HomeMy WebLinkAboutOrdinance 6610 ORDINANCE NO. 4441
ORD.M.MXE AUTHORIZING Z, WASTE DISPOSAL CON-
TRACT WI`I'I: T12INIETY RIVZR AUTIIC'RITY 0;' TEXAS
A%:D A'P^C)tr7: G A Liilir"T' OF 301': 1D'SOLU210:i
OF SAID AUTHORITY P IIPSLi,_';'1 TO S 1ID CON,7RACT
THE STATE OF TEXAS
COUNTY OF TK RI�NT
CITY OF FORT WORTH
WHEREAS, it is necessary and advisable that the City o-
Fort Worth enter_ into the Contract hereinafter authorized.
TM?REFORE, BE IT ORDAINED BY TILE CITY
COUNCIL OF THE CITY OI' FORT WORTH:
Section 1. That the City Man�>.g: r and the City Secretary are
authorized and directed, for and on behalf of the City, to date,
sign, seal, and othenAse. excc:ute a Cont.cact in substantially
the form and substance set fortis in "Exhibit A", which is attach-
ed hereto and made a part her of; and the City Attorney is re-
quested to approve said Contract as to form and legality.
Section 2. That upon execution said Contract shall be bind-
ing upon the City for all purposes.
Section 3. That a substantial draft of the Bond Rcaoluticn
authorizing the issuance of the Bonds described in said Contract
has been submitted to the City, and a copy thereof is attached
hereto, marred "Exhibi',. B" , and made a part hereof. Said draft
is hereby approved, and said Pon(3s ,i,uy bc> issued pursuant thc re•-
to, and it is hereby acknowl aged that all provisions of said
draft are in compliance with said Contrt,,crc.
Section 4. That. this Ordinance is herebv finally passed,
and shall take effect from and after its passage.
"EXHIBIT A"
a
TRINITY RIVER AUTHORITY OF TEXAS - CITY OF FORT WORTH
WASTE DISPOSAL CONTRACT
TILE STATE OF TEXAS ,
KNOW ALL MEN BY THESE PRESENTS:
WATER POLLUTION CONTROL COMPACT :
WHEREAS, the Trinity River Authority of Texas (hereinafter
sometimes called the "Authority") is a conservation and recla-
mation district created by Vernon's Article 8280-188 , pursuant
to Article 16, Section 59 of the Texas Constitution; and
WHEREAS, the Authority is an agency of the State of
Texas operating on a multiple county and regional basis; and
WHEREAS, the Authority is a Signatory to the State of
Texas Water Pollution Control Compact (hereinafter sometimes
called the. "Compact") , dated and effective as of March 26, 1971,
which :is on file in the official records of the Texas Water
Qiziality Board, and which was approved by Order of said Board
duly entered on March 26, 1971, and to which Compact reference
is hereby made for all purposes; and
WHEREAS, the City of Fort Worth (hereinafter sometimes
called :he "City") is a city duly organized and existing pursuant
to the constitution and laws of the State of Texas; and
WHEREAS, the Authority and the City jointly desire to
acquire, construct, and establish in the vicinity of the City a
disposal system consisting of facilities for disposing of sewage
and other waste, including treatment facilities, as such terms are
defined in Chapter 25 of the Texas Water Code (formerly Vernon's
Article 7621g) , hereinafter sometimes called the "Project"; and
WHEREAS, the City has filed an application for a
Federal grant for the Project with the Texas Water Quality Board
and the Environmental Protection Agency of the United States of
America, and the Project has been given the designation as
WPC-TEX-750 in the records of tlLa Texas Water Quality Board and
the Env.ironrn^ntal Protection Agency, to which application and
records reference is hereby made for a complete description of
the Project; and
W11EREAS, the City expects to receive a grant from the
Environmental Protection Agency of the United States of America
to aid in constructing the Project; and
WHEREAS, the Texas Water Quality Board has granted and
given the necessary permit in connection with the Project; and
WHEREAS, the City and the Authority are authorized to
make and enter into this Contract under Chapter 25 of the, Texas
Water Code (formerly Vernon's Article 7621g) , and Section 21.095
of the Texas Water Code; and
WHEREAS, the parties hereto recognize and agree to these
facts:
(a) that this Contract is being executed pursuant
to and in compliance with the Compact; and
(b) that the Authority is preparing to issue, sell,
and deliver its Bonds for the purpose of ac-
quiring and constructing its part of the
actual costs of the entire Project; and
(c) that the Authority will pledge the City's
payments to the Authority under this Contract
to the payment of principal of and the inter-
est on its Bonds issued in connection with the
Project, and for the maintenance of a debt ser-
vice reserve fund for said Bonds, if and to the
extent required.
IT IS THEREFORE CONTRACTED AND AGREED BETWEEN
THE. AUTHORITY AND THE CITY AS FOLLOWS:
Section 1. DEFINITIONS. The terms and expressions
used in this Contract, unless the context shows clearly other-
wise, shall have itea.nings as follows:
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(a) "Project-." means the Pro-Ject as defined in
the preamble to this Contract.
(b) "Board" and "Board of means the
Board of DirecLors- of the Authority.
(c) "Bond Resolution" means any resolution of
the Board of Directors authorizing the issu--
ance of Bonds and providing for Lheir secur-
ity and payment, as such resolution(s) may
be amended from time to time a.s therein
permitted.
(d) "Bonds" means any bonds to be issued by the
Authority for the acquisition, construction,
or completion of the Project, whether in one
or more series or issues, or any bonds issued
to refund same.
Section 2. OBLIGATION OF AUTHORITY TO CONSTRUCT. The
Authority agrees to pay, and will pay, as a Signatory to the
Compact, for and on behalf of the State of Texas, 250 of all of
the actual costs of acquiring and constructing the entire Project,
through the issuance of its Bonds pursuant to ChapL-.er 25 of the
Texas Water Code (formerly Vernon's Article 7621g) , and section
21.095 of the Texas Water Code, to provide the money for such
payment.
Section 3. OBLIGATION OF CITY TO CONSTRUCT. The City
agrees to pay, and will pay, 750 of all of the actual costs of
acquiring and constructing the entire Project, from the money re-
ceived by the City from the Federal grant for the Project, and
from other sources available to the City.
Section 4. AUTHORITYS BOND RESOLUTION. The Authority's
Bond Resolution will provide that the proceeds from the sale of
its Bonds will be used for the payment of all of the Authority's
expenses and costs in connection with the Bonds and the Project,
including, without limitation, all financing, legal, printing, and
other expenses and costs incurred in issuing its Bonds, plus an
administrative and overhead charge to be retained by the Authority
equal to 206 of such expenses and costs incurred in issuing its
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Bonds, and all engineering, legal, construction, and other ex-
penses and costs incurred by the Authority in acquiring and con-
structing the Project, including all out-of-pocket expenses of
the Authority's employees directly attributable and chargeable to
the Project and the proportionate part of any Authority employees'
salaries attributable and chargeable to the acquisition and con-
struction of the Project, plus an administrative and overhead
charge to be retained by the Authority equal to 100% of such out-
of-pocket expenses of the Authority's employees and proportionate
part of Authority employees' salaries. Such Bonds will be issued
in a mutually agreeable amount sufficient to cover the estimated
amount of all the aforesaid expenses, costs, and charges, and may
also provide for depositing into a debt service reserve fund
for such Bonds an amount approximately equal to the average annual
principal and interest requirements on such Bonds, and may pro-
vide for creating other funds, and for capitalizing interest
during construction of the Project. A substantial draft of each
Bond Resolution of the Authority, showing the principal amount,
maturities, any debt service reserve fund, and other pertinent
features, excepting the name of the purchaser and the interest
rates, must be delivered to and be approved by the City prior
to the delivery to the purchaser of any Bonds authorized by such;
Bond Resolution; and the approval of such draft by the City will
constitute agreement by the City that all provisions of the Bond
Resolution are in compliance with this Contract in all. respects.
Section 5. CONSULTING ENGINEERS. The Authority and the
City agree that J. L. Robinson, a registered professional engineer,
of Fort Worth, Texas, is designated as and shall constitute the
"Consulting Engineers" for the Project; that the Project will be
acquired and constructed in accordance with the "Engineer-
ing Report" covering the Project prepared under the direction
of the 'Consulting Engineers and on file with the Environmental
Protection Agency, and in accordance with plans and specifications
prepared under the supervision of the Consulting Engineers. It is
further agreed that the Consulting Engineers may be changed, but
only with the written consent of both the Authority and the City.
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Section G. C0NSTRUCTIU COt�T!i ACTS. For the convenicn,�e
of the Authority and the City, the city wi_ 1 enter into such con-
tracts as are necessary to provide for acgui.rind and constructing
the entire Project, and said contracts shall be advertised for
and executed as required by the laws applicable to the City, and
also as required by the City's Grant Offer from the Environmental
Protection Agency. The Authority shall deposit from the proceeds
from the sale of its Bonds into a special Construction Fund, at.
the City's depository bank, to the credit of the City, an amount
of money which shall be specified in the Authority's Bond Resolu-
tion. The City shall draw on and use said Construction Fund to
pay the costs of acquiring and constructing the Authority's part
of the Project; provided that the City agrees that each expendi-
ture from the Construction Fund must be approved by the Consult-
ing Engineers prior_ to the making of such expenditure. Any amounts
remaining in the Construction Fund after completion of the Project
shall be deposited in the Interest and Sinking Fund established
pursuant to the Authority's Bond Resolution, and thus reduce to
that extent the, payments required to be made J_,y the City under this
Contract.
Section 7. PAYMENTS BY CITY. (a) That the Authority
will provide and make available to the City, for the treatment
and disposal of waste for the City, the waste treatment and waste
disposal system, facilities, and services of the part of the Pro-
ject acquired, constructed, and paid for by the Authority. It is
agreed that the City shall, have the exclusive use of the entire
Project throughout its useful life. In consideration for the
Authority's malting it possible, as a Si.gn<�tory to the Compact,for_
the City to receive an increase in the Federal grant for construct-
ing the Project, and in consideration for the Authority's acquiring,
constructing, providing, and malting available to the City the wastc
treatment and waste disposal system, facilities, and services of the
Authority's part of. the: Project, for the treat:n:ent and disposal
of the City's waste, the City agrees to maize the payments herein-
after specified. As further consideration, it is agreed that the
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City will have the sole responsibility for opere,.ting and maintain-
ing the entire Project throughout its useful life, and that the
City will operate and maintain the entire Project throughout its
useful life; and the City agrees to -i_ndcnuAf-y and to save and hold.
harmless the Authority from any and all claims, damages, loses,
costs, and expenses, including reasonable attorneys fees, aris-
ing at any time from the acqui_si_tion, construction, existence,
ownership, operation and/or maintenance of the entire Project.
It is further agreed that the City's obligation to make any and
all payments under Section 7 (h) and (c) of this Contract will
terminate when all of the Authority's Bonds issued in connection
with the Project, or. any Bonds issued to refund same, have been
paid and retired and are no longer outstanding; and it is agreed
that the cessation of such payments or charges is and will be a
reasonable arrangement after such Bonds have been retired, because
there will be no expense or cost to the Authority in connection
with the Project and. the Bonds after such Bonds have been retired.
It is further understood and agreed that the Authority's only
source of funds to pay the principal of ani interest on its Bonds,
to restore the debt service reserve fund for its Bonds, and to pay
its expenses in connection with its Bonds and the Project, is
from the payments to be made by the City to the Authority under
this Contract.
(b) That the City agrees to mare the: following pay-
ments to the Authority while any of the Authority's Bonds issued
in connection with the Project, or any Bonds issued to refund
same, are outstanding:
1. Such amounts, payable semi--annually on or
before the 10th day preceding each interest
payment date on the Authority's Bcnds, as are
necessary to pay (a) the principal and/or in-
terest coming due on the Authority's Bonds on
the next succeeding interest payment date, and
(b) a fixed semi--annual charge of $625.00
to cover and r_ci_r: urse the Aui:hority for its
administrative and overhead expenses directly
attr.ibuLable and chanp able to its Bonds and
the Project.
2. Such amounts at such times as are specified in
the AuLhority's bond Insolucion to fund or re-
store the dehL servi_co res,: we fund or any
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other fund created and established for the bone-
fit of the Authority's Bonds. It is contem-
plated that any surplus investment earnings
from the debt sc,.rvice resorv(2 fund and any
other funds created by the Bond Resolution
will be used to pay the principal of and ijitel_-
est on the Bonds, and thus reduce the amounts
payable. by the City under 1, above.
3. Such amounts, payable upon receipt oF a state-
ment therefor, as are necessary to pay, or
reimburse the Authority for, any extraordinary
or unexpected expenses or costs reasonably and
necessarily incurred by the Authority in connec-
tion with its Bonds and the Project (exclusive of
routine administrative expenses and costs)
such as expenses of litigation, if any, and
costs of special studies, professional ser-
vices, and a.11 accounting reports, if and
when required.
(c) If, in addition to the amount initially issued,
the Authority finds it necessary to issue Bonds for the purpose
of completing the Project to the extent contemplated by the
initial Bonds and the Engineering Report, all of the amounts to
be paid to or retained by the Authority under all Sections of this
Contract shall be .increaser proportionately, and such amounts
shall at all times be sufficient to pay the principal of and
interest on all such Bonds, and to increase the debt service
reserve fund, and other funds, as and if required by the Bond
Resolution authorizing the additional Bonds. It is understood
and agreed that the only source of funds for the Authority to ac-
quire and construct its part of the Project is from the issuance
and sale of its Bonds (including additional Bonds) pursuant to
this Contract.
(d) The City represents and covenants that the use
of the facilities and services to be obtained pursuant to this
Contract are essential and necessary to the operation of the City
and its combined watenjorks, and sanitary sewer system, and that
all payments to be made hereunder by it will constitute reason-
able and necessary "operating expenses" of the City's combined
waterworks and sanitary sewer f>ysLem, within the meaning of
Vernon's Article 111-3, and tl-ie provision.- of all Ordinances au-
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thorizing the issuance of all waterworks and sanitary sewer system
revenue bond issu(�s of the City, with the effect that the City's
obligation to make payments from its waterworks and sanitary
sewer system revenues under this Contract -,hall have priority
over its obligations to make payments of the principal of and
interest on any and all of its waterworks and sanitary sewer
system revenue bonds. The City agrees to fix and collect such
rates and charges for waterworks and sanitary sewer services to
be supplied by its waterworks and sanitary sewer system as will
make possible the prompt payment of all expenses of operating and
maintaining the entire Project and operating and maintaining the
City's entire waterworks and sanitary sewer system, including all
payments, obligations, and indemnities contracted hereunder, and
the prompt payment of the principal of and interest on the City's
bonds payable from the net revenues of its waterworks and sanitary
sewer system. The Authority shall never have the right to demand
payment of the amounts due hereunder from funds raised or to bu
raised from taxation by the City.
(e) The City's payments under this Contract shall b^
made pursuant to the authority granted by Section 25.030 of the
Texas Water Code (formerly Section 6 of Vernon's Article 7621g) ,
as well as Vernon's Article 1113.
(f) Recognizing the fact that the City urgently re-
quires the facilities and services covered by this Contract, and
that such facilities and services arc necessary for actual use
and for stand-by purposes; and further recognizing that the Au-
thority will use the payments received from the City hereunder to
pay, secure, and finance the issuance of the Bonds , it is hereby
agreed that if and when any Bonds are delivered, the City shall
be obligated to make the payments required by this Contract,
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regardless of \,.TheLher or not the Authority actually provides such
facilities and services, or whether or not the City actually re-
ceives or uses such facilities and services , or whether or not
the city actually receives the Federal grant, and the holders of
the Bonds shall be entitled to rely on the foregoing agreement
and representation, regardless of any other agreement between
the Authority and the City.
Section 8. COMPLIANCE WITH GRANT OFFER. The City
agrees that with respect to the entire Project it will fulfill
and comply with all assurances made by the City in the grant offer
received from the Environmental Protection Agency and accepted by
the City; and that with respect to the entire Project the City
will discharge all of its responsibilities and comply with all
of its agreements with the Environmental Protection Agency in
connection with the grant offer and the Federal grant made pur-
suant thereto. The Authority agrees that it will join with and
assist the city in complying with the foregoing commitments to
the Environmental Protection Agency, subject to the provisions
of this Contract.
Section 9. P TEPING. It is understood and agreed
that neither the Authority nor the City shall be under obligation
to furnish, operate, or maintain metering equipment for measur-
ing waste discharged into the Project under this Contract, unless
metering is required by the Environmental Protection Agency.
Section 10. CONSTRUCTION. The Authority and the City
agree to proceed promptly with the joint acquisition and con-
struction of the Project. The Authority and City hereby covenant
that they will make a diligent effort to commence construction
as soon as practicable. The Authority and the City do not an-
ticipate any delays in commencing or completing the Project, but
the Authority and the City shall not be liable to each other for
any damages occasioned by the construction or completion of the
Project, or any delays in completion of the Project.
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Section 11. CONDITIONS PRECEDENT. The obligation on
the part of the Authority to acquire and construct its part of
the Project shall be conditioned upon the folloa:ing:
(a) sale of Bonds in an amount sufficient to
assure the acquisition and construction
of its part of the Project; and
(b) the Authority's and the Cit.y's ability, or
the ability of the contractors, to obtain
all material, labor, and equipment neces-
sary for the acquisition and construction
of the Project.
Section 12. USE OF CITY'S PUBLIC PROPERTY. By these
presents, the City authorizes use by the Authority of any and
all real property, streets, alleys, public ways and places, and
general utility or sever easements of the City for acquiring and
constructing the Project, as provided in this Contract.
Section 1.3. FORCE MAJEURE. If, by reason of Force
Majeure, any party hereto shall be rendered unable wholly or in
part to carry out its obligations under this agreement then such
party shall give notice and full particulars of such Force Majeure
in writing to the other parties within a reasonable time after
occurrence of the event or cause relied upon, and the obligation
of the party giving such notice, so far as it is affected by such
Force Majeure, shall be suspended during ch e continuance of the
inability then claimed, except as hereinafter provided, but for
no longer period, and any such party shall endeavor to remove
or overcome such inability with all reasonable dispatch. The
term Force Majeure as employed herein, shall mean acts of Cod,
strikes, lockouts, or other industrial disturbances, acts of
public enemy, orders of any kind of the Governmont of the United
States or the State of Texas or any civil or military authority,
insurrections, riots, epidemics, landslides, lightning , earth-
quake, fires, hurricanes, storms, floods , washouts, droughts,
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arrests, restraint of gavernment and people, civil disturbances,
explosions, breakage or accidents to machinery, pipelines or
canals,. or other_ causes not reasonably within the control of the
party claiming such i_nanility. It is understood and agreed that
the settlement of :.tr.ikes and lockouts shall be entirely within
the discretion of the party having the difficulty, and that the
above requirement that any Force Majeur_e shall be r_amedied wit:i
all reasonable dispatch shall not require the settlement of
strikes and lockouts by acceding to the demands of the opposing
party or parties when such settlement is unfavorable to it in the
judgment of the party having the difficulty. It is specifically
excepted and provided, however, that in no event shall any Force
Majeure relieve the City of its obligation to make payments to
the Authority as required under Section 7 of this Contract.
Section 14. INSUP,I�NCE. The City agrees to carry fire,
casualty, public liability, and other insurance on the Project
and its entire waterworks and sanitary sewer system for purposes
and in amounts which would ordinarily be carried by a privately
owned utility company owning and operating such facilities, ex-
cept that the City shall not be required to carry liability in-
surance except to insure itself against risk of: loss due to claims
for which it can be liable under the Texas Tort Cla.ir;:s Act or an•
similar law or judicial decision. Such insurance will provide,
to the extent feasible and practicable, for the restoration ol.
damaged or destroyed properties and equipment, to minimize the
interruption of the services of such facilities.
Section 15. REGULATORY BODIES. This Contract and
the Project shall be subject: to all valid rules, regulations,
and laws applicable thereto passed or promulgated by the United
States of America, the State of Texas , or any governmental body
or agency having lataful jurisdiction or any authorized repre-
sentative or agency of any of: them.
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Section 16. TERM OF CONTRACT. That the term of this
Contract shall be for the usefui life Of the Project, subject to
the provisions of Section 17 hereof, and in all events for the
period during which any of the Authority's Project Bonds, and
any Bonds issued to refund same, or any interest coupons apper-
taining thereto, are outstanding and unpaid.
Section 17. CITY'S OPTION TO PURCHASE. The Authority
agrees that it will use its best efforts to sell and deliver all
of its Project Bonds through commercial municipal bond marketing
channels, with such Project Bonds to be subject to redemption
prior to maturity on such date or dates, at the option of the
Authority, as will permit the City to exercise its option to pur-
chase the Authority's part of the Project, as hereinafter pro-
V. .1. The Authority and the City shall cause the Consulting
Engineers to execute a certificate to the effect that the Project
has been completed and placed in operation, after it has been
completed and placed in operation, and all payments under any
construction and other contracts pertaining to the acquisition
of the Project have been paid. At any time within one year after
the Consulting Engineers certify such completion of the Project
the City shall have the option and right to purchase, in one in-
stallment, all of the Authority's right, title, and interost in
and to the Project for a price equal to the total amount requir-
ed to redeem, retire, and cancel all of the Authority's Bonds,
including the par or principal amount thereof, the accrued in-
terest to date of redemption, the redemption premium, if any, the
paying agents charges, and all expenses of Authority in connection
with redeeming such Bonds. The City shall notify the Authority in
writing if it exercises said option, and shall furnish the Authority
with a certified copy of the ordinance or resolution of the govern-
ing body of the City exercising said option; provided, however,
that the date set for the consui,,,Maticjn of the transaction shall- be,
fixed so as to allow the Authority and the City sufficient tim�c
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to perform the acts hereinafter described. Upon receipt of the
foregoing notice in writing the Authority shall fix a date, which
shall be as soon as practicable, for the redemption of its Bonds,
and shall duly call said Bonds for redemption on said date. Prior
to such date the City shall make the necessary redemption price
available to the Authority and the Authority shall deposit the re-
quired funds with the paying agent for such Bonds so that such funds
will be available for immediate use in redeeming the Bonds on said
date. Immediately after said Bonds have been redeemed, the Author-
ity shall duly execute a conveyance, conveying all of its right,
title, and interest in and to the Project to the City, reciting the
dollar amount of the redemption price as the consideration for the
conveyance. After such conveyance, the Authority will have no in-
terest whatsoever in the Project, and this Contract shall terminate
in its entirety, and it shall be of no further force nor effect,
except for any claims arising prior to such termination. If the
City exercises its option to purchase, under this Section, all
amounts in the Interest and Sinking Fund created and established
pursuant to the Authority's Bond Resolution shall be applied to the
redemption of the Authority's Bonds, and thus reduce to that extent
the City's purchase price.
IN WITNESS WHEREOF, the Authority and the City, acting
under authority of their respective governing bodies have caused
this Contract to be duly executed in several counterparts, each of
which shall constitute an original, all as of the 21st day of
January, 1972, which is the date of this Contract.
TRINITY RIVER AUTHORITY OF TEXAS
by
General Manager
ATTEST:
Assistant Secretary, Board of
Directors
(SEAL)
CITY OF FORT WORTH, TEXAS
by
City Manager
ATTEST: APPROVED AS TO FORM AND LEGALTT
.5a,
City Secretary City Attorney
(SEAL) ..13-
"EXHIBIT B"
RESOLUTION AUTHORIZING TILE ISSUANCE OF REVENUE BONDS
THE STATE OF TEXAS
TRINITY RIVER AUTHORITY OF TEXAS:
WHEREAS, a Waste Disposal Contract (hereinafter called tile.
"Contract") has been duly executed between the Authority and
the City of Fort Worth (hereinafter called the "City") ; and
WHEREAS, the date of the Contract is JANUARY 21, 1972; and
WHEREAS, the Contract is hereby referred to and adopted for
all purposes, the same as if it had been set forth in its n-
tirety in this Resolution; and
WHEREAS, the governing body of the City has duly approved
a substantial draft of this Resolution; and
WHEREAS, the bonds (hereinafter called the "Bonds") authoriz-
ed to be issued by this resolution (hereinafter called the "Reso-
lution") are to be issued and delivered pursuant to Vernon's Arti-
cles 8280-726 and 7621g, and/or Chapter 25 of the Texas Water Code.
THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
TRINITY RIVER AUTHORITY OF TEXAS:
Section 1. That said Authority's negotiable Bonds are here-
by authorized in the aggregate principal amount of $250,000
FOR THE PURPOSE OF ACQUIRING AND CONSTRUCTING A DISPOSAL SYSTEi11,
CONSISTING OF FACILITIES FOR DISPOSING OF SEWAGE AND OTHER WASTE,
INCLUDING TREATMENT FACILITIES, TO SERVE THE CITY OF FORT WORTH.
Section 2. That said bonds shall be designated as the:
TRINITY RIVER AUTHORITY OF TEXAS - CITY OF FORT WORTH, WASTE
DISPOSAL CONTRACT REVENUE BONDS, SERIES 1972.
Section 3. That said Bonds shall be dated FEBRUARY 1, 1972
shall be in the denomination of $5,000 each, shall be numbered
consecutively from one upward, and shall mature serially on the
maturity date, in each of the years , and in the amounts, respec-
tively, as set forth in the following schedule:
MATURITY DATE: FEBRUARY 1.
YEARS AMOUNTS
1974 $50,000
1975 50 ,000
1976 75,000
1977 75,000
Said Bonds may be redeemed prior to their scheduled maturities ,
at the option of said Authority, on the dates stated, and in
the manner provided, in the FORM OF BOND set forth in this
Resolution.
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Section 4. That said Bonds shall bear interest from their
date to their respective maturities, or to their respective dates
of redemption prior to maturity, at the rate of 4-3/4a per annum,
evidenced by interest coupons which shall appertain to said Bonds,
and which shall be payable in the manner provided and on the
dates stated in the FORA OF BOND set forth in this Resolution.
Section 5. That said Bonds and interest coupons shall be
issued, shall be payable, may be redeemed prior to their schedul-
ed maturities, shall have the characteristics, and shall be sign-
ed and executed (and said bonds shall be sealed.) , all as provided,
and in the manner indicated, in the FORM OF BOND set forth in this
Resolution.
Section 6. That the form of said Bonds , including the form
of Registration Certificate of the Comptroller of Public Accounts
of the State of Texas to be printed and endorsed on each of said
Bonds, and the form of the aforesaid interest coupons which shall
appertain and be attached initially to each of said Bonds, shall
be, respectively, substantially as follows :
FORM OF BOND:
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
TRINITY RIVER AUTHORITY OF TEXAS
TRINITY RIVER AUTHORITY OF TEXAS - CITY OF FORT WORTH,
WASTE DISPOSAL CONTRACT REVENUE BOND
SERIES 1972
ON FEBRUARY 1, 19 , TRINITY RIVER AUTHORITY OF TEXAS
hereby promises to pay to bearer hereof the principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from data hereof, at the rate of
4-3/4o per annum, evidenced by interest coupons payable AUGUST
1, 1972, and semi-annually thereafter while this Bond is out-
standing.
THE PRINCIPAL of this Bond and the interest coupons apper-
taining hereto shall be payable to bearer, in lawful money of the
United States of America, without exchange or collection charges
to the bearer, upon presentation and surrender of this Bond or
proper interest coupon, at the following, which shall constitute
and be defined as the "Paying Agent" for this Series of Bonds:
THE FORT WORTH NATIONAL BANK,
FORT WORTH, TEXAS.
THIS BOND is one of a Series dated as of FEBRUARY 1, 1972,
authorized and issued in the principal amount of $2.50,000
FOR THE PURPOSE OF ACQUIRING AND CONSTRUCTING A DISPOSAL SYSTEM,
CONSISTING OF FACILITIES FOR DISPOSING OF SEWAGE AND OTHER WASTE,
INCLUDING TREATMENT FACILITIES, TO SERVE THE CITY OF FORT WORTH.
-2-
ANY OUTSTANDING BONDS of this Series may be redeemed prior
to their scheduled maturities , on any date, at the option of sai,]
Authority, in whole, or in part, for the principal amount thereof
and accrued interest thereon to the date fixed for redemption.
Prior to the date fixed for any such redemption said Authority
shall cause a written notice of such redemption to be delivered
to the "Paying Agent'.', and by the date fixed for any such re-
demption due provision shall he made with the "Paying Agent" for
the payment of the principal amount of the Bonds which are to be
so redeemed and accrued interest thereon to the date fixed for
redemption. If such written notice of redemption is delivered, and
if due provision for such payment is made, all as provided above,
the Bonds which are to be so redeemed thereby automatically shall
be redeemed prior to their scheduled maturities , and they shall
not bear interest after the date fixed for redemption, and they
shall not be regarded as being outstanding except for the right
of the bearer to receive the redemption price from the "Paying
Agent" out of the funds provided for such payment.
IT IS HEREBY certified and covenanted that this Bond has been
duly and validly authorized, issued, and delivered; 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; that this Bond is a special obligation;
and that the principal of and interest on this Bond are payable
from, and secured by a first lien on and pledge of, the Authority's
Gross Revenues from a Waste Disposal Contract between said Au-
thority and the City of Fort Worth, Texas.
SAID AUTHORITY has reserved the right , subject to the re-
strictions stated in the Resolution authorizing this Series of
Bonds , to issue additional parity revenue bonds which also may
be made payable from, and secured by a first lien on and pledge
of, the aforesaid Gross Revenues.
SAID AUTHORITY also has reserved the right to amend the
Resolution authorizing this Series of Bonds, with the approval
of the holders of two-thirds of the outstanding Bonds , subject
to the restrictions stated in said Resolution.
THE HOLDER HEREOF shall never have the right to demand pay-
ment of this obligation out of any funds raised or to be raised
by taxation.
IN WITNESS WHEREOF, this Bond and the interest coupons apper-
taining hereto have been signed with the facsimile signature of
the President of the Board of Directors of said Authority, and
countersigned with the facsimile signature of the Secretary of
said Board of Directors, and the official seal of said Authority
has been duly impressed, or placed in facsimile, on this Bond.
xxxxxxxx xxxxxxxx
Secretary, Board of Directors Presi ent , Board of Directors
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Bond has been examined, certi-
fied as to validity, and approved by the Attorney General of
-3-
the State of Texas , and that this Bond has hecn registered by
the Comptroller of Public Accounts of the State of Texas.
Witness my signature and seal this
xxxxxxxx
Comptroller oT Public Accounts o �[� e
State of Texas .
FORM OF INTEREST COUPON:
NO. $
ON 1,- 19 ,
TRINITY. RIVER AUTHORITY OF TEXAS
promises to pay to bearer the amount shown on this interest
coupon, in lawful money of the United States of America, with-
out exchange or collection charges to the bearer, unless due
provision has been made for the redemption prior to scheduled
maturity of the Bond to which this interest coupon appertains,
upon presentation and surrender of this interest coupon, at
-THE FORT WORTH NATIONAL BANK,
FORT WORTH, TEXAS,
said amount being interest coming due that day on the Bond,
bearing the number hereinafter designated, of that issue of
TRINITY RIVER AUTHORITY OF TEXAS - CITY OF FORT NORTH, WASTE DIS-
POSAL CONTRACT REVENUE BONDS, SERIES 1972 , DATED FEBRUARY 1, 1972.
The holder hereof shall never have the right to demand payment
of this obligation out of any funds raised or to be raised by
taxation. Bond No.
xxxxxxxx xxxxxxxx
Secretary, Board of Directors President, Boar of Directors .
Section 7. PLEDGE. That the Bonds , and the interest thercun ,
are and shall be payable from and secured by an irrevocable fi st
lien on and pledge of all of the revenues or payments received by
the Authority under the Contract (hereinafter called the "Gross
Revenues") , and said Gross Revenues are further pledged irre-
vocably to the establishment and maintenance of the Funds here-
inafter created.
Section 8. SPECIAL FUNDS. That all Gross Revenues or pay-
ments received by the Authority under the Contract shall be kept
separate and apart from all other funds of the Authority, and
the following special Funds. are hereby created and shall be estab
lished and maintained in an official depository bank of the
Authority, so long as any of the Bonds , or interest coupons ap-
pertaining thereto, are outstanding and unpaid:
(a) the Revenue Fund;
(b) the Interest and Sinking Fund.
Section 9. REVENUE FUND. All Gross Revenues or payments re-
ceived by the Authority under the Contract shall be deposited as
received by the Authority into the Revenue Fund, and shall be
deposited from the Revenue Fund, as hereinafter provided .
Section 10. INTEREST AND SINKING FUND. There shall be de-
posited into the Interest and Sinking Fund the following:
(a)• immediately after the delivery of the Bonds , all
accrued interest and any premium from the proceeds from
the sale of the Bonds shall be deposited to the credit of
the Interest and Sinking Fund, and shall be used for pay-
ing Interest on the Bonds.
(b) on or before July 25 , 1972 , and semi-annually
thereafter on or before each January 25th and July 2Sth, -in
amount cyua] to the interest , and the principal , if any, com-
ing due on tale Bonds on the next succeeding, interest payment .
date.
-4-
Section 11. USE OF INTEREST AND SINKING FUND. The Interest
and Sinking Fund shall be used to pay the principal of and in-
tjE�rest on the Bonds as such principal matures and such interest
comes due.
Section 12. AUTHORITY'S EXPENSES. Immediately following
each semi-annual deposit from the Revenue Fund into the Inter-
est and Sinking Fund, the amounts remaining in the Revenue
Fund will be withdrawn and used by the Authority to pay its
expenses attributable to the Bonds and the disposal system
acquired and constructed with the proceeds from the sale of
the Bonds.
Section 13. INVESTMENTS. Money in any Fund created by this
Resolution may be placed in time deposits or be invested in di-
rect obligations of the United States of America; obligations
which, in the opinion of the Attorney General of the United
States, are general obligations of the United States and backed
by its full faith and credit; all obligations guaranteed by the
United States of America; evidences of indebtedness of the
Federal Land Banks, Federal Intermediate Credit Banks , Banks for
Cooperatives, Federal Home Loan Banks, or Federal National
Mortgage Association. Any obligation in which money is so in-
vested shall be kept and held in an official depository bank of
the Authority for the benefit of the holders of the Bonds , and
shall be promptly sold and the proceeds of sale applied to the
making of all payments required to be made from the Fund from
which the investment was made.
Section 14. DEFICIENCIES IN FUNDS. If the Authority should
fail at any time to deposit into any Fund created by this Resolu-
tion the full amounts required, amounts equivalent to such defi-
ciencies shall be set apart and paid into said Funds from the first
available Gross Revenues, and such payments shall be in addition
to the amounts otherwise required to be deposited into said Funds.
Section 15. SECURITY FOR FUNDS. All Funds created by this
Resolution shall be secured in the manner and to the fullest ex-
tent permitted or required by law for the security of public
funds, and such Funds shall be used only for the purposes and in
the manner permitted or required by this Resolution.
Section 16. COMPLETION BONDS. The Authority reserves the
right to issue additional parity revenue Bonds only in such
amounts as are required for the purpose of completing the acqui-
sition and construction of the disposal system for which the
Bonds are being issued, in accordance with the "Engineering Re-
port" of the "Consulting Engineers", and the presently approved
plans and specifications therefor, as provided in the Contract,
in the event that the proceeds from the sale of the Bonds are
insufficient. Such additional parity revenue Bonds shall be con-
sidered, constitute, and be defined as "Bonds", for all purposes
of this Resolution and the Contract, and when issued and deliver-
ed, they shall be payable from and secured by a first lien on and
pledge of the Gross Revenues, in the same manner and to the same
extent as the other Bonds; and all of the Bonds shall in all
respects be on a parity and of equal dignity. The additional
parity revenue Bonds may be issued in one or more installments
or series, provided, however, that no such installment or series
shall be issued unless:
(a) a certificate is executed by the President and Secretary
of the Board of Directors of the Authority to the effect that no
default exists in connection with any of the covenants or require-
ments of the resolution or resolutions authorizing the issuance of
all then outstanding Bonds, and that the Interest and Sinking
Fund contains the amount then required by this Resolution to be
on deposit therein;
(b) the "Consulting Engineers" under the Contract execute
a certificate to the effect that such installment or series of
Bonds is required in order to complete the acquisition and con-
struction of the disposal system as provided above ;
-5-
stallment or series of Bonds shall proride for the payment
. of the principal of and interest on such Bonds ;
(d) the governing body of the City passes an ordinance
or adopts a resolution approving a substantial draft of
the resolution authorizing the issuance of such installment
or series of Bonds.
Section 17. ACCOUNTS AND RECORDS. The Authority shall keep
proper books of records and accounts , separate from all other
records and accounts of the Authority, in which complete and
correct entries shall be made of all transactions relating to
the Contract. The Authority shall have said books audited once
each Authority fiscal year by a Certified Public Accountant.
Section 18. ACCOUNTING REPORTS. As soon as practicable
after the close of each Authority fiscal year hereafter, the
Authority will furnish, without cost, to any holder of any out-
standing Bonds who may so request, a signed or certified copy
of a report by the State Auditor of the State of Texas , or any
Certified Public Accountant, covering the next preceding fiscal
year, showing the following information:
(a) A detailed statement of all Gross Revenues;
(b) Balance sheet as of the end of said fiscal year;
(c) Accountant's comment regarding the manner in which
the Authority has complied with the requirements of this
Resolution and his recommendations, if any, for any changes
or improvements.
Section 19. INSPECTION. Any holder or holders of any Bonds
shall have the right at all reasonable times to inspect all
records, accounts, and data of the Authority relating to the
Contract and the Funds created by this Resolution.
Section 20. SPECIAL COVENANTS. The Authority further
covenants as follows:
(a) that other than for the payment of the Bonds herein au-
thorized, the Gross Revenues have not in any manner been pledged
to the payment of any debt or obligation of the Authority.
(b) that while any of the Bonds are outstanding, the Author-
ity will not, with the exception of the additional parity revenue
Bonds expressly permitted by this Resolution to be issued, addi-
tionally encumber the Gross Revenues .
(c) that the Authority will carry out all of its obligations
under the Contract ; and when or if necessary will promptly en-
force and cause the City to carry out all of its obligations
under the Contract, for the benefit of the Authority and the hol-
ders of the Bonds, by all legal and equitable means , including
the use of mandamus proceedings against the City.
Section 21. BONDS ARE SPECIAL OBLIGATIONS. The Bonds shall
be special obligations of the Authority payable solely from the
pledged Gross Revenues, and the holder or holders of the Bonds
shall never have the right to demand payment thereof out of funds
raised or to be raised by taxation.
Section 22.. A14ENDMENT OF RESOLUTION. (a) The holders of
Bonds aggregating in principal amount two-thirds of the aggre-
gate principal amount of then outstanding Bonds shall have the
right from time to time to approve any amendment to this Resolu-
tion which may be deemed necessary or desirable by the Authority,
provided, however, that nothing herein contained shall permit or
be construed to permit the amendment of the terms and conditions
in this Resolution or in the Bonds so as to:
(1) Make any change in the maturity of the outstanding Bonds ;
(2) Reduce the rate of interest borne by any of the out-
standing Bonds ;
-6-
4 (3) Reduce the amount of the principal payable on the
outstanding Bonds.;
(4) Modify the terms of payment of principal of or
interest on the outstanding Bonds, or impose any
conditions with respect to such payment ;
(5) Affect the rights of the holders of less than all
of the Bonds then outstanding;
(6) Change the minimum percentage of the principal
amount of Bonds necessary for consent to such
amendment.
(b) If at any time the Authority shall desire to amend r.he
Resolution under this Section, the Authority shall cause notice
of the proposed amendment to be published in a financial newspaper
or journal published• in the State of Texas , once during each cal-
endar week for at least four successive calendar weeks. Such
notice shall briefly set forth the nature of the proposed amend-
ment and shall state that a copy thereof is on file at the prin-
cipal office of the Paying Agent for inspection by all holders
of Bonds. Such publication is not required, however, if notice
in writing is given to each holder of Bonds .
(c) Whenever at any time not less than thirty days, and
within one year, from the date of the first publication of said
notice or other service of written notice the Authority shall re-
ceive an instrument or instruments executed by the holders of at
least two-thirds in aggregate principal amount of all 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, the Authority
may adopt the amendatory resolution in substantially the same form.
(d) Upon the adoption of any amendatory resolution pursuant
to the provisions of this Section, the Resolution shall be deemed
to be amended in accordance with such amendatory resolution, and
the respective rights , duties, and obligations under the Resolu-
tion of the Authority and all the holders of then outstanding
Bonds shall thereafter be determined, exercised, and enforced
hereunder, subject in all respects to such amendments.
(e) Any consent given by the holder of a Bond pursuant to the
provisions of this Article 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 holders 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 holder who gave
such consent, or by a successor in title, by filing notice there-
of with the Paying Agent and the Authority, but such revocation
shall not be effective if the holders of two-thirds aggregate
principal amount of the then outstanding Bonds as in this Section
defined have, prior to the attempted revocation, consented to and
approved the amendment.
(f) For the purpose of this Section, the fact of the holding
of Bonds by any Bondholder and the amount and numbers of such
Bonds, and the date of their holding same, may be proved by tho
affidavit of the person claiming to be such holder, or by a cer-
tificate executed by any trust company, bank, banker, or any other
depositary wherever situated showing that at the date therein
mentioned such person had on deposit with such trust company,
bank, banker, or other depositary, the Bonds described in such
certificate. The Authority may conclusively assume that such
ownership continues until written notice to the contrary is
served upon the Authority.
-7-
Section 23. CONSTRUCTION FUND. That in accordance with the
Contract, and immediately after the sale and delivery of the Bonds,
the Authority shall deposit from the proceeds from the sale of
the Bonds into a special Construction Fund the sum of $243 ,000.00.
Said Construction Fund shall he established, drawn on, and used in
the manner provided in the Contract , to pay the costs of acquiring
and constructing the Authority's part of the disposal system for
which the Bonds are being issued, subject to the requirement that
each expenditure from the Construction Fund must be approved by
the "Consulting Engineers" named in the Contract prior to the
making of such expenditure.
Section 24. APPROVAL AND REGISTRATION OF BONDS. That the
President of the Board of Directors of the Authority is hereby
authorized to have control of said Bonds and all necessary records
and proceedings pertaining to said Bonds pending their delivery
and their investigation, examination, and approval by the Attorney
General of the State of Texas , and their registration by the
Comptroller of Public Accounts of the State of Texas. Upon regis-
tration of said Bonds , said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate prescrib-
ed herein to be printed and endorsed on each Bond, and the seal
of said Comptroller shall be impressed, or printed, or lithograph-
ed on each of said Bonds.
Section 25. NO ARBITRAGE. That the Authority hereby cove-
nants that the proceeds from the sale of said Bonds will be used
as soon as practicable for the purpose for which said Bonds are
issued; that such proceeds will not be invested in any securities
or obligations except for the temporary period pending such use;
and that such proceeds will not be used directly or indirectly so
as to cause all or any part of said Bonds to be or become "arbi-
trage bonds" within the meaning of Section 103(d) of the Internal
Revenue Code of 1954, as amended, or any regulations or rulings
prescribed or made pursuant thereto.
Section 26. EMERGENCY. That it is hereby officially found
and determined: that a case of emergency or urgent public neces-
sity exists which requires the holding of the meeting at which
this Resolution is adopted, such emergency or urgent public neces-
sity being that the proceeds from the sale of said Bonds are re-
quired as soon as possible and without delay for necessary and
urgently needed public improvements ; and that said meeting was
open to the public, and public notice of the time, place, and
purpose of said meeting was given, all as required by Vernon's
Ann. Civ. St. Article 6252-17.
Section 27. SALE OF BONDS. That the Bonds are hereby sold,
in accordance with law, and shall be delivered to First Southwest
Company, for the price of par and accrued interest to date of de-
livery.
------------------------------------------------------
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City of Fort Worth, Texas
Mayor and Council Communication
DATE NU E ERCE SUBJECT: Contract with Trinity River PAGE
1/17/72 C-2145 Authority for Financing of Sewex i of 2
'
On June 7, 1971 (M&C C-1999) the City Manager was authorized to execute
a Memorandum of Agreement between the City of Fort Worth and the Trinity
River Authority of Texas providing for the Trinity River Authority of
Texas to assume, under the WATER POLLUTION CONTROL COMPACT, the State of
Texas' responsibility for financing a portion of Public Law 660 Project
No. WPC-TEX-750. This project involved the construction of the following
four interceptor sewers:
1. West Fork Collector, Units 4 and 5
2. Sanitary Sewer Main M-217, Relief Sewer
3. Sanitary Sewer Main M-186, Relief Sewer
4. Sanitary Sewer Main M-126, Relocation
As a result of the execution of this Memorandum of Agreement, the City
of Fort Worth became eligible for a Federal Grant in the amount of 55
per cent of the eligible project costs, provided 25 per cent of the pro-
ject costs were paid by funds provided by TRA under a formal loan agreement.
The Trinity River Authority of Texas has prepared the formal contract
under which it will provide the required 25 per cent project funding and
has submitted the appropriate documents for execution by the City to com-
plete the required formal loan agreement.
Bids were received on the last of these four projects, the West Fork
Collector, Units 4 and 5, on December 2, 1971, and the EPA approved a
contract award on December 27, 1.971. Therefore, an initial grant payment
may be requested as soon as financial arrangements with TRA are completed.
The estimated total project cost is approximately $937,100, based on the
bids received. The 25 per cent share to be financed by the TRA loan would
be approximately $234,275. Addition of the TRA expenses in the amount of
$7,000 for overhead, legal and financial advisor's fees, and other miscel-
laneous costs, makes $241,275 the minimum total amount of bonds required
to be sold by TRA to meet its commitment. . However, to provide for minor
project contingencies, it is proposed to make the bond issue for $250,000.
The contract provides the City with the option to refund the bond issue
at any time after the completion of the project, and the First Southwest
Company has agreed to buy the TRA bonds for par and accrugd interest,
with an interest rate of 4 3/4 per cent per annum, with the bonds being
subject to redemption on any date. It is the intent of the City to exer-
cise this option provided a cost savings can be realized.
DATE REFERENCE SUBJECT: Contract with Trinity River PAGE
NUMBER
C-2145 Authority for Financing of Sewer2 2
1 17 72 of
Recommendation
It is recommended that the Ordinance prepared and submitted by the
Trinity River Authority be adopted, authorizing a waste disposal
contract with the Trinity River Authority of Texas and approving a
draft of a bond resolution of said Authority pursuant to said contract.
RNL:mj
SUBMITTED BY: DISPOSITION COUNCIL: PRQCESSED BY
PROVED ❑ OTHER (DESCRIBE)
CITY SECRETARY
DATE
CITY MANAGER