HomeMy WebLinkAboutO-1988-1600
e
.
/'00
ORDINANCE NO.
AN ORDINANCE CONSENTING TO THE ISSUANCE AND SALE OF BONDS BY LA
PORTE AREA WATER AUTHORITY.
WHEREAS, the La Porte Area Water Authority (the "Authority")
was created as a conservation and reclamation district in Harris
County, Texas pursuant to the provisions of Article XVI, Section 59
of the Texas Constitution and Chapter 729, pages 2678 et seq. Acts
of the 67th Legislature of the State of Texas, Regular Session,
1981 (the "Act")~ and
WHEREAS, Section l2Cb) of the Act authorizes the Authority to
borrow money from time to time for the purposes specified in the
Act by, among other things, issuing and selling revenue bonds~
provided, however, that the Authority may borrow money only with
the prior approval of the city council (the "City Council") of the
City of La Porte (the "City")~ and
WHEREAS, the Board of Directors of the Authority has informed
the City Council that the Authority desires to issue and sell its
Contract Revenue Bonds, Series 1988, in the aggregate principal
amount of $5,000,000, in order to finance the acquisition of an
undivided equity interest in the Southeast Water Purification Plant
Cthe "Southeast Plant") under construction by the City of Houston
and for other related purposes~ and
WHEREAS, the City has entered into a Water Supply Contract
with the Authority for the City to purchase water treated at the
Southeast Plant from the Authority~ and
WHEREAS, the issuance and sale of the Bonds by the District on
the proposed terms and conditions is satisfactory and in the best
interest of the City and the City Council desires to consent tot he
issuance and sale of the Bonds~ therefore
BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF LA PORTE:
Section 1.
That the City Council of the City of La Porte
hereby consents to the issuance and sale by La Porte Area Water
.
e
Ordinance No. /600 ,Page 2
Authority of up to $5,000,000 of its Water Supply Contract Revenue
Bonds, Series 1988, substantially in accordance with the terms and
conditions set forth in the proposed "Resolution Authorizing the
Issuance and Sale of $5,000,000 Water Supply Contract Revenue
Bonds, Series 1988, and Authorizing an Agreement with the Paying
Agent/Registrar" attached hereto as Exhibit "A" and hereby made a
part of this Ordinance.
Section 2.
That the City Council officially finds, deter-
mines', recites and declares that a sufficient written notice of the
date, hour, place and subject of this meeting of the City Council
was posted at a place convenient to the public at the City Hall of
the City for the time required by law preceding this meeting, as
required by the Open Meetings Law, Article 6252-17, Texas Revised
Civil Statutes Annotated~ and that this meeting has been open to
the public as required by law at all times during which this or-
dinance and the subject matter thereof has been discussed, con-
sidered and formally acted upon.
The City Council further rati-
fies, approves and confirms such written notice and the contents
and posting thereof.
Section 3.
That this Ordinance shall take effect and be in
full force immediately upon and after its adoption.
PASSED AND APPROVED THIS THE /~~DAY OF ~, 1988.
CITY OF LA PORTE
By:4~~~~
o MAN MALONE, yor '
ATTEST:
BY:_~~
CHERIE BL CK, City Secretary
APPROVED:
I I
.
e
(Ccg~v
\
RESOLUTION AUTHORIZING THE ISSUANCE..
AND SALE OF $5,000,000
CONTRACT REVENUE BONDS, SERIES 1988
AND AUTHORIZING AN AGREEMENT WITH THE
PAYING AGENT/REGISTRAR
WHEREAS, La Porte Area Water Authority (the
"Authority") was organized pursuant to the provisions of
Section 59 of Article XVI of the Constitution of the State
of Texas, by special act, namely, Chapter 729, page 2,678 et
seq., of the 67th Legislature of Texas, Regular Session,
1981 (the "Act"), and operates under the Act and Chapter 54
of the Texas Water Code, as amended; and
WHEREAS, the Act authorizes the Authority, with
the approval of the City Council of the City of La Porte, to
issue its revenue bonds, which revenue bonds may be secured
by and payable from pledges of all or any part of the
revenues, receipts or assets of the Authority or the revenues
of anyone or more leases or 'other contracts made; and
WHEREAS, the Board of Directors has determined
that it is appropriate to issue its first series of revenue
bonds in the aggregate principal amount of $5,000,000, the
net proceeds of which are to be used to acquire an undivided
interest in the Southeast Water Purification Plant under
construction by the City of Houston, Texas, to provide a
reliable supply of potable fresh water to serve persons and
businesses in the Authority and in certain areas in Harris,
County, Texas outside the Authority but within its authorized
service area~ and
WHEREAS, the Board of Directors desires to proceed
with the issuance of such Bonds; therefore.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF LA PORTE AREA
WATER AUTHORITY THAT:
Section 1. CERTAIN DEFINITIONS
When used in this Resolution, except in Sections
3.01 through 3.04, the terms listed below shall have the
meanings indicated opposite each of them, unless .otherwise
expressly provided or unless the context otherwise requires:
e
e
"t..
....,
"Act" shall mean Chapter 729, page 2,678 et seq.,
Acts of the 67th Legislature of the State of Te~as, Regular
Session, 1981, and any future amendments thereto.
" ..
"Additional Bonds" shall mean the additional
parity bonds which the Authority expressly reserves the
right to issue in Section 8 of this Resolution which may be
issued in the future. When used in the proper context,
Additional Bonds may include refunding bonds.
"Authority" shall mean La Porte Area Water Authority,
and any other public agency succeeding to the powers,
rights, privileges and functions of the Authority and, when
appropriate, the Board of Directors of the Authority. .
"Board of Directors" or "Board" shall mean the
governing body of the Authority. '
"Bond" or "Bonds" shall mean any Bond or all
Bonds, as,.the ca~e ma~ be, of the issue of $5,000,000 La
Porte Area Water Authority ,Contract Revenue Bonds, Series
1988, dated as of June 1, 1988, authorized and issued
pursuant to this Resolution.
"Bond Fund" shall mean the Authority's interest
and sinking fund for the Bonds established by Section 7.01
of this Resolution.
"Construction Fund" shall mean the fund of the
Authority established pursuant to Section 7.01 of this
Resolution into which the balance of the proceeds of the
sale of the Bonds shall be placed.
"Contingency Fund" shall mean the fund established
pursuant to Section 7.01 hereof and to be maintained pursuant
to Section 7.06 hereof as long as the Bonds and any Additional
Bonds are outstanding.
"Distribution System" shall mean those facilities
used to transport treated surface water from the termination
of the Transmission Sy?tem to each Participant's take point.
'''~Government Obligations" .shal1 me'an direct ob1iga-
,tions j-of j ~or obl'igat'ions{' the full. and- t'ime1y. 'payment 'of the
principal of and interest' on which are unconditionally
guaranteed by, the United States of America, which are
non-callable and which at the time of investment are legal
investments for the Authority under the laws of the State of
Texas for the moneys proposed to be invested therein.
022DESAO/024C05
-2-
e
e
".
";i
"Houston" shall mean the City of Houston, Texas.
"Houston coritiact" shall mea~ the contract effective
as of December 4, 1987, pursuant to which the Authority has
agreed to purchase an undivided interest in the Southeast
Plant and has ag~~ed to purchase' potable treated surface
water from the Southeast '.P1ant~ .:'.' _. .....
"Initial Bond (s) II shall mean the Bonds numbered
from T-l through T-25 as provided for in Section 2.02.
"La Porte" shall mean the City of La Porte, Texas.
"MGD" shall mean million gallons per day. As used
in this Resolution, "MGD" shall refer to a quantity of water
during a period of time expressed for convenience in terms
of an average daily quantity during a calendar month (unless
a different period of time is specified).
. "Net Revenues" shall mean all Revenues received by
the Authority less,the Operating and Maintenance Expenses of
the Authority. '.
"Operating and Maintenance Expenses" shall mean
all costs incurred by the Authority in providing potable
water to the Participants under the Water Sales Contracts
(except for amounts funded by the proceeds of Bonds or
Additional Bonds, debt service on such Bonds or Additional
Bonds and amounts required to fund the Reserve Fund, the
Contingency Fund and the Rebate Fund), including all operation
and maintenance costs billed to the Authority by Houston,
all operating and maintenance costs incurred by the Authority
related to the Transmission System and the Distribution
System, all administrative costs incurred by the Authority
and the cost of all insurance maintained by the Authority.
"Partic'ipants"- 'shal1 mean (a) La Porte, the
Bayshore Municipal Utility District, the City of Morgan's
Point, Texas, and the City of Shoreacres, Texas, all of
which are located entirely within Harris County, Texas, and
each of which has executed a Water Sales Contract with the
Authority: and (b) any customer who executes a Water Sales
Contract with ,.the,..A1Jthority from and after the da:t~ .of ,
exe~.u:tion of,. s:u;ch. 'c:6"n)=:f#~t..!..:.-, ":.~:', ; ~.: ::_:. ...~;.,~~. _: :..,~<~ ",'" _ '.
. "Paying Agent/Registrar" shall mean First City
National Bank of Houston, Houston, Texas, or its successor
appointed pursuant to Section 2.08.
022DESAO/024C05
-3-
e
e
.~
'",
-: ~
"Rebate Fundll shall mean the special fund or
account established and to be main~ained pursuant to Section
7.01 hereof for the benefit of the United States of America
and the Authority, as their interests may appear.
"Reserve Fund" shall mean the special fund or
. account "es't,ab1is'hed 'and to be maintained pursuant to Section
7.01 hereof for the benefit, and to secure the payment, of
the Bonds and any Additional Bonds.
"Reserve Fund Amountll shall mean the amount
required to be accumulated and maintained in the Reserve
Fund under the provisions of Section 7.04.
IIRevenue Fundll shall mean the fund or account
created pursuant to Section 7.01 hereof and to be maintained
pursuant to Section 7.02 hereof so long as the Bonds and any
Additional Bonds'are outstanding.
'IIReve'riu'e's" 'shal1 mean"' '(a) aII' "income, fees and
charges received by the Authority from the Participants
pursuant to the Water Sales Contracts and (b) earnings and
income derived from the investment of moneys in any funds or
accounts (other than the Construction Fund and the Rebate
Fund) created and maintained by the Authority in connection
with the Authorityls operations under the Water Sales
Contracts, and including particu1ar~y the special funds
created hereunder for the payment and security of the Bonds.
". .' IISoutheast Plantll shall mean the Project described
in the Houston Contract'genera1ly, and specifically described
in Exhibit liB" to the Houston CQ~tract.
"Trans~ission Systemll shall mean those facilities,
including pipelines, easements, pumping and other devices to
deliver treated surface water from the take point at the
Southeast Plant to the points at which the water is delivered
to the Distribution System, which includes necessary storage
and pumping facilities:to deliver water to each Participant.
'"Water Sales Contractsll shall mean the contracts
between the'.Authority and ,'each of: ,the Participant's, all of
~which are, "or 'shall be,' 'in substantially similar form.
f.:.:'.: ~L::".. ',-,,~.()r. C:'. 2.-"':=:. :::.:: "':":::.: .. . .
022DESAO/024C05
-4-
e
e
.\
-r ~
Section 2. DESCRIPTION OF BONDS
. . "
The authorization and description of the Bonds and
designation of certain rights respecting the Bonds shall be
as follows:
:.. .2.01...- '..Bond Amount, Name and Purpose. The Authority's
'Bonds to be designated as "LA PORTE AREA WATER AUTHORITY
CONTRACT REVENUE BONDS, SERIES 1988," are hereby authorized
to be issued and delivered in accordance with the Constitution
and laws of the State of Texas, in particular the Act and
Chap~er 5~ of the Texas Water Code, as amended, in the
principal amount of $5,000,000 for the purpose of purchasing
an undivided interest in the Southeast Plant. The Authority
hereby designates the Bonds to be a "qualified tax-exempt
ob1igation" within the meaning of Section 265(b) (3) (B) of
the Internal Revenue Code of 1986, as amended (the "Code").
2.02. Form, Numbers, Date and Denominations. The
Bonds shall be issued and delivered.in fully registered form
without coupons, shall be dated as of June 1, 1988 (the
"Initial Daten), and shall each be in denominations of
$5,000 or any integral multiple thereof (up to the maximum
principal amount of the Bonds maturing in the year involved).
Initially, there shall be 25 Bonds numbered consecutively
from T-1 through T-25 in order of their.maturity, each in
the principal amount set opposite the .year of maturity in
the schedule set forth in Section 2~03. Bonds registered
and delivered in exchange for any of the Initial Bonds -
surrendered for transfer or exchange shall be numbered from
R-l upward in the order that they are authenticated and
delivered by the Paying Agent/Registrar.
2.03. Interest, Maturity and Payment. The Bonds
shall bear interest (computed on the basis of a 360-day year
of twelve 30-daY.months) from the date of delivery, payable
June 1, 1989, and each December 1 and June 1 thereafter
until the principal sum is paid i.rl full. Payment of interest
shall be.made .to the .registered.owner of each Bond as shown
on the Bond Register provided for in Section 2.05 hereof as
of the 15th day of the calendar month next preceding the
.inte.rest .payment.:date ;py check .or draft mailed by the Paying
Agent/Registrar to the address 'of. each such 'owner a.s it
appears on such Bond Register on the date aforesaid. The
Bonds shall mature and become payable, subject to prior
redemption in accordance with the provisions of Section 2.04
hereof, on December 1 in each of the years and in the
principal amount set forth in the schedule below and shall
022DESAO/024C05
-5-
e
e
.....
bear interest at the,respe~tive rates per annum set forth
opposite the year of maturity in such schedule, to-wit: "
Year of
Maturity
,19,91 ,','
199,2' ,.::~,',
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
20ll
2012
2013
2014
2015
Principal
Amount
Interest
Rate
.-, :$, 80,000 4.95%
~5~'OOO ....... 5.15%
90,000 5.35%
95,000 5.55%
105,000 5.75%
110,000 5.95%
120,000 6.10%
125,000 6.25%
135,000 6.40%
145JOOO 6.50%
155,000 6.60%
165,000 6.70%
180,000 6.80%
... .. .--- 190,0 00' ...__.._~- -.. '6 ~-85%.-
205,000 6.90% '
220,000 6.95%
235,000 6.95%
250,000 6.95%
265,000 6.95%
?85,000 7.00%
305,000 7.00%
330,000 7.00%
350,000 7.05%
375,000 7.05%
,~OO,OOO 7.05%
The principal of the Bonds shall be payable, without exchange
or collection charges, in any coin or currency of the United
States of America which, on the date of payment thereof, is
legal tender for the payment of debts due the United States
of America, upon their presentation and' surrender as' they
.become due or at their earlier redemption date, if any, at
the principal offige of:the Paying Agent/Registrar.
2.04. Redemption of Bonds. The Authority reserves
the rigbt..to redeem; in,w~o~e. or. f~om ~ime to time in part,
all of, j:h~. ~o~ds c;m Pf?ce~er..1, 1998, or any interest
paym~nj: g~t~.... tAe+;eCl:~t~r.(;'::.~y~_paying. ~h:e pri~~,ipa~ 0 thereof and
'accrued interest thereon. The Authority shall, at least 45
days prior to the,date fixed for redemption (unless a
shorter notice shall be satisfactory to the Paying
Agent/Registrar), notify the Paying Agent/Registrar of such
022DESAO/024C05
-6-
.
e
date and, if less than all of the Bonds within any matur~ty
are to be redeemed, the particular Bonds within.each maturity
to be redeemed. The registered owner of any Bond, all or a
portion of which has been called for redemption, shall be
required to present such Bond to the Paying Agent/Registrar
for payment of the principal of, and accrued interest on,
that portion of the Bond called for redemption; provided,
however, upon the surrender of any such Bond, the Authority
shall execute and the Paying Agent/Registrar shall authenti-
cate and deliver to the registered owner thereof a new Bond
or Bonds of the same maturity in an aggregate principal
a~ount equal to the unredeemed portion of the Bond surren-
dered. Notice of redemption shall be given by mailing a
copy thereof by first class mail, postage prepaid, at least
30 days prior to the date fixed for redemption to the
registered owner of each Bond to be redeemed in whole or in
part at the address of such owner on the Bond Register;
provided, however, that failure to give such notice, or any
defect therein, shall not affect the validity of the proceed-
ings for the redemption of any Bond or portion thereof with
respect to which no such ~ai1ure or defect has occurred.
Any notice mailed as provided in this Section 2.04 shall be
conclusively presumed to have been duly given, whether or
not the registered owner receives the notice. . Prior to the
date fixed for redemption, the Authority shall deposit, or
cause to be deposited, with the Paying Agent/Registrar,
funds sufficient to pay in full the principal of all Bonds
or portions thereof called for redemption, together with
accrued interest thereon to the redemption date. Any Bond
or Bonds duly called for redemption, due provision for the
full payment of which has been timely made, shall cease to
bear interest from and after the date fixed for redemption.
2.05. Transfers and Exchanges of the Bonds. .The
Authority shall cause to be kept at the principal office of
the Paying Agent/Registrar a register (the "Bond Register")
in which, subject to such reasonable regulations as the
Authority and the Paying Agent/Registrar nlay prescribe,
registration of the Bonds and transfers of the Bonds shall
be made as provided herein. Upon surrender for transfer of
any Bond at the principal office of the Paying Agent/Registrar,
the Authority shall execute and the Paying Agent/Registrar
shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Bonds of the same
maturity, of any authorized denominations, bearing the same
rate of interest and of a like aggregate principal amount.
At the option of the registered owner of any Bond, it may be
exchanged for other Bonds of the same maturity, of any
authorized denominations, bearing the same rate of interest,
022DESAO/024COS
-7-
.
e
and of like aggregate principal amount, upon surrender of
the Bond to be exchanged at. the principal office of the
Paying Agent/Registrar. Whenever any Bond is so surrender~d
for exchange, the Authority shall execute, and the Paying
Agent/Registrar shall authenticate and deliver, the Bonds
which the registered owner of the Bond making the exchange
is entitled to receive. 'A11'Bonds issued upon any transfer
or exchange of any"Bond shall be the valid obligations of
the Authority, evidencing the same debt and entitled to the
same benefits under this Resolution, as the Bond surrendered
upon such transfer or exchange. Every Bond presented or
surrendered for transfer or exchange shall be duly endorsed,
or be accompanied by a written instrument of transfer in
form satisfactory to the Paying Agent/Registrar duly executed,
by the registered owner thereof or his attorney duly au-
thorized in writing. No service charge shall be made to the
registered owner for any registration, transfer or exchange
of Bonds, but the Authority or the Paying Agent/Registrar
may require payment of a sum sufficient to cover any tax or
other' governmental charge that may be imposed in connection
with, any transfer or exchange of Bonds. Neither the Authority
.nor the Paying Agent/Registrar shall be required to transfer
or exchange any Bond during the period of 15 days next
preceding any interest payment date or to transfer or
exchange any Bond during the 30-day period prior to the date
set for redemption of such Bond. .
2.06. Ownership of the Bonds. The Authority, the
Paying Agent/Registrar and any ,other person may treat the
individual, firm or corporation in whose name any Bond is
registered on the Bond Register as the absolute owner of
such Bond for the purpose of making and receiving payment of
the principal thereof and interest thereon and for all other
purposes, whether or not such. Bond is overdue, and neither
the Authority nor the Paying Agent/Registrar shall be bound
by any notice or knowledge to the contrary. All payments
made to any such pe~son, firm or corporation deemed to be
the owner of any Bond in accordance with this Section 2.06
shall be valid and' effectual and shall discharge the liabil-
ity of the Authority and the Paying Agent/Registrar to the
extent of the sums paid.
. .:. - .,'.. ..2.07. . .Execution of the Bonds. The Bonds shall be
e,xec.utedr.:on>behal,fd:lf ~the Authority':by :the 'president 'or Vice
President of the Board under the seal of the Authority
attested by the Secretary or Assistant Secretary of the
Board. Each such signature may be manually executed or
placed in facsimile on the Bonds, and the Authority's seal
may be manually impressed, printed or otherwise placed on
022DESAO/024C05
-8-
.
e
the Bonds. . Bonds receiving the manual or facsimile signa-
tures of individu~ls who were at the time the duly elected
or appointed officers of the Authority shall be binding upon
the Authority notwithstanding such individuals or any of
them shall cease to hold such offices prior to the certi-
fication, registration, . authentication or delivery of such
Bonds 'or. shall not ':have held such office on the date of such
Bonds, alr'as 'provided in the Act and the Bond Procedures
Act of 1981, as amended. The Initial Bonds, each payable to
the purchaser named in Section 14 hereof, shall be executed
and submitted to the Attorney General of Texas for approval,
and thereupon certified by the Comptroller of Public Accounts
of the State of Texas by his manual signature or by the
manual signature of one .of his deputies thereunto duly
authorized. No Bond authorized by this Resolution shall be
entitled to any right or benefit hereunder, or be valid or
obligatory for any purpose "unless the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent
shall have executed a "Registration Certificate substantially
in tne form'of'the Registration Certificate of Comptroller
of Public Accounts set forth in Section 3.02 hereof or the
Paying Agent/Registrar'shall have executed a Certificate of
Authentication substantially in the form of ' the Certificate
of Authentication of Paying Agent/Registrar set forth in
Section 3.03 hereof, and either such executed certificate
upon any Bond shall be conclusive evidence that such Bond
has been executed and delivered pursuant to this Resolution.
2.08. Paying Agent/Re~istrar. The Authority
covenants at all times to mainta1n a Paying Agent/Registrar
for the Bonds meeting the qualifications herein set forth,
and, subject to the remaining provisions of this Section
2.08, hereby appoints First City National Bank of Houston,
Houston, Texas, initially to serve in such capacity. The
form, terms and provisions of the proposed Agreement between
the Authority and First City National Bank of Houston,
Houston, Texas, providing for such appointment, a draft of
which is attached to this Resolution as Exhibit A, are
hereby approved'in all respects, and the President or Vice
President and Secretary or Assistant Secretary of the Board
are hereby authorized and directed to execute and deliver an
agreement substantially in the form of such Agreement, with
such changes thereJ.n.-JIJ?.:...-.1;h.~.:..Q.~!ic_~rl:!_~~ecuting the same
Sh~111;.8a:s':evideilGed':";by;~their.'-signatures' there.on; approve".' :.
The Authority expressly'reserves the right to appoint one or
more-successor Paying Agent/Registrars by (1) filing with
the Paying Agent/Registrar then serving a certified copy of
a resolution or order giving notice of the termination of
the Authority's agreement with such Paying Agent/Registrar
022DESAO/024C05
-9-
e
e
and appointing a succe~s9r and (2) giving notice to all of
the registered owners of the Bonds and to the M~nicip~l
Advisory Council of Texas or its successor. Every Paying
Agent/Registrar appointed hereunder shall at all times be a
corporation organized and doing business under the laws of
the United States o~.America or of any State, authorized
under such laws .to exercise.trust powers, and subject to
supervision or examination by federal or state authority.
2.09. Mutilated, Lost, Destroyed or Wrongfully
Taken Bonds. If (1) any mutilated Bond is surrendered to
the Paying Agent/Registrar, or (2) the Authority and the,
Paying Agent/Registrar receive evidence to their satisfac-
tion of the destruction" loss or theft of any Bond, and (a)
there is delivered to the Authority and the Paying Agent/
Registrar such security or indemnity as may be required by
them to save ,each of them harmless and (b) the Authority and
the Paying Agent/Registrar have no notice that such latter
Bond has been acquired by a bona fide purchaser, then and in
either such event the Authority shall ~xecute and upon its
request the Paying Agent/Registrar shall register and
deliver, in exchange !or or in lieu of any such mutilated,
destroyed, lost .or stolen Bond, a new Bond of the same
maturity and of like tenor, interest rate and principal
amount, bearing a number not contemporaneously outstanding.
Upon the iss~anc~_of any ~e~,Bond under this Section 2.09,
the Authority. may require the payment by the registered
owner thereof of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto
and any other expenses '( inc1u'ding .-the' fees and expenses of
the Paying Agent/Registrar) connected therewith. Every new
Bond issued pursuant to.this Section 2.09 in lieu of any
mutilated, destroyed, lost or stolen Bond shall constitute a
replacement of the prior obligation of the Authority,
whether or not the mutilated, destroyed, lost or stolen Bond
shall b~ at the time enforceab1~.by .anyone, and shall be
entitled to all the benefits of this Resolution equally and
ratably with all other outstanding Bonds.
Section 3. FORM OF BONDS AND CERTIFICATES THEREON
. . ".' '.~' . T.he ,.fo~ ,of: ~the Bonds, .~nc1uding the. ~orm of
Recjist.r:~,t~on, C~r~i~i:~~te .9; t~~. :C~mptro1ler of ~ub1ic..
~ccounts~. :.of.:."tl'\e. .Stcate...of :,Te~as. ..to .b,e. ,~y:pe,d .or.,pr:inteq on
each of the Initial Bonds only, and the form of Certificate
of Authentication of.the Paying Agent/Registrar to be typed
or printed on all of the Bonds other than the Initial Bonds
shall be, respectively, substantially as set forth in this
Section with such appropriate insertions, omissions,
022DESAO/024C05
7'10-
e
e
substitutions and other variations as are permitted or
required by this Resolution and may have such letters,
numbers or other marks of identification (including identifying
numbers and letters of the Committee on Uniform Securities
Identification Procedures of the American Bankers Association)
and such legends and endorsements (including the reproduction
of an opinion of counsel), thereon as may, consistently
herewith, be established by the Authority or determined by
the officers executing such Bonds as evidenced by their
execution thereof.
3.01.
Form of Bond.
Registered
No.
Registered
$
UNITED STATES OF ~IERICA
STATE OF TEXAS
COUNTY OF HARRIS
LA PORTE AREA WATER AUTHORITY
CONTRACT REVENUE BOND
SERIES 1988
Interest Rate
Due
December 1,
Initial Date
June 1, 1988
La Porte Area Water Authority, in the County of
Harris, State of Texas (the "Authority"), for value received,
hereby promises to pay to
/
or registered assigns, on the due date shown above, the sum
of DOLLARS,
and to pay interest thereon, at the rate specified above,
from the date of delivery, beginning June 1, 1989, and semi-
annually thereafter on June 1 and December 1 of each year
until the principal sum shall have been paid, such interest
to be computed on the basis of a 360-day year of twelve
30-day months. The principal of this Bond is payable in
lawful money of the United States of America, without
exchange or collection charges, at the principal corporate
trust office of First City National Bank of Houston, Houston,
Texas, or its successor (the "Paying Agent/Registrar") upon
presentation and surrender of this Bond. The interest on
this Bond payable on any interest payment date will be paid
022DESAO/024C05
-11-
e
e
to the person, firm or corporation in whose name this Bond
is registere9 at th~ close of business on the 15th day of
the calendar month next preceding such interest payment date
by check or draft dated as of the interest payment date and
mailed to such registered owner.
'.:" *' it. * * * *. * -* * * "
(Additional Provisions of the Bonds)
(To be typed on the face of the
Initial Bonds and all non-printed Bonds
and printed on the back-
of all printed Bonds)
THIS BOND is one of the series specified in its
title issued in the aggregate principal amount of $5,000,000
(the "Bonds") pursuant to a Resolution (the "Bond Resolu-
tion") duly adopted by the,Board of Directors of the Authority
for the purpose of purchasing an undivided interest in the
Southeast Water Purif~9a~i9n P1a~t under construction by the
City of Houston, Texas, under and in the strict conformity
with the Constitution and laws of the State of Texas,
including without limitation Chapter 729, pages 2,678 et
seq., Acts of the 67th Legislature of Texas, Regular Session,
1981, and Chapter 54 of the Texas Water Code, as amended.
Capitalized terms used herein have the respective meanings
assigned to them in the Bond Resolution.
The Authority expressly reserves the right to
issue additional bonds on a parity in all respects with the
Bonds, in accordance with the terms and conditions set forth
in the Bond Resolution. . .-. .
The Bonds, together with any additional bonds
issued by the Authority on a parity with the Bonds, are
payable solely from and secured by a lien on and pledge of
the Net Revenues of the Authority. Reference is hereby made
to the Bond Resolution for a description of the covenants by
which the Bonds are secured, the respective rights there-
under of the registered owners of the Bonds and the Authority
and the terms.upon which the Bonds are, and are to be,
authent~cated'and' delivered. -' '.:'
J <-...:' ,j: m~;'The :Bonl:i'~ d~' ~nat. consti triteha, -'legal cir '-equi table
piedge~- charge, lien or'encumbrance upon any property or
assets of the Authority other than the Net Revenues and
other moneys and securities pledged under the Bond Resolution.
The owner hereof shall never have the right to demand
payment of this obligation from any other revenues or
022DESAO/024C05
-12-
e
e
properties of the.Authority, or from any funds raised or to
be raised by taxation by the Authority, the City of La "
Porte, Texas, the Stat~ of Texas or any subdivision of any
of them.
The Authority. has reserved the right to redeem, in
whole or from time to time in part, all of the Bonds on
December 1, 1998, or any interest payment date thereafter,
by paying the principal thereof and accrued interest thereon.
If less than all of the Bonds are to be redeemed, the
Authority shall designate the principal amount of Bonds of
each maturity to be redeemed and the particular Bonds within
each maturity in integral multiples of $5,000. At least 30
days' prior notice of any such redemption shall be given by
mail as provided in the. Bond Resolution. Any Bond or Bonds
duly called for redemption, due provision for the full
payment.of which has. been timely made, shall cease to bear
interest from and after the date fixed for redemption.
'. As provided in the Bond Resolution and subject to
certain limitations therein set forth, .this Bond is transfer-
able on the .Bond Register of the Authority, upon surrender
of this Bond for,transfer at the principal office of the
Paying Agent/Registrar, duly endorsed, or accompanied by a
written instrument of transfer in form satisfactory to the
Paying Agent/Registrar duly executed, by the registered
owner hereof or his attorney duly authorized in writing, and
thereupon one'or more new fully registered Bonds of the same
maturity, of authorized denominations, bearing the same rate
of interest and for the same aggregate principal amount will
be issued to the designated transferee or transferees.
. Neither the Authority nor the Paying Agent/Registrar
shall be required (1) to transfer or exchange this Bond
during the period of 15 calendar days next preceding any
interest payment date or (2) to transfer or exchange this
Bond during the 30-day period prior to. the date fixed for
redemption of this Bond. '
The Authority, the Paying Agent/Registrar and any
agent of either of them may treat the person, firm or
corporation in whose name this Bond is registered as the
owner he~eof for the-purpose of receiving payment as herein
provided and for all. other purposes, whether or not this
Bond be ov~r.du~, ..and :nei.~her:::th~ ".A'4-tl)ori ty i" :the' Paying - . .: .
Agent/Registrar.nor any 'such agent shall be affected by
notice or knowledge to the contrary.
022DESAO/024C05
-13-
e
e
It is.hereby certified, covenanted and represented
that all acts, conditions .and things required to exist or to
be performed or done precedent to or in the issuance of this
Bond in order to render the same a l~gal, valid and binding
obligation of the Authority have been performed, exist and
have been done in regular and due time, form and manner, as
required by law, 'and that .the issuance of the Bonds does not
exceed any constitutional or statutory limitation. This
Bond shall be construed in accordance with and shall be
governed by the laws of the State of Texas.
* * * * * * * * * *
(Legend-to be printed on the
face of all printed Bonds)
REFERENCE'IS HEREBY MADE TO FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER
PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF
FULLY SET FORTH IN THIS PLACE.
* *.* * * * * * * *
(Additional paragraph to be typed
on Initial Bonds only)
This Bond shall not be entitled to any right or
benefit under the Bond Resolution, or be valid or become
obligatory for any purpose, unless the Comptroller of Public
Accounts of the State of Texas or' his duly authorized agent
shall have executed the Registration Certificate of Comp-
troller of Public Accounts endorsed hereon.
(Additional paragraph to be typed or printed on the
face of all Bonds other than the Initial Bonds)
This Bond shall not be entitled to any right or
benefit under the Bond Resolution, or be valid or become
obligatory for any.purpose, unless the Paying Agent/Registrar
shall have executed the Certificate of Authentication
endorsed hereon.
.* ,* * * *. *. * * . *. .*
~'_.".'" h'__.__...;
.::.~ ~! :"
.:.;(..:.::. I.a!;'.'~ P_. :~'.. ". ... f.:.._. ""0.
. 'IN WITNESS WHEREOF, this Bond has been signed by
the manual, or facsimile signature of the President or Vice
President of the Board of Directors of the Authority and
attested by the manual or facsimile signature of the Secretary
022DESAO/024C05
-14-
e
e
or Assistant Secretary of the Board of Directors of the
Authority, and tbe'official sea~ of the Au~hori~y has been
manually impressed, printed or otherwise placed hereon.
LA PORTE AREA WATER
AUTHORITY
By
Vice President, Board of Directors
[Authority's Se.l].
ATTEST:
Secretary, Board ~f Directors
3.02. Form of Registration Certificate of
, Comptroller of Public Accounts.
.(To be typed on the Initial Bonds only)
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
s
s
s
s
REGISTER NO.
. . . . . . . . . . . .
THE STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of
record in my office a certificate to the effect that the
Attorney General of the State of Texas has approved this
Bond, and further that this Bond has been registered this
day by me.
,
WITNESS my signature and seal of office this
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comptroller of Public Accounts
of the State of Texas
(COMPTROLLER'S SEAL)
022DESAO/024C05
-15-
..
e
3.03.
(To
. Form of Certificate of Authentication
of Paying Agent/Registrar. .
be typed or printed on all Bonds
other than the Initial Bonds)
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds referred to in the within
mentioned Bond Resolution.
FIRST CITY NATIONAL BANK OF
HOUSTON, as Paying Agent/
Registrar
Da ted: . . . . . . . . . . . . . . . . . . .
By. . . . . . . . . . . . . . . . . . . . . . . . . .
Authorized Signature
3.04.
.. .~ ...
FOrm' of .Assignment. .
ASSIGNMENT
FOR VALUE RECEIVED the'undersigned hereby sells,
assigns and transfers unto (Print or typewrite name,
address and zip code of transferee) .....................
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.... ............................. ........ ......... .......
(Social Security or other identifying number:............
..................................) the within Bond and
all rights thereunder, .and hereby irrevocably constitutes
and appoints ......... ~ . . . . . ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED: ................
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.......................
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
Signature guaranteed by:
Section 4. APPLICATION OF BOND PROCEEDS
Proceeds from the sale of the Bonds will be dis-
bursed in accordance with this Section.
4.01. Deposit into the Construction Fund. The
proceeds of the sale of the Bonds, as received, shall be
022DESAO/024COS
-16-
.
.
deposited into the Construction Fund. Of the total depo.sit,
$257,000 shall be deposited into a separate nCo~struction
Contingency Account, II and such amount shall be used solely
for the payment of (a) the purchase price of an undivided
interest in the Southeast Plant to the extent funds in the
General Account of the Construction Fund for such purpose
are insufficient~ or (b) interest on the Bonds if the
Authority has insufficient Net Revenues available for such
purposes. The remainder of the amount deposited in the
Construction Fund shall be deposited into the "Genera1
Construction Account" and shall be used for the payment of
(x) the expenses incidental to the issuance of the Bonds,
including fiscal, legal and engineering fees and expenses,
including without limitation expenses incidental to the
organization and administration of the Authority, (y) the
purchase price of an undivided interest in the Southeast
Plant in accordance with the provisions of the Houston
Contract and (z) to the extent any Bond proceeds remain
after the payment of the amounts specified in (x) or (y),
the construction, purchase and acquisition of the Distribu-
tion System and the Transmission System; all to the extent
authorized or permitted under applicable law.
4.02. Surplus Construction Funds. Any moneys
remaining in either the Construction Contingency Account or
the "General Construction Account of the Construction Fund
after completion of the entire Distribution System and
Transmission System and the purchase of an interest in the
Southeast Plant as provided in the Houston Contract shall be
deposited into the Reserve Fund to the extent the Reserve
Fund Amount shall not be on deposit in the Reserve Fund at
the time and, to the extent any surplus remains, such
surplus shall be deposited into the Bond Fund to be used by
the Authority to pay interest on the Bonds; provided,
however, that the aggregate amount deposited into the
Reserve Fund pursuant to this Section shall not exceed the
amount the Authority determines in good faith (after such
consultation with counsel as the Authority deems. appropriate)
will not exceed 10 percent of the proceeds of the Bonds,
within the meaning of Section 148(d) (2) of the Code.
Section 5. PLEDGE OF NET REVENUES. The Bonds and
any Additional Bonds and the interest on all such bonds are
and shall be payable from and secured by an irrevocable
first lien on and pledge of the (a) Revenues after deduction
of the Operating and Maintenance Expenses; and (b) all
moneys and investments on deposit or credited to the Bond
Fund or the Reserve Fund~ and, subject only to Section 12
hereof, such Net Revenues and such moneys and investments
022DESAO/024C05
-17-
e
e
are hereby. pledged irrevocably for such purpose and are.
further pledged irrevocably to the establishment and main-
tenance of the Bond Fund, the Reserve Fund, the Rebate Fund
and the Contingency Fund.
Section 6. RATE COVENANT. The Authority covenants
and agrees with ,the owners of the Bonds and Additional
Bonds, if any, that,'
(a) it shall, subject to any restrictions con-
tained in the Water Sales Contracts, at all times fix,
maintain, charge and collect rates and charges for ser~ice5
rendered by the Authority which will provide Revenues at
least sufficient to pay all Operating and Maintenance
Expenses and to produce Net Revenues in an amount each year
not less than:
(1) the average annual principal of and
interest on the Bonds 'and any Additional Bonds at
the time outstanding Calthough amounts shall be
paid into the Bond Fund and Reserve Fund only in
accordance with Section 7.03 and Section 7.04
hereof); and'
(2) an amount necessary to make all deposits
now or hereafter required to be made into the Bond
Fund, the Reserve Fund, the Rebate Fund and the
Contingency Fund as provided herein or in the
resolutions authorizing any Additional Bonds.
(b) if the Authority should become legally liable
for any other obligations or indebtedness, the Authority
shall, to the extent permitted under the Water Supply
Contracts, fix, maintain, charge and collect additional
rates and charges for services rendered by the Authority
sufficient to establish and. maintain funds for the payment
thereof.
Section 7. REVENUES AND FUNDS.
7~01. Creation of Funds. All Revenues shall be
kept separate' and apart fr,9m_ all other funds of the Authority,
and the following special funds - ('!Fundsn) shall be established
and maintained' in' an o1ficiaL deposi~oty-bank or'depository
banks of the Authority so long as any of the Bonds or any
Additional' Bonds, or interest thereon, are outstanding and
unpaid:
022DESAO/024C05
-18-
e
e
(a) La Porte Area Water Authority Revenue Fund
(the "Revenue Fund")~
(b) La Porte Area Water Authority Bond Fund (the
II Bond Fund II ) ~
(c) La Porte. Area.....Wa ter Authority Reserve Fund
(the. IIReserve Fundll);
(d) La Porte Area Water Authority Rebate Fund
(the II Rebate Fund")~
(e) La Porte Area Water Authority Contingency
Fund (the "Contingency Fund"); and
( f) La Porte Area Water Authority Construction
Fund (the IIConstruction Fund") .
7.02. Revenue Fund. All Revenues of every nature
received shall be deposited from day to day as collected
into the Revenue Fund, and'al1 Operating and'Maintenance
Expenses sl)a1l be paid from the Revenue Fund upon approval
by the Board. The Revenues not actually required to pay
Operating and Maintenance Expenses shall be deposited from
the Revenue Fund into the other Funds provided for by this
Resolution, in the manner and amounts hereinafter provided,
and each of such funds sha11~have priority as to' such .
deposits in the order in which they are treated in the
following sections.
7~03. Bond Fund. There shall be deposited into
the Bond Fund:
(a) (i) On o~ be~ore each interest payment
date occurring prior to the first sale of water to
the Participants under the Water Sales Contracts
(the "Sale of Water") an amount equal to such
interest payment due on the Bonds, (ii) on or
before the 25th. day. of each month occurring after
the Sale of Water but prior to the first interest
payment date to occur after the Sale of Water, an
" ..~ount .whi~h .,is. ..~ot-.1ess t~an ~ fraction of the
.. " next .ipt~.re.s~. pay~~__nt due on t'he Bonds, such
.._ ;.',,::.. ~./~r~ct~~n~ .to:.~fi:V~7 :a~'n~~e.r.a:.~o'?= of pne --and a de!lomi- ".
.. ...... . nator equal..tcr the' mIinber o'f monthly deposits to
be made pursuant to this Section 7.03(a) (ii), and
(iii) on or before the 25th day of each month
thereafter, an amount which is not less than
022DESAO/024C05
-19-
e
e
one-sixth C1/6) of the next interest payment due
~ ~eBonds; a~ .
(b) On or before the 25th day of December,
1990~ and on or before the 25th day of each month
thereafter, an amount which is not less than
one-twelfth (1/12th) of the principal of the Bonds
maturing on the next December 1; provided, however,
such deposits shall be reduced by any amount
already on deposit in the Bond Fund that is, by
virtue of this Resolution, to be applied to the
payment of debt service on the Bonds. Amounts in
the Bond Fund shall be used to pay the principal
of, premium, if any, and interest on, the Bonds
and any Additional Bonds, as such principal
matures and such interest becomes due. In no
event shall any amount in excess of the amounts
stated above be placed in the Bond Fund for the
payment of the principal of, premium, if any, or
interest on the Bonds and Additional Bonds, if
any, and any amount so placed may be withdrawn by
the Authority and replaced in the Revenue Fund.
7.04. Reserve Fund. There shall be deposited
into the Reserve Fund (a) on or before June 1, 1989, an
amount not less than nine sixtieths (9/60) of the average
annual principal and interest requirements on the Bonds, (b)
on or before each interest payment date occurring prior to
the Sale of Water, an amount not less than one tenth (1/10)
of the average annual principal and interest requirements on
the Bonds, and (c) on or before the 25th day of each month
occurring 'after the Sale of Water an amount not less than
one sixtieth (1/60) of the average annual principal and
interest requirements on the Bonds, to the end that there
shall be accumulated in the Reserve Fund within sixty-one
(61) months from the date of del~very of the Bonds an amount
not less than the average annual principal and interest
requirements for the Bonds~ provided, however, that Ci) on
each debt service payment date (other than the penultimate
debt service payment date) when the Reserve Fund Amount de-
creases, the amount in the Reserve Fund on such date (after
the application of any amount needed that day to pay princi-
pal or interest then due) accumulated pursuant to this
Resolution in excess of the decreased Reserve Fund Amount
shall be withdrawn from the Reserve Fund, deposited into the
Bond Fund and applied to the payment of debt service on the
Bonds on the next debt service payment date or dates until
so applied~ and (ii) on the penultimate debt service date
all of the amount in the Reserve Fund accumulated pursuant
022DESAO/024C05
-20-
e
e
to this Resolution '(after the application of any amount
needed that day to pay interest then due) shall be withdrawn
from the Reserve Fund, deposited into the Bond Fund and
applied to the payment of debt service on the Bonds on the
last debt service payment date. At no time shall the
Authority be required to deposit in the Reserve Fund proceeds
(as such term is,defined in'the COde) of the Bonds or any
Additional Bonds if'and to the extent such deposit would
adversely affect the exclusion from gross income for federal
income tax purposes of the interest on the Bonds. No
deposits shall be required to be made into the Reserve Fund
by virtue of this Resolution as long as the Reserve Fund
shail'contain the aggregate of the amounts required to be
deposited therein by reason of this Resolution and the
resolutions authorizing' any Additional Bonds, but if and
whenever the Reserve Fund is reduced below ~aid aggregate
amount, the aforesaid monthly deposits into the Reserve Fund
shall be resumed and continued until such time as the
Reserve Fund has been restored to said aggregate amount.
The Reserve Fund shall' be used to pay the principal of, or
interest on, the'Bonds and any Additional Bonds, at any time
when there is not sufficient money available in the Bond
Fund for such purpose. Any obligation in which money in the
Reserve Fund is invested shall be kept and held in an
official depository' bank of the Authority in escrow and in
trust for the benefit of the holders of the Bonds and any
Additional Bonds, and shall be promptly sold and the proceeds
of sale applied to the making of all payments required to be
made from the Reserve Fund.
7.05. Rebate Fund. The Rebate Fund is hereby
established by the Authority for the benefit of the United
States of America and the Authority, as their interests may
appear pursuant to this Resolution. There are hereby
established within the Rebate Fund two separate accounts to
be known as the Deposit Account and the Earnings Account.
(a) Earnings Account. As of each annual anniver-
sary date of the issuance of the Bonds, the Authority
shall pay into the Earnings Account of the Rebate Fund
out of legally available funds an amount equal to the
aggregate,income (determined in accordance with federal
. .income.tax accounting principles) -attributable to the
.'" .-;(,ampunts. :in,:::the';.De.posi:t- Account .:of :..t.he :'Rebate: Fund for
the period ending on:such annual anniversary date of
the issuance of the Bonds and beginning on the immedi-
ately preceding annual anniversary date of the issuance
of the Bonds. Such amount is to be withdrawn from the
Deposit Account or may, at the election of the Authority,
022DESAO/024C05
-21-
.
e
be paid from other funds legally available therefor,.
An annual anniversary date for the Bonds s~all include
the first. date on which all of the Bonds have been
retired.
(b) Payments into the Deposit Account. The
Authority. shall pay, as of each annual anniversary date
of the issuance of the Bonds'and immediately after the
payment to the Earnings Account of the Rebate Fund on
such date, into the Deposit Account of the Rebate Fund
out of funds legally available therefor the amount, if
any, which is required to increase the amount on
deposit in the Deposit Account to the Tentative Rebate
Amount as of such annual anniversary date. On such
annual anniversary date, any amount on deposit in the
Deposit Account in excess of the Tentative Rebate
Amount shall be withdrawn from the Deposit Account and
deposited into the Revenue Fund. For these purposes,
the Tentative Rebate Amount as of a date is the amount
described, in Section 148(f) (3) (A) of the Code with
respect to' the Bonds determi~ed as of such date,. which
shall be determined in accordance with Temp. Treas.
Reg. Section 1.103-15AT(d) (1) and any applicable
regulations that are issued hereafter. An annual
anniversary date for the Bonds shall include the first
date on which all of the Bonds have been retired.
(c) Disbursement of the Rebate Fund. The amounts
in the Rebate Fund shall be used solely for the payment
to the United States of amounts described in Section
148(f) (2) of the Code and the regulations thereunder
all as may be applicable to the Bonds. Such payment
shall be made by the Authority in accordance with the
requirements of Section 148(f) (3) of the Code and the
regulations thereunder. The first installment of such
payment is to be made by the Authority within thirty
days after the fifth annual anniversary date of the
issuance of the Bonds, with each subsequent installment
of such payment to.be made within' five years after the
time at which the next preceding installment was
required. The last installment of such payments is to
be.made by..the.Authority.within 60 days after'the final
retiremen.t of all :.Qf: the -Bonds. .
;",:~.:/t:=;..._~ .":at ''':'~! . .i:;::::::~:.:..... ,_r.:c~......:J l". ~".. .....:.;!. ='\". ,-' ..
'1d) Rebate Fund Records. The Authority shall
maintain a record of its periodic determinations of the
Tentative Rebate Amount until six years after the final
retirement of all of the Bonds. Such records shall
summarize the manner in which the Tentative Rebate
022DESAO/024C05
-22-
-
e
Amount, if any, was determined on each date of det~r-
mination.
(e) No Prohibited Payments. The Authority
covenants and agrees with the holders of the Bonds not
to make a prohibited payment, within the meaning of
Temp. Treas. Reg. Section 1.103-15AT(d) (6), with
respect to the Bonds. A prohibited payment includes
the payment, or agreement to pay, to a party other than
the United States, an amount that is required to be
paid to the United States pursuant to Section 148(f) (3)
of the Code by entering into a transaction that results
in a smaller profit or a larger loss than would have
resulted if the transaction had been at arms' length
and if the yield on the issue had not been relevant to
either party; provided, however, that the direct
purchase of United States Treasury obligations from the
United States Treasury is not a prohibited payment.
The investment of bond proceeds in certificates of
deposit may, as provided in Temp. Treas. Reg.
Section 1.l03-15AT(d) (6) (ii), be a prqhibited payment.
The Authority covenants and agrees to maintain such
records as may be necessary to establish the absence of
any prohibited payment.
(f) Amendment. The provisions of this Section
7.05 may be amended by the Authority upon the receipt
of an opinion of bond counsel selected by the Authority
that such amendment will not adversely affect any
exclusion from gross income of interest on the Bonds.
7.06. Contingency Fund. The Authority agrees to
cause to be deposited to the Contingency Fund, commencing
upon the Sale of Water, from available Net Revenues, monthly
amounts equivalent to at least $2,083.33 until there has
been accumulated in said Fund a total sum (the "Minimum
Contingency Fund Balance") equal to $100,000. After the
Minimum Contingency Fund Balance has been accumulated, and
during such time as there is on deposit in the Contingency
Fund the Minimum Contingency Fund Balance, the aforesaid
monthly deposits to the Contingency Fund from the available
Net Revenues may be suspended. Any amounts deposited into
the Contingency Fund in excess of the Minimum Contingency
Fund Balance shall be at the sole discretion and determination
of the Authority. Deposits to the Contingency Fund from
available Net Revenues shall be subject to and contingent on
the availability of moneys after the payment of all amounts
required to be deposited to the Bond Fund, the Reserve Fund
and the Rebate Fund.
022DESAO/024C05
-23-
e
e
All moneys deposited and credited to the Contingency
Fund may be used for anyone or more of the following
purposes:
(a) Transfers to the Revenue Fund for payment of
Operating and. Maintenance Expenses;
Cb)' Transfers to the Revenue Fund for payment of
costs and expenses of replacing, reconstructing or
repairing damaged or destroyed properties of the
Transmission System or the Distribution System, when
such damage or destruction was a result of a cata-
strophic event, including, without limitation,'acts of
God, acts of public enemies, civil disturbances,
explosions, fires, floods, landslides, lightning,
earthquakes, hurricanes, storms, tornadoes or other
similar causes or events, and the proceeds, if any, of
insurance are insufficient to pay the cost of replac-
ing, reconstructing or repairing such damaged or
destroyed property or properties; or
(c) Paying the principal of, premium, if any, and
interest on the Bonds or any Additional Bonds on any
maturity, redemption or interest payment date when
moneys in the special funds created solely for the
payment and security thereof are. insufficient to make a
required payment 'on the Bonds or any Additional Bonds,
either or both.
7.07. Deficiencies. If in any month the Authority
shall fail to deposit into any Fund provided for by this
Resolution the full amounts required, amounts equivalent to
such deficiencies ih~fi be ~et a~art and paid into said
Funds from the first available and una110cated Net Revenues
of the following month or months, and such payment shall be
in addition to the amounts otherwise required to be paid
into said Funds during such month or months. To the. extent
necessary, the Authority shall increase the rates and
charges for its services to make up for any such deficiencies.
7.08. Surplus Funds. Notwithstanding the pro-
V1S10ns of-Section S'hereof, Net Revenues in excess of those
necessary: to establish. and maintain the.Funds required in
thi:s Resolution 'may "be :'used' for any' purpose' now: or' hereafter'
authorized by law.
7.09. Investment of Certain Moneys. Moneys in
the Bond Fund, the Construction Fund, the Reserve Fund and
the Rebate Fund may, upon authorization by the Board of
022DESAO/024C05
-24-
e
e
Directors, be invested in Ca) Government Obligations and (b)
certificates of deposit of any bank or trust company whose
deposits are insured by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance ,
Corporation, provided that such certificates of deposit, to
the extent that .they exceed the amounts covered by such
insurance, are fully secured in the manner required by law;
provided, however, that any investment in a certificate of
deposit may not be a prohibited payment, within the meaning
of Treas. Reg. S 1.103-15AT(d) (6), if at the time of such
investment Treas. Reg. S 1.103-15AT(d) (6) is applicable to
the Bonds. Any. obligation in which moneys from any Fund are
so' invested shall be kept and held at an official depository
bank of the Authority and shall be promptly sold and the
proceeds of sale applied to the making of any payments
required to be made from such Fund. All such investments
shall at all times be a part of the Fund from which the
moneys used to acquire said investments shall have come.
All earnings on such investments shall be credited to, and
losses thereon charged against, such Fund~ provided, however,
when the Bond F~nd, the Reserve Fund or the Contingency Fund
contains the full amount required at the time to be in such
Fund, any earnings shall be deposited in the Revenue Fund.
Notwithstanding any provision hereof to the contrary, any
investment of moneys in the Bond Fund shall be made so as to
mature or be subject to redemption at t~e option of the
owner or holder thereof 'on or prior to the date or dates on
which money therefrom will be required.
All Funds provided for by this Resolution shall be
secured in the manner and to the fullest extent required by
law for the security of public funds, and such Funds shall
be used only for the purposes and in the manner permitted or
required by this Resolution.
Section 8. ADDITIONAL BONDS.
8.01. Generally. The Authority expressly re-
serves the right hereafter to issue additional parity bonds
and other evidences of indebtedness now or hereafter autho-
rized by the Legislature of Texas (collectively, "Additional
Bonds"), and Additional Bonds, when issued, may be secured
by and.pay.ab1e .from a first lien on and pledge o~ the Net
Revenu~. i,n. .,th'e'.sc;une:mailn~r. 'a-rid . to._.tQ~ ..~.~rne ex~ent ~s are
the Bon'd's;" and the Bonds authorized herein' and the Additional
Bonds shall in all respects be of equal dignity. It is
provided, however, that no installment or series of Additional
Bonds shall be issued pursuant to this Section 8.01 unless:
022DESAO/024C05
-25-
e
e
(a) A certificate is executed by the President of
the Board and the General Manager of the Authority to
the effect that no default exists in connection with
any of the covenants or requirements of this Resolution
or the resolutions authorizing the issuance of all
Additional Bonds then outstanding:
(b) A certificate 'is executed by the President of
the Board and the General Manager of the Authority to
the effect that the Bond Fund, the Reserve Fund and the
Contingency Fund each contain the amount then required
to be on deposit therein~
(c) At the time of the adoption of the resolution
authorizing the issuance of Additional Bonds, the Net
Revenues for the most recent complete fiscal year, as
certified by a Certified Public Accountant or firm of
Certified Public Accountants, were equal to at least
1.2 times the average annual principal and interest
requirements for all Bonds and Additional Bonds then
outstanding and for .:the series of Additional Bonds then
proposed to be issued: provided, however, should the
certificate of' the accountant certify that the Net
Revenues for the period covered thereby were less than
required above, and a change in the rates and charges
for services provided by the Authority pursuant to the
Water Sales Contracts became effective at least 60 days
prior to the scheduled date of adoption of the resolu-
tion authorizing such Additional Bonds, then such
Additional.Bonds may nevertheless be issued if an
independent. engineer or engineering firm having a
favorable reputation with .respect to such matters
certifies that, had such change in rates and charges
been effective for the period covered by the accoun-
tant's certificate, the Net Revenues for the period
covered by the accq'P,.n:t;.~nt 'fLc;:ertificate would have met
the test specified above: and
. (d)',. The. Additional Bonds are made to mature on
December 1 in each of the years in which they are
scheduled to mature.
8.02. Completion Indebtedness. The Authority
reserves the ..right., to:,'i:s'sue Additio'nal Bonds. .on: a. parity in
all respects with the Bonds secured by a first lien on and
pledge of. Net Revenues in the same manner and to the same
extent as are the Bonds. Such Additional Bonds may be
issued without complying with the provisions of Section 8.01
(a), (b) or (c), provided that such Additional Bonds are
022DESAO/024C05
-26-
.
e
issued solely for the purpose of providing the financin~ for
(a) amounts payable under the Houston Contract ~o purchase
the initial undivided interest in the Southeast Plant: and
(b) the completion of the initial Distribution System and
the Transmission System as contemplated by the Water Sales
Contracts. Any such Additional Bonds shall be made to
mature on December 1 in the years in which they are scheduled
to mature.
8.03. Refunding Bonds. The Authority reserves
the right to issue Additional Bonds on a parity in all
respect~ with the Bonds to refund all or any part of the
Bonds,- Additional Bonds or other indebtedness of the Author-
ity then outstanding (pursuant to any applicable law then in
effect) upon such terms and conditions as the Board of
Directors may deem to be in the best interest of the Author-
ity. Any such Additional Bonds shall be made to mature on
December 1 in the years in which they are scheduled to
mature. Additionally, if (a) the Additional Bonds are being
issued to refund obligations of the Authority other than the
Bonds or Additional Bonds, or (b) the total debt service for
all Bonds and Additional Bonds (assuming the issuance of the
refunding Additional Bonds proposed to be issued and the
defeasance of the Bonds or Additional Bonds proposed to be
defeased in such refunding) in any fiscal year through the
final fiscal year in which Bonds or Additional Bonds not
refunded are to mature shall be greater than the total
annual debt service for all Bonds and Additional Bonds had
such refunding not occurred, then the conditions specified
in Sections 8.01 Ca), (b) and (c) shall also be satisfied.
8.04. Inferior Lien Obligations. Nothing contained
in this Resolution shall prohibit or prevent, or be deemed
or construed to prohibit or prevent, the Authority from
authorizing and issuing bonds, notes, certificates, warrants
or other evidences of indebtedness for any corporate use or
purpose payable as to principal, premium, if any, and
. interest from the Net Revenues subje~t and subordinate to
the deposits and credits required to be made from the Net
Revenues to the Bond Fund, Reserve Fund and the Rebate Fund
or from securing such bonds, notes, certificates, warrants
or other evidences of indebtedness and the payment thereof
by a lien on and pledge of the Net Revenues junior and
inferior to the lien on and pledge of the Net Revenues
herein created for the payment and security of the Bonds and
any Additional Bonds.
8.05. Separate System Projects. Nothing in this
Resolution shall be construed to deny the Authority the
022DESAO/024C05
-27-
.
e
right and it shall retain the right to issue bonds, notes,
warrants, certificates or other obligations or ~vidences of
indebtedness to finance the costs of any project or facil-
ities, which revenues, records and accounts of such project
or facilities are kept and maintained separate and apart
from the Revenues, records and accounts of the Transmission
System, the~Distribution.System and the Houston Contract,
and the obligations issued to finance the costs thereof are
payable solely from the revenues or other income derived
from the ownership or operation of such separate system
project or facilities; provided, however, the Authority will
not issue bonds, notes, warrants, certificates or other
obligations or evidences of indebtedness for the purpose of
acquiring or constructing such separate system project or
facilities unless and until a report has been obtained from
an independent engineer which concludes that (i) the plan
for developing the separate system project or facilities is
consistent with sound planning and the separate system
project or facilities would not materially and adversely
interfere with the operation of the Transmission System, the
Distribution'System and the Authority's.interest in the
Southeast Plan~, and (ii) the separate system project or fa-
cilities can be economically and efficiently operated and
maintained.
8.06. Indebtedness Not Payable from Revenues.
The Authority reserves the right to authorize and issue
bonds, notes, certificates, warrants or other evidences of
indebtedness for any corporate use or purpose if such bonds,
notes, certificates, warrants or other evidences of indebted-
ness are not secured by or payable from Revenues, Net
Revenues or any revenu~~ ...or ~~nds p1~d9.~d to the payment of
the Bonds and are not secured by the Transmission System,
the Distribution System or the Authorityls interest in the
Southeast Plant, but rather from some other source of funds
available'to the Authority.
Section 9. REPRESENTATIONS AND COVENANTS OF THE
AUTHORITY
9.01. Maintenance and Insurance. While any of
the ~Bonds '.or .any ;Additional Bonds are outstanding, the
Authority covenan~s and agrees to maintain. the Transmission
System:andtthe.Distribution System in good'condition-and
operate.the same in an efficient manner. and at a reasonable
cost. .So long as any of the Bonds or any Additional Bonds
are outstanding, the Authority agrees to maintain insurance
on the Transmission System and the Distribution System, of a
kind and in an amount which usually would be carried by
022DESAO/024C05
-28-
e
e
private companies engaged in a similar type of business. in
the same area. This Resolution shall not be cQnstrued as
requiring the Authority to expend any funds which are
derived from sources other than Revenues, but nothing herein
shall be construed as preventing the Authority from doing
so.
9.02. Books and Records. The Authority shall
keep proper books of records and accounts, separate from all
other records and accounts, in which complete and correct
entries shall be made of all transactions relating to the
~evenues, the Authorityls undivided interest in the Southeast
Plant, the' Transmission System and the Distribution System.
Upon written request made not more than 90 days following
the close of the fiscal year, the Authority shall furnish to
any registered owner of any of the Bonds or any Additional
Bonds, complete financial statements in reasonable detail
covering such fiscal year, certified by the Authority's
auditor. Any registered owner or owners of the Bonds or any
Additional Bonds at the time outstanding shall have the
right at all. reasonable times to inspect the Transmission
System and the Distribution System and all records, accounts
and data of the Authority relating thereto.
9.03. General Representations and Covenants. The
Authority hereby _furt!teJ:"rep~esents a.nd. covenants as follows:
(a) That it has the lawful power to pledge the
Net Revenues and the Funds pledged hereunder and has lawfully
exercised the power under the Constitution and laws of the
State of Texas, including said power existing under the Act
and Chapter 54 of the Texas Water Code, as amended~ and that
the Bonds issued hereunder shall be ratably secured, together
with any Additional Bonds, by said pledge of revenues in
such manner that one bond shall have no preference over any
other bond.
(b) That, other than for the payment of the Bonds
herein authorized, neither the Revenues nor the Net Revenues
have been pledged in any manner to the payment of any debt
or obligations of the Authority.
~. . ". .
.. . ... ..
.. . . . .(c) ,Tha.t,. so long as any of .Bonds or Additional
Bond's . r:em-ain" unpa'i'd';:' ;t;h'e:' Authority wil."! n-ot-"se1:1 o'r' encUmber
the Revenues, the Authority's undivided interest in the
Southeast Plant, the Transmission System and the Distribution
System or any substantial part thereof, and that it will not
encumber the Net Revenues thereof unless such encumbrance is
made in accordance with the terms of this Resolution or is
022DESAO/024C05
-29-
e
.e
.',
:'-.
junior and subordinate to all of the provisions of this
Resolution.
(d) That the Authority has obtained, caused to
be obtained or will obtain, and will comply with the terms
and conditions of, all franchises, permits and authorizations
from any governmental agency applicable to or necessary with
respect to the Authority and its operations, and it will
keep all such franchises, permits and authorizations in full
force and effect.
9.04 Tax Covenants.
The Authority-covenants and agrees with the
holders of the Bonds as follows:
A'. In General.
(a) No action will be taken, and there will be
no omission of an action, which act or omission will adversely
affect any exclusion from gross income for federal income
ta~ purposes of interest on the Bonds, and, in particular,
there will be compliance with those provisions of Section
103 and Section 141 through 150 of the Code that affect the
exclusion from gross income for federal income tax purposes
of the interest on the Bonds.
(b) The Authority will ~se the proceeds of the
Bonds in the manner described .in this Resolution except to
the extent that any variation from such provisions that is
permitted by applicable law will not adversely affect the
exclusion from gross income for federal income tax purposes
of interest on the Bonds, and will not enter into any
contract (or other arrangement) for the sale of water from
its undivided interest in the Southeast Plant that will .
adversely affect the exclusion from gross income for federal
income tax purposes of the interest on the Bonds.
(c) The Authority will not use or invest the
proceeds of the Bonds or any other amounts or any investment
earnings thereon in a manner that will result in the Bonds
becoming lIarbitrage bonds", within the meaning of Section
148 of the Code. The Authority will not invest an amount of
the proceeds of the Bonds in the Reserve Fund or in any
reasonably required reserve or replacement fund if the
amount of proceeds so invested is, in the aggregate, in
excess of 10 percent of the proceeds of the Bonds, within
the meaning of Section 148(d) (2) of the Code.
022DESAO/024C05
-30-
e
e
-.
.i.-:
.~ ;
(d) The Authority shall comply with the pro-
V1S10ns of Section 148 of the Code with respect.to arbitrage
rebate as they apply to the Bonds.
(e) The Authority shall not invest any of the
proceeds of the Bonds in a manner that would be a prohibited
payment, wi'th'in.'the' meaning of Treas. Reg. S 1.103-15AT(d) (6),
so long as such regulation is applicable to the Bonds.
(f) The Authority shall not take, or omit to
take, any action if such action or omission would cause the
Bonds to be federally. guaranteed, within the meaning of
Section 149(b)' of the Code.
(g) The Authority will comply with the requirements
of Section 149(e) (2) of the Code, requiring information
regarding the Bonds to be filed with the Internal Revenue
Service within prescribed time limits.
B. Private Activity Bond Covenants. The Bonds
are not, and will not be, private activity bonds, within the
meaning of Section 141 of the Code.
C. No Arbitrage Covenant. The Bonds are not,
and will not be, arbitrage bonds, within the meaning of
Section 148 of the Code.
D. Survival. The prov1s10ns of this Section
9.04 shall survive, notwithstand~ng any provision of this
Resolution to the contrary, the payment, any provision for
payment, or any defeasance of one or more of the Bonds.
Section 10. LIMITED OBLIGATIONS. The Bonds are
special obligations of the Authority payable solely from the
revenues and funds pledged hereunder, and the registered
owners thereof shall never have the right to demand payment
thereof out of any other revenues or properties of the
Authority, or out of funds raised o~ to be raised by taxation
by the Authority, the City of La Porte, Texas, the State of
Texas or any subdivision of any of them.
Section 11.' DEFAULT PROVISIONS,
" " '.11-. 01. . !Remedies of Registered Owners. In addition
to'all rights and remedies of any registered owner of the
Bonds provided by the laws of the State of Texas, the
Authority and the Board covenant and agree that in the event
the Authority defaults in the payment of the principal of or
interest on any of the Bonds when due, fails to make the
022DESAO/024C05
-31-
.
e
~
";-\
payments required by this Resolution to be made into the
Bond Fund, or defaults in the observance or per;orrnance of
any of the covenants, conditions or obligations set forth in
this Resolution, the registered owner of any of the Bonds
shall be entitled to a ~rit of mandamus issued by a court of
proper jurisdiction compelling and requiring the Board and
other officers of the Authority to observe and perform any'
covenant, obligation or condition prescribed in this Resolu-
tion. No delay or omission by any registered owner to
exercise any right or power accruing to him upon default
shall impair any such right or power, or shall be construed
to be a waiver of any such default or acquiescence therein;-
and every such right or power may be exercised from time" to
time and as often as may be deemed expedient. The specific
remedies mentioned in this Resolution shall be available to
any registered owner of any of the Bonds and shall be
cumulative of all other existing remedies.
11.02. Resolution is Contract. In consideration
of the purchase and the acceptance of the Bonds authorized
to be issued hereunder by those who shall hold the same from
time to time, the provisions of this Resolution shall be
deemed to be and shall constitute a contract between the
Authority and the registered owners of the Bonds, and the
covenants and' agreements herein set forth to be,performed on
behalf of the Authority shall be for the equal benefit,
protection and security of the registered owners of any and
all of the Bonds, all of which, regardless of the time or
times of their issue or maturity, shall be of equal rank
without preference, priority or distinction except as
expressly provided herein.
Section 12. DEFEASANCE. Any Bond shall be deemed
to be paid and shall no longer be considered to be a "Bond"
within the meaning of this Resolution when payment of the
principal of and interest on such Bond to maturity or to the
date fixed for redemption (notice of which shall have been
given or waived) shall have been made or provided for by
depositing with the Treasurer of the State of Texas or with
the Paying Agent/Registrar, (i) moneys sufficient to make
such payment or (ii) moneys and Government Obligations
certified by an independent public accounting firm of
national reputation to be of such maturities and interest
payment dates and to bear such interest as will, without
further investment of the principal thereof or the interest
thereon, be sufficient to make such payment, provided that
all the expenses pertaining to the Bonds with respect to
which such deposit is made shall have been paid or the
payment thereof provided for to the satisfaction of said
022DESAO/024COS
-32-
e
tit
":-'
State Treasurer or the Paying Agent/Registrar, as the case
may be. At such times as a Bond shall be deemed to be paid
hereunder, as aforesaid, it shall no longer be entitled to
the benefits of this Resolution, except for the purposes of
any such payment from such moneys or Government Obligations
and for the ,transfer, ex~hange or replacement of such Bond
as provided in Sections"2.05 and 2.09 hereof prior to
maturity or redemption. If money and/or Government Obligations
are deposited with the Paying Agent/Registrar sufficient to
make such payment with respect to some, but not all, of the
Bonds, the Authority shall designate the Bonds with respect
to which such deposit is made.
Section 13. SUBMISSION AND REGISTRATION OF BONDS.
The President or Vice President of the Board of Directors of
the Authority is hereby authorized and directed to submit,
or cause to be submitted, the record of the Bonds, the Water
Sales Contracts and the Initial Bonds, to the Attorney
General of the State of Texas for examination and approval
and thereafter cause the Bonds to be registered by the
Comptroller of Public Accounts of the State of Texas. Upon
said registration of the Initial Bonds; said Comptroller of
Public Accounts (or a deputy designated in writing to act
for said Comptroller) shall manually sign the Comptroller's
Registration Certificate prescribed herein to be printed and
endorsed on each.Initial .Bond, and the seal of said Comptroller
shall be impressed, printed or lithographed on each of the
Initial Bonds. The President, Vice' President and Secretary
of the Board of Directors and other appropriate officers of
the Authority are hereby further authorized and directed to
do any and all things necessary or convenient to carry out
the provisions of this Resolution.
Section 14. SALE OF BONDS. The sale of the Bonds
to the Texas Water Development Board, at a price equal to
the principal amount of the Bonds, is hereby authorized,
approved, ratified and confirmed. It is hereby found and
determined by the Board of Directors that the sale and
delivery of the Bonds is in the best interest of the Authority
and that the price and other terms for the purchase' of the
Bonds are the most advantageous reasonably available to the
Authority. The .aoard-hereby finds and determines that the
net effective i.nterest rate of the Bonds, .as calculated
-pursuant',to 'Artic1e 71:7:k.-2.-, V.A.T.C.S., as -.amended, 'and
assuming delivery of the Bonds on September 1, 1988, is
6.883084%.
022DESAO/024C05
-33-
e
e
"\
.;,
Section 15,. MISCELLANEOUS PROVISIONS.
15.01. Successors and Assigns. When~ver in this
Resolution the Authority is named and referred to, it shall
be deemed to include its successors and assigns, and all
.covenants and agreements in this Resolution made by or on
behalf of.the Authority shal1.bind and inure to the benefit
of its successors'and assigns whether or not so expressed
except to the extent otherwise provided in this Resolution.
15.02. No Recourse Against Authority Officers.
No recourse shall be had for the payment of the principal of.
or the interest on the Bonds or for any claim based thereon
or on this Resolution against any officer of the Authority
or any person executing the Bonds.
15.03. Paying Agent/Registrar May Own Bonds. The
Paying Agent/Registrar, in its individual or any other
capacity, may become the owner or pledgee of the Bonds with
the same rights it would have if it were not Paying
Agent/Registrar.
15.04. Legal Holidays. In any case where the
date of maturity of the principal of or interest on the
Bonds or the date fixed for redemption of any Bonds shall be
(a) a legal holiday in the city of the principal .office of
the Paying Agent/Registrar or (b) a day on which banking
institutions are authorized by law to close in such city,
then payment of interest or principal need not be made on
such date but may be made on the next succeeding day not a
legal holiday or day on which banking institutions are
authorized by law to close in such city with the same force
and effect as if made on the date of maturity or the date
fixed for redemption and no interest shall accrue for the
period from and after such date.
15.05. Benefits of Resolution Provision. Nothing
in this Resolution, expressed or implied, shall give or be
construed to give any person, firm or corporation, other
than the Authority, the Paying Agent/Registrar and the
registered owners of the Bonds, any legal or equitable right
o.r: claim under or in. respect of this Resolution or under any
covenant, condition or provision herein contained, all the
cov.enants, con.ditions andprov.isions. .conta:ined. ;in. ,this..
Resolution being for the sole benefit of the Authority, the
Paying Agent/Registrar and the registered owners of the
Bonds.
022DESAO/024C05
-34-
e
-
"\
THE STATE OF TEXAS
COUNTY OF HARRIS
CITY OF LA PORTE
) ,r:
. .
) ,
)
NOTICE OF MEETING
Notice is hereby given that the City Council of the City of
La Porte will meet in Public Hearings, Revenue Sharing Budget
Hearing, and Regular Session on the 12th day of September, 1988,
in the Council Chambers, City Hall, 604 West Fairmont Parkway, La
Porte, Texas, beginning at 6:00 P.M. A copy of the agenda for
said meeting, showing the subjects of such meeting, is attached
hereto.
I hereby certify that I posted this Notice on the bulletin
board located at a place convenient to the public in the City
Hall of the City of La Porte, at 5:00 P.M. on the 8th day of
September, 1988, and that (1) said Notice was posted for at least
72 hours preceding the scheduled time of the meeting; or (2) if
this Notice was posted less than 72 hours but more than 2 hours
before the meeting is convened, I hereby certify that said
meeting was called because of an emergency or urgent public
necessity limited to imminent threats to public health and safety
or reasonable unforseeable situations requiring immediate action
by City Council.
Witness my hand and the Seal of the City of La Porte, Texas,
this the 8th day of September, 1988.
CITY OF LA PORTE
Cherie Black
City Secretary
.
It
.....
"..I
15.06. Interpretations. The titles and headings
of the Sections of this Resolution have been inserted for
convenience of reference only and are not to be considered a
part hereof a~d shall not in any way modify or restrict any.
of the terms and provisions hereof. This Resolution and all
the terms and provisions hereof shall be liberally construed
to effectuate the purposes set forth herein and to sustain
the validity of the Bonds herein authorized and the validity
of the lien on and pledge of the revenues from which the
Bonds are payable.
15.07. Effective Date of Resolution. This
Resolution shall take effect and be in full force and effect
from and after its passage.
PASSED AND APPROVED this the
1988.
day of
~
'Vice President, Board of Directors,
La Porte Area Water Authority
ATTEST:
~tI,~
Secretary, Board of Directors,
La Porte Area Water Authority
(SEAL)
022DESAO/024C05
-35-
e
e
TOTAL CASH FLOW REQUIREMENTS
LA PORTE AREA WATER AUTHORITY
$9,800,000 WATER SUPPLY CONTRACT REVENUE BONDS
SERIES 1988 AND SERIES II 1988 COMBINED
Fiscal
Year
End principal Reserve Fund Contingency
12/31 and Interest Requirements Fund Total
1988 $ $ 55,140 $ $ 55,140.00
1989 796,408.96 165,420 961,828.96
1990 658,635.00 165,420 25,000 849,055.00
1991 813,635.00 165,420 25,000 1,004,055.00
1992 815,962.50 165,420 25,000 1,006,382.50
1993 817,465.00 110,280 25,000 952,745.00
1994 '823,102.50 823,102.50
1995 827,557.50 827,557.50
1996 825,770.00 825,770.00
1997 832,977.50 832,977.50
1998 828,64'2.50 828,642.50
1999 833,330.00 833,330.00
2000 836,370.00 836,370.00
2001 837,845.00 837,845.00
2002 837,715.00 837,715.00
2003 840,940.00 840,940.00
2004 842,140.00 842,140.00
2005 841,452.50 841,452.50
2006 843,852.50 843,852.50
2007 843,967.50 843,967.50
2008 841,997.50 841,997.50
2009 837,942.50 837,942.50
2010 841,802.50 841,802.50
2011 842,602.50 842,602.50
2012 845,602.50 845,602.50
2013 840,452.50 840,452.50
2014 842,160.00 842,160.00
2015 840,342.50 840,342.50
Total: $22,330,671.46 $827,100.00 $100,000.00 $23,257,771.46
Moroney, Beissner & Co., Inc.
8/2/88
e LA PO;;'TE AREA WATER AUTHORITY as
$9,800,000 WATER SUPPLY CONTRACT REV!~UE
SERIES 198a Arm SERIES 11 1988 Ca'.BINED
___as________ca=_c___
DEBT SERVICE SCHEDULE
_~AC==__=C=_s==_____
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
121 1/89 796,408.96 796,408.96 796,408.96
lZl 1/90 658,635.00 658,635.00 658,635.00
121 1191 155,000.00 4.950000 658,635.00 813,635.00 813,635.00
121 1192 165,000.00 5.150000 650,962.50 815,962.50 815,962.50
lZl 1/93 175,000.00 5.350000 642,465.00 817,465.00 817.465.00
121 1/94 190,000.00 5.550000 633,102.50 823,102.50 823,102.50
121 1/95 205,000.00 5.750000 622,557.50 827,557.50 827,557.50
121 1196 215,000.00 5.950000 610,770.00 825,770.00 825,770.00
121 1197 235,000.00 6.100000 597,977 . 50 832,977.50 832,977.50
121 1198 245,000.00 6.250000 583,642.50 828,642.50 1128,642.50
121 1/99 265,000.00 6.400000 568,330.00 833,330.00 833,330.00
121 11 0 285,000.00 6.500000 551,370.00 836,370.00 836,370.00
121 11 1 305,000.00 6.600000 532,845.00 837,845.00. 837,845.00
121 11 2 325,000.00 6.700000 512,715.00 837, 7'l5. 00 837,715.00.
121 11 3 350,000.00 6.800000 490,940.00 840,940.00 840,940.00
121 11 4 375,000.00 6.850000 467,140.00 842,140.00 842,140.00
121 11 5 400,000.00 6.900000 441,452.50 841,452.50 841,452.50
121 11 6 430,000.00 6.950000 413,852.50 843,852.50 843,852.50
121 11 7 460,000.00 6.950000 383,967.50 843,967.50 843,967.50
121 11 8 490,000.00 6.950000 351,997.50 841,997.50 841,997.50
121 11 9 520,000.00 6.950000 317,942.50 837,942.50 837,942.50
121 1110 560,000.00 7.000000 281,802.50 841,802.50 841,802.50
121 1/11 600,000.00 7.000000 242,602.50 842.602.50 842,602.50
121 1/12 645,000.00 7.000000 200,602.50 845,602.50 845,602.50
121 1/13 685,000.00 7.050000 155,452.50 840,452.50 840,452.50
121 1/14 735,000.00 7.050000 107,160.00 842,160.00 842,160.00
121 1/15 785,000.00 7.050000 55,342.50 840,342.50 840,342.50
-------------- -------------- --------------
9,800,000.00 12,530,671.46 22,330,671.46
ACCRUED
9,800,000.00 12,530,671. 46 22,330,671.46
G.IIU:I.z====a::=--- _==a.---==== ~===---=--====
DATED 91 1/88
BOND YEARS
AVERAGE COUPON
AVERAGE LIFE
N I C Z
TIC Z
WITH DELIVERY OF 91 1/88
182,440.000
6.868.
18.616
6.868379 Z USING 100.0000000
6.806973 Z USIHG 100.0000000
PREPARED BY K:>RONEY, BEISSNER & CO., INC.
RUNDATE: 08-01-1988 @ 15:40:47
FILEHAME: LPAWA
KEY: COMB
e LA PO;::a: 1-_"'.:..... WATER AliTHCiUT'l _
. $9,800,000 WATER St:l'?LY COli TRACT REVEll"UE S
SERIES 1988 AND S::?IES 11 1988 CCffilIl1ED
-.._.~-----=-=-------
DEBT SERVICE SC~EDULE
c__c__s__~_._e=_=____
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
6/ 1/89 467,091.46 467,091. 46
12/ 1189 329,317.50 329,317.50 796,408.96
6/ 1/90 329,317.50 329,317.50
12/ 1/90 329,317.50 329,317.50 658,635.00
6/ 1/91 329,317.50 329,317.50
12/ 1/91 155,000.00 329,317.50 484,317.50 813,635.00
6/ 1/92 325,481. 25 325,481.25
12/ 1/92 165,000.00 325,481.25 490,481.25 815,962.50
6/ 1/93 321,232.50 321,232.50
12/ 1193 175,000.00 321,232.50 496,232.50 817,465.00
6/ 1/94 316,551.25 316,551.25
12/ 1194 190,000.00 316,551.25 506,551. 25 823,102.50
~/ 1/95 311,278.75 311,278.75
12/.,1/95 205,000.00 311,278.75 516,278.75 827,557.50
6/ 1/96 305,385.00 305,385.00
12/ 1/96 215,000.00 305,385.00 520,385.00 825,770.00
6/ 1/97 298,988.75 298,988.75
12/ 1/97 235,000.00 298,988.75 533,988.75 832,977 . 50
6/ 1/98 291,821.25 291,821.25
12/ 1/98 245,000.00 291,821.25 536,821.25 828,642,50
6/ 1/99 284,165.00 284,165.00
12/ 1/99 265,000.00 284,165.00 549,165.00 833,330.00
6/ 11 0 275,685.00 275,685.00
12/ 1/ 0 285,000.00 275,685.00 560,685.00 836,370.00
6/ 1/ 1 266,422.50 266,422.50
12/ 11 1 305,000.00 266,422.50 571,422.50 837,845.00
6/ 1/ 2 256,357.50 256,357.50
12/ 1/ 2 325,000.00 256,357.50 581,357.50 837,715.00
6/ 1/ 3 245,470.00 245,470.00
12/ 11 3 350,000.00 245,470.00 595,470.00 840,940.00
6/ 1/ 4 233,570.00 233,570.00
12/ 1/ 4 375,000.00 233,570.00 608,570.00 842,140.00
6/ 1/ 5 220,726.25 220,726.25
12/ 1/ S 400,000.00 220,726.25 620,726.25 841,452.50
6/ 1/ 6 206.926.25 206,926.25
121 11 6 430.000.00 206,926.25 636.926.25 843,852.50
61 11 7 191,983.75 191,983.75
121 11 7 460,000.00 191,983.75 651,983.75 843,967.50
6/ II 8 175,998.75 175,998.75
121 II 8 490,000.00 175,998.75 665,998.75 841,997.50
61 II 9 158,971.25 158,971.25
121 II 9 520,000.00 158,971.25 678,971.25 837,942.50
61 1110 140,901.25 140,901.25
121 1/10 560,000.00 140,901.25 700,90L25 841,802.50
61 1/11 121,301. 25 121.301.25
121 1/11 600,000.00 121,301. 25 721,301. 25 842,602.50
6/ 1/12 100,301.25 100,301.25
121 1112 645,000.00 100,301.25 745,301,25 845,602.50
6/ 1/13 77,726.25 77,726.25
121 1113 685, 000.00' 77,726.25 762,726.25 840,452.50
"
6/ 1/14 53,580.00 53,580.00
121 1114 735,000.00 53,580.00 788,580.00 842,160.00
,61 1115 27,671.25 27,671.25
121 1/15 785,000.00 27,671.25 812,671.25 840,342.50
-------------- -------------- --------------
9,800,000.00 12,530,671.46 22,330,671.46
ACCRUED
9,800,000.00 12,530,671.46 22,330,671.46
-~~ -- -==--
.. LA ;~;.'i'E A.':..Z.A ;':.:':;:::::~ .'UTi!ORITY .-
.$9,eCO.~:lO IOATER SUi'i'LY CC:~;!P.;..CT RE'n:~;UE"S
SERIES 1988 AND SERIES 11 1988 C~rNED
..~. _C:____Zl__-==__cs::.=,..__
. :.DEBT SERVICE SCHEDULE
"; ~ _.~l&___==="'___.~=-___
DATED 91 1/88
BellO YE,6.RS
A\'EP.AGE COUPON
AVEP.AGE LIFE
N I C %
TIC %
WITH DELIVERY OF 9/ 1/88
182,~~0.OOO
6.868
18.616
6.868379 % USING 100.0000000
6.806973 % USING 100.0000000
PREPARED BY MORONEY, BEISSNER & CO., INC.
RlJ:mATE: 08-01-1988 @ 15:17:53
FILElIAME: LPAWA
KEY: ca-IB
"
__ LA FOF.n: J-"".1:A W".!i:P. AUTHORITY _11
$., 0':10 WATER ~UrPLY CC!;TPJ,CT RE\'WUE BC!iDS, 1988
..~. a-..c.#__________
":DE8T SERVICE SCHE~ULE
'"
'-_:=~~~-~~..
DATE fRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
6/ 1/89 215,078.33 215,078.33
12/ 1/89 161,308.75 161,308.75 376,387.08
6/ 1/90 161,308.75 161,308.75
12/ 1/90 161,308.75 161,308.75 322,617.50
6/ 1/91 161,308.75 161,308.75
12/ 1/91 75,000.00 4.950000 161,308.75 236,308.75 397,617.50
6/ 1/92 159,452.50 159,452.50
12/ 1/92 80,000.00 5.150000 159,452.50 239,452.50 398,905.00
6/ 1/93 157,392.50 157,392.50
12/ 1/93 85,000.00 5.350000 157,392,50 242,392.50 399,785.00
6/ 1/94 155,118.75 155,118.75
12/ 1/94 95,000.00 5.550000 155,118.75 250,118.75 405,237.50
6/ 1/95 152,482.50 152,482.50
12/ 1/95 100,000.00 5.750000 152,482.50 252,482.50 404,965.00
6/ 1/96 149,607.50 149,607.50
12/ 1/96 105,000.00 5.950000 149,607.50 254,607.50 404,215.00
6/ 1/97 146,483.75 146,483.75
12/ 1/97 115,000.00 6.100000 146,483.75 261,483.75 407,967.50
6/ 1/98 142,976.25 142,976.25
12/ 1/98 120,000.00 6.250000 142,976.25 262,976.25 405,952.50
6/ 1/99 139,226.25 139,226.25
12/ 1/99 130,000.00 6.400000 139,226.25 269,226.25 408,452.50
6/ 1/ 0 135,066.25 135,066.25
12/ 1/ 0 140,000.00 6.500000 135,066.25 275,066.25 410,132.50
6/ 1/ 1 130,516.25 130,516.25
12/ 1/ 1 150,000.00 6.600000 130,516.25 280,516.25 411,032.50
6/ 1/ 2 125,566.25 125,566.25
12/ 1/ 2 160,000.00 6.700000 125,566.25 285,566.25 411,132.50
6/ 1/ 3 120,206.25 120,206.25
12/ 1/ 3 170,000.00 6.800000 120,206.25 290,206.25 410,412.50
6/ 1/ 4 114,426.25 114,426.25
12/ 1/ 4 185,000.00 6.850000 114,426.25 299,426.25 413,852.50
6/ 1/ 5 108,090.00 108,090.00
12/ 1/ 5 195,000.00 6.900000 108,090.00 303,090.00 411,180.00
6/ 1/ 6 101,362.50 101,362.50
12/ 1/ 6 210,000.00 6.950000 101,362.50 311,362.50 412,725.00
6/ 1/ 7 94,065.00 94,065.00
12/ 1/ 7 225,000.00 6.950000 94,065.00 319,065.00 413,130.00
6/ 1/ 8 86,246.25 86,246.25
12/ 1/ 8 240,000.00 6.950000 86,246.25 326,246.25 412,492.50
6/ 1/ 9 77,906.?5 77 , 906. 25
12/ 1/ 9 255,000.00 6.950000 77,906.25 332,906.25 410,812.50
6/ 1/10 69,045.00 69,045.00
12/ 1/10 275,000.00 7.000000 69,045.00 344,045.00 413,090.00
6/ 1/11 59,420.00 59,420.00
12/ 1/11 295,000.00 7.000000 59,420.00 354,420.00 413,840.00
6/ 1/12 49,095.00 49,095.00
12/ 1/12 315,000.00 7.000000 U,095.00 364,095.00 413,190.00
6/ 1/13 38,070.00 38,070.00
12/ 1/13 335,000.00 7.050000 38,070.00 373,070.00 411,140.00
6/ 1/14 26,261.25 26,261.25
12/ 1/14 360,000.00 7.050000 26,261.25 386,261.25 412,522.50
6/ 1/15 13,571.25 13,571.25
12/ 1115 385,000.00 7.050000 13,571.25 398,571.25 412,142.50
-------------- -------------- --------------
4,800,000.00 6,124,929.58 10,924,929.58
ACCRUED
4,800,000.00 6,124,929.58 10,924,929.58
==~------
DATED 91 1/88
BO:IO YE,..P.s
AVERAGE COUPON
AVERAGE LIFE
K I C Z
TIC Z
. LA l'CF.n: ,,_-::::.... ",..:ER AUTilORITY .
$5 . _ GeO WATER S;;!'t'LY cO:n..ACT R...."ElIUE BO::::S, :::3 1988
DEBT SERVICE SCHEDULE
WITH DELl\~Y OF 91 1/88
93,065.000
6.883
18.613
6.88308~ Z USING 100.0000000
6.832859 Z USING 100.0000000
PREPARED BY HJROr;EY, BEISSNER & CO., INC.
RllIIDATE: 08-01-1988 @ 14:52:10
FILENr."IE: LPAWA
KEY: SER88