HomeMy WebLinkAbout1994-03-14 Regular Meeting La Porte City Council
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AGENDA
REGULAR MEETING OF LA PORTE CITY COUNCIL TO BE HELD MARCH 14, 1994,
IN THE COUNCIL CHAMBERS OF THE CITY HALL, 604 WEST FAIRMONT
PARKWAY, LA PORTE, TEXAS, BEGINNING AT 6:00 P.M.
Next Ord. 94-1967
Next Res. 94-04
1. CALL TO ORDER
2. INVOCATION BY COUNCILPERSON MIKE COOPER
3 . CONSIDER APPROVING MINUTES OF REGULAR MEETING FEBRUARY 28,
1994
4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX
PAYERS WISHING TO ADDRESS COUNCIL
5. CONSIDER ORDINANCES AUTHORIZING THE EXECUTION BY THE CITY OF
LA PORTE OF INDUSTRIAL DISTRICT AGREEMENT (Ord No as follows)
- R. Herrera
COMPANY NAME:
HOUSTON LIGHTING AND POWER COMPANY
ORDINANCE NO:
93-IDA-23
6. CONSIDER AN ORDINANCE APPROVING AND AUTHORIZING A LEASE
AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, FOR
A PUBLIC FISHING PIER AT SYLVAN BEACH PARK (Ord. 94-1967) - B.
Jacobs
7. CONSIDER AN ORDINANCE AUTHORIZING ISSUANCE OF CITY OF LA
PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 1994,
AND ALL OTHER MATTERS RELATED THERETO (Ord. 94-1971) - J.
Litchfield
8. CONSIDER AN ORDINANCE AUTHORIZING ISSUANCE OF CITY OF LA
PORTE, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING
BONDS, SERIES 1994, AND ALL OTHER MATTERS RELATED THERETO
(Ord. 94-1972) - J. Litchfield
9. CONSENT AGENDA - ANY ITEM MAY BE REMOVED BY A COUNCILPERSON
FOR DISCUSSION
A. CONSIDER AWARDING BIDS FOR GOLF COURSE EQUIPMENT TO
WATSON DISTRIBUTING COMPANY, INC. AND GOLDTHWAITES OF
TEXAS - A. Osmond
B. CONSIDER AUTHORIZING THE PURCHASE OF RADIOS AND PAGERS
FROM HGAC - S. Kelley
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C. CONSIDER AWARDING BID FOR T-SHIRTS AND CAPS - B. Jacobs
10. ADMINISTRATIVE REPORTS:
A. REAPPOINTMENT OF HEALTH AUTHORITY
B. REAPPOINTMENT OF SEVEN MEMBER BOARD OF DIRECTORS FOR CITY
OF LA PORTE HEALTH FACILITIES DEVELOPMENT CORPORATION
C. IMPROVEMENT PLAN FOR UNDERWOOD ROAD BETWEEN FAIRMONT
PARKWAY AND SPENCER HIGHWAY
11. COUNCIL ACTION
12. EXECUTIVE SESSION - V .A.T. S. - ARTICLES 6252-17, SECTION 2 (E) ,
(F), (G), (R) (LEGAL, LAND ACQUISITION, PERSONNEL, AND
CONFERENCE(S) WITH EMPLOYEE(S) TO RECEIVE INFORMATION
A. SECTION 2(E) - (LEGAL)
MEET WITH LEGAL COUNSEL REGARDING LAWSUIT(S)
13. ADJOURNMENT
If during the course of the meeting covered by this agenda the
Council should determine that a closed or executive meeting or
session of the Council should be held or is required in relation to
an item noticed in this agenda, then such closed or executive
meeting or session as authorized by TEX. REV. CIV. STAT. ANN. Art.
6252-17(a) (Open Meetings Act) will be held by the Council at that
date, hour and place given in the meeting notice or as soon after
the commencement of the meeting covered by the meeting notice as
the Council may conveniently meet in such closed or executi ve
meeting or session concerning any and all subjects and for any and
all purposes permitted by Section 2 (c) through Section 2 (r) ,
inclusive of said Open Meetings Law, including, but not limited to:
Section 2(d) - For the purpose of excluding witness or witnesses
from a hearing during examination of another
witness.
Section 2(e) - For the purpose of a private consultation with the
Council's attorney on any or all subjects or
matters authorized by law.
Section 2(f) -
For the
exchange,
negotiated
donations.
purpose of discussing the purchase,
lease or value of real property and
contracts for prospective gifts or
Section 2 (g) - For the purpose of considering the appointment,
employment evaluation, reassignment, duties,
discipline or dismissal of a public officer or
employee or to hear complaints or charges against a
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public officer or employee.
section 2(j) - To consider the deployment, or specific occasions
for implementation, of security personnel or
devices.
section 2(r) - For the purpose of conferring with an employee or
employees of the ci ty , for the sole purpose of
recei ving information from the employee or
employees or to ask questions of the employee or
employees; provided, however, that no discussion of
public business or City policy that affects public
business shall take place between the members of
the City Council during the conference.
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MINUTES OF THE REGULAR MEETING OF
LA PORTE CITY COUNCIL
MARCH 14, 1994
1. The meeting was called to order by Mayor Norman Malone at 6: 00
P.M.
Members of city Council Present: Mayor Norman Malone,
Councilpersons Guy Sutherland, Mike Cooper, Bob Thrower, Bob
McLaughlin, Alton Porter, Jack Maxwell and Jerry Clarke
Members of Council Absent: Councilperson Deotis Gay
Members of City Staff Present: Director of Administrative
Services Louis Rigby, City Attorney Knox ASkins, City
Secretary Sue Lenes, Director of Finance Jeff Litchfield,
Chief of Police Bobby Powell, Director of Planing Chuck
Harrington, Director of Parks and Recreation Buddy Jacobs,
Purchasing Agent Susan Kelley, Golf Pro Alex Osmond, Golf
Course Superintendent Dennis Hlavaty
Others Present: David Fetzer, Moss Fetzer and Pete Fisher of
Moroney, Beissner & Company, Inc.; Charles Engelken, Jr.,
Planning and Zoning Commission representative from District 2,
and citizens, Lou Lawler, Tom Barrett, and Paul Chase.
2. The invocation was given by Councilperson Mike Cooper.
3. Council considered approving minutes of Regular Meeting
February 28, 1994.
Motion was made by CouncilDerson Thrower to approve the
minutes of January 24 as Dresented. Second by Councilperson
Maxwell. The motion carried, 7 ayes, 0 nays, and 1 abstain.
Ayes: councilpersons sutherland, Cooper, Thrower,
McLaughlin, Maxwell, Clarke and Mayor Malone
Nays: None
Abstain: councilperson Porter
4. There were no ci tizens or tax payers wishing to address
Council.
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Minutes Regular Meeting
La Porte City council
March 14, 1994, Page 2
5. Council considered approving an ordinance authorizing the
execution by the city of La Porte of Industrial District
Agreement with Houston Lighting and Power Company.
Louis Rigby, Director of Administrative Services, stated this
is a continuation of the Industrial District Agreement that
the City of La Porte has, and this is an addition to the ones
we have passed.
City Attorney read: ORDINANCE 93-IDA-23 - AN ORDINANCE
AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN
INDUSTRIAL DISTRICT AGREEMENT WITH HOUSTON LIGHTING AND POWER
COMPANY, FOR THE TERM COMMENCING JANUARY 1, 1994, AND ENDING
DECEMBER 32, 2000; MAKING VARIOUS FINDINGS AND PROVISIONS
RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN
MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
Motion was made bY Council~erson Maxwell to oass Ordinance 93-
IDA-23 as oresented. Second by councilperson Clarke. The
motion carried, 8 ayes and 0 nays.
Nays:
councilpersons Sutherland,
McLaughlin, Porter, Maxwell,
Malone
None
Cooper, Thrower,
Clarke and Mayor
Ayes:
6. Council considered an ordinance approving and authorizing a
lease agreement between the City of La Porte and Harris
County, for a public fishing pier at Sylvan Beach Park.
City Attorney read: ORDINANCE 94-1967 AN ORDINANCE
APPROVING AND AUTHORIZING A LEASE AGREEMENT BETWEEN THE CITY
OF LA PORTE AND HARRIS COUNTY, FOR A PUBLIC FISHING PIER AT
SYLVAN BEACH PARK; MAKING VARIOUS FINDINGS AND PROVISIONS
RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN
MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
Motion was made by Counciloerson McLauqhlin to aoorove
Ordinance 94-1967 as oresented. Second by councilperson
Thrower. The motion carried, 8 ayes and 0 nays.
Nays:
Councilperson Sutherland, Cooper,
McLaughlin, Porter, Maxwell, Clarke
Malone
None
Thrower,
and Mayor
Ayes;
7. Council considered an ordinance authorizing issuance of City
of La Porte, Texas, General obligation Refunding Bonds, Series
1994.
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Minutes Regular Meeting
La Porte City Council
March 14, 1994, Page 3
Councilperson Clarke suggested Council review item 7 and 8 at
the same time. Council was in agreement.
8. Council considered an ordinance authorizing issuance of City
of La Porte, Texas, Waterworks and Sewer System Revenue
Refunding Bonds, ~eries 1994.
City Attorney read: ORDINANCE 94-1971 - ORDINANCE AUTHORIZING
THE ISSUANCE OF CITY OF LA PORTE, TEXAS GENERAL OBLIGATION
REFUNDING BONDS, SERIES 1994, AND ALL OTHER MATTERS RELATED
THERETO
City Attorney read: ORDINANCE 94-1972 - ORDINANCE AUTHORIZING
THE ISSUANCE OF CITY OF LA PORTE, TEXAS, WATERWORKS AND SEWER
SYSTEM REVENUE REFUNDING BONDS, SERIES 1994, AND ALL OTHER
WATERS RELATED THERETO
Mr. David Fetzer, Moroney, Beissner & Company, Inc., reviewed
for Council the circumstances of the issuance of General
Obligation Refunding Bonds, Series 1994, and the issuance of
Waterworks and Sewer Revenue Bonds, Series 1994. He suggested
Council set parameters of $900,000 for General Obligation
Bonds and $300,000 for the Waterworks and Sewer System Revenue
Refunding Bonds. Mr Fetzer recommended Council adopt the two
ordinances, 94-1971 and 94-1972 tonight, authorizing the Mayor
to execute the bond purchase agreement, the escrow agreement,
and all the things necessary. We would not have to have
another Council meeting in order to effect this refunding if
the Markets allow us to get it done and accomplish the savings
outlined.
Mayor Malone again stated Mr. Fetzer's wishes to approve these
two Ordinances as written and let Mr. Fetzer handle the sale
when the Market looks better. After questions from the
Council, Mr. Fetzer suggested two steps; 1) adopt the
ordinances for issuance of sale, and 2. ) adopt another
resolution instructing us not complete the transaction unless
the savings is $900,000 on the General Obligation Bonds
minimum, and $300,000 minimum on the Waterworks and Sewer
Revenue Bonds. Mr. Askins asked Mr. Fetzer to write a letter
to Council to be made part of the minutes so the city would
have a written record of Mr. Fetzer's recommendations. Mr.
Fetzer agreed with Mr. Askins suggestion. Mayor Malone asked
City of La Porte Finance Director Jeff Litchfield if he had
anything to add to the issue. Mr. Litchfield said he was in
support of Mr. Fetzer's recommendations.
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Minutes Regular Meeting
La Porte city Council
March 14, 1994, Page 4
Motion was made bY Counciloerson Clarke to adopt Ordinances
94-1971 and Ordinance 1972 with the oarameters as stated bY
Mr. David Fetzer. Seconded by councilperson Sutherland. The
motion carried, 8 ayes and 0 nays.
Nays:
councilpersons Sutherland,
McLaughlin, Porter, Maxwell,
Malone
None
Cooper, Thrower,
Clarke and Mayor
Ayes:
9. Consent Agenda: - Council considered awarding bids as follows:
(A) Consider approving bids for Golf Course Equipment to
Watson Distributing Company, Inc., and Goldthwaites of Texas;
(B) Consider authorizing the purchase of radios and pagers
from HGAC; (C) consider awarding bid for T-shirts and Caps.
Councilperson Sutherland had a question on item (A) regarding
how much of the bid is for replacement and how much was for
new. Golf Pro Alex Osmond addressed the question. He stated
only one item is new. The 4-wheel drive hydraulic rough mower
and all other items are replacements.
Motion was made bY Counciloerson Thrower to award all the bids
as oresented. Second by councilperson Clarke. The motion
carried, 8 ayes and 0 nays.
Nays:
councilpersons sutherland,
McLaughlin, Porter, Maxwell,
Malone
None
Cooper, Thrower,
Clarke and Mayor
Ayes:
10.
Mayor Malone stated Mr.
regarding City business,
Administrative Services,
administrative reports.
Herrera has been away all
and he introduced Director
Louis Rigby, who present
day
of
the
A.) Louis brought to Council's attention the necessity of
reappointing the Health Authority. Currently Dr. P. J.
Mock is the doctor of record. The ordinance states a set
term or until someone is appointed after him. Dr. Mock
stated, "He would have no problem being reappointed to
this position". It does not have to be accomplished
tonight. This report is to let you know this position is
up for reappointment by Council and will probably be
brought to next Council meeting as a regular action item.
Councilperson Sutherland suggested an alternate or
assistant be appointed, and this should be someone of Dr.
Mock's selection. Councilperson McLaughlin suggested
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Minutes Regular Meeting
La Porte city Council
March 14, 1994, Page 5
talking about the whole board on the next item (B)
Reappoint of seven member board of directors for City of
La Porte Health Facilities Development Corporation. Mr.
Rigby asked for assistance from city Attorney Knox Askins
on explanation of this item. Mr. Rigby reported the this
board of directors was appointed a number of years ago,
and the current board expired in 1986. Mr. Askins
explained the board was created during the time the City
was doing private activity bonds for its Industrial
Development Corporation, and the City was requested to
perform with the thoughts that a hospital might be built
with private activity bonds in La Porte. Private
activity bonds were repealed by the Congress and nothing
further came of it, that was chartered as a Texas
corporation and if the Council choses to keep that
corporation as a shell corporation it is going to take
some maintenance time to time. Mayor Malone asked Mr.
Askins if it was necessary to keep this board. Mr .
Askins stated it was a policy decision for Council to
make. He said under present Tax Law, he could see no
reason to keep it alive. It will be a very simple matter
to reactivate that corporation, where something to come
up. Mr. Rigby stated this does not require any action
tonight. If Council chooses to reappoint the board we
will bring it back to Council for action. Councilperson
Sutherland suggested Council should give Mr. Rigby
directions tonight so staff will know what to do. Mayor
Malone polled Council as to their wishes. Council
decided to do away with the La Port Health Facilities
Development Corporation board. C.) Director of Planning,
Chuck Harrington, reported to Council the status of
Harris County's reconstruction and widening of Underwood
Road from State Highway 225 to Fairmont Parkway. The
first half has been completed and the second section from
Pasadena Boulevard to Spencer Highway is currently under
construction and the third section from Spencer Highway
to Fairmont Parkway the design was completed last year.
This portion was on hold as funds were not available to
complete the project. That situation has changed and
Harris County has let out for bids, the third section of
that particular roadway. Harris County had sent the City
an agreement asking us to participate in this project by
funding the relocation of several utility lines which the
City has in the right-a-way of that third section from
Spencer to Fairmont Parkway. The amount was $65,000
dollars. The City admitted responsibility but would not
commit any monies until Harris county was ready to
construct the project. Harris County indicated this
commitment would probably not be necessary in the FYI 93-
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Minutes Regular Meeting
La Porte City Council
March 14, 1994, Page 6
94 Budget. We did not prepare the budget for this
expenditure. Harris County has moved that project up now
and it is now occurring in our Fiscal Year 1994. The bid
is now out and we do not have a firm figure as to the
City's commitment. We anticipate that figure to be less
than the original estimate. We propose to bring this
back to Council in two weeks an agreement and dollar
figure for Council action. We just wanted you to be
informed as to the status of project.
11. Councilpersons Sutherland, Cooper, Clarke and Mayor Malone
brought items to Councils attention.
12. Council adjourned into executive session at 6:31 P.M. to
discuss the following under V.A.T.S. - Article 6252-17,
section 2 (E) - (Legal): Meet with Legal Counsel regarding
lawsuit(s). Council returned to the table at 7:12 P.M., with
no action being taken in executive session.
13. There being no further business to come before the Council,
the meeting adjourned at 7:13 P.M.
Respectfully submitted:
S-e~
Sue Lenes, City Secretary
Passed & Approved this the 28th
day of March, 1994
4?1~~A
~an L. Malone, Mayor
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March 15, 1994
y~ /J6S 9od.DaL ~enAd
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Honorable Mayor and City Council
City of La Porte
P,O, Box 115
La Porte, TX 77572-1115
Re: General Obligation and Water and Sewer Revenue Refunding Bond Issues of 1994
Gentlemen:
The purpose of this letter is to formalize in writing our recommendation to the City
Council last night regarding the above captioned bond issues, It was our recommendation that
the above transactions be taken to completion if the total future value savings met or exceeded
$900,000 for the General Obligation Bonds and $300,000 for the Water and Sewer Revenue
Bonds,
The Council accepted our recommendation and authorized us to proceed with these
transactions under the above described parameters, We have done just that and as it turns out the
bond market leveled out this morning from its precipitous fall (higher rates) of last week.
We were able to complete the advanced refunding transactions which produced a savings
of$I,021,000 for the General Obligation Bonds and $373,000 for the Water and Sewer Revenue
Bonds. We will be forwarding to you in the next day or so a savings report on both bond issues,
We were extremely pleased to have handled these transactions for the City which will
result in a total savings in debt service payments of$I,394,000,
Yours very truly,
Qf6~J
President
RDF:smt
cc: City Manager
City Attorney
Director of Finance
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ORDINANCE NO. 93-IDA-23
AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF
AN INDUSTRIAL DISTRICT AGREEMENT WITH HOUSTON LIGHTING AND POWER
COMPANY, FOR THE TERM CODENCING JANUARY 1, 199", AND ENDING
DECEMBER 31, 2000; MAltING VARIOUS FINDINGS AND PROVISIONS RELATING
TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. HOUSTON LIGHTING AND POWER COMPANY has executed
an industrial district agreement with the City of La Porte, for the
term commencing January 1, 1994, and ending December 31, 2000, a
copy of which is attached hereto, incorporated by reference herein,
and made a part hereof for all purposes.
Section 2. The Mayor, the City Manager, the City Secretary,
and the City Attorney of the city of La Porte, be, and they are
hereby, authorized and empowered to execute and deliver on behalf
of the City of La Porte, the industrial district agreement with the
corporation named in Section 1 hereof.
Section 3. The City council officially finds, determines,
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
Ci ty 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
ordinance and the subject matter thereof has been discussed,
considered and formally acted upon. The City Council further
ratifies, approves and confirms such written notice and the
contents and posting thereof.
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ORDINANCE NO. 93-IDA-23
PAGE 2
section 4. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 14th day of March, 1994.
CITY OF LA PORTE
By: jk/'~~4~
;liorman . Ma ne,
Mayor
ATTEST:
~
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Sue Lenes,
City Secretary
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REOUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
March 14. 1994
Requested By: Buddv Jacobs
Report
Department:
Resolution XXX
Parks & Rec
Ordinance
Exhibits: 1. Ordinance No.
2. Recommendation Memorandum from Buddy Jacobs
3. Agreement with Harris County
SUMMARY << RECOMMENDATION
The City of La Porte has negotiated an agreement with Harris County
for the lease of the Sylvan Beach Fishing Pier. The City agrees to
furnish the funds for a contractor to rebuild the pier, maintain
the pier for the duration of the agreement, establish nn escrow
account equivalent to $60,000.00 for the rebuilding of the pier if
it is destroyed or damaged by natural disaster, to rebate to the
County 1/3 of the gross receipts of the pier revenues, after the
$60,000.00 equivalent escrow account is maintained, and the fee
charged for use of the pier not to exceed $5.00 per person unless
approved by Harris County Commissioners' Court.
The County agrees to furnish the plans and specifications for the
reconstruction of the pier and to furnish all of the materials
necessary for the reconstruction of the pier.
The agreement is for a term of thirty-two (32) years unless
terminated by either party.
Staff recommends the approval of the agreement between the City of
La Porte and Harris County for the lease of the Sylvan Beach
Fishing Pier.
Action Required by Council:
Approve the lease agreement between the City and Harris County for
the lease of the Sylvan Beach Fishing Pier.
Availability of Funds:
General Fund
Capital Improvement
Other
Water/Wastewater
General Revenue Sharing
Account Number:
Funds Available:
YES
NO
Approved for City Council Aqenda
~~~
Robert T. Herrera
City Manager
~\,\ '\t
Date
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ORDINANCE NO. 94- 1967
AN ORDINANCE APPROVING AND AUTHORIZING A LEASE AGREBHENT BETWEEN
THE CITY OF LA PORTE AND BARRIS COUNTY, FOR A PUBLIC FISHING PIER
AT SYLVAN BEACH PARK; MAKING VARIOUS FINDINGS AND PROVISIONS
RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS
LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes
the contract, agreement, or other undertaking described in the
title of this ordinance, in substantially the form as shown in the
document which is attached hereto and incorporated herein by this
reference. The city Manager is hereby authorized to execute such
document and all related documents on behalf of the City of La
Porte. The city Secretary is hereby authorized to attest to all
such signatures and to affix the seal of the City to all such
documents.
Section 2. The city Council officially finds, determines,
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
ordinance and the subject matter thereof has been discussed,
considered and formally acted upon. The City Council further
ratifies, approves and confirms such written notice and the
contents and posting thereof.
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ORDINANCE NO. 94-1967
PAGE 2
section 4. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 14th day of March, 1994.
CITY OF LA PORTE
By:
)k)/~~
'Nbrman L.v a 0 e,
Mayor
ATTEST:
LL
Sue Lenes,
City Secretary
W. ASkins,
Attorney
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CITY OF LA PORTE
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February 23, 1994
TO:
Robert T. Herrera, City Manager
B~bS' Parks and Recreation Director
FROM:
SUBJECT:
Agreement with Harris County - Sylvan Beach Fishing Pier
As per your request, I have reviewed the proposed agreement with Harris County in reference
to the leasing by the City of La Porte of the fishing pier located at Sylvan Beach Park. I found
no major differences, other than the agreed-to changes negotiated by yourself and Mr. Louis
Ditta of Harris County, Precinct 2, and the previous drafts of the agreement.
The agreement is for a period of thirty-two (32) years beginning upon execution of the
agreement by the governing bodies of both parties and ending on March 31, 2026. The County
agrees to furnish plans and specifications, which the City agrees to modify to comply with all
applicable laws and regulations, and to furnish all of the materials required to reconstruct the
pier using the existing pilings. The City agrees to provide the funding for a contractor to rebuild
the pier, modify the plans and specifications, establish an escrow account using the funds
collected for use of the pier by the public to be used to rebuild the pier if it is damaged or
destroyed by natural disaster, maintain the pier, establish a fee for use of the pier not to exceed
$5.00 per person unless authorized by the County, and to rebate to the County 1/3 of the gross
annual receipts of the pier, provided the escrow account is maintained at the agreed $60,000.00
equivalent amount (adjusted for inflation annually). The County receives no funds until the
escrow account is the equivalent of $60,000,00.
Staff recommends the approval of the agreement between Harris County and the City of La
Porte for the lease of the Sylvan Beach Fishing Pier. Should you have any questions or desire
further information, please contact me.
BJ/
xc: John Joems, Assistant City Manager
L,Z.
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..-.- -- .
City of La Porte
Established 1892
December 3, 1992
Gene Mosley, Executive Assistant
Administration Building Room 950
1001 Preston
Houston, TX 77002-1891
Dear Mr. Mosley:
The following generally describes a proposed joint venture with Harris County Precinct 2
and the City of La Porte, whereby, both political entities join forces to rebuild and return
to Sylvan Beach a public fishing pier. Should this concept meet with Commissioner
Fontena's approval, I will then forward this letter to our City Attorney and ask that he put
it in a manner acceptable to county standards.
COUNTY RESPONSIBILITIES
1) Agree to give a long term lease to the City.
2) Agree to obtain all necessary permits and keep them current.
3) Design the pier and give the plans to the City.
4) Agree to supply the materials needed to build the pier.
CIIY RESPONSIBILlTlES
1) Agree to provide management and oversight to pier operation.
2) Agree to employ a marine contractor or equivalent to construct building of the pier
in accordance with approved design.
3) Agree to reimburse the county for fees it pays to obtain permits that allow the pier
to be used.
4) Purchase insurance policy and name the county as a co-insured.
5) Will set-up an escrow account to maintain 2/31s of all monies received from
customers that use the. pier. The funds that will go directly to this account will be
used to enhance the pier or restore it in the event of a natural or man made
disaster. This fund will accumulate monies up to $60,000 after which any amount
above the $60,00 will be divided equally between the City and County and not be
restricted.
rO.B,1xlll5. bP"rtc.Tex:l-77'572-1!15. (71)\471-'5020
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December 3, 1992
Page 2
6) The City agrees to supply the County with an annual audit.
7) The City will contract with a responsible party the management and routine
maintenance of the pier.
It is my belief the above concept will allow both the City and the County to return a quality
pier back to the public. This concept relieves the County from maintaining a pier, having
to replace it when money is short, and removes the daily management and maintenance
responsibilities associated with the operation of a public pier.
I hope this letter outlines our discussion of November 23, 1992. Should tne County
agree, the City will then enter into a separate contract with the operator/owner of Unda's
Bait Shop at Sylvan Beach, Mr. Charles Witt. This contract will closely resemble our
agreement.
CHARLES WITT RESPONSIBIUTJES
1) Reimburse City for all expenses it incurs for permits or licenses passed on by the
County to the City.
2) Daily oversee the pier and manage it accordingly.
3) Collect all user fees associated with the pier following City guidelines and
procedures.
4) Documenting daily use and payments received. Carry liability insurance on the
pier meeting State of Texas requirements. Name City and County as co-insured.
S) Offer pier design suggestions to County engineering offices.
6) Establish with City rates to be charged for admission.
7) Pay all utility bills associated with pier.
8) Weekly, pay the City 2/3's of all gross user fees collected for use of the pier.
With this concept, the City allows someone with the fishing and recreation business
experience to manage this asset. Please review and advise. I will be happy to visit with
you further.
Sincerely,
G<~ T. ~~
Robert T. Herrera
City Manager
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LEASE AGREEMENT
THE STATE OF TEXAS ~
~
COUNTY OF HARRIS ~
THIS AGREEMENT made and entered into pursuant to V.T.C.A., Government Code
~791.001 et seq. (the Interlocal Cooperation Act) and V.T.C.A, Local Government Code
~332.021, by and between the City of La Porte, a municipal corporation under the laws of the
State of Texas, hereinafter referred to as "the City," and Harris County, a body corporate and
politic under the laws of the State of Texas, hereinafter referred to as "the County;"
WIT N E SSE T H:
WHEREAS, it is to the mutual benefit of the City and the County to provide public
parks for the residents of the City and the County; and
WHEREAS, the City is willing to reconstruct, operate and maintain a public fishing
pier, hereinafter called "pier," at Sylvan Beach Park, a Harris County Park, located in the City
of La Porte; and
WHEREAS, the County has provided to City the plans and specifications for the
reconstruction of the pier with no representation or warranty as to the suitability of same; and
WHEREAS, the City is willing to determine whether the reconstruction of the pier is
subject to the requirements of 42 D.S.C. ~12.101 et seq. (The Americans With Disabilities
Act), V.A.C.S., Art. 9102, as amended, and other applicable laws; and
WHEREAS, the City is willing to modify the plans and specifications to the extent
required by applicable laws relating to the reconstruction of the pier;
NOW, THEREFORE, in consideration of the mutual covenants, agreements and
benefits to both parties, it is agreed as follows:
1.
Subject to the terms and provisions hereinafter set forth, County has rented and leased,
and by these presents does rent and lease, unto the City, for the term of thirty-two (32) years,
beginning April 1, 1994, and ending March 31, 2026, (unless sooner ended in accordance with
the provisions hereof), the following described premises situated in Harris County, Texas, to-
wit:
A 20 feet wide strip of land 10 feet on both sides of the herein described
centerline out of the Sylvan Beach Park on Galveston Bay in the City of La
Porte, Texas, out of the Johnson Hunter Survey, Abstract 35, Harris County,
Texas, and being more particularly described as follows:
Beginning at a set P.K. Nail marking the intersection of the centerline of anaexisting wooden fishing pier and a wooden bulkhead.
Thence, in a Northwesterly direction, along the centerline of said wooden
fishing pier extended, a distance of 49.41 feet to a set P.K. Nail on the
Southeast side of an existing parking lot for the POINT OF TERMINUS;
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hereinafter called the "premises," together with the right to use, along with
other users of Sylvan Beach Park, the parking lot adjoining the premises, and
the rights of ingress and egress to Bayshore Drive.
II.
Within thirty days after the execution of this agreement, the City, at City's expense,
shall modify the plans and specifications for the reconstruction of the pier to the extent
required by applicable laws, and shall commence to obtain all necessary permits from the State
of Texas, acting by and through the School Land Board and the Commissioner of the General
Land Office, the u.S. Army Corp of Engineers, and any other state or federal regulatory
agency having jurisdiction over the reconstruction and operation of the pier, and the City shall
do any and all other things necessary or required for the reconstruction of the pier. This
Agreement is subject to all of the requirements of the State of Texas, acting by and through the
School Land Board and the Commissioner of the General Land Office, the U.S. Army Corp of
Engineers, and any other state or federal regulatory agency having jurisdiction over the
reconstruction and operation of the pier. Notwithstanding anything herein to the contrary, or
that may be construed to the contrary, it is understood that the termination date of this
Agreement shall be the date the City ceases to meet the requirements of the State of Texas, the
U.S. Army Corp of Engineers, and any other state or federal regulatory agency having
jurisdiction over the reconstruction and operation of the pier, or March 31, 2026, whichever is
sooner. After the modification of the plans and specifications, obtaining of permits for the
reconstruction of the pier and doing all things necessary or required for the reconstruction of
the pier, the City shall notify the County of such fact, after which time the County shall
furnish to City, at County's sole cost and expense, at the Sylvan Beach Park site, all of the
materials required to re-build the pier, in accordance with the plans and specifications so
modified .
m.
After receipt of the materials from the County pursuant to Paragraph II, the City shall
commence to construct, or cause to be constructed, the pier in accordance with the plans and
specifications provided by the County. City shall construct the improvements in a manner so
as to be visible to operators of marine craft at all times, and not constitute a hazard to
operators of marine craft. City shall begin making improvements to the pier within one year
from the approval of this Agreement by the County's Commissioners Court.
IV.
(a) City will establish an escrow account, into which City shall deposit two thirds
(2/3) of all gross receipts from patrons using the pier. The purpose of this escrow account is
to establish a self-insured fund for the future repairs to the pier, or for restoration of the pier in
event of damage or destruction to the pier, either from natural or other causes, which repairs
and restoration the City shall perform. City will continue to deposit, into the escrow account,
two thirds (2/3) of all gross receipts from patrons using the pier, until the escrow account
reaches a balance in an amount that produces buying power equivalent to $60,000.00 in the
year 1993, said balance being hereinafter called "the $60,000.00 equivalent." During the term
of this Agreement, the $60,000.00 equivalent, as used herein, shall mean an amount that
would produce buying power equivalent to $60,000.00 based on the change, if any, in the
Houston, Texas, Average Consumer Price Index-All Urban Customers ("CPI-U"). The
calculation of the increase, if any, is set forth in subparagraph (f) below. In the event the
balance in the escrow account falls below the $60,000.00 equivalent, the City shall promptly
commence depositing two thirds (2/3) of all gross receipts into said escrow account so as to
increase the balance to the $60,000.00 equivalent. After the escrow account reaches a balance
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of the $60,000.00 equivalent, the City shall pay to County one-third (113) of the gross
receipts, as hereinafter defined. On or before the tenth (10th) day of January, April, July and
October, during the term of this Agreement, the City shall compute and pay to the County,
without demand, at the Office of the County Treasurer, the County's one-third (113) portion of
the gross receipts which are not required to be deposited by City into the escrow account,
covering the immediately preceding three month period. City shall accompany each payment
with a sworn statement, certifying as true and correct, the amount of gross receipts collected
pursuant to this Agreement for the immediately preceding three month period.
(b) The terms "gross receipts", as used herein, shall include all money, and the
market value of all property and services received for entrance to or use of all or any part of
the pier. The term "gross receipts" includes the receipts from all sales, leases and rentals of
personal property of every kind and nature including, but not limited to, food, beverages,
equipment, supplies and services, received on or at the premises and pier. The term "gross
receipts" shall not include bona fide gifts and donations but shall include gifts and donations
which are solicited and/or received upon any representation (express or implied) or pretext that
the donor or some third party is or will be entitled to entrance to or use of all or any part of
the pier.
(c) City shall maintain an accounting system and records, which will clearly and
accurately reflect the collection of the gross receipts.
(d) County shall have the right, at any reasonable time to be determined by the
Harris County Auditor, to make periodic audits and inspections of the City's records of the
gross receipts collected pursuant to this agreement.
(e) City shall operate and manage all concessions and collections of gross receipts
on the pier, in accordance with Paragraph XII herein. The amount of the fee charged for
admission on the pier shall not exceed $5.00 per person, unless the prior approval of the
Commissioners Court of County is obtained. All other fees, rates and prices charged shall be
subject to the prior approval by the Commissioners Court of County. City shall post a
schedule of such fees, rates and prices at all times in a conspicuous place on or near the pier.
(f) On each anniversary date of this agreement, the $60,000.00 equivalent will be
adjusted by multiplying $60,000.00 by a fraction, the numerator of which is the CPI-U for the
immediately preceding calendar year, and the denominator of which is the CPI-U for the year
1993. The resulting number shall be the $60,000.00 equivalent for the year commencing on
said anniversary date. In the event the Consumer Price Index is discontinued, the Consumer
Price Index shall thereafter mean such index of prices published by the U. S. Government as
most nearly approximates the Consumer Price Index now published.
For Illustrative Purposes Only:
1994 CPI-U = 121.5
represents a 6.2 % increase
1993 CPI-U = 114.4
Example: If the amount of the $60,000.00 equivalent is $60,000.00 and the
increase required is 6.2 %, then the amount of escalation required
would be $3,720.00 ($60,000.00 x 6.2% = $3,720.(0), and the
amount of the new $60,000.00 equivalent for the new year of the
Agreement would be $63,720.00 ($60,000.00 + $3,720.(0).
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v.
On or before January 31 of each year during the term of this Agreement, the City shall
furnish County with a detailed annual audit of the operation of the pier and premises, setting
out the amount of gross receipts, the amount deposited in the escrow account, and the amount
paid to the County, in a form approved by the Harris County Auditor, covering the previous
calendar year or portion thereof.
VI.
During the term of this agreement, the City will maintain the premises and pier in good
repair and will supply, at its sole expense, all labor, materials, supplies and equipment
necessary for the operation of the pier and premises. Repairs, costing collectively up to and
including $5,000.00 on an annual basis, may be made without the consent of the County,
provided, however, City will furnish written documentation of said minor changes to the
County Engineer within thirty days after making such changes and repairs. Any repairs or
improvements which collectively cost in excess of $5,000.00 annually will require prior
approval by the County Commissioner of the precinct in which the park is located. City shall
not make any additional improvement, additions or alterations to the pier or premises not
provided for in Paragraph IT above, without the prior written consent of County. In the event
City desires to make any design changes, changes, additions or additional improvements to the
premises or pier, City shall submit detailed plans and specifications for same, in advance, to
the County Engineer for approval.
VII.
City will neither place, nor cause to be placed, any sign, projection, advertisement, or
device of any kind whatsoever in said park or upon the sidewalks or streets within the park
without the prior written consent of the Commissioners Court or the County Commissioner in
whose precinct the park is located. City shall remove any and all said signs, projections,
advertisements or devices within thirty (30) days after termination of this agreement, whether
by expiration of the term or for any other reason.
VIll.
County shall have the right to enter upon the pier and premises at any time for the
purpose of inspecting the pier, premises and improvements located thereon to insure that City
is properly maintaining same.
IX.
The County may lock the gates to Sylvan Beach Park at such times as the park is not
open to the general public, and the City shall have no rights hereunder during such times that
Sylvan Beach Park is closed to the general public.
x.
During the term of this agreement, City shall (a) pay all utilities on or for the pier and
premises, and (b) provide police and fire protection at the pier and premises.
XI.
In its performance under this agreement, the City shall observe and comply with all
applicable federal, state and local laws, rules and regulations.
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XII.
City may enter into an agreement with a qualified and responsible person for the
operation, management, and routine maintenance of the premises and pier. Any such
agreement by City with such operator, shall be expressly subject to (1) the terms and
provisions of this agreement and (2) the prior written approval of the Commissioners Court of
the County.
XIII.
City will purchase and maintain during the term of this agreement a comprehensive
general liability insurance policy to cover City and County for any liability in connection with
the use of the premises with coverage in the amounts of not less than One Hundred Thousand
Dollars ($100,000.00) for injuries or death to anyone person, not less than Three Hundred
Thousand Dollars ($300,000.00) for injuries or death to more than one person in anyone
accident or occurrence and not less than One Hundred Thousand Dollars ($100,000.00) for
damage to or destruction of property in anyone accident or occurrence, or in the amounts of
the County's maximum limitation of liability under the Texas Tort Claims Act, as amended.
City shall furnish the County either the original policies or certificates that such insurance is in
full force at all times during the term of this agreement. At all times during which the balance
of funds in the escrow account is an amount less than the $60,000.00 equivalent, the City shall
also maintain fire and extended coverage insurance in an amount sufficient to cover the cost of
materials and labor to rebuild the pier in the event of damage or destruction of same, either
from natural or other causes.
XIV.
City shall not allow any liens or any other encumbrances to attach to the premises.
XV.
In the event of damage or destruction of the pier and premises, whether partial or total,
City may elect to restore the pier and premises, using the proceeds of the escrow account, plus
other City funds as necessary, or City may elect to terminate the agreement, in which event
City will pay to the County, out of the escrow account, an amount deemed sufficient by the
Harris County Engineer to restore the pier, after which time the City shall refund one-half
(1/2) of the remaining balance in the escrow account to the County pursuant to Paragraph XVI
below.
XVI.
Either the City or County may terminate the term of this agreement, with or without
cause, at any time, by giving to the other party hereto at least ninety (90) days advance written
notice of its intention to do so, specifying therein the effective date of such termination. At
the termination of this agreement, whether by lapse of time or under any of the conditions or
provisions contained herein, the pier and all other improvements in the premises will become
the property of the County, and City will (1) peaceably and quietly yield up and surrender the
said premises and pier to the County, and (2) remit to the County, without demand, within
thirty days of said termination, one-half (1/2) of the balance of funds in the escrow account,
provided, however, if in the sole opinion of the Harris County Engineer, the pier is damaged
or in need of repairs or restoration at the time of such termination, then and in that event, the
City shall pay to the County, out of the escrow account, the amount deemed sufficient by the
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Harris County Engineer to restore the pier, after which time the City will refund one-half (1/2)
of the remaining balance in the escrow account to the County.
XVII.
Any notice permitted or required by County to City may be given by depositing the
same in the United States mail, registered, return receipt requested, with postage and registry
fee prepaid, and addressed to City at the following address, to-wit:
City of La Porte
P. O. Box 1115
La Porte, Texas 77572-1115
Attention: City Manager
Any notice permitted or required by City to County shall likewise be in writing and
shall be delivered or deposited in the United States mail, registered, return receipt requested,
with postage and registry fee prepaid, and addressed to the County at the following address,
to;..wit:
Harris County Commissioners Court
Harris County Administration Building
1001 Preston, 9th Floor
Houston, Texas 77002
Attention: Clerk of Commissioners Court
XVllI.
County reserves the right to grant permits and easements across the premises for the
purpose of providing utilities, provided, however, that such utilities do not unreasonably
interfere with the City's use of the premises.
XIX.
The County has set aside the materials, contemplated for the construction of the pier,
from its present inventory of materials, and the County does not contemplate incurring any
further or additional expense for materials pursuant to this agreement.
xx.
In the event of the County's default hereunder, the sole remedy of the City shall be to
terminate this Agreement.
XXI.
This instrument contains the entire agreement between the parties relating to the rights
herein granted and the obligations herein assumed. Any representations or modifications
concerning this Agreement shall be of no force or effect excepting a subsequent modification
in writing signed by all parties hereto.
IN TESTIMONY WHEREOF, this instrument has been executed in duplicate
counterparts, each to have the force and effect of an original as follows:
(a) It has been executed on behalf of the County on the day of
, 1994, by the County Judge of Harris County, Texas,
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.
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pursuant to an Order of the Commissioner's Court of Harris County, Texas,
sitting as the governing body of Harris County, authorizing such execution; and
(b) It has been executed on behalf of the City on the 14th day of
March. , 1994, by its Mayor and attested by its City Secretary,
pursuant to Ordinance of the City Council of the City of La Porte, authorizing
such execution.
ATTEST:
B ~fl. _
y: ~-v-
SUE ENES, City Secretary
CITY OF LA PORTE
1
COUNTERSIGNED:
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By: ;;.:1/
JEFF LITCHFIELD
Director of Finance
APPROVED AS TO FORM:
MIKE DRISCOLL
County Attorney
HARRIS COUNTY
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By: ~K .//-/./0-" '" .J
WILLIAM R. BRUYERE
Senior Assistant County Attorney
Registered with me this
day of
, 1994.
J.E. McCAIN
Building Superintendent
document\bruyere\42988AGR:bah
7
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ORDER AUTHORIZING COUNTY JUDGE TO EXECUTE
A LEASE AGREEMENT BETWEEN HARRIS COUNTY
AND THE CITY OF LA PORTE
THE STATE OF TEXAS ~
~
COUNTY OF HARRIS ~
On this, the J~ day of
~
, 1994, the Commissioners Court
of Harris County, Texas, sitting as the governing body of Harris County, Texas, upon motion
of Commissioner
~-6-~
seconded by Commissioner
Lv-
, duly put and carried;
IT IS ORDERED that County Judge Jon Lindsay be, and he is hereby, authorized to
execute a Lease Agreement between Harris County and the City of La Porte, for the
construction, operation and maintenance of the fishing pier at the Sylvan Beach Park, upon the
terms and conditions as provided for in this Lease Agreement, being hereby referred to and
made a part hereof for all purposes as though fully set forth herein.
PRESENiED TO
Commissioncis Court
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Agenda items 7 & 8 relate to the refunding of current long term
debt with new debt that has a lower effective interest rate. The
result of the refunding is to lower the city's financial
obligations to service its debt.
The numbers pertaining to the refunding will not be know until
Monday afternoon.
They will be presented to the city council by the Director of
Finance and the city's Financial Advisors.
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ORDINANCE NO.
l' '1- : 17/
ORDINANCE AUTHORIZING TIIE ISSUANCE OF CITY OF LA PORTE, TEXAS, GENERAL
OBLIGATION REFUNDING BONDS, SERIES 1994, AND ALL OTHER MATIERS RELATED THERETO
WHEREAS, there are presently outstanding the following obligations of the City of La Porte (the "Issuer"
or the "City"), which are secured by a pledge by the Issuer to levy ad valorem taxes sufficient to pay principal of
and interest on such obligations as they become due (collectively the "Refunded Obligations") which the Issuer
now desires to refund:
REFUNDED
DESCRIPION AMOUNT
College View Municipal Utility District Waterworks and Sewer
System Combination Tax and Revenue Bonds, Series 1968,
dated , 1968 (Assumed Bonds) $ 120,000
MATURlTES CALL
1997-1998 9-1-94
College View Municipal Utility District Waterworks and Sewer
System Combination Tax and Revenue Bonds, Series 1970,
dated , 1970 (Assumed Bonds) $ 15,000
1995 5-1-94
City of La Porte, Texas, General Obligation Bonds,
Series 1986, dated , 1986
$2,175,000
1998-2005
2-15-96
City of La Porte, Texas, General Obligation Bonds,
Series 1989, dated , 1989
$1,850,000
2003-2010
2-15-00
City of La Porte, Texas, General Obligation Bonds,
Series 1990, dated September 15, 1990
$ 600,000
2004-2011
3-15-01
City of La Porte, Texas, General Obligation Refunding Bonds,
Series 1991, dated April 15, 1991 $1,900,000
2001-2005
2-15-99
WHEREAS, Article 717k, Vernon's Texas Civil Statutes, as amended (the "Act"), authorizes the Issuer to
issue refunding bonds and to deposit the proceeds from the sale thereof together with any other available funds
or resources, directly with a place of payment (paying agent) for any of the Refunded Obligations, and such
deposit, if made before such payment dates, shall constitute the making of fmn banking and fInancial arrange-
ments for the discharge and fInal payment of the Refunded Obligations;
WHEREAS, the City Council of the Issuer (the "Council") deems it advisable to refund the Refunded
Obligations in order to lower the annual debt service requirements of the Issuer and to restructure the Issuer's
debt service in a manner which will permit the issuance of additional general obligation bonds without a tax rate
increase or with a smaller increase than would otherwise be required;
WHEREAS, all the Refunded Obligations mature or are subject to redemption prior to maturity within 20
years of the date of the bonds hereinafter authorized;
WHEREAS, it is now deemed necessary and advisable that said bonds be issued at this time, in the
amounts, and for the purpose as herein shown; and
WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to the Act and the
Charter of the Issuer.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA POR1E, 1EXAS, TIIAT:
SECTION 1. AMOUNT AND PURPOSE OF THE BONDS, The bonds of City of La Porte (the "Issuer")
are hereby authorized to be issued and delivered in the aggregate principal amount of $7,505,000, FOR THE
PURPOSE OF PROVIDING FUNDS TO REFUND THE ISSUER'S REFUNDED OBLIGATIONS (as described
in the preamble hereto),
SECTION 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS, AND MATURITIES OF
BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF LA PORTE, 1EXAS,
GENERAL OBLIGATION REFUNDING BOND, SERIES 1994", and initially there shall be issued, sold, and
delivered hereunder fully registered bonds, without interest coupons, dated April 1, 1994, in the respective
denominations and principal amounts hereinafter stated, payable to the respective initial registered owners thereof
(as designated in Section 11 hereof), or to the registered assignee or assignees of said bonds or any portion or
portions thereof (in each case, the "Registered Owner", "Owner", or "owner").
The tenn "Bonds" as used in this Ordinance shall mean and include collectively the bonds initially issued
and delivered pursuant to this Ordinance and all substitute bonds exchanged therefor, as well as all other
substitute bonds and replacement bonds issued pursuant hereto, and the tenn "Bond" shall mean any of the
Bonds. The Bonds shall be numbered R-1 upward, shall be in the denomination of $5,000 each or any integral
multiple thereof, and shall mature and be payable serially on February 15 in each of the years and in the
principal amounts, respectively as set forth in the following schedule:
YEARS AMOUNTS YEARS AMOUNTS
1995 $ 195,000 2001 $ 1,055,000
1996 280,000 2002 965,000
1997 270,000 2003 1,100,000
1998 505,000 2004 1,075,000
1999 460,000 2005 915,000
2000 685,000
SECTION 3. INTEREST. The Bonds scheduled to mature during the years, respectively, set forth below
shall bear interest from the dates specified in the FORM OF BOND set forth in this Ordinance to their respective
dates of maturity or redemption prior to maturity at the following rates per annum:
YEAR OF INTEREST YEAR OF INTEREST
MATURITY RA1E MATURITY RATE
1995 % 2001 %
1996 % 2002 %
1997 % 2003 %
1998 % 2004 %
1999 % 2005 %
2000 %
Said interest shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth
in this Ordinance.
SECTION 4. CHARACTERISTICS OF THE BONDS, (a) Re~istration, Transfer, and Exchan~e;
Authentication. The Issuer shall keep or cause to be kept at the principal corporate trust office of Texas
Commerce Bank National Association, Houston, Texas (the "Paying Agent/Registrar") books or records for the
registration of the transfer and exchange of the Bonds (the "Registration Books"), and the Issuer hereby appoints
the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such
registrations of transfers and exchanges under such reasonable regulations as the Issuer and Paying
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Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such registrations, transfers, and
exchanges as herein provided. The Mayor and the City Secretary are authorized to enter into a Paying
AgentlRegistrar Agreement substantially in the fonn of Exhibit A, attached hereto. The Paying Agent/Registrar
shall obtain and record in the Registration Books the address of the registered owner of each Bond to which
payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each
registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be
mailed, and such interest payments shall not be mailed unless such notice has been given. To the extent possible
and under reasonable circumstances, all transfers of Bonds shall be made within three business days after request
and presentation thereof. The Issuer shall have the right to inspect the Registration Books during regular
business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Regis-
tration Books confidential and, unless otherwise required by law, shall not pennit their inspection by any other
entity. The Paying Agent/Registrar's standard or customary fees and charges for making such registration,
transfer, exchange and delivery of a substitute Bond or Bonds shall be paid as provided in the FORM OF BOND
set forth in this Ordinance. Registration of assignments, transfers, and exchanges of Bonds shall be made in the
manner provided and with the effect stated in the FORM OF BOND set forth in this Ordinance. Each substitute
Bond shall bear a letter and/or number to distinguish it from each other Bond.
Except as provided in (c) below, an authorized representative of the Paying Agent/Registrar shall, before the
delivery of any such Bond, date and manually sign the Paying Agent/Registrar's Authentication Certificate, and
no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying
Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for transfer and exchange. No addi-
tional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any
other body or person so as to accomplish the foregoing transfer and exchange of any Bond or portion thereof,
and the Paying Agent! Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in
the manner prescribed herein, and said Bonds shall be of type composition printed on paper with lithographed or
steel engraved borders of customary weight and strength. Pursuant to Vernon's Ann. Tex. Civ. St. Art. 717k-6,
and particularly Section 6 thereof, the duty of transfer and exchange of Bonds as aforesaid is hereby imposed
upon the Paying Agent/Registrar, and, upon the execution of said certificate, the transferred and exchanged Bond
shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds which
initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General, and registered
by the Comptroller of Public Accounts.
(b) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent/Registrar to act as
the paying agent for paying the principal of and interest on the Bonds, all as provided in this Ordinance. The
Paying Agent! Registrar shall keep proper records of all payments made by the Issuer and the Paying
Agent/Registrar with respect to the Bonds.
(c) In General, The Bonds (i) shall be issued in fully registered fonn, without interest coupons, with the
principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed
prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be exchanged for other Bonds,
(v) shall have the characteristics, (vi) shall be signed, sealed, executed, and authenticated, (vii) shall have the
principal of and interest on the Bonds be payable, and (viii) shall be administered and the Paying AgentlRegistrar
and the Issuer shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the
manner and to the effect as required or indicated, in the FORM OF BOND set forth in this Ordinance. The
Bonds initially issued and delivered pursuant to this Ordinance numbered R-l through R-ll (collectively, the
"Initial Bonds") shall be delivered to the initial purchaser and are not required to be, and shall not be, authenti-
cated by the Paying Agent/Registrar, but on each substitute Bond issued in exchange for the Initial Bonds or any
Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall execute the PAYING
AGENT/REGISTRAR'S AUTHENTICATION CERTIFICAlE, in the fonn set forth in the FORM OF BOND.
(d) Substitute Payin~ A~ent/Re~istrar. The Issuer covenants with the registered owners of the Bonds that
at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, trust
company, fmancial institution, or other agency to act as and perfonn the services of Paying Agent/Registrar for
the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The Issuer reserves the
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right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to
the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment
date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor
by merger, acquisition, or other method) should resign or otherwise cease to act as such, the Issuer covenants
that promptly it will appoint a competent and legally qualified bank, trust company, fmancial institution, or other
agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar,
the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy
thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Regis-
trar designated and appointed by the Issuer. Upon any change in the Paying Agent/Registrar, the Issuer promptly
will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the
Bonds, by United States mail, frrst-class postage prepaid, which notice also shall give the address of the new
Paying Agent! Registrar. By accepting the position and perfonning as such, each Paying Agent/Registrar shall
be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar.
SECTION 5. FORM OF BONDS. The fonn of the Bonds, including the fonn of Paying Agent/Registrar's
Authentication Certificate, the fonn of Assignment, the fonn of Statement of Insurance, and the fonn of
Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be attaChed to the Bonds
initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such
appropriate variations, omissions, or insertions as are pennitted or required by this Ordinance.
[,FORM OF BOND]
[,Fonn of Front Panel of Bond]
NO.R-
United States of America
CITY OF~XAS, AMOUNT
GENERAL OBLIGATION REFUNDING BOND
SERIES 1994
PRINCIPAL
INTEREST RATE
MATURITY DATE
ISSUE DATE
April 1, 1994
CUSIP NO.
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
ON THE MATURITY DATE, specified above, THE CITY OF LA PORTE, a home rule city and
municipal corporation of the State of Texas (the "Issuer"), hereby promises to pay to the Registered Owner,
specified above, or registered assigns (hereinafter called the "registered owner") the Principal Amount, specified
above, and to pay interest thereon from the Issue Date, specified above, on August 15, 1994, and semiannually
on each February 15 and August 15 thereafter to the Maturity Date, specified above, or the date of redemption
prior to maturity, at the Interest Rate per annum, specified above; except that if this Bond is required to be
authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such
principal amount shall bear interest from the interest payment date next preceding the date of authentication,
unless such date of authentication is after any Record Date but on or before the next following interest payment
date, in which case such principal amount shall bear interest from such next following interest payment date;
provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for
which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date
to which such interest has been paid in full.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States
of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered
owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption
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prior to maturity, at the principal corporate trust office of Texas Commerce Bank National Association,
Houston, Texas, or its successor, which is the "Paying Agent/Registrar" for this Bond. The payment of interest
on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest
payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and
payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond adopted
on , 1994 (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose
as hereinafter provided; and such check shall be sent by the Paying Agent/Registrar by United States mail, first-
class postage prepaid, on each such interest payment date, to the registered owner hereof, at its address as it
appeared on the last business day of the month next preceding each such date (the "Record Date") on the Regis-
tration Books kept by the Paying Agent/Registrar, as hereinafter described. In addition, interest may be paid by
such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the
registered owner.
THIS BOND is one of a Series of Bonds dated as of April 1, 1994, authorized in accordance with the
Constitution and laws of the State of Texas in the original principal amount of $7,505,000 FOR THE PURPOSE
OF PROVIDING FUNDS TO REFUND CERTAIN OF THE ISSUER'S OUTSTANDING OBLIGATIONS (as
described in the preamble to the Bond Ordinance).
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON
THE REVERSE HEREOF, wmCH PROVISIONS SHALL HAVE THE SAME FORCE AND EFFECT AS IF
SET FORTH IN THIS SPACE.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile
signature of the Mayor of the Issuer and countersigned with the manual or facsimile signature of the City
Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile,
on this Bond.
CITY OF LA PORTE, TEXAS
(facsimile si~nature)
City Secretary
(facsimile si~nature)
Mayor
[Fonn of Back Panel of Bond]
THE BONDS are issued pursuant to the Bond Ordinance whereunder the Issuer covenants to levy a
continuing direct annual ad valorem tax on taxable property within the Issuer, not to exceed $2.50 per assessed
$100 valuation, as provided in Article XI, Section 5 of the Texas Constitution, for each year while any part of
the Bonds are considered outstanding under the provisions of the Bond Ordinance, in sufficient amount to pay
interest on each Bond as it becomes due, to provide a sinking fund for the payment of the principal of the Bonds
when due, and to pay the expenses of assessing and collecting such tax, all as more specifically provided in the
Bond Ordinance. Reference is hereby made to the Bond Ordinance for provisions with respect to the custody
and application of the Issuer's funds, remedies in the event of a default hereunder or thereunder, and the other
rights of the registered owner,
THIS BOND IS lRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender at the
principal corporate office of the Paying Agent/Registrar. If this Bond is being transferred, it shall be duly
endorsed for transfer or accompanied by an assignment duly executed by the registered owner, or his authorized
representative, subject to the tenns and conditions of the Bond Ordinance.
ANY ACCRUED INTEREST DUE at maturity or upon the redemption of this Bond prior to maturity as
provided herein shall be paid to the registered owner upon presentation and surrender of this Bond for redemp-
tion and payment at the principal corporate trust office of the Paying Agent/Registrar. The Issuer covenants with
the registered owner of this Bond that on or before each principal payment date, interest payment date, and
accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Inter-
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est and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in
immediately available funds, of all principal of and interest on the Bonds, when due.
IF TIlE DAlE for the payment of the principal of or interest on this Bond shall be a Saturday, a Sunday,
a legal holiday, or a day on which banking institutions in the city where the principal corporate trust office of the
Paying Agent/Registrar is located are authorized by law or executive order to close, or the United States Postal
Service is not open for business, then the date for such payment shall be the next succeeding day which is not
such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close, or the
United States Postal Service is not open for business; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
ON FEBRUARY 15, 2002, or on any date thereafter, the Bonds of this Series may be redeemed prior to
their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source,
as a whole, or in part (provided that a portion of a Bond may be redeemed only in an integral multiple of
$5,(00) at the redemption price of the principal amount of Bonds called for redemption, plus accrued interest
thereon to the date fixed for redemption. If less than all of the Bonds are to be redeemed, the Issuer shall
detennine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying
Agent/Registrar to call by lot Bonds, or portions thereof, within such maturity or maturities and in such principal
amounts, for redemption.
AT LEAST 30 days prior to the date for any such redemption, a notice of such redemption shall be sent
by the Paying Agent/Registrar by United States mail, first class, postage prepaid, to the registered owner of each
Bond, or portion thereof to be redeemed, at its address as it appeared on the Registration Books on the 45th day
prior to such redemption date and to major securities depositories, national bond rating agencies, and bond
information services; provided, however, that the failure to send, mail, or receive such notice, or any defect
therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for
the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the
Issuer with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the
portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If
such notice of redemption is given, and if due provision for such payment is made, all as provided above, this
Bond, or the portion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its
scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded
as being outstanding except for the right of the registered owner to receive the redemption price plus accrued
interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of
this Bond or any portion hereof. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having
the same maturity date, bearing interest at the same rate, in any denomination 0r denominations in any integral
multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to
the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for
cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance.
ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without interest coupons, in
the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any
unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be
assigned, transferred, and exchanged for a like aggregate principal amount of fully registered Bonds, without
interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having
the same denomination or denominations in any integral multiple of $5,000 as requested in writing by the
appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this Bond to the
Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond
Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and
surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in fonn and with
guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any
portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or
names this Bond or any such portion or portions hereof is or are to be registered. The fonn of Assignment
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printed or endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof.
but such method is not exclusive. and other instruments of assignment satisfactory to the Paying Agent/Registrar
may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the
registered owner. The person requesting such transfer and exchange shall pay the Paying Agent/Registrar's
reasonable standard or customary fees and charges for transferring and exchanging any Bond or portion thereof.
In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by
the person requesting such assignment, transfer. or exchange, as a condition precedent to the exercise of such
privilege. The foregoing notwithstanding, in the case of the exchange of a portion of a Bond which has been
redeemed prior to maturity, as provided herein, and in the case of the exchange of an assigned and transferred
Bond or Bonds or any portion or portions thereof, such fees and charges of the Paying Agent/Registrar will be
paid by the Issuer. The Paying Agent/Registrar shall not be required to make any such transfer or exchange (i)
during the period commencing with the close of business on any Record Date and ending with the opening of
business on the next following principal or interest payment date or (ii) with respect to any Bond or any portion
thereof called for redemption prior to maturity, within 45 days prior to its redemption date.
IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise
ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent
and legally qualified substitute therefor, and cause written notice thereof to be mailed to the registered owners of
the Bonds.
BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the
terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges
that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the
governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance
constitute a contract between each registered owner hereof and the Issuer.
IT IS HEREBY CERTIFIED, RECITED, AND COVENANlED mAT this Bond has been duly and
validly authorized, issued, and delivered; all acts, conditions, and things required or proper to be performed,
exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed,
existed, and been done in accordance with law; and ad valorem taxes sufficient to provide for the payment of the
interest on and principal of this Bond, as such interest comes due, and as such principal matures, have been
levied and ordered to be levied against all taxable property in the Issuer, and have been pledged for such
payment, within the limit prescribed by law,
[FORM OF PAYING AGENTIREGISlRAR'S AUTHENTICATION CERTIFICATE]*
* Printer - Do not print on Initial Bonds
PAYING AGENT/REGISlRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described
in the text of this Bond; and that this Bond has been issued in exchange for, a bond, bonds, or a portion of a
bond or bonds of a Series which originally was approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts of the State of Texas.
Dated
TEXAS COMMERCE BANK NATIONAL ASSOCIATION,
HOUSTON, TEXAS
Paying Agent/Registrar
By
Authorized Signature
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[FORM Of{ STATEMENT OF INSURANCE]
STATEMENT OF INSURANCE
[FORM OF ASSIGNMENT]
ASSIGNMENT
FOR Y ALUE RECEIVED, the undersigned registered owner of this bond or duly authorized representative
or attorney thereof, hereby assigns this bond to
I
(Assignee's Social
Security or Taxpayer
Identification Number)
I
(print or typewrite Assignee's name
and address, including zip code)
and hereby irrevocably constitutes and appoints
attorney to transfer the registration of this bond on the Bond Registration Books with full power of substitution
in the premises.
Dated:
Signature Guaranteed:
NOTICE: The signature of the
Registered Owner must be gua-
ranteed. by a member of the
New York Stock Exchange or a
commercial bank or trust
company.
Registered Owner
NOTICE: This signature
must correspond with the
name of the Registered
Owner appearing on the face
of this bond in every
particular way without alteration or enlargement or any
change whatsoever.
The following abbreviations, when used in the assignment above or on the face of the within
Bond, shall be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust) (Minor)
under Unifonn Gifts to Minors Act
(State)
Additional abbreviations may also be used though not in the list above.
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[FORM OF REGIS1RATION CERTIFICATE
OF THE COMPTROLLER OF PUBLIC ACCOUNTS]*
*To be printed or attached to Initial Bonds only
COMPTROLLER'S REGIS1RATION CERTIFICATE: REGISTER NO.
I hereby certify that this Bond has been examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public
Accounts of the State of Texas.
Witness my signature and seal this
COMPTROLLER'S SEAL
Comptroller of Public Accounts
of the State of Texas
[END OF FORMS]
SECTION 6. TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby
created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained
by the Issuer at an official depository bank of the Issuer. The Interest and Sinking Fund shall be kept separate
and apart from all other funds and accounts of the Issuer, and shall be used only for paying the interest on and
principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be
deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds
or interest thereon are outstanding and unpaid, the Council shall compute and ascertain a rate and amount of ad
valorem tax which will be sufficient to raise and produce the money required to pay the interest on the Bonds as
such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds
as such principal matures (but never less than 2% of the original principal amount of said Bonds as a sinking
fund each year); and said tax shall be based on the latest approved tax rolls of the Issuer, with full allowance
being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is
hereby levied, and is hereby ordered to be levied, against all taxable property in the Issuer for each year while
any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected
each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes
sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due
and such principal matures, are hereby pledged for such payment, within the limit prescribed by law,
SECTION 7. DISPOSITION OF BOND PROCEEDS. The proceeds of the Bonds shall be placed into the
Interest and Sinking Fund and the Escrow Fund of the Issuer as follows:
(a) Interest and Sinking Fund, An amount equal to the accrued interest on the Bonds from the date of the
Bonds to the date of delivery to the Initial Purchaser shall be deposited in the Interest and Sinking Fund.
(b) Escrow Fund. The proceeds of the Bonds remaining after the above described deposit into the Interest
and Sinking Fund shall be placed in the Escrow Fund (after created) to be used by the Issuer for the purposes
described in the Escrow Agreement hereafter authorized.
SECTION 8. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the
Bonds provided by the laws of the State of Texas, the Issuer and the Council covenant and agree that in the
event the Issuer defaults in the payment of the principal of or interest on any of the Bonds when due, fails to
make the payments required by this Ordinance to be made into the Interest and Sinking Fund, or defaults in the
observance or perfonnance of any of the covenants, conditions, or obligations set forth in this Ordinance, the
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owner of any of the Bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction
compelling and requiring the Council and other officers of the Issuer to observe and perfonn any covenant,
obligation, or condition prescribed in this Ordinance. No delay or omission by any owner to exercise any right
or power accruing to such owner 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 Ordinance shall be
available to any owner of any of the Bonds and shall be cumulative of all other existing remedies.
SECTION 9. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be
paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the
extent provided in subsection (d) of this Section 10, when payment of the principal of such Bond., plus interest
thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise) either
(i) shall have been made or caused to be made in accordance with the tenns thereof (including the giving of any
required notice of redemption) or (ii) shall have been provided for on or before such due date by irrevocably
depositing with or making available to the Paying Agent/Registrar for such payment (A) lawful money of the
United States of America sufficient to make such payment or (B) Government Obligations (hereinafter defmed)
which mature as to principal and interest in such amounts and at such times as will insure the availability,
without reinvestment, of sufficient money to provide for such payment, and when proper arrangements have been
made by the Issuer with the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall
have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as
aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the
benefits of, the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and
interest shall be payable solely from such money or Government Obligations.
(b) Any money so deposited with the Paying Agent/Registrar may at the written direction of the Issuer also
be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all
income from such Government Obligations received by the Paying Agent/Registrar which is not required for the
payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be
turned over to the Issuer, or deposited as directed in writing by the Issuer.
(c) The tenn "Government Obligations" as used in this Section, shall mean direct obligations of the United
States of America, including obligations the principal of and interest on which are unconditionally guaranteed by
the United States of America, which may be United States Treasury obligations such as its State and Local
Government Series, which may be in book-entry fonn.
(d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall perfonn
the services of Paying Agent/Registrar for such Defeased Bonds the same as if they bad not been defeased, and
the Issuer shall make proper arrangements to provide and pay for such services as required by this Ordinance.
(e) [Insurance to Come].
SECTION 10. DAMAGED. MUTILATED, LOST. STOLEN. OR DESTROYED BONDS. (a)
Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost. stolen, or destroyed, the
Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal
amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for
such Bond in the manner hereinafter provided.
(b) Application for Replacement- Bonds. Application for replacement of damaged, mutilated, lost, stolen,
or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case
of loss, theft, or destruction of a Bond. the registered owner applying for a replacement bond shall furnish to the
Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of
them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of
a Bond, the registered owner shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their
satisfaction of the loss. theft, or destruction of such Bond, as the case may be. In every case of damage or
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mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the
Bond so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such
Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal
of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same
(without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement
Bond, provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Bonds, Prior to the issuance of any replacement bond, the Paying
Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in
connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the
fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or
not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be
entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds dilly issued
under this Ordinance,
(e) Authoritv for Issuing Replacement Bonds. In accordance with Section 6 of Vernon's Ann. Tex. Civ.
S1. Art. 717k-6, this Section 11 of this Ordinance shall constitute authority for the issuance of any such
replacement bond without necessity of further action by the governing body of the Issuer or any other body or
person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent!
Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and
with the effect, as provided in Section 4(a) of this Ordinance for Bonds issued in exchange for other Bonds.
SECTION 11. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S
OPINION, AND CUSIP NUMBERS. The Mayor of the Issuer is hereby authorized to have control of the
Bonds initially issued and delivered hereunder and all necessary records and proceedings pertaining to the Bonds
pending their delivery and their investigation, examination, and approval by the Attorney General of the State of
Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of
the 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 attached to such Bonds, and the seal of said
Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of
McGinnis, Lochridge & Kilgore, Bond Counsel and the assigned CUSIP numbers may. at the option of the
Issuer, be printed on the Bonds issued and delivered under this Ordinance, but neither shall have any legal effect,
and shall be solely for the convenience and information of the registered owners of the Bonds.
SECTION 12. COVENANTS OF THE ISSUER. (a) General Covenants. The Issuer covenants and
represents that:
(i) The Issuer is a duly incorporated Home Rule City, having more than 5000 inhabitants, operating
and existing under the Constitution and laws of the State of Texas, and is duly authorized under the laws
of the State of Texas to create and issue the Bonds; all action on its part for the creation and issuance of
the Bonds has been duly and effectively taken; and the Bonds in the hands of the Owners thereof are and
will be valid and enforceable obligations of the Issuer in accordance with their terms; and
(ii) The Bonds shall be ratably secured in such manner that no one Bond shall have preference over
other Bonds.
(b) Specific Covenants. The Issuer covenants and represents that, while the Bonds are outstanding and
unpaid, it will:
(i) Levy an ad valorem tax that will be sufficient to provide funds to pay the current interest on the
Bonds and to provide the necessary sinking fund, all as described in this Ordinance; and
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(ii) Keep proper books of record and account in which full, true, and correct entries will be made of
all dealings, activities, and transactions relating to the Funds created pursuant to this Ordinance, and all
books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspec-
tion upon request from any Owner.
(c) Covenants Re~ardin~ Tax Exemption of Interest on the Bonds. The Issuer covenants to take any
action to maintain, or refrain from any action which would adversely affect, the treatment of the Bonds as
obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" of
the holder for purposes of federal income taxation. In furtherance thereof, the Issuer specifically covenants as
follows:
(i) To take any action to assure that no more than 10% of the proceeds of the Bonds (less amounts
deposited to a reserve fund, if any) are used for any "private business use," as defined in section l4l(b)(6)
of the Code or, if more than 10% of the proceeds are so used, that amounts, whether or not received by
the Issuer with respect to such private business use, do not under the tenns of this Ordinance or any
underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10% of the
debt service on the Bonds, in contravention of section l4l(b)(2) of the Code;
(ii) To take any action to assure that in the event that the "private business use" described in
subsection (i) hereof exceeds 5% of the proceeds of the Bonds (less amounts deposited into a reserve fund,
if any), then the amount in excess of 5% is used for a "private business use" which is "related" and not
"disproportionate," within the meaning of section l4l(b)(3) of the Code, to the governmental use;
(ill) To take any action to assure that no amount which is greater than the lesser of $5,000,000 or
5% of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is directly or
indirectly used to fmance loans to persons, other than state or local governmental units, in contravention of
section l41(c) of the Code;
(iv) To refrain from taking any action which would otherwise result in the Bonds being treated as
"private activity bonds" within the meaning of section l4l(b) of the Code;
(v) To refrain from taking any action that would result in the Bonds being "federally guaranteed"
within the meaning of section l49(b) of the Code;
(vi) To refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire
or to replace funds which were used, directly or indirectly, to acquire investment property (as defmed in
section l48(b)(2) of the Code) which would produce a materially higher yield over the tenn of the Bonds,
other than investment property acquired with --
(A) proceeds of the Bonds invested for a reasonable temporary period of three years or less, or
in the case of a refunding a period of 30 days or less, until such proceeds are needed for the purpose
for which the Bonds are issued,
(B) amounts invested in a bona fide debt service fund, within the meaning of section 1.103-
13(b)(12) of the Treasury Regulations, and
(C) amounts deposited in any reasonably required reserve or replacement fund to the extent
such amounts do not exceed 10% of the proceeds of the Bonds;
(vii) To otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of
the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section
148 of the Code (relating to arbitrage) and, to the extent applicable, section l49(d) of the Code (relating to
advance refundings);
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(viii) To pay to the United States of America at least once during each five year period (beginning
on the date of delivery of the Bonds) an amount that is at least equal to 90% of the "Excess Earnings,"
within the meaning of section l48(f) of the Code, and to pay to the United States of America, not later
than 60 days after the Bonds have been paid in full, 100% of the amount then required to be paid as a
result of Excess Earnings under section 148(f) of the Code; and
(ix) To maintain such records as will enable the Issuer to fulml its responsibilities under this Section
and section 148 of the Code and to retain such records for at least six years following the [mal payment of
principal and interest on the Bonds.
It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with
the Code and any regulations or rulings promulgated by the U,S. Department of Treasury pursuant thereto. In
the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code,
as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the
extent that such modification or expansion, in the opinion of nationally-recognized bond counsel, will not
adversely affect the exemption of interest on the Bonds under section 103 of the Code. In the event that
regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to
the Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary, in the opinion of
nationally recognized bond counsel, to preserve the exemption from federal income taxation of interest on the
Bonds under section 103 of the Code.
In order to facilitate compliance with the above covenants (vii), (viii), and (ix), a "Rebate Fund" is hereby
established by the Issuer for the sole benefit of the United States of America, and such Fund shall not be subject
to the claim of any other person, including without limitation the Bondholders. The Rebate Fund is established
for the additional purpose of compliance with section 148 of the Code.
SECTION 13. DESIGNATION AS QUALIFIED TAX-EXEMPT BONDS. The City hereby designates the
Bonds as "qualified tax-exempt bonds" as defined in section 265(b)(3) of the Internal Revenue Code of 1986, as
amended (the "Code"). In furtherance of such designation, the City represents, covenants, and warrants the
following: (a) during the calendar year in which the Bonds are issued. the City (including any subordinate
entities) has not designated nor will designate bonds, which when aggregated with the Bonds, will result in more
than $10,000,000 of "qualified tax-exempt bonds" being issued; (b) the City reasonably anticipates that the
amount of tax-exempt obligations issued during the calendar year in which the Bonds are issued by the City (or
any subordinate entities) will not exceed $10,000,000; and (c) the City will take such action or refrain from such
action as necessary in order that the Bonds will not be considered "private activity bonds" within the meaning of
section 141 of the Code,
SECTION 14. SALE OF BONDS, The Bonds are hereby sold and shall be delivered to Masterson
Moreland Sauer Whisman, Inc. and Rauscher Pierce Refsnes, Inc (the "Underwriters"), pursuant to the terms and
provisions of the Purchase Contract attached hereto as Exhibit B and the Mayor is hereby authorized to execute
and deliver such Purchase Contract. The Bonds shall initially be registered in the name of Masterson Moreland
Sauer Whisman, Inc. The officers of the Issuer are hereby authorized and directed to execute and deliver such
certificates, instructions, or other instruments as are required or necessary to accomplish the purposes of this
Ordinance.
SECTION 15, APPROVAL OF OFFICIAL STATEMENT. The Issuer hereby approves the form and
content of the Official Statement relating to the Bonds, and any addenda, supplement, or amendment thereto and
approves the distribution of such Official Statement in the reoffering of the Bonds by the Initial Purchasers in
final form, with such changes therein or additions thereto as the officer executing the same may deem advisable,
such determination to be conclusively evidenced by his execution thereof. It is further officially found deter-
mined and declared that the statements and representations contained in said Official Statement are true and
correct in all material respects to the best knowledge and belief of the Council.
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SECTION 16, CONSIDERATIONS OF RERJNDING. The Council hereby finds that by refunding the
Refunded Obligations the Issuer will (i) lower the annual debt service requirements with respect to its general tax
obligations and (ii) restructure its debt service in a manner which will allow the issuance of additional bond
issues without a tax rate increase or with a smaller increase than would otherwise be required.
SECTION 17. NOTICE OF REDEMPTION TO PAYING AGENT AND REGISTERED OWNERS AND
PUBLICATION. The principal of and accrued interest on the Refunded Obligations shall be paid on the earliest
redemption date with proceeds of the Bonds, and the Refunded Obligations are hereby called for redemption on
said dates. Texas Commerce Bank National Association, Houston, Texas is hereby directed to make appropriate
arrangements so that the principal of and accrued interest on such Refunded Obligations may be redeemed at
said bank on such redemption dates. Unless notice is waived by the owners thereof, a copy of the Notices of
Prior Redemption, substantially in the fonn attached hereto as Exhibit A, shall be delivered to the paying agent
bank for the Refunded Obligations and a copy of such Notices of Prior Redemption shall be mailed to the
registered owner thereof, or otherwise given as provided in the appropriate order, resolution, or ordinance
authorizing the Refunded Obligations.
SECTION 18. ESCROW AGREEMENT. The discharge of the Refunded Obligations shall be effectuated
pursuant to the tenns and provisions of the Escrow Agreement, the tenns and provisions of which are hereby
approved, subject to such insertions, additions, and modifications as shall be necessary (a) to carry out the
program designed for the City by Masterson Moreland Sauer Whisman, Inc. and which shall be certified as to
mathematical accuracy by Deloitte & Touche, Certified Public Accountants, whose Report shall ~ delivered with
the Escrow Agreement, (b) to maximize the City's present value savings and/or minimize the City costs of
refunding, (c) to comply with all applicable laws and regulations relating to the refunding of the Refunded
Obligations, and (d) to carry out the other intents and purposes of this Ordinance, and the Mayor is hereby
authorized to execute and deliver the Escrow Agreement on behalf of the City in multiple counterparts and the
City Secretary is hereby authorized to attest thereto and affix the City's seal.
SECTION 19. SOURCE OF CITY RJNDS USED IN RERJNDING, The amount of $
available funds of the City are hereby appropriated and shall be deposited to the Escrow Fund which together
with certain proceeds of the Bonds shall be used to refund the Refunded Obligations.
SECTION 20. PURCHASE OF UNITED STATES TREASURY OBLIGATIONS, To assure the purchase
of the Escrowed Securities referred to in the Escrow Agreement, the Mayor, the City's Chief Financial Officer,
and the Escrow Agent are hereby authorized to subscribe for, agree to purchase, and purchase non-callable
obligations of the United States of America, in such amounts and maturities and bearing interest at such rates as
may be provided for in the Report, and to execute any and all subscriptions, purchase agreements, commitments,
letters of authorization, and other documents necessary to effectuate the foregoing, and any actions heretofore
taken for such purpose are hereby ratified and approved.
SECTION 21. MATTERS RELATED TO RERJNDING. In order that the Issuer shall satisfy in a timely
manner all of its obligations under this Ordinance, the Mayor and all other appropriate officers and agents of the
Issuer are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the
refunding of the Refunded Obligations, including without limitation, executing and delivering on behalf of the
Issuer all certificates, consents, receipts, requests, notices, and other documents as may be reasonably necessary
to satisfy the Issuer's obligations under this Ordinance and to direct the transfer and application of funds of the
Issuer consistent with the provisions of this Ordinance.
SECTION 22. ORDINANCE A CONTRACT: AMENDMENTS. This Ordinance shall constitute a contract
with the Owners, from time to time, of the Bonds, binding on the Issuer and its successors and assigns, and shall
not be amended or repealed by the Issuer as long as any Bond remains outstanding except as pennitted in this
Section. The Issuer may, without the consent of or notice to any owners, amend, change, or modify this
Ordinance as may be required (i) by the provisions hereof, (ii) in connection with the issuance of any additional
bonds, (iii) for the purpose of curing any ambiguity, inconsistency, or fonnal defect or omission herein, or (iv) in
connection with any other change which is not to the prejudice of the Owners. The Issuer may, with the written
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consent of the Owners of a majority in aggregate principal amount of Bonds then outstanding affected thereby,
and the insurer of any Bonds amend, change, modify, or rescind any provisions of this Ordinance; provided that
without the consent of all of the Owners affected, no such amendment, change, modification, or rescission shall
(i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal
amount thereof to the rate of interest thereon, or in any other way modify the tenns of payment of the principal
of or interest on additional bonds on a parity with the lien of the Bonds, (ii) give any preference of any Bond
over any other Bond, (iii) extend any waiver of default to subsequent defaults, or (iv) reduce the aggregate
principal amount of Bonds required for consent to any such amendment, change, modification, or rescission.
Whenever the Issuer shall desire to make any amendment or addition to or rescission of this Ordinance requiring
consent of the Owners, the Issuer shall cause notice of the amendment, addition, or rescission to be given as
described above for a notice of redemption. Whenever at any time within one year after the date of the giving
of such notice, the Issuer shall receive an instrument or instruments in writing executed by the Owners of a
majority in aggregate principal amount of the Bonds then outstanding affected by any such amendment, addition,
or rescission requiring the consent of Owners of Bonds, which instrument or instruments shall refer to the
proposed amendment, addition, or rescission described in such notice and shall specifically consent to and
approve the adoption thereof in substantially the fonn of the copy thereof referred to in such notice, thereupon,
but not otherwise, the Issuer may adopt such amendment, addition, or rescission in substantially such fonn,
except as herein provided. No Owner may thereafter object to the adoption of such amendment, addition, or
rescission, or to any of the provisions thereof, and such amendment, addition, or rescission shall be fully
effective for all purposes.
SECTION 23. [INSURANCE TO COME]
SECTION 24. NOTICES TO BE GIVEN TO rINSURANCE COl.
SECTION 25. MISCELLANEOUS. (a) Titles Not Restrictive. The titles assigned to the various sections
of this Ordinance are for convenience only and shall not be considered restrictive of the subject matter of any
section or of any part of this Ordinance.
(b) Inconsistent Provisions. All ordinances, orders, and resolutions, or parts thereof, which are in conflict
or inconsistent with any provision of this Ordinance are hereby repealed and declared to be inapplicable, and the
provisions of this Ordinance shall be and remain controlling as to the matters prescribed herein.
(c) Severability, If any word, phrase, clause, paragraph, sentence, part, portion, or provision of this
Ordinance or the application thereof to any person or circumstances shall be held to be invalid, the remainder of
this Ordinance shall nevertheless be valid and the Council hereby declares that this Ordinance would have been
enacted without such invalid word, phrase, clause, paragraph, sentence, part, portion, or provisions.
(d) Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the
State of Texas.
/
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(e) Effective Date. This Ordinance shall take effect and be in full force and effect from and after the date
of its passage, and it is so ordained.
PASSED AND APPROVED this (1')FlA..v ft.. Ilf 1 1994.
/kr&/~~
Mayor, City of La Porte, exas
ATIEST:
~Ln/
City Secretary, City of La Porte, Texas
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EXillBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THE PAYING AGENT;REGISTRAR AGREEMENT IS OMITTED AT TillS POINT AS IT APPEARS IN
EXECUfED FORM ELSEWHERE IN THIS TRANSCRIPT.
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EXIllBIT B
PURCHASE CONTRACT
THE PURCHASE CONTRACT IS OMITIED AT TillS POINT AS IT APPEARS IN EXECUTED FORM
ELSEWHERE IN TIllS TRANSCRIPT,
A-I
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EXHIBIT C
ESCROW AGREEMENT
THE ESCROW AGREEMENT IS OMITIED AT TIIIS POINT AS IT APPEARS IN EXECUTED FORM
ELSEWHERE IN TIIIS TRANSCRIPT.
B-1
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EXHIBIT D
NOTICE OF PRIOR REDEMPTION
[To Come]
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. - .
1'1- a
ORDINANCE NO. J2 7"2-
ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORlE. lEXAS. WAlERWORKS AND
SEWER SYSlEM REVENUE REFUNDING BONDS, SERIES 1994. AND ALL OTHER MATI'ERS
RELA lED TIIERETO
WHEREAS. the City of La Porte (the "City" or the "Issuer") has heretofore issued its City of La Porte.
Texas. Waterworks and Sewer System Revenue Bonds, Series 1985 (the "Series 1985 Bonds"); and
WHEREAS. in the ordinance authorizing the issuance of the Series 1985 Bonds the City reserved the
right to issue revenue bonds on a parity therewith. and pursuant to such right has heretofore issued its City of La
Porte. Texas. Waterworks and Sewer System Revenue Bonds. Series 1990 (together with the Series 1985 Bonds.
the "Previously Issued Parity Bonds"); and
WHEREAS, the City intends to advance refuild certain of the Previously Issued Parity Bonds named
below (the "Refunded Obligations") and to call the Refunded. Obligations prior to their maturities:
DESCRIPTION
AMOUNT REFUNDED MATURITIES CALL DATE
City of La Porte, Texas, Water Works and Sewer
System Revenue Bonds. Series 1990,
dated September 15, 1990 $ 900,000
2004-2011
3-15-01
City of La Porte. Texas, Water Works and Sewer
System Revenue Refunding Bonds. Series 1991,
dated April 15. 1991 $1.260.000
2002-2005
3-15-99
WHEREAS, all the Refunded Obligations mature or are subject to redemption prior to maturity within
20 years of the date of the bonds hereinafter authorized; and
WHEREAS. the Bonds are to be issued and delivered pursuant to the Charter of the City and Article
717k and Articles 1111 through 1118, inclusive, V,A.T,C.S" as amended, for the purposes set forth above.
THEREFORE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE. TEXAS.
THAT;
SECTION 1. BONDS AUTHORIZED, The City's bonds designated as the "City of La Porte, Texas.
Waterworks and Sewer System Revenue Refunding Bonds, Series 1994" (the "Bonds") are hereby authorized to
be issued in the aggregate principal amount of $2,490,000 for the purpose of providing funds to refund the
Refunded Obligations and pay costs of issuance,
SECTION 2. DATES AND MATURITIES, The Bonds shall be dated April 1. 1994, shall be in the
denomination of $5.000 or any integral multiple thereof, shall be numbered consecutively from R-l upward, and
shall. mature on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the
following schedule:
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MATURITY DATE: MARCH 15
YEARS
1995
1996
1997
1998
1999
2000
AMOUNTS
$ 65,000
105.000
80.000
85,000
90,000
95.000
YEARS
2001
2002
2003
2004
2005
2006
AMOUNTS
$100,000
405,000
405,000
460,000
445.000
155,000
SECTION 3. RIGHT OF PRIOR REDEMPTION. The City reserves the right to redeem the Bonds
maturing on or after March 15. 2003, in whole or in part in principal amounts of $5,000 or any integral multiple
thereof, on March 15,2002, or on any date selected by the City thereafter, at the redemption prices, on the dates,
and in the manner described in the FORM OF BOND set forth in this Ordinance
SECTION 4. INTEREST. The Bonds scheduled to mature during the years, respectively, set forth below
shall bear interest at the following rates per annum:
maturities 1995, % maturities 2001, %
maturities 1996, % maturities 2002, %
maturities 1997, % maturities 2003, %
maturities 1998, % maturities 2004, %
maturities 1999, % maturities 2005, %
maturities 2000, % maturities 2006, %
payable September 15, 1994, and semiannually thereafter on March 15 and September 15 of each year. Said
interest shall be payable to the registered owner of any such Bond in the manner provided in the FORM OF
BOND set forth in this Ordinance.
SECTION 5. CHARACTERISTICS OF THE BONDS. (a) Registration, Transfer. and Exchange:
Authentication. The Issuer shall keep or cause to be kept at the principal corporate trust office of Commerce
Bank National Association, Houston, Texas (the "Paying Agent/Registrar") books or records for the registration
of the transfer and exchange of the Bonds (the "Registration Books"), and the Issuer hereby appoints the Paying
Agent/Registrar as its registrar and transfer agent to keep such books or records and make such registrations of
transfers and exchanges under such reasonable regulations as the Issuer and Paying Agent/Registrar may pre-
scribe; and the Paying Agent/Registrar shall make such registrations, transfers, and exchanges as herein provided.
The Mayor and the City Secretary are authorized to enter into a Paying Agent/Registrar Agreement substantially
in the fonn of Exhibit A, attached hereto, The Paying Agent/Registrar shall obtain and record in the Registration
Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be
mailed, as herein provided: but it shall be the duty of each registered owner to notify the Paying Agent/Registrar
in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed
unless such notice has been given. To the extent possible and under reasonable circumstances, all transfers of
Bonds shall be made within three business days after request and presentation thereof. The Issuer shall have the
right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but
otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and. unless otherwise
required by law, shall not pemJit their inspection by any other entity, The Paying Agent/Registrar's standard or
customary fees and charges for making such registration. transfer, exchange and delivery of a substitute Bond or
Bonds shall be paid as provided in the FORM OF BOND set forth in this Ordinance. Registration of
assignments, transfers, and exchanges of Bonds shall be made in the manner provided and with the effect stated
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in the FORM OF BOND set forth in this Ordinance. Each substitute Bond shall bear a letter and/or number to
distinguish it from each other Bond,
Except as provided in (c) below, an authorized representative of the Paying Agent/Registrar shall, before
the delivery of any such Bond, date and manually sign the Paying Agent/Registrar's Authentication Certificate,
and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed. The
Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for transfer and exchange.
No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer
or any other body or person so as to accomplish the foregoing transfer and exchange of any Bond or portion
thereof, and the Paying Agent! Registrar shall provide for the printing, execution, and delivery of the substitute
Bonds in the manner prescribed herein, and said Bonds shall be of type composition printed on paper with
lithographed or steel engraved borders of customary weight and strength. Pursuant to Vernon's Ann. Tex. Civ.
St. Art. 7l7k-6, and particularly Section 6 thereof, the duty of transfer and exchange of Bonds as aforesaid is
hereby imposed upon the Paying Agent/Registrar, and, upon the execution of said certificate, the transferred and
exchanged Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as
the Bonds which initially were issued and delivered pursuant to this Ordinance, approved by the Attorney
General, and registered by the Comptroller of Public Accounts.
(b) Pavment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent/Registrar to act
as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Ordinance. The
Paying Agent! Registrar shall keep proper records of all payments made by the Issuer and the Paying
Agent/Registrar with respect to the Bonds.
(c) In General. The Bonds (i) shall be issued in fully registered fonn, without interest coupons, with the
principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed
prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be exchanged for other Bonds,
(v) shall have the characteristics, (vi) shall be signed, sealed, executed, and authenticated, (vii) shall have the
principal of and interest on the Bonds be payable, and (viii) shall be administered and the Paying Agent/Registrar
and the Issuer shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the
manner and to the effect as required or indicated, in the FORM OF BOND set forth in this Ordinance. The
Bonds initially issued and delivered pursuant to this Ordinance numbered R -1 through R -12 (collectively, the
"Initial Bonds") shall be delivered to the initial purchaser and are not required to be, and shall not be, authenti-
cated by the Paying Agent/Registrar, but on each substitute Bond issued in exchange for the Initial Bonds or any
Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall execute the PAYING
AGENTIREGISTRAR'S AUTHENTICATION CERTIFICA1E, in the fonn set forth in the FORM OF BOND,
(d) Substitute Paving Agent/Registrar. The Issuer covenants with the registered owners of the Bonds that
at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, trust
company, fmancial institution, or other agency to act as and perfonn the services of Paying Agent/Registrar for
the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The Issuer reserves the
right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to
the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment
date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor
by merger, acquisition, or other method) should resign or otherwise cease to act as such, the Issuer covenants
that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other
agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar,
the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy
thereot), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Regis-
trar designated and appointed by the Issuer. Upon any change in the Paying Agent/Registrar, the Issuer promptly
will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the
Bonds, by United States mail, first-class postage prepaid, which notice also shall give the address of the new
Paying Agent! Registrar, By accepting the position and perfonning as such, each Paying Agent/Registrar shall
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be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar,
SECTION 6. FORMS. The fonn of all Bonds, including the fonn of Paying Agent/Registrar's
Certificate, the Fonn of Assignment, the fonn of Statement of Insurance, if any, and the fonn of the
Comptroller's Registration Certificate to accompany the Bonds on the initial delivery thereof, shall be,
respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are pennitted
or required by this Ordinance:
FORM OF BOND:
NO. R-_
$
United States of America
State of Texas
CITY OF LA PORTE, TEXAS,
WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BOND,
SERIES 1994
INTEREST RATE
%
MATURITY DATE
ISSUE DATE
April 1, 1994
CUSIP NO.
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
ON THE MATURITY DATE, specified above, THE CITY OF LA PORTE, TEXAS, a home rule city
and municipal corporation of the State of Texas (the "City"), hereby promises to pay to the Registered Owner,
specified above, or the registered assignee hereof (hereinafter called the "registered owner") the Principal
Amount, specified above, and to pay interest thereon calculated on the basis of a 360 day year of twelve 30 day
months, from the Issue Date, specified above, to the date of its scheduled maturity or the date of its redemption
prior to scheduled maturity, at the Interest Rate per annum, specified above, with said interest being payable on
September 15, 1994, and semiannually on each March 15 and September 15 thereafter.
THE TERMS AND PROVISIONS of this Bond are continued on the reverse side hereof and shall for
all purposes have the same effect as though fully set forth at this place.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States
of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered
owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption
prior to maturity, at the principal corporate trust office of Commerce Bank Naitonal Association, Houston,
Texas, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made
by the Paying Agent/Registrar to the registered owner hereof as shown by the Registration Books kept by the
Paying Agent/Registrar at the close of business on the Record Date (hereinafter described) by check drawn by
the Paying Agent! Registrar on, and payable solely from, funds of the City required to be on deposit with the
Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the Paying
Agent/Registrar by United States mail, postage prepaid, on each such interest payment date, to the registered
owner hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as
hereinafter described. The . record date ("Record Date") for the interest payable on any interest payment date
means the last calendar day of the month next preceding such interest payment date; In the event of a non-
payment of interest on a scheduled payment date, and for 30 calendar days thereafter, a new record date for such
interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds
for the payment of such interest have been received from the City. Notice of the Special Record Date and of the
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scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be
sent at least five business days prior to the Special Record Date by United States mail, first class, postage
prepaid, to the address of each registered owner of a Bond appearing on the books of the Paying Agent/Registrar
at the close of business on the last business day next preceding the date of mailing of such notice. The City
covenants with the registered owner of this Bond that no later than each principal payment date and interest
payment date for this Bond it will make available to the Paying Agent/Registrar the amounts required to provide
for the payment, in immediately available funds by wire transfer or other means acceptable to the Paying
Agent/Registrar, of all principal of and interest on the Bonds, when due, in the manner set forth in the ordinance
authorizing the issuance of this Bond adopted by the City Council of the City on _, 1994 (the
"Ordinance If).
IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, a
Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying Agent/Registrar is
located are authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the same force and effect as if made on the original
date payment was due.
THIS BOND is one of a series of bonds of like tenor and effect, except as to denomination, number,
maturity, interest rate, and right of prior redemption, issued in the aggregate principal amount of $2,490,000 for
the purpose of providing funds to refund the Refunded Obligations named in the Ordinance and to pay costs of
issuance.
THE BONDS of this Series scheduled to mature on and after March 15,2003 may be redeemed prior to
their scheduled maturities, in whole, or in part in principal amounts of $5,000 or any integral multiple thereof, at
the option of the City, on March 15,2002, or on any date selected by the City thereafter, at the redemption price
of the par value plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be
redeemed by the City, the City shall detennine the maturity or maturities and the amounts therewith to be
redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or portions thereof, within such
maturity or maturities and in such principal amounts, for redemption,
AT LEAST 30 days prior to the date for any such redemption, a notice of such redemption shall be sent
by the Paying Agent/Registrar by United States mail, first class, postage prepaid, to the registered owner of each
Bond, or portion thereof to be redeemed, at its address as it appeared on the Registration Books on the 45th day
prior to such redemption date and to major securities depositories, national bond rating agencies, and bond
infonnation services; provided, however, that the failure to send, mail, or receive such notice, or any defect
therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for
the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the
Issuer with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the
portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If
such notice of redemption is given, and if due provision for such payment is made, all as provided above, this
Bond, or the portion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its
scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded
as being outstanding except for the right of the registered owner to receive the redemption price plus accrued
interest to the date fixed for redemption from the Paying AgentlRegistrar out of the funds provided for such
payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of
this Bond or any portion hereof, If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having
the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral
multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to
the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for
cancellation, at the expense of the Issuer, all as provided in the Ordinance.
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ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons,
in the denomination of any integral multiple of $5,000. As provided in the Ordinance, this Bond, or any
unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be
assigned, transferred, and exchanged for a like aggregate principal amount of fully registered bonds, without
interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having
the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any
integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as
the case may be, upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance
with the fonn and procedures set forth in the Ordinance. Among other requirements for such assignment and
transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper
instruments of assignment, in fonn and with guarantee of signatures satisfactory to the Paying Agent/Registrar,
evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the
assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be
transferred and registered The fonn of Assignment printed or endorsed on this Bond may be executed by the
registered owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of
assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or
any portion or portions hereof from time to time by the registered owner. The City shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and charges for transferring, converting, and exchanging
any Bond or portion thereof; provided, however, that any taxes or governmental charges required to be paid with
respect thereto shall be paid by the one requesting such transfer, conversion, and exchange. In any circumstance,
neither the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange during a
period beginning at the opening of business 15 calendar days before the day of the frrst mailing of a notice of
redemption of bonds and ending at the close of business on the day of such mailing or (2) to transfer or
exchange any Bonds so selected for redemption when such redemption is scheduled to occur within 30 calendar
days; provided, however, that such limitation shall not be applicable to an exchange by the registered owner of
the uncalled principal balance of a Bond.
IN TIffi EVENT any Paying Agent/Registrar for the Bonds is changed by the City, resigns, or otherwise
ceases to act as such, the City has covenanted in the Ordinance that it promptly will appoint a competent and
legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered
owners of the Bonds.
BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of
the tenns and provisions of the Ordinance, agrees to be bound by such tenns and provisions, acknowledges that
the Ordinance is duly recorded and available for inspection in the official minutes and records of the City, and
agrees that the tenns and provisions of this Bond and the Ordinance constitute a contract between each registered
owner hereof and the City,
THE CITY has reserved the right, subject to the restrictions stated in the Ordinance, to issue additional
parity revenue bonds which also may be made payable from, and secured by a frrst lien on and pledge of, the
"Pledged Revenues" (as defined in the Ordinance).
THE REGISTERED OWNER HEREOF shall never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation, or from any source whatsoever other than the Pledged
Revenues.
IT IS HEREBY certified and covenanted that this Bond has been duly and validly authorized, issued,
and delivered; that all acts, conditions, and things required or proper to be perfonned, exist, and be done
precedent to or in the authorization, issuance, and delivery of this Bond have been perfonned, existed, and been
done in accordance with law; that this Bond is a special obligation; and that the principal of, redemption
premium, if any, and interest on this Bond are payable from, and secured by a first lien on and pledge of, the
Pledged Revenues, which include the Net Revenues of the City's combined Waterworks and Sewer System.
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IN TESTIMONY WHEREOF, the City Council has caused the seal of the City to be duly impressed or
placed in facsimile hereon, and this Bond to be signed with the imprinted facsimile signature of the Mayor and
countersigned by the facsimile signature of the City Secretary,
COUNTERSIGNED:
xxxxxxxx
City Secretary,
City of La Porte, Texas
xxxxxxxx
Mayor,
City of La Porte, Texas
(SEAL)
[FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE]
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under the provisions of the Ordinance
described in this Bond; and that this Bond has been issued in exchange for or replacement of a bond, bonds, or
a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of
Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Dated
COMMERCE BANK NATIONAL ASSOCIATION,
Houston, Texas,
Paying AgentlRegistrar
By
Authorized Representative
[FORM OF STATEMENT OF INSURANCE]
STATEMENT OF INSURANCE
[TO COME]
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[FORM OF ASSIGNMENT]
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned registered owner of this bond or duly authorized
representative or attorney thereof, hereby assigns this bond to
/
(Assignee's Social
Security or Taxpayer
Identification Number)
/
(print or typewrite Assignee's name
and address, including zip code)
and hereby irrevocably constitutes and appoints
attorney to transfer the registration of this bond on the Bond Registration Books with full power of substitution
in the premises.
Dated:
Signature Guaranteed:
NOTICE: The signature of the
Registered Owner must be gua-
ranteed by a member of the
New York Stock Exchange or a
commercial bank or trust
company,
Registered Owner
NOTICE: This signature
must correspond with the
name of the Registered
Owner appearing on the face
of this bond in every
particular way without alter-
ation or enlargement or any
change whatsoever
The following abbreviations, when used in the assignment above or on the face of the within
Bond, shall be construed as though they were written out in full according to applicable laws or regulations:
TEN COM -
TEN ENT -
JT TEN-
as tenants in common
as tenants by the entireties
as joint tenants with right of survivorship
and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust) (Minor)
under Uniform Gifts to Minors Act
(State)
Additional abbreviations may also be used though not in the list above.
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[FORM OF REGISTRATION CERTIFICAlE
OF THE COMPTROLLER OF PUBLIC ACCOUNTS]*
*To be printed or attached to Initial Bonds only
COMPTROLLER'S REGISTRATION CERTIFICAlE: REGISlER NO,
I hereby certify that this Bond has been examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public
Accounts of the State of Texas.
Witness my signature and seal this
COMPTROLLER'S SEAL
Comptroller of Public Accounts
of the State of Texas
SECTION 7. DEFINITIONS. As used in this Ordinance, the following tenns shall have the
meanings set forth below, unless the text hereof specifically indicates otherwise:
(a) The tenn "Additional Bonds" shall mean the additional parity obligations which the City
reserves the right to issue in the future, as provided in Section 15 of this Ordinance.
(b) The tenns "Bond" or "Bonds" shall mean one or more, as the case may be, of the Bonds
authorized to be issued by this Ordinance.
(c) The tenns "City" and "Issuer" shall mean the City of La Porte, Texas, or where appropriate
the City Council thereof.
(d) The tenn "City Council" shall mean the governing body of the City.
(e) The tenn "Interest and Sinking Fund" means the fund provided for in Section 11 hereof.
(t) The tenn "Net Revenues" means all gross revenues of the System after deducting the
necessary and reasonable expenses of operation and maintenance of the System, including all salaries, labor,
material, repairs, and extensions necessary to render efficient service; provided, however, that only such repairs
and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the
System in operation and render adequate service to the City and the inhabitants thereof, or such as might be
necessary to meet some physical accident or condition which would otherwise impair the Parity Bonds shall be
deducted in detennining the "Net Revenues", Depreciation and payments into and out of the Interest and Sinking
Fund and the Reserve Fund shall never be considered as expenses of operation and maintenance.
(g) The tenn "Parity Bonds" shall mean collectively the Previously Issued Parity Bonds, the
Bonds, and any Additional Bonds.
(h) The tenn "Parity Bonds Ordinances" shall mean collectively the ordinances authorizing the
Previously Issued Parity Bonds, the Bonds, and any Additional Bonds.
(i) The tenn "Previously Issued Parity Bonds" shall mean the outstanding "City of La Porte,
Texas, Waterworks and Sewer System Revenue Bonds, Series 1985" the "City of La Porte, Texas, Waterworks
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and Sewer System Revenue Bonds, Series 1990, and the "City of La Porte, Texas, Waterworks and Sewer
System Revenue Refunding Bonds, Series 1991.
(j) The tenn "Reserve Fund" shall mean that fund described in Section 12 hereof.
(k) The tenn "System" shall mean the City's entire existing waterworks and sanity sewer
system, together with all future extensions, enlargements, additions, replacements, and improvements thereto.
(1) The "System Fund" shall mean that fund described in Section 10 hereof.
(m) The tenn "Year" or "fiscal year" shall mean the regular fiscal year used by the City in
connection with the operation of the System, which may be any 12 consecutive months period established by the
City,
SECTION 8. PLEDGE. The Parity Bonds, redemption premium, if any, and any interest
payable thereon, are and shall be secured by and payable from a frrst lien on and pledge of the Net Revenues,
and the Net Revenues are further pledged irrevocably to the establishment and maintenance of the Funds created
by the Parity Bonds Ordinances, The Parity Bonds are not and will not be secured by or payable from a
mortgage or deed of trust on any real, personal, or mixed properties constituting the System. The Registered
Owner of the Parity Bonds shall never have the nght to demand payment of such obligations out of any funds
raised or to be raised by taxation, or from any source whatsoever other than the Net Revenues. This Ordinance
shall not be construed as requiring the City to expend any funds which are derived from sources other than the
operation of the System, but nothing herein shall be construed as preventing the City from doing so.
SECTION 9. RATES, The City covenants and agrees with the holders of the Parity Bonds that
it will:
(a) fix and maintain rates and collect charges for the facilities and services afforded by the
System which will provide revenues sufficient at all times:
(1) To pay all operation, maintenance, depreciation, replacement, and bettennent
charges of the System;
(2) To establish and maintain the Interest and Sinking Fund;
(3) To generate in each year Net Revenues equal to one and twenty-five hundredths
(1.25) times the maximum annual requirement for the payment of the principal of and interest
on the Parity Bonds at the time outstanding (although amounts shall be paid into the Interest
and Sinking Fund and the Reserve Fund only in accordance with Sections 10 and 12 hereof);
and
(4) To pay all indebtedness outstanding against the System, other than the Parity
Bonds, as and when the same become due; and
(b) deposit as collected all revenues derived from the operation of the System into the System
Fund.
SECTION 10. SYSTEM FUND. There has been created and established on the books of the
City, and accounted for separate and apart from all other funds of the City, a special fund entitled the "City of
La Porte, Texas, Waterworks and Sewer System Fund" (the "System Fund"). All gross revenues are and shall be
credited to the System Fund immediately upon receipt. The necessary and reasonable expenses of operation and
maintenance of the System shall frrst be paid from the System Fund upon approval of the City Council and, from
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the Net Revenues available in the System Fund, the City shall then make substantially equal monthly payments
into the Interest and Sinking Fund (commencing with respect to the Bonds and any Additional Bonds on the date
of delivery to the initial purchaser thereof) during each year in which any of the Parity Bonds are outstanding in
an aggregate amount equal to 100% of the amounts required to meet the interest and principal payments falling
due on or before the next maturity date of the Parity Bonds. The City shall, at least five days prior to September
15, 1994, and each March 15 and September 15 thereafter, deposit into the Interest and Sinking Fund any
additional Net Revenues available in the System Fund which may be necessary to pay in full the interest on and
principal, if any, coming due on such March 15 or September 15. In no event shall any amount in excess of the
amounts stated above be placed in the Interest and Sinking Fund for the payment of the interest on or principal
of the Parity Bonds, and any amount so placed may be withdrawn by the City and replaced in the System Fund.
Any funds remaining in the System Fund, after provision for the necessary and reasonable cost of operating and
maintaining the System, and after paying the aforesaid amounts required to be paid into the Interest and Sinking
Fund and the Reserve Fund, may be used by the City for any lawful purpose.
SECTION 11. INTEREST AND SINKING FUND, For the sole purpose of paying the principal
of and interest on the Parity Bonds, as the same come due, there has been created and established on the books
of the City a separate fund entitled the "City of La Porte, Texas, Waterworks and Sewer System Bonds Interest
and Sinking Fund" (the "Interest and Sinking Fund").
SECTION 12. RESERVE FUND. There has been created and established on the books of the
City at the City's depository bank a separate fund entitled the "City of La Porte, Texas, Waterworks and Sewer
System Bonds Reserve Fund" (the "Reserve Fund"). The Reserve Fund shall be used to pay the principal of and
interest on any Parity Bonds when and to the extent the amounts in the Interest and Sinking Fund available for
such payment are insufficient for such purpose, and may be used for the purpose of finally retiring the last of
any Parity Bonds. Beginning on May 15, 1994 and ending April 30, 1999, the City shall, from the Net
Revenues in the System Fund, deposit into the Reserve Fund an amount of money in equal monthly amounts (the
"Monthly Reserve Deposit") to achieve the Reserve Requirement (hereinafter described). Notwithstanding any
provision hereof to the contrary, no deposits shall be made into the Reserve Fund at a time when there is a
deficiency in the amount on deposit in the Interest and Sinking Fund nor shall any deposits be made into the
Reserve Fund at any time it contains an amount equal to or greater than the Reserve Requirement. If and
whenever the balance in the Reserve Fund is reduced below the Reserve Requirement, or if the City should fail
timely to make any Monthly Reserve Deposit in full, then and in either such event, the City shall, from the first
available and unallocated Net Revenues of the following month or months, cause amounts equal in the aggregate
to any such deficiency to be set apart and transferred into the Reserve Fund and such transfers shall be in
addition to the amounts otherwise required to be deposited into such Fund during such month or months.
Surplus funds in the Reserve Fund resulting from any reduction of the Reserve Requirement or otherwise shall
be promptly transferred from the Reserve Fund into the Interest and Sinking Fund, and payments into the Interest
and Sinking Fund from the System Fund shall be reduced accordingly. As used herein "Reserve Requirement"
shall be the lesser of (1) 10% of the face amount of the Parity Bonds, (2) 100% of the maximum annual debt
service for the Parity Bonds, or (3) 125% of average annual debt service for the Parity Bonds.
SECTION 13. INVESTMENTS. Money in any Fund established by the Parity Bonds
Ordinances may, at the option of the City, be placed or invested in "Pennitted Investments" as defined and used
herein to mean, to the extent pennitted by Texas law:
(1) direct obligations of (including obligations issued or held in book entry fonn on the books
of) the Department of Treasury of the United States of America;
(2) obligations of any of the following federal agencies which obligations represent full faith
and credit of the United States of America, including:
Export - Import Bank
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Farmers Home Administration
U.S. Maritime Administration
Small Business Administration
Government National.Mortgage Association (GNMA)
U,S. Department of Housing and Urban Development (PHA's)
Federal Housing Administration;
(3) bonds, notes, or other evidences of indebtedness rated "AM" by Standard & Poor's Rating
Group ("S&P") and "Aaa" by Moody's Investors Service ("Moodys") issued by the Federal National Mortgage
Association or the Federal Home Loan Mortgage Corporation with remaining maturities not exceeding three
years; or
(4) U.S. dollar denominated deposit accounts, federal funds, and banker's acceptances with
domestic commercial banks which have a rating on their short term certificates of deposit on the date of
purchase of "A_I" or "A-l+" by S&P and "P_l" by Moody's and maturing no more than 360 days after the date
of purchase. (Ratings on holding companies are not considered as the rating of the bank);
Any obligation in which money from the Interest and Sinking Fund or the Reserve Fund are so
invested shall be kept and held in the depository bank of the City in escrow and in trust for the benefit of the
owners of the Parity Bonds, and shall be promptly sold and the proceeds of sale applied to the making of any
payments required to be made from the Interest and Sinking Fund or Reserve Fund, as the case may be. Except
as described in Section 20, all such investments shall at all times be a part of the Fund from which the money
used to acquire said investments shall have come and all earnings on such investments shall be credited to, and
losses thereon charged against, such Fund. Notwithstanding any provision hereof to the contrary, any investment
of money in the Interest and Sinking Fund shall be made so as to mature or be subject to redemption at the
option of the owner or holder thereof on or prior to the date or dates on which money therefrom will be
required.
SECTION 14. FUNDS SECURED, Money in all Funds created by this Ordinance, to the extent
not invested, shall be secured in the manner prescribed by law for securing funds of the City.
SECTION 15. ADDITIONAL BONDS. In addition to inferior lien bonds authorized by Article
lll1a. Vernon's Texas Civil Statutes, as amended, the City expressly reserves the right hereafter to issue
additional parity bonds and other evidences of indebtedness now or hereafter authorized by the Legislatme of
Texas (collectively, the "Additional Bonds"), and the Additional Bonds, when issued, may be secured by and
payable from a first lien on and pledge of the Net Revenues in the same manner and to the same extent as the
outstanding Parity Bonds but subject to the remaining provisions hereof, and the Previously Issued Parity Bonds,
the Bonds, and the Additional Bonds may be in all respects of equal dignity. It is provided, however, that no
Additional Bonds shall be issued unless:
(a) The Interest and Sinking Fund, the Reserve Fund, and any similar fund or funds created by
the ordinance authorizing any Parity Bonds at the time outstanding shall each contain the amount then required
to ~ on deposit therein, and a certificate of such effect shall be executed and delivered by the Mayor and City
Secretary.
(b) As long as any of the Series 1985 Bonds are outstanding, the "net earnings" (defined
below) of the System for the fiscal year next preceding the month in which the ordinance authorizing such
Additional Bonds is adopted, were equal to each of the provisions following in items (c) (i) and (ii) below,
determined independently and certified by an independent firm of certified public accountants, based upon an
annual audit of the books of the System.
(c) After the Series 1985 Bonds are no longer outstanding, an independent firm of certified
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(e) Operation of System; No Free Service, It shall continuously and efficiently operate the
System and maintain the System in good condition, repair, and working order, all at reasonable cost. No free
service of the System shall be allowed, and should the City or any of its agencies or instrumentalities, lessees, or
concessionaires make use of the services and facilities of the System, payment monthly of the standard retail
price of the services provided shall be made by the City or any of its agencies or instrumentalities, lessees, or
concessionaires out of funds from sources other than the revenues of the System, unless made from surplus Net
Revenues.
(f) Further Encumbrance. Other than for the payment of the Parity Bonds, the rents, revenues,
and income of the System have not in any manner been pledged to the payment of any debt or obligations of the
City or of the System; and it shall not additionally sell or encumber the Net Revenues in any manner, except as
pennitted in the Parity Bonds Ordinances in connection with Additional Bonds, unless said encumbrance is made
junior and subordinate in all respects to the liens, pledges, covenants. and agreements of the Parity Bonds
Ordinances; but the right of the City to issue revenue bonds payable from a subordinate lien on the surplus Net
Revenues is specifically recognized and retained.
(g) Sale or Disposal of Property. It shall not sell, convey, mortgage, encumber, lease, or in any
manner transfer title to, or dedicate to other use, or otherwise dispose of the System, or any significant or
substantial part thereof; provided, however, that whenever the City deems it necessary to dispose of any other
property, machinery, fixtures, or equipment, or dedicate such property to other use, it may do so either when it
has made arrangements to replace the same or provide substitutes therefor, or it is detennined by resolution of
the City Council that no such replacement or substitute is necessary.
(h) Insurance. It agrees to maintain insurance on the System, for the benefit of the registered
owner or owners of the Parity Bonds of a kind and in an amount which usually would be carried by private
companies engaged in a similar type of business in the same area.
(i) Records and Audits. It shall keep proper books and 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
System. Upon written request made not more than 60 days following the close of the fiscal year, the City shall
furnish to any holder of any Parity Bonds, complete financial statements of the System in reasonable detail
covering such fiscal year, certified by the City's Auditor. Any holders of 25% in principal amount of the Parity
Bonds at the time outstanding shall have the right at all reasonable times to inspect the System and all records,
accounts, and data of the City relating thereto.
(j) Governmental A~encies. It has or will obtain and keep in full force and effect all franchises,
pennits, authorization, and other requirements applicable to or necessary with respect to the acquisition,
construction, equipment, operation, and maintenance of the System, and it will comply with all of the tenns and
conditions of any and all franchises, pennits and authorizations applicable to or necessary with respect to the
System.
(k) No Competition. To the extent it legally may, it will not operate, grant any franchise, or
penn it the acquisition, construction, or operation of, any facilities which would be in competition with the
System, and to the extent that it legally may, the City will prohibit any such competing facilities.
SECTION 17, AMENDMENT OF ORDINANCE, (a) The holders of the Parity Bonds
aggregating in principal amount 51 % of the aggregate principal amount of then outstanding Parity Bonds shall
have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary
or desirable by the City; provided, however, that without the consent of the holders of all of the Parity Bonds at
the time outstanding, nothing herein contained shall pennit or be construed to pennit the amendment of the tenns
and conditions in this Ordinance or in the Parity Bonds so as to:
(1) Make any change in the maturity of the outstanding Parity Bonds;
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public accountants, based upon an audit of the books of the System, certifies that the net earnings of the System
for the previous fiscal year, or for any 12 consecutive month period ending not more than 90 days prior to the
date of the adoption of the ordinance authorizing the Additional Bonds, were equal to each of the following
detennined independently:
(i) at least 1.50 times the average annual requirements for the payment of the principal
of and interest on the Parity Bonds then outstanding and on such Additional Bonds, when
issued, sold, and delivered; and
(ii) at least 1.25 times the maximum annual requirement for the payment of the
principal of and. interest on the Parity Bonds then outstanding and on such Additional Bonds,
when issued, sold, and delivered;
provided, however, should the certificate of the accountant certify that the net earnings of the System for the
period covered thereby were, in either case, less than required above, and a change in the rates and charges for
the services afforded by the System became effective at least 60 days prior to the scheduled date of adoption of
the ordinance 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 entire period covered by the accountant's certificate,
the net earnings for the System for the fiscal year covered by the accountant's certificate would have met the
tests specified in (i) and (ii) above.
The term "net earnings" as used in this Section shall mean all of the Net Revenues of the
System, exclusive of income received specifically for capital items, and operation and maintenance expenses
shall exclude expenditures which under standard accounting practice should be charged to capital expenditures
or depreciations.
(c) Such Additional Bonds are made to mature on March 15th in each of the years in which
they are scheduled to mature,
(d) The City shall establish a reserve fund for such Additional Bonds by providing a cash
reserve fund therefor, a surety bond in lieu thereof, or a combination of such cash reserve fund and surety bond,
all as the City Council deems reasonable and appropriate provided that (i) the amount of any such cash reserve
fund or the coverage of any surety bond in lieu thereof or the amount of such cash reserve fund and the
coverage of such surety bond when added together shall at least equal the maximum annual debt service
requirements of such Additional Bonds, not to exceed the maximum pennitted by applicable regulations,
procedures, or published rulings of the Internal Revenue Service (the "Reserve Minimum"); (ii) if any cash
reserve fund is funded by making transfers of Net Revenues in the System Fund, such transfers shall be made
each month in an amount reasonably sufficient to reach the Reserve Minimum (or the portion thereof which is to
be provided by such cash reserve fund) within a period of not more than five years after such Additional Bonds
are sold and delivered; (iii) any such cash reserve fund may be combined with the Reserve Fund herein provided
for the Bonds and with the cash reserve fund provided for any Additional Bonds then outstanding in order
ratably to secure all Parity Bonds then outstanding and the Additional Bonds then being issued; (iv) any such
surety bond provided in lieu of a cash reserve fund shall be issued by an insurance company or association of
companies whose insured obligations are rated by Moody's Investors Service and by Standard & Poor's Rating
Group in their highest rating categories; and (v) any such surety bond may be written (or amended) to provide
coverage not only for such Additional Bonds but also pro rata for the Parity Bonds then outstanding, provided,
any existing cash reserve fund or surety fund in lieu thereof which secures any such outstanding Parity Bonds is
extended ratably to secUre the Additional Bonds then being issued. It is the City's intention hereby to provide
maximum flexibility with respect to the reserve fund to be provided for any Additional Bonds which may be
issued hereafter and the foregoing provisions shall be liberally construed in order to achieve that objective
without materially prejudicing the rights and interests of the owners of any Parity Bonds at the time outstanding.
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SECTION 16. GENERAL COVENANTS, The City further covenants, warrants, and agrees that
in accordance with and to the extent required or pennitted by law while the Parity Bonds are outstanding and
unpaid:
(a) Perfonnance. It will faithfully perfonn at all times any and all covenants, undertakings,
stipulations, and provisions contained in each Parity Bonds Ordinance, and in each and every Parity Bond; it will
promptly payor cause to be paid the principal of and interest on every Parity Bond, on the dates and in the
places and manner prescribed in the Parity Bonds Ordinances; and it will, at the times and in the manner
prescribed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking
Fund and the Reserve Fund; and any holder of the Parity Bonds may require the City, its officials and employees
to carry out, respect, or enforce the covenants and obligations of the Parity Bonds Ordinances by all legal and
equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings in
any court of competent jurisdiction against the City, its officials and employees.
(b) City's Legal Authority, It is a duly created and existing home rule city of the State of
Texas, and is duly authorized under the laws of the State of Texas to create and issue the Parity Bonds; it has
the lawful power to pledge the revenues supporting the Bonds and has lawfully exercised said power under the
Constitution and laws of the State of Texas, including said power existing under Articles 1111 to 1118, both
inclusive, Revised Civil Statutes of the State of Texas, as amended; the Bonds issued hereunder shall be ratably
secured by said pledge of income, in such manner that one Bond shall have no preference over any other Bond;
all action on its part for the creation and issuance of said obligations has been duly and effectively taken; and
said obligations in the hands of the holders and owners thereof are and will be valid and enforceable special
obligations of the City in accordance with their tenns.
(c) Title, It has or will obtain lawful title to the lands, buildings, structures, and facilities consti-
tuting the System; it will defend the title to all the aforesaid lands, buildings, structures, and facilities, and every
part thereof, for the benefit of the holders and owners of the Parity Bonds, against the claims and demands of all
persons whomsoever; it is lawfully qualified to pledge the Net Revenues to the payment of the Parity Bonds in
the manner prescribed herein; and it has lawfully exercised such rights.
(d) Liens. It will from time to time and before the same become delinquent pay and discharge
all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it or the System;
it will pay all lawful claims for rents, royalties, labor, materials, and supplies which if unpaid might by law
become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that
the priority of the liens granted hereunder shall be fully preserved in the manner provided herein; and it will not
create or suffer to be created any mechanic's, laborer's, materialman's or other lien or charge which might or
could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be
impaired; provided, however, that no such tax, assessment, or charge, and that no such claims which might be
used as the basis of a mechanic's, laborer's, materialman's, or other lien or charge, shall be required to be paid
so long as the validity of the same shall be contested in good faith by the City.
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(2) Reduce the rate of interest borne by any of the outstanding Parity Bonds;
(3) Reduce the amount of the principal payable on the outstanding Parity Bonds;
(4) Modify the tenns of payment of principal of or interest on the outstanding Parity
Bonds or impose any conditions with respect to such payment;
(5) Affect the rights of the holders of less than all of the Parity Bonds then outstanding;
(6) Change the minimum percentage of the principal amount of Parity Bonds necessary for
consent to such amendment.
(b) If at any time the City shall desire to amend the Ordinance under this Section, the City
shall cause notice of the proposed amendment to be published in a financial newspaper or journal published in
The City of New York, New York, once during each calendar week for at least two successive calendar weeks.
Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on
file at the principal office of the Paying Agent/Registraf for inspection by all holders of Parity Bonds. Such
publication is not required, however, if notice in writing is given to each holder of the Previously Issued Parity
Bonds, Bonds, and Additional Bonds.
(c) Whenever at any time not less than 30 days, and within one year, from the date of the first
publication of said notice or other service of written notice the City shall receive an instrument or instruments
executed by the holders of at least 51 % in aggregate principal amount of all Parity Bonds then outstanding,
which instrument or instruments shall refer to the proposed amendment described in said notice and which
specifically consent to and approve such amendment in substantially the fonn of the copy thereof on file with the
Paying Agent/Registrar, the City Council may pass the amendatory ordinance in substantially the same fonn.
(d) Upon the passage of any amendatory ordinance pursuant to the provisions of this Section,
this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the respective
rights, duties and obligations under this Ordinance of the City and all the holders of then outstanding Parity
Bonds shall thereafter be detennined, exercised and enforced hereunder, subject in all respects to such
amendments.
(e) Any consent given by the holder of a Parity Bond pursuant to the provisions of this Section
shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in
this Section, and shall be conclusive and binding upon all future holders of the same Parity Bond during such
period. Such consent may be revoked at any time after six months from the date of the first publication of such
notice by the holder who gave such consent, or by a successor in title, by filing notice thereof with the Paying
Agent and the City, but such revocation shall not be effective if the holders of 51 % in aggregate principal
amount of the then outstanding Parity Bonds as in this Section defined have, prior to the attempted revocation,
consented to and approve the amendment.
(f) For the purpose of this Section the fact of the holding of Parity Bonds issued in registered
fonn without coupons and the amounts and numbers of such Parity Bonds and the date of their holding same
shall be proved by the Registration Books of the Paying Agent/Registrar. For purposes of this Section, the
holder of a Parity Bond shall be the owner thereof as shown on such Registration Books, The City may
conclusively assume that such ownership continues until written notice to the contrary is served upon the City.
(g) The foregoing provisions of this Section notwithstanding, the City by action of the City
Council may amend this Ordinance for anyone or more of the following purposes:
(1) To add to the covenants and agreements of the City in this Ordinance contained,
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other covenants and agreements thereafter to be observed, grant additional rights or remedies to
bondholders, or to surrender, restrict, or limit any right or power herein reserved to or conferred
upon the City;
(2) To make such provisions for the purpose of curing any ambiguity, or curing,
correcting, or supplementing any defective provision contained in this Ordinance, or in regard
to clarifying matters or questions arising under this Ordinance, as are necessary or desirable and
not contrary to or inconsistent with this Ordinance and which shall not adversely affect the
interests of the holders of the Parity Bonds;
(3) To modify any of the provisions of this Ordinance in any other respect whatever,
provided that (i) such modification shall be, and be expressed to be, effective only after all
Parity Bonds outstanding at the date of the adoption of such modification shall cease to be
outstanding, and (ii) such modification shall be specifically referred to in the text of all
Additional Bonds issued after the date of the adoption of such modification.
SECTION 18. DAMAGED, MUTILATED, LOST, SOTLEN, OR DES1ROYED BONDS. (a)
In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar
shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and
interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the
manner hereinafter provided.
(b) Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be
made to the Paying AgentlRegistrar; In every case of loss, theft, or destruction of a Bond, the applicant for a
replacement bond shall furnish to the City and to the Paying AgentlRegistrar such security or indemnity as may
be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every
case of loss, theft, or destruction of a Bond, the applicant shall furnish to. the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft. or destruction of such Bond, as the case may be.
In every case of damage or mutilation of a Bond, the applicant shall surrender to the Paying AgentlRegistrar for
cancellation the Bond so damaged or mutilated.
(c) Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall
have matured, and no default has occurred which is then continuing in the payment of the principal of,
redemption premium, if any, or interest on the Bond, the City may authorize the payment of the same (without
surrender thereof expect in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond,
provided security or indemnity is furnished as above provided in this Section.
(d) Prior to the issuance of any replacement bond, the Paying AgentlRegistrar shall charge the
owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement
bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond. is lost. stolen, or
destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen or destroyed Bond
shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance
equally and proportionately with any and all other Bonds duly issued under this Ordinance.
(e) In accordance with Section 6 of Article 717k-6, V,A.T.C.S., this Section of this Ordinance
shall constitute authority for the issuance of any such replacement bond without necessity of further action by the
governing body of the City or any other body or person, and the duty of the replacement of such bonds is hereby
authorized and imposed upon the Paying Agent/Registrar, and the Paying AgentlRegistrar shall authenticate and
deliver such bonds in the fonn and manner and with the effect, as provided in Section 4(d) of this Ordinance for
Bonds issued in exchange for other Bonds,
SECTION 19. DEFEASANCE OF THE BONDS. (a) Any Bond and the interest thereon shall
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be deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this
Ordinance, except to the extent provided in subsection (d) of this Section, when payment of the principal of such
Bond, plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or
otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including
the giving of any required notice of redemption), or (ii) shall have been provided for on or before such due date
by irrevocably depositing with or making available to the Paying Agent/Registrar for such payment (1) lawful
money of the United States of America sufficient to make such payment or (2) direct obligations of the United
States of America, including obligations the principal of and interest on which are unconditionally guaranteed by
the United States of America, which may be United States Treasury obligations such as its State and Local
Government Series, and which may be book entry fonn (herein "Government Obligations") which mature as to
principal and interest in such amounts and at such time as will insure the availability, without reinvestment, of
sufficient money to provide for such payment, and when proper arrangements have been made by the City with
the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due and
payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond
and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the revenue
herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely
from such money or Government Obligations.
(b) Any money so deposited with the Paying Agent/Registrar may at the written direction of the
City also be invested as hereinbefore set forth, and all income from such Government Obligations received by
the Paying Agent/Registrar which is not required for the payment of the Bonds and interest thereon, with respect
to which such money has been so deposited, shall be turned over to the City, or deposited as directed in writing
by the City.
(c) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar
shall perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been
defeased, and the City shall make proper arrangements to provide and pay for such services as required by this
Ordinance.
(d) In the event that the principal and/or interest due on the Bonds shall be paid by AMBAC
Indemnity pursuant to the municipal bond guaranty insurance policy issed by AMBAC Indemnity insuring the
payment when due of the principal of and interest on the Bonds as provided therein (the "Municipal Bond
Guaranty Insurance Policy"), the Bonds shall remain outstanding for all purposes, not be defeased or otherwise
satisfied, and not be considered paid by the City, and the assignment and pledge of the proceeds of pledged
revenues and all covenants, agreements, and other obligations of the City to the registered owners shall continue
to exist and shall run to the benefit of AMBAC Indemnity, and AMBAC Indemnity shall be subrogated to the
rights of such registered owners.
SECTION 20. TAX COVENANTS. The City covenants to take any action to assure, or refrain
from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103
of the Code, the interest on which is not includable in the "gross income" of the holder for purposes of federal
income taxation. In furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10% of the proceeds of the Bonds
(less amounts deposited to a reserve fund, if any) are used for any "private business use", as
defined in section 141(b)(6) of the Code or, if more than 10% of the proceeds are so used, that
amounts, whether or not received by the City, with respect to such private business use, do not,
under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure
or provide for the payment of more than 10% of the debt service on the Bonds, in contra-
vention of section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
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described in subsection (a) hereof exceeds 5% of the proceeds of the Bonds (less amounts
deposited into a reserve fund, if any) then the amount in excess of 5% is used for a "private
business use" which is "related" and not "disproportionate", within the meaning of section
141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or 5% of the proceeds of the Bonds (less amounts deposited into a reserve fund, if
any) is directly or indirectly used to finance loans to persons, other than state or local
governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Bonds being
treated as "private activity bonds" within the meaning of section 141(a) of the Code;
(e) to refrain from taking any action that would result in the Bonds being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(0 to refrain from using any portion of the proceeds of the Bonds, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defmed in section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Bonds, other than investment property acquired with --
(1) proceeds of the Bonds invested for a reasonable temporary period of three
years or less until such proceeds are needed for the purpose for which the
bonds are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.103-13(b)(12) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement fund
to the extent such amounts do not exceed 10% of the proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as
proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable,
section 149(d) of the Code (relating to advance refundings);
(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Bonds) an amount that is at least equal to 90% of the
"Excess Earnings", within the meaning of section 148(0 of the Code and to pay to the United
States of America, not later than 60 days after the Bonds have been paid in full, 100% of the
amount then required to be paid as a result of Excess Earnings under section 148(f) of the
Code; and
(i) to maintain such records as will enable the City to fulfill its responsibilities under
this section and section 148 of the Code and to retain such records for at least six years
following the final payment of principal and interest on the Bonds.
It is the understanding of the City that the covenants contained herein are intended to assure compliance with the
Code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In
the event that regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code,
as applicable to the Bonds, the City will not be required to comply with any covenant contained herein to the
extent that such modification or expansion, in the opinion of nationally-recognized bond counsel, will not
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adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 of the
Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements
which are applicable to the Bonds, the City agrees to comply with the additional requirements to the extent
necessary, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income
taxation of interest on the Bonds under section 103 of the Code.
SECTION 21. DESIGNATION AS QUALIFIED TAX-EXEMPT BONDS. The City hereby
designates the Bonds as "qualified tax-exempt bonds" as defined in section 265(b)(3) of the Internal Revenue
Code of 1986, as amended (the "Code"). In furtherance of such designation, the City represents, covenants, and
warrants the following: (a) during the calendar year in which the Bonds are issued, the City (including any
subordinate entities) has not designated nor will designate bonds, which when aggregated with the Bonds, will
result in more than $10,000,000 of "qualified tax-exempt bonds" being issued; (b) the City reasonably anticipates
that the amount of tax-exempt obligations issued during the calendar year in which the Bonds are issued by the
City (or any subordinate entities) will not exceed $10,000,000; and (c) the City will take such action or refrain
from such action as necessary in order that the Bonds will not be considered "private activity bonds" within the
meaning of section 41 of the Code.
SECTION 22. SALE OF BONDS. The Bonds are hereby sold and shall be delivered to
Masterson Moreland Sauer Whisman, Inc. and Rauscher Pierce Refsnes, Inc. (the "Underwriters"), pursuant to
the terms and provisions of the Purchase Contract attached hereto as Exhibit B and the Mayor is hereby
authorized to execute and deliver such Purchase Contract. The Bonds shall initially be registered in the name of
Masterson Moreland Sauer Whisman, Inc. The officers of the Issuer are hereby authorized and directed to
execute and deliver such certificates, instructions, or other instruments as are required or necessary to accomplish
the purposes of this Ordinance.
SECTION 23. PROCEEDS OF SALE. The proceeds of the Bonds shall be placed into the
Interest and Sinking Fund and the Escrow Fund of the Issuer as follows:
(a) Interest and Sinking Fund. An amount equal to the accrued interest on the Bonds from the
date of the Bonds to the date of delivery to the Initial Purchaser shall be deposited in the Interest and Sinking
Fund.
(b) Escrow Fund, The proceeds of the Bonds remaining after the above described deposit into
the Interest and Sinking Fund shall be placed in the Escrow Fund (after created) to be used by the Issuer for the
purposes described in the Escrow Agreement hereafter authorized.
SECTION 24. APPROVAL OF OFFICIAL STATEMENT. The Issuer hereby approves the
form and content of the Official Statement relating to the Bonds, and any addenda. supplement, or amendment
thereto and approves the distribution of such Official Statement in the reoffering of the Bonds by the Initial
Purchasers in final form, with such changes therein or additions thereto as the officer executing the same may
deem advisable, such determination to be conclusively evidenced by his execution thereof. It is further officially
found determined and declared that the statements and representations contained in said Official Statement are
true and correct in all material respects to the best knowledge and belief of the Council.
SECTION 25. CONSIDERATIONS OF REFUNDING, The Council hereby fmds that by
refunding the Refunded Obligations the Issuer will (i) lower the annual debt service requirements with respect to
its revenue supported obligations and (ii) restructure its debt service in a manner which will allow the issuance of
additional bond issues without a utility rate increase or with a smaller increase than would otherwise be required,
SECTION 26. NOTICE OF REDEMPTION TO PAYING AGENT AND REGISTERED
OWNERS AND PUBLICATION. The principal of and accrued interest on the Refunded Obligations shall be
20
paid on their respective redem! date. with proceeds of the Bnnds. and thetfunded Obligations are bereby
called for redemption on said date. Commerce Bank National Association, Houston, Texas, Houston, Texas, is
hereby directed to make appropriate arrangements so that the principal of and accrued interest on such Refunded
Obligations may be redeemed at said bank on such redemption dates. Unless notice is waived by the owners
thereof, a copy of the Notice of Prior Redemption, substantially in the fonn attached hereto as Exhibit D, shall
be delivered to the paying agent bank for the Refunded Obligations and a copy of such Notice of Prior
Redemption shall be mailed to the registered owner thereof, or otherwise given as provided in the appropriate
order, resolution, or ordinance authorizing the Refunded Obligations.
SECTION 27. ESCROW AGREEMENT. The discharge of the Refunded Obligations shall be
effectuated pursuant to the tenns and provisions of the Escrow Agreement, the tenns and provisions of which are
hereby approved, subject to such insertions, additions, and modifications as shall be necessary (a) to carry out the
program designed for the City by Masterson Moreland Sauer Whisman, Inc. and which shall be certified as to
mathematical accuracy by Deloitte & Touche, Certified Public Accountants, whose verification report (the
"Report") shall be delivered with the Escrow Agreement, (b) to maximize the City's present value savings and/or
minimize the City costs of refunding, (c) to comply with all applicable laws and regulations relating to the
refunding of the Refunded Obligations, and (d) to carry out the other intents and purposes of this Ordinance, and
the Mayor is hereby authorized to execute and deliver the Escrow Agreement attached hereto as Exhibit C on
behalf of the City in multiple counterparts and the City Secretary is hereby authorized to attest thereto and affIX
the City's seal.
SECTION 28. SOURCE OF CITY FUNDS USED IN REFUNDING. The amount of
$67,115,83 available funds of the City are hereby appropriated and shall be deposited to the Escrow Fund, which
together with certin proceeds of the Bonds shall be used to refund the Refunded Obligations.
SECTION 28. PURCHASE OF UNITED STATES TREASURY OBLIGATIONS. To assure
the purchase of the Escrowed Securities referred to in the Escrow Agreement, the Mayor, the City's Chief
Financial Officer, and the Escrow Agent are hereby authorized to subscribe for, agree to purchase, and purchase
non-callable obligations of the United States of America, in such amounts and maturities and bearing interest at
such rates as may be provided for in the Report, and to execute any and all subscriptions, purchase agreements,
commitments, letters of authorization, and other documents necessary to effectuate the foregoing, and any actions
heretofore taken for such purpose are hereby ratified and approved.
SECTION 29. MATTERS RELATED TO REFUNDING. In order that the Issuer shall satisfy
in a timely manner all of its obligations under this Ordinance, the Mayor and all other appropriate officers and
agents of the Issuer are hereby authorized and directed to take all other actions that are reasonably necessary to
provide for the refunding of the Refunded Obligations, including without limitation, executing and delivering on
behalf of the Issuer all certificates, consents, receipts, requests, notices, and other documents as may be
reasonably necessary to satisfy the Issuer's obligations under this Ordinance and to direct the transfer and
application of funds of the Issuer consistent with the provisions of this Ordinance.
SECTION 30. APPROVAL AND REGISTRATION OF BONDS. The Mayor of the City is
hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the
Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the
State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon
registration of the 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. The Bonds thus registered shall
remain in the custody of the Mayor (or his designee) until delivered to the purchaser thereof.
SECTION 31. FURTHER PROCEDURES, The Mayor, the City Secretary, and all other
officers, employees, and agents of the City, and each of them, shall be and they are hereby expressly authorized,
empowered, and directed fonn time to time and at any time to do and perfonn all such acts and things and to
execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the City all such
instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the tenns
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CL(.~.)
and provisions of this Ordinance. The Official Statement. dated _' 1994. and other documents used in
connection with the sale of the Bonds are hereby approved and the Mayor of the City is hereby directed and
authorized to execute on behalf of the City. and the City Secretary is hereby authorized to attest. the Official
Statement and other sale documents.
SECTION 32. SEVERABILITY. The provisions of this Ordinance are severable; and in case
anyone or more of the provisions of this Ordinance or the application thereof to any person or circumstance
should be held to be invalid. unconstitutional. or ineffective as to any person or circumstance, the remainder of
this Ordinance nevertheless shall be valid. and the application of any such invalid provision to persons or
circumstances other than those as to which it is held invalid shall not be affected thereby.
SECTION 33. [Insurance to Come]
SECTION 34. [Insurance to Come]
SECTION 35. IMMEDIATE EFFECT. This Ordinance shall take effect immediately upon its
adoption.
PASSED AND APPROVED this rnftR-vh. I{ 1994.
$m$/&~
<Mayor, City of La Porte. Texas
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EXIDBIT A
PAYING AGENTIREGlSTRAR AGREEMENT
.
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..
EXIDBIT B
PURCHASE CONTRACT
B-1
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,
EXlllBIT C
ESCROW AGREEMENT
THE ESCROW AGREEMENT IS OMIITED AT THIS POINT AS IT APPEARS IN EXECUTED FORM
ELSEWHERE IN TIllS TRANSCRIPT.
C-l
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EXHIBIT D
NOTICE OF PRIOR REDEMPTION
[To Come]
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.UEST FOR cm COUNCn. AGENDA .a
Agenda Date Requested: March 14.1994
Requested By: Alex Osmond
Department: Administration
xx
Report
Resolution
Ordinance
Exhibits:
1)
2)
3)
4)
Sealed Bid #0538
Bid Tabulation and Bidder List
Budget/Recommendation Chart
Equipment Specification Deviations
SUMMARY & RECOMMENDATION
Sealed Bids #0538 for golf course equipment were opened and read on February 21, 1994. Bid requests were mailed to four (4)
vendors with three (3) returning bids.
The equipment includes a 5th wheel dump trailer, top-dresser, riding greens mower, leaf and litter blower, 4-wheel drive hydraulic
rough mower, 72 "out-front rotary mower, 100 gallon sprayer, 200 gallon sprayer, 5-gang hydraulic fairway mower, and a debris
blower.
Watson Distributing Company, Inc. was low bidder meeting all specifications for six (6) items: one (1) 5th wheel dump trailer;
one (1) top-dresser; one (1) riding greens mower; one (1) leaf and litter blower; one (1) 72 "out-front rotary mower; and one (1)
5-gang hydraulic fairway mower,
Goldthwaites of Texas was low bidder meeting all specifications for four (4) items: one (1) 4-wheel drive hydraulic rough mower;
one (1) 100 gallon sprayer; one (1) 200 gallon sprayer; and one (1) debris blower.
Total of bid awarded to:
Watson Distributing Company, Inc.
Goldthwaites of Texas
Total
Total Budgeted
$ 54,216.00
$ 45.846.40
$ 100,06240
$ 106,500.00
Staff recommends awarding bids for golf course equipment to Watson Distributing Company, Inc. and Goldthwaites of Texas.
Action Required by Council:
Award bids as recommended by staff.
Availability of Funds:
_ General Fund_ Water/Wastewater
_ Capital Improvement_ General Revenue Sharing
-2L Other
Account Number: Various
Funds Available: .x.. YES NO
Approved for City Council A~nda
G<~ T. \~ 3 \8\Q'{
Robert T. Herrera Date
City Manager
...
...
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CITY OF LA PORTE
IH'l'EROFFICB MEMORANDUM
FEBRUARY 18, 1994
e
TO: DENNIS HLAVATY, GOLF COURSE MAINTENANCE SUPERINTENDENT
FROM: SUSAN KELLEY, PURCHASING AGENT~
SUBJECT: SEALED BID #0583 - GOLF COURSE EQUIPMENT
Advertised, sealed bids #0583 - golf course equipment were opened
and read on Febraury 21, 1994. Bid requests were mailed to four
(4) vendors with three (3) returning bids.
Low bid meeting specifications were submitted as follows:
Watson Distributing
Item # 1
Item # 2
Item # 3
Item # 4
Item # 6
Item # 9
TOTAL
Goldthwaites of Texas
Item # 5
Item # 7
Item # 8
Item #10
TOTAL
$ 2,390.00
$ 2,310.00
$10,220.00
$ 398.00
$ 9,730.00
$29,168.00
$54,216.00
$34,966.40
$ 3,772.00
$ 5,373.00
$ 1,735.00
$45,846.40
The total cost for golf course equipment is $100,062.40.
Please submit your recommendation with an agenda request form by
the pr~scribed time before the next regular council meeting. If
there 18 a need to delay bringing this bid before council please
notify me. '
Attachment: Bid Tabulation
Bidder's List
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BID TABULATION - GOLF COURSE EQUIPMENT
12.390.00 NO BID NO BID
TOP-DRESSER 1) 910.00 $2,941.00 NO BID
$10,.22Q.OO $11.088.11 $11.'STT .88
$398.00 $5S8.oo $519..00
4 WHEEL DFIVE HYC. ROUGH MOWER 1 $35,390.00 986.40 NO BID
72" OUT-FRONT ROTARY MOWER 1 sa 730.00 $11 090.00 $10806.60
100 GALLON SPRAYER 1) $4,054.00 13.772.00 NO BID
$5,910.00 $5.313.00 NO BID
9) 5-GANG HYDRAULIC FAJRNAV MOWER (1) $29,188.00 NO BID $30,823.41
ALTERNAtE $25.209.00 ... .
10 DEBRIS BLOWER (1 $2,940.00 $1.735-00 $2,850.00
"AlL OR NONE" BID $101.484.90
BIDDER'S LIS'!'
SEALED BID '0583 - GOLF COURSE EQUIPIIBHT
BROOKSIDE EQUIPMENT SALES
19003 1-45 NORTH
SPRING, TX 77388
GOLDTHWAITE'S
220 FARISS
HOUSTON, TX 77054
WATSON DISTRIBUTING
P. o. MX 36211
HousTON, TX 77236-6211
MOWER'S INC.
2903 S. SHAVER
PASADENA, iT 77502
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BUDGET/RECOMMENDATION CHART
. tion Budgeted Recommended Vendor
5th Wheel Dump Trailer Watson Distributing-
2,500.00 2,390.00 meets all specifications
Top-Dresser Watson Distributing -
1,200.00 2,310.00 meets all specifications
Riding Greens Mower Watson Distributing -
13,000.00 10,220.00 meets all specifications
Leaf and Litter Blower Watson Distributing-
2,100.00 398.00 meets all specifications
4- Wheel Drive Hydraulic Goldthwaites of Texas
Rough Mower 38,000.00 34,966.40 meets all specifications
72" Out-Front Rotary Mower Watson Distributing -
9,500.00 9,730.00 meets all specifications
100 Gallon Sprayer Goldthwaites of Texas
3,700.00 3,772.00 meets all specifications
200 Gallon Sprayer Goldthwaites of Texas
5,500.00 5,373.00 meets all specifications
5-Gang Hydraulic Fairway Watson Distributing -
Mower 28,000.00 29,168.00 meets all specifications
Debris Blower Goldthwaites of Texas
3,000.00 1,735.00 meets all specifications
TOTAL $ 106,500.00 $ 100,062.40
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5-GANG HYDRAUUC FAIRWAY MOWER
SPECIFICATION DEVIATIONS
Brookside Equipment Sales
Specifications Deviations
Specifications Deviations
Horsepower: Horsepower:
. 37.5 H.P. Minimum . 32 H.P.
Reels: Reels:
. Size - 26 inches . Size - 22 inches
. Diameter - 7 inches . Diameter - 5 inches
# of Blades - 10 # of Blades - 8
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REQUEST FOR CITY COUNCIL AGENDA ITEM
-----------------------------------------------------------------
-----------------------------------------------------------------
Agenda Date Requested:
March 14, 1994
Requested By: Susan Kelley
Report
Department:
Resolution
Purchasing
Ordinance
Exhibits:
-----------------------------------------------------------------
-----------------------------------------------------------------
SUMMARY & RECOMMENDATION
Various departments have budgeted for pagers and radios this fiscal
year. Through an inter-local agreement, the Ci ty may purchase
these items from the Houston Galveston Area Council and eliminate
the need for a sealed bid.
The total expenditure, including a 3% administrative fee would be
$30,080.12.
The departmental costs are as follows:
Fire
$ 3,716.24
$13,091.30
EMS
Parks & Rec
$
626.24
Police
$10,979.80
$ 1,666.54
Utility Billing
Sufficient funds have been budgeted in departmental accounts for
this purchase.
Action Required by Council:
Authorize purchase of radios and pagers from HGAC in the amount of
$30,080.12.
-----------------------------------------------------------------
-----------------------------------------------------------------
Availability of Funds:
General Fund
Capital Improvement
Other
Water/Wastewater
General Revenue Sharing
Account Number:
Various
Funds Available: X YES
No
-----------------------------------------------------------------
-----------------------------------------------------------------
Approved for City Council Agenda
~ ""L-~
Robert T. Herrera
City Manager
~. ~. q~
Date
-----------------------------------------------------------------
-----------------------------------------------------------------
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1994 RADIO PURCHASE = HGAC
DESCRIPTION
FIRE DEPARTMENT - 001-500-501-821
1) Minitor II Pagers
(Minus 2nd Channel)
2) MT-1000 VHF
3) MT-1000 UHF
4) Intrinsically safe
5) Rapid rate charger (NTN4633)
EMS - 001-500-517-821
1) HT-1000 VHF
(Budgeted MT-1000)
2) Intrinsically safe (H-798)
3) Battery Charger (H437)
4) Spkr/Mic (NMN6193)
POLICE - 001-502-503-821
1) Spectra-Mobile VHF
w/trunk mount (TA9KM 078W)
2) Hi-Power Watts A-9 Model
(TA9FW)
3) Siren/PA (W269)
4) Gain Ant. 3.0 DB (W524)
PARKS & RECREATION - 001-800-800-850
1) Maxtrac 300 Mobile
16 channel w/scan (D43MJA)
2) Gain Antenna 3.0 DB (B926)
UTILITY BILLING - 002-808-808-821
1) Hand Held HT-1000
2) H437 Exchange Chargers
QTY
UNIT PRICE
20
$ 324.00
$ 915.00
$ 998.00
$ 29.00
$ 86.00
4
")
.t.
2
6
TOTAL
4
$ 761.00
$ 29.00
$ 48.00
$ 64.00
A
"%
4
4
TOTAL
A
"%
$1,704.00
4
$ 433.00
4
4
$ 478.00
$ 50.00
TOTAL
1
1
TOTAL
2
2
$ 761. 00
~ 48.00
TOTAL
GRAND TOTAL
TOTAL
$6,480.00
$3,660.00
$1,996.00
$ 58.00
$ 516.00
$12,710.00
$3,044.00
$ 116.00
$ 192.00
$ 256.00
$3,608.00
$6,816.00
$1,732.00
$1,912.00
$ 200.00
$10,660.00
$ 592.00
$ 16.00
$ 608.00
$1,522.00
$ 96.00
$1,618.00
$29,204.00
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REOUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: March 14. 1994
Requested By: . Department:
XXX Report Resolution
Parks & Rec
Ordinance
Exhibits: 1. Bid Recap Sealed Bids #0585 - T-shirts & Caps
SUMMARY & RECOMMENDATION
Advertised, sealed bids #0585 for the annual supply of T-shirts and
Caps were opened and read on February 28, 1994. Bid requests were
mailed to twelve (12) vendors with four (4) returning bids.
Overall low bid meeting specifications was submitted by Screen
Images with an overall bid for all items of ten thousand, two
hundred, ninety-nine dollars and fifty cents ($10,299.50).
Staff recommends award of all items to Screen Images, overall low
bidder meeting specifications. Staff additionally recommends award
of a contingency contract to Space City Graphics, second overall
low bidder, to be used only if primary vendor cannot fulfill the
obligations of this contract. Funds for this contract were
budgeted in the 93/94 Recreation Division Operating Budget.
Action Required by Council:
Award bid for the annual supply of T-shirts and Caps to Screen
Images, overall low bidder meeting specifications with a
contingency contract to Space City Graphics.
Availability of Funds:
XXX
General Fund
Capital Improvement
Other
Water/Wastewater
General Revenue Sharing
Account Number: 001-800-801-215 Funds Available: -K- YES NO
Approved for City Council Aqenda
~T,~
Robert T. Herrera
City Manager
'). 'jO~~
Date
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CITY OF LA PORTE
INTER-OFFICE MEMORANDUM
MARCH 2, 1994
SUBJ:
BUDDY JACOBS, PARKS & RECREATION DIRECTOR
SUSAN KELLEY, PURCHASING AGENT~
SEALED BID #0585 - T-SHIRT & CAPS
TO:
FROM:
Advertised, sealed bids #0585 - T-shirt and caps were opened and
read on February 28, 1994. Bid requests were mailed to twelve (12)
vendors with four (4) returning bids.
Attached are copies of the bids for your review.
Please submit your recommendation with an agenda request form by
the prescribed time before the next regular council meeting. If
there is a need to delay bringing this bid before council, please
notify me.
Attachment: Bid Copies
Bid Tabulation
Bid List
RECEIVED
A::',? 0 8 19Q4
! Parl(s and R
~ 8Cr6atlon Dept.
-
e BID TABULATION - T ..sHIRTS & C.e
I I
I I
$3.62 i $3.70 I
M.OO I $4.10 I
I $30.00 I
$990.50 $1,100.00 $1,045.00
.............-......... ....... .... .
,....$i<<~j:tp~:' .J12::~.".:.$it.*~~Q;. ?
1) SpeciaJ Events Caps (360)
ITEM #, TOTAL
2) R.EC. Novelty Shirts I
2A Tank-Tops Sm - XLg (40) 'I
Tank-Tops XXLg (10)
SUB-TOTAL ,
28. T-Shirts 8m - XLg (40)
T-Shirts XXLg (10) I
SUB-TOTAL I
I
ITEM #2 TOTAl
Screen Charge (3)
3) Athletic Leagues (620)
Screen Charge (5)
ITEM fI3 TOTAL
4) Aquatic DiVision Shirts
4A T-Shirts - Short Sleeve (40) I
SUB-TOTAL I
48. T-Shirts - Sleeveless (102) I
SUB-TOTAL I
Screen Char e 2)
ITEM #4 TOTAL
5) Swimming Lesson T-Shirts I
Youth 14/16 (25'" 'I......
SmaJl - XLarge (275)
Screen Charge (3)
ITEM #5 TOTAL
6) Summer 1994 T-Shirts I
SmaJl - XLarge (325) I
XXLarge (10) I
Screen Charge (3)
I
7) Summer Track & Field
7A. Tank-tops Sm-Xlg (100) I
SUB-TOTAL
78. T-Shirts Youth 14./16 (25)
SmaJl - XLarge (60)
ITEM #6 TOTAL I
SUB-TOTAL
Screen Charge (3)
Is) Track & Reid Officials
SmaJl - XLarge (60)
XXLarge (40)
Screen Charge (4)
I
9) T.AAE Track & Field
I
I Youth 14/16 (25)
I Small - XLarge (225)
I Screen Char e :t
ITEM #7 TOTAL
I
I
I
ITEM #8 TOTAL I
J,. ..
............,..
......,..............,.
..-.........:. ......... .;....- ," ",
.,.......................,............
...-...................
. . . . , . . . ..... . . '.. .
......... ".... ...
...........-...-..
......__...........-,._..-,.
ITEM fJ9 TOTAL
:GFrAtiiDT6f:AL
....".'........-.............
. -... . ...., -.--...
$5.95
$2,142.00
I
$4.25 I
$5.251
I
$222.50 I
$5.89 I
$6.89 ,
$304.50
$521.00
$3.99
$2,473.80
I
$3.85 I
I
$146.30 I
$3.50 I
I
$357.00 I
I
$503.30
I
$3.52 I
$4.00 I
$1,190.50
I
$4.00 I
$5.00 I
I
$1,350.00 I
I
$4.25 I
$425.00 I
$3.62 I
$4.00 I
$272.40 I
$697.40
I
I
$3.85 I
$4.85 I
I
$425.00
$2,510.00
I
,
$430.00 I
I
I
$510.00 I
I
$940.00
$2,600.00
I
I
$315.00 I
$605.00 I
I
$920.00
I
I
I
I
$1,280.00
I
I
$1,440.00
$615.00 I
I
$440.00 I
$1,055.00
$740.00 I
$5.60
$2,0'6.00
$5.621
$6.62
$291.00 I
$6.95
$7.95
$357.50
$30.00
$678.50
$4.96
$50.00
$3,119.00
$4.64
$176.32
$4~:~~'r~
$20.00 I
$657.36
I
$3.451
$3.85
$30.00 I
$1,175.00
$3.851
$4.85
$30.00
$1,329.75
$4.84
$484.00 I
$3.70 I
$4.10 ,
$279.00
$30.00
$776.00
I
$3.85 I
$4.85 I
I
$40.00 I
$485.00 I
$5.25
$' ,890.00
$310.00
$442.50
$"132.50
$2,905.00
$235.00 I
$636.00
$871.00
$',410.00
$1,567.50 I
$660.00 I
I
$445.00 I
$1,005.00
I
I
I
I
I
$550.00 I
I
I
I
$1,185.00
...:..J1~jj~.Q(FI
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BIDDER'S LIST
SEALED BID #0585 - PARK & RECREATION T-SHIRTS & CAPS
CONSTANZO ADVERTISING
P.O. BOX 1422
LA PORTE, TX 77572
ATTN: BUDDY WILLIAMS
471-7789
PETRO GRAPHICS
P.O. BOX 1168
LA PORTE, TX 77572
BID INVITATION ENCLOSED
471-6800
MILLER'S SILK SCREEN
917 S. 4TH
LA PORTE, TX 77571
ATTN: CHARLES MILLER
471-4817
SCREEN IMAGES
2920 CRAWFORD
HOUSTON, TX 77004
ATTN: HOWARD
522-9960
COASTAL SCREENING
131 E. PASADENA FREEWAY
PASADENA, TX 77506
BID INVITATION-ENCLOSED
477-4988
GOOSE CREEK SPECIALTIES
1314 MARKET DR.
BAYTOWN, TX 77520
ATTN: KAREN KELLER
428-2425
R. B. SPORTWEAR
20 WILSON ROAD
HUMBLE, TX 77338
ATTN: RICKY BEATY
446-1122
SPACE CITY SCREEN GMPHICS
2200-C HIGHWAY 146
SEABROOK, TX 77586
BID INVITATION ENCLOSED
474-3471
...
ALL - SEW EMBROIDERY
3203 A PRESTON
PASADENA, TX 77505
BID, INVITATION ENCLOSED
487-5951
AD A NAME
626 S. PARKTOWN
DEER PARK, TX 77536
ATTN: GINNY FONTENOT
930-9505
PRESTIGE PROMOTIONAL PRODUCTS
5910 LAMPMAN
BEAUMONT, TX 77706
ATTN: CHARLIE DIXON
1-409-898-1246
DELANE'S AD SPECIALTIES
1708 SENS RD.
LA PORTE, TX 77571
ATTN: DELANE JONES
470-2339
ACF TROPHIES & AD SPECIALTIES
2200 MAIN
HOUSTON, TX 77002
ATTN: MS. SAMIE PARKER
655-9230
CARROUSEL PRODUCTIONS
9630 CLAREWOOD, SUITE 0-1
HOUSTON, TX 77036
ATTN: ELISSA CARR
995-4454
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CITY OF LA PORTB
INTER-OFFICB KBKORAHDUH
TO:
Robert T. Herrera, city Kanaqer
Sue Lene., City secretary ~
FROM:
SUBJBCT:
Reappointment of Health Authority
DATB:
Karch 8, 1994
It has been brought to my attention that P.J. Mock, M.D., Health
Authority of the City of La Porte, has not been reappointed. His
term was up May 8, 1991.
Attached is copy of ordinance of appointment, May 8, 1989. Also,
attached is a copy of a sample of a new ordinance of reappointment.
Do you wish to bring this to the Council's attention at March 14th
City Council meeting?
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'-'
ORDINANCE NO. ~q~~
AN ORDINANCE APPOINTING P. J. MOCK, JR., H.D., AS HEALTH AUTHORITY
OF THE CrTY OF LA PORTE; CONTAINING A REPEALING CLAUSE; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE
DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY Of LA PORTE, TEXAS;
~~9_t.i..QIL.1. Tile City Council of the City of La Porte her'eby
appoints P. J. Mock, JI'" M,D., as Health Author'ily of the CHy (J[
La PUI.te, t!fft!cl.ive a~ of Ml:IY 8, 1989. The appointee shall serve
CO I' a pe r' iod ~~ltJ'I~~~ -.r9'91~_ 0 t'~!it i 1 _ ili s--;U-ccessoj~..b-e~liJ
i1Ul yap po fnt: e (l---at=laljUan-C-((;d:]
----...:..----
~!iJ<.tion 2. All uI"lllnC:lnce3 or- par'ts of ol'dinances in oonflict
hel'~witll ar'e Ilet'eby I't!pel:lled \;0 the extent of conflict only.
~JL3., The City Councll offioially finds, deter'mines,
r'ecil.el:l l:Ind declares tllat a suffioient wl'1tten notice of the date,
hou/', place and subject of this meeting of the City Council wa:l
pasted at a pll:lce convenient to the public at the City Hall of the
City [01' tilt! tillie r-equit'ed by law pt'eceding this meeting, as
l'equi "ed by the Open t.leetings Law, Ar'ti'cle 6252-17, Texas Rev ised
Civil Statute::! Annotated; and that tllis meeting lias been open to
the public as I'equired uy law at all times during which this
or'dinance and the :lubject mattel' thel'eof has been di.scussed,
conDidt!l'cd and formally acted upon. The City Council further'
r'atifiE,:a, l.Ipp,'oves and confirms such written notice and the
cor,ltents and p03tillg thereof.
,'i~Qj:.J_Q..lLJl, This Ordillance shall take effect and be in force
fl'om and after' May 8,1989.
PASSED ANi) APPROVED this the 8th day of May, 1989.
CITY OF LA PO HTE
B/~~~g~__
N~~ L, MalOne~yor
ATTEST:
LI~d:.____
City Secl-etal'"y
APP ROVED;
~J~_~
City Attol'ney
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CITY OF LA PORTB
RECEIVED
J
MAR 8 1994
(;j (f MANAGERS
OFFICE
SUBJECT:
INTER-OFFICB KEMORANDUM
J
,1
Robert T. Herrera, City Manaqer
Sue Lenes, City secretary~
Appointments for Expired Terms to
Health Facilities Development corporation
TO:
FROK:
DATE:
March 8, 1994
The Governing Body, has the right to reappoint or appoint new
members to the board for the City of La Porte Health Facilities
Development Corporation. The appointments of the originally named
seven persons expired on April 30, 1986.
The City of La Porte is refiling with the Secretary of State to
keep our Charter for this Corporation in good standing. In the
event the City so chooses to pursue activities utilizing this
development corporation, it must have a current board.
Attached is copy of Articles of Incorporation and a copy of the
Resolution 84-2, signed 4 April, 1984.
Please advise if you wish to change persons on the board or
reappoint the same persons. Mr. Askins will need to prepare an
ordinance for reappointments/new appointments to be passed at a
Council meeting.
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RESOI1JTION 84-2
RESOLUTION AuTHORIZING AND APPROVING
CREATION OF A HEALTH FACILITIES DEVELOP~NT
CORPORATION TO ACT ON BEHALF OF THE CIn' OF LA PORTE, TEXAS
WHEREAS, the Heal~h Facilities Developmen~ Act, Article 1528j, Vernon's
Texas Civil S~a~u~es (the "Act"), authorizes ci~ies, coun~ies or hospital
districts to crea~e nonmember, nonstock, public corpora~ions for the sole pur-
pose of acquiring, constructing, providing, improving, financing and refin-
ancing health facilhies, as defined in the Act, in order to assist the
maintenance of the pub lic h~alt::h, t.'i th pOwers, among others, to issue bonds
and to loan ~he proceeds of the sale of such bonds to finance the acquisition,
construc~ion, and improvement of facilities found by the boards of directors
of such corporations to be required, necessary or convenient for health care,
research and education, anyone or more;
WHEREAS, the Act empowers the City Council (the "Governing Body") of ~he
City of La Porte, Texas (the "City") to approve articles of incorporation and
bylaws for such a corpora~ion, to appoint the directors of such a corporation,
and, in the sole discretion of the Governing Body, to alter the structure,
organization, programs or activities of such a corporation at any time, sub-
ject only to any limitation provided by the constitutions and laws of the
State of Texas and of the United States relating to the impairment of con-
tracts entered into by such corporation;
WHEREAS, the Governing Body has reviewed the proposed Articles of
Incorporation and Bylaws and has determined that it is in the public interest
and to the benefit of the residents of the City and the citizens of this State
that a health facilities development corporation be created under the Acf to
promote new, exp~ded or improved health facilities in order to assist ~he
maintenance of the public health and the public welfare;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, TEXAS THAT:
SECTION 1. The Governing Body has found and determined and hereby finds
and determines that a health facilities development corporation be authorized
and created, with such health facilities developmen~ corporation to be known
as the "City of La Porte Health Facilities Development Corpora~ion" (the
"Issuer").
SECTION 2. The Governing Body hereby approves ~he Articles of Incor-
poration and the Bylaws proposed to be used in organizing the Issuer (copies
of which are attached to this Resolution and made a part hereof for all pur-
poses); hereby grants authority for ~he incorporation of the Issuer; and
hereby appoints Virginia Cline W. R. Sprinqall
Jerry Cennis E. W. Felscher John Lonqley
Robert A. White, and
the initial directors of the Issuer.
Jack Lawler
-
.
SECTION 3. The public purposes of the City, which the Issuer may further
on behalf of the City, are the promotion and development of new, expanded Or
improved health facilities to assist the maintenance of the public health and
the public welfare.
SECTION 4. The Issuer is hereby designated as the duly constituted
authority and instrumentality of the City (within the meaning of those terms
in the regulations of the Treasury and the rulings of the Internal Revenue
Service prescribed and promulgated pursuant to Section 103 of the Internal
Revenue Code of 1954, as amended) and shall be authorized to act on behalf of
the City for the specific public purpose of the promotion and development of
new, expanded or improved health facilities to assist the maintenance of the
public health and the public welfare; but the Issuer is not intended to be and
shall not be a political subdivision or a political corporation within the
meaning of the Constitution and the laws of the State of. Texas, including
without limitation, Article III, Section 52, of the State Constitution, and
the City does not delegate to the Issuer any of its attributes of sovereignty,
including the power to tax, the power of eminent domain and the police power.
SECTION 5. The Issuer may, under the conditions set forth in this
Resolution, issue obligations on behalf of the City, acquire, lease, sell or
convey certain properties and make loans for the promotion and development of
new, expanded or improved health facilities to assist the maintenance of the
public health and the public welfare. The City shall not lend its credit or
grant any public money or thing of value in aid of the Issuer. Furthermore,
obligations issued by the Issuer with the approval of the City shall not con-
stitute obligations of the State of Texas, the City, or any other political
subdivision or agency of the State of Texas or a pledge of the faith and
credit of any of them; and the Issuer is not authorized to incur financial
obligations unless payable solely from the proceeds of bonds, revenues derived
from the lease or sale of a health facility or realized from a loan made by
the Issuer to finance or refinance in whole or in part a health facility,
revenues derived from operating a health facility, or any other revenues as
may be provided by a user of a health facility anyone or more; and any such
health facility shall have been found by the board of directors of the Issuer
to be required, necessary or convenient for health care, research and educa-
t ion, anyone or more.
SECTION 6. At least 14 days prior to the issuance of bonds by the
Issuer, the Issuer will file with the Governing Body a full and complete
description of any health facility the cost of which is to be paid in whole or
in part from the proceeds of bonds of the Issuer proposed to be issued, in-
cluding an explanation of .the projected costs of and the necessity for such
proposed health facility and the name of the proposed user of such health
facility.
SECTION 7. Upon dissolution of the Issuer the City shall accept title to
or other interest in any real or personal property owned by the Issuer at such
time.
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SECTION 8. This Resolution is adopted for the purpose of satisfying the
conditions and requirements of the Act and of Section 103 of the Internal
Revenue Code of 1954, as amended, and the regulations prescribed thereunder
from time to time and for the benefit of the Issuer, the City, the owners or
holders from time to time of the obligations of the Issuer and all other
interested persons.
SECTION 9. The Governing Body has considered evidence of the posting of
notice of this meeting and officially finds, determines, recites and declares
that a sufficient written notice of the date, hour and place of this meeting
and of the subject of this resolution was posted on a bulletin board located
at a place convenient to the public in the City Hall of this City for at least
72 hours preceding the scheduled time of such meeting; and that such place of
posting was readily accessible to the general public at all times for such
time of posting until the scheduled time of such meeting; and that such meet-
ing was open to the public as required by law at all times during which the
Resolution and the subject matter thereof were discussed, considered and for-
mally acted upon, all as required by the Open Meetings Law, Article 6252-17,
Vernon's Texas Civil Statutes, as amended. This Court further ratifies,
approves and confirms such written notice and the contents and posting
thereof.
0384247
WP0229
DATED this the 4th day of April, 1984.
CITY OF IA PORTE
By: ;/p.~-"P3/"
V. 'a Cline, syor
ATrEST:
(2/~ ~~
Cherie Black, City Secretary
&txd
Knox W. Askins,
APPROVED:
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ARTICLES OF INCORPORATION
OF
CITY OF LA PORTE HEALTH FACILITIES DEVELOPMENT CORPORATION
THE STATE OF TEXAS ~
~
COUNTY OF HARRIS ~
We, the undersigned natural persons, each of whom is of the age of 18
years or more and is a resident of the City of La Porte, Texas (the "City"),
acting as incorporators of a health facilities development corporation (the
"Issuer") under the Health Facilities Development Act, Article 1528j, Vernon's
Texas Civil Statutes (the "Act"), with the approval of the City Council (the
. "Governing Body") of the City, as evidenced by its resolution approving these
Articles of Incorporation attached hereto and made a part hereof for all pur-
poses, do hereby adopt the following Articles of Incorporation for the Issuer:
ARTICLE ONE
The name of the Issuer is "City of La Porte Health Facilities Development
Corporation. II
ARTICLE TWO
The Issuer is a nonprofit public corporation and is a health facilities
development corporation under the Act.
ARTICLE THREE
The period of duration of the Issuer is perpetual.
ARTICLE FOUR
The purpose of the Issuer is to acquire, construct, provide, improve,
finance and refinance any real, personal or mixed property, or any interest
therein, the financing, refinancing, acquiring, providing, constructing,
enlarging, remodeling, renovating, improving, furnishing or equipping of which
is found by the board of directors of the corporation to be required, neces-
sary or convenient for health care, research and education, anyone or more,
within the State of Texas, all to assist the maintenance of the public health
and the public welfare. The Issuer is a constituted authority and a public
instrumentality within the meaning of the regulations of the United States
Treasury Department and the rulings of the Internal Revenue Service prescribed
and promulgated pursuant to Section 103 of the Internal Revenue Code of 1954,
as amended, and the Issuer is authorized to act on behalf of the City as
provided in these Articles of Incorporation. However, the Issuer is not a
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political subdivision or political corporation of the State of Texas within
the meaning of its constitution and laws, including, without limitation,
Article III, Section 52, of said constitution, and bonds of the Issuer shall
not constitute obligations of the State of Texas, the City or any other
political subdivision or agency of the State of Texas, or a pledge of the
faith and credit of any of them. No part of the net earnings of the Issuer
shall inure to the benefit of any private shareholder or individual; no sub-
stantial part of its activities shall be carrying on propaganda, or otherwise
attempting to influence legislation; and it shall not participate in, or
intervene in (including the publishing or distribution of statements), any
political campaign on behalf of or in opposition to any candidate for public
office.
ARTICLE FIVE
The Issuer has no members and is a nonstock corporation.
ARTICLE SIX
These Articles of Incorporation may at any time and from time to time be
amended as provided in the Act, so long as such Articles contain only such
provisions as are lawful under the Act, when and if the Governing Body by
appropriate resolution finds and determines that such amendment is advisable
or authorizes and directs that such amendment be made. The Governing Body
may, in its sole discretion and at any time, alter the structure, organi-
zation, programs or activities of the Issuer, subject only to any limitation
provided by the constitution and laws of the State of Texas and of the United
States relating to the impairment of contracts entered into by the Issuer.
ARTICLE SEVEN
The affairs of the Issuer shall be managed by a board of directors com-
posed of such number of natural persons (not less than three) as may be fixed
by the bylaws. Directors shall be appointed by the Governing Body for a term
of no more than six years. The number of directors constituting the original
board of directors shall be seven. The names and addresses of the persons who
shall serve as initial directors of the Issuer are and the date of expiration
of their initial terms as directors as follows:
-
NAME
ADDRESS
DATE OF
EXPIRATION OF TERM
Virginia Cline
328 South Blackwell
April 30, 1986
La Porte, Texas 77571
w. R. Springall
2713 Crescent View
.A.pril 30, 1986
La Porte, Texas 77571
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ADDRESS
DATE OF
EXPIRATION OF TERM
NAME
Jerry Dennis
10418 North "P" Street
April 30, 1986
La Porte, Texas 77 5 71
E. W. Fe1scher
204 East Sylvan
April 30, 1986
La Porte, Texas 77571
John Longley
9826 Shell Rock
April 30, 1986
La Porte, Texas 77571
Robert A. White
403 South 4th Street
April 30, 1986
La Porte, Texas 77571
Jack Lawler
1400 North lOth Street
April 30, 1986
La Porte, Texas 77571
Each director shall hold office for the term for which he is appointed and
until his successor shall have been appointed and qualified unless sooner
removed. Each director shall be eligible for reappointment. Directors are
removable by the Governing Body for cause or at will. Directors shall serve
as such without compensation except that they may be reimbursed for their
actual expenses incurred in the performance of their duties under the Health
Facilities Development Act. Any vacancy occurring on the board of directors
through death, resignation, or otherwise, shall be filled by appointment by
the Governing Body to hold office until the expiration of the term for which
the vacating director had been appointed.
ARTICLE EIGHT
604 w~ai1:hbh*ttp~s of the initial registered office of the Issuer is
Ta Porte. Texas 77571 , and the name of its initial registered
agent at such address is Jack OWen
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ARTICLE NINE
The initial bylaws of the Issuer shall be adopted by its board of
directors, and the power to alter, amend or repeal the bylaws or adopt new
bylaws shall be vested in the board of directors provided that the initial
bylaws and all amendments thereto, substitutes therefor, and repeals thereof,
shall be subj ect to the approval of the Governing Body.
ARTICLE TEN
Whenever all bonds and obligations of the Issuer have been paid and dis-
charged or adequate provision has been made therefor and the Governing Body
shall have by written resolution authorized and directed the dissolution of
the corporation, the corporation shall be dissolved as provided in the Health
Facilities Development Act. Whenever dissolution occurs, the title to all
funds and properties then owned by the Issuer shall not be transferred to
private ownership, but shall automatically vest in the City of La Porte,
Texas, without any further conveyance, transfer or act of any kind whatsoever.
ARTICLE ELEVEN
The name and street address of each incorporator is as follows:
NAME
ADDRESS
328 South Blackwell
La Porte,- Texas 77571
Virginia Cline
Jack ONen
805 South Iowa Street
La Porte, Texas 77571
Cherie Black
326 Falk Street
La Porte, Texas 77571
ARTICLE TWELVE
The name and address of the sponsoring entity is City Council of the City
of La Porte, Texas, 604 West Fairmon~Parkway,
, La Porte, Texas 77571 The Governing Body has by
resolution specifically authorized the Issuer to act on its behalf to further
the public purpose set forth in such resolution and these Articles of
Incorporation and has approved these Articles of Incorporation.
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IN WITNESS WHEREOF, we have hereunto set our hands this 4th
April, 1984.
day of
THE STATE OF TEXAS 9
9
COUNTY OF HARRIS 9
I, the undersigned, a Notary Public of the State of Texas, do hereby
certify that on this 'I fl-l. day of April, 1984, Virginia Cline ,
Jack OWen and Cherie Black , who each being by
me first duly sworn, severally declared that they are the persons who signed
the foregoing document as incorporators and that the statements therein con-
tained are true.
IN WITNESS WHEREOF,
year.ab~~~ written.
",,"'~'l PU"#'.'
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I have hereunto set my hand and seal the date and
~
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NOTARY PUBLIC IN AND FOR
THE STATE OF TEXAS
My Commission Expires:
/d.-/6-80
0384250
WP0229
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TO:
v Robert T. Herrera, City Manager
John Joerns, Assistant City Manager
FROM:
Charles R. Harrington, Director of Planning
t://
SOOJEC'f: Underwood Road Reconstruction
As you know, for the past two years Harris County has been involved in the reconstruction
and widening of Underwood Road from S.H. 225 to Fairmont Parkway.
The first section from S.H. 225 to Pasadena Boulevard was completed last year. The second
section from Pasadena Boulevard to Spencer Highway is currently under construction. The
third section from Spencer Highway to Fairmont Parkway has been designed and until a
week ago, had not been let for bids. This past week, that situation on the third section
changed dramatically. The third section is now out for bids which are due in two weeks.
As you may recall, last February Harris County sent La Porte an agreement concerning the
proposed project and the requirement for the City of La Porte to participate by funding for
the relocation of utilities in the right-of-way in the amount of an estimated $65,000.00.
Following several discussions with the Harris County Engineer's office, the City agreed to
their responsibility to move the utilities but did not want to commit the actual funds until
a point in time that construction was anticipated. Discussions regarding the projected
construction date indicated that it would not be included in the City's FY 1994 budget. That
situation has now reversed and will require a commitment from La Porte in FY 1994. The
actual amount of the commitment will not be known until bids are received in two weeks.
I have attached, for your information, a copy of the agreement which will require approval
of the City Council following receipt of the bid prices from Harris County.
Please let me know if I can furnish you any further information.
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41,490(tld)
A G R E E MEN T
THE STATE OF TEXAS i
i
COUNTY OF BARRIS i
This Agreement, made and entered into by and between Harris
County, a body corporate and politic under the laws of the state
of Texas, hereinafter called the "county," and the city of
LaPorte, a municipal corporation created under the laws of the
state of Texas, hereinafter called the "city";
WIT N E SSE T H:
WHEREAS, the County desires to take competitive bids for the
reconstruction of Underwood Road from Spencer Highway to Fairmont
Parkway, hereinafter sometimes called "county's improvements";
and
WHEREAS, the city owns and operates
within the right-of-way of Underwood Road,
"City's facilities", which will conflict
improvements; and
various facilities
hereinafter called
with the County's
WHEREAS, the city has requested the County to include, at
the city's expense, the relocation of the City's facilities as a
separate bid item in the County's contract for the construction
of the County's improvements; and
WHEREAS, the County is willing to include the relocation of
the city's facilities as a separate bid item in the County's
contract for the construction of the County's improvements; and
WHEREAS, the County has prepared plans and specifications
for the construction of the County's improvements and the
relocation of the city's facilities, which have been approved by
the city;
NOW, THEREFORE, the County and the City,in consideration of
the mutual covenants and agreements herein contained, do mutually
agree as follows:
')
I.
After the County advertises for bids for both the
construction of the county's improvements and the relocation of
the city's facilities, in accordance with the plans and
specifications therefor, in which bidders are instructed to
submit separate bid items for the cost of the City's relocation
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and the construction of the County's improvements, the county
will receive and tabulate said bids. After receipt and
tabulation of the bids for the construction of the County's
improvements and the relocation of the City's facilities, the
county will determine the lowest and best bid for both the
construction of the County's improvements and for the relocation
of the City's facilities. The County Commissioners Courts'
determination of the lowest and best bidder shall be final and
conclusive. The County may reject all bids and readvertise for
bids. The County will notify the ci ty of the amount of the
lowest and best bid for the relocation of the city's facilities.
II.
within forty-five (45) calendar days after receipt of said
notification as to the lowest and best bid for the relocation of
the City's facilities, the City will transmit to the County a
warrant or check made payable to Harris County in the amount
designated in the lowest and best bid for the relocation of the
city's facilities, plus the sum of $500.00 for administrative
expenses.
III.
Within sixty (60) days after receipt of said funds from the
city pursuant to paragraph II above, the County shall let the
contract for the construction of the County's improvements and
for the relocation of the city's facilities. The county shall
supervise the construction of the County's improvements and the
relocation of the City's facilities in a manner similar to that
of other County construction projects. The County Engineer may
make minor changes in the plans and specifications which he deems
necessary or desirable during the construction of the County's
improvements and relocation of the City'S facilities.
IV.
The County may terminate this Agreement, with or without
cause, any time prior to the letting of the contract for
construction of the County's improvements and the relocation of
the City'S facilities, by written notice to City, and the County
shall have no obligation hereunder other than to return to city
the funds paid to County, if any, by city pursuant to Paragraph
II above. In the event County elects to terminate this Agreement
pursuant to this Paragraph, any interest earned on said funds
paid to Coupty by City pursuant to Paragraph II above shall
become the sole property of the city.
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V.
In the event the lowest and best bidder fails or refuses to
construct the said county's improvements or the relocation of the
city's relocation, or for any reason whatsoever said construction
of the County's improvements or relocation of the city's
facilities are not completed, the County's sole and exclusive
obligation to city shall be to refund to City that portion of the
funds paid by City pursuant to this Agreement which have not been
expended for the relocation of the City'S facilities.
VI.
The estimated cost of the relocation of the city's
facilities, including engineering services, is $65,085.00, plus
$500.00 for administrative expenses, and the estimated cost of
the county's improvements is $3,009,200.00. Each party hereto
represents that it has funds currently available in said amounts
for the purpose of meeting its' obligations hereunder.
VII.
No party hereto shall make, in whole or in part, any
assignment of this Agreement or any obligation hereunder without
the prior written consent of the other parties hereto.
VIII.
All notices and communications under this Agreement shall be
mailed by certified mail, return receipt requested, or delivered
to the City at the following address:
The City of LaPorte
P.O. Box 1115
LaPorte, Texas 77572-1115
All notices and communications under this Agreement shall be
mailed by certified mail, return receipt requested, or delivered
to the County at the following address:
Harris County
1001 Preston Avenue, 7th Floor
Houston, Texas 77002-1893
')
Attention: Mr. Terry A. Anderson, County Engineer
Any notice given hereunder shall be deemed given upon deposit of
such in the United states Mail.
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IX.
This instrument contains the entire Agreement between the
parties relating to the rights herein granted and the obligations
herein assumed. Any modifications concerning this instrument
shall be of no force and effect excepting a subsequent
modification in writing, signed by all parties hereto.
IN TESTIMONY OF WHICH, this Agreement, in duplicate
originals, each having equal force has been executed on behalf of
the parties hereto as follows, to wit:
a. It has on the day of , 1993,
been executed by the County Judge of Harris
County, on behalf of the County pursuant to an
Order of the Commissioners Court of the County so
authorizing.
b. It has on the day of , 1993,
been executed by the Mayor of the City of LaPorte,
and attested to by the Secretary of said City,
pursuant to an ordinance of the City Council of
said City so authorizing.
APPROVED AS TO FORM:
MIKE DRISCOLL
County Attorney
BYWIgif~RU~;r~
Senior Assistant County Attorney
HARRIS COUNTY
By
JON LINDSAY, County Judge
ATTEST:
CITY OF LAPORTE
CHERIE BLACK, City Secretary
By
NORMAN MALONE, Ma yor
APPROVED:
COUNTERSIGNED:
\
KNOX W. ASKINS
city Attorney
JEFF LITCHFIELD
Director of Finance
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CERTIFICATION OF FUNDS
I hereby certify that funds of Harris County are available
in the amount of $3,009,200.00 to pay the County's obligation
under the foregoing Agreement.
TOMMY J. TOMPKINS, County Auditor
')
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ORDER AU'l'JIORIZING EXECUTION OF AGREEKENT
BETWEEN HARRIS COUNTY AND 'l'JIE CITY OF LAPORTE
THE STATE OF TEXAS S
S
COUNTY OF HARRIS S
On this the
day of
1993, the
commissioners Court, sitting as the governing body of Harris
County, Texas, at a regular meeting, upon motion of commissioner
seconded by Commissioner
duly put and carried,
IT IS ORDERED that County Judge Jon Lindsay be, and he is
hereby, authorized to execute for and on behalf of Harris County,
an Agreement between Harris County and The city of LaPorte in
connection with the construction of Underwood Road from Spencer
Highway to Fairmont Parkway, said Agreement being incorporated
herein by reference for all purposes as though fully set forth
herein word for word.
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