HomeMy WebLinkAboutOrdinance 6766 io
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF CITY OF
FORT WORTH INTEREST BEARING CERTIFICATES
OF OBLIGATION
THE STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WHEREAS, the City Council of the City of Fort Worth,
Texas, has heretofore determined that it is to the best interest
of the City to improve and extend Fort Worth Municipal Airport
(Meacham Field) and to let a contract for such purpose in
accordance with Article 2368a,1, V.A.T.S, ; and
WHEREAS, it is considered to be in the best interest
of the City that interest bearing Certificates of Obligation
of the denomination of $5,000 each be issued for such purpose;
and
WHEREAS, the amounts of money for which the City will
be indebted to the contractor for said purpose will be in
varying amounts and in some instances the amounts will not be
in multiples of $5,000, and claims evidencing undivided interest
in said Certificates of Obligation should be delivered to such
contractor; and
WHEREAS, said claims, to the extent issued, should be
assembled and held until the interest bearing Certificates of
Obligation of even denominations can be substituted by the City
therefor with proper provisions for adjusting the credit balance ]
occasioned by odd amounts of the claims and the even denomination
of the Certificates of Obligation; j
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
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FORT WORTH, TEXAS:
1, That Certificates of Obligation of the City of
Fort Worth, Texas, to be called "CITY OF FORT WORTH CERTIFICATES
OF OBLIGATION, SERIES 1973," be issued under and by virtue of
Ithe Constitution and laws of the State of Texas, in the amount
of $2,310,000, for the purpose of improving and extending Fort
Worth Municipal Airport (Meacham Field) , including the acquisitio
, of necessary land therefor, and for the purpose of paying all or
a part of the engineering and legal fees in connection therewith.
2. That said Certificates of Obligation shall be
numbered consecutively from 1 through 462, shall be in the
denomination of $5,000 each, and shall become due and payable
on February 1 of each of the years as follows:
YEARS AMOUNTS YEARS AMOUNTS
1977 $210,000 1983 $210,000
1978 210,000 1984 210,000
1979 210,000 1985 210,000
1980 210,000 1986 210,000
1981 210,000 1987 2101000
1982 210,000
3, That said Certificates of Obligation shall be
dated February 1, 1973, and shall be optional for redemption
prior to maturity at any time in the manner stated in each
Certificate,
4, That said Certificates of Obligation shall bear
interest from their date to their respective maturities, or to
their respective dates of redemption prior to maturity, at the
rate of 42% per annum. Provided, the bank which accepts assign-
ment of said Certificates from the bearer shall pay the bearer
the par value of said Certificates and shall pay to the City
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accrued interest from the date of said Certificates to the date
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of delivery of each Certificate, As to Certificates which
are assigned by the bearer after an interest payment date has
passed, accrued interest from the said past interest payment
date to the delivery date shall be paid to the City. Prior
to delivery of said Certificates to a claimant, any
matured interest coupons shall be detached and cancelled by
the City.
5. That the principal of and interest on said
Certificates of Obligation shall be payable in lawful money of
the United States of America on February 1, 1974, and annually
thereafter on each February 1, while said Certificates are
outstanding, upon presentation and surrender of Certificate
of Obligation or proper interest coupon, at The Fort Worth
National Bank, Fort Worth, Texas, without exchange or collection
charges to the owner or holder thereof.
6. That each of said Certificates of Obligation shall
be signed by the Mayor and the City Secretary by their facsimile
signatures, and countersigned manually by the Director of Finance ;
of the City, and approved as to form and legality by the City
Attorney, to be evidenced by his facsimile signature. The seal
of said City shall be impressed, or placed in facsimile, upon
each Certificate herein authorized.
7. That the facsimile signatures of the Mayor and
the City Secretary may be lithographed or printed on the interest:
coupons attached to said Certificates of Obligation, and said
printed or lithographed signatures shall have the same effect as
if they had been executed manually by said officers.
8. That the form of said Certificates of Obligation
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shall be substantially as follows, to-wit:
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(FORM OF CERTIFICATE OF OBLIGATION)
NO, $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
CERTIFICATE OF OBLIGATION
SERIES 1973
On February 1, 19 , the City of Fort Worth, in the
County of Tarrant, State of Texas, promises to pay to bearer
the principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from the date hereof, at the rate
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of 0,% per annum, evidenced by interest coupons payable on
February 1, 1974, and annually thereafter on each February 1
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while this Certificate of Obligation is outstanding. The
principal of this Certificate of Obligation and the interest
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coupons appertaining hereto shall be payable to bearer, in
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lawful money of the United States of America, without exchange
or collection charges to the bearer, upon presentation and
surrender of this Certificate of Obligation or proper interest
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coupon, at The Fort Worth National Bank, Fort Worth, Texas,
which place shall be the Paying Agent for this Series of
Certificates of Obligation,
This Certificate of Obligation is one of a Series of
Certificates of Obligation dated February 1, 1973, issued in
the principal amount of $2,310,000, for the purpose of improving
and extending Fort Worth Municipal Airport (Meacham Field) ,
including the acquisition of necessary land therefor, and for
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the purpose of paying all or a part of the engineering and legal
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fees in connection therewith,
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This Certificate of Obligation may be redeemed prior
to its scheduled maturity, at the option of said City, at any
time, for the principal amount thereof plus accrued interest
thereon to the date fixed for redemption. At least ten days
prior to the date fixed for any such redemption, the City shall
cause a written notice of such redemption to be delivered to the
Paying Agent specifying the date of redemption and the numbers
of such Certificates of Obligation being redeemed. By the date
fixed for any such redemption, due provision shall be made with
the Paying Agent for the payment of the principal amount of the
Certificates of Obligation to be so redeemed, plus accrued
interest thereon to the date fixed for redemption. If the
written notice of redemption is given, and if due provision for
such payment is made, all as provided above, the Certificates of
Obligation which are to be so redeemed thereby automatically
shall be redeemed prior to maturity, and they shall not bear
interest after the date fixed for redemption, and shall not be
regarded as being outstanding except for the purpose of receiving
the funds so provided for such payment,
It is hereby certified, recited and covenanted that
this Certificate of Obligation has been duly and validly issued
and delivered; that all acts, conditions and things required or
proper to be performed, exist and be done precedent to or in
the issuance and delivery of this Certificate of Obligation have
been performed, existed and been done in accordance with law;
and that the City has received full value for this Certificate
of Obligation; that this Certificate of Obligation is a general
obligation of said City, issued on the full faith and credit
thereof; and that annual ad valorem taxes sufficient to provide
for the payment of the interest on and principal of this
Certificate of Obligation, as such interest comes due and such
principal matures, have been levied and ordered to be levied
against all taxable property in said City, and have been pledged
irrevocably for such payment, within the limit prescribed by law.
In Witness Whereof, this Certificate of Obligation
has been signed by the Mayor and the City Secretary of said City
by their facsimile signatures and countersigned manually by the
Director of Finance of said City, and approved as to form and
legality by the City Attorney, evidenced by his facsimile
signature, and the official seal of said City has been duly
impressed, or placed in facsimile, on this Certificate of Obli-
gation, and the interest coupons appertaining hereto have been
signed with the facsimile signatures of the Mayor and the City
Secretary of said City.
City Secretary, City of Fort Mayor, City of Fort Worth, Texas
Worth, Texas
COUNTERSIGNED: APPROVED AS TO FORM AND LEGALITY
Director of Finance, City of City Attorney, City of Fort
Fort Worth, Texas Worth, Texas
9. That the form of coupon shall be substantially as
follows:
(FORM OF INTEREST COUPON)
NO. $—
On February 1, 19_, the City of Fort Worth, in the
County of Tarrant, State of Texas, promises to pay to the bearer,
unless due provision has been made for the redemption prior to
maturity of the Certificate of Obligation to which this interest
coupon appertains, the amount shown on this interest coupon, in
lawful money of the United States of America, without exchange
or collection charges to the bearer, upon presentation and
surrender of this interest coupon, at The Fort Worth National Bank,
Fort Worth, Texas, said amount being interest due that day on the
Certificate of Obligation, bearing the number hereinafter desig-
nated, of that issue of `City of Fort Worth Certificates of
Obligation, Series 1973," dated February 1, 1973. Certificate
No,
City Secretary, City of Fort Mayor, City of Fort Worth,
Worth, Texas Texas
10. That said Certificates of Obligation, in the
. authorized amount of $2,310,000, shall be printed. The
Certificates of Obligation shall be placed in the custody of
the Director of Finance and shall be delivered in installments,
as and when and in the amounts necessary from time to time, to
contractors, engineers and attorneys furnishing services,
persons furnishing land, or to assignees of such contractors,-
engineers, attorneys and persons. Under no circumstances shall
any of said Certificates of Obligation be delivered by the City
except for the purposes for which they are authorized. A
finding by the City Council that a specific item of indebtedness
was incurred for a purpose for which said Certificates of
Obligation are authorized shall be conclusive when contained
in an Ordinance or Resolution passed or adopted by the City
Council,
11. After claims and estimates shall have been
approved by the City Council for any purpose for which said
Certificates of Obligation are authorized, the Director of
Finance shall deliver to each claimant an amount of Certificates
of Obligation not exceeding the amount of the claim, and, for any
amount not covered by such delivery of Certificates of Obliga-
tion, a claim in substantially the following form may be
delivered, to-wit:
CLAIM NO. $
This is to certify that the City Council of the
City of Fort Worth, Texas, at a meeting held on
audited, approved and allowed a claim in favor of
for
furnished in improving and extending Fort Worth Municipal Airport
II (Meacham Field) , for which the City has authorized the issuance
of "City of Fort Worth Certificates of Obligation, Series 1973,"
dated February 1, 1973; that the amount of said claim which is
in excess of Certificates of Obligation delivered therefor, is
$ , and that said claimant owns that amount of an
undivided interest in said Certificates of Obligation not
heretofore delivered.
ISSUED 19_
Mayor, City of Fort Worth, Texas
City Secretary, City of Fort Worth,
Texas
Director of Finance, City of Fort
Worth, Texas
12. As and when said claims shall have been accumu-
lated from time to time in amounts not less than $5,000, and
when requested by the holder of said claims, the City Council
will pass an Ordinance describing said claims and authorizing
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the delivery of said interest bearing Certificates of Obligation
to be delivered in exchange for said claims. Credit balances
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may be carried in favor of said holder for succeeding install-
ment deliveries. On the occasion of the final installment
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delivery the City shall make cash adjustment with the holder
out of funds available therefor.
13. On the occasion of each exchange of claims for
Certificates of Obligation, both the City and the holder shall
execute receipts, each in favor of the other, to show the sur-
render to the City and the receipt thereof of said claims, and
the delivery by the City and receipt thereof of said Certificates ,
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of Obligation.
14. That a special fund or account, to be designated.
the "City of Fort Worth Certificates of Obligation, Series 1973,
Interest and Sinking Fund," is hereby created and shall be
established and maintained by said City at the official deposi-
tory bank of said City. Said Interest and Sinking Fund shall
The kept separate and apart from all other funds and accounts of
said City, and shall be used only for paying the interest on
and principal of said Certificates of Obligation, All ad
valorem taxes levied and collected for and on account of said
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Certificates of Obligation shall be deposited, as collected, to
the credit of said Interest and Sinking Fund. During each year
while any of said Certificates of Obligation or interest coupons
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appertaining thereto are outstanding and unpaid, the City Council
of said City shall compute and ascertain a rate and amount of
ad valorem tax which will be sufficient to raise and produce
the money required to pay the interest on said Certificates of
Obligation as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the principal of such
Certificates of Obligation as such principal matures (but never
less than 2% of the original amount of said Certificates of
Obligation as a sinking fund each year) ; and said tax shall be
based on the latest approved tax rolls of said City, with full
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allowance being made for tax delinquencies and the cost of tax
collection. Said rate and amount of ad valorem tax is hereby
levied, and is hereby ordered to be levied, against all taxable
property in said City, for each year while any of said Certifi-
cates of Obligation or interest coupons appertaining thereto
are outstanding and unpaid; and said tax shall be assessed and
collected each such year and deposited to the credit of the
aforesaid Interest and Sinking Fund, Said ad valorem taxes
sufficient to provide for the payment of the interest on and
principal of said Certificates of Obligation, as such interest
comes due and such principal matures, are hereby pledged ir-
revocably for such payment, within the limited prescribed by law.
15. The assignees of said claims and the holders of
said Certificates of Obligation are hereby subrogated to all
rights which the persons to whom the original Certificates of
Obligation and claims were issued had against the City of Fort
Worth, Texas, and the assignment or sale of said Certificates of
Obligation and claims shall, without specific mention thereof,
include all such rights,
16. The fact that the City of Fort Worth urgently
needs to finance improvements and extensions to the Fort Worth
Municipal Airport (Meacham Field) and to defray all expenses
incidental thereto creates an emergency and an urgent public
necessity for the immediate preservation of the public health,
peace and safety, requiring that this ordinance shall take effect
and be in force immediately upon and after its passage, and it is
accordingly so ordained,
17. It is hereby officially found and determined that
the meeting at which this ordinance was passed was open to the
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public, and public notice of the time, place and purpose of
said meeting was given, all as required by Vernon's Ann. Civ.
St. Article 6252-17.
PASSED AND APPROVED this llth da of December, 1972.
Mayor
ATTEST-
City Secretary
APPROVED AS TO FORM AND LEGALITS�
City Attorney
City of Fort Worth, Texas
°°s" Mayor and Council Communication
n414MAM
It.&B. DATE REFERENCE SUBJECT: Adoption of Ordinance Authoriz- PAGE
NUMBER ing Award of Contract - Taxiway and Iof 4
WARREN 12711/72 C-2401 Runway Improvements for Meacham Field
and Adoption of Ordinance Authorizing
Issuance of $2,310,000 in Certificates
of Obligation
Project History
Fort Worth's economic history closely parallels the adequacy of its trans-
portation facilities. Its early development was rooted in the rail system,
which was a major factor in the City's growth and prosperity for decades.
With the decline of the railroads and the advent of airlines and highways as
prime transportation media, the City maintained its position for a time, pro-
viding modern long-distance passenger facilities at Meacham Field throughout
the DC-3 era. As air-transport outgrew the DC-3, however, this means of
mass transportation outgrew Meacham Field and had to be relocated. Greater
Southwest International Airport was developed for this purpose. However,
with the consolidation by the airline industry of passenger and air freight
service for Fort Worth and Dallas into Love Field, economic development of
Fort Worth has been severely restricted for more than fifteen years. Comple-
tion of the Regional Airport in 1973 will again bring air transportation and
shipping back to a location adequately serving Fort Worth. Meanwhile, how-
ever, general aviation jet and twin-engine usage has evolved into an important
means of transportation for the key personnel of most of the nation's largest
businesses, and close-in facilities for all types of general aviation aircraft
are essential to a city's continued prosperity. Unless such facilities are
available for Fort Worth as they will be for Dallas with the anticipated
conversion of Love Field into a general aviation airport, Fort Worth cannot
realize the full economic development potential from its investment in the
Regional Airport.
Recognizing this condition, the voters of Fort Worth approved an airports
improvement bond issue in 1965 to initiate land acquisition for the Regional
Airport and for runway extension at Meacham Field to accommodate large general
aviation aircraft. Subsequent studies dictated a more costly runway expansion
plan, part of which has now been completed. The completion of the proposed
runway expansion at Meacham Field will accomplish that purpose and restore
Fort Worth to the favorable transportation position on which its prosperity
has been historically based.
On Fdbruary 22, 1967, the City Council hired consulting engineers to prepare
plans and specifications for the relocation of a railroad spur, the acquisi-
tion of land, site preparation and construction of a new runway at Meacham
Field. The work was scheduled in four phases, three of which (the railroad
relocation, land acquisition and site preparation) have been completed. The
fourth phase, construction of the runway, was to have been financed through`
the sale of bonds which were submitted for approval in the bond election of
September, 1970. The bonds were not approved, and the project has since been
dormant, pending arrangements for financing that would not require tax
supported debt as pr9poped in the 1970 bond election. Approximately
DATE REFERENCE SUBJECT: Adoption of Ordinance Authoriz- PAGE
NUMBER ing Award of Contract - Taxiway and 4
2 of
12/11/72 C-2401 Runway Improvements for Meacham Field
and Adoption of Ordinance Authorizing
Issuance of $2,310,000 in Certificates
of Obligation
$2,318,000 has been spent on the first three phases of the project to date,
50 per cent of which was City funds and 50 per cent matching Federal funds.
The grant agreement for the three"phases mentioned above (railroad relocation,
land acquisition, and site preparation) will require a refund of all payments
(approximately $1,209,000) made to the City by the FAA for this project if a
usable North-South Runway is not completed within five years of the date of
the grant agreement, which was executed on September 29, 1969.
Phase Four Airfield Improvements
On November 8, 1971, the City Manager was authorized to execute contract
No. 6991 with Carter and Burgess, Inc. , Engineers and Planners, for the
design and preparation of plans for the improvements of Meacham Field, Fort
Worth Municipal Airport.
Scope of Work
The improvements consist of the construction of a new 150-foot by 7,500-foot
North-South Runway, the reconstruction of a portion of the East-West Runway,
a new parallel 50-foot by 2,800-foot North-South Runway, all with related
taxiway and other miscellaneous improvements.
A grant application for the Meacham Field improvements has been prepared and
submitted to the Federal Aviation Administration for approval under FAA
Project No. 7-48--0085-01.
Submission of Bids
Alternate Bid Alternate Bid
No. 1 - Cement No. 2 - Asphalt
Bidder Treated Base Stabilized Base
H. B. Zachry Company, San Antonio $4,293,239.49 No Bid
Dahlstrom Corporation, Dallas 4,511,538.49 No Bid
Austin Road Company 5,076,229.68 No Bid
Texas Bitulithic Company and Brown and
Blakney, Inc. , a Joint Venture No Bid $4,560,036.75
Date Bids Received: November 30, 1972
Time Allotted: 370 Working Days
One additional pre-qualified bidder took plans and specifications but did not
submit a proposal.
DAT! REFERENCE SUBJECT: Adoption of Ordinance Authoriz- PAGE
NUMBER
12/11/72 C-2 ing Award of Contract - Taxiway and 3 ar 4
Runwa Im rovements for Meacham Field
and Adoption of Ordinance Authorizing
Issuance of $2,310,000 in Certificates
of Obligation
Project Cost and Financing
The total project cost includes the construction contract, land acquisition,
engineering costs, utility adjustments, work to be done by FAA forces for
adjustments to FAA facilities and adjustments to U. S. Weather Bureau facilities.
The Federal Aviation Agency will share approximately 50 per cent of the cost.
A breakdown of the cost is as follows:
Total Estimated Project Cost $5,469,555
Estimated Federal Aviation Agency Share 2,734,778
Estimated City Share 2,734-1078
Funds Available from Proceeds of Land Sale at GSIA $ 441,000
(initial payment on selling price of
$1,762,500)
Balance of Funds Needed to Finance City's Share $2,293,778
It is proposed that the balance of the City's share in the amount of $2,291"$778
be financed by means of certificates of obligation. While this debt requires
the pledge of ad valorem tax revenue, it is anticipated that no tax fundb�,.
will be required for this project. The recent sale of a portion of GSIA am
the anticipated disposal of the balance of this aviation facility after its
abandonment as an airport will be more than sufficient to offset the cost
of this project.
The financing of the City's portion of the cost of this runway extension, by
the issuance of $2,310,000 in certificates of obligation, contemplates a
maturity schedule of $210,000 per year for eleven years beginning in February
1977, with interest at the rate of 4.50 per cent on the outstanding certificates
from the date of their issuance. Interest payments only will be due during
the first four years. This maturity schedule coincides with the beginning of
payments by James H. Redman on the outstanding principal of the note executed
for the land purchased at GSIA. This note provides for interest at the rate
of 7.25 per cent on the outstanding balance, with seven principal payments
of $189,015 each beginning in October 1976.
Assuming the sale of additional GSIA land by 1976, three years after opening
of the Regional Airport, no funds derived from taxes will be required for
this project. City interest payments compared to receipts from the initial
land sale through 1976 are as follows:
1973-74 1974-75 1975-76 Total
City Interest Payments $54,000 $103,950 $103,950 $261,900
Interest Received from Land
Sale 95,925 95,925 95,925 287,775
Surplus 41,925 - 8,025 - 8,025 25,875
Cumulative Surplus 41,925 33,900 25,875
DATE f REFERENCE SUBJECT: Adoption'of Ordinance Authoriz- PAGE
NUMBER ing Award of Contract - Taxiway and
12/11/72 C-2401 Runway Improvements for Meacham Field 4 of
4
and Adoption of Ordinance Authorizing
Issuance of $2,310,000 in Certificates
of Obligation
Recommendations
It is recommended that:
1) An ordinance be adopted authorizing the award of a construc-
tion contract for airport improvements as described above for
the Fort Worth Municipal Airport, Meacham Field, to H. B.
Zachry Company based on its low bid of $4,293,239.49, subject
to the approval by the Federal Aviation Administration;
2) An ordinance be adopted authorizing the issuance of certificates
of obligation in the amount of $2,310,000;
3) Funds in the amount of $441,000 derived from the initial payment
on the sale of land at GSIA and deposited in Account No. 105-
43000-106 be reserved to apply as part of the City's share of
this project.
SUBMITTED BY: DISPOSITIO Y COUNCIL: PROCESSED BY
APPROVED ❑ OTHER (DESCRIBE)
:,'opted Ordinance No. 6765 Awarding Contract 'GO CITY SECRETARY
H. B. Zachry Co. and Ordinance No. 6766 DATE
CITY MANAGER /��/
Authorizing Issuance of Certificates of Ubliga ion