, BONDS maturing on and after February 15, 2002 may be
redeemed prior to their scheduled maturities, at the option of the Issuer, in
whole, or in part on February 15, 2001, or on any date thereafter, at the
redemption price of the principal amount of the Bonds called for redemption,
plus accrued interest thereon to the date fixed for redemption, and without
premium.
*THE OUTSTANDING BONDS maturing February 15, 2008 and February 15, 2012,
respectively, are subject to mandatory redemption, and shall be redeemed in part
by lot prior to maturity annually on February 15, in the year 2007, and at final
maturity in 2008, with respect to the Bonds maturing on February 15, 2008, and
on February 15 in the years 2009 through 2011, inclusive, and at final maturity
in 2012, with respect to Bonds maturing on February 15, 2012, with funds in the
"Mandatory Redemption Account" of the Debt Service Fund established in the Bond
Ordinance, in accordance with the terms of the Master 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, and without premium.
*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,
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 pro-
vided 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 assignee or assignees hereof, be assigned, transferred,
converted into and exchanged for a like aggregate amount of fully registered
,.Bonds, withoutlinterest 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,
evidencing 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 or customary fees and charges for converting and exchanging
Minutes of City Council T-3 Page 156
157
Tuesday, December 10, 1991
any Bond or portion thereof. In any circumstance, any taxes or governmental
Ordinance No. 10969 charges required to be paid with respect thereto shall be paid by the one re -
cont. questing 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 transfer, 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 limitation 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 are substantially 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 registered owner
thereby acknowledges all of the terms and provisions of the Master Ordinance and
the Bond Ordinance, agrees to be bound by such terms and provisions,
acknowledges that the Master Ordinance and the Bond Ordinance are 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, the Master Ordinance and
the Bond Ordinance constitute a contract between each registered owner hereof
and the Issuer. All capitalized terms not defined herein shall have the same
meaning as given said terms in the Master Ordinance or the Bond Ordinance.
*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 of the
System. The Issuer has reserved the right, subject to the restrictions stated,
and adopted by reference, in the Master Ordinance, to issue additional parity
revenue obligations 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 Master
Ordinance and 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 all) circumstances amendments must be approved by the
owners of a majority in Outstanding Principal Amount of the Bonds.
*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 manual or facsimile signature of the Mayor of said Issuer, attested
by the imprinted or lithographed facsimile signature of the City Secretary, and
approved as.to form and legality by the imprinted or lithographed facsimile
signature of the City Attorney, and the official seal of said Issuer has been
duly affixed to, printed, lithographed or impressed on this Bond.
CITY OF FORT WORTH, TEXAS
(SEAL)
By
Mayor.
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE:
Minutes of City Council T-3 Page 157
158
. Tuesday, December 10, 1991
'PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
Ordinance No. 10959 (To be executed if this Bond is not accompanied by an executed
cont. 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 proceedings adopted by the Issuer as described in the text 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
Texas
Paying Agent Registrar
By
Authorized Signatory
*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) mast
be guaranteed by a member
firm of the New York Stock
Exchange or a commercial
bank or trust conpany.
NOTICE: The signature(s) above
mast 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.
** 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:
*9s to be printed on back of Bond
**I not to be printed on Bond
Minutes of City Council T-3 Page 158
159
Tuesday, December 10, 1991
FORM OF BONDS: SERIES 1991B BONDS
Ordinance No. 10959 NO. $
cont.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH, TEXAS
WATER AND SEWER SYSTEM REVENUE REFUNDING BOND
SERIES 1991B
MATURITY DATE INTEREST RATE DATED DATE CUSIP
December 1, 1991
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT WORTH, IN TARRANT
AND DENTON COUNTIES, 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 dated date specified above, on August 15,
1992 and semiannually on each February 15 and August 15 thereafter to the
maturity:date specified above,.or the date-of.re.dempti.on 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 dated later than August 15, 1992, such interest is.payable semiannually on
each February 15 and August 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, 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 pro-
vided; 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
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 has
covenanted in the Bond Ordinance that on or!befo:re 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 ordinance establishing the City of Fort Worth, Texas Water and
Sewer System Revenue Financing Program (the "Master Ordinance"), the amounts
required to provide for the payment, in immediately available funds, of all
principal of and interest on the Bonds, when due.
IN THE EVENT of a non-payment of interest on a scheduled payment date, and
for 30 days thereafter, a new record date for such interest payment (a "Special
Record Date") will be established by the Paying Agent/Registrar, if and when
funds for the payment of such interest have been received from the Issuer.
Notice of the Special Record Date and of the scheduled payment date of the past
due interest ("Special Payment Date", which shall be 15 days after the Special
Record Date) shall be sent at least five business days prior to the Special
Record Date by United States mail,.first class postage prepaid, to the address
of each registered owner appearing on the registration books of the Paying
Agent/Registrar at the close of business on the last business day next preceding
the date of mailing of such notice.
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 l.aw or executive order to
close, 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; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
*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 dated date specified above, aggregating $141,550,000
(herein sometimes called the "Bonds"), which, together with the "City of Fort
Worth, Texas Water and Sewer System Revenue Refunding Bonds, Series 1991A"
issued concurrently herewith, are issued for the purpose of refunding the
Minutes of City Council T-3 Page 159
160
Tuesday, December 10, 1991
outstanding indebtedness of the City of Fort Worth, Texas defined in the Bond
Ordinance No. 10969 Ordinance as the "Previously Issued Parity Bonds" and for the purpose of
cont. refunding $50,000,000 of the outstanding indebtedness of the City of Fort Worth,
Texas defined in the Bond Ordinance as the "Series A Notes".
*THE OUTSTANDING BONDS maturing on and after February 15, 2002 may be
redeemed prior to their scheduled maturities, at the option of the Issuer, in
whole, or in part on February 15, 2001, or on any date thereafter, at the
redemption price of the principal amount of the Bonds called for redemption,
plus accrued interest thereon to the date fixed for redemption, and without
premium.
*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,
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 pro-
vided 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 assignee 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,
evidencing 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 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 re-
questing 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 transfer, 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
Minutes of City Council T-3 Page 160
161
Tuesday, December 10, 1991
for redemption when such redemption is scheduled to occur within 30 calendar
Ordinance No. 1.0969 days; provided, however, such limitation of transfer shall not be applicable to
cont. 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 are substantially 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 registered owner
thereby acknowledges all of the terms and provisions of the Master Ordinance and
the Bond Ordinance, agrees to be bound by such terms and provisions,
acknowledges that the Master Ordinance and the Bond Ordinance are 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, the Master Ordinance and
the Bond Ordinance constitute a contract,between each. registered owner hereof
and the Issuer. All capitalized terms not defined herein shall have the same
meaning as given said terms in the Master Ordinance or the Bond Ordinance.
*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 of the
System. The Issuer has reserved the right, subject to the restrictions stated,
and adopted by reference, in the Master Ordinance, to issue additional parity
revenue obligations which also may be made payable from, and secured by a first
lien on and pledge of, the aforesaid Pledged '
ledged, 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 Master
Ordinance and 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 all) circumstances amendments must be approved by the
owners of a majority in Outstanding Principal Amount of the Bonds.
*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 manual or facsimile signature of the Mayor of said Issuer, attested
by the imprinted or lithographed facsimile signature of the City Secretary, and
approved as to form and legality by the imprinted or lithographed facsimile
signature of the City Attorney, and the official seal of said Issuer has been
duly affixed to, printed, lithographed or impressed on this Bond.
CITY OF FORT WORTH, TEXAS
(SEAL)
By
Mayor;
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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 proceedings adopted by the Issuer as described in the text 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.
Minutes of City Council T-3 Page 161
162
Tuesday, December 10, 1991
Dated ,
inance No. 10969 Texas
It. 11 Paying Agent Registrar
By
Authorized Signatory
*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: Signatures mast
be guaranteed by a member
firm of the New York Stock
Exchange or a cammrcial
bank or trust company.
NOTICE: The signature(s) above
mast correspond with the name
of the Registered Owner as it
appears upon the front of this
Bond in every particular, without
alteration or enlarganent or any
change whatsoever.
** 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
(SEAL)
NOTE TO PRINTER:
Comptroller of Public Accounts of
the State of Texas
*9s to be printed on back of Bond
**9 not to be printed on Bond
M&C P-5361 re There was presented Mayor and Council Communication No. P-5361 from the City Manager
lease agreement with stating that the City currently is leasing radios, accessories and communication services
Russ Miller Comnunica- from Russ Miller Communications; that the lease of this equipment and communication services
tions is critical to comply with FAA requirement FAR 139, the Airport Certification Manual, and
the Airport Operating Certificate at Spinks, Meacham, and Alliance Airports; that the lease
also includes equipment for the Health Department that provides additional safety for the
environmental health and animal control staff; that services provided include the use of
lessor's radio towers, which provide the radio transmission coverage required by the FAA;
that the lease will be in effect until the City's new trunked radio system is installed and
in operation, which is estimated to be August 1992; that the Director of Fiscal Services
certifies that funds for these expenditures during the 1991-92 fiscal year are available in
lthe current operating budgets, as appropriated, of the General Fund and the Airports Fund;
and recommending that the City Council approve the extension of the lease agreement Contract
Minutes of City Council T-3 Page 162
163
Tuesday, December 10, 1991
MAC P-5361 cont.
No. 16821 with Russ Miller Communications on a month to month basis for an amount not to
purchase agreement
exceed $1,980.61 per month. It was the consensus of the City Council that the
from Wespac/Texas
recommendation be adopted.
M&C P-5362 re
There was presented Mayor and Council Communication No. P-5362 from the City Manager
purchase agreement
submitting a tabulation of bids received for a purchase agreement to furnish number 1 diesel
with Ricochet Fuel Di-
fuel and to furnish a 70 percent number 2 and 30 percent number diesel mix fuel to the City
stributors
of Fort Worth; stating that the Director of Fiscal Services certifies that the funds
BID TABULATION:
required for the anticipated expenditures of each department eligible to participate in this
agreement are available in the Treasury to the credit of the appropriate funds; and
MAC P-5365 re
recommending that the purchase agreement be authorized with Ricochet Fuel Distributors to
purchase from C.E.H.,
furnish number 1 diesel fuel on its line item low bid of O.P.I.S. Dallas/Fort Worth daily
Inc.
net average price less $0.02 per gallon; and with Reeder Distributors, Inc., to furnish a
70 percent number 2 and 30 percent number diesel mix fuel on its low bid of O.P.I.S.
Dallas/Fort Worth daily net average price less $0.029 per gallon, with term of agreements
Star
to begin December 3, 1991, and end July 12, 1992. It was the consensus of the City Council
E1 Sol
that the recommendations be adopted.
MAC P-5363 re There was presented Mayor and Council Communication No P-5363 from the City Manager
purchase agreement submitting a tabulation of bids received for a purchase agreement for the purchase and
with Davis Glas Compan installation of glass for buildings for the City of Fort Worth; stating that the Director
of Fiscal Services certifies that funds required for the anticipated expenditures of each
department eligible to participate in this agreement are available in the operating budget,
as appropriated; and recommending that the City Council, authorize a purchase agreement with
Davis Glass Company on its overall low bid of unit prices net, f.o.b. Fort Worth, with term
of agreement to begin December 1, 1991, and end November 30, 1992. It was the consensus of
the City Council that the recommendations be adopted.
M&C P-5364 re
There was presented Mayor and Council Communication No. P-5364 from the City Manager
purchase agreement
submitting a tabulation of bids received for,an annual purchase agreement for reinked line
from Wespac/Texas
printer ribbons for the Information Systems and -Services Department; stating that the
Gulf States
Director of Fiscal Services certifies that funds required for this agreement are available
inch
in the current operating budget, as appropriated, of the General Fund; and recommending that
to begin
the City Council authorize the purchase agreement with Wespac/Texas Gulf States based on
and end September 30,
unit price of $7.00 each net, f.o.b. inside delivery Fort Worth, not to exceed $10,500.00,
BID TABULATION:
with term of agreement to begin December 1, 1991, and end November 30, 1992. It was the
consensus of the City Council that the recommendations be adopted.
MAC P-5365 re
purchase from C.E.H.,
There was presented Mayor and Council Communication No. P-5365 from the City Manager
Inc.
submitting a tabulation of bids received for the purchase and installation of a chain link
fence for the Park and Recreation Department; stating that the Director of Fiscal Services
certifies that funds are available in the capital budget, as appropriated, in the Park and
Star
Recreation Improvements Fund; and recommending that the City Council authorize the purchase
E1 Sol
and installation from C.E.H., Inc., on its low bid meeting specifications of $17,499.00, net
f.o.b. Fort Worth. It was the consensus of the City Council that the recommendation be
Telegram
adopted. ,:_ ,
MAC P-5366 re
There was presented Mayor and Council Communication No., P-5366 from the City Manager,
purchase agreement
as follows:
with Fort Worth
Dallas, TX Ft. Worth, TX
Commercial Recorder
SUBJECT: PURCHASE AGREEMENT WITH FORT WORTH COMMERCIAL RECORDER FOR THE
PUBLICATION OF OFFICIAL CITY NOTICES AND DISPLAY ADVERTISEMENTS FOR
THE CITY OF FORT WORTH
RECOMMENDATION:
It is recommended that the City Council authorize:
1. A purchase agreement with Fort Worth Commercial Recorder for the
publication of official City notices and display advertisements for the
City of Fort Worth on the following unit prices:;
1. Publication of official notices (ordinances, $0.15 per agate
bid requests, resolutions) on any week day. line
2. Publication of display advertisements on
$4.00
per column
any week
day.
inch
2. The agreement
to begin
October 1, 1991
and end September 30,
1992.
BID TABULATION:
- - Fort Worth -
Dallas
El
Commercial
Star
Morning
E1 Sol
Infonmador
Recorder
Telegram
News
de Texas
Hispanio
Ft. Worth, TX
Ft. Worth, TX
Dallas, TX
Dallas, TX Ft. Worth, TX
1. Cost per agate
line for offi-
cial notices
in daily
paper.
$0.15
$0.21
$ 0.72
$0.50
$1.92
2. Cost per agate
line for Sat.
or Sunday NB $0.65 $ 0.72 NB NB
Minutes of City Council T-3 Page 163
I • N
Tuesday, December 10, 1991
3. Cost per col -
M&C P-5366 cont. umn inch for
display ads in
daily paper. $4.00 NB $10.08 $6.14 $7.69
4. Cost per col-
umn inch in
Sat. or Sunday
paper. NB NB $10.08 NB NB
Weekly Weekly
Publication Publication
Invitations to bid were mailed to four vendors. Zero no -bids were received and
one vendor, The Dallas Times Herald, did not respond. This bid was advertised
in the Fort Worth Star -Telegram on August 22, 23, 29 and August 30, 1991.
DISCUSSION:
The two Hispanic newspapers, El Sol de Texas and E1 Informador Hispano, are
weekly publications and are not newspapers published daily or of general
circulation and cannot be named as the City's official publication.
The various City Departments will use this purchase agreement for the
publication of official City notices, discretionary ads for personnel
recruitment and display advertisements.
The recommended vendor did comply with the City's DBE policy.
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that the funds' required for the
anticipated expenditures of each department eligible to participate in this
agreement are available in the FY 91-92 operating budget, as appropriated, of
the appropriate funds. All purchase orders issued against this agreement will
be reviewed for sufficiency of funds prior to release.
Mr. Jim Shell re Mr. Jim Shell, representing the Fort Worth Commercial Recorder, 901 Fort Worth Club,
M&C P-5366 appeared before the City Council and caTTed attention of thei� y Council to Chapter 27 in
the City Charter regarding the 'publication of official City notices and display
advertisements and requested that the City Council give favorable consideration to the
action on today regarding the purchase agreement being awarded to Fort Worth Commercial
Recorder for publication of official City notices and display advertisements for the City
of Fort Worth.
Council Member McCray made a motion, seconded by Council Member Matson, that the
recommendations, as contained in Mayor and Council Communication No. P-5366, be adopted.
When the motion was put to a vote by the Mayor, it prevailed unanimously.
M&C P-5367 re There was presented Mayor and Council Communication No. P-5367 from the City Manager,
purchase from Midwest as follows:
Employers Casualty
Company SUBJECT: PURCHASE OF EXCESS WORKERS' COMPENSATION INSURANCE FOR 1992 FROM
MIDWEST EMPLOYERS CASUALTY COMPANY FOR THE RISK MANAGEMENT
DEPARTMENT
RECOMMENDATION:
It is recommended that the City Council authorize purchase of excess workers'
compensation insurance for 1992 from Midwest'Employers Casualty Company (non-
rated company by A.M. Best) with a $350,000 City retention per incident through
bids submitted by Alexander and Alexander of Texas, Inc. Estimated premium for
the recommended purchase is $137,398. Final premium is subject to adjustment
following audit of the City's actual 1992 payroll.
BID TABULATION:
(See Attached Bid Tabulation)
Invitations to bid were mailed to fifteen prospective bidders. Zero no -bids
were received and twelve vendors did not respond. This bid was advertised in
the Fort Worth Star -Telegram on September 12 and 19, 1991.
DISCUSSION:
As part of the City's Workers' Compensation Self -Insurance Program, excess
insurance has been purchased to protect the City against catastrophic losses as
well as to provide employer's liability insurance against possible lawsuit for
damages outside the protection of workers' compensation laws. The current
insurance policy is with Midwest Employers Casualty Company and is due to expire
January 1, 1992. The insurance recommended to be purchased will include single
incident excess coverage with City retention of $350,000 and insurance coverage
to no maximum limit per incident and employer's liability insurance with
$1,000,000 per occurrence. (Exception - the maximum coverage available after
City retention of $350,000 per incident would be $5 million [$1 million per
person] for injuries involving aircraft.) The coverages provided in the
recommended purchase for 1992 are the same as those provided in the current
policy for 1991.
Minutes of City Council T-3 Page 164
165
Tuesday, December 10, 1991
The City, through a recent competitive bid process, asked for bids for the
MAC P-5367 cant. subject coverages for 1992. City bid specifications requested bids for workers'
compensation single incident coverage at four City, retention levels: $300,000;
$350,000; $400,000; and $500,000. Specifications for each of these retentions
called for either statutory levels of coverage or $10 million per incident
beyond City ,retention levels. Employer's liability bids were requested at
$500,000 per occurrence and $1,000,000 per occurrence. Specifications stated
aggregate stop loss coverage was not a mandatory part of the bid, but such bids
would be considered.
Three companies, Alexander and Alexander of Texas, Inc.; Willis -Corroon, Inc.;
and the Texas Municipal League submitted bids. The bid submitted by the Texas
Municipal League did not meet City bid specifications, and therefore was not
considered. A total of four bids were submitted by.the remaining two firms.
No bids were received for aggregate stop loss coverage.
In all of the responses, the basic bid excluded the requested. insurance
coverages for aircraft related injuries, but provided this coverage for an
additional premium. None of the bidders submitted quotes for single incident
retention of $300,000 as requested in City specifications. One bid was
submitted at both the $350,000 and $400,000 retention level._ In addition, two
bids were received with $500,000 City retention. All basic premium estimates
were based on a percentage of the City's estimated annual payroll. (The final
premium total will not be determined until after an audit of the City's actual
1992 payroll).
One of the companies, Midwest Employers Casualty Company I(the City's present and
recommended continued insurer), is a relatively new company and cannot yet be
rated by A.M. Best. However, this company has shown solid financial growth over
the past five years. The insurance companies involved in this bid process,
along with their Best ratings and agencies submitting the bids, are as follows:
1. Midwest Employers Casualty Company
Best Rating: NA-3VI (Not available — Fifth year)
Agency: Alexander and Alexander of Texas, Inc.
2. General Reinsurance Corporation
Best Rating: A+ XV
Agency: Willis -Corroon, Inc.
3. Firemans Fund*
Best Rating: A XIII
Agency: Willis -Corroon, Inc.
*Participating as a reinsurer for bids
Corporation.
involving General Reinsurance
A summary of proposals to include coverages and estimated premiums submitted by
each company can be found in the attached Bid Tabulation.
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that funds required for this purchase
are available in the current operating budget, as appropriated, of the Workers'
Compensation Insurance Fund.
MAC P-5367 adopted It was the consensus of the City Council that the recommendation, as contained in Mayor and
Council Communication No. P-5367, be adopted.
M&C P-5368 re There was presented Mayor and Council Communication No. P-5368 from the City Manager
purchase from J. submitting a tabulation of bids received for the purchase of distinguish service awards for
Brandt the Personnel Department; stating that the Director of Fiscal Services certifies that funds
required for this agreement are available in the current operating budget, as appropriated,
of the General Fund; and recommending that the purchase be made on a low -bid -item basis from
J. Brandt for an amount not to exceed $1,875.00, Award Incentive for an amount not to exceed
$689.76, and Josten's Inc. for an amount not to exceed $2,623.60 for a total amount not to
exceed $5,188.36. It was the consensus of the City Council that the recommendations be
adopted.
MAC L-10738 re
There was presented Mayor and Council Communication No. -L-10738 from the City Manager
bond fund transfer
stating that eminent domain proceedings were held on November.5, 1991, Cause No. 236 -137683 -
as a result of emineni
91 to acquire right-of-way, drainage easement, and slope easement out of Tract 31, R.R.
domain
Ramey Survey, Abstract 1341; that the Director of Fiscal Services certifies that funds for
the acquisition are available in the current capital budget, as appropriated, of the Street
Improvements Bond Fund; and recommending that the City Council authorize a $15,260.00 bond
fund transfer from the City share of SDHPT Project Unspecified to the Green Oaks Boulevard,
Pass Project in the Street Improvements Bond Fund, and authorize the award of Special
Commissioners in the amount of $15,260.00 as provided by law, as a result of eminent domain
proceedings for acquisition of the right-of-way, drainage easement, and slope easement
located on a portion of.Tract 31, R.R. Ramey Survey, Abstract 1341. It was the consensus
of the City Council that the recommendations be adopted.
MAC L-10739 re
bond fund transfer
There was presented Mayor and Council Communication No. L-10739 from the City Manager
as a result of emineni
stating that eminent domain proceedings were held on November 6, 1991, Cause No. 48 -137680 -
domain
91 to acquire right-of-way and slope easement out of Tract IB, S.C. Culver Survey, Abstract
276; that a check is to be made payable to Thomas P. Hughes, District Clerk; that the
Director of Fiscal Services certifies that funds for this acquisition are available in the
current capital budget, as appropriated, of- the Street- Improvements Bond Fund; and
Minutes of City Council T-3 Page 165
166
Tuesday, December 10, 1991
M&C L-10703 cont. recommending that the City Council authorize a $23,800.00 bond fund transfer from the City's
share of SDHPT Project Unspecified to the Green Oaks Boulevard Pass Project in the Street
Improvements Bond Fund, and authorize the award of the Special Commissioners in the amount
of $23,800.00 as provided by law, -as a result of eminent domain proceedings for acquisition
of the right-of-way and slope easement located on a portion of Tract IB, S.C. Culver Survey,
Abstract 276. It was the consensus of the City Council that.the recommendations be adopted.
M&C L-10740 re There was presented Mayor and Council Communication No. L-10740 from the City Manager
acquisition of per- recommending that the City Council authorize the acquisition of permanent easement described
manent easement as a portion of Lot 1, Block 1, Fort Worth Steel and Machinery Company plant site; find that
$1.00 is just compensation for property acquired from Martin Sprocket & Gear, Inc., for
extension of Merida Avenue for fire hydrant and 290 feet/six inch water extension; and
authorize the acceptance and recording of the appropriate easement. It was the consensus
of the City Council that the recommendations be adopted.
M&C L-10741 re There was presented Mayor and Council Communication No. L-10741 from the City Manager
acquisition of ease- recommending that the City Council authorize the acquisition of an easement described as a
ment portion of Lot 13, Block 17, Southside Addition (805 W. Broadus Avenue for M-89 and 14 Sewer
Line Replacement from Angel Martinez for a total consideration of $100.00, and authorize the
acceptance and recording of the appropriate easement. It was the consensus of the City
Council that the recommendations be adopted.
M&C L-10742 re There was presented Mayor and Council Communication No. L-10742 from the City Manager
acquisition of right- recommending that the City Council authorize the acquisition of right-of-way and temporary
of -way and temporary construction easement described as a portion of Lot 4, Block 18, Glen Park Addition (4800
construction easement Nolan Street); find that $450.00 is just compensation for property acquired from Michael L.
Rolf for reconstruction of Martin Avenue from Wichita to Shackleford; and authorize the
acceptance and recording of the appropriate deed. It was the consensus of the City Council
that the recommendations be adopted.
M&C L-10743 re There was presented Mayor and Council Communication No. L-10743 from the City Manager
acquisition of right- recommending that the City Council authorize the acquisition of right-of-way described as
of -way a portion of Lot L, Block 16, Trentman Revision (4745 Erath Street); find that $253.00 is
just compensation for property acquired from Kathryn Y. Good for reconstruction of Martin
Street from Wichita to Shackleford; and authorize the acceptance and recording of the
appropriate deed. It was the consensus of the City Council that the recommendations be
adopted.
M&C L-10744 re There was presented Mayor and Council Communication No. L-10744 from the City Manager
acquisition of per- recommending that the City Council authorize the acquisition of permanent and temporary
manent and temporary easements at 2610 Hutchinson Street, described as a portion of Lot 8, Block 27, Diamond Hill
easements Addition; find that $512.00 is just compensation for property acquired from Malinda M.
Sellers for Malone Street Reconstruction; and authorize the acceptance and recording of the
appropriate deed. It was the consensus of the City Council that the recommendations be
adopted.
M&C L-10745 re There was presented Mayor and Council Communication No. L-10745 from the City Manager
acquisition of per- recommending that the City Council authorize the acquisition of permanent and temporary
manent and temporary easements described as a portion of Lot 19, Block 10, Southside Addition (722 W. Kellis
easements Street) from Raul Sancen et ux Maria E. Sancen for a total consideration of $370.00 for M-89
and 14 Sewer Line Replacement; and authorize the acceptance and recording of the appropriate
easements. It was the consensus of the City Council that the recommendations be adopted.
M&C L-10746 re There was presented Mayor and Council Communication No. L-10746 from the City Manager
acquisition of a tem- recommending that the City Council authorize the acquisition of a temporary construction
porary construction easement described as being a portion of the west 5 feet of Lot 6, Block 3, Coronado Hills
easement Addition (2904 Rio Vista Road); find that $1.00 is just compensation for property acquired
,from Raymond D. and Diana Godfrey, III for a drainage reconstruction project at Rio Vista
Road from Trevino Road to Calmont Avenue; and authorize the acceptance of the appropriate
easement. It was the consensus of the City Council that the recommendations be adopted.
M&C L-10747 re There was presented Mayor and Council Communication No. L-10747 from the City Manager
acquisition of tem- recommending that the City Council authorize the acquisition'of a temporary construction
porary construction easement described as a 15 foot strip out of Lot 25, Block 68, South Hills Addition (2817
easement Southgate Drive) from Steve Towne for reconstruction of Sanitary Sewer Main 240 for a total
consideration of $1.00, and authorize the acceptance of the appropriate deed. It was the
consensus of the City Council that the recommendations be adopted.
M&C L-10748 re There was presented Mayor and Council Communication No. L-10748 from the City Manager
acquisition of tem- recommending that the City Council authorize the acquisition of a temporary construction
porary construction easement described as a 15 foot strip out of Lot 16, Block 69, South Hills Addition, (2817
easement Larkin Avenue) from Emanuel Corley and Jacquelyn F. Corley for reconstruction of Sanitary
Sewer Main 240 for a total consideration of $1.00, and authorize the acceptance of the
appropriate deed. It was the consensus of the City Council that the recommendations be
adopted.
M&C L-10749 re There was presented Mayor and Council Communication No: L-10749 from the City Manager
acquisition of tem- recommending that the City Council authorize the acquisition of a temporary construction
porary construction easement described as a 15 -foot strip out of Lot 28, Block 68, South Hills Addition (2829
easement Southgate Drive) from David Purifoy and Joy Purifoy for reconstruction of Sanitary Sewer
Main 240 for a total consideration of $1.00, and authorize the acceptance of the appropriate
deed. It was the consensus of the City Council that the recommendations be adopted.
M&C L-10750 re
acquisition of tem- There was presented Mayor and Council Communication No. L-10750 from the City Manager
porary construction recommending that the City Council authorize the acquisition of a temporary construction
easement easement described as a 15 -foot strip out of Lot 23, Block 60, South Hills Addition (5617
Odessa Avenue) from Edward Meinstein for reconstruction of Sanitary Sewer Main 240, for a
Minutes of City Council T-3 Page 166
167
Tuesday, December 10, 1991
&C L-10750 cont. total consideration of $1.00, and authorize the acceptance of the appropriate deed. It was
nd adopted the consensus of the City Council that the recommendations be adopted.
&C L-10751 re There was presented Mayor and Council Communication No. L-10751 from the City Manager
cquisition of tem- recommending that the City Council authorize the acquisition of a temporary construction
orary construction easement described as a 15 -foot square out of the northwest corner of Lot 10, Block 69,
asement South Hills Addition (2800 Wren Avenue) from Salvador Iacabucci and Irmgard Iacabucci for
reconstruction of Sanitary Sewer Main 240, for a total consideration of $1.00, and authorize
the acceptance of the appropriate deed. It was the consensus of the City Council that the
recommendations be adopted.
L-10752 re
There was presented Mayor and Council Communication No. L-10752 from the
City Manager
uisition of tem-
recommending that the City Council authorize the acquisition of a temporary
construction
ary construction
easement described as a 15 X 20 foot square out of the southeast corner of Lot 32, Block 68,
ement
South Hills Addition (2845 Southgate Drive) from Jerry Martin and Jerry Martin
as attorney-
in-fact for Charles R. Martin for reconstruction of Sanitary Sewer Main 240,
for a total
consideration of $1.00, and authorize the acceptance of the appropriate deed.
It was the
consensus of the City Council that the recommendations be'adopted.
L-10753 re
There was presented Mayor and Council Communication No. L-10753 from the
City Manager
uisition of right-
recommending that the City Council authorize the acquisition of right-of-way and
permanent
way and permanent
and temporary easements described as a portion of Lots R-11 and R-12, Block 31,
Diamond Hill
temporary easement
Addition (2528 Moore Avenue); find that $744.00 is just compensation for property
acquired
from Cliff Heflin for Moore Avenue Reconstruction from Irion Street to Hale
Street, and
authorize the acceptance and recording of the appropriate deed and easements.
It was the
consensus of the City Council that the recommendations be adopted.
&C L-10754 re There was presented Mayor and Council Communication No. L-10754 from the City Manager
and fund trnasfer recommending that the City Council authorize the acquisition of right-of-way for a portion
roperty of Tract 2B4A of Tract 2B4A, J.M. Steiner Survey, Abstract 1972; find that $49,000.00 is just compensation
.M. Steiner Survey for property acquired from C.E. Cornutt, required for Green Oaks Boulevard Project;
authorize the City Manager to execute an agreement in lieu of condemnation; authorize the
acceptance and recording of the appropriate deed; and approve a $49,000.00 bond fund
transfer from the City Share of SDHPT Project Unspecified to the Green Oaks Boulevard Pass
Project in the Street Improvements Fund. It was the consensus of the City Council that the
recommendations be adopted.
M&C L-10755 re There was presented Mayor and Council Communication No. L-10755 from the City Manager
bond fund transfer recommending that the City Council authorize the acquisition of property described as a
Tract 32A, R.R. Ramey portion of Tract 32A, R.R. Ramey Survey, Abstract 1341; find that $45,975.00 is just
Survey compensation for property acquired from Arlington Development Associates for Green Oaks
Boulevard Project; authorize the City Manager to execute an agreement in lieu of
condemnation; authorize the acceptance and recording of the appropriate deed; and approve
a $45,975.00 Bond Fund Transfer from the City Share of SDHPT Project Unspecified to the
Green Oaks Blvd. Pass Project in the Street Improvements Fund. It was the consensus of the
City Council that the recommendations be adopted.
&C C-13165 re There was presented Mayor and Council Communication No. C-13165 from the City Manager
greement with T.U. submitting a proposed contract for the installation of community facilities to serve
lectric Company Eastchase Substation Addition, Block 1, Lot 1; describing the estimated cost of the
community facilities and fiscal information/certification; and recommending that the City
Manager be authorized to execute a Community Facilities Agreement with the developer, T. U.
Electric Company, for the installation of community facilities for Eastchase Substation
Addition Block 1, Lot 1.
ity Attorney Adkins City Attorney Adkins advised the City Council that he believes this is same facility
e M&C C-13165 discussed in the newspaper and advised Council that the City Council does not have any
choice, but to approve this Mayor and Council Communication, since the Court ruled that this
location is the proper location for this type of facility.
Council Member Matson made a motion, seconded by Council Member Woods, that Mayor and
Council Communication No. C-13165 be adopted. When the motion was put to a vote by the
Mayor, it prevailed unanimously.
M&C C-13166 re There was presented Mayor and Council Communication No. C-13166 from the City Manager,
contract with as follows:
Continental Loss
Adjusting Services, SUBJECT: CONTRACT FOR WORKERS' COMPENSATION CLAIMS ADMINISTRATION SERVICES
Inc. WITH CONTINENTAL LOSS ADJUSTING SERVICES, INC. FOR THE RISK
MANAGEMENT DEPARTMENT i
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute
a contract with Continental Loss Adjusting Services, Inc. (formerly Underwriters
Adjusting Company) to provide, as specified below, Workers' Compensation Claims
Administration Services to the City's Self -Insured Workers' Compensation
Program, the term of this contract to be for a period of one year beginning
January 1, 1992, and ending January 1, 1993, with the City having the option to
renew the contract for two additional one year periods. The estimated cost of
the first year of service, based on Continental Loss Adjusting Services, Inc.'s
cost per claim and other services bid, is $274,424.00, with the second year
estimated cost being $276,576.00, and the third year estimated cost being
$278,774.00.
Minutes of City Council T-3 Page 167
M&C C-13166 cont.
M&C C-13166 adopted
M&C C-13167 re
lease with Greater
International Cor-
poration
Tuesday, December 10, 1991
BID TABULATION:
(See Attached Bid Tabulation)
Invitations to bid were mailed to fifteen prospective bidders. One no -bid was
received and eight vendors did not respond. This bid was advertised in the Fort
Worth Star -Telegram on October 3, and 10; 1991.
DISCUSSION:
Since January 1, 1984, the workers' compensation adjusting services have been
provided to the City by Continental Loss Adjusting Services, Inc. The current
contract period for this service expires January 1, 1992. To insure continuity
of claims administration services, the City recently initiated a competitive bid
process. The time period for these services advertised in the City bid
specifications was for either a three-year period beginning January 1, 1992, or
a one-year period beginning January 1, 1992, with pricing data available for two
optional one-year renewal periods beginning January 1, 1993, and January 1,
1994.
Of the six companies who submitted bids, three were considered as responsive.
These three firms are:
1. HARTFORD SPECIALTY COMPANY. (Bid submitted by Alexander &
Alexander of Texas,,Inc.).
2. TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE
FUND (Claims services for, this fund are provided by Texas Employer
Insurance Association).
3. CONTINENTAL LOSS ADJUSTING SERVICES, INC., (A wholly owned
subsidiary of The Continental Corporation);—
The bids of three other firms were received and reviewed by City staff but were
eliminated as contenders because various provisions of their bids did not meet
City specifications. These firms are:
1. ALEXIS RISK MANAGEMENT SERVICES, INC.
2. GAB BUSINESS SERVICES, INC.
3. TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND
The major considerations in awarding this contract are:
1. The quality of claims service provided to keep the City's self-
insured paid losses at the lowest possible level, and
2. The price to be paid for these services.
Each of these bids were evaluated thoroughly. The bid offered by Continental
Loss Adjusting Services, Inc. provides the high quality service required by the
City and the lowest cost structure. It also offers the following advantages to
the City:
1. Continuity of a successful working relationship with City staff
which has developed over the previous 8 years.
2. A proven high quality of claims adjusting service which has
minimized City paid losses during the past 8 years.
3. Use of experienced workers' compensation staff .with a most
conservative approach to disposition of City claims to continue a
minimum level of paid losses.
4. The lowest cost available for these services.
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that funds for this purchase are
available in the current operating budget, as appropriated, of the Workers'
Compensation Insurance Fund. Costs for subsequent years' contract renewals will
be budgeted annually.
Council Member Meadows made a motion, seconded by Council' Member Woods, that the
recommendation be adopted. When the motion was put to a vote by the Mayor, it prevailed
unanimously.
There was presented Mayor and Council Communication No. C-13167 from the City Manager
stating that, Greater International Corporation, under City Secretary Contract No. 6817,
leased land and built a six unit T -Hangar with associated apron area; that the term of the
lease was for 20 years which commenced August 1, 1971, and ended July 31, 1991; that the
terms and conditions of the lease allow for a new lease extension for two additional
consecutive five-year periods on such terms and conditions as lessor may prescribe and with
the rentals provided for therein to be based on rental rates of comparable properties at
Meacham Airport at the time of the execution of each additional lease agreement; that
Greater International Corporation has requested in writing a new lease for the subject
property and, although Greater International Corporation has requested extension of the
lease at the present ground rental rate of $0.18 per square foot per year, staff recommends
that Greater International Corporation be permitted to lease Hangar Location 14 South for
13 months cancelable by the City upon -30 days notice; that the cancellation clause will
allow the City an opportunity to market the premises to a prospective tenant that is willing
to pay the full hangar rental rate; that, under the conditions of a shorter lease term,
staff recommends that $0.40 per square foot be charged during this interim period for the
hangar rather than the full hangar rental amount of $1.05 per square foot; that the new
agreement will commence September 1, 1991, and expire September 30, 1992, with a 30 day
cancellation clause; that a maintenance/damage deposit will be required in an amount equal
Minutes of City Council T-3 Page 168
Tuesday, December 10, 1991
M&C C-13167 cont. to two months rent; that rental adjustments will apply and the standard schedule of rates
and charges will be charged with the exception of hangar rental rate; that the
Administration Section of the Aviation Department is responsible for collection of funds due
the City under this agreement; and recommending that the City Manager be authorized to
execute a new lease with Greater International Corporation at Fort Worth Meacham Airport
under the terms referenced above.
Assistant City Manager
Assistant City Manager Ramon Guajardo appeared before the City Council and advised the
Ramon Guajardo re
City Council that approval of the lease with Greater International Corporation is not
M&C C-13167
consistent with the charges that the City charges its other tenants, but that staff felt
since there is not a prospective tenant for the rental of the hanger, staff would consider
leasing the hanger to Greater International Corporation at $0.40 per square foot during a
13 month period and, in the interim, the City would have to opportunity to market the
premises to a prospective tenant at the full rate of $1.05 per square foot, with a
cancellation clause to cancel the lease at the time a prospective tenant becomes available.
Council Member Chappell made a motion, seconded by Council Member Meadows, that the
recommendation, as contained in Mayor and Council Communication No. C-13167, be adopted.
When the motion was put to a vote by the Mayor, it prevailed unanimously.
M&C C-13168 re
There was presented Mayor and Council Communication No. C-13168 from the City Manager
renewal with Heard,
stating that the City Council authorized a contract with the firm of Heard, Goggan, Blair,
goggan, Blair and
Williams and Harrison on December 2, 1987, by Mayor and Council Communication No. C-10725
Williams
to perform collection services for the City and Fort Worth Independent School District for
two years with a City option to renew for two subsequent two-year periods under the same
terms and conditions; that the City Council authorized the renewal of the contract for the
first two-year period under the same terms and conditions; that, under this contract, the
firm collects delinquent tax accounts, paving, weeds, demolition, sales tax, improvement
district and hotel occupancy accounts for the City; that all costs of the operation are
borne by the firm and the firm is paid on a per cent of collection basis as set by State Tax
Code (tax accounts) or the contract (other accounts); that, since the City has contracted
with the firm of Heard, Goggan, Blair and Williams, the firm has established and maintained
an aggressive delinquent collection program which is well coordinated with City staff
efforts; that the recommended two-year contract extension does not include the collection
of delinquent accounts for Fort Worth Independent School District; that effective
October 1, 1991, the City no longer collects taxes for the District; that the Director of
Fiscal Services certifies that funds required for this expenditure are available in the
current operating budget, as appropriated, of the General Fund; and recommending that the
City Manager be authorized to exercise the City's option for the second two-year renewal of
City Secretary Contract No. 16174 with the firm of Heard, Goggan, Blair and Williams for the
collection of delinquent taxes and certain other accounts for the City of Fort Worth.
Council Member
Council Member Chappell requested that the renewal option of City Secretary Contract
Chappell re MAC
16174 with the firm of Heard, Goggin, Blair, and Williams for the collection of delinquent
C-1.3168
taxes and certain other accounts for the City of Fort Worth be amended to renew for one year
and requested that the staff explore alternative methods for the various collections. and
report back after 60 -days.
Council Member Chappell made a motion, seconded by Council Member Meadows, that Mayor
and Council Communication No. C-13168 be approved, as amended. When the motion was put to
a vote by the Mayor, it prevailed unanimously.
M&C C-13169 re There was presented Mayor and Council Communication No. C-13169 from the City Manager,
contract with as follows:
Southwestern Bell
Telephone Company SUBJECT: CONTRACT WITH SOUTHWESTERN BELL TELEPHONE COMPANY FOR DATA TRANSFER
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to enter into a contract with Southwestern Bell
Telephone Company for data exchange in computer form, and
2. Accept payment from Southwestern Bell Telephone for hardware, software and
services used to provide a current copy of computerized Tarrant County
base maps not to exceed a $104,000.00 one time charge and $9,000.00 per
year thereafter; providing for a 90 -day termination by either party, and
3. Adopt the attached supplemental appropriations ordinance increasing
General Fund Information Systems and Services Administration revenues and
appropriations by $104,000.00 from increased revenues.
DISCUSSION!
The City of Fort Worth is continuing to expand its geoprocessing data base in
support of infrastructure management. In April of '1987, the City Council
authorized the City Manager to enter into a public partnership agreement between
the City and Tarrant Appraisal District which allowed for data exchange. This
exchange has been of great benefit to both parties. "In October 1990, the City
Council authorized the City Manager to enter into a similar partnership
agreement between the City and Lone Star Gas with $122,000.00 to be paid to the
City during the first three years. The City again has an opportunity to expand
its geoprocessing data base by entering into an agreement with Southwestern Bell
Telephone for data exchange. The exchange would primarily consist of the
following elements: 1) the City will give base map data to Southwestern Bell
Telephone in computer form, 2) Southwestern Bell will give to the City maps of
all telephone lines along with future updates, in computer form, and 3)
Minutes of City Council T-3 Page 169
170
Tuesday, December 10, 1991
Southwestern Bell will pay additional compensation to the City of Fort Worth as
C-13169 cont. a part of the exchange, for updated information in future years.
The revenue received from Southwestern Bell will be used by Information Systems
and Services to defray expenses of providing the information to include
upgrading an existing staff position.
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that upon approval of Recommendation
No. 3, funds for this expenditure will be available in the General Fund.
uncil Member Matson Council Member Meadows advised the City Council.that he will be filing a conflict of
C C-13169 interest affidavit on Mayor and Council Communication No. C-13169 for contract with
Southwestern Bell Telephone Company for data transfer service.
Council Member Chappell made a motion, seconded by Council Member Silcox, that the
recommendations, as contained in Mayor and Council Communication No. C-13169, be adopted.
When the motion was put to a vote by the Mayor, it prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, and Chappell.
NOES: None
ABSENT: Council Member Puente
NOT VOTING: Council Member Meadows
Introduced an Council Member Chappell introduced an ordinance and made a motion that it be adopted.
ordinance The motion was seconded by Council Member Silcox. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, and Chappell
NOES: None
ABSENT: Council Member Puente
NOT VOTING: Council Member Meadows
The ordinance, as adopted, is as follows:
O
Ordinance No. 10970 RDINANCE NO. 10970
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GENERAL FUND IN THE AMOUNT OF $104,000.00 FOR THE PURPOSE OF
ACCEPTING PAYMENT FROM SOUTHWESTERN BELL TELEPHONE FOR SERVICES
USED TO PROVIDE A CURRENT COPY OF COMPUTERIZED TARRANT COUNTY BASE
MAPS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES
IN CONFLICT HEREWITH; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
SECTION 5.
This ordinance shall take effect and be in full force and effect from and
after the date of its passage, and it is so ordained.
M&C C-13170 re There was presented Mayor and Council Communication No. C-13170 from the City Manager
bond fund transfer submitting a tabulation of bids received for construction and renovation of Forest Park
and contract with Pool; stating that the Director of Fiscal Services certifies that funds required for this
Paddock Southwest, project are available in the current capital budget of the Park and Recreation Improvement
Inc. Funds; and recommending that the City Council approve a $29,615.52 bond fund transfer from
Park and Recreation Improvements Fund, All Districts -Unspecified to Forest Park; approve a
$26,844.40 bond fund transfer from Park and Recreation Improvements Fund, Athletic Fields
to Forest Park General Development; and authorize the City Manager to execute a construction
contract with Paddock Southwest, Inc., for construction and renovation of Forest Park Pool
in the amount of $631,565.00. Council Member Chappell made a motion, seconded by Council
Member Meadows, that the recommendation be adopted.
Mayor Granger execused Mayor Granger excused herself from the Council table at this time and Mayor Pro
herself from the tempore Webber assumed the chair.
Council table
Assistant City Manager Assistant City Manager Libby Watson appeared before the City Council and advised the
Libby Watson re City Council that the majority of the funding of this proposed project is through the 1986
M&C C-13170 CIP Forest Park Pool Account in the amount of $508,334.72; that it is proposed to transfer
$29,615.52 from 1978 CIP Unspecified to this project as well as $26,844.40 from 1986 CIP
Athletic Fields; and stated that the remaining funding sources would be the entire balance
,in 1986 CIP Fort Park General in the amount of $115,468.73 and 1982 CIP Forest Park in the
amount of $471.63 and 1978 CIP Forest Park in the amount of $19,265.00 and advised Council
that all the bonds have been sold.
Minutes of City Council T-3 Page 170
171
Tuesday, December 10, 1991
Council Member Matson Council Member Matson requested that City Council be provided with information where
re M&C C-13170 bonds have already been voted on by the citizens and are available to be moved into other
areas.
When the motion that the recommendations, as contained in Mayor and Council
Communication No. C-13170, be adopted, were put to a vote by the Mayor Pro tempore Webber,
it prevailed by the following vote:
AYES: Mayor Pro tempore Webber; Council Members Matson, McCray, Woods,
Meadows, and Chappell
NOES: Council Member Silcox
ABSENT: Mayor Granger and Council Member Puente
M&C C-13171 re
There was presented Mayor and Council Communication No. C-13171 from the City Manager
amendment with
stating that the City Council on September 25, 1990, approved Mayor and Council
Telecom Satellite
Communication No. C-12516 for Telecom Satellite Systems Corporation to provide cable
Systems Corporation
television service to two apartment complexes; that the construction, under the limited
franchise policy, passed the Vanderbilt Apartments; that, since no additional construction
is required to supply service to the location, it is in the best interest of the City and
Telecom Satellite Corporation to amend the contract to include service to this additional
M&C C-13173 re
location; stating that the City Manager's Office, Communications Division, will be
agreement with
responsible for collection and deposit of these quarterly franchise fee payments; and
Telecom Satellite
recommending that the City Council amend City Secretary Contract No. 18365 to include multi-
systems
family dwellings in the Vanderbilt Apartments. It was the consensus of the City Council
that the recommendation be adopted.
M&C C-13172 re
There was presented Mayor and Council Communication No. C-13172 from the City Manager
agreement with
stating that an application was received by Telecom Satellite' Systems Corporation on
Telecom Satellite
November 14, 1991, to provide cable television service to two apartment complexes in Fort
Systems
Worth; that construction of the system will require the use of the City's limited franchise
policy; that the franchisee will pay a franchise fee of five percent of its gross subscriber
revenue; that the City Manager's Office, Communications Division, will be responsible for
collection and deposit of these quarterly franchise fee payments; and recommending that the
City Council adopt an ordinance, granting a limited cable television franchise to Telecom
Satellite Systems Corporation, and authorize the City Manager to execute a franchise
agreement with Telecom Satellite Systems Corporation to provide cable television service to
the multi -family dwellings. It was the consensus of the City Council that the
recommendations be adopted.
Introduced an
Council Member Chappell introduced an ordinance and made a motion that it be adopted.
ordinance
The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Pro tempore Webber; Council Members Silcox, Matson, McCray,
Woods, Meadows, and Chappell
NOES: None
ABSENT: Mayor Granger and Council Member Puente
Introduced an Council Member Chappell introduced an ordinance and made a motion that it be adopted.
Ordinance The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Pro tempore Webber; Council Members Silcox, Matson, McCray,
Woods,'Meadows, and Chappell
NOES: None
ABSENT: Mayor Granger and Council Member Puente
The ordinance, as adopted, is as follows:
Minutes of City Council T-3 Page 171
The ordinance, as adopted, is as follows:
Ordinance No. 10971
ORDINANCE NO. 10971
AN ORDINANCE GRANTING A LIMITED FRANCHISE .TO TELECOM SATELLITE
SYSTEMS CORPORATION, TO OWN, OPERATE AND MAINTAIN A CABLE
COMMUNICATIONS SYSTEM IN FORT WORTH, TEXAS, SETTING FORTH
CONDITIONS ACCOMPANYING THE GRANT OF FRANCHISE, AND PROVIDING FOR
THE REGULATION AND USE OF THE SYSTEM.
M&C C-13173 re
There was presented Mayor and Council Communication No. C-13173 from the City Manager
agreement with
stating that an application was received by Telecom Satellite Systems Corporation on
Telecom Satellite
November 20, 1991, to provide cable television service to two apartment complexes in Fort
systems
Worth; that construction of the system will require the use of the City's limited franchise
policy; that the franchisee will pay a franchise fee of five percent of its gross subscriber
revenue; that the City Manager's Office, Communications Division,'will be responsible for
collection and deposit of these quarterly franchise fee payments; and recommending that the
City Council adopt an ordinance, granting a limited cable television franchise to Telecom
Satellite Systems Corporation and authorize the City •Manager'to execute a franchise
agreement with Telecom Satellite Systems Corporation to provide cable television service to
the multi -family dwellings. It was the consensus, of the City Council that the
recommendations be adopted.
Introduced an Council Member Chappell introduced an ordinance and made a motion that it be adopted.
Ordinance The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Pro tempore Webber; Council Members Silcox, Matson, McCray,
Woods,'Meadows, and Chappell
NOES: None
ABSENT: Mayor Granger and Council Member Puente
The ordinance, as adopted, is as follows:
Minutes of City Council T-3 Page 171
I
172
Tuesday, December 10, 1991
ORDINANCE NO. 10972
Ordinance No.
10972 AN ORDINANCE GRANTING A LIMITED FRANCHISE TO TELECOM SATELLITE
SYSTEMS CORPORATION, TO OWN, OPERATE AND MAINTAIN A CABLE
COMMUNICATIONS SYSTEM IN FORT WORTH, TEXAS, SETTING FORTH
CONDITIONS ACCOMPANYING THE GRANT OF FRANCHISE, AND PROVIDING FOR
THE REGULATION AND USE OF.THE SYSTEM.
MAC C-13174 re I There was presented Mayor and Council Communication No. C-13174 from the City Manager,
change order as llows:
No. 1 with
Oscar Renda SUBJECT: REPROPOSED CHANGE ORDER. NO. 1 TO TEMPORARY SLUDGE DEWATERING
Construction, Inc. PROJECT, VCWWTP, OSCAR RENDA CONSTRUCTION, INC.
RECOMMENDATION:
It is recommended that the City Council authorize Change Order No. 1 to City
Secretary Contract No. 18521 with Oscar Renda Construction, Inc., for Project
I - Temporary Sludge Dewatering and Disposal, and Project II - Sludge Removal
and Disposal from Sludge Drying Beds at the Village Creek Wastewater Treatment
Plant, at no additional contract cost, and a reduction of 35 calendar days from
the contract time for a total contract time of 330 days.
DISCUSSION:
On May 14, 1991 (M&C -12865), the City Council authorized the award of contract
and adoption of supplemental appropriation ordinance for Village Creek
Wastewater Treatment Plant Sludge Disposal to Oscar Renda Construction, Inc.
This, contract is divided into two projects, Project I - Temporary Sludge
Dewatering and Disposal, and Project II-- Sludge Removal and Disposal from
Sludge Drying Beds. Each project requires the contractor to process and land
apply wastewater sludge for disposal. During operation of this project it has
become necessary to change and/or modify several items to comply with actual
operating conditions.
The proposed changes are described on the attached sheets.
The net effect of the proposed change order is as follows:
Original Contract Cost
$8,145,400.00
1. Low Feed Solids Content
44,089.15
2. Secondary Hauling
28,800.00
3. Reduced Drying Bed Volume
<183,600.00>
4. Increased Belt Press Volume
110,710.85
Revised Contract Cost
$8,145,400.00
During the dewatering and hauling of sludge under Project I, an odor episode
occurred due to the quality of the sludge. Lime was applied to stop the odor.
Additional testing indicated that the volatile solids were high, which required
the addition of lime to prevent further odor problems in the field.
During the course of this contract it has become apparent that the fluctuating
quality of the wastewater coming into the plant requires continuous lime
stabilization to meet EPA regulations and reduce odor at all times. The
contractor has agreed to provide this stabilization for the remaining sludge at
the same unit price bid for.sludge which did not require stabilization.
On October 29, 1991 (M&C P-5301), the City Council authorized the leasing of a
boiler and expansion of the control system to provide a temporary digester
heating system. This system was expected to allow the City to meet the
requirements for land application without lime stabilization which would have
reduced the cost of Project I. Although the projected cost savings initially
envisioned for Project I will not be realized, it is still necessary to provide
the temporary digester heating to sustain the treatment effectiveness in the
winter months.
The consultant, Alan Plummer and Associates, Inc., and the resident engineer on
Project II, Albert Halff and Associates, and the resident engineer for the Water
Department have reviewed the proposed changes and time reduction and found them
to be reasonable.
M&C C-13174 It Is the consensus of the City Council that the recommendation, as contained in Mayor and
adopted Cour,.il Communication No. C-13174, be adopted.
Council Member
Chappell re Council Member Chappell made a motion, seconded by Council Member Matson, that Mayor
reconsider and ouncil Communication No. G-9417 be reconsidered at this time. When the motion was put
M&C G-9417 to a vote by the Mayor Pro tempore, it prevailed unanimously.
M&C G-9417 re There was presented Mayor and Council Communication No. G-9417 from the City Manager
settlement of sta ng that The lawsuit styled Glenda Bruan, Individually and as Heir to the Estate of
lawsuit styled How d Glenn Elliott, Jr., vs. City of Fort Worth, Steve Warren, and Bill Donovan, Cause
Glenda Braun No. 9-13362, was filed on November 6, 1989, by Mr. Ed Moore of the law firm of Windle
Turf y, alleging various causes of action in negligence arising from an incident in which
How d Glenn Elliott, Jr., died as a proximate result of the actions of Officer Steve
War n; that, while admitting no liability, but to avoid further and costly litigation, an
agr ment has been reached to settle this lawsuit in its entirety for $155,000.00; that the
Dir ptor of Fiscal Services certifies that the funds for this expenditure are available in
Minutes of City Council T-3 Page 172
173
Tuesday, December 10, 1991
G-9417 cant. the current operating budget of the Insurance Fund; and recommending that the City Council
approve the settlement of the referenced lawsuit; authorize the expenditure of $155,000.00
and taxable court costs not to exceed $5,000.00 in order to complete the settlement; and
authorize the appropriate City personnel to execute the documents necessary to complete the
settlement. Council Member Chappell made a motion, seconded by Council Member Meadows, that
Mayor and Council Communication No. G-9417 be adopted. When the motion was put to a vote
by the Mayor Pro tempore, it prevailed unanimously.
ng Hearing It appearing to the City Council that Resolution No. 1785 was adopted on November 19,
1991, setting today as the date for hearing in connection with the recommended changes and
amendments to Zoning Ordinance No. 3011 and that notice of the hearing has been given by
publication in the Fort Worth Star -Telegram, the official newspaper of the City of Fort
Worth, Texas, on November 25, 1991, Mayor Pro tempore Webber asked if there was anyone
present desiring to be heard.
Z-91-102 moved forward Council Member Silcox made a motion, seconded by Council Member Chappell, that Zoning
Docket No. Z-91-102 be moved forward on the agenda to be heard at this time. When the
motion was put to a vote by the Mayor Pro tempore, it prevailed unanimously.
Mayor Granger assumed Mayor Granger assumed the chair at this time.
the chair
Ms. Dominga Guajardo Ms. Dominga Guajardo, 612 Timberline Drive, appeared before the City Council and
re Z-91-102 advised the City Council that residential property should be zoned "B" -Two Family.
Mr. Albert Perez, re Messrs. Albert Perez, 1408 North Commerce, Robert Gutierruz, 2604 Northwest 22nd, and
Robert GutierrAlex Gullegos, 1627 Grand Avenue, appeared before the City Council and requested that the
Alex Gullegos re City Council give favorable consideration to the recommended zoning ordinance text amendment
Z-91-102 by amending Section 17, Non -Conforming Uses, to not require a bufferyard, screen fence, or
supplemental building setback when a structure is unintentionally destroyed; by amending
Section 18D, "Supplemental Bufferyard and Building Requirements", to provide relief from the
requirement when adjacent property is down zoned to residential classification.
r. Alfred Perez re Mr. Alfred Perez, Chairman of Marine Park Neighborhood Association, 1408 North
-91-92 Commerce, appeared before the City Council and requested that the members of Allied
Community of Tarrant in support of the application of Allied Communities of Tarrant to stand
and requested that the City Council give favorable consideration to property bounded by
North Main Street on the west, North Grove street on the east, East 21st Street on the north
land east Northside Drive on the south from "J" Light Industrial and "K" Heavy Industrial to
"B" Two -Family and "PD -SU" Planned Development/Specific Use to allow the following uses:
a meeting/reception hall for social functions, etc., Zoning Docket No. Z-91-092.
s. Mary Zuber re Ms. Mary Zuber, member of Allied Community of Tarrant, appeared before the City
-91-92 Council and requested that the City Council give favorable consideration to the application
of Allied Communities of Tarrant for a change in zoning of property bounded by North Main
Street on the west, North Grove street on the east, East 21st Street on the north and east
Northside Drive on the south from "J" Light Industrial and "K" Heavy Industrial to "B" Two -
Family and "PD -SU" Planned Development/Specific Use to allow the following uses: a
meeting/reception hall for social functions, etc., Zoning Docket No. Z-91-092.
s. Ann Smith re Ms. Ann Smith, representing Marine Park and Allied Community of Tarrant, 6116
-91-92 Ridgeway, appeared before the City Council and requested that the City Council give
favorable consideration to the application of Allied Communities of Tarrant for a change in
zoning of property bounded by North Main Street on the west, North Grove street on the east,
East 21st Street on the north and east Northside Drive on the south from "J" Light
Industrial and. "K" Heavy Industrial i to "B" Two -Family and "PD -SU" Planned
Development/Specific Use to allow the following uses: a meeting/reception hall for social
functions, etc., Zoning Docket No. Z-91-092.
r. Richard Grote re Mr. Richard Grote, Manager
-91-92 appeared before the City Council
oppose the zoning application of
Association.
of Synthetic Products Company, 510 East Central Avenue,
and advised the City Council that he does not choose to
Allied Communities of Tarrant -Marine Park Neighborhood
r. Alex Gallegos re Mr. Alex Gallegos, 1627 Grand Avenue, appeared before the City Council and requested
-91-92 that the City Council give favorable consideration to the application of Allied Communities
of Tarrant for a change in zoning of property bounded by North Main Street on the west,
North Grove street on the east, East 21st Street on the north and east Northside Drive on
the south from "J" Light Industrial and "K" Heavy Industrial to "B" Two -Family and "PD -SU"
Planned Development/Specific Use to allow the following uses: a meeting/reception hall for
social functions, etc., Zoning Docket No. Z-91-092.
r. David Kennedy re Mr. David Kennedy, representing the owner, Delores Cother, 6380 Silver Creek -Azle
-91-96 Road, Azle, Texas, appeared before the City Council and requested that the City Council give
favorable consideration to the application of Allied Communities of Tarrant for a change in
zoning of property located at 3819 McCart Avenue from "B" Two -Family to "F -R" Restricted
Commercial, Zoning Docket No. Z-91-096.
. H. Dennis Hopkins Mr. H. Dennis Hopkins, representing Hillwood Development Corporation, 6850 Manhattan
Z-91-97 Boulevard, appeared before the City Council regarding the change in zoning of property
located in the 15000 Block of Interstate 35 North -from "K" Heavy Industrial to "K" Heavy
Industrial/Sign Subdistrict, Zoning Docket No. Z-91-097, and advised the City Council that
basically the sign is a directional sign and will be under the control of The Perot Group.
uncil Member Meadows Council Member Meadows requested permission of the City Council to abstain from voting
Z-91-099 on Zoning Docket No. Z-91-099 and advised the City Council that his wife represents Fine
Line, Inc.
Minutes of City Council T-3 Page 173
174
Tuesday, December 10, 1991
Council Member Chappell made a motion, seconded by Council Member Woods, that Council
Member Meadows be permitted to abstain from voting on Zoning Docket No. Z-91-099. When the
motion was put to.a vote by the Mayor Pro tempore, it prevailed unanimously.
Mr. Tom Niederauer re Mr. Tom Niederauer, representing Fine Line, Inc., for a change in zoning of property
Z-91-099 located at 501 Houston Street from "H" Business District to "H/HC" Business/Historic
Cultural Subdistrict, Zoning Docket No. Z-91-099, and requested. that City Council give
favorable consideration to the recommended change in zoning and called attention of the
Council to the Dallas Morning News.
Council Member Chappell made a motion, seconded by Council Member Matson, that the
application of Fine Line, Inc., for a change -in zoning of property located at 501 Houston
Street from "H" Business District to "H/HC" Business/Historic Cultural Subdistrict, Zoning
Docket No. Z-91-099, be approved. When the motion was put to a vote by the Mayor Pro
tempore, it prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, and Chappell
NOES: None
ABSENT: Council Member Puente
11 NOT VOTING: Council Member Meadows
There being no one else present desiring to be heard in connection with the
recommended changes in zoning, Council Member Chappell made a motion, seconded by Council
Member Woods, that the balance of the cases recommended for approval be adopted. When the
motion was put to a vote by the Mayor, it prevailed unanimously. The recommended changes
in zoning are as follows: " .
Z-91-094 Z-91-094 JESSE OCA
11 409 & 415 N. Hays Street
From "D" Multi -Family to "I" Light Industrial
Z-91-095II Z-91-095 A. B. ELECTRIC COMPANY by M.A. Nantz
3113 Ramona Drive
"A" One -Family to "I" Light Industrial
Z-91-098 Z-91-098 HILLWOOD DEVELOPMENT CORPORATION by H. Dennis Hopkins
00 Block of Interstate 35 North
From "G" Commercial to "G" Commercial/Sign Subdistrict
Z-91-100 Z-91-100 THE YWCA OF FORT WORTH AND TARRANT COUNTY BUILDING
512 W. Fourth Street
From "J" Light Industrial to "J/HC" Light Industrial/Historic
Cultural
Introduced an Council Member Meadows introduced an ordinance and made a motion that it be adopted.
Ordinance The motion was seconded by Council Member Matson. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, Meadows, and Chappell
NOES: None
ABSENT: Council Member Puente
The ordinance, as adopted, is as follows:
Ordinance No. ORDINANCE NO. 10973
10973 11
AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE
CITY OF FORT WORTH, BEING ORDINANCE NO. 3011, AS AMENDED, CODIFIED
AS APPENDIX "A" OF THE CODE OF THE CITY OF FORT .WORTH, TEXAS
(1986), AS AMENDED, BY REVISING SECTION 17, "NONCONFORMING USE
REGULATIONS", AND SECTION 18,- "MODIFICATIONS TO DISTRICT
REGULATIONS"; PROVIDING FOR AN EXCEPTION TO BUFFERYARD REQUIREMENTS
FOR BUILDINGS DESTROYED BY FIRE, EXPLOSION, OTHER CASUALTIES, ACTS
OF GOD OR PUBLIC ENEMY; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS
CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING FOR
PUBLICATION IN PAMPHLET FORM; PROVIDING A PENALTY; PROVIDING FOR
PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,' TEXAS:
Minutes of City Council T-3 Page 174
115
Tuesday, December 10, 1991
SECTION 4.
Ordinance No.
10973 cont. Any person, firm or corporation who violates, disobeys, omits, neglects
or refuses to comply with or who resists the enforcement of any of the
provisions of this ordinance shall be fined not more than Two Thousand Dollars
($2000.00) for each offense. Each day that a violation is permitted to exist
shall constitute a separate offense.
SECTION 10.
This ordinance shall be in full force and effect from and after its
passage and publication as required by law, and it is so ordained.
Mr. H. Dennis Mr. H. Dennis Hopkins, representing Noro-Casa Blanca Associates, applicant for a
Hopkins re change in zoning of property located at 200 Bailey Avenue from "C" Multi -Family and "E -R"
Z-91-070 Restricted Commercial to "PD -SU" Planned Development Specific Use for offices, Zoning Docket
No. Z-91-070, appeared before the City Council and requested that the application be
referred back to the City Zoning Commission for the regular City Zoning Commission of June
1992, advising Council that this will give the applicant time to work with the surrounding
property owners and determine a compromising settlement.
Introduced
Ordinance
Council Member Meadows made a motion, seconded by Council Member Woods, that the
application of Noro-Casa Blanca Associates for a change in zoning of property located at 200
Bailey Avenue from "C" Multi -Family and "E -R" Restricted Commercial to "PD -SU" Planned
Development Specific Use for offices, Zoning Docket No. Z-91-070, be referred back to the
City Zoning Commission for its June 1992 meeting. When the motion was put to a vote by the
Mayor, it prevailed unanimously.
an Council Member Chappell introduced an ordinance and made a motion that it be adopted.
The motion was seconded by Council Member Woods. The motion, carrying with it the adoption
of said ordinance, prevailed by the following vote:
AYES: Mayor Granger; Mayor Pro tempore Webber; Council Members Silcox,
Matson, McCray, Woods, Meadows, and Chappell
NOES: None
ABSENT: Council Member Puente
The ordinance, as adopted, is as follows:
Ordinance No. ORDINANCE NO. 10974
10974
AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE, -ORDINANCE
NO. 3011, AS AMENDED, SAME BEING AN ORDINANCE REGULATING AND
RESTRICTING THE LOCATION AND USE OF BUILDINGS, STRUCTURES, AND LAND
FOR TRADE, INDUSTRY, RESIDENCE OR OTHER PURPOSES, THE HEIGHT,
NUMBER OF STORIES AND SIZE OF BUILDINGS AND OTHER STRUCTURES, THE
SIZE OF YARDS AND OTHER OPEN SPACES, 'OFF-STREET PARKING AND
LOADING, AND THE DENSITY OF POPULATION, AND FOR SUCH PURPOSES
DIVIDING THE MUNICIPALITY INTO DISTRICTS OF SUCH NUMBER, SHAPE AND
AREA AS MAY BE DEEMED BEST SUITED TO CARRY OUT THESE REGULATIONS
AND SHOWING SUCH DISTRICTS AND THE BOUNDARIES THEREOF UPON
"DISTRICT MAPS"; PROVIDING FOR INTERPRETATION, PURPOSE AND
CONFLICT; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL
ORDINANCES; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY
CLAUSE; PROVIDING A PENAL CLAUSE PROVING FOR ENGROSSMENT AND
ENROLLMENT; PROVIDING FOR PUBLICATION AND NAMING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
SECTION 6.
That any person, firm or corporation who violates, disobeys, omits,
neglects or refuses to comply with or who resists the enforcement of any of the
provisions of this ordinance shall be fined not more than Two Thousand Dollars
($2000.00) for each offense. Each day that a violation is permitted to exist
shall constitute a separate offense.
Mr. H. Dennis Mr. H. Dennis Hopkins, representing George W. Kornye, applicant for a change in zoning
Hopkins re of property located at 1812-1816 Carleton Street from "B" Two -Family and "C" Multi -Family
Z-91-080 to "E -R" Restricted Commercial , Zoning Docket No. Z-91-080, appeared before the City Council
and advised the City Council that the applicant has amended his application to request that
Lot 4 only be rezoned from "B" Two -Family to "C" Multi -Family.
Mr. Thomas Mastin Mr. Thomas Mastin, 1701 Carleton, appeared before the City Council and advised the
re Z-91-080 City Council that the neighborhood has come to an agreement with Mr. Hopkins and Mr. Kornye
regarding the zoning on Carleton Street and requested that City Council give favorable
consideration to the amended change in zoning extending the zoning of Lot 4 to "C" Multi -
Family.
Council Member Meadows made a motion, seconded by Council Member Woods, that the
application of George W. Kornye for a change in zoning of property described as 1812-1816
Carleton Street from "B" Two -Family and "C" Multi -Family to "E -R" Restricted Commercial,
Minutes of City Council T-3 Page 175
1%
Z-91-080 cont.
Met in closed or
executive session
Reconvened into
regular session
M&C G-9421 re
Settlement of all
claims with Smith
Shopping Center
Adjourned
Tuesday, December 10, 1991
Zoning Docket No. Z-91-080, be adopted, as amended, to zone Lot 4 only from "B" Two -Family
to "C" Multi -Family. When the motion was put to a vote by the Mayor, it prevailed
unanimously.
It was the consensus of the City Council that the City Council meet in closed or
executive session to seek the advise of its attorneys concerning contemplated litigation or
other matters which are exempt from public disclosure under Article X, Section 9, State Bar
of Texas Rules, as follows:
1) Claims regarding roof repairs at Will Rogers Coliseum
2) Dale Wayne Jones, Plaintiff, and Leslie Hughes Trucking, Inc., Intervenor, v.
City of Fort Worth and Sandra L. Morin, et al, Cause No. 352-125833-90
3) Smith Shopping Center, et al v. City of Fort Worth, Cause No. 153-116466-88
4) B.R. Management et al v. City of Fort Worth, Cause No. 48-124864-89
5) Acquisition of the operating and dispatching rights on the RAILTRAN Corridor
6) Proposed interlocal. agreement between RAILTRAN,. Fort Worth Transportation
Authority, and Dallas Area Rapid Transit
as authorized by Section 2(e), Article 6252-17, V.A.C.S., the Texas Open Meeting Act.
The City Council reconvened into regular session, with eight members present and
Council Member Puente absent.
There was presented Mayor and Council Communication No. G-9421 from the City Manager
stating that Smith Shopping Center instituted its case in response to paving assessments
levied for the improvements to U.S. Highway 80 West, Cause No. 153-116466-88; that Smith
alleged that the action of the City Council in.levying the paving assessments in this case
was arbitrary and capricious because the improvements did not confer benefit on their
property equal to the amount of the assessments; that the assessment levied for Smith
Shopping Center was $15,075.00; that, after a tortuous litigation path, the court of appeals
rendered a decision unfavorable to the City; that the Supreme Court of Texas refused to hear
an appeal; that, although the decision was on a procedural point and not the merits of
whether the City Council's action was arbitrary or capricious, it requires that the case be
sent back to the trial court for a trial on the merits of Smith's contention; that the terms
of the settlement are 1) Smith will dismiss its case with prejudice; 2) the assessment will
be released; 3) the City will pay $5,000.00 as part of Smith's attorneys' fees; and 4) each
party will pay its respective cost of the litigation; that, while not admitting that the
assessment is void, but to avoid further and costly litigation, the Department of Law and
the Transportation and Public Works Department recommend accepting the proposed settlement
of the case on those terms; stating that the Director of Fiscal Services certifies that
funds required to make up the shortfall caused by the reduction of the paving assessments
and for the payment of the City's court cost are available in the current capital budget,
as appropriated, of the Street Improvement Bond Fund;"and recommending that the City Council
approve settlement of all claims arising from this case and authorize payment of $5,000.00
to the attorney, Warren W. Shipmen, III. On motion of Council Member Chappell, seconded by
Council Member Woods, the recommendations were adopted.
There being no further business, the meeting was adjourned.
ACTINACTINYCITY SECRETARY
Minutes of City Council T-3 Page 176
MAYOR