HomeMy WebLinkAbout10-24-1989
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AGENDA
CITY OF DENTON CITY COUNCIL
October 24, 1989
Work Session of the City of Denton City Council on Tuesday,
October 24, 1989, at 5:30 P.M. in the Civil Defense Room of
City Hall, 215 E. McKinney, Denton, Texas at which the
following items will be considered:
Note: Any item listed on the Agenda for the Work Session may
also be considered as part of the Agenda for the
Regular Meeting.
5:30 p.m.
1. Receive a report concerning SPAN's plans for ,
delivering transportation services in the City of
Denton.
I 2, Receive a report on the comprehensive study and
re-evaluation of the City of Denton's Compensation/
Classification Program by Mercer Meidinger Hansen and
discuss Councils direction on setting compensation
policy.
3, Executive Session:
A. Legal Matters Under Sec. 2(e), Art. 6252-17
V.A.T.S.
1. Consider action in Ugnton County vs City
and in Re: Flow,
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2. Consider action in Pecry_vs. City, et al.
3. Consider settlement in Bowling vs Cif,
B. Real Estate Under Sec. 2(f),
V.A.T.S. Art. 6252-17
C. Personnel/Board Appointments Under Sec. 2(g),
Art 6252-17 V.A.T.S.
1. Continue annual performance evaluation of
the Municipal Judge, City Attorney and City
Manager.
1 2. consider appointments to the Animal Shelter
Advisory Committee, Building Code Board, and
NCTCOO Regional Transportation Council.
special called Meeting of the City of Denton City Council on
Tuesday, October 24, 1989, at 7:00 p.m, in the Council Chambers
of City Hall, 215 E. McKinney, Denton, Texas at which the
following items will be considered:
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city of Denton City Council Agenda
October 24, 1989
Page 2
7:00 P.M.
1. Receive and open bids regarding the City of Denton
$20,000,000, Series 1989, Revenue Bonds.
2. Receive and open bids regarding City of Denton
$1,550,000, Series 1989-A, Certificates of Obligation.
3. Public Hearings
A. Hold a public hearing and consider an ordinance
adopting a Detailed Plan for approximately 2.117
acres of land that is currently zoned Planned
Development. This is a petition by Bill Deberry
within PD 5. (Z-89-015) (P&Z recommends
approval.)
4, Ordinances
A. Consider adoption of an ordinance authorizing the
issuance, sale, and delivery of City of Denton
Utility System Revenue Bonds, Series 1989, and
approving and authorizing instruments and
procedures relating thereto.
B. Consider adoption of an ordinance authorizing the
issuance, sale, and delivery of City of Denton
1 Certificates of Obligation. Series 1989-A, and
approving and authorizing instruments and
procedures relating thereto.
Miscellaneous matters from the City Manager.
S.
6. Official Action on Executive Session Items:
A. Legal Matters
B. Real Estate
C. Personnel
D. Board Appointments
7. Hew Business:
} This item provides a section for council Members to
suggest items for future agendas.
8. Executive Session:
A. Legal Matters Under Sec. 2(e), Art. 6252-17
V.A.T.S.
B. Real Estate Under Sec. 2(f), Art, 6251-17
V.A.T.S.
C. Personnel/Board Appointments Under Sec. 2(g),
Art 6252-17 V.A.T.S.
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City of Denton city council Agenda
October 24, 1989
Page 3
C E R T I F I C A T E
I certify that the above notice of meeting was posted on the
bulletin board at the City Hall of the City of Denton, Texas,
on the day of 198 at o'clock
(a.m.) (P.m.)
CITY SECRETARY
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CITYof DENTON, TEXAS MUNICIPAL SUILDINO / DENTON, TEXAS 76201 / TELEPHONE (817) 568.8307
Office of the City manager
MEMORANDUM
DATE: October 19, 1989
1 TO, Mayor and Members of the City Council
j FROM: Roger Nelson, Administrative Assistant
SUBJECT: SPAN
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In 1987, SPAN was designated as the public transportation provider for Denton
County by the Department of Transportation. This designation allows SPAN to ,
apply for and receive Federal funds from Section 18 of the Surface
Transportation Assistance Act of 1978. These funds are available to
governmental or private non-profit entities providing trs.noportation services
in non-urbanised areas. Denton is considered a non-urbanised area because the
last census recorded our population at 48,063, which is less than the 50,000
threshold used by the Federal govornment to classify an area as urban.
M Section 18 funds are allocated by the Urban Mase Transportation Agency (UMTA)
to the appropriate state agency which then disperses the funds. In Texas, the
State Department of Highways and Public Transportation is the agency
responsible for the allocation of Section 18 funds.
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There are two categories of Section l8 funds. Capital grants can be used for
the purchase of vehicles and other equipment and they are allocated on an
80/20 matching basis. Administration grants can be used to help cover
operation and administration coats. Administrative costs aro funded at a rate
of 80/20 while operations and maintenance costs are provided as a 50/50
match. SPAN's original Section 1S grant totaled $773,650 in capital funding.
This money was used by SPAN to build its new facility on Malone and to
purchase 12 new vehicles. For fiscal year 1989-90, SPAN has been allocated
$233,000 in Section 18 funding.
C In March of 1988, the City, through the City Manager's Office, became involved
wit:, SPAN in its efforts to bring fixed route-fixed schedule transportation to
Denton. The City's participation in this project was further reinforced when
the issue was raised at a Town and Gown luncheon where both universities
expressed a need for public transportation in Denton.
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Mayor and Mcmtcrs of City Council
October 19, 1989
Page 2
While the City was aware of SPAN's designation as the public transportation
provider for Denton County, SPAN had made no idications that they intended to
begin providing fixed route transportation. The City's original cuncept was a
shuttle syatem running between the two universities and passing through the
square. At the same time, SPAN was considering van routes throughout the
county and in Denton proper.
Because SPAN was already planning to provide fixed route - fixed schedule
service in Denton, the City asked to become a part of the process and to bring
in both universities as well. It wag our intention to act in a coordinating
capacity between SPAN and the universities and to supply any technical support
possible. This process continued through the fall of 1988 with a working
group consisting of Roberta Donsbach, grika Lineberger, Sharon oiufsen (SPAN),
Brie Jackson (VNT), Jerry Cott (Chamber of Commerce), David gllison, Jerry
Clark and Roger Nelson (City of Denton) taking fact- finding tripe to Lufkin
and Bryan to observe their transportation systems.
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Lufkin is roughly half the size of Denton (33,000), but it was viewed as an
important site to visit because Lufkin had recently started a fixed route
system in a city that previously had not even had a SPAN-like transportation
provider. In addition, the City of Lufkin faced a great deal of opposition
from the general public when it was considering the system. When we visited
Lufkin, the system had been in operation for lees than one year, its ridership
was significantly higher than had been projected, community support for the
system was exceptionally high, and plans for expansion were already underway.
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The success of Lufkin's system, according to the people in Lufkin and with the
City of Lufkin, can be attributed almost entirely to one thing. trolleys.
Rather than purchasing four 40 passenger buses, Lufkin chose to purchase four
20 passenger trolleys. This choice was significant for three reasons. First
of all, the trolleys are more aesthetically pleasing than buses. Neighbor-
hoods that did not went buses running through them are now asking the transit
system to put them on trolley routes. The negative connotations of "having to
ride a bus" are a second reason for choosing the trolleys. There are some
people that simply refuse to board a bus because it comes with the perception
of an inability to afford a personal vehicle. With trolleys, their are no
negative connotations. Tourists go to San Francisco just to ride a street
car. The success of the McKinney Avenue Transit Authority is another example
of tho allure of trolleys/street care. Finally, 20 passenger trolleys were
chosen in case ridership was lees than expected. A 40 passenger bus with 10
f passengers looks more empty than full, while a 20 passenger trolley with 10
passengers looks like a relatively full vehicle. This has allowed Lufkin to
avoid some of the public perception problems that have hounded DART.
Bryan (55,000) was chosen as a site to visit because they are roughly the same
size as Denton, have a demand responsive system similar to SPAN, a large state
supported institution nearby, and they were in the process of going from a
demand responsive system to a fixed route - fixed schedule system. At the
time of our visit, Bryan had not begun its fixed route system. This fact was
actually a bonus because it allowed the group to focus upon the operational
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Mayor and Members of City Council
October 19, 1969
Page 3
aspects of fixed route transportation services rather than the riding of
routes. Maintenance, financing, routing, scheduling and training were the
primary items of discussion. It is important to note that the Brazos Valley
Conniunity Action Agency (BVCAA) is the organization in charge of the system in
Bryan and the contractor responsible for the system in Lufkin. The planning
process used to Bryan, as well as other operations and maintenance procedures,
are the same ones used in Lufkin.
In December of 1989, the City asked COG to assist SPAN in the planning of
routes for the syat:•j. After several visits, COG agreed to perform a "transit
band" analysis of SeAN'a current ridership to assist in the identification or
trip generators and destinations. While the results of COG's study have
proven useful to SPAN's demand responsive system, they have not been am useful
in the planning of fixed routes. There are two reasons for this. To begin
with, the transit bands are based on ridership figures generated exclusively
by elderly and handicapped riders. A disproportionate share of the demand
responsive passengers' destinations are doctors' offices, hospitals and the
senior center. Another problem to that of comparing apples to oranges. COO
was using figures from a demand responsive system to make assumptions about a
fixed route system. In theory, this should have been possible, but in
reality, it was not. Because of the nature of demand responsive transit,
every destination is also an origination. This is a problem that to virtually
insurmountable unless you have an abundance of manhours to devote to the
project, something neither the City, SPAN or COG possess.
In May of 1969, COO completed its study and SPAN and the City returned to the
` task of developing routes for the system. In June, SPAN learned that the
Highway Department was in the process of reclaiming seven trolleys from
Austin's Capitol-Metro Transit System. Incorporating trolleys into the Denton
system had been an objective for sometime, but the assumption had been that
' since trolleys are more expensive than vans and buses, trolleys would be added
to the system at a later date.
The trolleys had been acquired by Austin with a 7% match. UMTA money had been
used for 80% of the cost, State match money had paid 13550 and Austin had paid
7%. Because these trolleys were bought with a 7% match, the successful
applicants would pay 1% of the assessed valuation of the trolley's worth. The
trolleys are valued at between $50,000 and $65,000, meaning SPAN's share for
each trolley will be between $3,500 and $5,000.
At the same time, SPAN learned of five trolleys from Tulsa also eligible for
inter-agency transfer. The Tulsa trolleys were approximately the same as the
Austin trolleys, except they were purchased with a 20% match and thus more
expensive than the Austin trolleys. Both the Austin and Tulsa trolleys are
recent models with low mileage. Austin was forced to dispose of the seven
j trolleys because they were not being used. Tulsa's five trolleys are being
disposed of because Tulsa is nos going to operate trolleys any longer.
Tulsa's decision is based on the amount of maintenance required by trolleys
versus the amount of maintenance needed for regular buses. Trolleys have a
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Mayor and Members of City Council
October 19, 1989
Page 4
great deal of wood and braes that requires regular maintenance, if your
maintenance system is not geared for these activities, the trolleys become a
maintenance problem.
The trolleys are actually modified buses. They run on diesel fuel and have
tubber tires. The trolleys sit on 45 passenger bus frames, but the chassis
ra,lemble the trolleys of the early 20th century. The trolleys have glass
wi~udows and they are heated and air conditioned.
Soon after SPAN applied for the trolleys, a group from the Central Business
District was formed to raise the money necessary to squire the trolleys on
behalf of SPAN. At this time, they have already received donations equal to
the local match required for two trolleys (approximately $10,000) and they
have pledges for the remainder.
In August, SPAN was informed that they had been awarded two trolleys from
Austin and one from Tulsa. It appears that the total match for all of the
vehicles should not exceed $16,000.
SPAN's budget for fiscal year 1989-90 is attached. The farebox, advertising,
and charter revenues are extremely conservative figures. However, you will
note tLat there to no indication in the budget that SPAN will be needing or
requesting funding from the City above the amount already allocated. As far
as long range needs, again, SPAN does not anticipate any appreciable increase
in its regular request for funding from the City.
Three preliminary routes have been planned, and their maps are attached.
Route One will travel in a counter clockwise direction and will pass each
point on the route every 30 minutes. As you can see, Route One is focused on
the universities and the central business district. Route Two will pass
through each point on an hourly baste. Its mayor destinations are the
hospitals, the square and the mall. Route Two will also move in a counter
clockwise direction. Route Three is targeted toward the transit dependent
portions of town with the universities, utility offices, government offices,
and the square as mayor destinations. Route Three will travel in a clockwise
direction.
The design of the routes on the attached sheets involved a great deal of
thought and analysis on SPAN's part. It is fair to say that the routes are
the result of 15 years of planning since fixed route services have always been
a part of SPAN's long term goals, regardless of who provided the service. The
original routes submitted to the state are not the sam3 routes being presented
in this report. Subsequent analysis revealed corners whose turning radii are
too sharp for a 33 foot trolley. These problems are easily cured by rerouting
the trolley one or two biucks. Additional analysis of the routes,
particularly now that SPAN is in possession of one of the trolleys, could
cause the routes to be alterd further. The major stops will undoubtedly
remain, but the paths between them could change in response to physical
restrictions or in an attempt to attract more riders.
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Mayor and Members of City Council
October 19, 1989
Page 5
Rather than starting the routes on the same day and beginning the system with
one event, each route will start on a different date that is tied to an event
or date that is special to each mute. For example, Route One is scheduled to
begin service on Thursday, November 16. This will allow the route's
inauguration to coincide with the lighting of the Square. In that aame vein,
Route Two would begin on Martin Luther King Day which falls on Monday,
January 15. Route Three would have its start scheduled to coincide with the
opening of Flo-a. At this time we do not know what that date will be,
A great deal of interest and enthusiasm has been generated by the articles in
the newspaper and the trolley's appearance at County Seat Saturday, in the UNT
Howc^nming Parade and at other functions in Denton. Certainly the novelty of
riding a trolley should be a big draw for the system to its first two or three
months of operation. After the novelty wears off, there will undoubtedly be a
drop in ridership that will be compounded by the loss of students in early to
mid May. In all likelihood, it will be until well into 1991 before we know
for sure how successful the system will be.
R er Nelson
VP
Attachments
2692a
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SPAN, IIIC. - OPERATIONS BUDGET j
ORIGINAL PROPOSED
REVENUES 1940 BUDGET 119D BUDGET
zzz:::::a:::.:e.::::s::e::::::::::::s::::
TITLE 111-C NUTRITION $983366 191,386
OMNIBUS HUNGER ACT $6,500 16,500
USDA CASH $34,371 $34,371
TITLE 111.1 TRANSP,ISUPPORT,SERVICES $56,929 $54,319
TITLE ill-8 BENEFITS COUNSELING $2,455 $2,426
TITLE 111.8 i Ill-D HOMEMAVER $51595 111,204 I
CASE MANAGEMENT Ii RESIDENTIAL REPAIR $21,001 1211001 01 COORDINATED COST ALLOCATION GRANT $0 10
UMTA, SECTION IB 1140,623 1233,600
CITY OF DENTON 138,000 $36,000
CITY OF LEWISVILLE $20,000 115,000 {
DENTON COUNTY $21,000 $20,000
UNITED WAY OF DENTON COUNTY $40,000 $40,000
UNITED WAY OF LEWISVILLE $22,000 122,000
GENERAL DONATIONS $1,000 11,000
MEAL DONATIONS $35,500 135,«00
a
BUS OONAIIONS/ FEESIFARES $20,000 $301000
I$ I ADVERTISING REVENUE 10 $15,000
TRANSPORTATION CONTRNCTSi
MEDICAID $201000 $19,000
1 HANDIHOP, CITY OF DENTON 140,000 $35,000
HANDIHOP, CLIENT 7101TS $15,000 115,000
SPECIAL TRANSPORTATION $1,600 111600
INTEREST INCOME 10 $0
EOUIPMENI SALE $0 1111000
hISCELLANEOUS w $0
................-............•..........'..•....._.....i............
TOTAL REVENUES 1642p950 1759,887
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0-PA'iROLL EIPEIIOITURES ORIGINAL 1956
1490 BUOGET PROPOSED BUOGEI
RINTIUTILITIESIJANIT. SERVICES $10,000
TELEPHONE $15,000 410,000
OFFICE SUPPL./POSTAGE ~1'~u0 11~0UG
04TSIDE PRINTING ,BGO ,800
ADVERTISING, NEVS KEDIA
MARKETING, SECTION 18 i800 $800
AUDIT t PROF. FEES ,`'u00 $21240
COMPUTER PROGRAMMER TCBCI 1240
CONF,ITRAININSISTAFF i BOARD MEETING 1 71500 ,71500
LIABILITY/ BONOING S BOARD INSURANCE $I O,000 110,000
VEHICLE INSURANCE ,15,000 $25,000
VEHICLE FUEL i2u,000 $36,000
VEHICLE MAINTENANCE 510,000 ,20,000
DRIVERS HEALTH ASSESS.ITRAINING 11,000 $1$600
! LICENSING
MILEAGE 53,500 $3,500
DENTON TAXI CONTRACT 1160000 516,000
CATERED MEALS 11071000 $107,000
RA4 F000 ,10,000 420,000
FOOD RELATED 51,500 s31000
COMPUTER EQUIPMENT 10 10
RESIDENT1A'. REPAIR c0 ,4,668
MISCELLANEOUS st 10
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TOTAL NOH-PAYROLL EXPENDITURES 1238,3$0 1288,358
TOTAL EXPENDITURES 1642,950 058,887
TOTAL REVENUES 1642,950 ,758,897
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MENORAH WM
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DATE: October 19, 1989
TO: Betty McKean, Executive Director
Municipal Services and Economic Development
{
FROM: Thomas W. Klinck, Director
Personnel/Employee Relations Department
SUBJECT: Comprehensive study and Re-evaluation of
Compensation/Classification Program - Update on Mercer,
Meidinger, Hansen Study
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At the October 24 City Council work session, we will present an update of
the compensation/classification study conducted by the consultant firm of
Mercer, Meidinger, Hansen. The following outlines the background of the
study and its present status. a
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E The current classification and compensation system was implemented in 1978
and has provided for the job descriptions, pay plans, merit pay program and
performance appraisal system for employees. During the 1986-87 and 1988-89
budget years, the need to conduct a comprehensive overhaul and re-evaluation
of our system was given a high priority. Updates of this nature are
result ofa a years, However, theefundingifors
generally t constraints every a five
and budge {
such a study has been delayed. J
With the 1988/89 budget, the City Council approved one-half of the funding {
to initiate the comprehensive study of our compensation and classification
program. The budgeted amount totalled $55,700. In October, 1988 we sent a {
Request for Proposal (RFP) to twelve (12) potential consulting firms. After
evaluation of six (6) of the proposals and presentation by three (3)
finalists, the executive committee recommended the final bid to Mercer,
Meidinger, Hansen.
Approved funding allotted for two (2) phases of the four (4) phases study to
i commence: Phase 1 - Job analysis and Description Review and Phase 11 -Markut
Analysis and Salary Structure Review. Funding for Phases III -Performance
Management/Program Design and Phase IV - Final Report and Program
Installation has been approved in the 1989-90 budget. We w1ll present our
recommendations for Council approval on November 1. Contingent upon Council
approval, we will complete the overall project in the spring of 199D.
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Memo to Betty McKean - Classification/Compensation Study Update
Page 2
STATUS
To date, Phase I has been initiated and is about thirty (30) percent
completed. The project thus far has included: meetings with executives,
directors and division managers to solicit their employee pay suggestions
and philosophy as well as designing a position questionnaire and pre-testing
the position questionnaire with forty-five (45) employees of varying levels
within the organization. Mercer, Meidinger, Hansen has also collected
information on the current salary surveys, pay structures, pay plans and
f i performance evaluation systems. They are studying these at this time.
In order to provide Mercer, Meldinger, Hansen with detailed job descriptions
and responsibilities, all employees are currently completing the position
questionnaire. These will be completed for each position within the
organization and reviewed by supervisors and directors of the respective
departments. Mercer, Meidinger, Hansen will then analyze the information and
h provide us with a summary report. In addition, they will formalize the
mr,rket analysis, program design and final recommendations between now and
the spring of 1990.
As part of the overall study, we feel is imperative to include Council's
direction on compensation philosophy. We have Arranged for Tom Riley and
Cathleen Chambliss to facilitate discussion with Council members at the
November 7 work session. At that meeting we would like Council to address
the following areas:
o Their perceptions of a compensation/classification program
u Coals and objectives of an effective program
o Strengths and waaknesses of the current program
o Competitiveness, internal equity and objectivity
o Personal philosophy of an effective program
o What they would like to achieve with the dollars spent on
compensation
o Their commitment to the previously adopted compensation philosophy
o How pay should relate to performance
o Their perceptions of the best methods to evaluate performance.
As stated earlier, we anticipate that the overall study will be completed by
+ spring, 1990. We will present the results of the study to the Executive
I( Committee and Council at that time. Any budget considerations will then be
presented with the 1990-91 budget process in April, 1990.
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In the interim, we welcome any input from you or the executives to ensure a
smooth and productive process. Please feel free to contact me if you have
any questions or concerns.
Thomas . 11nck k
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DATE: 10124!89
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CITY COUNCIL REPORT FORMAT
'TD: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: REQUESTED ADOPTION OF A DETAILED PLAN FOR APPROXIMATELY 2.117 ACRES
OF LAND IN PLANNED DEVELOPMENT NO. 5.
RECOMME_NDATION4
She planning and Zoning Commission unanimously recommended approval
at its September 27, 1989 meeting. (4-0)
SUMMARY: r
This proposal is for a Detailed Plan of a portion of P.D. 5, south The of University Drive, between Ector and Bonnie Bras Roads. to the
proposal is for a funeral home, a permitted plan, and the
Denton Zoning Ordinance, the Denton Development
ordinance establishing tie planned development.
BACK_ GROUND:
The present zoning was approved in 1969. It allows all commercial
uses, subject to provisions of the P.D. ordinanceo and
wasroval of a
Detailed Plan. Due to an oversight, a building permit uJ Issued
` k prior to Detailed Plan approval.
The site is In a moderate intensity zone, and since the tripe were
l allocated when P.D. was approved, no additional intensity trips are
proposed.
PROGRAMS DEPARTMENTS OR CROUPS AFFECTED:
Addition to the tax base of Denton.
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FISCAL IMPACT: +
NIA
4Respectt y a9ubmItt Prepace y' r
G. Owen Yo9rp- S LA
Urban Planner
App oved: -
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4 0obbAins,'LA.1-CP
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Executive Director
Planning and Development
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PLANNING AND ZONING COMMISSION REPORF 11
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To: Denton City Council
Case No.: Z-89-015 Meeting Date: October 24, 1989 1
GENERAL INFORMATION
Applicant: Bill DeBerry
3032 Country Club Road
Denton, TX 76205
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Status of Applicant: Owner
Requested Action: Recommend a Detailed Plan on a
portion of a site that is currently
zoned PD-5.
Location and Size: Approximately 2.117 acres of land
located immediately south of
University Drive, between Bonnie Brae
and Ector Roads.
Surrounding Land Use y
` and Zoning: North - Right-of-way of University
j Drive; commercial zoning and y
F use across the street.
South - Right-of-way of Emery Street;
Single family zoning and use
across the street.
East - General retail zoning and use.
West - Planned Development (PDS)
zoning and commercial use.
1 Denton Development Plan: Moderate Activity Center; Study Area
No 24. I
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SPECIAL INFORMATION
Transportation: The property fronts on University
Drive; Highway 380. It Is a State of
Texas highway and a primary major
arterial. At present, the pavement
is two lanes each way, with an
approximately 37 ft. median.
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(Case Z-89-015)
Page Two
SPECIAL INFORMATION (Continued)
Transportation Tne State is planning to expand the
(Continued) road to three lanes each way, by
narrowing the median. The City of
Denton is currently pursuing plans to
landscape the median.
Access along major arterials, such as 1
University Drive, is strictly limited
by the Subdivision and Land
Development Regulations.
Emery Street, to the south of the
site, is a collector street serving
an existing residential
neighborhood. According to the
provisions of PD-5, there is to be no
access on to Emery from the site.
Utilities: Main lines for both water and
sanitary sewer exist on the south
side of University Drive.
f Drainage: the part
flood fplthe ain, as shown tract
on Federal
Emergency Management Agency maps. An
existing concrete drainage structure
crosses one corner of the site, and
small concrete drains carry runoff
from the front parking lot to the
j existing curb and gutter system in
University Drive.
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HISTORY
The site is on the east side of an existing planned
development. The subject site is being developed currently,
through an administrative oversight in which a building permit
was granted, prior to Detailed Plan approval. The applicant,
however, is cooperating fully to make sure that the development
( adheres to the Benton Development Plan policy and City
Ordinances, and is an asset to the community.
PD zoning on this tract was established in 1969.
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` Page Three
ANALYSIS
Intensity Area No. 24 encompasses a large part of University
Drive, from Locust Street to west of Bonnie Brae. Currently,
the intensity tripe have been over allocated.
Since intensity trips have already been allocated by the PD
zoning, the proposed development will create no additional
intensity than what is presently allocated. Therefore,
consideration is based on other policies of the Denton
Development Plan.
The Detailed Plan conforms to the policies of the Denton
Development Plan and the conditions of Planned Development
No. 5, including a 6 ft. screening device along Emery Street.
Access has also been limited to University Drive, in accordance
with City Codes, with just one curb cut for the site.
The landscaping more than satisfies the standards of the
Landscape Ordinance which requires that 7 trees be planted (the
applicant proposes 14) and 20 percent of the street yard be
landscaped (22 percent is proposed). The design and the
materials are also compatible with future City landscaping of
the University Drive median.
Prior to development of the site, the Landscape Volume Index was
under 1 percent. This is because the lot was mostly grassy
weeds, and a few wild bushes. The applicant proposes a
Landscape Volume Index of 12.35 percent. (As you will recall,
the "LVI" is a three-dimensional measure of the landscaping of a
site, addressing the volume of landscaping, instead of the
two-dimensional surface).
The ground sid tgn, proposed for the site, will conform to the sign
ordinance, an he applicant will obtain a permit prior to its
construction.
Off-street parking is more than adequate. Included are two
handicapped spaces and the necessary ramps. Also included is a
paved portion behind the building, which will be marked as
individual parking spaces to accommodate the expected influx of
visitors during a funeral service. This overflow parking area
- will be supervised by on-site parking attendants when used.
RECOM,+fENDAT ION
The Planning and Zoning Commission recommended approval,
unanimously, at its September 27, 1989 meeting.
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(Case Z-89-U15)
Page Four
ALTERNATIVES
1. Approval of the Detailed Plan
1. Approval of the Detailed Plan with conditions
3. Denial of the Detailed Plan
ATTACHMEN fS
j,~ I
1. Location Map ~
2. Detailed Plan and Landscape Plan
3. Maps of Intens,ty Study Area No. 24
4. Development Standards
5. Minutes of Planning and Zoning Commission Meeting of 9/27/89
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ATTACHMENT 1
Z 89 015 N
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ATTACHMENT 2
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LANDSCAPE /LAN DITAILED PLAN
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SCALE AAWe- DATE 7<z7d7
ATTACHMENT 3
INTRNBITY ARIA f Z4 +I
8123 ACRIS
BOUNDARY DBBORtTT1ON
faltf !forth AcJet Street
'aoltc volt coundary of etletlnq IGRI and icl gaming volt of !amnia
Brea
+lortnc worth PraPaSty lint et commoccial and rotall uses an the north
side of :nivenity orive
Southr Commencing om the volt and followinq the South boundary line of
ellating W loninq volt of Bonnie aria- and fallowing Emery
street vest to include existing com"relal on tma northeast f
Carnet of Ntlone and University Drive then following the crest
I`F Jnd than to Ktetv[y and than to the south Ptoparty llne of GA III Ii
idol Abutting sanest street, than along caftan Blvd. to
Vniveralt Oilwa ,
1 ~crl'r LAKt a`~ v ° t
f i tf~ Albr a ~ ,1
HAGGARD l
$11101 "A
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MAT N y
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HWY. 380 lionfeK
t1NIYERSITY 0 . M
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I9TfNa1TY AREA • 24 a!:>< Acaaa
BOUNDARY DZICRIPTION j
taftr '+ortn Locust $treat vaft o! eannse
lost3 fast coundary a! atilt ln9 l~el and Ica tonlna I,
er+e
vorchs 9orch property line ot coame re lsl and caulk 4140 an the norm
skis of +nlvfrf Lty Dtlve q;
at
al,st1 'i
ioJCht cing oM1 ens vaf t and ol dl eonnLo srf► south a nd D lol Low ng ll lea r
n9 Ce toning Os I
street afar to lneluda •tlatlnq cam►areial an ene northeast
I corner of Malang and Jnlvf pity Drive than following the ccaek
k~l and than to featwly and than co the south ptoparty line of Ge
1 Wtf aout%inq Sunset Sttat, than along Carroll Blvd. to
U v if Drlva
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~~AGGARD LN.I r
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LAND USE MANAGEMENT INFORMATION SYSTEM
PLANNING AND DEVELOPMENT DEPARTMENT
CITY OF DENTON
Intensity area it 24 Typpet Moderate Intensity Trips/ac 350
T S Z is 6677 6675 6619A 6580 6686A 6681A 668411
Boundary descriptions Northi North property line north of US 360
Southi South property line south of US 380
Dater 10/17/89 East: Carroll Blvd.
West: Property line west of Bonnie Brae
LAND USE EXISTING LAND USE CURRENT ZONING PLANNED DEVELOPMENTS
CATEGORY UNITS ACRES INTENSITY ACRES INTENSITY ACRES UNITS INTENSIT
•
SF-16 < 0 0 0 0 0 0 0 0
SF-10>16 0 0 0 0 0 0 0 0
SF-7>10 0 0 0 0 0 0 0 0
LESS SF-7 0 0 0 0 0 0 0 0
PLEXMES 0 0 0 0 0 0 0 0
DUPLEX 1 DUPLEX 0 0 0 0 0 0 0 0
MF-R 0 0 0 0 0 0 0 0
MP-192 0 0 0 0 0 0 0 0
COM/RET 0 100.37 65240.5 30.74 19981 28.41 0 18466.5
OFFICE 0 11.12 3892 2.5 875 0 0 0
INDUSTRY 0 0 0 0 0 0 0 0
INSTI'NAL 0 17 1445 0 0 0 0 0
PARKS 0 0 0 0 0 0 0 0
R/0 SPACE 0 0 0 0 0 0 0 0
TRANSPORT 0 25.96 0 0 0 0 0 0
AGRIC. 0 0 0 0 0 0 0 0
VACANT 0 61.65 0 0 0 0 0 0
TOTAL 0 216.1 70578 33.24 20856 28.41 0 18467
E INTENSITY CALCULATIONS
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III Intensity area total trips 216.1 times 350 75635
2 Trips allocated to existing land uses (built) 70578
3 Trips allocated to current zoning incl. P Ds (not built) 39323
4 Tripps allocated to vacant lands not zoned plus Aqric. zoning 0
5 Eatimated unallocated intensity trips 1)minus(2)+(3)+(4) -34265
6 Percentage of intensity trips allocated 145
- -
ONE THIRD RULE CALCULATIONS
-Acres Trips
III Allocat.tons for com\retail devolopMont 72.03 46822
2 Existing com\retail land uses (built) 10007 65241
3 Current zoning for com\retail land uses 59.15 38448
4 Total allocated (2) + (3) 159.52 103688
5 Unallocated trips\acres -87.49 -56866
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ATTACHMENT 4
DEVELOPMENT STANDARDS
CONCEPT PLAN
DETAILED PLAN
1. Statement of Intent of Oxneri
To build funeral home,
2. Statement Indicating Relation to Denton Development Guides
Compatible.
3. Total Number of Acres in Proposed Districts
2.117
4. Land Uses and Total Number of Acres in Each Parcel or Tracts
Total Proposed Acreage
a. Single Family Detached
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b. Single Family Attached (townhouses, cluster, etc.)
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c. Attached Patio/Cardea/Zero Lot Line
d. Duplex
e. Multi-Family
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f. Office
g. Neighborhood Service
h. General Retail
It Commercial
One
J. Light Industrial
1 k. Heavy Industrial
1, Other (specify)
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Development Standards
Page 2 1
5. Off-Site Information - adjacent or surrounding land uses, zoning, streets,
drainage facilities, and other existing or proposed improvements.
(Shown on concept or detailed plan.)
6. Traffic and Transportation - indicate existing and proposed streets, parking lots,
loading areas, access points. (Shown on concept or detailed plat.)
Projected Traffic Generation. (Based on traffic study, if required.)
650
7. Buildingst
a. Approximate location. (Shown on concept or detailed plan.)
b. Maximum heights
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c. Minimum eetbackst (Shown on concept or detailed plan.)
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d. Maximum gross floor area (square feet) for nonresidentialt
j 6500
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8. Residential Subdivisions
a. Number of units per acre (density)t
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b. Number and location of lotst (Shown on concept or detailed plan.)
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to Minimum site, width and depth of lotst (Shown on concept or detailed plan.)
d. Minimum fronts side and rest yard setbackst (Shown on concept or detailed plan.)
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Development Standards
Page 3
9. Water and Drainage - approximate location of all existing or proposed creeks,
ponds, lakes, floodplainss other water retention or major drainage facilities
and improvements. (Shown on concept or detailed plan.)
10. Utilities - location of all major sewers water or electrical lines and facilities.
(Shown on concept or detailed plan.)
11. Location of trees in diameter - six (6) feet from ground level.
(Shown on concept or detailed plan.)
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12. Open Space - location and size of greenbeltes parka, common and recreational areas.
(Shown on concept or detailed plan.)
13. Screening - location, type and size of all fences, berms or screening features.
(Shown on concept or detailed plan.)
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14. Development Schedule (concept plan) - showing specific date detailed plan will
be submitted, date to start construction and complete construction, and rate of
development. All dates should indicate month and year.
9-1-1989 through 11-1-89.
ADDITIONAL REQUIREMENTS FOR A DETAILED PLAN
15. Landscaping Plan - major features and types of landscaping to be used.
On detail plan.
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Development Standards
Page 4
16. Signs - show location, type and sire on detailed plan; otherwise, signs must
conform to Article 17 of the Zoning Ordinance.
On plan.
17. Sidewalks. (Shown on detailed plan.)
18. All information required for preliminary plat in accordance with Appendix A {
n (Denton Development Code) of the Code of Ordinances.
(A separate plat is required.)
19. Development Schei de (detailed plan) - indicating start and completion of
construction and the rate of development. All dates should indicate month
and year.
9-1-1989 through 11-1-1989.
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ATTACHMENT 5 Bak ~j
MINUTES ~I
Planning and zoning Commiesion
September 27, 1989
The regular meeting of the Planning and Zoning Commission of the 1
City of Denton, Texas was held on September 27, 1S89, at 5:00 p.m.
in the Council Chambers of the Municipal Building, 215 East
McKinney.
Present: Euline Brock; Jim £ngelbrecht, William Kamman, and Fran
Morgan
Absent: Judd Holt and Etha Kiker
F k Present from Staff: Frank Robbins, Executive Director for Planning
and Development; Owen Yost, Urban Planner; Joe Morris,
Assistant City Attorneyi Jane Brady, Urban Planner; Paul
Lehrer, Planning Technician; Renee Baker, Civil Engineer
Water/wastewater; Harry Persaud, Senior Planner; Cecile
Carson, Administrative Analyst; and Olivia Carson, Clerk-
Typist
{ Chairwoman Brock called the meeting to order.
` I. Consider approval of the minutes of the regular meeting of
June 21, 1989.
It was moved by Mr. Kamman, seconded by Ms. Morgan, and
G unanimously carried (4-0) to approve the minutes of June 21,
1989. ~
~V. Z-89-015. Hold a public hearing on the petition of B111 I
DeBerry requesting approval of a Detailed Plan for 1
approximately 2.117 acres zoned planned development (PD-5)
located on the south side of University Drive, backing up to
Emery Street, between Bonnie Brae and Ector Street.
Eighteen property owners within two hundred feet were
notified; four reply forms were received in favor and zero in
opposition.
,Uh ff REPORT: Mr. Yost presented the staff report (attached).
PETITIONER; Bill DeBerry, 3032 Country Club Road, stated that
he is requesting permission to construct a funeral home. It
will be an improvement to the general area and has more than
I enough plants and trees to meet landscaping requirements.
There will be a three foot parking screen across the front.
f There will be landscaping on the east side and in the back
adjacent to the building. There will be grass and photenias
between the parking area and Emery. He said that he gave the
City a utility easement on the west side of the property.
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DRAFT
P02 Minutes
September 27, 1989
Page 2 J
Ms. Brock asked how traffic will be handled. +I
Mr. DeBerry said that it will go out to Ector and around. I{III
IN FAVOR• none present.
OPPOSED: Mrs. Denman, 1228 Hillcrest, stated that she lives
on the corner of Emery and Hillcrest. She asked if the
funeral home will have access onto Emery.
Ms. Brock said no.
RECOMMENDATION: Mr. Yost stated that the staff recommends
j approval.
I
j Chairwoman Brock closed the public hearing.
DECISION: Mr. Glasscock moved to recommend approval of
2-89-015. Seconded by Mr. Engelbrecht and unanimously carried j
(4-0). 1
I Mr. Robbins introduced Jane Brady, the new Urban Planner, to ---thhe-J_JJ
f commission.
Ms. Brady stated that she has been involved in planning in Denver
for the past eight years. She primarily worked for consultants.
She worked around the airport and was involved in an interstate
project for which she got to do all the planning. She said that
because of the economy, she worked on planning for automotive uses.
They seem to be recession proof. She added that she is looking
forward to working with the commission.
Ms. Brock welcomed Ms. Brady.
V. Continue discussion of strip commercial problem and outline
of Entranceway Plan.
Mr. Robbins and the commission discussed various policies that
could provide entranceway protection. They examined the
straight zoning versus planned development debate and other
regulatory standards. They reviewed slides of entranceways
to the City.
I
Jeans Morrison of the Beautification Commission stated that
her Commission is working on a program to get people to adopt
an area or spot to keep clean.
j The Commission looked at the slides and discussed how current
ordinances could have effected the appearance of the areas if
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STAFF REPORT
To, 'Denton Planning and Zoning Commission
Case No.: Z-89-015 Meeting Date: September 27, 1989
GENERAL INFORMATION
i
Applicant: Bill DeBerry
3032 Country Club Road
Denton, TX 76205
Status of Applicant: Owner
Requested Action: Recommend a Detailed Plan on a
portion of a site that is currently
zoned PD-5.
Location and Size: Approximately 2.117 acres of land
located immediately south of
University Drive, between Bonnie Brae
and Ector Roads.
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Surrounding Land Use North - Right-OE-way of University,
and Zoning: Drive; commercial zoning and
use across the street Street;
South - Right-of-way
Single family zoning and use
across the street.
East - General retail zoning and use.
West - Planned Development R DS)
zoning and commercial use.
j
Denton Development Guide: Moderate Activity Center; Study Area
i
SPECIAL INFORMATION
The property fronts on University
Transportation: Drive; Highway 380. It is a State of
Texas highway and a primary major
arterial. At present, the pavement
is two lanes each way, with an
approximately 37 ft. median.
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Page Two
SPECIAL INFORMATION (Continued)
Transportation The State is planning to expand the
(Continued) road to three lanes each way, not by
expanding the right-of-way but by
narrowing the median. The City of
Denton is currently pursuing plans to
landscape the median. II
Access along major arterials, such as 1
University Drive, is strictly limited +
by the Denton Development Plan.
Emery Street, to the south of the
site, is a collector street serving
an existing residential neighborhood.
Utilities: Main lines for both water and
sanitary sewer exist on the south
side of University Drive.
Proposed service lines shown on the
Detailed Plan are to be superseded by
those shown on the building plans.
Drainage: No part of the subject tract is in
the flood plain, as shown by the
Federal Emergency Management Agency,
s An existing concrete drainage
structure crosses one corner of the
site, and small concrete drains carry
runoff from the front parking lot to
the existing curb and gutter system
in University Drive.
HISTORY
The site is on the east side of an existing planned
development. The subject site is being developed currently,
through an administrative oversight in which a building permit
was granted, prior to Detailed Plan approval, The applicant,
however, is cooperating fully to make sure that the development
adheres to the Denton Development Plan and is an asset to the
community,
1 PD zoning on this tract was established in 1969,
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Page Three
a•
ANALYSIS J
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Intensity Area No. 24 encompasses a large part of University
Drive, from Locust Street to a line west of Bonnie Brae.
Currently, 145 percent of the intensity trips have been
allocated, including the land in Planned Development 15.
Since intensity trips are already allocated by the PD zoning,
the proposed development will cause no additional intensity.
Therefore, staff's recommendation is based on other policies of
the Denton Development Plan.
The Detailed Plan conforms to the policies of the Denton
Development Plan and the conditions of Planned Development
No. 5, including a 6 ft. screening device along Emery Street.
Access has also been limited to University Drive, in accordance
with the Plan, with just one curb cut for the site.
The landscaping more than satisfies the standards of the
Landscape Ordinance and is compatible with future City
landscaping of the University Drive median.
The monument sign, proposed for the site, will conform to the I
sign ordinance, and the applicant will obtain a permit prior to
construction.
I Off-street parking is more than adequate. Included are two
handicapped spaces and the necessary ramps. Also included is a y
r paved portion behind the building, which will be marked as I
individual parking spaces to accommodate the expected influx of
visitors during a funeral service. This overflow parking area
will be supervised by on-site parking attendants when used. I
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RECOMMENDATION
The staff recommends approval of this Detailed Plan.
ALTERNATIVES
1
1. Approval of the Detailed Plan
2. Approval of the Detailed Plan with conditions
3. Denial of the Detailed Plan
ATTACHMENTS
1. Location Map
2. Detailed Plan and Landscape Plan
3. Intensity Study No. 24
4. Development Standards
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR THE
APPROVAL OF A PLANNED DEVELOPMENT DETAILED PLAN FOR 2.116 ACRES OF
LAND LOCATED IMMEDIATELY SOUTH OF UNIVERSITY DRIVE, BETWEEN BONNIE
BRAE AND ECTOR ROADS; PROVIDING FOR A PENALTY IN THE MAXIMUM OF
$2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, by Ordinance No. 69-1, the City Council approved a
planned development district for Block 4056, Lots 1-3 (PD-5)
located between Emery, Bonnie Brae, and University, as more
particularly described therein; and
` WHEREAS, Bill DeBerry has applied for approval of a detailed
plan for 2.116 acres of land within the district fo,: commercial
uses; and
I
WHEREAS, on September 27, 1989, after a public hearing, the
Planning and zoning commission recommended approval of the detailed
plan; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HERESY ORDAINS:
$f,,CTION I. That for the 2.117 acres of land described in
Exhibit "A", attached hereto and incorporated herein by reference,
there is approved the detailed plan shown in Exhibit "a", attached
hereto and incorporated herein by reference, so that hereafter that
portion of the district subject to the plan shall be constructod,
used, and maintained in accordance with the detailed plan herein
approved.
RECTION II. That a copy of thin ordinance shall be attached
to ordinance No. 69-1, showing the detailed plan herein approved
for that portion of the district.
SECTION III. That any person violating any provision of this
ordinance shall, upon conviction, be fined a sum not exceeding
and i distinct offense. is violated
a separate provision
$2,000.00. Each shall constitute day that a
EZ.Q N IV. That this ordinance shall become effective
fourteen (14) days from the date of its passage, and the City
Secretary is hereby directed to cause the caption of this ordinance
to be published twice in the Denton Record-Chronicle, the official
newspaper of the City of Denton, Texas, within ten (10) days of the
date of its passage.
Z-89-015/PAGE 1
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day of , 1969.
PASSED AND APPROVED this the.
RAY STEPRENS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY.
APPROV^D AS TO LEGA?•FORM:
DEBRA ADAMI DRAYOVITCHr CITY ATTORNEY
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BY: _
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V~123 15 -',,u170
EXHIBIT A
LEGAL DESCRIPTION
All that certain tract or parcel of land lying and being situated
in the Robert Beaumont Survey, Abstract 31, Denton County, Texas,
being part of a tract shown by deed to Rex C. Cauble recorded in
Volume 662, Page 475, Deed Records, Denton County, Texas, and
being all of Lot 1 of the McClendon Property Subdivision as shown i
in Voltune 4, Page 26, Plat Records of Denton County, Texas and
being more particular).) described as follows:
BEGINNING at an iron pin in the Northeast corner of said Lot 1,
McClendon Property Subdivision and the Northwest corner of Lot 1,
Block 1 of the Revised Roberts Addition as shown in Volume 346,
Page 408, Deed Records, said corner being on the south
right-of-way of State Highway 380 (University Drive):
THENCE South with the East line of said Cauble tract and the East
f line of said Lot 1 of McClendon Subdivision and the West line of
Block 1 Revised Roberts Addition a distance of 46D.28 feet to an
iron pin for the Southeast corner of said Cauble tract and the
Southeast corner of said Lot 1, McClendon Property Subdivision and
the Southwest corner of Lot 30 Block 1 of Revised Roberts
Addition, said corner also being on the North right-of-way line of
Emery Street;
a
THENCE South 89 degrees 55 minutes 30 seconds West with the South
line of said Cauble tract and the South line of said Lot 1
McClendon Property Subdivision part-of_,the way a distance of
200.00 feet to an iron pin; - -
THENCE North a distance of 461.54 feet'to an iron'pin=on-tbe-South
rigbt-of-way of State Highway 380;
THENCE South 89 degrees-42-minutes-50-seconds E"t-with-tVr---Worth
'line- of s&id-Cauble--ttt$c-t -and on the-South righ of-ways:=te
Highway 380 a distance of 200.00 feet-to-the point=of=beginning"
and containing 2.1162 acres of land.
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EXHIBIT "B"
DETAILED PLAN FOR DEBERRY FUNERAL HOME (P.D.S) CONSISTING OF:
1. Detailed Site Plan (1 page);
2. Development Standards (4 pages);
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89-015
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CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF
CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 1989, J
AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES 1
RELATING THERETO
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows:
1. The City Council of said City convened in
REGULAR MEETING ON THE 24TH DAY OF OCTOBER, 1989,
at the Municipal Building (City Ha11), and the roll was called
of the duly constituted officers and members of said City
'J1 Council, to-wit:
Jennifer K. Walters, City Secretary Ray Stephens, Mayor
Bob Gorton Linnie McAdams
f Jane Hopkins Jim Alexander
Randall Boyd Hugh Ayer
and all of said persons were present, except the following I
absentees: Boyd, thus constituting a quorum. Whereupon, among
other business, the following was transacted at said Meeting:
a written
ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF
f j CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 1989,
AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES
RELATING THERETO
was duly introduced for the consideration of said City Council
and duly read. It was then duly moved and seconded that said
Ordinance be passed; and, after due discussion, said Motion,
carrying with it the passage of said Ordinance, prevailed carried by the following vote:
AYES:
NOES:
`I ABSTENTIONS:
2. That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this
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Certificate; that said Ordinance has been duly recorded in said
City Council's minutes of said Meeting; that the above and
foregoing paragraph is a true, full, and correct excerpt from
said City Council's minutes of said Meeting pertaining to the
passage of said Ordinance; that the persons named in the above
and foregoing paragraph are the duly chosen, qualified, and
acting officers and members of said City Council as indicated
therein; and that each of the officers and members of said city
Council was duly and sufficiently notified officially and per-
sonally, in advance, of the time, place, and purpose of the
aforesaid Meeting, and that said Ordinance would be introduced
and considered for passage at said Meeting; 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. Tex. Civ. St. Article 6252-17.
3. That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinance; that the Mayor and the City
Secretary of said City have duly signed said Ordinance; and
that the Mayor and the City Secretary of said City hereby
declare that their signing of this Certificate shall constitute
the signing of the attached and following copy of said Ordi-
nance for all purposes.
SIGNED AND SEALED the 24th day of October, 1989.
City Secretary Mayor
I
` (SEAL)
We, the undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby
certify that we prepared and approved as to legality the
attached and following Ordinance prior to its passage as
aforesaid.
City Attorney
)1/u-
f Bond Attorneys
I
ORDINANCE No. 89-_
ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY
OF CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES
19891 AND APPROVING AND AUTHORIZING INSTRUMENTS AND
PROCEDURES RELATING THERETO
THE STATE OF TEXAS ;
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the City of Denton, Texas, heretofore has duly
issued the following revenue bonds:
City of Denton Utility System Revenue Refunding Bonds,
Series 1983, dated March 1, 1983;
City of Denton Utility System Revenue Bonds, Series 1984,
dated March 1, 1984;
City of Denton Utility System Revenue Bonds, Series
1984-A, dated October 1, 1984;
City of Denton Utility System Revenue Refunding Bonds,
Series 1987, dated January 1, 1987; and
City of Denton Utility System Revenue Bonds, series 1988
dated August 1, 1988; and r
it necessaryOandeadvCity isableCouncil
dedeems
authorize, issue, Denton
liver the
additional Utility System Revenue Bonds hereinafter described;
and
WHEREAS, the bonds hereinafter authorized are to be
issued, sold, and delivered pursuant to Vernon's Ann. Tex. Civ.
{ St. Articles 2368a and 1111 through 1118, the City's Home Rule
Charter, and other applicable laws.
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY
ORDAINS THAT:
Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bond or
bonds of the City of Denton, Texas (the trssuer") are hereby
authorized to be issued and delivered in the aggregate princi-
pal amount of $20,000,000 FOR THE PURPOSE OF OBTAINING MONEY
FOR IMPROVEMENTS AND EXTENSIONS OF THE CITY OF DENTON UTILITY
SYSTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS,
SEWER, AND ELECTRIC LIGHT AND POWER SYSTEM.
Section 2. DESIGNATION OF THE BONDS. Each bond issued
f 1 pursuant to this Ordinance shall be designated: "CITY OF DENTON
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UTILITY SYSTEM REVENUE BOND, SERIES 1989", and initially there
shall be issued, sold, and delivered hereunder a single fully
registered bond, without interest coupons, payable in install-
ments if principal (the "Initial Bond"), but the Initial Bond
may be essigned and transferred and/or converted into and
exchanged for a like aggregate principal amount of fully
registered bonds, without interest coupons, having serial
maturities, and in the dAnomination or denominations of $5,000
or any integral rultiple of $5,000, all in the manner herein-
after provided. The term "Bonds" as used in this Ordinance
shall mean and include collectively the Initial Bond and all
substitute honds exchanged therefor, as well as all other
substitute bonds and replacement bonds issued pursuant hereto,
and the term "Bond" shall mean any of the Bonds.
Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURI-
I TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE
F INITIAL BOND.
F
(a) The Initial Bond is hereby authorized to be issued,
sold, and delivered hereunder as a single fully registered
Bond, without interest coupons, dated OCTOBER 1, 1989, in the
denomination and aggregate principal amount of $20,000,000,
numbered R-1, payable in annual installments of principal to
the initial registered owner thereof, to-wit:
' f or to the registered assignee or assignees of said Bond or any
portion or portions thereof (in each case, the "registered
owner"), with the annual installments of principal of the
Initial Bond to be payable on the dates, respectively, and in
the principal amounts, respectively, stated in the FORM OF
INITIAL BOND set forth in this Ordinance.
(b) The Initial Bond (i) may and shall be prepaid or
redeemed prior to the respective scheduled due dates of in-
stallments of principal thereof, (ii) may be assigned and
transferred, (iii) may be converted and exchanged for other
Bonds, (iv) shall have the characteristics, and (v) shall he
signed and sealed, and the principal of and interest on the
. In ltial Bond 'shall be payable, all as provided, and in the
manner required or indicated, in the FORM OF INITIAL BOND set
forth in this Ordinance.
Section 4. INTEREST. The unpaid principal balance of the
Initial Bond shall bear interest from the date of the Initial
Bond to the respective scheduled due dates, or to the respec-
tive dates of prepayment or redemption, of the installments of
principal of the initial Bond, and said interest shall be
payable, all in the manner provided and at the rates and on the
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dates stated in the FORM OF INITIAL BOND set forth in this
Ordinance.
Section 5. FORM OF INITIAL BOND. The form of the Initial
Bond, including the fora of Registration Certificate of the
Comptroller of Public Accounts of the State of Texas to be
endorsed on the Initial Bond, shall be substantially as fol-
lows:
FORM OF INITIAL BOND
NO. R-1 $20,000,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON UTILITY SYSTEM REVENUE BOND
SERIES 1989
THE CITY OF DENTON, in Denton County, Texas (the "Issu-
er"), being a political subdivision of the State of Texas,
hereby promises to pay to
or to the registered assignee or assignees of this Bond or any
portion or portions hereof (in each case, the "registered
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f owner") the aggregate principal amount of
I
$20,000,000
(TWENTY MILLION DOLLARS)
in annual installments of principal due and payable on DECEMBER
1 in each of the years, and in the respective principal
amounts, as set forth in the following schedule:
i
PRINCIPAL PRINCIPAL
YEAH AMOUNT XM AMOUNT
1991 $1,0000000 2001 $1,1001000
1992 110000000 2002 11100,000
1993 110000000 2003 10100,000
1994 110000000 2004 10100,000
1995 100000000 2005 10100,000
1996 100000000 2006 10100,000
1997 1,0000000 2007 101000000
1998 1,000,000 2008 101000000
1999 10000,000 2009 1,1001000
P 2000 111000000
and to pay interest, from the date of this Bond hereinafter
stated, on the balance of each such installment of principal,
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respectively, from time to time remaining unpaid, at the rates
as follows:
per annum on the above installment due in 1991
i per annum on the above installment due in 1992
_t per annum on the above installment due in 1993
per annum on the above installment due in 1994
t per annum on the above installment due in 1995
k per annum on the above installment due in 1996
t per annum on the above installment due in 1997
t per annum on the above installment due in 1998
per annum on the above installment due in 1999
{ per annum on the above installment due in 2000
per annum on the above installment due in 2001
_t per annum on the above installment due in 2002
4 per annum on the above installment due in 2003
t per annum on the above installment due in 2004
t per annum on the above installment due in 2005
1 per annum on the above installment due in 2006
per annum on the above installment due in 2007
t per annum on the above installment due in 2008
I per annum on the above installment due in 2009
with said interest being payable on JUNE 1, 1990, and semi-
annually on each DECEMBER 1 and JUNE 1 thereafter while this
Bond or any portion hereof is outstanding and unpaid. Said
interest shall be calculated on the basis of a 360-day year
I j composed of twelve 30-day minths.
1 THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this
hr Bond are payable in lawful money of the United States of
America, without exchange or collection charges. The install-
ments of principal and the interest on this Bond are payable to
the registered owner hereof through the services of NCNB TEXAS
NATIONAL BANK, FORT WORTH, TEXAS, which is the "Paying
Agent/Registrar" for this Bond. Payment of all principal of
and interest on this Bond shall be made by the Paying
Agent/Registrar to the registered owner hereof on each princi-
pal and/or interest payment date by check, dated as of such
date, drawn by the Paying Agent/Registrar on, and payable
' solely from, funds of the issuer required by the ordinance
authorizing the issuance of this Bond (the "Bond ordinance") to
h be on deposit with the Paying Agent/Registrar for such purpose
as hereinafter provided; and such check shall be sent by the
Paying Agent/Registrar by United States mail, first-class
postage prepaid, on each such principal and/or interest payment
date, to the registered owner hereof, at the address of the
registered owner, as it appeared on the 15th day of the month
next preceding each such date (the "Record Date") on the
Registration Books kept by the Paying Agent/Registrar, as
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hereinafter described. The issuer covenants with the regis-
tered owner of this Bond that on or before each principal
and/or interest payment date for this Bond it will make avail-
able to the Paying Agent/Registrar, from the "Interest and
Sinking Fund" maintained pursuant to the Bond ordinance, the
amounts required to provide for the payment, in immedictely
available funds, of all principal of and interest on this Bond,
when due.
IF THE DATE for the payment of the principal of or inter-
est on this Bond shall be a Saturday, Sunday, a legal holiday,
or a day on which banking institutions in the City where the
Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall
be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking institutions are 1
~--1 authorized to close, and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
THIS BOND has been authorized in accordance with the
Constitution and laws of the State of Texas FOR THE PURPOSE OF
I OBTAINING MONEY FOR IMPROVEMENTS AND EXTENSIONS OF THE CITY OF
DENTON UTILITY SYSTEM, WHICH CONSISTS OF THE CITY$S COMBINED I
WATERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEM. ;
ON DECEMBER 1, 1999, or on any date whatsoever thereafter,
the unpaid installments of principal of this Bond may be
prepaid or redeemed prior to their scheduled due dates, at the
option of the Issuer, with funds derived from any available
source, as a whole, or in part, and, if in part, the particular
portion of this Bond to be prepaid or redeemed shall be select-
ed and designated by the Issuer (provided that a portion of
this Bond may be redeemed only in an integral multiple of
$5,000), at the prepayment or redemption price of the par or
principal amount thereof, plus accrued interest to the date
fixed for prepayment or redemption.
AT LEAST 30 days prior to the date fixed for any such
prepayment or redemption a written notice of such prepayment or
-II redemption shall be mailed by the Paying Agent/Registrar to the i
registered owner hereof. By the date fixed for any such
prepayment or redemption due provision shall be made by the
Issuer with the Paying Agent/Registrar for the payment of the
required prepayment or redemption price for this Bond or the
portion hereof which is to be so prepaid or redeemed, plus
accrued interest thereon to the date fixed for prepayment or
f redemption. If such written notice of prepayment or redemption
} is given, and if due provision for such payment is made, all as
provided above, this Bond, or the portion thereof which is to
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be so prepaid or redeemed, thereby automatically shall be
treated as prepaid or redeemed prior to its scheduled due date,
and shall not bear interest after the date fixed for its
prepayment or redemption, and shall not be regarded as being
outstanding except for the right of the registered owner to
receive the prepayment or redemption price plus accrued inter-
est to the date fixed for prepayment or redemption from the
Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the
Registration Books all such prepayments or redemptions of
principal of this Bond or any portion hereof.
THIS BOND, to the extent of the unpaid or unredeemed
principal balance hereof, br any unpaid and unredeemed portion
hereof in any integral multiple of $5,000, may be assigned by
the initial registered owner hereof and shall be transferred
only in the Registration Books of the Issuer kept by the Paying
Agent/Registrar acting in the capacity of registrar for the
Bonds, upon the terms and conditions set forth in the Bond
Ordinance. Among other requirements for such transfer, this
Bond must be presented and surrendered to the Paying Agent/-
Registrar for cancellation, together with proper instruments of
assignment, in form and with guarantee of signatures satisfac-
tory to the Paying Agent/Registrar, evidencing assignment by
the initial registered owner of this Bond, or any portion or
{ portions hereof in any integral multiple of $5,000, to the
assignee or assignees in whose name or names this Bond or any
such portion or portions hereof is or are to be transferred and
registered. Any instrument or instruments of assignment
satisfactory to the Paying Agent/Registrar may be used to
evidence the assignment of this Bond or any such portion or
portions hereof by the initial registered owner hereof. A new
bond or bonds payable to such assignee or assignees (which then
will be the new registered owner or owners of such new Bond or
Bonds) or to the initial registered owner as to any portion of
this Bond which is not being assigned and transferred by the
initial registered owner, shall be delivered by the Paying
Agent/Registrar in conversion of and exchange for this Bond or
any portion or portions hereof, but sololy in the form and
manner as provided in the next paragraph hereof for the conver-
sion and exchange of this Bond or any portion hereof- The
registered owner of this Bond shall be deemed and treated by
the Issuer and the Paying Agent/Registrar as the absolute owner
hereof for all purposes, including payment and discharge of
liability upon this Bond to the extent of such payment, and the
Issuer and the Paying Agent/Registrar shall not be affected by
any notice to the contrary.
f AS PROVIDED above and in the Bond Ordinance, this Bond, to
the extent of the unpaid or unredeemed principal balance
6
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hereof, may be converted into and exchanged for a like aggre-
gate principal amount of fully registered bonds, without
interest coupons, payable to the assignee or assignees duly
designated in writing by the initial registered owner hereof,
or to the initial registered owner as to any portion of this
Bond which is not being assigned and transferred by the initial
registered owner, in any denomination or denominations in any
integral multiple of $5,000 (subject to the requirement here-
inafter stated that each substitute bond issued in exchange for
any portion of this Bond shall have a single stated principal
maturity date), upon surrender of this Bond to the Paying
Agent/Registrar for cancellation, all in accordance with the
form and procedures set forth in the Bond Ordinance. If this
Bond or any portion hereof is assigned and transferred or
converted each bond issued in exchange for any portion hereof
shall have a single stated principal maturity date correspond-
ing to the due date of the installment of principal of this
Bond or portion hereof for which the substitute bond is being
exchanged, and shall bear interest at the rate applicable to
and borne by such installment of principal or portion thereof.
Such bonds, respectively, shall be subject to redemption prior
to maturity on the same dates and for the same prices as the
corresponding installment of principal of this Bond or portion
hereof for which they are being exchanged. No such bond shall
be payable in installments, but shall have only one stated
principal maturity date. AS PROVIDED IN THE BOND ORDINANCE,
THIS BOND IN ITS PRESENT FOPM MAY BE ASSIGNED AND TRANSFERRED
OR CONVERTED ONCE ONLY, and to one or more assignees, but the
bonds issued and delivered in exchange for this Bond or any
portion hereof may be assigned and transferred, and converted,
subsequently, as provided in the Bond Ordinance. The Issuer
shall pay the Paying Agent/Registrar's standard or customary
fees and charges for transferring, converting, and exchanging
this Bond or eny portion thereof, but the one requesting such
transfer, conversion, and exchange shall pay any taxes or
governmental charges required to be paid with respect thereto.
The Paying Agent/Registrar shall not be required to make any
such assignment, conversion, or exchange (i) during the period
commencing with the close of business on any Record Date and
ending with the opening of business on the next following
principal or interest payment date, or, (ii) with respect to
any Bond or portion thereof called for prepayment or redemption
i prior to maturity, within 45 days prior to its prepayment or
redemption date.
IN THE EVENT any Paying Agent/Registrar for this Bond is
changed by the Issuer, resigns, or otherwise ceases to act as
such, the Issuer has covenanted in the Bond ordinance that it
promptly will appoint a competent and legally qualified
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substitute therefor, and promptly will cause written notice i
thereof to be mailed to the registered owner of this Bond.
IT IS HEREBY certified, recited, and covenanted that this
Bond has been duly and validly authorized, issued, sold, and
delivered; that all acts, conditions, and things required or
proper to be performed, exist, and be done precedent to or in I
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 of the Issuer, secured
by and payable, together with other bonds, from a first lien on
and pledge of the "Pledged Revenues", which include initially
the "Net Revenues of the System" as such terms are defined in
the Bond ordinance, with the System consisting of the City's
~r---~ entire combined waterworks, sewer, and electric light and power r
system.
THE ISSUER has reserved the right, subject to the restric-
tion stated in the Bond ordinance, to issue Additional Bonds
payable from and secured by a first lien on and pledge of the
"Pledged Revenues" on a parity with this Bond.
THE REGISTERED OWNER hereof shall never have the right to
demand payment of this Bond or the interest hereon out of any j
funds raised or to be raised by taxation or from any source
whatsoever other than specified in the Bond Ordinance.
BY BECOMING the registered owner of this Bond, the regis-
tered owner thereby acknowledges all of the terms and provi-
sions of the Bond ordinance, agrees to be bound by such terms
and provisions, acknowledges that the Bond Ordinance is duly
recorded and available for inspection in the official minutes
and records of the governing body of the Issuer, and agrees
that the terms and provisions of this Bond and the Bond Ordi-
nance constitute a contract between the registered owner hereof
and the Issuer.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be
signed with the manual signature of the Mayor of the Issuer and
countersigned with the manual signature of the city Secretary
of the Issuer, has caused the official seal of the Issuer to be
duly impressed on this Bond, and has caused this Bond to be
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dated OCTOBER 1, 1989.
City Secretary, Mayor,
City of Denton, Texas City of Denton, Texas
(CITY
SEAL)
FORM OF RErr_ TRATION CERTIFICATE OF TH .
COMPTROLLER OF PUBLIC ACCOUNTS;
` COMPTROLLERPS 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
the State of Texas, and that this Bond has been registered by
the Comptroller of Public Accounts of the State of Texas.
Witness my signature and seal this
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Comptroller of Public Accounts
of the State of Texas
(COMPTROLLER'S SEAL)
i
Section S. ADDITIONAL CHARACTERISTICS OF THE BONDS.
8eaistration and Transfer, (a) The Issuer shall keep or cause
to be kept at the principal corporate trust office of NCNB
TEXAS NATIONAL BANK, FORT WORTH, TEXAS (the "Paying
Agent/Registrar") books or records of the registration and
transfer of the Bonds (the "Registration Books"), and the
Issuer hereby appoints the Paying Agent/Registrar as its
registrar and transfer agent to keep such books or records and
make such transfers and registrations under such reasonable
regulations as the Issuer and Paying Agent/Registrar may
prescribe; and the Paying Agent/Registrar shall make such
transfers and registrations as herein provided. The Paying
Agent/Registrar shall obtain and record in the Registration
Books the address of the registered owner of each Bond to which
payments with respect to the Bonds shall be mailed, as herein
provided; duty infwreach iting registered
address to
which payments shall be mailed, and such interest payments
shall not be mailed unless such notice has been given. The
Issuer shall have the right to inspect the Registration Books
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during regular business hours of the Paying Agent/Registrar,
but otherwise the Paying Agent/Registrar shall keep the Regis-
tration Books confidential and, unless otherwise required by
law, shall not permit their inspection by any other entity.
Registration of each Bond may be transferred in the Registra-
tion Books only upon presentation and surrender of such Bond to
the Paying Agent/Registrar for transfer of registration and
cancellation, together with proper written instruments of
assignment, in form and with guarantee of signatures satis-
factory to the Paying Agent/Registrar, evidencing (i) the
assignment of the Bond, or any portion thereof in any integral
multiple of $5,000, to the assignee or assignees thereof, and
(ii) the right of such assignee or assignees to have the Bond
or any such portion thereof registered in the name of such
assignee or assignees. upon the assignment and transfer of any
l Bond or any portion thereof, a new substitute Bond or Bonds
shall be issued in conversion and exchange therefor in the
manner herein provided. The Initial Bond, to the extent of the
unpaid or unredeemed principal balance thereof, may be assigned
and transferred by the initial registered owner thereof once
only, and to one or more assignees designated in writing by the
initial registered owner thereof. All Bonds issued and de-
livered in conversion of and exchange for the initial Bond
shall be in any denomination or denominations of any integral
multiple of $5,000 (subject to the requirement hereinafter
stated that each substitute Bond shall have a single stated
principal maturity date), shall be in the form prescribed in
the FORM OF SUBSTITUTE BOND set forth in this ordinance, and
shall have the characteristics, and may be assigned, trans-
ferred, and converted as hereinafter provided. If the Initial
Bond or any portion thereof is assigned and transferred or
converted the Initial Bond must be surrendered to the Paying
Agent/Registrar for cancellation, and each Bond issued in
exchange for any portion of the Initial Bond shall have a
single stated principal maturity date, and shall not be payable
in installments; and each such Bond shall have a principal
maturity date corresponding to the due date of the installment
of principal or portion thereof for which the substitute Bond
is being exchanged; and eac!; such Bond shall bear interest at
the single rate applicable to and borne by such installment of
principal or portion thereof for which it is being exchanged.
If only a portion of the Initial Bond is assigned. and trans-
ferred, there shall be delivered to and registered in the name
of the initial registered owner substitute Bonds in exchange
for the unassigned balance of the initial Bond in the same
manner as if the initial registered owner were the assignee
f i thereof. If any Bond or portion thereof other than the Initial
Bond is assigned and transferred or converted each Bond issued
in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Bond for which
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it is exchanged. A form of assignment shall l Bo be prince shall
endorsed on each Bond, excepting the be executed by the registered owner or its duly authorized '
attorney or representative to evidencean assignment or portions the thereof.
r
Upon surrender of any Bonds or any portion
for transfer of registration, an authorized representative of
the Paying Agent/Registrar shall make such transfer in the
Registration Books, and shall deliver a new t fullyti eg here n
substitute Bond or Bonds, having
owner assignee
org owners of assignees such
wdescribed, payable to
newhBondtorn
the registered such
Bonds), or to the previous registered owner in case only a
portion of a Bond is being assigned and transferred, all in
conversion of and exchange for said assigned Bond or Bonds or
any portion or portions thereof, in the same form and manner,
and with the same effect, as provided in Section 6(d), below,
for the conversion and exchange of Bonds by any registered
owner of a Bond. The Issuer shall pay the Paying Agent/
Registrar's standard or customary fees and charges for making
such transfer and delivery of a substitute Bond or Bonds, but
j the one requesting such transfer shall pay any taxes or other
governmental charges required to be paid with respec- thereto.
The Paying Agent/Registrar shall not be required to thmake
ereof
transfers of registration of any Bond or any portion (1) during the period commencing with the close of business on
any Record Date and ending with the opening of business on the
next following principal or interest payment date, or,
with respect to any Bond or any portion thereof called for
I redemption prior to maturity, within 45 days prior to its
redemption date.
(b) ownergbj2 of Bonds. The entity in whose name any
Bond shall be registered in the Registration Books at any time
shall be deemed and treated as the absolute owner thereof for
all purposes of this ordinance, whether or not such Bond shall
be overdue, and the Issuer and the Paying Agent/Registrar shall
not be affected by any notice to the coyif any, payment
or on account of, the principal of, premium, interest on a such ents s shallb beavalidl a d to such effectualstoored
owner. All such paym
satisfy and discharge the liability upon such Bond to the
extent of the sum or sums so paid.
as hereby
{c} pointst the Payinga Agent/Registrarhto actIssuer
further app
paying agent for paying the principal of and interest on the
Bonds, and to act as its agent to convert and exchange or
replace Bonds, all as provided in this ordinance. The Paying
Agent/Registrar shall keep proper records of all payments made
by the Issuer and the Paying Agent./Registrar with respect to
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the Bonds, and of all conversions and exchanges of Bonds, and
all replacements of Bonds, as provided in this Ordinance.
(d) on erg ion and rxchanae or Rgp]~emgntt Authenti-
cation. Each Bond issued and delivered pursuant to this
1
Ordinance, to the extent of the unpaid or unredeemed principal
balance or principal amount thereof, may, upon
such Bond at the principal corporate trust office of the Paying
Agent/Registrar, together with a written request therefor duly
executed by the registered owner or the assignee or assignees
thereof, or its or their duly authorized attorneys or represen-
tatives, with guarantee of signatures satisfactory to the
Paying Agent/Registrar, may, at the option of the registered
owner or such assignee or assignees, as appropriate, be con-
verted into and exchanged for fully registered bonds, without
deFORM OF nomination SUBSTI-
interest cseto forth in this Ordinacieed in the the
TUTE -
TUTE BOND
F $5,000, or any integral multiple of $5,000 (subject to the {
in Bond
request d substitute
writing by
have requirement a single hereinafter stated maturityddathat te), each
such registered owner or such assignee or assignees, in an
aggregate principal amount equal to the unpaid or unredeemed
principal balance or principal amount of any Bond or Bonds so
surrendered, and payable to the appropriate registered owner,
assignee, or assignees, as the case may be. if the initial ,
Bond is assigned and transferred or converted each substitute
Bond issued in exchange for any portion of the Initial Bond
shall hpayable single
inl installantst ands each such Bond shall have shall
not be a
principal maturity date corresponding to the due date of the
installment of principal or portion thereof for which the v
substitute Bond is being e-cchangedi and each such Bond shall
bear interest at th., singis rate applicable to and borne by
such installment of principal or portion thereof for which it
is being exchanged. If a portion of any Bond (other than the
initial Bond) shall be redeemed prior to its scheduled maturity
maturity provided dates bearing substitute interest at the same s rahaving te, in the same
mat
denomination or denominations of any integral multiple of
$5,000 at the request of the registered owner, and in aggregate
principal amount equal to the unredeemed portion thereof, will
be issued to the registered owner upon surrender thereof for
cancellation. If any Bond or portion thereof (other than the
initial. Bond) is assigned and transferred or converted, each
Bond issued in exchange therefor shall have the same principal
maturity date and bear interest at the same rate as the Bond
for which it is being exchanged. Each substitute Bond shall
bear a letter and/or number to distinguish it from each other
exchangeed or
shall
and each convert fully and
Bond. T s as provided Agent/Registrar
replace+ Bonds
jl
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bond delivered in conversion of and exchange for or replacement
of any Bond or portion thereof as permitted or required by any
provision of this ordinance shall constitute one of the Bonds
I for all purposes of this Ordinance, and may again be converted
and exchanged or replaced. It is specifically provided that
any Bond authenticated in conversion of and exchange for or
I Record eDate for another the Initial Bond shallr beto the first scheduled
ar interest from the
date of the Initial Bond, but each substitute Bond so authenti-
catea after such first scheduled Record Date shall bear inter-
est
hstitute Bonds was so e aunext preceding the thentic td$ unlesatsu on
which such sub
which o case before
d autnenticated after ymeRecord nt datefa in but on
the next Collowing interest pa it
shall bear interest from such next following interest payment
date; provided, however, that if at the time of delivery of any
substitute Bond the interest on the Bord for which it is being
such Bond shall
to been wpaid, then such
has been
frm u the has not
bear exchanged
interest due
raid in full. THE INITIAL BOND issued and delivered pursuant
'o this ordinance is not required to be, and shall not be,
authenticated by the Paying Agent/Registrar, but on each
substitute Bond issued in conversion of and exchange for or
replacement of any Bond or Bonds issued under this ordinance
there shall be printed a certificate, in the form substantially
as follows:
"PAYING AGENT/RErISTRAROS AUTHENTICATION CERTIFICATE
1 It is hereby certified that this Bond has been issued
under the provisions of the Bond ordinance described in this
Bond; and that this Bond has been issued in conversion of and
exchange for or replacement of a bond, bonds, or a portion of a
bond or bonds
ye
neral of the State of Texas l and w registered approved by the
Attorney General
Comptroller of Public Accounts of the State of Texas.
N:NB TEXAS NATIONAL BANK,
FORT WORTH, TEXAS f
Paying Agent/Registrar
Dated By
Author zed Representat ve"
An authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such Bond, date and manually
sign the above Certificate, and no such Bond shall be deemed to
ex-
be issued or outstanding unless such Certificate i cancel all
ecuted. The Paying Agent/Registrar promptly shall
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Bonds surrendered for conversion and exchange or replacement.
No additional ordinances, orders, or resolutions need be passed
or adopted by the governing body of the Issuer or any other
body or person so as to accomplish the foregoing conversion and
exchange or replacement of any Bond or portion thereof, and the
Paying Agent/Registrar shall provide for the printing, -
execu
tion, and delivery of the substitute Bonds in the manner
prescribed herein, and said Bonds shall be of type composition
printed on paper with lithographed or steel engraved borders of
customary weight and strength. Pursuant to Vernon's Ann. Tex.
Civ. St. Art. 717k-b, and
duty of conversion and exchange uorrreplacement6ofh Bonds' ashe
aforesaid is hereby imposed upon the Paying Agent/Registrar,
a.id, upon the execution of the above Paying Agent/Registrar's
Authentication Certificate, the converted and exchanged or
replaced Bond shall be valid, incontestable, and enforceable in
the same manner and with the same effect as the initial Bond ,
.--1 which originally was issued pursuant to this ordinance, ap-
proved by the Attorney General, and registered by the Comptrol-
ler of Public Accounts. The Issuer shall pay the Paying
Agent/Registrarts standard or customary fees and charges for
transferring, converting, and exchanging any Bond or any
portion ther•)of, but the one requestin an
conversions and exchange shall g y such transfer,
charges required pay any taxes or governmental
~ Nired to be paid with respect thereto as a condition
precedent to the exercise of such privilege of conversion and
exchange. The Paying Agent/Registrar shall not be required to
make any such conversion and exchange or replacement of Bonds
or any portion thereof (i) during the
the close of business on any Record Date rand endingcwithwthe
opening of business on the next following principal or interest
payment date, or, (ii) with respect to any or
thereof called for redemption prior to maturitond t portion
prior to its redemption date. Y. within 45 days
(a) In Genarw~ All Bonds is%ued in conversion and
exchange er re}- lac ent of any other Bond or portion thereof,
(i) shall be issued in fully registered form, without interest
coupons, with the principal of and interest on such Bonds to be
payable only'to the registered owners thereof, (ii) may and
shall be redeemeI prior to their scheduled maturities, (iii)
may be transferred and assigned, (iv) may be converted and ex-
changed for other Bonds, (v) shall have the characteristics,
(vi) shall be signed and sealed, and (vii) the principal of and
interest on the Bonds shall be
the manner required or indicatedayabl, all as , and
, ins the FORM OF providedSUBSTITUTEin
BOND set forth in this ordinance.
(f) of Fee and ha , hereb
covenants with the registered owners of thehBondsuthat it will
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(i) pay the standard or customary fees and charges of the
Paying Agent/Registrar for itq services with respect to the
payment of the principal of and interest on the Bonds, when
due, and (ii) pay the fees and charges of the Paying Agent/-
Registrar for services with respect to the transfer of regis-
tration of Bonds, and with respect to the conversion and
exchange of Bonds solely to the extent above provided in this
Ordinance.
(g) Substitut4 Paving Agent/Reg str The Issuer
covenants with the registered owners of the Bonds that at all
times while the Bonds are outstanding the Issuer will provide a
competent and legally qualified bank, trust company, financial
institution, or other agency to act as and perform the services
of Paying Agent/Registrar for the Bonds under this Ordinance,
and that the Paying Agent/Registrar will be one entity. The
Issuer reserves the right to, and may, at its option, change
the Paying Agent/Registrar upon not less than 120 days written
notice to the Paying Agent/Registrar, to be effective not later
than 60 days prior to the next principal or interest payment
date after such notice. In the event that the entity at any
time acting as Paying Agent/Registrar (or its su.:cessor by
merger, acquisition, or other method) should resign or other-
wise cease to act as such, the Issuer covenants that promptly
it will appoint a competent and legally qualified bank, trust
company, financial institution, or other agency to act as
Paying Agent/Registrar under this Ordinance. Upon any change
f in the Paying Agent/Registrar, the previous Paying Agent/Regis-
tray promptly shall transfer and deliver the Registration Books
(or a copy thereof), along with all other pertinent books and
records relating to the Bonds, to the new Paying Agent/Regis-
tray designated and appointed by the Issuer. Upon any change
in the Paying Agent/Registrar, the Issuer promptly will cause a
written notice thereof to be sent by the new Paying Agent/P.egi-
strar to each registered owner of the Bonds, by United States
mail, first-class postage prepaid, which notice also shall give
` the address of the new Paying Agent/Registrar. By accepting
the position and performing as such, each Paying Agent/Regis-
trar shall be deemed to have agreed to the provisions of this
Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar.
Section 7. FORM OF SUBSTITUTE BONDS. The form of all
Bonds issued in conversion and exchange or replacement of any
other Bond or portion thereof, including the form of Paying
Agent/Registrar's Certificate to be printed on each of such
Bonds, and. the Form of Assignment to be printed on each of the
Bonds, shall be, respectively, substantially as follows, with
1 such appropriate variations, omissions, or insertions as are
per a tied or required by this Ordinance.
91
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FORM OF srta_,s._ STITC7T~@4N~
NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT
STATE OF TEXAS
COUNTY OF DENPON
CITY OF DENTON UTILIES SYSTEM REVENUE BOND
SER INTEREST RATE
the L~{~T-VhITy D TE
ON THE MATURITY DATE specified above n C a OF DENTON,
in Denton County, Texas (the "Issuer") being political
subdivision of the State of Texas, hereby promises to pay to
hereinafter
or to the registered ass gne,, hthe°principal mount of
called the "registered owner")
I
3 interest thereon from OCTOF`-K It 1989' to the
and to pay ecified above, or the date of redemption prior
maturity date sp i
to maturity, at the interest rate per annum specified abo-ni
1990, and semiannually
with interest being payable on JUNE 11 that if the
on each DECEMBER 1 and JUNE 1 thereafter, except
date of authentication of this Bond is later than MAY 150 1990,
such upti d cipanext preceding L nadainterest atrthenticatinnte unless
such date of authentication is after any Record Date (herein-
after defined) but on or before the next following interest
` payment date, in which case such principal amount
shall beaid
interest from such next following interest payment
interest shall be calculated on the basis of a 360-day year
composed of twelve 30-day months.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in
lawful money of the United States of America, without oxchange
or collection charges. The principal of this Bond shall be
paid to the registered owner hereof upon presentation and
surrender n to maturity, or upon the date fixed for
its at the principal corporate
trust office of NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS,
which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying here
on each Agent/Registrar cheer, datedtas of such intere t payoe to daterest
payment date by Agent/ Re istrar on, and payable solely
drawn frofunds the Paying g autho them issuance of hthes8 ndsre the edBondtOrdinance")e to be rolling
II
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4 deposit with the paying Agent/Registrar for such purpose as
be ei~t b the
hereinafter provided, and such check stalled, sfirst class
f paying Agent/Registrar by United States a ent date, to the
postage prepaid, on each such interest p Ym of the registered owner hereof, at the addr s sthe monthrnexttereced-
owner, as it appeared on the 15th day ,l on the Registration
Payitheng "Record
Agent/ Reg gistrar, as hereinafter
Bookseach kept such by datthee (the
Boo
described. Any accrued interest due upon the redem,)tlon of
this Bond prior to maturity as provided herein shall be paid to
the registered owner at the principals ation to rust officeoff
the Paying Agent/Registrar upon present and surrener
at the principal corporate
this Bond for redemption and payment
trust office of the Paying Agent/Registrar. The Issuer cove-t,n
or be nants with the rdate,~ninterestlpaymenttdat.e, and accfrued
each principal payment
interest payment date for this Bond it will make &.railable to
the Paying Agent/Registrar, from the "Interest and Sinking
Fund" created by the Bond Ordinance, the amounts required to
provide for the payment, in immediately available funds, of all
principal of and interest on the Bonds, when d've.
i
IF THE DATE for the payment of the principal of or inter-
est on this Bond shall be a Saturday, Sunday, a legal holiday,
or a day on which banking institutions in the City where
re ore
Paying Agent/Registrar is located are authorized by law
shall
executive order to close, then the date for such payment
be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking shallnstituti
have the e
authorized to closes and payment on such date
same force and effect as if made on the original date payment
was due.
THIS BOND is one of an issue of Bonds initially dated
ance
zed in
OCT 89, autho
with andOBawsltof9the Stater of Texascinrthe p incipale mountgofion
IMPROVE-
O PURPOSE
MENTS UTILITY SYSTEM,
EXTENSIONS OF HE CITY BOFIDENTONO
WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND
ELECTRIC LIGHT AND POWER SYSTEM.
ON DECEMBER 1, 1999, or on any date whatsoever thereafter,
the Bonds of this Series may be redeemed prior t wtthirundsed-
uled maturities, at the option of the Issuer,
derived from any available han pa wf% source, as a pwhol ortions in
the
part, and, if in part,
thereof, to be redeemed seof selected Bo d may be iredeemed c ly
Issuer {provided that a portion at the redemption price of
in an integral multiple of $5,000),
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the par or principal amount thereof, plus accrued interest to
the date fixed for redemption.
AT LEAST 30 days prior to the date fixed for any redemp-
tion of Bonds or portions thereof prior to maturity a written
notice of such redemption shall be published once in a finan-
cial publication, journal, or reporter of general circulation
among securities dealers in The City of New York, New York
(including, but not limited to, The Bond Buyer and The Wall
Street Journal), or in the State of Texas (including, but not
limited to, The Texas Bond Reporter). Such notice also shall
be sent by the Paying Agent/Registrar by United States mail,
first-class postage prepaid, not less than 70 days prior to the
date fixed for any such redemption, to the registered owner of
each Bond to be redeemed at its address as it appeared on the
45th day prior to such redemption dater provided, however, that
the failure to send, mail, or receive such notice, or any
defect therein or in the sending or mailing thereof, shall not
affect the validity or effectiveness of the proceedings for the
redemption of any Bond, and it is hereby specifically provided
that the publication of such notice as required above shall be
the only notice actually required in connection with or as a
prerequisite to the redemption of any Bonds or portions there-
of. By the date fixed for any such redemption due provision
1 shall be made with the Paying Agent/Registrar for the payment
of the required redemption price for the Bonds or portions
thereof which are to be so redeemed, plus accrued interest
thereon to the date fixed for redemption. If such written
notice of redemption is published and if due provision for such
payment is made, all as provided above, the Bonds or portions
thereof which are to be so redeemeh thereby automatically shall
be treated as redeemed prior to their scheduled maturities, and
they shall not bear interest after the date fixed for redemp-
tion, and they shall not be regarded as being outstanding
except for the right of the registered owner to receive the
redemption price plus accrued interest from the Paying Agent/
Registrar out of the funds provided for such payment. If a
portion of any Bond shall be redeemed a substitute Bond or
Bonds having the same maturity date, bearing interest at the
_ same rate, in any denomination or denominations in any integral
multiple of $5,000, at the written request of the registered
owner, and in aggregate principal amount equal to the unre-
deemed portion thereof, will be issued to the registerea owner
upon the surrender thereof for cancellation, at the expense of
the issuer, all as provided in the Bond Ordinance.
I THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTE-
GRAL MULTIPLE OF $5,000 may be assigned and shall be trans-
ferrad only in the Registration Books of the Issuer kept by the '
Paying Agent/Registrar acting in the capacity of registrar for
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the Bonds, upon the terms and conditions set forth in the Bond
Ordinance. Among other requirements for such assignment and
transfer, this Bond must be presented and surrendered to the
Paying Agent/Registrar, together with proper instruments of
assignment, in form and with guarantee of signatures satisfac-
tory to the Paying Agent/Registrar, evidencing assignment of
this Bond or any portion or portions hereof in any integral
multiple of $5,000 to the assignee or assignees in whose name
or names this Bond or any such portion or portions hereof is or
are to be transferred and registered. The form of Assignment
rrinted or endorsed on this Bond shall be executed by the
registered owner or its duly authorized attorney or representa-
tive, to evidence the assignment hereof. A new Bond or Bonds
payable to such assignee or assignees (which then will be the
new registered owner or owners of such new Bond or Bonds), or
to the previous registered owner in the case of the assignment
and transfer of only a portion of this Bond, may be delivered
by the Paying Agent/Registrar in conversion of and exchange for
this Bond, all in the form and manner as provided in the next
I paragraph hereof for the conversion and exchange of other
Bonds. The Issuer shall pay the Paying Agent/Registrar s
standard or customary fees and charges for making such trans-
fer, but the one requesting such transfer shall pay any taxes
or other governmental charges required to be paid with respect
! thereto. The Paying Agent/Registrar shall not be required to
comof this m ncing Bond
w with then close portion
make hereof transfers
of
(i) f during theregistration period
business on any Record Date and ending with the opening of
business on the next following principal or interest payment
date, or, (ii) with respect to any Bond or any portion thereof
called for redemption prior to maturity, within 45 days prior
to its redemption date. The registered owner of this Bond
shall be deemed and treated by the Issuer and the Paying
Agent/Registrar as the absolute owner hereof for all purposes,
including payment and discharge of liability upon this Bond to
tho extent of such payment, and the Issuer and the Paying
Agent/Registrar shall not be affected by any notice to the
contrary.
ALL BONDS OF THIS SERIES are issuable solely as fully
registered bonds, without interest coupons, in the denomination
of any integral multiple of $5,000. As provided In the Bond
ordinance, this Bond, or any unredeem,:d portion hereof, may, at
the request of the registered owner or the assignee or as-
signees hereof, be converted into and exchanged for a like
aggregate principal amount of fully registered bonds, without
j interest coupons, payable to the appropriate registered owner,
assignee, or assignees, as the case may be, having the same
f maturity date, and bearing interest at the same rate, in any
denomination or denominations in any integral multiple of
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$5,000 as requested in writing by the appropriate registered
owner, assignee, or assignees, as the case may be, upon sur-
render of this Bond to the Paying Agent/Registrar for cancella-
tion, all in accordance with the form and procedures set forth
in the Bond Ordinance. The Issuer shall pry the Paying Agent/-
Registrar's standard or customary fees and charges for trans-
ferring, converting, and exchanging any Bond or any portion
thereof, but the one requesting such transfer, conversion, and
exchange shall pay any taxes or governmental charges required
to be paid with respect thereto as a condition precedent to the
exercise of such privilege of conversion and exchange. The
Paying Agent/Registrar shall not be required to make any such
conversion and exchange (i) during the period commencing with
the close of business on any Record Date and ending with the
opening of business on the next following principal or interest
payment date, or, (ii) with resppect to any Bond or portion
thereof called for redemption prior to maturity, within 45 days
prior to its redemption data.
IN THE EVENT any Paying Agent/Registrar for the Bonds is
I{ changed by the Issuer, resigns, or otherwise ceases to act as
such, the Issuer has covenanted in the Bond Ordinance that it
promptly will appoint a competent and lagally qualified substi-
tute therefor, and promptly will cause written notice thereof
to be mailed to the registered owners of the Bonds.
IT IS HEREBY certified, recited, and covenanted that this
Bond has been duly and validly authorized, issued, sold,and de-
livered; 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 laws
that this Bond is r. special obligation of the Issuer, secured
by and payable, together with other bonds, from a first lien on
and pledge of the "Pledged Revenues", which include initially
the "Net Revenues of the System15, as such terms are defined in
the Bond Ordinance, with the System consisting of the City's
entire combined waterworks, sewer, anti electric light and power
system.
THE ISSUER has reserved the right, subject to the restric-
tion stated in the Bond Ordinance, to issue Additional Bonds
payable from and secured by a first lien on and pledge of the
"Pledged Revenues" on a parity with this Bond an3 series of
which it is a part.
THE REGISTERED OWNER hereo: shall never have the right to
demand payment of this Bond or the interest hereon out of any
funds raised or to be raised by taxation or from any source
4 whatsoever other than specified in the Bond Ordinance.
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BY BECOMING the registered owner of this Bond, the regis-
tered owner thereby acknowledges all of the terms and provi-
sions of the Bond ordinance, agrees to be bound by such terms
and provisions, acknowledges that the Bond Ordinance is duly
recorded and available for inspection in the official minutes
and records of the governing body of the Issuer, and agrees
that the terms and provisions of this Bond and the Bond ordi-
nance constitute a contract between each registered owner
hereof and the Issuer.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be
signed with the facsimile signature of the Mayor of the Issuer
r and countersigned with the facsimile signature of the City
Secretary of the Issuer, and has caused the official seal of
the Issuer to be duly impressed, or placed in facsimile, on
this Bond.
(facsimile signature) (facsimilQ_signaturel
City Secretary, Mayor,
City of Denton, Texas City of Denton, Texas
(CITY SEAL)
FORM OF PAYING AGENT/REGISTR.&R'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE w
( It is hereby certified that this Bond has been issued N
under the provisions of the Bond Ordinance described in this
Bonds and that this Bond has been issued in conversion of and
exchange for or replacement of a bond, bonds, or a portion of a
bond or bonds of an issue w:!_^h originally was approved by the
Attorney General of the State of Texas and registered by the
Comptroller of Public Accounts of the State of Texas.
NCNB TEXAS NATIONAL BANK,
FORT WORTH, TEXAS
Paying Agent/Registrar
Dated By_
Authorized Representative
FORM OF ASSIGNMENTI
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned registered owner of
this Bond, or duly authorized representative or attorney
thereof, hereby assigns this Bond to
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t
Y
a{
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(Assignee's Social (print or typewrite Assignee's name and
Security or Taxpayer address, including zip code)
Identification Numbnr
and hereby irrevocably const tutes and appoints
attorney to transfer the registration of this Bond on the
Paying Agent/Registrar's Registration Books with full power of I
substitution in the premises.
Dated:
Signature Guaranteed:
NOTICEi The sFgnature must be Registered owner
guaranteed by a member of the NOTICE: The signature above
New York Stock Exchange or a must correspond with the name
commercial bank or trust of the Registered owner ap-
company. pearing on the face of this
Bond. !
Section S. DEFINITIONS, As used in this ordinance the
! following terms shall have the meanings set forth below, unless
the text hereof specifically indicates otherwise:
~ j
(a) The terms "City" and "issuer" shall mean the City of
Denton, in Denton Ccunty, Texas. J
(b) The term "City Council" or "Council" shall mean the
governing body of the City.
(c) The term "Bonds" shall mean collectively the initial i
Bond as defined and described in Section 2 of this ordinance
and all substitute bonds exchanged therefor, and all other
substitute bonds and replacement bonds, issued pursuant to and
as provided in this Ordinance.
(d) The term "Parity Bonds" shall mean collectively (i)
the outstanding City of Denton Utility System Refunding Revenue
Bonds, Series 1983, authorized by ordinance passed on March 10,
1983 (the "Series 1983 Bonds"), (ii) the outstanding City of
Denton Utility System Revenue Bonds, Series 1984, authorized by
ordinance passed on February 21, 1984 (the "Series 1984
Bonds"), (iii) the outstanding City of Denton Utility System
Revenue Bonds, Series 1984-A, authorized by ordinance passed on
{ 22
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September 25, 1984 (the Series 1984-A Ponds), (iv) the out-
standing CLty of Denton Utility Q otem Revenue Refunding Bonds,
Series 1987, authorized by ordinance passed on January 27, 1987
(the "Series 1987 Bond-,'-) , (v) the outstanding City of Dentor,
Utility System Rove nue Bonds, Series 1988, authorized by
ordinance pass:d on August 2, 1988 (the "Series 1988 Bonds"),
and (vi) the Bonds.
(e) The term "Additional Bonds" shall mean the additional
parity revenue bonds which the City reserves the right to issue
in the future, in accordance with Section 25 of this ordinance.
(f) The term "System" shall mean (1) the City's entire
existing waterworks and sewer system and the City's entire
existing electric light and power system, together with all
future extensions, improvements, enlargements, and additions '
thereto, and all replacements thereof, and (2) any other
related facilities, all or any part of the revenues or income
from which do, in the future, at the option of the City, and in
accordance with law, become "Pledged Revenues" as hereinafter
defined; provided that, notwithstanding the foregoing, and to
the ex'-snt now or hereafter authorized or permitted by law, the
term System shall not mean any water, sewer, electric, or other
t facilities of any Y.ini which are declared not to be a part of
the Systen, and 14hich are acquired or constructed by the city
! with the proceeds from the issuance of "Special Facilities
i Bonds", which are hereby defined as being special revenue
obligations of the city which are not payable from or secured
by any Pledged Revenues, but which are secured by and payable
from liens on and pledges of any other revenues, sources, or ,
payments, including, but not limited to, special contract
revenues or payments received from any other legal entity in
connection with such facilities= and such revenues, sources, or
payments shall not be considered as or constitute Gross Rev-
I enuej of the System, unless and to the extent otherwise pro-
vided in the ordinance or ordinances authorizing the issuance +
of such "Special Facilities Bonds".
(g) The terms "Gross Revenues of the System" and "Gross
Revenues" shall mean all revenues and income of every nature
derived or received by the City from the operation and owner-
ship of the System, including the interest income from the
investment or deposit of money in any Fund created by this
ordinance.
(h) The terms "Net Revenues of the System", and "Net
Revenues" shall mean all Gross Revenues after deducting there-
from an amount equal to the current expenses of operation and
4 maintenance of the System, including all salaries, labor,
materials, repairs, and extensions necessary to render
1
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efficient servica, provided, however, that only such repz,irs
and extensiorz, as in the judgment of the City Council, reason-
ably and fairly exercised by the adoption of appropriate
resolutions, are necessary to keep the System in operation and
render adequate service to said City and the inhabitants
thereof, or such as might be necessary to meet some physical
Accident or condition which would otherwise impair the Bonds or
Additional Bonds, shall be deducted in determining "Net Reve-
nues". Payments required to be made by the city for water
supply or water facilities, sewer services or sewer facilities,
fuel supply, and for the purchase of electric power, which
payments under law constitute operation and maintenance expens-
es of any part of the system, shall constitute and be regarded
as expenses of operation and maintenance of the System under
this ordinance. Depreciation and amortization shall not
constitute or be regarded as expenses of operation and mainte-
nance of the System.
(i) The term "Pledged Revenues" shall mean
(1) the Net Revenues, plus
(2) any additional revenues, income, or other
resources which are expected to be available to the
City on a regular periodic basis, including, without
j limitation, any grants, donations, or income received
or to be received from the United States Government, or
any other public or private source, whether pursuant
to an agreement or otherwise, which in the future may, at
the option of the City, be pledged to the payment of the
Parity Bonds or Additional Bonds.
{j} The term "year" or "fiscal year" shall mean the
fiscal year used by the City in connection with the operation
of the system,,
(k) The term "Government Obligations" shall mean direct
obligations of the United States of America, including obliga-
tions the principal of and interest on which are uncondition-
ally guaranteed by the United States of America, which may be
United States Treasury obligations such as its State and Local
Government Series, and which may be in book-entry form.
Section 9. PLEDGE. (a) The Bonds are "Additional Bonds"
as permitted by Sections 24 and 25 of the ordinance passed on
March 10, 1983, authorizing the SeO.es 1983 Bonds, and it is
hereby determined, declared, and resolved that all of the
M J~ Parity Bonds (including the Bonds) are secured and payable
j equally and ratably on a parity, and that Sections 8 througt.28,
of this Ordinance are supplemental to and cumulative of
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Sections 7 through 27 of the aforesaid ordinance passed on
March 10, 1983, with Sections 8 through 28 of this Ordinance
being applicable to all of the Parity Bonds.
(b) The Parity Bonds and any Additional Bonds, and the
interest thereon, including any interest coupons appertaining
thereto, are and shall be secured by and payable from a first
lien on and pledge of the Pledged Revenues, and the Pledged
Revenueu are further pled4ed to the establishment and mainte-
nance of the Funds created by this ordinance, and any Funds
created by any ordinance authorizing the issuance of any
Additional Bonds. The Parity Bonds and any Additional Bonds
ara not and will not be secured by or payable from a mortgage
or deed of trust on any real, personal, or mixed properties
constituting the System. ,
Section 10. SYSTEM FUND. There heretofore has been and
is hereby created and there shall be established and maintained
on the books of the City, and accounted for separate and apart
from all other funds of the City, a special fund to be entitled
the "City of Denton Utility System Fund" (the "System Fund").
All Gross Revenues shall be credited to the System Fund immedi-
ately upon receipt, unless otherwise provided in this ordi-
nance. All current expenses of operation and maintenance of j
the System shall be paid from such Gross Revenues credited to
the System Fund as a first charge against same. Before making
any deposits hereinafter required to be made from the system
Fund, the City shall retain in the System Fund at all times an
amount at least equal to one-sixth of the amount budgeted for
the then current fiscal year for the current operation and
maintenance expenses of the System.
Section 11. INTEREST AND SINNING FUND. For the sole
purpose of paying the principal of and interest on all Parity
Bonds snd Additional Bonds, there heretofore has been and is
hereby created and there shall be Patablished and maintained on
the books of the City, and accounted for separate and apart
from all otter funds of the City, a separate fund to be en-
titled the "City of Denton Utility system Revenue Bonds Inter-
est and Sinking Find" (the "Interest and Sinking Fund").
Section 12. RESERVE FUND. There heretofore has been, and
is hereby, created, and there shall be established and main-
tained initially at liCNB Texas National Bank, Fort Worth,
Texas, and thereafter, at the option of the City, established
and maintained at any time at any national bank having a
capital and surplus in excess of $25,000,000, a separate fund
to be entitled the "City of Denton Utility System Bonds and
Additional Bonds Reserve Fund" (the "Reserve Fund"). The
Reserve Fund shall be used to pay the principal of and interest
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on any Parity Bonds Interest Additional Fund available efor t such
the amounts ose, and may be used for
payment are insufficient for of any Parity Bonds or
the purpose of finally
Additional Bonds.
Section 13. EXTENSION AND IMPROVF~dENT FUND. There
heretofore has been and is hereby created and there shall be
established and maintained on the books of the City, and
accounted for separate and apart from all other fofd Ds of entonhe
cit , a separate fund to be entitled the "City
Utility System Extension a ThelExtensiontandni1mprovementt Fundn
and Improvement Fund"). purpose paying the costs of improve-
additions, replacements, or
meshall ets, be enla used rgeme for nts, the extensions,
other capital expenditures related to the System, or for paying
available,
the costs of unexpected or extrastemn,,ry sate pairs or
stem for meats of the Sunexpected which cextraordinary expenses of operation
or for paying
I and maintenance of the System fotheYilawfultpurposeg are not
otherwise available, or for any
Section 14. EMERGENCY FUND. There is hereby created and
there shall be established and maintained on tho books of the
City, and accounted for separate and apart from all other The funds
of Denton
M of the City, a separate fund to be ent tied the 11C Fund
Utility System Emergency Fund" of paying unex-
pected Fund shall be used for the purpose
or extraordinary expenses of repair, replacement,
3 operation, and maintenance of the System for which neither
System funds nor the Theraagn depositedninothenEmergency ment
Fund are available.
simultaneously with the delivery of the Series 1983 Bonds to
the initial purchasers thereof from lawfully available funds of
the City the amount of $2 Fund shalll bei vestm ransferred t rotor the
income from the Emergency
system Fund as received.
Section 15. DEPOSITS OF PLEDGED te REVENUES
the Inpledgedand
Revenues shall be credited to or this ordinance
Sinking Fund, the Reserve Fund, the he Extension and Improvement
Fund, and other funds when and as required by
and any ordinance authorizing the issuance of Additional Bonds.
Section 16. INVESTMENTS. Money ordinance Fund stablished
pursuant to this Ordinance or any the option of the City,
issuance of Additional Bonds, may, at
be placed in time deposits or e certifteficates
described osor becur~
ve obligations of the type
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vsted in Government obligations (as defined in Section 0
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hereof) or obligations guaranteed or insured by the United
States of America, which, in the opinion of the Attorney
General of the United States, are backed by its full faith and
credit or represent its general obligations, or invested in
obligations of instrumentalities of the United States of
America, including, but not limited to, evidences of indebted-
ness issued, insured, or guaranteed by such governmental
agencies as the Federal Land Banks, Federal Intermediate Credit
Postal Govern-
States Banks,
Banks,
Banks National o Cooperatives,
Association,,lUnHome ited Loan
ment
Service, Farmers Home Administration, Federal :come Loan Mort-
gage Association, Small Business Administration, Federal
Housing Association, or Participation Certificates in the
such idepos n then
aFederal Assets
investments Financing b made provided that
opinion of the City, pennit the money required to be expended F
from any Fund to be available at the proper time or times as
expected to be needed. Such investments (except United States
Treasury Obligations--State and Local Government Series invest-
ments held in book entry form, which shall at all times be
valued at cost) shall be valued in terms of current market
value as of the last day of each fiscal year. Unless otherwise
set forth herein, all interest and income derived from such
deposits and investments immediately shall be credited to, and
any losses debited to, the Fund from which the deposit or
f investment wav made, and surpluses in any Fund shall or may be
disposed of as hereinafter provided. Such investments shall be
sold promptly when necessary to prevent any default ir, con-
nection with the Parity Bonds or Additional Bonds consistent
I. with the ordinances, respectively, authorizing their issuance.
Section 17. FUNDS SECURED. That money In all Funds
created by this ordinance, to the extent not invested, shall be
secured in the manner prescribed by law.
Section 18. PRIORITY OF DEPOSITS AND PAYMENTS FROM SYSTEM
FUND. 'That the City shall make the deposits and payments from
Pledged Revenues in the System Fund when and as required by
this Ordinance and any ordinance authorizing any Additional
following deposits shall be r spectively manner
and d with n the such
First, to the Interest and Sinking Fund, when and in
the amounts required by this ordinance and
any ordinance authorizing any Additional Bondst
Second, to the Reserve Fund, when and in the amounts
required by this ordinance and any ordinance
authorizing any Additional Bondst and
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Third, to the Extension and Improvement Fund, when
and as required by Section 21 of this Ordinance.
Section 19. INTEREST AND SINKING FUND REQUIREMENTS. The
City shall cause to be deposited to the credit of the Interest
and Sinking Fund the accrued interest and any premium received
from the sale of the initial Bond, and on or before the 25th
day of each month, the City shall cause to be deposited to the
credit of the Interest and Sinking Fund, in approximately equal
raonthly payments, amounts sufficient, together with any other
funds on hand therein, to pay all of the interest or principal
and interest coming due, including the principal amount of any
Parity Bonds required to be redeemed prior to maturity pursuant
to any mandatory redemption requirements, on the Parity Bonds
and any Additional Bonds on the next succeeding interest
payment date. Any moneys so deposited in the interest and
Sinking Fund witY. respect to a mandatory redemption require-
ment, together with other lawfully available funds of the City,
may be used by the City, to purchase, in advance of a mandatory
redemption date and at a price not exceeding the principal
amount thereof plus accrued interest thereon to the date of
purchase, Parity Bonds which would be subject to being chosen
for mandatory redemption on such mandatory redemption date.
The Paying Agent shall cancel any Parity Bonds co purchased.
Section 20. RESERVE FUND REQUIREMENTS. There is now on
hand in the Reserve Fund an amount of money and Government
obligations which is in excess of $3,000,000 and which is at
least equal to the average annual principal and interest
requirements of the Series 1983 Bonds, the Series 1984 Bonds,
the Series 1984-A Bonds, the Series Ifa8'? Bonds, and the Series
1988 Bonds (the "Required Reserve Amovntl'); except and provided
that following the issuance and delivery of the Initial Bond
(Series 1989) the Required Reserve Amount shall become and be
an amount of money and investments equal to the average annual
principal and interest requirements of all outstanding Parity
Bonds and Additional Bonds; provided further, however, that the
Required Reserve Amount shall never be less than $3,000,000 if
the maximum annual principal and interest requirements on all
cutstanding Parity Bonds and Additional Bonds exceeds
$3,000,000. Immediately after the issuance and delivery of the
initial Bond there shall be deposited to the credit of the
Reserve Fund, from the proceeds of the sale of the Initial
Band, money sufficient to cause the Reserve Fund to contain an
aggregate amount of money and investments equal to the average
annual principal and interest requirements of all then out-
standing Parity Bonds (the then Required Reserve Amount).
After the delivery of any future Additional Bonds the City
shall cause the Reserve Fund to be increased, if and to the
extent necessary, so that such Fund will contain an amount of
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money and investments equal to the Required Reserve Amount.
:,icy increase in the Required Reserve Amount may be funded from
Pledged Revenues, or from proceeds from the sale of any Addi-
tional Bonds, or any other available source or combination of
sources. All or any part of the Required Reserve Amount not
funded initially and immediately after the delivery of any
installment or issue of Additional Bonds shall be funded,
within not more than five years from the date of such delivery,
by deposits of Pledged Revenues in approximately equal monthly
installments on or before the 25th day of each month. Princi-
pal amounts of the Parity Bonds and any Additional Bonds which
must be redeemed pursuant to any applicable mandatory redemp-
tion requirements shall be deemed to be maturing amounts of
principal for the purpose of calculating principal and interest
requirements on such bonds. When and so long as the amount in
the Reserve Fund is not less than the Required Reserve Amount
no deposits shall be made to the credit of the Reserve Fund;
but when and if the Reserve Fund at any time contains less than
the Required Reserve Amount, then the City shall transfer from
Pledged Revenues in the System Fund, and deposit to the credit
of the Reserve Fund, monthly on or before the 25th day of each
month, a sum equal to 1/60th of the Required Reserve Amount,
until the Reserve Fund is restored to the Required Reserve
Amount. The City specifically covenants that when and so long
as the Reserve Fund contains the Required Reserve Amount, the
City shall cause all amounts in excess of the Required Reserve
Amount to be deposited to the credit of the Interest and
Sinking Fund.
Section 21. EXTENSION AND IMPROVEMENT FUND REQUIREMENTS.
During each year, subject and subordinate to making the re-
quired deposits to the credit of the interest and Sinking Fund
and the Reserve Fund, the. City shall be required to deposit to
the credit of the Extension and Improvement Fund, from Pledged
the
Revenues
hereby
"Adjusted iGross Revenues Fof then Syamount stem", ewhichtterm is of
defined to mean the followings
the Gross Revenues of the System for such year after I
deducting from such Gross Revenues an amount equal to I
the current expenses of operation and maintenance of
the System for such year which are directly attribut-
able to (i) all fuel cots elated/to he production
of electric <nergy by s City I
chase of electric energy by the City.
Additional excess Pledged %)venues may, at the option of the
I City Council, be deposited to the credit of the improvement
interest such addi--
Fund as permitted a b required. 2 All (b) hereof,
investment but no
tional d income
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from the Extension and Improvement Fund shall be retained in
and remain a part of such Fund.
Section 22. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a)
If on any occasion there shall not be sufficient Pledged
Revenues to make the required deposits into the Interest and
Sinking Fund or the Reserve Fund, such deficiency shall be made
up as soon as possible from the next available Pledged 14ev-
enues.
(b) Subject to making the required deposits to the credit
of the various Funds when and as required by this ordinance or
any ordinance authorizing the issuance of Additional Bonds, any
surplus Pledged Revenues may be used by the City for any lawful
purpose.
I~ Section 23. PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS.
On or before December 1, 1989, and semiannually on or before
4 each June 1 and December 1 thereafter while any of the Parity
Bonds or Additional Bonds are outstanding and unpaid the City
shall make available to the Paying Agents therefor, out of the
Interest and Sinking Fund, or if necessary, out of the Reserve
Fund, money sufficient to pay, on each of such dates, the
principal of and interest on the Parity Bonds and Additional
Bonds as the same matures and comes due, or to redeem the
Parity Bonds or Additional Bonds prior to maturity, either upon
mandatory redemption or at the option of the City. At the
direction of the City the Paying Agents shall either deliver
paid Parity Bonds and Additional Bonds, and any interest
coupons appertaining thereto, to the City or destroy all paid
Parity Bonds and Additional Bonds, and any coupons appertaining
thereto, and furnish the City with an appropriate certificate
of cancellation or destruction.
Section 24. FINAL DEPOSITS. (a) Any Parity Bond or
Additional Bond shall be deemed to be paid, retired, and no
longer outstanding within the meaning of this Ordinance when
payment of the principal of, redemption premium, if any, on
such Parity Bond or Additional Bond, plus interest thereon to
the due date'thersof (whether such due date be by reason of
maturity, upon redemption, or otherwise) either (i) shall have
been made or caused to be made in accordance with the terms
thereof (including the giving of any required notice of redemp-
tion or provision for the proper giving of such notice having
been made), or (ii) shall have been provided by irrevocably
depositing with or making available to a Paying Agent therefor,
in trust and irrevocably set aside exclusively for such pay-
meet, (1) money sufficient to make such payment or (2) Govern-
ment obligations which mature as to principal and interest in
such amounts and at such times as will insure the availability,
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without reinvestment, of sufficient iaoney to make such payment,
and all necessary and proper fees, compensation, and expenses
of such Paying Agent pertaining to the Parity Bonds and Addi-
tional Bonds with respect to which such deposit is made shall
have been paid or the payment thereof provided for to the
satisfaction of such paying agent. At such time as a Bond or
Additional Bond shall be deemeu to be paid hereunder, as
aforesaid, it shall no longer be secured by or entitled to the
benefits of this ordinance or a lien on and pledge of the
Pledged Revenues, and shall be entitled to payment solely from
such money or Government obligations. Any
mon the directs on of ethe sCitydeposited
also e be with a
Invesedi in Gvernmentat
Obligations, maturing in the amounts and times as hereinbefore {
set forth, and all income from all Government obligations in
the hands of the paying agent pursuant to this Section which is
not required for the payment of the Parity Binds and Additional
Bonds, the redemption premium, if any, and interest thereon,
with respect to which such money has been so deposited, shall
be turned over to the City or deposited as directed by the
city.
Section 25. ADDITIONAL BONDS.
the right and (a) The City shall have from tme to one or more series rortisany sues imto aauthorize i issue, and deliver
and in
additional parity revenue bonds (herein called "Additional
Bonds"~
in accordance with law, in any amounts, for any lawful
purpose, including the refunding of any Parity Bonds or Addi-
tional Bonds, or other obligations. Such Additional Bonds, if
and when authorized, issued, and delivered in accordance with
this ordinance, shall be payable from and secured by an irrev-
ocable first lien on and pledge of the Pledged Revenues,
equally and ratably on a parity in all respects with the Parity
Bonds and any other outstanding Additional Bonds.
(b) The principal of all Additional Bonds must be sched-
uled to be paid or mature on December 1 of the years in which
such principal is scheduled to be paid or mature.
Section 26. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS.
Additional Bonds shall be issued only in accordance with this
ordinance, and no installment, Series, or issue of Additional
Bonds shall be issued or delivered unless:
(a) The Mayor of the City and the City Secretary sign a
written certificate to the effect that the City is not in
default as to any covenant, condition, or obligation in connec-
tion with all then outstanding Parity Bonds and Additional
Bonds, and the ordinances authorizing same, and that the
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the srve Fund each contains
Interest and SinkingFund to and therein.
the amount then required
(b) An independent certified public accountant, or in-
dependent firm of certified public accountants, acting by and
through a certified public accountant, signs a written certifi-
cate to the effect that, in his o on any pinion, come ueither twelve conse
the next preceding fiscal yeTr,
calendar month period out of the 18-month period immediately
preceding the month in which the ordinance authorizing the
issuance of the then proposed Additio?alt and saisapassed, the
Pledged Revenues were at least (i)
t
(11) the averae annual an amountn equal to the principal and sinters and
requirements during the fiscal year during which such require-
ments are scheduled to be the greatest, of all Parity Bonds and
Additional Bonds which are scheduled
ddto be ional tstan ingitftesr
the delivery of the then proposed
g the (b) amount
if
specifically provided, however that in of cal ulatin i
I of Pledged Revenues for the purposes
there has been any increase in the rates or charges for ser-but
was
ich
not vices the System which is artnof thefentire period for whi h
f in effec ect during all or any p referred
the as Pledged Revenues are the as the '$entre period") mire Then thelcertifiedepublic raccount-
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, or in lieu of the certified public accountant a firm of
~
consulting engineers, shall determine and certify the amounteof
Pledged Revenues as being the total of (ii)) actual the g
a sum equal to the
Revenues for the entire period, plus
aggregate amount by which the actual billings to customers of
the System during the entire period would have been increased
if such increased rates or charges had been in effect during
the entire period. nce (c) Provision shall be made
the Reserveorundato thetRequired {
their issuance for increasing
Reserve Amount as required by Section 20 hereof.
(d) All calculations of average ainual prti ip l anthe
interest requirements of any bonds made with
issuance of any then proposed Additional Bonds shall be made as
of the date of such Additional Bondsi and also ilnr making
be
calculations efor such urpose, and for an
amounts of any bo dsrwhich mue under
this ordinance,, p maturity licable mandatory
It o rements shall rbea deened t be~ ma'gring amounts
redemption redeemed prior
requi
of principal of such bonds.
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' Section 27. GENERAL COVENANTS. The City further cove-
nants and agrees that in accordance with and to the extent
required or permitted by law
(a) Performance. It will faithfully perform at all times
any and all conts# undertakings, stipulations, and provi-ach ingntheo issuance of hAdditionalcBonds, and in deachcandueveryZ
Patity Bond and Additional Bond; that it will promptly pay or
cause to be paid the principal of and interest on every Parity
Bond and Additional Bond, on the dates and in the places and
atand Parity and din the
manner prescribed in such ordinances
Additional Bonds; and that it will, he times
manner equired to prescribed, deposit or cause to be Fund amounts and
r
the Reserve Fund; and any holder of the Parity Bonds or Addi-
ticnal Bonds may require the city, its officials, and em-
ployees, to carry out, respect, or enforce the covenants and
authorizing the
I obligations of this Ordinance, or anylordinanc
and equitable means,
issuance of Additional Bbutowithout limitation, the use and
including specifically, court of competent
filing of mandamus proceedings, its officials, and employees.
~ jurisdiction, against the City, ,
L) C1tv'~ 1 u i The city is a duly created
xist I
authorizednunderetheilaws city the State of Texasa to create and
issue the Parity Bonds and Additional Bonds; that all action on
E its part for the creation and issuance of the said obligations
` has been or will be duly and effectively taken, and that said
obligations in the hands of the holders and owners thereof are
and valid and en
Citywill acco be rdance with theireterFSSpQCial obligations of the
l (c) T Ug. The City has or will obtain lawful title to
I the lands, buildings, structures, and facilities constituting the title the System, that it warrants that it will tructure fen a t facilities,
all the aforesaid lands, buildings, ss,
and every part thereof, for the benefit of the holdaiistande
owners of the Parity Bonds and Additional Bondsj ttha it is
claims and demands of all persons whomsoever,
lawfully qualified to pledge the Pledged Revenues to the
payment of the Parity Bonds and Additional Bonds in the manner
prescribed herein, and has lawfully exercised such rights.
(d) Liens. The City will from time to time and before
the same become delinquent pay and discharge all taxes, assess-
ments, and governmental charges, if any, which shall be law-
fully imposed upon it, or the System, that it will pay all
lawful claims for rents, royalties, labor, materials, and
33
supplies which if unpaid might by law become a lien or charge
thereon, the lien of which would be prior to or interfere with
the liens hereof, so that the priority of the liens granted
hereunder shall be fully preserved in the manner provided
herein, and that it will not create or suffer to be created any
mechanic's, laborer's, materialman's, or other lien or charge
which .night or could be prior to the liens hereof, or do or
suffer any matter or thing whereby the liens hereof might or
could be impairedr provided, however, that no such tax, assess-
ment, or charge, and that no such claims which might be used as
the basis of a mechanic's, laborer's, materialman's, or other
lien or charge, shall be required to be paid so long vs the
validity of the same shall be contested in good faith by the
City.
i
(e) Qperation of ~SYst~mr Na Free service. While the
E Parity Bonds or any Additional Bonds are outstanding and unpaid
the City shall continuously and efficiently operate the System,
and shall maintain the System in good condition, repair, and
working order, all at reasonable cost. No free service of the
System shall be allowed, and should the City or any of its
agencies, instrumentalities, lessors, or concessionaires make
use of the services and facilities of the System, payment
monthly of the standard retail price of the services provided
shall be made by the City or any of its agencies, instrumen-
talities, lessors, or concessionaires out of funds from sources
surplus
Section unless 22(b) made from
other than revenues permitted the by System
hereof.
Pledged Revenues
(t) Further Fncu bran e. While the Parity Bonds of any
Additional Bonds are outstanding and unpaid, the City shall not
additionally encumber the Pledged Revenues in any manner,
except as petnnitted in this ordinance in connection with
Additional Bonds, unless said encumbrance is made ju,Aor and
subordinate in all respects to the liens, pledges, covenants,
and agreements of this ordinance and any ordinance authorizing
the issuance of Additional Bonds; but the right of the City to
issue revenue bonds payable from a subordinate lien on surplus
Pledged Revenues is specifically recognized and retained, as
permitted under Section 22(b) hereof).
(g) sale or Disoasal cf Proot+x~.y. While the Parity Bonds
or any Additional Bonds are outstanding and unpaid, the City
shall not sell, convey, mortgage, encumber, lease, or in any
manner transfer title to, or dedicate to other use, or other-
wise dispose of, the System, or any significant or substantial
part thereof; provided that whenever the City deems it neces-
sary to dispose of any property, machinery, fixtures, or
equipment, or dedicate such property to other use, it may do so
either when it has made arrangements to replace the same or
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provide substitutes therefor, or it is determined by resolution
of the City Council that no such replacement or substitute is
necessary.
(h) u,s4ranc€, (1) The City shall cause to be insured
such parts of the system as would usually be insured by corpor-
ations
company or tcompanies, againstirisks, accidents,s or casualties
against which and to the extent insurance is usually carried by
corporations operating like properties, including, to the
extent reasonably obtainable, fire and extended coverage
insurance, insurance against damage by floods, and use and
occupancy insurance. Public liability and property damage
insurance also shall be carried unless the City Attorney gives {
a written opinion to the effect that the City is not liable for
- -1 claims which would be protected by such insurance. All insur-
ance premiums shall be paid as an expense of operation of the
Syystem. At any time while any contractor engaged in construc-
tion work shall be fully responsiblo therefor, the City shall
not be required to carry insurance on the work being con-
structed if the contractor is required to carry appropriate
insurance. All such policies shall be open to the inspection
of the Bondholders and their representatives at all reasonable
times. Upon the happening of any loss or damage covered by
insurance from one or more of said causes, the City shall make
I due proof of loss and shall do all things necessary or desir-
able to cause the insuring companies to make payment in full
directly to the City. The proceeds of insurance covering such `
E property, together with any other funds necessary and available
for such purpose, shall be used forthwith by the City for
repairing the property damaged or replacing the property
destroyed provided, however, that if said insurance proceeds
and other funds are insufficitnt for such purpose, then said
insurance proceeds pertaining to the system shall be deposited
in a special and separate trust fund, at an official depository
of the City, to be designated the Insurance Account. The
Insurance Account shall be held until such time as other funds
become available which, together with the Insurance Account,
will be sufficient to make the repairs or replacements origin-
ally required.
(2) The annual audit hereinafter required may contain a
section commenting on whether or not the City has complied with
the requirements of this Section with respect to the mainte-
nance of insurance, and shall state whether or not all insur-
ance premiums upon the insurance policies to which reference is
1 made have been paid.
(i) dIItl+l~l~ll and Rat~45[~f1~1L The City shall
prepare, prior to the beginning of each fiscal year, an annual
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1 budget, in accordance with law, reflecting an estimate of cash
` receipts and disbursements for the, ensuing fiscal year in
sufficient detail to indicate the probable Gross Revenues and
Pledged Revenues for such fiscal year, The City shall fix,
M establish, maintain, and collect, such rates, charg,-s, and fees
for the use and availability of the System at all times as are
necessary (1) to produce Gross Revenues sufficient, together
with any other Pledged Revenues, to pay all current operation
and maintenance expenses of the System, and (2) to produce an
amount of Pledged Revenues during each fiscal year at least
equal to the greater of 1.25 times the average annual principal
and interest requirements of all then outstanding Parity Bonds
and Additional Bonds or 1.25 times the succeeding fiscal year's
principal and interest requirements of all then outstanding
Parity Bonds and Additional Bonds.
(j) Records. The city shall keep proper books of record
and account in which full, true, proper, and correct entries
j will be made of all dealings, activities, and transactions
relating to the System, the Pledged Revenues, and the Funds
created pursuant to this ordinance, and all books, documents,
and vouchers relating thereto shall at all reasonable times be 1
made available for inspection upon request of any Bondholder or I
citizen of the City. To the extent consistent with the provi-
sions of this Ordinance, the City shall keep its books and
records in a manner conforming to standard accounting practices 1
as usually would be followed by private corporations owning and y{
operating a similar System, with appropriate recognition being
given to essential differences between municipal and corporate
accounting practices.
(k) aydits. After the close of each fiscal year while
any of the Parity Bonds or any Additional Bonds are outstand-
ing, an audit will be made of the books and accounts relating
to the System and the Pledged Revenues by an independent I
certified public accountant or an independent firm of certified
public accountants. As soon as practicable after the close of
each such year, and when said audit has been completed and made
available to,the City, a copy of such audit for the preceding
year shall be mailed to the Municipal Advisory Council of
Texas, to each paying agent for any bonds payable from Pledged
Revenues, and to any Bondholders who shall so request in
writing. The annual audit reports shall be open to the inspec-
tion of the Bondholders and their agents and representatives at
all reasonable times.
It will comply with all of
the terms and conditions of any and all franchises, permits,
and authorizations applicable to or necussary with respect to
the System, and which have been obtained from any governmental
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agency; and the City has or willobtain an authorization, in fulloforce
and effect all franchises, permits, requirements applicable to or necessary with respect to the
acquisition, construction, equipment, operation, and mainte-
nance of the System.
(m) ~S .t~RLI• it will not operatteo orttgrant
any
franchise or, to the extent it legally may, permit acquisi-
tion construction, or operation of, any facilities which would
be in competition with the System, and to the extent that it
legally may, the City will prohibit any such competing facili-
ties.
(n) S9 A3LbLt_rAU. The City covenants to and with the
purchasers of the Parity Bonds and any Additional. Bonds that no r
use will be made of the proceeds of any of such bonds at any
time throughout the term of any of such bonds which, if such
use had been reasonably expected on the date of delivery of any
of such bonds to and payment therefor by the purchasers, would
have caused any of such bonds to be arbitrage bonds within the
meaning of Section 103(c) of the internal Revenue Code of 1954,
as amended, or the Intarnal Revenue Code of 1986, or any
regulations or rulings pertaining thereto; and by this covenant
i the City is obligated to comply with the requirements of the
aforesaid Codes and all applicable and pertinent Department of
the Treasury regulations relating to arbitrage bonds. The City
further covenants that the proceeds of all such bonds will not
otherwise be used directly or indirectly so as to cause all or
an part of such bonds to be or become arbitrage bonds within
the meaning of the aforesaid Codes, or any regulations pertain-
ing thereto.
Section 28. AMENDMENT OF ORDINANCE, (a) The holders or
owners of Parity Bonds and Additional Bonds aggregating in
principal amount 51% of the aggregate principal amount of then
outstanding Parity Bonds and Additional l Bonds shall toa have the
right from time to time to approve this
Ordinance which may be deemed necessary or desirable by the
terms
City, provided, however, that nothing herein contained shall rm or co diti bo'construed to srOrdinancermor amendment of
Addi and
tional Bonds so as tot
(1) Make any change in the maturity of the out-
standing Parity Bonds or Additional Bondst
t (2) Reduce the rate of interest borne by any of
the outstanding Parity Bonds or Additional Bonds;
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(3) Reduce the amount of the principal payable
on the outstanding Parity Bonds or Additional Bonds;
(4) Modify the terms of payment of principal
of or interest on the outstanding Parity Bonds or Addi-
tional Bonds, or impose any conditions with respect to
C such payment;
(5) Affect the rights of the holders or owners of
less than all of the Parity Bonds and Additional Bonds
then outstanding;
(6) Change the minimum percentage of the prin-
~1 cipal amount of Parity Bonds and Additional Bonds neces-
sary for consent to such amendment.
(b) If at any time the City shall desire to amend the
ordinance under this Section, the City shall cause notice of
the proposed amendment to be published in a financial publica-
tion of general circulation in The City of New York, New York,
once during each calendar week for at least two successive
calendar weeks. such notice shall briefly set forth the nature
of the proposed amendment and shall state that a copy thereof
is on file at the principal office of the Paying Agents for
inspection by all holders or owners of Parity Bonds and Addi-
tional Bonds. Such publication is not required, however, if
notice in writing is given to each holder or owner of Parity
Bonds and Additional 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 City shall
or
receive at lest Instrument 51% or in instruments aggregate p incipal amont holders
of f all
owners of
Parity Bonds and Additional Bonds then outstanding, which
instrument describedinrsaid instruments s and shall refer specifically consent to and
approve such amendment in substantially the form of the copy
thereof on file with the Paying Agents, the City Council may
pass the amendatory ordinance in substantially the same form.
(d) Upon the passage of any amendatory ordinance pursuant
to the provisions of this Section, this Ordinance shall be
deemed to be amended in accordance with such amendatory ordi-
nance, and the respective rights, duties, and obligations under
this Ordinance of the City, and all the holders or owners of
then outstanding Parity Bonds and Additional Bonds and all
future Parity Bonds and Additional Bonds shall thereafter be
determined, exercised, and enforced hereunder, subject in all
respects to such amendments.
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(e) Any consent given by the holder or owner of a Parity
Bond or Additional Bond pursuant to the provisions of this
Section shall be irrevocable for a period of six months from
the date of the first publication of the notice provided for in
this Section, and shall be conclusive and binding upon all
future holders or owners of the same Parity Bond or Additional
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 or owner who gave such consent, or by
a successor in title, by filing notice thereof with the paying
agents and the city, but such revocation shall not be effective
if the holders or owners of 514 in aggregate principal amount
of the then outstanding Parity Bonds and Additional 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 Parity Bonds or Additional Bonds which are in
hearer, coupon form, by any bondholder and the amount and
numbers of such bearer Parity Bonds or Additional Bonds and the
i date of their holding same, may be proved by the affidavit of
the person claiming to be such holder or owner, or by a certi-
ficate executed by any trust company, bank, banker, or any
other depository wherever situated showing that at the date
therein mentioned such person had on deposit with such trust ,
company, bank, banker, or other depository, the Parity Bonds
and Additional Bonds described in such certificate. The City
may conclusively assume that such ownership continues until
written notice to the contrary is served upon the City. The
ownership of all registered Parity Bonds and Additional Bonds
shall be determined from the registration books kept by the
registrar therefor.
Section 29. DAMAGED, MUTILATED, LAST, STOLEN, OR DE-
STROYED BONDS. (a) 812JAggagrit Bcnds. In the event any
outstanding Bond is damaged, mutilated, lost, stolen, or
destroyed, the Paying Agent/Registrar shall cause to be print-
ed, executed, and delivered, a new bond of tl.* same principal
amount, maturity, and interest rate, as the damaged, mutilated,
lost, stolen, or destroyed Bond, in replacement for such Bond
in the manner hereinafter provided.
(b) AU21ication for Replacement 0.011~11. Application for
replacement of damaged, mutilated, lost, stolen, or destroyed
Bonds shall be made by the registered owner thereof to the
Paying Agent/Registrar. In every case of loss, theft, or
destruction of a Bond, the registered owner applying for a
replacement bond shall furnish to the Issuer and to the Paying
f Agent/Registrar such security or indemnity as may be recp1ired
{k by them to save each of them harmless from any loss or damage
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with respect thereto. Also, in every case of loss, theft, or
destruction of a Bond, the registered owner shall furnish to
the Issuer and to the Paying Agent/Registrar evidence to their
satisfaction of the loss, theft, or destruction of such Bond,
as the case may be. in every case of damage or mutilation of a
Bond, the registered owner shall surrender to the Paying
Agent/Registrar for cancellation the Bond so damaged or muti-
lated.
(c) No Dej~ult Occurred. Notwithstanding the foregoing
provisions of this Section, in the event any such Bond shall
have matured, and no default has occurred which is then con-
tinuing in the payment of the principal of, redemption premium,
if any, or interest on the Bond, the Issuer may authorize the
payment of the same (without surrender thereof except in the
case of a damaged or mutilated Bond) instead of issuing a
i replacement Bond, provided security or indemnity is furnished
an above provided in this Section.
(d) Charge for Issuing ReplAgAMS11t. Bondi. • Prior to the
issuance of any replacement bond, the Pay'ng Agent/Registrar
shall charge the registered owner of such Bond with all legal,
printing, and other expenses in connection therewith. Every
replacement bond issued pursuant to the provisions of this
Section by virtue of the fact that any Bond is lost, stolen, or
destroyed shall constitute a contractual obligation of the
Issuer whether or not the lost, stolen, or destroyed Bond shall
be found at any time, or be enforceable by anyone, and shall be
r entitled to all the benefits of this Ordinance equally and
proportionately with any and all other Bonds duly issued under
this Ordinance.
(e) ImAr for_I$51IQ3 Eie_nlacemenG Bondi. In accordance
with Section 6 of Vernon's Ann. Tex. Civ. St. Art. 717k-6, this
Section of thin Ordinance shall constitute authority for the
issuance of any such replacement bond without necessity of
further action by the governing body of the Issuer or any other
body or person, and the duty of the replacement of such bonds
is hereby authorized and imposed upon the Paying Agent/Regis-
trar, and the Paying Agent/Registrar shall authenticate and
deliver such Bonds in the form and manner and with the effect,
as provided in Section 6(d) of this Ordinance for Bonds issued
f in conversion and exchange for other Bonds.
Section 30. COVENANTS REGARDING TAX-EXEMPTION. The
Issuer covenants to refrain from any action which would
adversely affect, and to take such action to ensure, the
treatment of the Bonds as obligations described in section 103
of the Code, the interest on which is not includable in the
"gross income" of the holder for purposes of federal income
taxation. In furtherance thereof, the Issuer covenants as
follows:
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(a) to take any action to assure that no more than
10 percent of the proceeds of the Bonds (less amounts
deposited to a reserve fund, if any) are used for any
private business use", as defined in section 14l(b)(6) of
the Code or, if more than 10 percent of the proceeds are
SosuerI with respect tto such whether
business received use, do not,
under the terms of this ordinance or any underlying
arrangement, directly or indirectly, secure or provide for
the payment of more than 10 percent of the debt service on
the Bonds, in contravention of section 141(b)(2) of the
Coder
(b) to take any action to assure that in the event
that the "private business use" described in subsection
(a) hereof exceeds 5 percent of the proceeds of the Bonds
(
less amounts deposited into a reserve fund, if any) then
the
busiamount in
use" which excess l.s f"related"t and not used
"dfor a isproportion-
ate", within the meaning of section 141(b)(3) of the Code,
to the governmental use; I
(c) to take any action to assure that no amount
which is greater than the lesser of $5,000,000, or 5
percent of the proceeds of the Bonds (less amounts depos-
ited into a reserve fund, if any) is directly or indirect-
ly used to finance loans to persons, other than state or
local governmental units, in contravention of section
141(0) of tha Codei
(d) to refrain from taking any action which would
activityeboresult in nds" withinethe nmeaninggof rsectionsl4 1(b)sof
the Codet
(e) to refrain from taking any action that would J
result in the Bonds being "federally guaranteed" within
the meaning of section 144(b) of the Code;
(f) to refrain from using any pro-
ceeds of the Bonds, directly or indrectly,~ to aoga uire or
to replace funds which were used, directly or indirectly,
to acquire investment. property (as defined in section
148(b)(2) of the Code) which produces a materially higher
yield over the tor of the Bonds, other than investment
property acquired with
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1 proceeds of the Bonds invested for a
( ) period of 3 years or less until
reasonable temporary purpose for which
such proceeds are needed for the the Bonds are issued,
service ) fund, within invested
meaning n of fsectiont mcjunts 1.103-13(b)(12) of the Treasury Regulations, and
(3) amounts deposited in any reasonably re-
quired reserve or replacement: V:nd to the extent such
amounts do not exceed 10 percent of the proceeds of
the Bonds;
(g) to otherwise restrict the use of the
ro eeds of the Bonds,s as
proceeds
' the Bonds or amounts treated as
may be necessary, so that the Bonds do not otherwise
contravene the requirements of section 148 of he Code
(relating to arbitrage) and, to the extent applicablel
of the Code (relating to advance
' section 149(d)
refundings);
east
(h) to pay to the United States of Amerlca the ldate
once during each five-year period (beginning on
of delivery of the Bonds) an amount that is at least equal
percent of the "Excess Earnings", within the meaning
to 90 Code and to pay to the United
of section 148(f) of the s after the Bonds
amount then
percent of days
states of America, not
have been paid in full, later
required to be paid as a result of Excess Earnings under
4 section 148(!) of the code; and
(i) to maintain such records as will enable the
issuer to fulfill its responsibilities under this section
o !or
-
f
followings the finale p achsnt recordsprinoi
and section 14 of the
at least six y
pal and interest on the Bonds.
It is the understanding of the issuer that the covenants
e
promulgpled ated compliance y the with U.S.
rulingsassure
contained herein are intended
Code and any regulations pursuant thereto. In the event that
regulDepartmentations of or r the Treaingssury are hereafter promulgated which modify,
fileble to the Bonds,
or expand provisions of the Code, as applicable
any covenant
the issuer will not be required to comply will not
contained herein to the extent thiZedcbondicounsel, oomply,
j in the opinion of nationally-recog
! adversely affect the exemption from federal income taxation of
rulings nare3hereafter pr omulgth
interest on the Bonds
of the COd' event that regulations under
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which impose additional requirements which are applicable to
the Bonds, the issuer agrees to comply with the additional
requirements to the extent necessary, in the opinion of
nationally-recognized bond counsel, to preserve the exemption
from federal income taxation of interest on the Bonds under j
se:tion 103 of the Code.
Section 31. INTEREST EARNINGS ON BOND PROCEEDS. Interest
earnings derived from the investment of proceeds from the sale
of the Initial Bond, other than proceeds deposited in the
Interest and Sinking Fund and the Reserve Fund, shall be used
along with other available proceeds for improving the Systems
provided that after completion of the improvements if any of
--1 such interest earnings remain on hand, such interest earnings
shall be deposited in the Interest and Sinking Fund. It is
j further provided, however, that any interest earnings on bond
proceeds which are required to be rebated to the United States
of America pursuant to the Covenants Regarding Tax-Exemption
herein so as to prevent the Bonds from being arbitrage bonds
shall be so rebated and not considered as interest earnings for
the purposes of this ordinance.
I
Section 32. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS;
BOND COUNSEL*S OPINION, CUSIP NUMBERS, AND INSURANCE. The
Mayor of the Issuer is hereby authorized to have control of the
initial Bond issued hereunder and all necessary records and
proceedings pertaining to the Initial Bond pending its delivery
and its investigation, examination, and approval by the Attor-
ney General of the State of Texas, and its registration by the
Upon
com State of
regiatrationoofPLhelInitialn Sond! said Comptrollerxol.Public
Accounts (or a deputy designated in writing to act for said
Comptroller) shall manually sign the Comptroller's Registration
Certificate on the initial Bond, and the seal of said Comptrol-
ler shall be impressed, or placed in facsimile, on the initial
Bond. The approving legal opinion of the IssuerOB Bond Counsel
and the assigned CUSIP numbers may, at the option of the
Issuer, be printed on the initial Bond or on any Bonds issued
and delivered in conversion of and exchange or replacement of
any Bond, but neither shall have any legal effect, and shall be
solely for the convenience and information of the registered
owners of the Bonds. If the purchaser of the initial Bond
exercises its option to obtain insurance on the Bonds, as
- 1 permitted in the Notice of Sale and Bidding Instructions and
Official Statement hereinafter described, the initial Bond and
j all other Bonds shall bear an appropriate legend concerning
insurance as provided by the insurer.
Section 33. SALE OF INITIAL BOND. The Initial Bond is
hereby sold and shall be delivered to
for cash for the par value thereof and
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accrued interest thereon to date of delivery, plus a premium of
It is hereby officially found, determined, and
declared that the Initial Bond has been sold at public sale to
the bidder offering the lowest interest czst, after receiving
sealed bids pursuant to an official Notice of Sale and Bidding
Instructions and official Statement dated October 10, 1989,
prepared and distributed in connection with the sale of the
Initial Bond. Said official Notice of Sale and Bidding In-
structions and Official Statement, and any addenda, supplement,
or amendment thereto have been and are hereby approved by the
Issuer, and their use in the offer and sale of the Bonds is
hereby approved. It is further officially found, determined,
and declared that the statements and representations contained
in said Official Notice of Sale and Official Statement are true
and correct in all material respects, to the best knowledge and
belief of the City Council.
--1 Section 34. FURTHER PROCEDURES. The Mayor of the Issuer,
the City Secretary Secretary of the Issuer, and all other
officers, employees, and agents of the Issuer, and each of
them, shall be and they are hereby expressly authorizea,
empowered, and directed from time to time and at any time to do
and perform all such acts and things and to execute, acknowl-
edge, and deliver in the name and under the corporate seal and
on behalf of the Issuer all such instruments, whether or not
herein mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Bond Ordinance, the
j Bonds, the sale of the Bonds, and the Notice of Sale and
Official Statements and the Director of Finance of the City
shall cause the expenses of issuance of the Bonds to be paid
from the proceeds of sale of the Initial Bond. In case any
E officer whose signature shall appear on any Bond shall cease to 1
be such officer before the delivery of such Bond, such signa-
ture shall nevertheless be valid and sufficient for all purpos-
es the same as if cuch officer had remained in office until
such delivery.
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1. v
CERTIFICATE FOR SALE, AND DELIVERY OF
SERIES 1989-A,
ORDINANCE AUTHORIZING THE ISSU OBLIGATION, AND PROCEDURES
CITY OF DENTON CERTIFICATES OF
AND APPROVING AND AUTHORIZING INSTRUMENTS
R£LATI G E 0
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON hereby certify
we, the undersigned officers of said City,
as follows:
Council of said City convened 1989,
The City
REGULAR MEETING ON THE 24TH DAY OF OCTOBER,
at the Municipal Building (City Hall), and the roll was called
of the duly constituted officers and members of said City
Councto-wit: Mayor
Secretary Ray Stephens, Jennifer K. Walters, City Linnie McAdams
BOb`GOrton Jim Alexander
kin, Hugh Ayer
Jane Hop
Randall Boyd except the following
persons were present, thus constituting a
and all Of said p the following was
absentees! g other business,
quorum. Whereupon, a written AND DELIVERY OF
transacted at said Meeting: SALE,
ORDINANCE AUTHORI2ING TH£ ISSUANCE, SERIES 1989-A+
CITY OF DEN TON CERTIFICATES S O OF OBLIGATION,
AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES
RELATING THERETO ion
was duly introduced for the consifiov d and of said second d tt h CatOsaid
and duly read. It was then a~te~Y due discussion, said motion,
ailed and
Ordinance be passed, and, al of said Ordinance, prev
carrying frith it the passage
vote:
carried by the following
AYES:
NOES: ,
ABSTENTIONS: of the baforesaid
1 2, That a true, full, and correct copy
assed at the Meeting described in the athis and
Ordinance paragraph is attached to and follows
foregoing p
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Certificate; that said ordinance has been duly recorded in said
City council's minutes of said Meeting; that the above and
foregoing paragraph is a true, full, and correct excerpt from
said City Council's minutes of said Meeting pertaining to the
passage of said ordinance; that the persons named in the above
and foregoing paragraph are the duly chosen, qualified, and
acting officers and members of said City Council as indicated
therein; that each of the officers and members of said City
Council was duly and sufficiently notified officially and
personally, in advance, of the time, place, and purpose of the
aforesaid Meeting, and that said Ordinance would be introduced
and considered for passage at said Meeting; 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.
3. That the Mayor of said City has approved, and hereby
approves, the aforesaid ordinance; that the Mayor and the City
Secretary of said City have duly signed said Ordinance; and
that the Mayor and the City Secretary of said City hereby de-
clare that their signing of this Certificate shall constitute
the signing of the attached and following copy of said ordi-
nance for all purposes.
SIGNED AND SEALED the 24th day of October, 1989.
1
j f city Secretary Mayor
I RR i
(SEAL)
- - - - - - - - - - - - - - - - - - - - - - - -
We, the undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby
certify that we prepared and approved as to legality the
attached and following ordinance prior to its passage as
aforesaid.
City Attorney
Bond Attorneys
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a
ORDINANCE NO. 89-__
ORDINANCE
AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON
F CERTIFICATES OF OBLIGATION, SERIES 1989-A, AND APPROVING AND
AUTHORIZING INSTKWNTS AND PROCEDURES RELATING THERETO
THE STATE 0? TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the Certificate of Obligation Act of 1971, as
amended and codified (the "Act") permits the City to issue and
j sell for cash the certificates of obligation hereinafter
`r authorized; and
WHEREAS, the City has duly caused notice of its intention
to issue the Certificates of obligation hereinafter authorized
to be published at the times and in the manner required by the
Act and no petition has beer, filed protesting the issuance
thereof.
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY
ORDAINS THAT:
Section 1. AMOUNT AND PURP03E OF THE CERTIFICATES. The
certificate or certificates of the City of Denton, Texas (the
"Issuer") are hereby authorized to be issued and delivered in
the aggregate principal amount of $1,550,000, FOR THE PURPOSE
OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGA-
TIONS TO BE INCURRED (1) PURSUANT TO A CONTRACT OR CONTRACTS
FOR THE CONSTRUCTION AND EQUIPMENT OF A MUNICIPAL GARAGE, (2)
PURSUANT TO A CONTRACT FOR THE PURCHASE AND INSTALLATION OF A
MUNICIPAL TELEPHONE SYSTEM, AND (3) PURSUANT TO A CONTRACT FOR
THE PURCHASE OF A MUNICIPAL GEOGRAPHICAL COMPUTERIZED
INFORMATION (MAPPING) SYSTEMS AND ALSO FOR THE PURPOSE OF
PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL. OBLIGATIONS
FOR PROFESSIONAL SERVICES OF ENGINEERING, ATTORNEYS, AND
FINANCIAL ADVISORS IN CONNECTION WITH SUCH PURCHASES,
INSTALLATION, AND CERTIFICATES OF OBLIGATION. J
Section 2. DESIGNATION OF THE CERTIFICATES. Each cert-
ificate issued pursuant to this ordinance shall be designated:
"CITY OF DENTON CERTIFICATE OF OBLIGATION, SERIES 1989-A", and
initially there shall be issued, sold, and delivered hereunder
a single fully registered certificate, without interest cou-
pons, payable in installments of principal (the "Initial
I Certificate"), but the Initial Certificate may be assigned and
! transferred and/or converted into and exchanged for a like
aggregate principal amount of fully registered certificates,
without interest coupons, having serial maturities, and in the
denomination or denominations of $5,000 or any integral multi-
ple of $5,0000 all in the manner hereinafter provided. The
term "Certificates" as used in this Ordinance shall mean and
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include collectively the initial Certificate and all substitute
certificates exchanged therefor, as well as all other substi-
tute certificates and replacement certificates issued pursuant
hereto, and the term "Certificates" shall mean any of the
Certificates.
Sectio.- 3. INITIAL DATE, DENOMINATION, NUMBER, MATURI-
TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE
INITIAL CERTIFICATE.
(a) The Initial Certificate is hereby authorized to be
issued, sold, and delivered hereunder as a single fully
registered Certificate, without interest coupons, dated October
of of
1, 1989, in the denomination gin egannual ate principal amount
$1,559,000, numbered R-1, payable
i principal to the initial registered owner thereof, to-wit:
or to the registered assignee or assignees of said Certificate
or any portion or portions thereof (in each case, the "regis-
tered owner"), with the annual installments of principal of the 1
Initial Certificate to be payable on the dates, respectively,
and in the principal amounts, respectively, stated in the FORM
OF INITIAL CERTIFICATE set forth in this Ordinance.
The Initial Certificate (i) may be assigned and
1 j transferred, (ii) may be converted and exchanged for other
Certificates, (iii) shall have the characteristics, and (iv)
shall be signed and sealed, and the principal of and interest
on the Initial Certificate shall be payable, all as provided,
i and in the manner required or indicated, in tithe FORY OF INITIAL
CERTIFICATE set forth in this Ordinance.
Section 4. INTEREST. The unpaid principal balance of the
Initial Certificate shall bear interest frog the date of the
Initial Certificate to the respective scheduled due dates of
the installments of principal of the initial Certificate, and J
said interest shall be payable, all in the manner provided and
at the rates'and on the dates stated in the FORM OF INITIAL
CERTIFICATE set forth in this Ordinance.
Section S. FORM OF INITIAL CERTIFICATE. The form of the
Initial Certificate, including the form of Registration Certif-
icate of the Comptroller of Public Accounts of the State of
Texas to be endorsed on the Initial Certificate, shall be
substantially as follows:
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FORM OF INITIAL CERTIFICATE
NO. R-1 $1,550,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON CERTIFICATE OF OBLIGATION
SERIES 1989-A
THE CITY OF DENTON, in Denton County, Texas (the "Issu-
er"), being a political subdivision of the State of Texas,
hereby promises to pay to
or to the registered assignee or assignees of this Certificate
or any portion or portions hereof (in each case, the "regis-
tered owner") the aggregate principal amount of
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$1,550,000
(ONE MILLION FIVE HUNDRED FIFTY THOUSAND DOLLARS)
in annual installments of principal due and payable on JULY 1
in each of the years, and in the respective principal amounts,
as set forth in the following schedule:
PRINCIPAL PRINCIPAL
YEAR MOQNT Y-M AMOUNT
1991 $150,000 1996 $175,000
1992 175,000 1997 175,000
E 1993 175,000 1998 175,000
1994 175,000 1999 1750000
1995 175,000
and to pay interest, calculated on the basis of a 360-day year
composed of twelve 30-day months, from the date of this Certif-
icate hereinafter stated, on the balance o: each such install-
'I ment of principal, respectively, from time to time remaining
unpaid, at the rates as follows:
} per annum on the above installment due in 1991
per annum on the above installment due in 1992
per annum on the above installment due in 1993
per annum on the above installment due in 1994
} per annum on the above installment due in 1995
1 } per annum on the above installment due in 1996
} per annum on the above installment due in 1997
per annum on the above installment due in 1998
} per annum on the above installment due in 1999
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FORM OF INITIAL CERTIFICATE
NO. R-1 $1,550,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON CERTIFICATE OF OBLIGATION
SERIES 1989-A
THE CITY OF DENTON, in Denton County, Texas (the "Issu-
er"), being a political subdivision of the State of Texas,
hereby promises to pay to
r--~ or to the registered assignee or assignees of this Certificate
or any portion or portions hereof (in each case, the "regis-
tered owner") the aggregate principal amount of
$1,550,000
(ONE MILLION FIVE HUNDRED FIFTY TH012SAND DOLLARS)
in annual installments of principal due a•:d payable on JULY 1
In each of the years, and in the respective principal amounts,
as set forth in the following schedule:
PRINCIPAL PRINCIPAL
YEAR AMOUNZAMOUNT
1991 $150,000 1996 $1750000
1992 175,000 1997 175,000
1993 175,000 1998 175,000
1994 175,000 1999 175,000
1995 175,000
and to pay interest, calculated on the basis of a 360-day year
composed of twelve 30-day months, from the date of this Certif-
icato hereinafter stated, on the balance of each such install-
ment of principal, respectively, from time to time remaining
unpaid, at the rates as follows:
per annum on the above installment due in 1991
} per annum on the above installment due in 1992
per annum on the above installment due in 1993
per annum on the above installment due in 1994
_ per annum on the above installment due in 1995
per annum on the above installment due in 1996
per annum on the above installment due in 1997
i per annum on the above installment due in 1998
per annum on the above installment due in 1999
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with said interest being payable on JULY 1, 1990, and semi-
annually on each JANUARY 1 and JULY 1 thereafter while this
Certificate or any portion hereof is outstanding and unpaid.
THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this
Certificate are payable in lawful money of the United States of
America, without exchange or collection charges. The install-
ments of principal and the interest on this Certificate are
payable to the registered owner hereof through the services of
NCAB TEXAS NATIONAL BANK, FORT WORTH, TEXAS, which is the
"Paying Agent/Registrar" for this Certificate. Payment of all
principal of and interest on this Certificate shall be made by
the Paying Agent/Registrar to the registered owner hereof on
each principal and/or interest payment date by check dated as
- - , of such date, drawn by the Paying Agent/Registrar on, and
payable solely from, funds of the Issuer required by the
ordinance authorizing the issuance of this Certificate (the
"Certificate Ordinance") to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter provided; and
such check shall be sent by the Paying Agent/Registrar by
United States mail, first-class postage prepaid, on each such
principal and/or interest payment date, to the registered owner
hereof, at the address of the registered owner, as it appeared
on the 15th day of the month next preceding each such date (the
"Record Date") on the Registration Books kept by the Paying
Agent/Registrar, as hereinafter described. The Issuer cove-
nants with the registered owner of this Certificate that on or
before each principal and/or interest payment date for this
Certificate it will make available to the Paying Agent/Regis-
trar, from the "Interest and Sinking Fund" created by the
Certificate Ordinance, the amounts required to provide for the
payment, in immediately available funds, of all principal of
and interest on this Certificate, when due. J
IF THE DATE for the payment of the principal of or inter- I
est on this Certificate shall be a Saturday, Sunday, a legal J
holiday, or a day on which banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the'next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
THIS CERTIFICATE has been authorized in accordance with
i the Constitution and laws of the State of Texas FOR THE PURPOSE
OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGA-
TIONS TO BE INCURRED (1) PURSUANT TO A CONTRACT OR CONTRACTS
FOR THE CONSTRUCTION AND EQUIPMENT OF A MUNICIPAL GARAGE, (2)
PURSUANT TO A CONTRACT FOR THE PURCHASE AND INSTALLATION OF A
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STEM AND (3) PURSUANT TO A CONTRACT FOR
MUNICIPAL TELEPHONE SY
THE PURCHASE OF A YSTEM L AND ALSO GEOGRI14PHICAL
THE PURPOSE DOF
INFORMATION (MAPPING)
PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS
FOR PROFESSIONAL SERVICES OF ENGINEERING, ATTORNEYS, AND
FINANCIAL ADVISORS IN CONNEC'PION WITH SUCH PURCHASES,
INSTALLATION, AND CERTIFICATES OF OBLIGATION.
THIS CERTIFICATE, to the extent of the portion hereofuinaanypintegral
balance hereof, or any unpaid
multiple $50000, may be assigned by the initial registered
owner hereof and d shall be transferred only in the stacti 9
Books of the Issuer kept by the Paying in the capacity of registrar for the Certificates, upon the {
such transfer Certificate Ordinance.
terms and conditions set requirements forth in the
Among other r
must be presented and surrendered to the Paying Agent/Registrar
for cancellation, together with proper instruments of assign-
tent, form and with guarantee of
Agent/Registrar, evidencing signatures satisfactory to
the Paying
of portion
the or
initial registered owner of this integral multiple Certificate,
portions hereof in any assignee or assignees in whose name or names this Certificate
instruments trans-
or any such portion or portions hereof is or are to be
ferred and registered. Any instrument oumeme may be
assignment satisfactory to the Paying Agent/Registrar
used to evidence the assignment of this Certificatf, or any such
portion or portions hereof by the initial registered owner
hereof. A new certificate or certificates payable to such
assignee or assignees (which then will be the new registered '
owner or owners of such new Certificate toficat Ceor to
this i-
the initial registered owner as to any portion
Cate which is not being assigned and transferred by the initial
registered owner, shall be delivered by the Paying Agent/Regis-
trar in conversion of and exchange for this Certificate or any
portion or portions hereof, but solely in the form and manner
as provided in the next paragraph hereo onion he confers The and
exchange of this Certificate or any p
registered thee Issu.r and the certificate
treated by Paying Agent/Registrar as he
absolute owner hereof for all purposes, including payment and
discharge of liability upon this Certificate to the extent of
such payment, and the Issuer and the Paying c nAgent/Registrar
shall not be affected by any notice to the
AS PROVIDED above and in the Certificate Ordinance, this
+ 4 Certificate, to the extent of the unpaid principal balance
hereof amount converted of fully ind exchanged for a
registered certificates, without
interest principal interest coupons payable to initial iregisteredsowner hereof,
the
f designated in writing ing by
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or to the initial registered owner as to any portion of this
Certificate which is not being assigned and transferred by the
initial registered owner, in any denomination or denominations
in any integral multiple of $5,000 (subject to the requirement
hereinafter stated that each substitute certificate issued in
exchange for any portion of this certificate shall have a
single stated principal maturity date), upon surrender of this
Certificate to the Paying Agent/Registrar for cancellation, all
in accordance with the form and procedures set forth in the
Certificate Ordinance. If this Certificate or any portion
hereof is assigned and transferred or converted each certifi-
cate issued in exchange for any portion hereof shall have a
single stated principal maturity date corresponding to the due
date of the installment of principal of this Certificate or
portion hereof for which the substitute certificate is being
exchanged, and shall bear interest at the rate applicable to
and borne by such installment of principal or portion thereof.
No such certificate shall be payable in installments, but shall
have only one stated principal maturity date. AS PROVIDED IN
THE CERTIFICATE ORDINANCE, THIS CERTIFICATE IN ITS PRESENT FORM
MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to
one or more assignees, but the certificates issued and de-
livered in exchange for this Certificate or any portion hereof
may be assigned and transferred, and converted, subsequently,
as provided in the Certificate Ordinance. The Issuer shall pay
the Paying Agent/Registrar's standard or customary fens and
charges for transferring, converting, and exchanging this
Certificate or any portion thereof, but the one requesting such
transfer, conversion, and exchange shall pay any taxes or
governmental charges required to be paid with respect thereto.
The Paying Aqent/Registrar shall not be required to make any
such assignment, conversion, or exchange during the period
commencing with the close of business on any Record Date and
ending with the opening of business on the next following
principal or interest payment date.
IN THE EVENT any Paying Agent/Registrar for this Certifi-
cate is changed by the Issuer, resigns, or otherwise ceases to I
act as such,, the Issuer has covenanted in the certificate 1
ordinance that it promptly will appoint a competent and legally
qualified substitute therefor, and promptly will cause written
notice thereof to be mailed to the registered owner of this
Certificate.
IT IS HEREBY certified, recited, and covenanted that this
Certificate has been duly and validly auth 'fed, issued, and
delivered; that all acts, conditions, and ..igs required or
proper to be performed, exist, and be done precedent to or in
k the authorization, issuance, a.d delivery of this Certificate
have been performed, existed, and been done in accordance with
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law; that this Certificate is a general obligation of the
Issuer, issued on the full faith and credit thereof; and that
annual ad valorem taxes sufficient to provide for the payment
of the interest on and principal of this Certificate, as such
interest comes due and such principal matures, have been levied
and ordered to be levied against all taxable property in the
Issuer, and have been pledged irrevocably for such payment,
within the limit prescribed by law; and that, together with
other parity obligations, this Certificate additionally is
payable from and secured by certain surplus revenues (not to
exceed $10,000 in aggregate amount) derived by the Issuer from
the ownership and operation of the City's Utility System
(consisting of the City's combined waterworks system, sanitary
sewer system, and electric light and power system), all as
provided in the Certificate Ordinance.
THE ISSUER has reserved the right to issue, in accordance
with law, and in accordance with the Certificate Ordinance,
other end additional obligations, and to enter into contracts,
payable from ad valorem taxes and/or revenues of the City's
Utility System, on a parity with, or with respect to said
revenues, superior in lien to, this Certificate. i
BY BECOMING the registered owner of this Certificate, the
registered owner thereby acknowledges all of the terms and w
provisions of the Certificate Ordinance, agrees to be bound by J
such terms and provisions, acknowledges that the Certificate M
Ordinance is duly recorded and available for inspection in the
official minutes and records of the governing body of the J
Issuer, and agrees that the terms and pro•:isions of this
Certificate and the Certificate Ordinance constitute a contract
between the registered owner hereof and the Issuer.
IN WITNESS WHEREOF, the Issuer has caused this Certificate
to bo signed with the manual signature of the Mayor of the
Issuer and countersigned with the manual signature of the City
Secretary of the Issuer, has caused the official seal of the
Issuer to be duly impressed on this Certificate, and has caused
this Certifidate to be dated OCTOBER 10 1989.
City Secretary, Mayor,
City of Denton, Texas City of Denton, Texas
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FORM OF REGISTRATION CERTIFICATE 0-f-TUHE
C0MPTRQLLE_PLU_ PUBLIC AC.CORNTS :
COMPTROLLERS REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Certificate has been examined,
certified as to validity, and approved by the Attorney General
of the State of Texas, and that this Certificate has been
registered by the Comptroller of Public Accounts of the State
of Texas.
Witness my signature and seal this
Comptroller of Public Accounts
of the State of Texas
h (COMPTROLLER'S SEAL)
Section 6. ADDITIONAL CHARACTERISTICS OF THE CERTIFI-
CATES. Registration and Transfer. (a) The Issuer shall keep
i ` or cause to be kept at the principal corporate trust office of
f NCNB TEXAS NATIONAL BANK, FORT WORTH, TEXAS (the "Paying
i Agent/Registrar") books or records of the registration and
transfer of the Certificates (the "Registration Books"), and
the Issuer hereby appoints the Paying Agent/Registrar as its
registrar and transfer agent to keep such books or records and
make such transfers and registrations under such reasonable
regulations as the Issuer and Paying Agent/Registrar may
prescribe; and the Paying Agent/Registrar shall make such
transfers and registrations as herein provided. The Paying
Agent/Registrar shall obtain and record in the Registration
Books the address of the registered owner of each Certificate
to which payments with respect to the Certificates shall be
mailed, as herein provided; but it shall be the duty of each
registered owner to notify the Paying Agent/Registrar in
writing of the address to which payments shall be mailed, and
such interest payments shall not be mailed unless such notice
has been given. The Issuer shall have the right to inspect the
Registration Books during regular business hours of the Paying
Agent/Registrar, but otherwise the Paying Agent/Registrar shall
keep the Registration Books confidential and, unless otherwise
required by law, shall not permit their inspection by any other
t entity. Registration of each Certificate may be transferred in
' the Registration Books only upon presentation and surrender of
such Certificate to the Paying Agent/Registrar for transfer of
registration and cancellation, together with proper written
instruments of assignment, in form and with guarantee of
signatures satisfactory to the Paying Agent/Registrar, (i)
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evidencing the assignment of the Certificate, or any portion
thereof in any integral multiple of $5,000, to the assignee or
assignees thereof, and (ii) the right of such assignee or
assignees to have the Certificate or any such portion thereof
registered in the nane of such assignee or assignees. Upon
the assignment and transfer of any Certificate or any portion
thereof, a new substitute Certificate or Certificates shall be
issued in conversion and exchange therefor in the manner herein
provided. The Initial Certificate, to the extent of the unpaid
principal balance thereof, may be assigned and transferred by
the initial registered owner thereof once only, and to one or
more assignees designated in writing by the initial registered
owner thereof. All Certificates issued and delivered in 1
conversion of and exchange for the Initial Certificate shall be
in any denomination or denominations of any integral multiple
of $5,000 (subject to the requirement hereinafter stated that
each substitute Certificate shall have a single stated princi-
pal maturity date), shall be in the form prescribed in the FORM
OF SUBSTITUTE CERTIFICATE set forth in this ordinance, and
shall have the characteristics, and may be assigned, trans-
ferred, and converted as hereinafter provided. If the Initial
Certificate or any portion thereof is assigned and transferred
or converted the Initial Certificate must be surrendered to the
Paying Agent/Registrar for cancellation, and each Certificate
issued in exchange for any portion of the Initial Certificate
shall have a single stated principal maturity date, and shall
not be payable in installme,its; and each such Certificate shall
have a principal maturity date corresponding to the dug date of
the installment of principal or portion thereof for which the
substitute Certificate is being exchanged; and each such
Certificate shall bear interest at the single rate applicable
to and borne by such installment of principal or portion
thereof for which it is being exchanged. If only a portion of
the Initial Certificate is assigned and transferred, there
shall be delivered to and registered in the name of the initial
registered owner substitute Certificates in exchange for the
unassigned balance of the initial Certificate in the same
manner as if the initial registered owner were the assignee
thereof. If any Certificate or portion thereof other than the
Initial Certificate is assigned and transferred or converted
each Certificate issued in exchange therefor shall have the
sa,xe principal maturity date and bear interest at the same rate
as the Certificate for which it is exchanged. A form of
assignment shall be printed or endorsed on each Certificate,
excepting the Initial Certificate, which shall be executed by
the registered owner or its duly authorized attorney or repre-
sentative to evidence an assignment thereof. Upon surrender of
any Certificates or any portion or portions thereof for trans-
fer of registration, an authorized representative of the Paying
Agent/Registrar shall make such transfer in the Registration
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Books, and shall deliver a new fully registered substitute
Certificate or Certificates, having the characteristics herein
described, payable to such assignee or assignees (which then
will be the registered owner or owners of such neo. Certificate
or Certificates), or to the previous registered owner in case
only a portion of a Certificate is being assigned and trans-
ferred, all in conversion of and exchange for said assigned
Certificate or certificates or any portion or portions thereof,
in the same form and manner, and with the same effect, as
provided in Section 6(d), below, for the conversion and ex-
change of Certificates by any registered owner of a Certifi-
cate. The Issuer shall pay the Paying Agent/Registrar's
standard or customary fees and charges for making such transfer
and delivery of a substitute Certificate or Certificates, but
the one requesting such transfer shall pay any taxes or other
governmental charges required to be paid with respect thereto.
The Paying Agent/Registrar shall not be required to make
transfers of registration of any Certificate or any portion
thereof during the period commencing with the close of business
on any Record Date and ending with the opening of business on
the next following principal or interest payment date.
(b) Ownership of Certificates, The entity in whose name
any Certificate shall be registered in the Registration Books
at any time shall be deemed and treated as the absolute owner
thereof for all purposes of this Ordinance, whether or not such
Certificate shall be overdue, and the Issuer and the Paying
Agent/Registrar shall not be affected by any notice to the
contrary; and payment of, or on account of, the principal of,
premium, if any, and interest on any such Certificate shall be
made only to such registered owner. All such payments shall be
valid and effectual to satisfy and discharge the liability upon
such Certificate to the extent of the sum or sums so paid.
(c) Payment of Certificates and Interest, The Issuer
hereby further appoints the Paying Agent/Registrar to act as
the paying agent for paying the principal of and interest on
the Certificates, and to act as its agent to convert and
exchange or replace Certificates, all as provided in this
Ordinance. The Paying Agent/Registrar shall keep proper
records of all payments made by the Issuer and the Paying
Agent/Registrar with respect to the certificates, and of all
conversions and exchanges of Certificates, and all replacements
of Certificates, as provided in this ordinance.
(d) Conversion and Exchange or ReRlacementi Authenti-
cAUgn. Each Certificate issued and delivered pursuant to this
1 , ordinance, to the extent of the unpaid principal balance or
principal amount thereof, may, upon surrender of such Certifi-
cate at the principal corporate trust office of the Paying
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4 Agent/ Registrar, together with a written request therefor duly
' executed by the registered owner or the assignee or assignees
thereof, or its or their duly authorized attorneys or represen-
tatives, with guarantee of signatures satisfactory to the
Paying Agent/Registrar, may, at the option of the registered
owner or such assignee or assignees, as appropriate, be con-
i verted into and exchanged for fully registered certificates,
without interest coupons, in the form prescribed in the FORM OF
SUBSTITUTE CERTIFICATE set forth in this ordinance, in the
denomination of $5,000, or any integ..-al multiple of $5,000
(subject to the requirement hereinafter stated that each
substitute Certificate shall have a single stated maturity
date), as requested in writing by such registered owner or such
assignee or assignees, in an aggregate principal amount equal
to the unpaid principal balance or principal amount of any
Certificate or Certificates so surrendered, and payable to the
appropriate registered owner, assignee, or assignees, as the
case may be. If the Initial Certificate is assigned and
transferred or converted each substitute Certificate issued in
exchange for any portion of the Initial Certificate shall have
a single stated principal maturity date, and shall not be
i payable in installments, and each such Certificate shall have a
li principal maturity date corresponding to the due date of the
installment of principal or portion thereof for which the
substitute Certificate is being exchangedt and each such
Certificate shall bear interest at the single rate applicable
to and borne by such installment of principal or portion
thereof for which it is being exchanged. If any Certificate or
portion thereof (other than the Initial Certificate) is as-
signed and transferred or converted, each Certificate issued in
exchange therefor shall have the same principal maturity date
and bear interest at the same rate as the Certificate for which
it is being exchanged. Each substitute Certificate shall bear
a letter and/or number to distinguish it from each ether
Certificate. The Paying Agent/Registrar shall convert and
exchange or replace Certificates as provided herein, and each
fully registered certificate delivered in conversion of and
exchange for or replacement of any Certificate of this
thereof as permitted or required by any provision
ordinance shall constitute one of the Certificates for all
purposes of this Ordinance, and may again be converted and
exchanged or replaced. It is specifically provided that any
Certificate authenticated in conversion of and exchange for or
replacement of another Certificate on or prior to the first
scheduled Record Date for the Initial Certificate shall bear
interest from the date of the Initial Certificate, but each
substitute Certificate so authenticated after such first
scheduled Record Date shall bear interest from the interest
j payment date next preceding the date on which such substitute
Certificate was so authenticated, unless such Certificate is
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authenticated after any Record Date but on or before the next
following interest payment date, in which case it shall bear
interest from such next following interest payment date;
provided, however that if at the time of delivery of any
substitute Certificate the interest on the Certificate for
which it is being exchanged is due but has not been paid, then
such Certificate shall bear interest from the date to which
such interest has been paid in full. THE INITIAL CERTIFICATE
issued and delivered pursuant to this ordinance is not required
to be, and shall not be, authenticated by the Paying Agent/-
Registrar, but on each substitute Certificate issued in conver-
sion of and exchange for or replacement of any Certificate or
Certificates issued under this Ordinance there shall be printed
a certificate, in the form substantially as follows:
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"PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate has been
I issued under the provisions of the Certificate ordinance
described on the face of this Certificate; and that this
Certificate has been issued in conversion of and exchange for
or replacement of a certificate, certificates, or a portion of
a certificate or certificates of an issue which originally was
approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts of the state
of Texas.
46
NCNB TEXAS NATIONAL HANK,
FORT WORTH, TEXAS
Paying Agent/Registrar
{
Dated By
Authorized Representative"
An authorized representative of the Paying Agent/Registrar
shall, before the delivery of any such Certificate, date and
manually sign the above Certificate, and no such Certificate
shall be deemed to be issued or outstanding unless such Certif-
icate is so executed. The Paying Agent/Registrar promptly
shall cancel all Certificates surrendered for conversion and
exchange or replacement. No additional ordinances, orders, or
resolutions need be passed or adopted by the governing body of
the Issuer or any other body or person so as to accomplish the
foregoing conversion and exchange or replacement of any Certif-
icate or portion thareof, and the Paying Agent/Registrar shall
provide for the printing, execution, and delivery of the
substitute Certificates in the manner prescribed herein, and
said Certificates shall be of type composition printed on paper
with lithographed or steel engraved borders of customary weight
and strength. Pursuant to Vernon's Ann. Tux. Civ. St. Art.
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sion and exchange or replacement of Certificates as aforesaid
is hereby imposed upon the Paying Agent/ Registrar, and, upon
the execution of the above Paying Agent/Registrar's Authentica-
tion Certificate, the converted and exchanged or replaced
Certificate shall be valid, incontestable, and enforceable in
the same manner and with the same effect as the Initial Certif-
icate which originally was issued pursuant to this ordinance,
approved by the Attorney General, and registered by the Comp-
troller of Public Accounts. The Issuer shall pay the Paying
Agent/Registrar's standard or customary fees and charges for
transferring, converting, and exchanging any Certificate or any
portion thereof, but the one requesting any such transfer,
conversion, and exchange shall pay any taxes or governmental
charges required to be paid with respect thereto as a condition
precedent to the exercise of such privilege of conversion and
exchange. The Paying Agent/Registrar shall not be required to
make any such conversion and exchange or replacement of Certif-
icates or any portion thereof (i) during the period commencing
with the close of business on any Record Date and ending with
the opening of business on the next followin3 principal or
interest payment date, or, (ii) with respect to any Certificate
or portion thereof called for redemption prior to maturity,
within 45 days prior to its redemption date.
(e) In General. All Certificates issued in conversion
and exchange or replacement of any other Certificate or portion
thereof, (i) shall be issued in fully registered form, without
interest coupons, on such
Certificatestobei payable principal ito the a registered interest owners
thereof, (ii) may be transferred and assigned, (iii) may be
converted and exchanged for other Certificates, (iv) shall have
the characteristics, (v) shall be signed and sealed, and (vi)
the principal of and interest on the Certificates shall be pay-
able, all as provided, and in the manner required or indicated,
in the FORM OF SUBSTITUTE CERTIFICATE set forth in this Ordi-
nance.
(f) pavment of_Fees. and Chacaes. The Issuer hereby
covenants with the registered owners of the Certificates that
it will (i) pay the standard or customary fees and charges of
- ' the Paying Agent/Registrar for its cervices with respect to the
payment of the principal of and fees interest
charges of theCertificates,
when due, and (ii) pay the
Agent/Registrar for services with respect to the transfer of
onand registration exchangeCertificates
of i Certificates solely to respect he extnt aboe
i'~ si provided in this Ordinance.
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(g) ubstitute _Ea-t1.rcl tsar' The Issuer
covenants with the registered owners of the certificates that
at all times while the Certificates are outstanding thetIsster bank,
will provide a competent and legally qualified to act as and
company, financial institution, or other agency
perform the services of Paying Agent/ Registrar for the certifi-
cates under this Ordinance, and that the Paying Agent/Registrar
will be one entity. The Issuer reserves the right to, and may,
to theAgent/Registrar
its days option, wrchange the itten notice Paying
Paying t Agent/Re
than 120 gistrar# to
be effective not later than 60 days prior to the next principal
or interest payment date after such notice. In the event that its
the entity at any time acting a Y g Agent/Registrar
successor by merger, acquisition, or other method) should
resign or otherwise cease to act as such, the Issuer covenants
qualified
that promptly it will appoint a competent and legally ktrust gent/Registrar financial under institution,
this o Ordinance. Upon agency
act as Paying any
change in the Paying Agent/Registrar, the previous Paying
Agent/Registrar promptly shall transfer and deliver the Regis-
tration Books (or a copy thereof), along with all other perti-
nent books and records relating to the Certificates, to the Issuer now
Paying Agent/Registrar designated and appointed by the
Upon any vhange in the Paying Agent/Registrar, the Issuer'
promptly will cause a written notice thereof to be sent by the
new Paying Agent/Registrar to each registered owner of the
Certificates, by United states mail, first-class postage the prepaid, which notice also shall give the address and perfow
Paying Agent/Registrar. By accepting the position
ing as such, each Paying Agent/Registrar shall be deemed to
have agreed to the provisions of this Ordinance, and a cer-
tified copy of this Ordinance shall be delivered to each Paying
Agent/Registrar.
Section FORM OF SUBSTITUTE CERTIFICATES. The form of
all Certific_ces issued in conversion and exchange or replace-
ment of any other Certificate or portion thereof, including the
form of Paying Agent/Registrar's certificate to be printed on
each of such Certificates, and the Form of Assignment to be
printed on each of the Certificates, shall be, respectively,
substantially as missions, or insertions ~as are t permittedoorirequiredabyothi
o s
Ordinance.
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FORM OF SUBSTITUTE C~tTIFICATE
NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT
STATE OF TEXAS $
COUNTY OF DENTON
CITY OF DENTON CERTIFICATE OF OBLIGATION
SERIES 1989-A l
;NTEREST RATK MATURITY DATE CUSIP N0. Jll
ON THE MATURITY DATE specified above the CITY 0'i' DEN'rON,
in Denton county, Texas (the "Issuer"), being a a political
subdivision of the State of Texas, hereby promises to pay to
or to the registered assignee hereof (either being Hereinafter
called the "registered owner") the principal amou;lt of
and to pay interest thereon, calculated on the basis of a
360-day year composed of twelve 30-day months, from OCTOBER 1,
1989, to the maturity date specified above, at the interest ,
rate per annum specified abovel with interest being payable on
JULY 1, 19n0, and semiannually on each JANUARY 1 and JULY 1 j
thereafter, except that if the date of authentication of this
Certificate is later than JUNF, 15, 1990, such principal amount
shall bear interest from the interest payment date next preced-
ing the date of authentication, unless such date of authentica-
tion is after any Record Date (hereinafter defined) but on or
before the next following interest payment date, in which case
such principal amount shall bear interest from such next
following interest payment date.
THE PRINCIPAL OF AND INTEREST ON this Certificate are
payable in lawful money of the United States of America,
without exchange or collection charges. The principal of this
Certificate shall be paid to the registered owner hereof upon
presentation'and surrender of this Certificate at maturity, at
the principal corporate trust office of NCNB TEXAS NATIONAL
BANH, FORT WORTH, TEXAS, which is the "Paying Agent/Registrar"
for this Certificate. The payment of interest on this Certifi-
cate shall be made by the Paying Agent/Registrar to the regis-
tered owner hereof on each interest payment date by check dated
as of such interest payment date, drawn by the Paying
Agent/Registrar on, and payable solely from, funds of the
Issuer required by the ordinance authorizing the issuance of
f the Certificates (the "Certificate ordinance") to be on deposit
with the Paying Agent/Registrar for such purpose as hereinafter
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provided; and such check shall be sent by the Paying Agent/-
Registrar by United States mail, first-class postage prepaid,
on each such interest payment date, to the registered owner
hereof, at the address of the registered owner, as it appeared
on the 15th day of the month next preceding each such date (the
"Record Date") on the Registration Books kept by the Paying
Agent/Registrar, as hereinafter described. The issuer cove-
nants with the registered owner of this Certificate that on or
before each principal payment date, interest payment date, and
accrued interest payment date for this Certificate it will make
available to the Paying Agent/Registrar, from the "Interest and
Sinking Fund" created by the Certificate Ordinance, the amounts
required to provide for the payment, in immediately available
r funds, of all principal of and interest on the Certificates,
when due.
IF THE DATE for the payment of the principal of or inter-
est on this Certificate shall be a Saturday, Sunday, a legal
holiday, or a day on which banking institutions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Satu a
Sunday legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
THIS CERTIFICATE is one of an issue of Certificttes
initially dated OCTOBER 1, 1989, authorized in accordance with
the Constitution and laws of the State of Texas in the princ-
ipal amount of $1,550,000, FOR THE PURPOSE OF PAYING ALL OR A
PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS TO BE INCURRED
` (1) PURSUANT TO A CONTRACT OR CONTRACTS FOR THE CONSTRUCTION
AND EQUIPMENT OF A MUNICIPAL GARAGE, (2) PURSUANT TO A CONTRACT
FOR THE PURCHASE AND INSTALLATION OF A MUNICIPAL TELEPHONE
SYSTEM, AND (3) PURSUANT TO A CONTRACT FOR THE PURCHASE OF ,A
MUNICIPAL GEOGRAPHICAL COMPUTERIZED INFORMATION (MAPPING) i
SYSTEM; AND ALSO FOR THE PURPOSE OF PAYING ALL OR A PORTION OF
THE CITY'S CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES OF
- ' ENGINEERING, 'ATTORNEYS, AND FINANCIAL ADVISORS IN CONNECTIO11
WITH SUCH PURCHASES, INSTALLATION, AND CERTIFICATES OF
OBLIGATION. i
THIS CERTIFICATE OR ANY PORTION OR PORTIONS HEREOF IN ANY
INTEGRAL MULTIPLE OF $5,000 may be assigned and shall be trans-
ferred only in the Registration Books of the Issuer kept by the
C ' Paying Agent/Registrar acting in the capacity of registrar for
the Certificates, upon the terms and conditions set forth in
the Certificate Ordinance. Among other requirements for such
assignment and transfer, this Certificate must be presented and
surrendered to the Paying Agent/Registrar, together with proper
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instruments of assignment, in form and with guarantee of
signatures satisfactory to the Paying Agent/Registrar, evidenc-
ing assignment of this Certificate or any portion or portions
hereof in any integral multiple of $5,000 to the assignee or
assignees in whose name or names this Certificate or any such
portion or portions hereof is or are to be transferred .nd
registered. The form of Assignment printed or endorsed on this
Certificate shall be executed by the registered owner or its
duly authorized attorney or representative, to evidence the
assignment hereof. A new Certificate or Certificates payable
to such assignee or assignees (which then will be the new
registered owner or owners of such new Certificate or Certifi-
cates), or to the previous registered owner in the case of the
assignment and transfer of only a portion of this Certificate,
may be delivered by the Paying Agent/Registrar in conversion of
and exchange for this Certificate, all in the form and manner
as provided in the next paragraph hereof for the conversion and
exchange of other Certificates. The Issuer shall pay the
Paying Agent/Registrar's standard or customary fees and charges
for making such transfer, but the one requesting such transfer
j shall pay any taxes or other governmental charges required to
be paid with respect thereto. The paying Agent/Registrar shall
noc be required to make transfers of registration of this
Certificate or any portion hereof during the period commencing
with the close of business on any Record Date and ending with
the opening of business on the next following principal or
interest payment date. The registered owner of this Certifi-
cate shall be deemed and treated by the Issuer and the Paying
Agent/Registrar as the absolute owner hereof for all purposes,
including payment and discharge of liability upon this Certifi-
cats to the extent of such payment, and the Issuer and the
Paying Agent/Registrar shall not be affected by any notice to
the contrary. {
ALL CERTIFICATES OF THIS SERIES are issuable solely as
fully registered certificates, without interest coupons, in the
denomination of any integral multiple of $5,000. As provided
in the Certificate Ordinance, this Certificate, may, at the
request of the registered owner or the assignee or assignees
hereof, be converted into and exchanged for a like aggregate
principal amount of fully registered certificates, without
interest coupons, payable to the appropriate registered owner,
assignee, or assignees, as the case may be, having the same
maturity date, and bearing interest at the same rate, in any
denomination or denominations in any integral multiple of
$5,000 as requested in writing by the appropriate registered
a owner, assignee, or assignees, as the case may be, upon sur-
render of this Certificate to the Paying Agent/Registrar for
cancellation, all in accordance with the form and procedures
set forth in the Certificate Ordinance. The Issuer shall pay
the Paying Agent/Registrar's standard or customary fees and
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THE STATE OF TEXAS
COUrl'rY OF DENTON
CITY OF DENTON
NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION
OF THE CITY OF QENTON. TEXAS
THE CITY OF DENTON, in Denton County, Texas, hereby gives
notice of its intention to issue CITY OF DENTON CERTIFICATES OF
OBLIGATION, in accordance with the Certificate of Obligation
Act of 1971, as amended and codified, and other applicable
laws, in the maximum principal amount of $1,550,000 for the
purpose of paying all or a portion of the City's contractual
obligations to be incurred (1) pursuant to a contract or ~
contracts for the construction and equipment of a municipal
garage, (2) pursuant to a contract for the purchase and
installation of a municipal telephone system, and (3) pursuant
to a contract for the purchase of a municipal geographical
computerized information (mapping) system, and also for the
purpose of paying all or a portion of the city's contractual
obligations for professional services of engineering, attor-
neys, and financial advisors in connection with such purchases,
'.nstallation, and Certificates of Obligation. The City
proposes to provide for the payment of such Certificates of
f Obligation from the levy and collection of ad valorem taxes in
the City as provided by law, and from certain revenues derived V
by the City from the ownership and operation of the City's
Utility System (consisting of the City's combined waterworks
i system, sanitary sewer system, and electric light and power
system). The City Council of the City tentatively proposes to
authorize the issuance of such Certificates of Obligation at a
meeting commencing at 7:00 p.m. on the 24th day of October,
1989, in the City Council room at the Municipal Building (City
Hall), Denton, Texas,
CITY OF DENTON, TEXAS
1
By Jennifer K. Walters,
City Secretary
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charges for transferring, converting, and exchanging any
Certificate or any portion thereof, but the one requesting such
transfer, conversion, and exchange shall pay any taxes or
governmental charges required to be paid with respect thereto
as a condition precedent to the exercise of such privilege of
conversion and exchange, The Paying Agent/Registrar shall not
be required to make any such conversion and exchange during the
period commencing with the close of business on any Record Date
and ending with the opening of business on the next following
principal or interest payment date.
IN THE EVENT any Paying Agent/Registrar for the Certifi-
cates is changed by the Issuer, resigns, or otherwise ceases to
act as such, the Issuer has covenanted in the Certificate
k Ordinance that it promptly will appoint a competent and legally
qualified substitute therefor, and promptly will cause written
notice thereof to be mailed to the registered owners of the
certificates,
IT IS HEREBY certified, recited, and covenanted that this
Certificate 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 Certificate
have been performed, existed, and been done in accordance with
laws that this Certificate is a general obligation of the'
Issuer, issued on the full faith and credit thereof; and that
annual ad valorem taxes sufficient to provide for the payment
of the interest on and principal of this Certificate, as such
interest comes due and such principal matures, have been levied
and ordered to be levied against all taxable property in the
Issuer, and have been pledged irrevocably for such payment,
within the limit prescribed by laws and that, together with
other parity obligations, this Certificate, and the other
certificates of this Series, additionally are payable from and
secured by certain surplus revenues (not to exceed $10,000 in
aggregate amount) derived by the Issuer from the ownership attid
operation of the City's Utility System (consisting of the
City0s combined waterworks system, sanitary sewer system, and
electric light and power system), all as provided in the
Certificate Ordinance.
THE ISSUER has reserved the right to issue, in accordance
with law, and in accordance with the Certificate Ordinance,
} other and additional obligations, and to enter into contracts,
payable from ad valorem taxes and/or revenues of the City's
i Ltility System, on a parity with, or with respect to said
revenues, superior in lien to, this Certificate.
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BY BECOMING the registered owner of this Certificate, the
registered owner thereby acknowledges all of the terms and
provisions of the Certificate ordinance, agrees to be bound by
such terms and provisions, acknowledges that the Certificate
Ordinance is duly recorded and available for inspection in the
official minutes and records of the governing body of the
Issuer and agrees that the terms and provisions of this
Certificate and the Certificate ordinance constitute a contract
between each registered owner hereof and the Issuer.
IN WITNESS WHEREOF, the Issuer has caused this Certificate
to be signed with the facsimile signature of the Mayor of the
Issuer and countersigned with the facsimile signature of the
City Secretary of the Issuer, and has caused the official seal
of the Issuer to be duly impressed, or placed in facsimile, on
this Certificate.
f (facsimile signature) (facsimile signature)
City Secretary, Mayor,
City of Denton, Texas City of Denton, Texas
(CITY SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate has been
issued under the provisions of the Certificate ordinance
I described on the face of this Certificate; and that this
Certificate has been issued in conversion of and exchange for
or replacement of a certificate, certificates, or a portion of
a certificate or certificates of an issue which originally was
approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts of the State
of Texas.
NCNB TEXAS NATIONAL BANK,
FORT WORTH, TEXAS
Paying Agent/Registrar
Dated By
Authorized Representat ve
FORM OF ASSIGNMENT,
ASSIGNMENT
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j FOR VALUE RECEIVED, the undersign6d registered owner of
t this Certificate, or duly authorized representative or attorney
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thereof, hereby assigns this Certificate to
(Assignee's Social sprint or typewrite Ass gnee'a name and
Security or Taxpayer address, including zip code)
Identification Number
and hereby irrevocably constitutes and appoints
attorney tc transfer the registration of this Certificate on'
the Paying Agent/Registrar's Registration Books with full power
of substitution in the premises.
Dated:
Signature Guaranteed:
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NOTICE: This s gnature musk be Reg stated Owner
guaranteed by a member of the NOTICE: This signature must
New York Stock Exchange or a correspond with the name of
commercial bank or trust the Registered Owner appear-
company. ing on t:e face of this Cer-
tificate.
Section 8. TAX LEVY. A special interest and Sinking Fund
(the "Interest and Sinking Fund") is hereby created solely for
the benefit of the Certificates, and the Interest and Sinking
Fund shall be established and maintained by the Issuer at an
official depository bank of the Issuer. The Interest and l
Sinking Fund shall be kept separate and apart from all other 11
funds and accounts of the Issuer, and shall be used only for
paying the interest on and principal of the Certificates. All
ad valorem taxes levied and collected for and on account of the
Certificates'shall be deposited, as collected, to the credit of
the interest and Sinking Fund. During each year while any of
the Certificates or interest thereon are outstanding and
unpaid, the governing body of the Issuer shall compute and
ascertain a rate and amount of ad valorem tax which will be
sufficient to raise and produce the money required to pay the
interest on the Certificates as such interest becomes due, and
P to provide and maintain a sinking fund adequate to pay the
principal of its Certificates as such principal matures (but
never less than 2% of the original principal amount of the
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Certificates as a sinking fund each year); and said tax shall
be based on the latost approved tax rolls of the Issuer, with
full allowance being made for tax delinquencies and the cost of
tax collection. Said rate and amount of ad valorem tax is
hereby levied, and is hereby ordered to be levied, against all
taxable property in the issuer for each year while any of the
Certificates or interest thereon are outstanding and unpaid;
and said tax shall be assessed and collected each such year and
deposited to the credit of the aforesaid Interest and Sinking
Fund. Said ad valorei taxes sufficient to provide for the
payment of the interest on and principal of the certificates,
as such interest comes due and such principal matures, are
ereby pledged for such payment, within the limit prescribed by
h
law.
Section 9. SURPLUS REVENUES. The Certificates addi-
tionally shall be payable from and secured by surplus revenues,
i to the extent hereinafter permitted, derived by the Issuer from
the ownership and operation of the Issuer's Utility System
E (consisting of its combined waterworks system, sanitary sewer
E system, and electric light and power system) remaining after
(a) paymei:t of all amounts constituting operation and main-
tenance expenses of said Utility System, and (b) payment of all
debt service, reserve, and other requirements and amounts
required to be paid under all ordinances heretofore or here-
after authorizing (i) all bonds and (ii) all other obligations
not on a parity with the Certificates, which are payable from
and secured by any Utility System revenues, and (c) payment of
all amounts payable from any Utility System revenues pursuant
to contracts heretofore or hereafter entered into by the Issuer
in accordance with law (the "Surplus Revenues"). If, for any
reason, the Issuer fails to deposit ad valorem taxes levied
pursuant to Section S hereof to the credit of the Interest and
Sinking Fund in an amount sufficient to pay, when due, the
principal of and interest on the Certificates, then Surplus
Revenues, to the extent hereinafter permitted, shall be depos-
ited to the credit of the Interest and Sinking Fund and used to
pay such principal and/or interest. A maximum aggregate of
$10,000 of Surplus Revenues may be used to pay principal and/or
interest on the Certificates and any obligations on a parity
therewith. The certificates and any obligations on a parity
therewith are not, and shall not be deemed to be, payable from
or secured by any Surplus Revenues in excess of an aggregate of
$10,000. Until and unless an aggregate of $10,000 of Surplus
Revenues actually is used to pay any such principal and/or
interest, additional obligations, payable from and secured by
all or any remaining unused part of said aggregate of $10,000
of Surplus Revenues, may be issued by the Issuer on a parity
with the certificates and any other then outstanding parity
f obligations, with the Certificates and all such additional
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parity obligations to be payable from and secured equally and
ratably by all or any remaining unused part of said aggregate.
The Issuer reserves, and shall have, the right to issue bonds,
and other obligations not on a parity with the Certificates,
and to enter into contracts, in accordance with applicable
laws, to be payable from and secured by any Utility System
revenues other than the aggregate of $10,000 of Surplus Reve-
nues as described above. The Certificates are on a parity with
that issue of City of Denton Certificates of Obligation, Series
1987-A, as permitted in ordinance No. 87-108, passed on June
16, 1987, authorizing samet and it is hereby found and deter-
mined that none of the above defined Surplus Revenues have been
used to pay any principal and/or interest on said City of
Denton Certificates of Obligation, Series 1987-A.
Section 10. DEFEASANCE OF CERTIFICATES. (a) Any Certif-
icate and the interest thereon shall be deemed to be paid,
retired, and no longer outstanding (a "Defeased Certificate")
within tho meaning of this ordinance, except to the extent
provided in subsection (d) of this Section, when payment of the
principal of such Certifica+e, plus interest thereon to the due
e been ereof, made or (ii) caused have a in
been
date I either accordancewith the shall h
provided for on or before such due date by irrevocably deposit-
ing with or making available to the Paying Agent/Registrar for
such payment (1) lawful money of the United States of America
sufficient to make such payment or (2) Government obligations
which mature as to principal and interest in such amounts and
at such times as will insure the availability, without rain-
Vestment, of sufficient money to provide for such payment, and
when proper arrangements have been made by the Issuer with the
Paying Agent/Registrar for the payment of its services until
all Defeased Certificates shall have become due and payable.
At such time as a Certificate shall be r'.aemed to be a Defeased
Certificate hereunder, as aforesaid, such Certificate an the
interest thereon shall no longer be secured by, payable
provided of, in the ad valorem taxes this Ordinance, and such
idplto the edged as benefits
levied and
principal and interest shall be payable solely from such money
or Government Obligations.
(b) Any moneys so deposited with the Paying Agent/Regis-
trar may at the written direction of the Issuer also be in-
vested in Government Obligations, maturing in the amounts a
times as hereinbefore set forth, and all income from such
} Government obligations received by the Paying Agent/Registrar
which is not required for the payment of the certificates and
interest thereon, with respect to which such money has been so
deposited, shall be turned over to the Issuer, or deposited as
directed in writing by the Issuer.
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(c) The term "Government Obligations" as used in this
Section shall mean direct obligations of the United States of
America, including obligations the principal
Uof and nited St tees ofn
which are unconditionally guaranteed America, which may be United States Treasury obligations such
as its State and Local Government Series, which may be in
book-entry form.
(d) Until all DefeasAqden*Certificates shall have ./Registrar shall perform become due
and payabl9, the Paying
services of Paying Agent/Registrar for such Defeased Certifi-
cates the same as if they had not been defeased, and the issuer
as required arrangements by this Ordinance. and pay i
s shall ervices make
Section 11. DAMAGED, MUTILATED, LAST, STOLEN, OR DE-
STROYE0 CERTIFICATES. (a) ReDldrpmnnt certificates. In the
l event any outstanding Certcate is damaged, mutilated, lost,
stolen, or destroyed, the Paying Agent/Registrar shall cause to
be printed, executed, and delivered, a new certificate of the
same principal amount, maturity, and interest rate, as the
damaged, mutilated, lost, stolen, or destroyed Certificate, in
replacement for such Certificate in the manner hereinafter
provided.
Applida-
(b) Avolication far Replacement W1i.E.l9At"•
tion for replacement of damaged, ilated lost
the registstolen, o r
destroyed Certificates shall be made by
thereof to the Paying Agent/Registrar. In every case of loss,
theft, or destruction of a Certificate, the registered owner
applying for a replacement certificate shall furnish to the
Issuer and to the Payingd Agent/Registrar such esecurit them by them to save ch of indemnity as may be require
harmless from any loss or damage with respect thereto. Also,
in every case of loss, theft, or destruction of a Certificate,
the registered owner shall furnish to the issuer and the Paying
Agent/Registrar evidence to their satisfaction of the loss,
theft, or destruction of such Certificate, as the case may be.
In every case of damage or mutilation of a Certificate, the
registered owner shall surrender to the Paying Agent/Registrar
for cancellation the Certificate so damaged or mutilated.
(o) u., nefxtstt OccurrgSi. Notwithstanding the foregoing
provisions of this section, in the event of any such Certifi-
cate shall have matured, and no default has occurred which is
1 then continuing in the payment of the principal of, or interest
on the certificate, the Issuer may authorize the payment of the i
same (without surrender thereof except in the case of a damaged '
or mutilated Certificate) instead of issuing a replacement
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Certificate, provided security or indemnity is furnished as
above provided in this Section.
(d) Charge for issuing Replacement Certificate-4. Prior
to the issuance of any replacement certificate, the Paying
Agent/Registrar shall charge the registered owner of such
Certificate with all legal, printing, and other expenses in
connection therewith. Every replacement certificate issued
pursuant to the provisions of this Section by virtue of the
fact that any Certificate is lost, stolen, or destroyed shall
constitute a contractual obligation of the Issuer whether or
not the lost, stolen, or destroyed Certificate shall be found
at any time, or be enforceable by anyone, and shall be entitled
to all the benefits of this Ordinance equally and proportion-
ately with any and all other certificates duly issued under
r--1 this Ordinance.
(e) Authority for issuing ~R placement Certificates.. In
accordance with Section 6 of. Vernon's Ann. Tex. Civ. St. Art.
717k-6, this Section of this Ordinance shall constitute author-
ity for the issuance of any such replacement certificate
without necessity of further action by the governing body of
the Issuer or any other body or person, and the duty of the
4 replacement of such certificates is hereby authorized and
imposed upon the Paying Agent/Registrar, and the Paying Agent/-
Registrar shall authenticate and deliver such Certificates in
i~ the form and manner and with the effect, as provided in Section
6(d) of this Ordinance for Certificates issued in conv-rsion
and exchange for other certificates.
' Section 12. CUSTODY, APPROVAL, AND REGISTRATION OF
CERTIFICATES; CERTIFICATE COUNSEL'S OPINION, CUSIP NUMBERS, AND J
INSURANCE. The Mayor of the Issuer is hereby authorized to
I have control of the Initial Certificate issued hereunder and
all necessary records and proceedings pertaining to the Initial
Certificate pending its delivery and its investigation, exami-
nation, and approval by the Attorney General of the State of I
Texas, and its registration by the Comptroller of Public
Accounts of the State of Texas. Upon registration of the j
Initial Certificate said Comptroller of Public Accounts (or a
deputy designated in writing to act for said Comptroller) shall
manually sign the Comptroller's Registration Certificate on the
Initial Certificate, and the seal of said Comptroller shall be
impressed, or placed in facsimile, on the initial certificate.
4 The app-loving legal opinion of the issuer's Bond Counsel and
the assigned CUSIP numbers may, at the option of the Issuer, be
I printed o,. the Initial Certificate or on any Certificates
issued and delivered in conversion of and exchange or replace-
ment of any Certificate, but neither shall have any legal
effect, anti ,.nall be solely for the convenience and information
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of the registered owners of the certificates. If insurance is
obtained on the Certificates as provided in the Notice of Sale
and Bidding Instructions and Official Statement hereinafter
described, the Initial Certificate and all other Certificates
shall bear an appropriate legend concerning insurance as
provided by the insurer.
Section 13. COVENANTS REGARDING TAX-EXEMPTION. The
Issuer covenants to refrain from taking any action which would
adversely affect, and to take any action required to ensure,
the treatment of the Certificates as obligations described in
section 103 of the Code, the interest on which is not includ-
able in the "gross income" of the holder for purposes of
` federal income taxation. In furtherance thereof, the Issuer
covenants as follows:
(a) to take any action to assure that no more than
10 percent of the proceeds of the Certificates (less
amounts deposited to a reserve fund, if any) are used for
any "private business uss", as defined in section
141(b)(6) of the Code or, if more than 10 percent of the
proceeds are so used, that amounts, whether or not re-
ceived by the Issuer, with respect to such private busi-
ness use, do not, under the terms of this Ordinance or any
underlying arrangement, directly or indirectly, secure or
provide for the payment of more than 10 percent of the.
debt service on the Certificates, in contravention of
section 141(b)(2) of the Code;
(b) to take any action to assure that in the event
that the "private business use" described in subsection
(a) hereof exceeds 5 percent of the proceeds of the
Certificates (less amounts deposited into a reserve fund,
used for
if then the
"r5 percent is elated" and not
business amount use" in which excess is of
o "private
"disproportionate", within the meaning of section
141(b)(3) of the code, to the governmental use;
(c) to take any action to assure that no amount
which is greater than the lesser of $5,000,000, or 5
percent of the proceeds of the Certificates (less amounts
deposited inter a reserve fund, if any) is directly or
Ir indirectly used to finance loans to persons, other than
state or local governmental units, in contravention of
section 141(c) of the Code;
r-i) to refrain from taking any action which would
1 otherwise result in the Certificates being treated as
"private activity bonds" within the meaning of section
141(b) of the Code;
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(e) to refrain from taking any action that would
result in the Certificates being "federally guaranteed"
within the meaning of section 149(b) of the Code;
I
(f) to refrain from using any portion of the pro-
ceeds of the Certificates, directly or indirectly, to
acquire or to replace funds which were used, directly or
indirectly, to acquire investment property (as defined in
section 148(b)(2) of the Code) which produces a materially
r higher yield over the term of the Certificates, other than
investment property acquired with
(1) proceeds of the Certificates invested for a
j reasonable temporary period of 3 years or less until
L such proceeds are needed for the purpose for which
r the Certificates are issued,
(2) amounts invested in a bona fide debt
M service fund, within the meaning of section
j 1.103-13(b)(12) of the Treasury Regulations, and
M ! (3) amounts deposited in any reasonably re-
quired reserve or replacement fund to the extent such I
amounts do not exceed 10 percent of the proceeds of J
the Certificates;
(g) to otherwise restrict the use of the proceeds of
the Certificates or amounts treated as proceeds of the
Certificates, as may be necessary, so that the certifi-
cates do not otherwise contravene the requirements of
section 148 of the Code (relating to arbitrage) and, to
the extent applicable, section 149(d) of the Code (relat-
ing to advance refundings);
(h) to pay to the United States of America at least
once during each five-year period (beginning on the date
of delivery of the Certificates) an amount that is at
least equal to 90 percent of the ''Excess Earnings", within
the meaning of section 148(f) of the Code and to pay to j
the United States of America, not later that 60 days after I
the Certificates have been paid in full, 100 percent of
the amount then required to be paid as a result of Excess
Earnings under section 148(f) of the code; and
(i) to maintain such records as will enable the
Issuer to fulfill its responsibilities under this section
and section 148 of the Code and to retain such records for
at least six years following the final payment of princi-
pal and interest on the Certificates.
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It is the understanding of the issuer that the covenants
contained herein are intended to assure compliance with the
Code and any regulations orulingstheretogatIn by ethe vent that
Department of the Treasury pursuant
regulations or rulings are hereafter prolic ble to the Certifi-
or expand provisions of the Code, as is comply with any
cates, the Issuer will not be required
covenant contained herein to the extent that such modification
or expansion, in the opinion of nationally-recognized bond
counsel, will not adversely affect the exemption from federal
income taxation of interest on the Bonds under section 103 of
the Code. In ter promulgated which event impose additional requirements which are es to applicable to the Certificates, the theuextentenece sary,plin
with the additional requirements the opinion of nationally-recognized bond counsel, to preserve
the Code of interest on the
the
Certificatesnunfrom federal der section 103 of income
and shall F C Tdelivered nitoial
Section 14. SALE OF INITIAL
Certificate is hereby sold _ for cash for the par value
thereof and accrued nterItttigthereon
herebytofficiallydfound' deter-
mpremium of S~
i ~ mined, and declared that the Initial Certificate has been sold
l Notice of
at public sale to the bidder offering pursuant to can Oefi in erect cost,
after receiving sealed bids
Sale and Bidding Instructions and Official Statement dated
October 10, 1989, prepared and distributed in connection with
the sale of the initial Certificate. Said Official Notice of
Sale and supplement, orc amendment thereto h ve ebeen,anddare
hereby approved by y
addenda, the Issuer, and their use in the offer and sale of the Certificates is hereby approved. It is further the and officiall
econtained ind sdeclared aid Officialt N taco of statements
Sale
and re
spects, toe the beat knowledge eanddbelief cofithe City C uncil-
and the issuer. {
Section 15. INTEREST EARNINGS ON CERTIFICATE PROCEEDS. I
Interest earnings derived from the investment of proceeds from
the sale of the Initial Certificate shall be used along with
other proceeds for the construction of the improvements and
purchases for which the Certificates are issued; provided that
' after completion of such improvements and purchases, if any of
{ j such interest earnings remain on hand, such interest earnings
Pere Sinki. is
fu that sanan interest eaurnin s on
shall be rovided, hove er, i
further p
certificate proceeds which are required to be rebated to the
United States of America pursuant to Section 13 hereof in order
27
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to prevent the Certificates from being "arbitrage bonds" within
the meaning of the Code shall be so rebated and not considered
as interest earnings for thq rjrposes of this section.
Section 16. FURTHER PROCEDURES. The Mayor of the Issuer,
the City Secretary of the Issi;er, and all other officers,
employees, and agents of the Issuer, and each of them, shall be
,nnd they are hereby expressly authorized, empowered, and
directed from time to time and at any time to do and perform
all such acts and things and to execute, acknowledge, and
deliver in the name and under the corporate seal and on behalf
of the Issuer all such instruments, whether or not herein
mentioned, as may be necessary or desirable in order to carry
---1 out the terms and provisions of this Certificate Ordinance, the
Certificates, the sale of the Certificates, and the Notice of
Sale and Official Statementi and the Director of Finance of th3
City shall cause the expenses of issuance of the Certificates
I to be paid from the proceeds of sale of the initial Certifi-
cate. In case any officer whose signature shall appear on any
Certificate shall cease to be such officer before the delivery
of such Certificate, such signature shall nevertheless be valid
and sufficient for all purposes the same as if such officer had
remained in office until such delivery.
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- AT-AL
for launch MIGHT 31
Shuttle ready
with Jupiter-bound ,e a~ craft
pUota testa,
pow Earth
By Howard Benedict apacecrafR" said ciayne Yea.es, is>dfcatorthatabowaairspeed,
U.m. Uftoff wag pumping OM "It is the Rolls-Royce of era na vlBation aide ouch as the
J1PAeroepaawriter oneotthemiadonma°agen. reased
Cape Canaveral. Fla. - Hun• The shuttle and lts t3 liit The countdown Drog
astronauts were Scheduled normally as the la hall a
drede of armed tecurlty tl ~ moor, of )yquid Oxygen patrolled Against anti-nuclear off at scheduled •fa 1Dast Thursday but° more trespassers
ae the shuttle Atlantis rom. into Atlantis' ex• engine was fueled for thte af-owered one ~ mausno°•d and d to ~hydrogen at 4:07 A.m. Fueling
launch with its plrlonlum pov ~ replaced. was completed at about 8:45 a.m., for RW-
Gam =proobebltualG en U ; hate Monday, a faulty naviga about 15 minutes ahead of
ve trd sophisticated lieu! unit wan rePtaced without tched~e,
moat expensl any delay, said NASA. Weather foreeusta were favor- unmanned spacecraft ever built cappuooaing able, with an 60 probe.
and lo expected W Biv b of dlepiay mdriver eunit, an electro°le bllityoffairWasitlaunchtime• loot yet at the mysteries box in a console between the
another planet.
• Int
X begins three-part s""
ertw tax rollback issue
on prop l
U and three Giber. Voting booth loc id", o.asna+t
In voting On ,~t,,~tedfed courts. Mj ~..~,~~,1~090 to Only & lew eacb, ude: E
Issue$ thel) involved entonCountYDroPe~ tal Today's behlttd the ~ ton srlne 0owrnment Center.
too N. Vauy hruvm, ReetrkieC to tloroeoo
• rollback issue and blase C
OG* thehis
c ngItprogosedamend- County rollbackelectionsetfor ;;nonce 20, 2w 3M. 3J. 3K 3t, 3M,
. Mtert~tl
menu to theTexss Constitution Nov. 7. 3K 3P, 3R 37CoMWMMaIn
be the focus of a three-part Explanotions Of the 31 • rev rkw tort C tackkv on .
will 16
Sala in the Dento Rftvrd' „roofte°tstotheTexAACoo- bYreet Restricted to !A 1a LMeabM
which begs today on
a"GICK atltutloowill beprinted 'AWe 0The C*M coraTM^ent caner
pagellA. wbo DentooRerord'Cltro de 6301 MOM SL Restricted a prrckrce MONek
flentoo County residents, Thursday in the Lot of the 26.20.20.2N, 29.2V B a 6113 t
f may cast their absentee votes
N. JO beginning at 9 a.m.Wddnesday, An ~y registered voters will be to VW r% ~ 2 . 2j .mom
will be offered an htdeplh look ~,d to vote absemfee from 9 e tx L Tv t o0
at the prM and cons of rollback a.m. to 4:30 p.m. weekdays Is A* s of vN t*W4 preckXA s watfa
elections and the its of such Nov, 3. Polls WM be era Texas 3TT and Jrn•s 6ve.t n
electiotsinother {rom9a:m.to5p,m.0o Roenowa, Ra.ttrtcM to txec~ncts 3A.
Voters' decision 60 whether to t~Sawrdaye, Oct, 31 and Oct. 29. 36.30. 30.3£ 30 W 33, "Rat
refund 115 50 miL 6 to those Eight abuatee PO" p~" IS x+6'21tof tM ur Sea precinct 6 Ism who pdd property taxes in 1966 ineladmg L; iot eto pwWO up e. 4Ca
v4 des t l
will mark the resolution of a am st~ St, which Is 4 and t
! ear-old Issue that started a to voters from Any M% 301 "0 c o M
1 whencamrminl~gyincressed op dam
f ta:ca W percent to fund • p~OC~
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