HomeMy WebLinkAboutOrdinance 6737 ORDINANCE NO. 67.11;'
ORDINANCE AUTHORIZING A WASTE DISPOSAL CON-
TRACT WITH TRINITY RIVER AUTHORITY OF TEXAS
AND APPROVING A DRAFT OF A BOND RESOLUTION
OF SAID AUTHORITY PURSUANT TO SAID CONTRACT
THE STATE OF TEXAS
COUNTY OF TARRANT
CITY OF FORT WORTH
WHEREAS, it is necessary and advisable that the City of
Fort Worth enter into the Contract hereinafter authorized.
THEREFORE, BE IT ORDAINED BY THE CITY
COUNCIL OF THE CITY OF FORT WORTH:
Section 1. That the City Manager and the City Secretary are
authorized and directed, for and on behalf of the City, to date,
sign, seal, and otherwise execute a Contract in substantially
the form and substance set forth in "Exhibit A" , which is attach-
ed hereto and made a part hereof; 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 Resolution
authorizing the issuance of the Bonds described in said Contract
has been submitted to the City, and a copy thereof is attached
hereto, marked "Exhibit B", and made a part hereof. Said draft
is hereby approved, and said Bonds may be issued pursuant there-
to, and it is hereby acknowledged that all provisions of said
draft are in compliance with said Contract.
Section 4. That this Ordinance is hereby finally passed,
and shall take effect from and after its passage.
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"EXHIBIT A"
TRINITY RIVER AUTHORITY OF TEXAS - CITY OF FORT WORTH
WASTE DISPOSAL CONTRACT
TILE STATE OF TEXAS
KNOW ALL MEN BY TILESE 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
Quality 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 the "City") is a city duly organized and existing pursuan
to the constitution and laws of the State of Texas; and
WHEREAS, the Authority and the City jointly desire to
acquire, consciuct, and establish in the vicinity of the C;_ty &
disposal systsi,_, consisting of facilities for disposing of s:,,a-
age and other waste, including treatment fa.ci.lities, as such ter°.s
are defined in Chapter 25 of the Texas Water Code (formerly Vernon's
Article 76218), hereinafter sometimes called the "Project"; and
WHEREAS, the City has filed applications for Federal
grants for the Project with the Texas Water Quality Board and the
Environmental Protection Agency of the United States of America,
and collectively the Project has been given the designations as,
and consists of all of, WPC-TEX-883, -921, and -930, in the records
of the Texas Water Quality Board and the Environmental Protection
Agency, to which applications and records reference is hereby made
for a complete description of the Project; and
WHEREAS, 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
TBE, 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 meanings as follows:
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(a) "Project" means the Project as defined in
the preamble to this Contract.
(b) "Board" and "Board of Directors" means the
Board of Directors of the Authority.
(c) "Bond Resolution" means any resolution of
the Board of Directors authorizing the issu-
ance of Bonds and providing for their secur-
ity and payment, as such resolution(s) may
be amended from time to time as 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 Com-
pact, for and on behalf of the State of Texas, 250 of all of the
actual costs of acquiring and constructing each of the parts of
the Project, designated as WPC-TEX-883, -921, and -930, respect-
ively, which collectively constitute the entire Project, through
the issuance of its Bonds pursuant to Chapter 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, 75% 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. AUTHORITY'S BOND RESOLUTION. The pro-
ceeds from the sale of the Bonds will be used for the payment
of all of the Authority's expenses and costs in connection with
the Bonds, including, without limitation, all financing, legal,
printing, and other expenses and costs incurred in issuing its
Bonds, plus an administrative charge to be retained by the Au-
thority equal to 20% of the aggregate fees of the bond attorneys
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and financial advisors. It is agreed and understood that the
sum of $1,000 will be retained by the Authority as a liquidated
amount sufficient to cover and pay all of its expenses and costs
in connection with the Bonds, exclusive of the fees of the bond
attorneys and financial advisors. 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, shall be the "Consulting Engi-
neers" for the Project; that the Project will be acquired and
constructed in accordance with the "Engineering Report" which
has been prepared under the supervision of the Consulting Engineers
and which is on file with the Enviornmental 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
agreement of both the Authority and the City.
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Section 6. CON1SD'r1w("1'1Ot! Vol: the conve;1i,clicc
of th( Authority and the City, tyre CiLy 1,;J il enter into such c(--)r)-
tracts as axe necessary to provide, for acquir-i._ng 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 Crant offers from the Environmental
Protection Agency. The Authority shall deposit from the proc(ocL;
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 25% of each
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 by 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 making it po:;sible, as a Signatory 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 making available to the City the waste
treatment and waste disposal system, facilities , and services of the
Authority's part of the Project, for the treatment and disposal
of the City's waste, the City agrees to make the payments herein-
after specified. As further consideration, it is agreed that the
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City will have the sole responsibility for operating and maintain-
ing the entire Project throughout its useful life, and that: the
City will. operate and maintain the entire Project throughout its
useful lift.; and the City agrees to indemnify and to save and hold
harmless the Authority from any and all claims, damages, losses,
costs, and expenses, including reasonable attorneys fees, aris-
ing at any time from the acquisition, 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 (b) 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 arc 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 and 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 make 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 be-
fore the 10th day preceding each interest pay-
ment date on the Authority's Bonds , as are neces-
sary to pay (a) the principal and/or interest
coming due on the Authority's Bonds on the next
succeeding interest payment date, plus the fees
and charges of the Paying Agent for paying or
redeeming the Bonds and/or interest coupons ap-
pertaining thereto coming due on such date, and
(b) a fixed semi.-annual charge of $170.00
to cover and reimburse the Authority for its
administrative and overhead expenses directly
attributable and chargeable to the Bonds and
the Project, including the cost of routine
annual accounting reports.
2. Such amounts at such times as are specified in
the Authority's Bond Resolution to fund or re-
store the debt service reserve fund or any
other fund created and established for the bene-
fit of the Authority's Bonds. It is contem-
plated that any surplus investment earnings from
the debt service reserve fund and any other funds
created by the Bond Resolution will be used to
pay the principal of and interest 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 re-
imburse the Authority for, any extraordinary or
unexpected expenses or costs reasonably and neces-
sarily incurred by the Authority in connection
with the Bonds and the Project (exclusive of
routine administrative expenses and costs , includ-
ing the fees and charges of the Paying Agent for
the Bonds, and the cost of routine annual account-
ing reports) such as expenses of litigation, if
any, and costs of special studies and special pro-
fessional services, 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 increased 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 waterworks and sanitary sower system, and that
all payments to be made hereunder by it will constitute reason-
able and necessary "operating expenses" of the City's combined
watcr-,iorks and sanitary sewpr system, within the meaning of
Vernon's Article 1113, and the provisions of all ordinances au-
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thorizi_ng the issuance of all waterworks and sanitary sewer system
revenue bond issues 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 shall 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 be
raised from taxation by the City.
(e) The City's payments under this Contract shall be
made pursuant to the authority granted by Section 25.030 of the
Texas Water Code (formerly Section 6 of Vernon's Article 76218) ,
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 are 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 whether 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 offers
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 offers and the Federal grants 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. METERING. 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. CONDITION'S PRECEDEN'f. The obligation an
the part of the Authority to acquire and construct its part of
the Project shall be conditioned upon the following:
(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 City'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 sewer easements of the City for acquiring and
constructing the Project, as provided in this Contract.
Section 13. 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 the 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 God,
strikes, lockouts, or other industrial disturbances, acts of
public enemy, orders of any kind of the Government 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 , washout-,, droughts ,
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arrests, restraint of government 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 inability . It is understood and agreed that
the settlement of strikes and lockouts shall he entirely within
the discretion of the party having the difficulty, and that the
above requirement that any Force Majeure shall be remedied with
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. INSURANCE. 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 Claims Act or any
similar law or judicial decision. Such insurance will provide,
to the extent feasible and practicable, for the restoration of
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 lawful jurisdiction or any authorized repre-
sentative or agency of any of them.
Section 16. TERM OF CONTRACT. That the term of this
Contract shall be for the useful 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. If the City so
requests, 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 purchase the Authority's part of the Project, as
hereinafter provided. if the City makes such request pursuant to
this Section, 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 installment, all of
the Authority's right, title, and interest in and to the Project
for a price equal to the total amount required to redeem, retire,
and cancel all of the Authority's Bonds, including the par or
principal amount thereof, the accrued interest to date of re-
demption, 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 ex-
ercises said option, and shall furnish the Authority with a certi-
fied copy of the ordinance or resolution of the governing body of
the City exercising said option; provided, however, that the date
set for the consummation of the transaction shall be fixed so as
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to allow the Authority and the City sufficient time 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 required 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 upon the redemption of said Bonds, all of the Author-
ity's right, title, and interest in and to the Project automatically
shall vest in the City, without the necessity for executing any
conveyance, and thereafter the Authority shall have no interest
whatsoever in the Project, and this Contract shall terminate in
its entirety, and it shall be of no further force nor effect, ex-
cept 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 20th day of
October, 1972, which is the date of this Contract.
TRINITY RIVER AUTHORITY OF TEXAS
by
General Manager
ATTEST:
Secretary, Board of Directors
(SEAL) CITY OF FORT WORTH, TEXAS
by
City Manager
ATTEST: APPROVED AS TO FORM AND LEGALIT
City Secretary Oity Attorney
(SEAL)
"EXHIBIT B"
RESOLUTION AUTHORI"ZING THE I"SSUANCE OF REVENUE BONDS
TUE: STATE OF TEXAS
TRINITY RIVER AUTHORITY OF TEXAS:
WHEREAS, a Waste Disposal Contract (hereinafter called the
"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 OCTOBER 20, 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 en-
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") au-
thorized to be issued by this Resolution (hereinafter called
the "Resolution") are to be issued and delivered pursuant to
Vernon's Articles 8280-188 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
hereby authorized in the aggregate principal amount of $170,000
FOR THE `PURPOSE OF ACQUIRING AND CONSTRUCTING A DISPOSAL SYSTEM,
CONSIS'T'ING OF FACILI'T'IES FOR DISPOSING OF SEWAGE AND OTHER WASTE,
INCLUDING 'TREA'T'MENT 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-B.
Section 3. That said Bonds shall be dated NOVEMBER 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, respect-
ively, as set forth in the following schedule :
MATURITY DATE: NOVEMBER 1
YEARS AMOUNTS
1978 $20 ,000
1979 75,000
1980 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, until maturity or redemption prior to maturity, at the
rate of 4-I.12a 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 FORM 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 maturity, shall have the characteristics , and shall be sign-
ed and executed (and said bonds shall he sealed) , all as provided,
and in the manner indicated, in the FORM OF BOND set forth in this
Resolution.
Section G. '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- B
ON NOVEMBER 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 date hereof, at the rate of
4-1/2% per annum, evidenced by interest coupons payable MAY
1, 1973, 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 .NOVEMBER I , 1972 ,
authorized and issued in the principal amount of $170 ,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.
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ANY OUTSTANDING BONDS of this Series may be redeemed prior
to their scheduled maturities , on any elate , at the option of sail
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. be 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
he 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, Bo—a-r-(Fof Directors President , Board o 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 than this Bond has t�cc,n reFj stored by
the Comptroller of Public Accounts of tits State of Texas .
Witness my signature and seal this
XXX\XXXX
Comptroller of Public Accounts o -_16_
State of Texas .
FORM OF INTEPFST COUPON :
NO. $
ON 1 , Ig
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 , wiu-
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 (NORTH, TEXAS,
said amount being interest coming due that day on the Bond,
bearing the number hereinafter designated, of that issue of
TRINTV RIVER AUTHORITY OF TEXAS - CITY OF FORT WORTH, WASTE DIS-
POSAL CONTRACT REVENUE BONDS, SERTES 1972-B , DATED NOVEMBER 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 _P_res_-1J_6nt , Board of Directors .
Section 7. PLEDGE. That the Bonds , and the interest theiujii ,
are and shall. be payable from and secured by an irrevocable fii'si
lien on and pledge of all of the revenues or payments received r•y
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 Aoril 25, 1973, and semi-annually
thereafter on or before each October 25th and April 25th, an
amount, equal to the interest , and the principal, if any, com-
ing (1110, on the 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-
terest 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 ap..d 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 ;
(C..J L 11 1'(2 5UlutlU1i "o�L..lY tfilt [,:,rU,,i+_ apt suLi„ i,I-
sta11ment or series of 13onds sha11 1)ruvide 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 resoluti.on approving a substantial draft of
the resolution authorizing the i.ssuU.irIce of such installment
or series of Bonds .
Section 17 . ACCOUNTS AND RECORDS. The Authority shall keep
proper books of records and accounts , separate from a:l.1 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. AMENDMENT 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-
(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 s1.1cl, payment ;
(S) 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 ihe
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 Lai-
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 the
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. CONS`T'RUCTION 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 $162,250.00 .
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 covenants to
and with the purchaser of the Bonds that it will make no use of
the proceeds of the Bonds at any time throughout the term of this
issue of Bonds which, if such use had been reasonably expected on
the date of delivery of the Bonds to and payment for the Bonds by
the purchasers, would have caused the Bonds to be arbitrage bonds
within the meaning of Section 103(4) of the Internal Revenue Code
of 1954, as amended, or any regulations or rulings pertaining
thereto; and by this covenant the Authority is obligated to comply
with the requirements of the aforesaid Section 103 (d) and all appli-
cable and pertinent Department of the Treasury regulations relat-
ing to arbitrage bonds. The Authority further covenants that the
proceeds of the Bonds will not otherwise be used directly or in-
directly so as to cause all or any part of the Bonds to be or be-
come arbitrage bonds within the meaning of the aforesaid Section
103(d) , or any regulations or rulings pertaining 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.
------------------------------------------------------
-8—
City of Fort Worth, Texas
Mayor and' Council Comt"ttunication
SUBJSCJ,� Cntract with Trinity River PAGE
OATE 'NCE o
1W Authaxi;i far Financ"�irlg of 2
10/9/T2 NC-23 7 acts
L_ d_
On im,'ie 1, 1971 (M&C C-1,999) the City Manager was authorized to execute
Memoranda of Agreement between the City of Fort Worth and the Trinity
River Au,ttbority of Texas providing for the Trin,ity River Authority to
assume, under, the Water Pollution Control Ccaupact, the State of Texas'
responsibility for financing a portion i)f Ptiblic Law 660 Projects Nos,,
WPC-TEX-883 and WK-TEX-921 , Rehabilttation of Sanitary Sewer, Main ,B
and construction of the Rolling Hills Water Treatment Plant Out al
Sewer', respectively.
On August 30, "1971 (M&("! 0-2066) the City Manager was authorized to
execute a Memorandum of Agreement between thie City of Fort 'Worth and the
Trinity River Aulth,ority providing ffor" the Trinity River Au,thiority to assume,
under the Water PoIlution Control Coulpiact , the State of 'Texas,I responsi.-
bility for finai,-.,icing a portion of Public Law 660 Project No. WK-TEX-930,
the nbrook Lake Sewer,
As a result of the execut,ion of these Memoranda of Agreement, the City of
Fort Worth became eligible for federal grarms in the amount of 55 per cent
of the eligible prcJect costs rin these three projects, provided 25 per cent
of the project costs ere paid by funds provided by TRA under a formal
loan agreement. "rhe Trinity RJ:i ;err Authority has prepared the formal con
-
tract under wbi�,:,,h it will provide the required 25 per cent project funding
for t�hese three [)rojects and has submitted tbe appropriate, d octuwnts for
execution by the City to complete the required for-mal loarl agreement
relating to all three! p,rojects,
On July 31, 1972 (M&C C-2297) L, D. Conatser, Cantr,ac.tor, was.; awarded a
contract for, of the Rolling Hills Ouffall Sew�er, and on
September 11, 1972, (' C C-233,6) Steed Construction Comparly was awarded
a contract for construction of fl, ie Benbrook Lake Col lec,,tor Sewer,, Revised
plans on the 6habili tat ion of Sanitary Sewer, Main B are under review by
the 1exas Wate,xl, Quiality Board, and it is ant.i.cipateld that approval of
that project for advertisement for bids w4ll be obtained through in
t�he month of October a,sed rin the bids received on the first two pro-
jects wid On the latest revised Engineer's Estimate on the Sanitary Sewer
Hain B project, the funding 'requirements from II A are estimated as follows:
ESTIMATED TOTAL ESTIMATED TRA
PROJECT PROJECT COST SHARE
Rolling Hills Water Plant $ 44,00().00 11,000A)o
Out fall Sewer,
Benbrook Lake Collector 405,000.00 101,250 001
Sanitla,,ry Sewer Main B
Rehabilitation 22L MLI_09.
00.CSC
TOTALS $649,000.00 $162,250,,00
DATE REFER OBJECT; Gontract with Trinity River ME
NU,,110E Authority for Financing of
�10/9/72 lit2357 T Sewer Projects 2
Addition of the T A's expenses of 000 ::''man: overhead, cm ,n . and financial
advisors" fees andfather miscellaneous costs brings to $169,250 the Tninimum
total amount nut`;` bonds required o one sold by 'BRA to meet its nwonmmmi tmmnmann ,
ounnmc.ing to the cfcmse-n't even ttnnmmu.m mn and dollars, TRA proposes to issue bonds
in the umnta amount of $170,000 to am et its cormnitments under the Agreement,,
The contract provides the City with the option to nmr.fisnd the tncmad issue: at
any time after the + nmmp catton of the praject. The wounds will carry an
interest rate of A per cent per annum r nd ill be subject to redemption
anption:'im
on any date. It is proposed ttn,mnnt the City exercise i this option to redeein
these bonds under completion of the projects provided a cost savings
can be realized.
Re mmmm~tmmn nctat;tmann
It is recommended ttnat an ordinance be adopted to authorize gin, ' " ste isposaf
Contract with the Trinity ttn.mnna;r Authority of Texas and to approve a draft:
mat. the bond resolution of the ut tm"c rity pursuant to that contract,
NL c m,
in mTE ' :; OMMSMON PM,CMMM PROCESSED BY
.....e�..... m m rf �SECRETARY
'
CUTY MANAGER