HomeMy WebLinkAbout2000-03-27 Regular Meeting and Public Hearing of La Porte City CouncilJ
MINUTES OF THE REGULAR MEETING AND PUBLIC HEARING
OF LA PORTE CITY COUNCIL
MARCH 27, 2000
1. CALL TO ORDER
The meeting was called to order by Mayor Norman Malone at 6:00 p.m.
Members of City Council Present: Councilpersons Guy Sutherland, Chuck Engelken,
Howard Ebow, Alton Porter, Peter Griffiths, Deotis Gay, Charlie Young, Jerry Clarke,
and Mayor Norman Malone.
Members of Council Absent: None
Members of City Executive Staff and City Employees Present: City Manager Robert T.
Herrera, Assistant City Attorney John Armstrong, Assistant City Manager John Joerns,
Assistant City Manager Jeff Litchfield, City Secretary Martha Gillett, Director of
Planning Doug Kneupper, Director of Parks and Recreation Stephen Barr, Director of
Public Works Steve Gillett, Director of Administrative Services Louis Rigby, Police
Chief Richard Reff, Assistant Finance Director Cynthia Alexander, City Manager's
Administrative Assistant Carol Buttler, Fire Chief Joe Sease, Tax Manager Kathy
Powell, Fire Suppression Supervisor Champ Dunham, Purchasing Agent Susan Kelley,
City Planner Brad Ellis, Sergeant Mike Edgmon, City Engineer Carlos Martinez,
Planning Coordinator Masood Malik, and Accounting Manager Kathy Hutton.
Others Present: Paul Martin, Sib Carpenter, Spero Pomonis, Nelda Edgmon, and a
number of citizens.
2. Reverend Floyd Foshee delivered the Invocation.
3. Council considered approving the minutes of the Regular Meeting on February 28,
2000.
Motion was made by Councilperson Sutherland to approve the minutes of the Regular
Meeting as presented. Second by Councilperson Griffiths. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Young, Clarke, and Mayor
Malone
Nays: None
Abstain: Non
Absent: Gay
4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND
TAXPAYERS WISHING TO ADDRESS COUNCIL.
No citizens wished to address Council.
Councilman Deotis Gay arrived at 6:10 PM.
City Council Minutes — March 28, 2000 — Page 2
5. PROCLAMATIONS/PRESENTATIONS
A. Mayor Malone and Police Chief Reff presented a watch to retiring Police CID
Sergeant Mike Edgmon in recognition of his years of service to the City of La
Porte.
6. Open Public Hearing — Mayor Malone opened the Public Hearing at 6:10 PM.
Review by Staff — City Planner Brad Ellis presented summary and recommendation
concerning amending chapter 106, section 106-521, table A — Industrial Uses, section
106-522, table B — Industrial Area Requirements, section 106-751, Shipping Containers,
and section 106-800, Landscaping, of the code of ordinances, as said sections pertain to
shipping containers.
Public Input —No public input.
Recommendation of Planning and Zoning/Staff — Planning & Zoning and Staff
recommend amendment to the Zoning ordinance related to the outside storage of shipping
containers
Close Public Hearing — Mayor Malone closed the Public Hearing at 6:30 PM.
7. Council considered approving an ordinance amending chapter 106, section 106-521, table
A — Industrial Uses, section 106-522, table B — Industrial Area Requirements, section
106-751, Shipping Containers, and section 106-800, Landscaping, of the code of
ordinances, as said sections pertain to shipping containers.
City Planner Brad Ellis presented summary and recommendation.
Assistant City Attorney read: ORDINANCE 2000-1501 -11 — AN ORDINANCE
AMENDING CHAPTER 106, SECTION 106-521, TABLE A — INDUSTRIAL USES,
SECTION 106-522, TABLE B — INDUSTRIAL AREA REQUIREMENTS, SECTION
106-751, SHIPPING CONTAINERS, AND SECTION 106-800, LANDSCAPING, OF
THE CODE OF ORDINANCES, AS SAID SECTIONS PERTAIN TO SHIPPING
CONTAINERS.
Motion was made by Councilperson Gay to approve ordinance 1501-II as presented by
Mr. Ellis. Second by Councilperson Griffiths. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke and Mayor
Malone.
Nays: None
Abstain: None
8. Council considered approving an ordinance authorizing an agreement between the City of
La Porte and the La Porte Development Corporation for sales and use tax retention.
Assistant City Manager Jeff Litchfield presented summary and recommendation.
i
City Council Minutes — March 28, 2000 — Page 3
Assistant City Attorney read: ORDINANCE 2000-2388 — AN ORDINANCE
APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF
LA PORTE AND THE CITY OF LA PORTE DEVELOPMENT CORPORATION, FOR
SALES AND USE TAX RETENTION; 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 Councilperson Engelken to approve ordinance 2000-2388 as
presented by Mr. Litchfield. Second by Councilperson Ebow. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
9. Council considered approving an ordinance authorizing issuance of $3,250,000 General
Obligation Bonds, Series 2000.
Assistant City Manager Jeff Litchfield presented summary and recommendation and
answered City Councils questions.
Motion was made by Councilperson Clarke to accept the recommendation from the
Financial Advisor. Second by Councilperson Engelken. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
Assistant City Attorney read: ORDINANCE 2000-2389 — AN ORDINANCE
AUTHORIZING THE ISSUANCE OF $3,250,000 CITY OF LA PORTE, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2000, AND ALL OTHER MATTERS
RELATED THERETO
Motion was made by Councilperson Ebow to approve ordinance 2000-2389 as presented
by Mr. Litchfield. Second by Councilperson Engelken. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
10. Council considered approving an ordinance authorizing issuance of $3,000,000
Certificates of Obligation, Series 2000.
Assistant City Manager Jeff Litchfield presented summary and recommendation.
Motion was made by Councilperson Clarke to accept the recommendation from the
Financial Advisor. Second by Councilperson Porter. The motion carried.
City Council Minutes — March 28, 2000 — Page 4
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
Assistant City Attorney read: ORDINANCE 2000-2390 — AN ORDINANCE
AUTHORIZING THE ISSUANCE OF $3,000,000 CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000, AND ALL OTHER MATTERS
RELATED THERETO
Motion was made by Councilperson Engelken to approve ordinance 2000-2390 as
presented by Mr. Litchfield. Second by Councilperson Griffiths. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
11. Council considered approving an ordinance establishing a Municipal Court Technology
Fund.
Assistant City Manager Jeff Litchfield presented summary.and recommendation and
answered City Council questions.
Assistant City Attorney read: ORDINANCE 2000-2391 — AN ORDINANCE OF THE
CITY OF LA PORTE, HARRIS COUNTY, TEXAS, ESTABLISHING A MUNICIPAL
COURT TECHNOLOGY FUND; PROVIDING FOR THE ASSESSMENT AND
COLLECTION OF A MUNICIPAL COURT TECHNOLOGY FEE; PROVIDING FOR
EFFECTIVE DATE; PROVIDING FOR EXPIRATION DATE.
Motion was made by Councilperson Young to approve ordinance 2000-2391 as presented
by Mr. Litchfield. Second by Councilperson Clarke. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
12. Council considered approving an ordinance authorizing the City Manager to execute an
agreement between owner and architect with DCW Architects, Inc. for analysis, design,
and inspection of roof replacement of three buildings and authorizing $37,000 to fund
said agreement.
Director of Planning Doug Kneupper presented summary and recommendation.
Assistant City Attorney read: ORDINANCE 2000-2392 — AN ORDINANCE
APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF
LA PORTE AND DCW ARCHITECTS, INC. TO PROVIDE PROFESSIONAL
ARCHITECTURAL SERVICES FOR THE REPLACEMENT OF ROOFS AT THE
0 •
City Council Minutes — March 28, 2000 — Page 5
SYLVAN BEACH PAVILION, POLICE DEPARTMENT, AND THE EMS
BUILDING; APPROPRIATING $37,000.00 TO FUND SAID CONTRACT; 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 Councilperson Young to approve ordinance 2000-2392 as presented
by Mr. Kneupper. Second by Councilperson Engelken. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
13. Council considered approving an ordinance which establishes a joint venture agreement
between the City of La Porte and the Glen Meadows section 4A Community
Improvement Association to provide a decorative lighting system for Glen Meadows
Park.
Director of Parks & Recreation Stephen Barr presented summary and recommendation.
Assistant City Attorney read: ORDINANCE 2000-2393 — AN ORDINANCE
APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF
LA PORTE AND THE GLEN MEADOWS SECTION 4A COMMUNITY
IMPROVEMENT ASSOCIATION REGARDING JOINT PARTICIPATION IN
INSTALLATION OF A DECORATIVE LIGHTING SYSTEM FOR GLEN
MEADOWS 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 Councilperson Sutherland to approve ordinance 2000-2393 as
presented by Mr. Barr. Second by Councilperson Griffiths. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
14. Council considered approving an ordinance approving which establishes an agreement
between the City of La Porte and the Reliant Energy/HL. &P. to provide a decorative
lighting system for Glen Meadows Park.
Director of Parks & Recreation Stephen Barr presented summary and recommendation.
Assistant City Attorney read: ORDINANCE 2000-2394 — AN ORDINANCE
APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF
LA PORTE AND RELIANT ENERGY/HL&P REGARDING IN INSTALLATION OF
A DECORATIVE LIGHTING SYSTEM FOR GLEN MEADOWS PARK; MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT;
City Council Minutes — March 28, 2000 — Page 6
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN
EFFECTIVE DATE HEREOF.
Motion was made b Cy ouncilperson Griffiths to approve ordinance 2000-2394 as
presented by Mr. Barr. Second by Councilperson Young. The motion carried.
Ayes: Sutherland, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor Malone.
Nays: None
Abstain: Engelken
15. Council considered approving an ordinance authorizing the City Manager to execute a
contract with Angel Brothers Enterprises, Inc. in the amount of $176,878.60 and further
authorizing $9,000.00 contingency for construction of the paving and drainage
improvements for Caniff Road.
Director of Planning Doug Kneupper presented summary and recommendation.
Assistant City Attorney read: ORDINANCE 2000-2395 — AN ORDINANCE
APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF
LA PORTE AND ANGEL BROTHERS ENTERPRISES, INC. FOR CONSTRUCTION
OF PAVING AND DRAINAGE IMPROVEMENTS FOR CANIFF ROAD;
APPROPRIATING $185,878.20 TO FUND SAID CONTRACT; 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 Councilperson Engelken to approve ordinance 2000-2395 as
presented by Mr. Kneupper. Second by Councilperson Griffiths. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
16. Council considered approving an ordinance authorizing the City Manager to execute a
contract with Angel Brothers Enterprises, Inc. in the amount of $150,789.60 and further
authorizing $7,600.00 contingency for construction of the South 141h and "H" Street
paving and drainage improvements.
Director of Planning Doug Kneupper presented summary and recommendation and
answered City Councils questions.
Assistant City Attorney read: ORDINANCE 2000-2394 — AN ORDINANCE
APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA
PORTE AND ANGEL BROTHERS ENTERPRISES, INC. FOR CONSTRUCTION OF
S. 14.. & "IT'STREET PAVING AND DRAINAGE IMPROVEMENTS;
APPROPRIATING $158,389.60 TO FUND SAID CONTRACT; MAKING VARIOUS
FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING
City Council Minutes — March 28, 2000 — Page 7
COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE
DATE HEREOF.
Motion was made by Councilperson Porter to approve ordinance 2000-2396 as presented
by Mr. Kneupper. Second by Councilperson Engelken. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
17. Council considered approving an ordinance authorizing the City Manager to execute a
contract with Patak Construction, Inc. in the amount of $135.000.00 and further
authorizing $6,750.00 contingency for construction of the City of La Porte Record
Storage Facility
Director of Planning Doug Kneupper presented summary and recommendation.
Assistant City Attorney read: ORDINANCE 2000-2397 — AN ORDINANCE
APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF
LA PORTE AND PATAK CONSTRUCTION, INC. FOR CONSTRUCTION OF CITY
OF LA PORTE RECORD STORAGE BUILDING; APPROPRIATING $141,750 TO
FUND SAID CONTRACT; 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 Councilperson Engelken to approve ordinance 2000-2397 as
presented by Mr. Kneupper. Second by Councilperson Gay. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
18. Council considered approving an ordinance authorizing the sale of reserve "A". section 1,
Lot 9, Block 1 to Lazean Terrell for $3,800.00
Purchasing Agent Susan Kelley presented summary and recommendation and answered
City Councils questions.
Assistant City Attorney read: ORDINANCE 2000-2398 — AN ORDINANCE
AUTHORIZING AND APPROVING THE SALE OF RESERVE "A", IN BLOCK 1,
OF SPENWICK PLACE, SECTION 1 HARRIS COUNTY, TEXAS, TO THE
HIGHEST BIDDER FOR CASH; AUTHORIZING EXECUTIVE OF A SPECIAL
WARRANTY DEED; FINDING COMPLIANCE WITH THE OPEN MEETINGS
LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
City Council Minutes — March 28, 2000 — Page 8
Motion was made by Councilperson Engelken to approve ordinance 2000-2398 as
presented by Ms. Kelley. Second by Councilperson Ebow. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
19. Council considered approving an ordinance authorizing the City Manager to sign consent
to assignment of the TML-GBRP to TME-IEBP.
Director of Administrative Services Louis Rigby presented summary and
recommendation.
Assistant City Attorney read: ORDINANCE 2000-2399 — AN ORDINANCE
APPROVING AND AUTHORIZING A CONSENT TO ASSIGNMENT FROM THE
TEXAS MUNICIPAL LEAGUE GROUP BENEFIT RISK POOL TO THE TEXAS
MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL;
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 Councilperson Engelken to approve ordinance 2000-2399 as
presented by Mr. Rigby. Second by Councilperson Clarke. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
20. Council considered authorizing the City Manager to execute a Utility Extension
Agreement with John Frantz.
Director of Planning Doug Kneupper presented summary and recommendation and
answered the City Council's questions.
Motion was made by Councilperson Ebow to approve Utility Extension Agreement as
presented by Mr. Kneupper. Second by Councilperson Engelken. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
21. Council considered authorizing the City Manager to sign an agreement with HCC to
provide Stop Loss Insurance, at an annual cost of $107,319.00.
Director of Administrative Services Louis Rigby presented summary and
recommendation and answered City Council questions.
City Council Minutes — March 28, 2000 — Page 9
Motion was made by Councilperson Clarke to approve agreement as presented by Mr.
Rigby. Second by Councilperson Ebow. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
22. Council considered approving the extension of Type I and Type IV solid waste disposal
contracts with Waste Management.
Director of Public Works Steve Gillett presented summary and recommendation and
answered City Council questions.
Motion was made by Councilperson Porter to approve agreement as presented by Mr.
Gillett. Second by Councilperson Sutherland. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
23. Consent Agenda
A. Consider awarding bid for the supply of concrete to Pioneer South Central, Inc.,
low bidder meeting specifications — S. Gillett.
B. Consider awarding bid for replacement of grit separator to Schloss Engineered
Equipment — S. Gillett.
C. Consider awarding bid for on -site crushed concrete to Cherry Crushed Concrete,
low bidder meeting specifications — S. Gillett.
D. Consider awarding bid of annual air conditioningtheating maintenance and repair
contract to Beltway Air Conditioning — S. Kelley
Councilperson Engelken made a motion to vote on all Consent Agenda items together
and approve items presented. Second by Councilperson Young. The motion carried.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
24. ADMIMSTRATIVE REPORTS
City Manager Robert T. Herrera reminded Council of the following events:
A. City Holiday — Good Friday, Friday, April 21, 2000.
City Council Minutes - March 28, 2000 - Page 10
B. Sylvan Beach Day - Saturday, April 29, 2000.
C. Library bid opening - Tuesday, March 28, 2000, 2:00 PM.
D. Highway 146 Meeting, Lou Lawler Seafarers Center - April 3, 2000, 1:30 PM.
E. Training Development Program - March 28, 2000
25. COUNCIL ACTION
Councilpersons Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke,
and Mayor Malone brought items to Council's attention.
26. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN
MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, AND 551.084,
TEXAS GOVERNMENT CODE, - (CONSULTATION WITH ATTORNEY,
DELIBERATION REGARDING REAL PROPERTY, DELIBERATION
REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL
MATTERS, CONFERENCE WITH EMPLOYEES DELIBERATION
REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING
EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION)
A. 551.074 (Personnel Matter)
Meet with City Attorney and City Manager to discuss personnel matter - Joe
Sease.
Council retired into Executive Session at 8:16 PM under Section 551.071 (Consultation
with City Attorney)
Council Adjourned Executive Session at 9:20 PM.
Council returned to the table at 9:21 PM, with no action taken.
27. ADJOURNMENT
There being no further business to come before Council, the Regular Meeting was duly
adjourned at 9:22 PM.
Respectfully submitted,
Martha Gillett
City Secretary
Passed and approved on this 10 day of April 2000.
NNrm al r - �
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(5
Agenda Date Requested: March 27, 000
Requested By: Doug Kneuppe Department: Planning
Report Re lution XXX Ordinance
Exhibits: 1. Ordinance 1501-
2. Exhibits
Summary & Recommendation
At their October 11, 1999 meeting the City Council requested the Planning and Zoning Commission to assess and
make recommendations, regarding zoning ordinance requirements related to the outside storage of shipping
containers. On December 16, 1999 staff presented several options and requested further direction from the Planning
and Zoning Commission. During its February 17, 2000 meeting the Commission, held a public hearing to receive
citizen comments regarding proposed zoning ordinance changes related to the outside storage of shipping containers.
At the February 17, 2000 meeting, the Planning and Zoning Commission approved the following recommendations:
a) Outside storage of shipping containers, as a principle use should be allowed only in Heavy Industrial (Ill)
zoning districts.
b) Use of shipping containers, as accessory buildings should be eliminated.
c) The use of shipping containers, as temporary storage facilities at constructions sites would be allowed in all
zoning districts with the exception of the residential districts (R-1, R-2, R-3 and MH).
d) The setbacks for the outside storage of shipping containers will be similar to those established for Heavy
Industrial (HI) with fifty (50) foot front setbacks, fifty (50) foot rear setbacks, and thirty (30) foot side setbacks.
When, the site is adjacent to residential zones the setbacks will be 100-foot setback front, 150-foot rear setback
and 150 foot side setback.
e) Landscaping/screening for shipping container facilities.
(1) The property owner or tenant shall provide screening. This will be accomplished in one of three ways:
a Leave in place existing trees, vegetation, underbrush, etc. to provide a thorough, continuous and
effective opaque visual screening of the shipping container development.
b Construct earthen berms with a combination of trees, shrubs, and ground cover that after three (3)
years will be at least twenty (20) feet in height and creates a continuous visual screen.
c Develop a screening plan that would be approved by the City that includes a combination of trees,
shrubs, and ground cover that after three years will be at least twenty (20) feet in height and creates a
continuous visual screen.
(2) The property owner or tenant will provide screening along the frontage of the site and along the side yards
for a distance of fifty (50) feet. In the event that the site is adjacent to a commercial or residential use, the
screening shall be required for the entire length of the adjacent yard area.
(3) All required screening shall be adjusted away from overhead power lines to allow for full maturity of the
trees without unnecessary trimming or topping of the trees.
1) Shipping containers will be allowed to be stacked to a height of thirty-six (36) feet or four (4) shipping
containers.
g) A `pyramid' appearance shall be applied to the frontage area only. The initial row shall not exceed two (2)
containers in height, with each successive interior row gaining one container in height to a maximum of four (4)
stacked containers. For the sides beyond the front area the `pyramid' appearance shall not be applied.
The above mentioned recommendations promote a more visually appealing appearance for the business engaged in
outside storage of shipping containers. This will enhance the quality of the community through the establishment of
criteria and standards identified by these amendments.
Action Required by Council Consider approval of an ordinance regarding amendment to the zoning ordinance
related to the outside storage of sluj pigg containers.
Z oc>
Robert T. Herrera Date
City Manager
ORDINANCE NO. 1501-TT-
AN ORDINANCE AMENDING CHAPTER 106, SECTION 106-521, TABLE A -
INDUSTRIAL USES, SECTION 106-522, TABLE B-INDUSTRIAL AREA
REQUIREMENTS, SECTION 106-751, SHIPPING CONTAINTERS, AND SECTION 106-
800, LANDSCAPING, OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE,
AS SAID SECTIONS PERTAIN TO SHIPPING CONTAINERS; PROVIDING THAT ANY
PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED
GUILTY OF A MISDEMEANOR AND SHALL UPON CONVICTION BE FINED A SUM OF
NOT MORE THAN TWO THOUSAND DOLLARS ($2,000.00) FOR EACH VIOLATION;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, PROVIDING A SEVERA
BILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF LA PORTE:
SECTION 1. The City Council of the City of La Porte hereby finds, determines and
declares that heretofore, tomtit, on the 17 day of February, 2000, at 6:00 p.m., a public
hearing was held before the Planning and Zoning Commission of the City of La Porte,
Texas, pursuant to due notice, to consider the question of the possible amendment of the
Zoning Ordinance as herein described. There is attached to his Ordinance as Exhibit W,
and incorporated by reference herein and made a part hereof for all purposes, the
publisher's affidavit of publication of notice of said hearing.
SECTION 2, The City Council of the City of La Porte is in receipt of the written
recommendations of the City of La Porte Planning & Zoning Commission, by letter dated
March 15, 2000, a true copy of which letter is attached hereto as Exhibit "B," and
incorporated by reference herein, and made part hereof for all purposes.
SECTION 3. The City Council of the City of La Porte hereby finds, determines and
declares that on the 27t' day of March, 2000, a public hearing was held before the City
Council of the City of La Porte, Texas, pursuant to due notice, to consider the
recommendation of the City of La Porte Planning and Zoning Commission. There is
I
ORDINANCE NO. 1501=1i-
PAGE 2
attached to this Ordinance as Exhibit "Co, and incorporated by reference herein and made
a part hereof for all purposes, the publisher's affidavit of publication of notice of said
hearing.
SECTION 4L The City Council of the City of La Porte hereby finds, determines and
declares that all prerequisites of law -have been satisfied, and hereby determines and
declares that the amendments to Sections 106-521, Table A Industrial Use, and 106-522,
Table B-Industrial Area Requirements, 106-751, Shipping Containers, and 106-800,
Landscaping, of the Code of Ordinances of the City of La Porte are desirable and in
furtherance of the goals and objectives stated in the City of La Porte's comprehensive
plan.
SECTION 5. Section 106-521 of the Code of Ordinances of the City of La Porte, Texas is
hereby amended to read as follows, to -wit:
"DIVISION 4. INDUSTRIAL DliTRICT REGULATIONS
Subdivision L. Generally
Sec. 106-521. Table A, industrial uses.
(a) Table A, industrial uses.
P (ABC) - Permitted uses (subject to designated criteria established in section 106-523).
P - Permitted uses.
A - Accessory uses (subject to requirements of section 106-741).
C - Conditional uses (subject to requirements of sections 106-216 through 106-218 and
designated criteria established in section 106-523).
* - Not allowed.
• •
ORDINANCE NO. 1501Z�
PAGE 3
Uses (SIC Code #)
Zones
Bl Ll HI
All uses permitted or accessory in the GC
zone, except residential
P
P
P
All uses conditional
C
C
C
in the GC zone,
except residential
Nonmanufacturing Industries:
Adult oriented business
*
P(G)
Air transportation (451-468)
P
P
P
General contractors, heavy construction
P
P
P
(161, 162, 1541)
Highway transportation terminal and ser-
P
P
P
Vice facilities (417)
Motor freight transportation and
-
P
P
And warehousing (421,423)
Farm product warehousing and storage
P
P
(4221)
Public warehousing (4222--4226)
P
P
P
Railroad transportation (401)
P
Shipping container, or fabricated plate work
(3443)
Storage inside
P(ACDE)
P(ACDE)
P
Storage outside (refer to Section 106444(b))
'`
P(ACDE)
Wholesale trade:
Durable goods —light (502, 504, 507, 5082,
P
P
P
5087, 5094)
ORDINANCE NO. 1501=
PAGE 4
Uses (SIC Code #)
Zones
BI
LI
HI
Durable goods —medium (501)
P
P
P
Durable goods —heavy (503, 5051, 5082—
*
C
P
5085, 5088)
Durable goods —heavy (5052, 5093)
*
*
P
Wholesale trade:
Nondurable goods --light (511-514, 518)
P
P
P
Nondurable goods —medium (5172, 5191—
C
P
P
5199)
Nondurable goods —heavy (515, 516, 5171)
*
P
Manufacturing Industries. -
Chemicals and allied products (282-285)
*
P(ACDE)
P
Electrical and electronic equipment
and supplies
Light (361-365, 367)
P(ACDE)
P(ACDE)
P
Medium (361, 366,
P(ACDE)
P(ACDE)
P
369)
Fabricated metal products and machinery
Light (341-345, 358, 3592) P(ACDE) P(ACDE) P
Medium (3493, 3498, 351-353, 356) P(ACDE) P
Heavy (346, 347, 354, 355, 357) P(ACDE) P
Heavy (348) * P
Food and kindred products
Light (202, 205, 2065-2067) P(ACDE) P(ACDE) P
ORDINANCE NO. 1501_Tl
PAGE 5
Uses (SIC Code #)
Zones
BI
L1
HI
Medium (2086, 2087, 2092-2099)
C
P(ACDE)
P
Heavy (201, 203, 204, 2062, 2063; 207,
*
C
P
2082-2085)
Leather and leather products (311-319)
C
P(ACDE)
P
Welding shops (7692)
P(ACDE)
P(ACDE)
P
Lumber products, furniture and fixtures
Light (251-259)
P(ACDE)
P(ACDE)
P
Medium (243-245)
C
P(ACDE)
P
Heavy (249)
C
P
Measuring, analyzing and controlling
P(ACDE)
P(ACDE)
P.
' Instruments (381-387)
Miscellaneous manufacturing
_ P(ACDE)-
P(ACDE)
P
(391- 396)
Machine shops (3599)
P(ACDE)
P(ACDE)
P
Miscellaneous manufacturing industries
P(ACDE)
P
(3991-3995)
Off -premises freestanding signs
See article VII of this chapter
On -premises freestanding signs
See article VII of this chapter
Paper and allied products (265-267)
*
P
Printing and publishing (271-279)
P(ACDE)
P(ACDE)
P
Rubber and miscellaneous plastics (301,
C
P
302, 304, 306, 307)
Stone, clay, glass and concrete (321-325,
C
P
3261, 327-329)
ORDINANCE NO. 1501-'-TT-
PAGE 6
Uses (SIC Code #)
Zones ; B! Ll HI
Tank truck cleaning P
Textile mill, and finished products
Light (224, 225, 231-239) P(ACDE) P(ACDE) P
Medium (222, 223, 226, 229) P(ACDE) P
Tobacco manufacturers (211-214) P(ACDE) P
Loading berths at the front or sides of C C C
buildings adjacent to R.O.W.
Industrial PUD (refer to section 106-636) C C C
Facilities in excess of height restrictions * C
imposed in section 106-522
Unlisted uses, similar to uses listed above C C C
(b) Interpretation and enforcement Property uses.- except as provided for by
section 106-521(a), Table A, are prohibited and constitute a violation of this chapter.
(c) Footnotes. All permitted uses in industrial zones must meet the following
minimum performance standards. If requested by the enforcement officer, all
applications for building permits must include a certification from a registered engineer
that verifies compliance with these performance standards. Where applicable, all
permitted uses in industrial zones must meet and be in compliance with the appropriate
federal, state, or local regulations.
A. Lighting and glans. Any lighting used shall be arranged so as to deflect light
away from any adjoining residential zone or from public streets. Direct or
sky -reflected glare, where from floodlights or from high temperature
processes such as combustion or welding shall not be directed onto any
adjoining property. The source of lights shall be hooded or controlled in some
manner so as not to light adjacent property. Bare incandescent light bulbs
shall not be permitted in view of adjacent property or public right-of-way, Any
light or combination of lights which cast light on a public street shall not
exceed one footcandle (meter reading) as measured from the centerline of
such street. Any light or combination of lights which casts light on residential
property shall not exceed 0.4 footcandles (meter reading) as measured from
such property.
ORDINANCE NO. 1501=1:3Z
PAGE 7
B. Radiation and electrical emissions. No activities shall be permitted that emit
dangerous radioactivity beyond enclosed areas. There shall be no electrical
disturbance adversely affecting the operation at any point of any equipment
other than that of the creator of such disturbance.
C. Smoke. The emission of smoke by any use shall be in compliance with and
regulated by the appropriate federal, state or local agency.
D. Dust or other particulate matter The emission of dust, fly ash or other
particulate matter by any use shall be in compliance with and regulated by the
appropriate federal, state or local agency.
E. Odors. The emission of odor by any use shall be in compliance with and
regulated by the appropriate federal, state or local agency.
F. Explosives. No activities involving the storage, utilization, or manufacture of
materials or products such as TNT or dynamite which could decompose by
detonation shall be permitted except such as are specifically licensed by the
city council.
G. Noise. All noise shall be muffled so as not to be objectionable due to
intermittence, beat frequency or shrillness and as measured at any property
line, shall not exceed the following intensity in relation to sound frequency:
Octave Band Frequency
Maximum Sound L-evels - Decibels
H
Cycles per
Residential
Second
Lot Line
District Boundary
20 to 75
78
63
75 to 150
74
59
150 to 300
68
55
300 to 600
61
51
600 to 1,200
55
45
1,200 to 2400
49
38
2,400 to 4800
43
31
Above 4,800
41
25
Impact Noise
80
55
Between the hours of 10:00 p.m. and 6:00 a.m. the permissible sound levels
beyond residential district boundaries (both Column II and Impact) shall be. six
decibels less than shown above.
ORDINANCE NO. 1501-:T;
PAGE 8
In distances where it is determined that a proposed land use may generate a
level of noise that will impact on surrounding land uses, the planning and
zoning commission and city council may require that efforts to reduce the
potential noise impact be undertaken. These efforts may include screening,
landscaping and site planning techniques.
(Ord. No. 1501 U, § A(art. B), 9-23-96)
Cross reference -Sexually oriented businesses, § 90-31 et seq.A
SECTION 6. Section 106-522 of the Code of Ordinances of the City of La Porte, Texas is
hereby amended to read as follows:
"Sec. 106-522. Table B, industrial area requirements.
(a) Table B, industrial area requirements.
Uses
BI business -industrial park;
all permitted or conditional
LI light industrial district;
all permitted or conditional
HI heavy industrial district;
all permitted or conditional
Loading docks
Outside storage
Shipping Containers
On- and off -premises free-
standing signs
"Minimum
Maximum
Landscaping
Lot
Requirements
Coverage
(percent)
(percent)
6
50
6
6
N/A
N/A
6
Minimum
Yard
Setbacks
F.R.S.
1,3,5
(feet)
50-40-30
70 20-10-10
30 50-50-30
Adjacent to
Residential
Minimum
Yard
Setback
F.R.S.
Maximum
2,5
Height
(feet)
(feet)
50-40-30
45
30-50-50 45
100-150-150 456
Same as N/A
principal
use plus
130 ft.
Same as
principal
use
NIA 50-50-30 100-150-150
See article VII of this chapter
N/A 130-130-130
N/A 20-10-5
Freestanding on -premises See article VII of this chapter
signs located in controlled ac-
cess highway corridors
Section 106-
444(b)
367'
ORDINANCE NO. 1501-TT
PAGE 9
(b) Footnotes.
1. A minimum landscape setback of 20 feet will be required adjacent to all
designated conservation areas. Buildings, parking areas, loading docks,
outside storage, and refuse containers will not be allowed in such setback
areas. These areas are to be landscaped with trees, shrubs, and ground cover,
with a planting plan required to be submitted and approved by the enforcement
officer. Required landscaping must be maintained by the property owner and/or
occupant.
2. No buildings, parking areas, loading docks, outside storage, or refuse
containers will be allowed in such setback areas. These areas are to be
landscaped with trees, shrubs and ground cover, with a planting plan required
to be submitted and approved by the enforcement officer.
3. Side and rear yard setbacks may be reduced to zero if adjacent to railroad
right-of-way, or rail service spurs.
4. See article V, division 4 of this chapter for additional requirements.
5. No sign shall be located in a required sight triangle in such a manner as to
obstruct traffic visibility at a level between three feet and six feet as measured
above adjacent road grade.
6. Height restrictions may be modified as a Conditional Use, provided that no
modification of height restrictions may occur adjacent to property zoned
residential or commercial. Provided further that no modification shall be
permitted if said modification would pose a danger to life or property.
7. Shipping containers are permitted to be stacked up to four (4) containers
in height.
8. Shipping containers will be stacked in a 'pyramid' appearance along the
front of the site. The initial row shall not exceed two (2) containers in
height, with each successive interior row gaining one container in height
to a maximum of four (4) containers in height. For the sides beyond the
front area the 'pyramid' appearance shall not be
required.
(Ord. No. 1501-X, § 5, 12-16-96; Ord. No. 1501-BB, § 6, 9-15-98)"
SECTION 7. Section 106-751, Shipping Containers, of the Code of Ordinances of the City
of La Porte, Texas is hereby amended to read as follows:
0 •
ORDINANCE NO. 1501 T1
PAGE 10
"Sec.106-751. Shipping Containers.
Shipping containers may be used as temporary material storage facilities
on construction sites in all zoning districts except residential (11-1, R-2, and R-3)."
SECTION 8. Section 106-800, Landscaping, of the Code of Ordinances of the City of La
Porte, Texas is hereby amended to read as follows:
"Sec.106-800.- Landscaping
(a) Landscaping is required in percentages specified in sections 106-333,
106-443, and 106-522. Site plan and/or separate plans shall be submitted in
conjunction with building permit applications. Approval of landscaping requirements is
a condition of building permit approval. Total area of required landscaping shall be
computed by the following method:
(1) Total developed site area shall be computed.
(2) Total area of roofed over improvements shall be computed and then
deducted from the developed site area.
(3) The area of required landscaping shall be based on the total remaining
developed site are.
(b) Public right-of-way may be used for landscaping purposes. However,
right-of-way used for landscaping will not contribute towards a total
required landscaping percentage for parking and open -space areas.
Landscaping on public property or easements is at owner's risk and
subject to the requirements of section 106-794.
(c) Landscaping plans shall be developed using the following criteria:
(1) Location.
a. Required landscaping shall be located in the front and side yard.
b. Landscaping located in sight triangles shall be maintained in a
manner that maintains an area of clear visibility between three and
six feet as measured vertically from the adjacent prevailing grade.
(2) Types of plants and materials. Grass, ground cover, flowering and non-
flowering plants, shrubs and trees, wood, timber, stone, fountains, and
ponds may be used for required landscaping.
•
ORDINANCE NO. 1501 1`i-
PAGE 11
(3) Maintenance. Required. landscaping must be maintained by the property
owner and/or occupant.
(d) Landscaping/screening for shipping container facilities.
(1) The property owner or tenant shall provide a natural screening. This
will be accomplished in one of three ways.
a. Leave in place existing trees, vegetation, underbrush, etc. to
provide a thorough, continuous and effective opaque visual
screening of the shipping container development.
b. Construct earthen berms with a combination of trees, shrubs,
and ground cover that after three (3) years will bet at leasat
twenty (20) feet in height and creates a continuous visual
screen.
C. Develop a screening plan that would be approved by the City
that includes a combination of trees, shrubs, and ground
cover that after three (3) years will be at least twenty (20) feet
in height and creates a continuous visual screen
(2) The property owner or tenant will provide screening along the
frontage of the site and along the side yards for a distance of fifty
(50) feet. In the advent that the site is adjacent to a commercial or
residential use, the screening shall be required for the entire length
of the adjacent yard area.
(3) All required screening shall be adjusted away from overhead power
lines to allow for full maturity of the trees without unnecessary
trimming or topping of the trees."
SECTION 9. Any person, as defined in Section 1.02(27) Texas Penal Code, who shall
violate any provision of this Ordinance, shall be deemed guilty of a misdemeanor and
upon conviction shall be punished by a fine not to exceed Two Thousand Dollars
($2,000.00). Each day a violation of this ordinance shall continue shall constitute a
separate violation.
SECTION 10. If any section, sentence, phrase, clause, or any part of any section,
sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such
•
ORDINANCE NO. 1501=Z'T.
PAGE 12
invalidity shall not affect the remaining portions of this Ordinance, it is hereby declared to
be the intention of the City of Council to have passed each section, sentence, phrase, or
clause, or part thereof, irrespective of the. fact that'any other section, sentence, phrase, or
clause, or part thereof, may be declared invalid.
SECTION 11. 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,
Chapter 551, Texas Government Code; 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.
SECTION 12. This Ordinance shall become effective fourteen (14) days after its passage
and approval. The City Secretary shall give notice to the passage of the notice by causing
the caption to be published in the official newspaper of the City of La Porte'at least twice
within ten (10) days after the passage of the Ordinance.
PASSED AND APPROVED THIS THE aI DAY OF VAf CW , 2000.
CITY OF LA PORTE
•
11
ORDINANCE NO. 1501-��
PAGE 13
ATTEST:
Cfty Secretary
APPROVED:
C
1200 Hwy. 146
Suite 150
P.O. Box 1414
La Porte, Texas 77571
`voice
Citv of La Porte
County fo Harris
State of Texas
281-471-1234
Fax: 281-471-5763
E-mail: baysun@swbell.net
re Sun
cc 1947'
Before me the undersigned authority, on this date
came and appeared Karolyn Kellogg, a duly authorized
representative of The Bayshore Sunk a semi -weekly
newspaper published and generally distributed in the
City of la Porte, Harris County, Texas, and who after
being duly sworn, swears the attached notice was
published in The Bayshore Sun dated 01/30/2000
F i u 1 tcv,,�
;F a
Karolyn Kellogg
Authorized Representative
Sworn and subscribed before me this ?' day of
'71 2000.
Sandra E. Btsmgarner
Notary Public
Harris County, Texas
t�iei��e�c�..r✓.r.�c�rrrrf.�e�.�vrrra.�
SANDRA E. BUMGARNER
NOTARY PUBUC, STATE OF TEXAS
MY COMMISSION EXPIRES
' oFt FEB.19, 2002
OT/lllldCl.�l.III�,ICI"lllll././
THE STATE OF TEXAS
COUNTY OF HARRIS.
CITY OF LA PORTE
OF PUBLIC
with th ns
ion 10 1' .:fidd&de
of Ordles a City &nid
of La Porte„ ,.Mb the provi-
sions of � the Texas Local
Government Code, notice
is hereby given that the La
Porte, Planning and Zoning
Commission will conduct a
public hearing at 6:00'P:M.
on the 17th day'of. Febru-
ary;. 2000, in the Council j
Chambers of the. City Hall,
604 West Fairmont Park-
way, La Porte, Texas: The
purpose of this hearing is
tb consider amendments
to the Zoning Ordinance of
the City of La Porte, per-
taining to location and/ or
outside storage of shipping
containers; and to consid-
er amendments to -Zoning
Ordinance:• concerning re-
quirements established for.
all . outside . storage of
equipment and other me-.
terials. '
A, regular meet-
ing of 'the Planning• and .
Zoning Commission will
follow the public hearing `
for the purpose of - acting .
upon the public hearing.
items. and to conduct other
matters pertaining tb the
Commission.
Citizens wishing `
to address the Commis-
sion pro,or con during the
Public. Hearing will be re-
quired to sign in before the
meeting is convened.
CITY OF LA PORTE
Martha Gillett
City Secretary
City of La Porte
Established 1892
March 15, 2000
Honorable Mayor Norman Malone and City Council
City of La Porte
Dear Mayor Malone:
The La Porte Planning and Zoning Commission, during its February 17, 2000,
meeting, considered a proposed amendment to Chapter 106 of the Code of
Ordinances regarding the outside storage of shipping containers.
The Planning and Zoning Commission has, by a unanimous vote, recommended
that City Council consider approving this amendment to the Code of Ordinances.
Respectfully Submitted,
G�
Be y T. Waters
Planning and Zoning Commission, Chairperson
c: Robert T. Herrera, City Manager
John Joerns, Assistant City Manager
John Armstrong, Assistant City Attorney
Planning and Zoning Commission
P.O. Box 1115 0 La Porte, Texas 77572-1115 • (713) 471-5020 tEW61 r B '
0
1200 Hwy. 146
Suite 150
P.O. Box 1414
La Porte, Texas 77571
The B
`Voice
City of La Porte
County fo Harris
State of Texas
281-471-1234
Fax: 281-471-5763
E-mail: baysun@swbell.net
re Sun
cc 1947'
Before me the undersigned authority, on this date
came and appeared Karolyn Kellogg, a duly authorized
representative of The Bayshore Sun! a semi -weekly
newspaper published and generally distributed in the
City of La Porte, Farris County, Texas, and who after
being duly sworn, swears the -attached notice was
published in The Bayshore Sun dated March 12 , 2 0 0 0
Karolyn Kellogg
Authorized :Representative
Swo-= and subscribed before ate this /a rt day of
Ya.�i�— , 2000.
�.irirer
SANDRA E. BUMGARNER
NOTARY PUaf.IC, STATE OF -TEXAS
ay ,a MY COMMISSION EXPIRES
PS FEB. 19, 2002
11Jll./�C/rlflllfll
Sandra E . Bl aMgarner
Notary Public
Harris County, Texas
THE STATE OF TEXAS
COUNTY WHARRIS
CITY OF LA•P.O.RTE
OF
n . accordance
with pro of Sec-
tio 06Ath'Texas
,-of e
of • rdlns. i City
of La Poand the So'
sions of Local
Government Code, notice
Is hereby given that the La
Porte City Cou.-ricif will con-
dGct - a publics • hearing • at
6:00•'P.M: orr'8ae47th day
of - March, • 2000, in the
Council Chambers of the
City. Hall, 604 West Fair-
mont Parkway, LaPorte,
Texas. The purpose of this
hearing is to consider
amendments to the Zoning
Ordinance of the City of La
Porte, pertaining. to loca-
tion and' / or outside stor-
age of shipping. containers:
and -'to consider• .amend-
ments- to the Zoning.. Ordi-
nancei-conceming: require=
menu• established .for all
outside• stotage of • equip-
ment•and *or masterials.
A regular: rpRot-
Ing of • Clty. Council wilf161-
low. the: public, hearing-Ior
the purpose of acting upon
the public : hearihg • items
and to ccnduot. gther mat-
ters pertaining to the
Council.
Citizens wishing
to. address the Council pro•
or con during the- Public
Hearing will be required to
sign in before the meeting.
is convened.
CITY OF LA PORTE•-
•Martha Gillett :..
City Secretary
(WRIT -7
I I I I
I I 150' SETBACK I of
I F F-
uu
Q ( AREA FOR I a WI
IW SHIPPING �(
W IN ml
M WI CONTAINERIW
o STORAGE a I °I
tu
ENTI 100' ADJACENT RESIDENTIAL SETBACK
I .. I
I�i I I
I L - 50' -SETBACK (BLDGS. AND CONTAIMERSL
FRONT
STREET
SHIPPING CONTAINER
SETBACKS
0
I I
I I
I I
I I
Ile U
o
a
I I
I
(_—_--_ 50'SETBACK _ _-_-i
FRONT
S T R E E T
SHIPPING CONTAINER
SCREENING
Q
36' AND 4 HIGH 4 4
3313 SIDE EM OF MIU SETBACK
12212121
Ill1 mil
W
z
J
Q 0
m �
H CL
H
u
Z
U-
36' AND 4 HIGH
F1 4
3 �� SIDE YIEWAT BEAD SEiDADK
2
1
W
z
Q �
m O
W CL
L
SHIPPING CONTAINER
STACKING
REQU@T FOR CITY COUNCIL AGENDA ITE•
AGENDA DATE 3/27/00 REQUESTED BY Jeff Litchfield, Finance Director/ACM
REPORT; RESOLUTION; XX ORDINANCE;
Attachment: Long Range Projection for the Development Corporation
At tonight's meeting, we will accept bids for the sale of $3 million in Certificates of Obligation.
Funds from the Section 4B % Cent Sales Tax will be used to retire the bonds. The La Porte
Economic Development Corporation oversees the disbursement of the Section 4B'/Z Cent Sales
Tax and has approved an agreement whereby future sales tax revenues will be pledged to the
City for the retirement of the debt.
Tonight, we are asking Council to approve an ordinance that accepts the contract.
ACTION REQUIRED BY COUNCIL:
Approve Ordinance authorizing an agreement between the City of La Porte and the La Porte
Development Corporation for the use of sales tax revenues to be used to pay for Certificates of
Obligation that were issued to finance the construction of a community library.
FUND N/A ACCT NUM:
APPROV OR CITY COUNCIL AGENDA
Rff . FrERAERA, CITY MANAGER
FUNDS AVAILABLE:
.3 J, 2-3 X,
DATE
ORDINANCE NO. 2000- A3 S `3
AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF
LA PORTE AND THE CITY OF LA PORTE DEVELOPMENT CORPORATION, FOR SALES AND
USE TAX RETENTION; 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.
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, Chapter 551, Texas Government Code; 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.
Section 3 This Ordinance shall be in effect from and after its passage and approval.
PASSED AND APPROVED this the 27th day of March, 2000.
CITY .7 LA PORTE, TEXAS
or an Malone, Mayor '
ATTEST: �A
J
' tiC
Martha Gille t, City Secretary
APPROVED:
Knox W. Askins, City Attorney
Beg Working Capital Balance
Plus Revenues:
Sales Tax
Interest
Total Revenue
Less Expenses:
Operations
Projects
$3 issue in 99-00
$4 issue in 00-01
$5 issue in 01-02
Total Expenses
City of La Porte, Texas
Long Range Projection for the La Porte Development Corporation
Section 41B 112 Cent Sales Tax
Method 1 - Issue Debt for Projects
Actual
Projected
Projected
Projected
Projected
Projected
Projected
Projected
Projected
Projected
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
0
45,706
875,817
881,633
968,248
705,660
496,705
343,346
247,608
211,585
50,484
900.000
922.500
945,563
969.202
993,432
1,018,267
1.043,724
1,069,817
1,096,563
222
21,361
21,503
23,616
17,211
12,115
8,374
6,039
5,161
5,791
50,706
921,361
944,003
969,178
986,413
1,005,546
1.026,642
1,049.763
1.074,978
1,102,354
•
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
0
0
500,000
0
0
0
0
0
0
0
0
86,250
318,188
309,563
300,938
292.313
283,688
275,063
266,438
257,813
0
0
115,000
424,250
412,750
401.250
389,750
378,250
366,750
355.250
0
0
0
143,750
530,313
515,938
501,563
487,188
472,813
458.438
5,000
91,250
938,188
882,563
1,249,001
1,214,501
1,180,001
1,145,501
1,111,001
1,076,501
Ending Balance 45,706 875,817 881,633 968,248
Assumptions:
Annual growth of the 1/2 cent Sales Tax will be at 2.5% per year.
Interest will be earned at 5% on average balance
A debt issue of $3 million will occur in March 2000
A debt issue of $4 million will occur in March 2001
A debt issue of $5 million will occur in March 2002
If these assumptions hold true, it will be about 2009 before another debt issue could be supported.
Debt issues are based on a 20 year term and an average interest rate of 5.75%.
The $3 million issue in March 2000 is targeted for the Community Library.
The $4 million issue in February 2001 will probably be for the Bay Area Boulevard extension
705,660 496,705 343,346 247,608 211,585 237,438
Projects for the $500.000 in FY 2000-2001 and the $5 million issue in February 2002 have not been identified.
E
•
•
AUSTI N
BRUSSELS
DALLAS
HOUSTON
LONDON
LOS ANGELES
Moscow
NEW YORK
PHILADELPHIA
WASHINGTON, D.C.
Ms. Martha Gillett
City of La Porte
604 West Fairmont
LaPorte, TX 77571
AKIN, Gump, STRAUSS, HAUER & FELD, L.L.P.
ATTORNEYS AT LAW
A REGISTERED LIMITED LIABILITY PARTNERSHIP
INCLUDING PROFESSIONAL CORPORATIONS
300 CONVENT STREET
SUITE 1500
SAN ANTONIO, TEXAS 78205
(210) 281-7000
FAX (210) 224-2035
Direct Dial: (210) 281-7004
March 23, 2000
Re: City of La Porte, Texas General Obligation Bonds, Series 2000
City of La Porte, Texas Certificates of Obligation, Series 2000
Dear Martha:
Enclosed are the documents for the captioned transactions. I believe everything is clearly marked
where signatures and seals are needed. The only oddity 1 might point out is that the Official Statement
Certificates (one for each transaction) are to be signed by Mr. Herrera.
We still need the following documents for the Certificates of Obligation:
1. Certificates for the Resolution authorizing publication of notice of intention to issue and
2. Affidavits of Publication.
These were sent to Jeff Litchfield on February 23. If you need more copies, just let me know.
Also, in reviewing the January 16, 1999 election documents, I see that Mr. Griffiths was absent
from the meeting when the election results were canvassed. Since it was a special meeting, we need for
him to sign an acknowledgment that he was notified of the meeting. I have enclosed three copies of the
acknowledgment.
Thank you for all your help. Please call if you have any questions. Paul and an associate (Benita
Lee) will be at the meeting Monday.
Very truly yours,
Doris M. Alderman
Assistant to M. Paul Martin
Enclosures
RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE
CITY OF LA PORTE DEVELOPMENT CORPORATION
WHEREAS, the City of La Porte is in the process of issuing its "Certificates of Obligation,
Series 2000" (the "Certificates") for the purposes of constructing and equipping a new La Porte
Community Library and pledging ad valorem taxes to the payment thereof to obtain the best possible
credit rating on the Certificates;
WHEREAS, the City of La Porte Development Corporation has agreed to use a portion of the
sales tax to pay the Certificates;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THE CITY OF LA
PORTE, TEXAS that the Sales and Use Tax Retention Agreement substantially in the form attached
hereto as Exhibit "A" is hereby approved and the officers of the City are authorized to execute and deliver
the Agreement.
PASSED, APPROVED, AND ADOPTED this March 27, 2000.
Mayor
ATTEST:
4qauk Lal
City Secretary
SALES AND USE TAX RETENTION AGREEMENT
This SALES AND USE TAX RETENTION AGREEMENT (the "Agreement") is dated as of
March 15, 2000 and entered into between the CITY OF LA PORTE, TEXAS (the "City") and the CITY
OF LA PORTE DEVELOPMENT CORPORATION, a nonprofit corporation created by the City
pursuant to Section 4B, Article 5190.6, Vernon's Texas Civil Statutes, as amended (the "Act") (the
"Corporation").
WITNESSETH:
WHEREAS, the City has levied a sales and use tax for the benefit of the Corporation as
authorized by Section 4B(d) of the Act, and;
WHEREAS, the City plans to issue its "City of La Porte, Texas Certificates of Obligation, Series
2000" (the "Certificates") in part to finance the improvements described in Exhibit "A" attached hereto
(the "Project"); and
WHEREAS, the Project is a "Project" as defined in Section 4B of the Act and as such, is a
Project for which the Corporation may expend sales and use tax revenues; and
WHEREAS, the issuance of the Certificates by the City will result, generally, in a lower cost of
financing for the Project over the costs the Corporation might incur in financing the Project; and
WHEREAS, the Corporation wishes to finance the Project at the lowest possible cost and,
therefore, intends that the City retain a portion of the sales and use tax receipts from the sales and use tax
levied by the City for the benefit of the Corporation to pledge to the Certificates and for use in making
payments of principal of and interest on the Certificates when due, when redeemed prior to maturity, or
when defeased in accordance with the provisions of the City's ordinance authorizing the sale of the
Certificates (the "Ordinance");
NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the
Corporation hereby agree as follows:
Section 1. Incorporation of the Preambles. The preambles to this Agreement are incorporated
by reference and are hereby included in this Agreement as though set forth in full at this place.
Section 2. Incorporation of the Ordinance. The Ordinance is incorporated by reference and is
hereby included in this Agreement as though set forth in full at this place.
Section 3. Retention of Sales and Use Tax Receipts b �e City. (a) The Board of Directors
of the Corporation hereby agrees that the sales and use tax levied by the City for the benefit of the
Corporation, in an amount necessary to pay the Certificates. Such portion of the sales and use tax
revenues is to be irrevocably retained by the City from the effective date of this Agreement until the
Certificates are paid in full, whether at maturity or redemption prior to maturity, or until sufficient money
and/or securities have been set aside in an irrevocable escrow fund for payment of the Certificates in full,
all in accordance with the Ordinance; provided, however, if the City issues refunding bonds or certificates
to redeem the Certificates prior to maturity or to defease the Certificates, as permitted in accordance with
the Ordinance, such sales and use tax revenues are to be continued to be retained by the City to pledge to
and pay in full the refunding bonds or certificates.
0 •
(b) At the City's sole option, any such sales and use tax revenues retained by the City for
payment of the Certificates which are not needed for payment of the Certificates in any given fiscal year
of the City may be delivered to the Corporation for use pursuant to the Act.
(c) Once the Certificates are defeased or paid in full and all bonds or certificates issued to refund
the Certificates are paid in full, the City shall, as soon as possible, notify the Corporation of such fact, and
commencing on the date of the first distribution of such sales and use tax revenues to the City from the
Texas Comptroller of Public Accounts after such notification, the City shall deliver all of the proceeds of
the sales and use tax levied for the benefit of the Corporation to the Corporation.
Section 4. Notices. All notices required hereunder shall be in writing and delivered by certified
mail, return receipt requested, by facsimile, by overnight mail, or by personal delivery, and addressed as
follows:
If to the City: City of La Porte, Texas
Attention: City Manager
604 West Fairmont
LaPorte, TX 77571
Phone: (281) 471-5020
Fax: (281) 471-7168
If to the Corporation: City of La Porte Development Corporation
Attention: President
604 West Fairmont
LaPorte, TX 77571
Phone: (281) 471-5020
Fax: (281) 471-7168
Any party listed above may designate any additional or different address or facsimile number to
which communications under this Agreement shall be delivered by giving at least five days advance
notice thereof to the affected parties.
Section 5. Amendment. This Agreement may be amended by execution of an instrument by
both parties hereto; provided, however, this Agreement may not be amended to halt or limit the retention
of sales and use tax revenues collected by the City as described in Section 3 hereof.
Section 6. Binding Effect. This Agreement shall bind and inure to the benefit of the successors
of the parties hereto.
Section 7. Applicable Law. This Agreement shall be construed and governed in accordance
with the laws of the State of Texas.
Section 8. Seve'rability. Any provision of this Agreement found to be prohibited by law shall be
ineffective only to the extent of such prohibition and shall not invalidate the remainder of this Agreement.
0
0
Section 9. Execution in Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original and all of which shall constitute but one and the
same instrument.
Section 10. Complete Agreement. This Agreement supersedes and takes the place of any and
all previous agreements entered into among the parties hereto with respect to the subject matter hereof.
EXECUTED AS OF MARCH 15, 2000.
CITY OF LA PORTE, TEXAS
By f ''l
Mayor
ATTEST:
By:YI f) kka, A Ila
ity Secretary
(SEAL)
CITY OF LA PORTE DEVELOPMENT
CORPORATION
By: /9ataco
President, Bo rd of Directors
ATTEST:
By: 'Will. '41111
14-1�
Secretary, Board of Directors
EXECUTION PAGE OF SALES AND USE TAX RETENTION AGREEMENT
EXHIBIT "A"
The Project consists of constructing and equipping of the La Porte Community Library and the
payment of contractual obligations for professional services in connection therewith (to wit: architectural,
engineering, financial advisory, and legal).
0 •
CERTIFICATE FOR RESOLUTION
We, the undersigned President and Secretary of the City of La Porte Development Corporation
(the "Corporation"), hereby certify as follows:
1. The Board of Directors of the Corporation (the "Board") convened in regular session, open to
the public, on March 22, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll
was called of the members, to wit: Chuck Engelken, Jr., Jerry Clarke, Peter E. Griffiths, William S. Love,
Jr., Edward Matuszak, and Patricia Muston. All members of the Board were present, except
, constituting a quorum. Whereupon among other business, the
following was transacted at the Meeting: a written resolution entitled
RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT
WITH THE CITY OF LA PORTE
(the "Resolution") was duly introduced for the consideration of the Board and read in full. It was then
duly moved and seconded that the Resolution be finally passed and adopted; and after due discussion,
such motion, carrying with it the adoption of the Resolution prevailed and carried by the following vote:
YES: - ( NOES: 0 ABSTENTIONS:
2. A true, full, and correct copy of the Resolution adopted at the Meeting is attached to and
follows this Certificate; the Resolution has been duly recorded in the Board's minutes of the Meeting; the
above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of the
Meeting pertaining to the adoption of the Resolution; the persons named in the above and foregoing
paragraph are duly chosen, qualified, and acting officers and members of the Board as indicated therein;
each of the officers and members of the Board was duly and sufficiently notified officially and personally,
in advance, of the time, place, and purpose of the Meeting, and that the Resolution would be introduced
and considered for adoption at the Meeting and each of such officers and members consented, in advance,
to the holding of the Meeting for such purpose; and the Meeting was open to the public, and public notice
of the time, place, and purpose of the Meeting was given, all as required by Chapter 551, Texas
Government Code, as amended.
SIGNED AND SEALED THIS March 22, 2000
10--w1a, Ali I a,
Secretary, Board of Directors
City of La Porte Development Corporation
(SEAL)
President, Boar of Directors
City of La Porte Development Corporation
0 0
RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE
CITY OF LA PORTE
WHEREAS, the Board of Directors of the City of La Porte Development Corporation (the
"Corporation") finds that the new La Porte Community Library is a project the Corporation should
support; and
WHEREAS, the City of La Porte is in the process of issuing its "Certificates of Obligation,
Series 2000" (the "Certificates") for such purpose and pledging ad valorem taxes to the payment thereof
to obtain the best possible credit rating on the Certificates;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
OF LA PORTE DEVELOPMENT CORPORATION that the Sales and Use Tax Retention Agreement
substantially in the form attached hereto as Exhibit "A" is hereby approved and the officers of the
Corporation are authorized to execute and deliver the Agreement.
PASSED, APPROVED, AND ADOPTED this
r dU fit eau
Secretary, Board of Directors President, Board f birectors
0 0
CERTIFICATE FOR RESOLUTION
We, the undersigned Mayor and City Secretary of the City of La Porte (the "City"), hereby certify
as follows:
1. The City Council of the City (the "Council") convened in regular session, open to the public,
on March 27, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll was called
of the members, to wit: Norman L. Malone, Mayor, and Councilmembers Chuck Engelken, Jr., Guy
Sutherland, Howard Ebow, Deotis Gay, Charlie Young, Jerry Clarke, Peter Griffiths, and Alton Porter.
All members of the Council were present, except , constituting a
quorum. Whereupon among other business, the following was transacted at the Meeting: a written
resolution entitled
RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT
WITH THE CITY OF LA PORTE DEVELOPMENT CORPORATION
(the "Resolution") was duly introduced for the consideration of the Council and read in full. It was then
duly moved and seconded that the Resolution be finally passed and adopted; and after due discussion,
such motion, carrying with it the adoption of the Resolution prevailed and carried by the following vote:
YES: - I NOES: 0 ABSTENTIONS: U
2. A true, full, and correct copy of the Resolution adopted at the Meeting is attached to and
follows this Certificate; the Resolution has been duly recorded in the Council's minutes of the Meeting;
the above and foregoing paragraph is a true, full, and correct excerpt from the Council's minutes of the
Meeting pertaining to the adoption of the Resolution; the persons named in the above and foregoing
paragraph are duly chosen, qualified, and acting officers and members of the Council as indicated therein;
each of the officers and members of the Council was duly and sufficiently notified officially and
personally, in advance, of the time, place, and purpose of the Meeting, and that the Resolution would be
introduced and considered for adoption at the Meeting and each of such officers and members consented,
in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and
public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551,
Texas Government Code, as amended.
SIGNED AND SEALED THIS March 27, 2000.
NAO-
City'Secretary
City of LaPorte, Texas
(SEAL)
f
Mayor
City of La Porte, Texas
•
0
REAT FOR CITY COUNCIL AGENDA ITO
AGENDA DATE 03/27/2000 REQUESTED BY Jeff Litchfield, Finance Director/ACM
REPORT; RESOLUTION; XX ORDINANCE;
At 6:00 p.m. on March 27, 2000, the City of La Porte plans to accept bids for the issuance of
General Obligation Bonds.
The General Obligation Bonds that will be issued total $3,250,000 and represents projects that were
approved by the voters in the January 16, 1999 election. The projects for which bonds are being
sold are:
City Hall Expansion $ 1,500,000
Replace Fire Station 3 750,000
Replace Fire Station 4 750,000
Replace San Jacinto Swimming Pool 250,000
Total $ 3,250,000
In order to complete the sale, the City of La Porte needs to adopt the attached ordinance, which was
prepared by Paul Martin of Akin, Gump, Strauss, Hauer, & Feld, LLP.
ACTION REQUIRED BY COUNCIL:
Approve ordinance authorizing issuance of $3,250,000 General Obligation Bonds, Series 2000.
FUND N/A ACCT NUM: FUNDS AVAILABLE:
APPRO FDR CITY COUNCIL AGENDA
RO HER ERA, CITY MANAGER DAT
0 •
AKIN, Gump, STRAUSS, HAUER & FELD. L.L.P.
ATTORNEYS AT LAW
A REGISTERED LIMITED LIABILITY PARTNERSHIP
INCLUDING PROFESSIONAL CORPORATIONS
AUSTIN
300 CONVENT STREET
BRUSSELS
SUITE 1500
DALLAS
HOUSTON
SAN ANTONIO. TEXAS 78205
LONDON
(210) 281-7000
LOS ANGELES
FAX (210) 224-2035
MOSCOW
NEW YORK
www.akingump.com
PHI LAD E LP H I A
WRITER'S DIRECT DIAL NUMBER 2 1 0-28 1 -7084
SAN ANTONIO
WRITER'S E-MAIL ADDRESS pmaRln@akingump.com
WASHINGTON, D.C.
RIYADH - IN AFFILIATION WITH
LAW OFFICE OF ABDULAZIZ H. FAHAD May 18, 2000
Ms. Martha Gillett
City of La Porte
604 West Fairmont
LaPorte, Texas 77571
Re: City of La Porte, Texas, $3,250,000 General Obligation Bonds, Series 2000
and $3,000,000 Certificates of Obligation, Series 2000
Dear Martha:
Enclosed is a Transcript of Proceedings for the captioned issues. It was a pleasure
working with you to bring this transaction to a successful close, and we sincerely appreciate the
opportunity to be of service to the City.
Very truly yours,
M. Paul Martin
MPM/sj
Enclosure
• /!W-
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ --0 -- for Bonds maturing and bearing interest as follows:
Maturitv
Interest Rate
Maturitv
Interest Rate
2001
7. �;
pro
2011
t,
%
2002
%
2012
:� t,
2003
%
2013
y��,
2004
%
2014
2005
%
2015
%
2006
%
2016
2007
%
2017
2008
%
2018
%
2009
Zen
%
2019
%
2010
S;-;z e
%
2020
�c a
%
GROSS INTEREST COST
Less Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
Y
e7 s Y.S 5/ yC7%
The Initial Bonds shall be registered in the name of (syndicate manager).
The definitive Bonds will be registered to Cede R. Co., the nominee of The Depository Trust Company. C
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the
Initial Offering Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the ,
in the amount of $65,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set
forth in the Official Notice of Sale.
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the Bonds.
Syndicate: //
, C-S Lz/I �v,�f rc f`'✓
S A';?f At 4 f-52 2!5-5'
If
Respectfully submitted,
By: .a
Phone, %Afe' — 513e,
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the % day of March, 2000.
ATTEST:
Secr ry ,
Dated March 15, 2000
7Maytr
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturity
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,000
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
8,250.0000
2011
175,000
10,175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175,000
17,000.0000
2015
175,000
19,625.0000
2016
175,000
22,425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
Maturity: March 15
• •
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of La Porte
604 W. Fairniont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council:
This bid is submitted tinder the bidding conditions of your Official Notice of Sale dated March 13, 2000, of 53,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ « — for Bonds maturing and bearing interest as follows:
Maturitv
Interest Rate
Maturity
Interest Rate
2001
7 C—c
%
2011
�� : / G
°/,
2002
%
2012
%
2003
%
2013
%I
2004
%
2014
%;
2005
%
2015
%
2006
%
2010
%
2007
%
2017
2008
%
2018
%
2009
7. cam;
%)
2019
%,
2010
G . C/O
%
2020
�, : C �'
%
GROSS INTEREST COST
$ /, 7;,/ / a e a
Less Premium $
NF.'I' [N,rF..RF.,ST COST
EFFECTIVE INTEREST RATE S. `(d 6 3 > %
The Initial Bonds shall be registered in the name of DAIN RAUSCHER INC. (syndicate manager).
The definitive Bonds will he registered to Cede JL Co., the nominee of The Depositon' Tr ust Company
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds. the
Initial Offering Price Certificate, in the forni enclosed as Exhibit A to the Otlicial Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the F2D ST 9A A.)K
in the amount of $65,000 %rhich represents our Good Faith Deposit and which is submitted in accordance with the terns as set
forth in the Official Notice ot'Sale.
•
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the Bonds.
Respectfully submitted,
Syndicate: DAIN RAUSGHER ING
Awe tU666E, it,)c-
5AwM(>j SiniTed BAQZMEJ By:
'AOW-AAA—Gt ILLi Ants LAX. Phone: a /4- -999 - IFOO
ACCEPTANCE CLAUSE
I'he foregoing bid is hereby in all things accepted by the Cite of La Porte, Texas this the day of March, 2000.
A'1TEST:
Secretary -
Dated March 15, 2000
�Vl&& el
Mayor
Mayor
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturity
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,50().0()00
2005
150,000
2:250.0000
2006
150.000
3,150.0000
2007
150,000
4,200.0000
2008 ,
L50,000
5,400.0000
2009 :
150,000
6,750.0000
2010
150,000
8150.0000
2011
175,000
102175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175.000
17.000.0000
2015
175,000
19:625.0000
2016
175,000
22,425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
Maturity: March 15
• 61
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkwav
LaPorte, TX 77571
Mayor and Members of the City Council: 1
�'� ( 1 t T� o L•
rn���
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof:
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, we %Vill paN- you par and accrued
interest; plus a cash premium of $ --O — for Bonds maturing and hearing interest as follows:
Mattnrity
Interest Rate
Maturitv
Interest Rate
2001
. (1('; %
2011
`7 i %
2002
%
2012
- G C, %
2003
%
2013
%
2004
%
2014
%
2005
%
2015
_
0/n
2006
%
2016
2007
%
2017
%
2008
%
2018
%
2009
%
2019
%,
2010
V %
2020
'%,
GROSS INTEREST COST
Less Premium $
NF,r fNTERI S7' COST $
EFFECTIVE' INTEREST RATE
The Initial Bonds shall be registered in the name of (syndicate manager).
'file definitive Bonds will be registered to Cede & Co., the nominee of The Depository'fn►st Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day alter award of the Bonds, the
Initial Offering Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashiers Check of the
in the amount of $65,000 which represents our Good Faith Deposit and which is submitted in accordance "iIll the terms as set
forth in the Official Notice of sale.
•
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the Bonds.
Respectfully submitted,
Syndicate: WH-1-1AAA R HCLGH -9 C0
By:
Phone: C 7.7
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of March, 2000.
ATTEST: 4
1?1--6'� 'Ata 4-11�-
Secretary Mayor
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturity
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150.000
3,150.0000
2007
150g)O
4,200.0000
2008
150,000
5:400.0000
2009
150.000
6,750.0000
2010
150000
8,250.0000
2011
175,000
10,175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175,000
17,000.0000
2015
175,000
19,625.0000
2016
175,000
22,425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
Maturity: March 15
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of La Porte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ � 6— for Bonds maturing and bearing interest as follows:
Maturity
Interest Rate
Maturity
Interest Rate
2001
L 2 —5 %
2011
,� , 1:
%
2002
%
2012
` . il' -.
%
2003
%
2013
%
2004
%
20141
%
2005
%
2015
j� L
2006
%
2016
`-j , C�
%
2007
%
2017
•ICI
%
2008
%
2018
,5. �S
%
2009
e7 %
2019
S . ���7
%
2010
`�' t %
2020
(J 7
%
GROSS INTEREST COST
Less Premium
NET 04TEREST COST
EFFECTIVE INTEREST RATE
$ �)�-TI.SCi
I
$ 0�0 —
The Initial Bonds shall be registered in the name of First Southwest Company (syndicate manager).
The definitive Bonds will be registered to Cede & Co., the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the
Initial Offering Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the Frost National Bank Austin _
in the amount of $65,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set
forth in the Official Notice of Sale.
i
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the Bonds.
Syndicate:
Respectfully submitted,
First Southwest Cont
By: Peter B. Stare - Sr VP
Phone: 914_93-4040
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of March, 2000.
ATTEST:
Secretary
Dated March 15, 2000
Ma or
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturity
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,000
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
8,250.0000
2011
175,000
10,175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175,000
17,000.0000
2015
175,000
19,625.0000
2016
175,000
22,425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
Maturity: March 15
0
•
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City COLUICiI
City of LaPorte
604 W. Fairmont Parkway
La Porte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000. of $3,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium or It, for Bonds maturing and bearing interest as follows:
Maturitv
Interest Rate
Maturity
Interest Rate
2001
,y L''• 'yo
2011
I
%
2002
_ %
21012
%,
2003
%
2013
7 __
%,
2004
%
2014
S. 7S
%,
2005
%,
2015
: yC C.
'%,
2006
%
2016
o
2007
%
2017
2009
_ 'I %,
2019
47,
2010
I_� %
2020
_ Ci
%�
GROSS INTEREST COST
Less Premium
$
NET INTEu-.s1' COST
$
EFFECTIVE INTEREST
RAPE S . %
The Initial Bonds shall be re_istered in the name of A. G. EDWARDS & SONS, INC, (syndicate manager).
Tile definitive Bonds will be registered to Cede x Co.. the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the
Initial Otfering Price Certificate, in the forni enclosed as Exhibit A to the Oflicial Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of' tile
in the amount of $65,000 which represents our Good Faith lhposit and which is submitted in accordance with the terms as set
forth in the Official Notice of Sale.
• •
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the Bonds.
Respectfully submitted,
Syndicate: ALA U WAS R,
By: Z2601 6)"Ae
Phone:
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the
A'IT13ST:
b
Secretary Mayor
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturitv
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,0()0
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,000
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
8.250.0000
2011
175,000
10, 175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175,000
17,000.0000
2015
175,000
19,625.0000
2016
175,000
222425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
day of March, 2000.
Maturity: March 15
0 •
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
La Porte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of }'ottr Official Notice of Sale dated March 13, 2000, of $3,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terns and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ _ (L — for Bonds maturing and hearing interest as follows:
Maturity
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
GROSS INTEREST COST
Less Premium
Ni's'r INTE:R}ST COST
EFFECTIVE INTEREST RATE
Interest Rate
1 "/,
C. 0-0 %
Maturitv Interest Rate
2011
-7
2012
2013
S 3
%
2015
%
2016
S S�
"/„
2017
S a . -,
'%,
2015
S.�y
%
2019
Gam` L;
%,
2020
'the Initial Bonds shall be registered in the name of (syndicate manager).
The definitive Bonds "rill be registered to Cede & Co., the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the Bonds, the
initial Offering Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashiers Check of the
in the amount of $65,000 which represents our Good Faith Deposit and which is submitted in accordance with the ternis as set
forth in the Official Notice of Sale.
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the }ion ..
Respcctliilly submiited ��—',/
ll
Svndicatc: David S. Fast, Vice Pre ide1�L`
First Tennessee Capital Markets
By: (800) 307-5405
Phone:
ACCEPTANCE CLAUSE
"rhe foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of March, 2000.
ATTEST:
Secretary ayor
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturitv
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,00a
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,000
3,150.0000
2007
150.000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
9,250.0000
2011
175,000
10,175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175,000
17,000.0000
2015
175,000
19:625.0000
2016
175,000
22,425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
Maturity: March 15
OFFICIAL BID FORM
GENERAL OBLIGATION BONDS
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
La Porte, TX 77571
Mayor and Members of the City Council:
This bid is submitted tinder the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,250,000
City of La Porte, Texas, General Obligation Bonds, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,250,000 of Bonds, as described in said Official Notice of Sale, %ve will pay you par and accrued
interest, plus a cash premium ot$ — 0—for Bonds maturing and bearing interest its follows:
Maturity
Interest Rate
Maturity
Interest Rate
2001
a
2002
2004
%
2014
. '{ °/,
2005
%,
2015
��] �i %
2006
%
2016
°
2007
%
2017
2008
%
2018
2009
i/
%,
2019
%,
2010
%
2020
l z %,
GROSS INTEREST COST
Less Premium
NETINTEREST COST
EFFL'CT1VE 1NTERL's,r RA "E
$- _
$ 1. L qL--A 1. 4S
45.E ,.4 %
The Initial Bonds shall be registered in the name of C(%>` . (syndicate manager).
The definitive Bonds will be registered to Cede & Co., the nominee of "rlte Depositor "I'ntst Company.
The undersigned agrees to complete, execute, and deliver to the Cuy, on the next business day after award oCthe Bonds, the
htitial Otiering Price Certificate, in the form enclosed as Exhibit A to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified ur Bank Cashier's Check oCthe
in the amount of $65,000 which represents our Good Faith Deposit and which is submitted in accordance with the terns as set
forth in the Official Notice of Sale.
We have read in detail the Official Notice of Sale and the Official Statement relating to the Bonds, and we have made such
investigations as we deem necessary relating to the City and the investment quality of the Bonds.
Respectfully submitted,
Syndicate:
GR1,�J I1 KJ
F i 91K 3TE P HENS & 1 orINS:.
ACCEPTANCE CLAUSE
'rhe foregoing bid is hereby in all things accepted by the City of L.a Porte, Texas this the _ day of March, 2000.
ATI'EST:
Secretary
Dated March 15, 2000
Mayor
ACCUMULATED BOND YEARS
$3,250,000
City of La Porte, Texas
General Obligation Bonds, Series 2000
Year of
Amount
Accumulated
Maturity
of Bonds
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,000
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
82250.0000
2011
175,000
10,175.0000
2012
175,000
12,275.0000
2013
175,000
14,550.0000
2014
175,000
17,000.0000
2015
175,000
19,625.0000
2016
175,000
22,425.0000
2017
175,000
25,400.0000
2018
175,000
28,550.0000
2019
175,000
31,875.0000
2020
175,000
35,375.0000
Average Maturity ......... 10.885 Years
Maturity: March 15
TABULATION OF BIDS •
Received
March 27, 2000
on
CITYOF LA PORTE
(Harris County, Texas)
$3,250,000 General Obligation Bonds, Series 2000
Ratings: (Insured by M.B.I.A.)
Moody's - "AO" Insured - "Aaa"
S&P's - "A+" Insured - "AAA" Bond Buver Index: 5.76%
Effective
Bidder
Maturities
Rate
Interest Cost
Interest Rate
First Union Securities, Manager
2001-2009
7.00%
GIC:$1,929,062.50
5.4531%
Morgan Keegan*
2010-2011
5.20%
Prem: 0.00
SAMCO Capital Markets*
2012
5.30%
NIC:$1,929,062.50
2013
5.40%
2014
5.125%
2015-2020
5.00%
------------------------------------------------------------------------------------------------------------------
Dain Rauscher, Inc., Manager
2001-2009
7.00%
GIC: $1,934,175.00
5.4676%
PaineWebber, Inc.*
2010
6.90%
Prem: 0.00
Salomon Smith Barney*
2011
5.10%
NIC: $1,934,175.00
Duncan -Williams, Inc.*
2012-2020
5.00%
------------------------------------------------------------------------------------------------------------------
William R. Hough & Co.
2001-2010
7.00%
GIC:$1,936,156.25
5.4732%
2011
5.125%
Prem: 0.00
2012-2020
5.00%
NIC:$1,936,156.25
------------------------------------------------------------------------------------------------------------------
First Southwest Company
2001-2009
6.25%
GIC:$1,952,737.50
5.5201%
2010
5.125%
Prem: 0.00
2011
5.15%
NIC:$1,952,737.50
2012
5.20%
2013
5.30%
2014
5.35%
2015
5.40%
2016
5.45%
2017
5.50%
2018
5.55%
2019
5.60%
2020
5.00%
*Co -Manager
PAGE 1 OF 2
• TABULATION OF BIDS CONT... •
Received
March 27, 2000
on
CITYOF LA PORTE
(Harris County, Texas)
$3,250,000 General Obligation Bonds, Series 2000
Ratings: (Insured by M.B.I.A.)
Moody's - "Aa3" Insured - "Aaa"
S&P's "A+" Insured - "AAA" Bond Buver Index: 5.76%
Bidder Maturities
Rate
A.G. Edwards & Sons, Inc. 2001-2006
7.00%
2007
5.75%
2008
5.10%
2009-2011
5.15%
2012
5.20%
2013
5.25%
2014
5.35%
2015
5.40%
2016
5.45%
2017
5.50%
2018-2019
5.55%
2020
5.50%
Effective
Interest Cost Interest Rate
GIC:$1,957,537.50 5.5336%
Prem: 0.00
N- IC:$1,957,537.50
------------------------------------------------------------------------------------------------------------------
First Tennessee Capital Markets 2001-2010
6.00%
GIC: $1,968,237.50 5.5639%
2011
5.25%
Prem: 0.00
2012-2013
5.30%
MC: $1,968,237.50
2014-2015
5.40%
2016-2020
5.50%
------------------------------------------------------------------------------------------------------------------
Griffin, Kubik, Stephens & Thompson, Inc. 2001
5.50%
GIC: $1,990,468.75 5.6267%
2002-2009
6.20%
Prem: 0.00
2010
5.50%
NIC: $1,990,468.75
2011-2012
5.20%
2013-2014
5.40%
2015-2016
5.50%
2017
5.60%
2018-2020
5.625%
PAGE 2 OF 2
AULATION OF BIDS RECEIVED
March 27, 2000
on
CITY OF LA PORTE, TEXAS
$3,250,000 General Obligation Bonds, Series 2000
ACCOUNT MANAGER INTEREST INTEREST INTEREST
AND MEMBERS MATURITY RATE MATURITY RATE COST
2001
.0 U %
2011
i 0 %
GIC $
1 J
2002
%
2012
{ ? %
r%
Prem
-�
Y 2003
�%
2013
NIC $
1 u
f
-3
2004
%
2014
=%
EIR
:°S 4
L - lv 3
2005
�
%
2015
%
?
v� 2006
%
2016
%
�- 2007
%
2017
%
2008
%
2018
%
2009
`1 J %
2019
%
2010
%
2020
5. v %
2001
- _ 00 %
2011
�• r '� %
GIC $
2002
%
2012
i %
Prem -
2003
%
2013
4' J •' %
NIC $
2004
%
2014
�5, 1 5- %
EIR I- `4;�
2005
%
2015
_ ';
V 1.
2006
%
2016
%
2007
I %
2017
%
t
2008
%
2018
%
�
2009—�
i .y V %
2019
%
.r
2010
Z , _ %
2020
%
2001
%
2011
%
GIC $
2002
%
2012
%
Prem
2003
%
2013
%
NIC $
2004
%
2014
%
EIR
2005
%
2015
%
2006
%
2016
%
2007
%
2017
%
2008
%
2018
%
2009
%
2019
%
2010
%
2020
%
2001
%
2011
%
GIC $
2002
%
2012
%
Prem
2003
%
2013
%
NIC $
2004
%
2014
%
EIR
2005
%
2015
%
2006
%
2016
%
2007
%
2017
%
2008
%
2018
%
2009
%
2019
%
2010
%
2020
%
2001
%
2011
%
GIC $
2002
%
2012
%
Prem
2003
%
2013
%
NIC $
2004
%
2014
%
EIR
2005
%
2015
%
2006
%
2016
%
2007
%
2017
%
2008
%
2018
%
2009
%
2019
%
2010
%
2020
%
• TABULATION OF BIDS RECEAD,
March 27, 2000
on
CITY OF LA PORTE, TEXAS
$3,250,000 General Obligation Bonds, Series 2000
ACCOUNT MANAGER
INTEREST
INTEREST
INTEREST
AND MEMBERS MATURITY
RATE
MATURITY
RATE
COST
2001
%
2011
=._
L,
61 4V(1
2002
2003
2004
% %
`-% %
--7 %
2012
2013
2014
• 10 %
:" %
%
Prem --
NIC $ 1, 9 S 7 S 3'-1
EIR S..s -? 3 (So
7 J
2005
%
2015
5 • i'= _%
hJl
2006
-7%
2016
{ %
2007
1—%
2017
5-6 5-0 %
2008
%
2018
<. 5 ''-
2009
%
2019
�j
2010
t %
2020
5
----
_
2001-_%
2011--
%
GIC $
2002
2003
%
%
2012
2013
= 3 0 %
57 3 D %
Prem
NIC $
-�• ^
V�
2004
%
2014
4 D %
EIR
"
2005
%
2015
_ : Li D - 0/0
2006
(n %
2016
y
C _. : y.._ •
2007
' i %
2017
= %
2008—%
2018
=> > %
j ,
2009
!o %
2019
5 = %
2010
%
2020
------
707770/0
—_�
----------
2001 -----
� S',� %
� 2011
Y ` _ %---
GIC $
"' _ G.
•..% �
2002
%
2012
%
Prem
--�
r
2003
c:: %
2013
:1 %
NIC $
2004
=�. .: %
2014
- ' ! t� %
EIR
2005
Lv = C %
2015
S (: %
2006
!o n i %
2016
. 150 %
2007
T,2 %
2017
1_!:/0
-`-
2608
7 %
2018
'r 1j
fY, f%;C t r,S
2009
'<'
2019
2020
0/0
r
2010
-- -
—
-2001--------
(0. %
2011
.5 , I %
GIC $
I �! .2- 7 3 .7
SJ
I �1
2002
t'-%
2012
! U %
T, %
Prem
NIC $_(
---
ci S 1. -73
5- O
2003
! ? 5' %
2013
n
2004
_ % %
2014
_%
EIR
r ^'
2005
/ , %
2015
7 %
2007
' %
2017
_ ':: _%
2008
''f . ,- r %
2018-..
2009
to c �%
2019
,d , (" o %
2010
•s ? %
2020
s . lU 0 %
_-- 2001
o u %
2011
- ) : %
GIC $
2002
`7 . U () %
2012
S , L) 0 %
Prem
t 2003
100 %
2013
IJ U %
MC $ "i =- a J
- -7
2004
"1 %
2014
J .? %
EIR °� 3
2005
-1 .0-%
2015
'S %
(-
` 2006
-7. J J %
2016
:' t; %
2007
—' �'. %
2017
%
2008
1:% %
2018
%
2009
�� a
2019
::•? %
2010
_%
1 J u %
2020
5� J %
RECEIVED
• • MAR 0 7 7
n0
MORONEX BEISSNER & CO., INC. CITY SECRETARY'S
Municpal Financial Advisors OFFICE
Two Post Oak Central Bldg.
1980 Post Oak BIvd., Suite 2100 713-960-8900
Houston, Texas 77056 7131960-8904 Facsimilie
March 6, 2000
Ms. Laura Barrientos
Moody's Investors Service, Inc.
600 N. Pearl St., Suite 2165
Dallas, TX 75201
Be: City of LaPorte, Texas (Harris County)
S3,250,000 General Obligation Bonds,• Series 2000 and
S3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Laura:
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations. Also enclosed are the City's Audit Reports for fiscal years ending September 30,
1998 and 1999, and the 1999-2000 Budget along with completed ratings applications. Please
review this material with an eye towards assignments of ratings.
In the meantime if you have any questions regarding the City's credit position or we can
furnish additional information, please let us know.
MKF: scot
Enclosures
cc: City of La Porte
Yours verytruly,
Iss K. Fetzer
Vice President
Established in 1919
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 1-7056
March 6, 2000
Mr. Alex Fraser
Standard & Poor's
500 N. Akard St., Suite 3200
Dallas, TX 75201
Re: City of La Porte, Texas (Harris County)
$3, 25 0, 000 General Obligation Bonds, Series 2000 and.
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Alex:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations. Also enclosed are the City's .Audit Reports for fiscal years ending September 30,
1998 and 1999, and the 1999-2000 Budget along with completed ratings applications. Please
review this material with an eye towards assignments of ratings.
In the meantime if you have any questions regarding the City's credit position or we can
furnish additional information, please let us know.
MKF: smt
Enclosures
cc: City of La Porte
Yours very truly,
Moss K. Fetzer
f67
Vice President
Established in 1919
•. •
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Mr. Mark Spinelli
First Vice President
AMBAC
One State Street Plaza, 16th Floor
New York, NY 10004
Re: City of La Porte, Texas (Harris County)
$3,250,000 General Obligation Bonds, Series 2000 and
S3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Mark:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of La Porte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF: scot
enclosures
cc: City of LaPorte
Yours very truly,
1~4--
oss K. Fetzer '
Vice President
Established in 1919
0. •
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg,
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Ms. Lisa MacKay
MBIA
113 King St.
Armonk, NY 10504
Re: City of La Porte, Texas (Harris County)
$3, 250, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax -Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Lisa:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF: smt
enclosures
cc: City of LaPorte
Yours very truly,
--ffo A I
1..
Moss K. Fetzer
Vice President
Established in 1919
0 - i
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Mr.. Jim Doyle
Financial Security Assurance, Inc.
350 Park Ave., 13th Fl.
New York, NY 10022
Re: City of LaPorte, Texas (Harris County)
$3, 230, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax -Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Jim:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you -by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF: smt
enclosures
cc: City of LaPorte
Yours very truly,
7 $tic . 1
Moss K. Fetzer
Vice President
Established in 1919
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite. 2100
Houston, Texas 77056
March 6, 2000
Ms. Debbie Delianites
FGIC
115 Broadway
New York, NY 10006
Re: City of La Porte, Texas (Harris Count))
,S3, 250, 000 General Obligation Bonds, Series 2000 and
,S3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Debbie:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF:smt
enclosures
cc: City of LaPorte
Yours very truly,
11Y
Moss K. Fetzer
Vice President
Established in 1919
0 4k
ORDINANCE NO. aDaD- 399
ORDINANCE AUTHORIZING THE ISSUANCE OF $3,250,000 CITY OF LA PORTE, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2000, AND ALL OTHER MATTERS RELATED
THERETO
WHEREAS, at an election duly called and held for and within the City of La Porte, Texas (the "City") on
January 16, 1999, the duly qualified resident electors of the City authorized the City Council of the City (the
"Council") to issue bonds of the maximum amount of $3,925,000 (the "1999 Authorization");
WHEREAS, the Council now deems it to be in the best interest of the City to issue $1,500,000 from
Proposition 1 of the 1999 Authorization for additions to the City Hall (leaving $-0- in bonds from Proposition 1 to
be issued in the future); $750,000 from Proposition 2 of the 1999 Authorization for replacement of Fire Station No.
4 (South La Porte area) (leaving $-0- in bonds to be issued in the future); to issue $750,000 from Proposition 3 of the
1999 Authorization for the replacement of Fire Station No. 3 (Lomax area) (leaving $-0- in bonds to be issued in the
future); and to issue $250,000 from the 1999 Authorization for the replacement of the San Jacinto Swimming Pool
(leaving $-0- in bonds to be issued from Proposition 5 in the future); and
WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Chapter 1251,
Texas Government Code, as amended; Chapter 1331, Texas Government Code; as amended, and the Charter of the
City;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS, THAT:
Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bonds of City of La Porte are hereby
authorized to be issued and delivered in the aggregate principal amount of $3,250,000, for the purpose of
constructing additions to City Hall, replacement of Fire Station No. 3 and Fire Station No. 4, and replacement of the
San Jacinto Swimming Pool.
Section 2. DESIGNATION DATE DENOMINATIONS NUMBERS MATURITIES AND INTEREST
RATES OF BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF LA PORTE,
TEXAS GENERAL OBLIGATION BOND, SERIES 2000", and initially there shall be issued, sold, and delivered
hereunder fully registered bonds, without interest coupons, dated March 15, 2000, in the respective denominations
and principal amounts hereinafter stated, payable to the respective initial registered owners thereof (as designated in
Section 14 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 term `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 term "Bond" shall mean any of the Bonds. The Initial
Bond shall be numbered 1-1 and the definitive Bonds shall be numbered R-1 upward and shall be in the
denomination of $5,000 each or any integral multiple thereof, shall mature and be payable serially on March 15 in
each of the years and in the principal amounts, respectively as set forth in the following schedule, and shall bear
interest from the date 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:
•
i
INTEREST
INTEREST
YEARS
AMOUNTS RATES
YEARS
AMOUNTS RATES
2001
$150,000
2011
$175,000
2002
150,000
2012
175,000
2003
150,000
2013
175,000
2004
150,000
2014
175,000
2005
1.50,000
2015
175,000
2006
150,000
2016
175,000
2007
150,000
2017
175,000
2008
150,000
2018
175,000
2009
150,000
2019
175,000
2010
150,000
2020
175,000
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 3. CHARACTERISTICS OF THE BONDS. (a) Registration, Transfer, and Exchange
Authentication. The City shall keep or cause to be kept at the principal corporate trust office of Chase Bank of
Texas, 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 City 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 City and Paying 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 Agent/Registrar Agreement substantially in the
form 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 City shall have the right to inspect the
Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying
Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not
permit their inspection by any other 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
additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the City 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 of customary weight and
strength. Pursuant to Chapter 1201, Texas Government Code, as amended, 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 City 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
2
0 •
Agent/ Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar with
respect to the Bonds.
(c) In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with the
principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may 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 City
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 Initial Bond shall be
delivered to the initial purchaser and are not required to be, and shall not be, authenticated 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 CERTIFICATE, in the form set forth in the FORM OF BOND.
(d) Substitute Paving Agent/Registrar. The City covenants with the registered owners of the Bonds that at
all times while the Bonds are outstanding the City will provide a competent and legally qualified bank, trust
company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the
Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The City 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 City 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 thereof), along with all other
pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by
the City. Upon any change in the Paying Agent/Registrar, the City 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 performing 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 4. FORM OF BONDS. The form of the Bonds, including the Form of Paying Agent/Registrar's
Authentication Certificate, the Form of Assignment, [the Form of Statement of Insurance,] and the Form 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 permitted or required by this Ordinance.
FORM OF BOND
[Form of Front Panel of Definitive Bond]
NO. R- United States of America PRINCIPAL
State of Texas AMOUNT
CITY OF LA PORTE, TEXAS S
GENERAL OBLIGATION BOND,
SERIES 2000
INTEREST RATE MATURITY DATE ISSUE DATE CUSIP NO.
March 15, 2000
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 "City"), 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 September 15, 2000, and semiannually on each
March 15 and September 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 prior to
maturity, at the designated payment office of CHASE BANK OF TEXAS, 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 City required by the ordinance authorizing the issuance of this Bond adopted on March 27, 2000 (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 Registration 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 March 15, 2000, authorized in accordance with the
Constitution and laws of the State of Texas in the original principal amount of $3,250,000 for the purpose of
providing funds for additions to City Hall, replacement of Fire Station No. 3 and Fire Station No. 4, and replacement
of the San Jacinto Swimming Pool.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON
THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND EFFECT AS IF
SET FORTH IN THIS SPACE.
IN WITNESS WHEREOF, the City has caused this Bond to be signed with the manual or facsimile
signature of the Mayor of the City and countersigned with the manual or facsimile signature of the City Secretary of
the City, and has caused the official seal of the City to be duly impressed, or placed in facsimile, on this Bond.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
City Secretary
City of La Porte, Texas
CITY OF LA PORTE, TEXAS
4
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Mayor
City of La Porte, Texas
•
(Form of Back Panel of Bond]
THE BONDS are issued pursuant to the Bond Ordinance whereunder the City covenants to levy a
continuing direct annual ad valorem tax on taxable property within the City, 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
City's funds, remedies in the event of a default hereunder or thereunder, and the other rights of the registered owner.
THIS BOND IS TRANSFERABLE 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 terms and conditions of the Bond Ordinance.
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 designated payment 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 MARCH 15, 2010, or on any date thereafter, the Bonds of this series may be redeemed prior to their
scheduled maturities, at the option of the City, 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 $5,000) 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 City shall determine 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 City 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 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 City, 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 form 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 Form 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 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 City. 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 City, resigns, or otherwise
ceases to act as such, the City 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 City, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute
a contract between each registered owner hereof and the City.
IT IS HEREBY CERTIFIED, RECITED, AND COVENANTED THAT 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 City, and have been pledged for such payment, within the limit
prescribed by law.
FORM OF INITIAL BOND
The Initial Bond shall be in the form set forth above for the Definitive Bonds, except the following shall
replace the heading and the first paragraph and the Bond will be a continuous document:
NO. I-1 $3,250,000
United States of America
State of Texas
CITY OF LA PORTE, TEXAS
GENERAL OBLIGATION BOND, SERIES 2000
Issue Date: March 15, 2000
Registered Owner:
Principal Amount: THREE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($3,250,000)
THE CITY OF LA PORTE, TEXAS (the "City"), for value received, acknowledges itself indebted to and
hereby promises to pay to the order of the Registered Owner, specified above, or the registered assigns thereof (the
"Registered Owner"), the Principal Amount, specified above, with principal installments payable on March 15 in
each of the years, and bearing interest at per annum rates in accordance with the following schedule:
YEARS OF PRINCIPAL INTEREST
STATED MATURITIES INSTALLMENTS RATE
$
(Information to be inserted from schedule in Section 2 hereof.)
INTEREST on the unpaid Principal Amount hereof from the Issue Date, specified above, or from the most
recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has
become due and payment thereof has been made or duly provided for shall be paid computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on March 15 and September 15 of each year,
commencing September 15, 2000.
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 final payment of principal of this Bond shall be paid to the
Registered Owner hereof upon presentation and surrender of this Bond at final maturity, at the designated payment
office of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, which is the "Paying
Agent/Registrar" for this Bond. The payment of principal installments and 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 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
required by the ordinance authorizing the issuance of this Bond adopted on March 27, 2000 (the "Bond Ordinance");
and such check shall be sent by the Paying Agent/Registrar by United States mail, postage prepaid, on each such
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 payments hereon means the
last business day of the month preceding a scheduled payment. 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.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date
for such payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds
for the payment thereof have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due payment (the "Special Payment Date", which shall be 15 calendar 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 the Registered Owner 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 that no later than each principal installment 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, of all principal of and interest on the Bond, when due, in
the manner set forth in the Ordinance defined below.
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE*
* Not required on Initial Bond
PAYING AGENT/REGISTRAR'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: CHASE BANK OF TEXAS, NATIONAL ASSOCIATION,
Paying Agent/Registrar
By
Authorized Signature
[FORM OF STATEMENT OF INSURANCE
STATEMENT OF INSURANCE]
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 Tax Payer (Print or type Assignee's name and address, including zip code)
Identification number)
and
hereby irrevocably constitutes and appoints
attorney to transfer the registration of this Bond on the Paying Agent/Registrar's Registration Books with full power
of substitution in the premises.
Dated
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a
member firm of the New York Stock Exchange or a
commercial bank or trust company.
NOTICE: The signature above must correspond with
the name of the Registered Owner as it appears upon
the front of this Bond in every particular, 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 tenant with right of survivorship and not as tenants in common
UNIT GIFT MIN ACT - Custodian
under Uniform Gifts to Minor Act
(Cust)
(State)
Additional abbreviations may also be used though not in the list above.
(Minor)
FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS*
*To be printed or attached to Initial Bond only
COMPTROLLER'S REGISTRATION 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.
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Witness my signature and seal this
COMPTROLLER'S SEAL Comptroller of Public Accounts of the State of Texas
[END OF FORMS]
Section 5. 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 City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart
from all other funds and accounts of the City, 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 City, 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 City 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 6. DISPOSITION OF BOND PROCEEDS. The proceeds of the Bonds shall be placed into the
Interest and Sinking Fund and the Construction Fund of the City 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) Construction Fund. The proceeds of the Bonds remaining after the above described deposit into the
Interest and Sinking Fund shall be placed in the Construction Fund (hereby created) to be used by the City for the
purposes described in this Ordinance.
Section 7. 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 City and the Council covenant and agree that in the event the City
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
performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the 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 City to observe and perform 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 8. 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 (e) 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
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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 (A) lawful money of the United States of America
sufficient to make such payment or (B) Government Obligations (hereinafter defined) 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 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 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 City 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
City, or deposited as directed in writing by the City.
(c) The term "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 form.
(d) 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.
Section 9. BOOK -ENTRY ONLY SYSTEM. It is intended that the Bonds initially be registered so as to
participate in a securities depository system (the "DTC System") with The Depository Trust Company, New York,
New York, or any successor entity thereto ("DTC"), as set forth herein. The definitive Bonds shall be issued in the
form of a separate single definitive Bond for each maturity. Upon issuance, the ownership of each such Bond shall
be registered in the name of Cede & Co., as the nominee of DTC, and all of the outstanding Bonds shall be
registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are
authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be
necessary to effectuate the DTC System, including a "Letter of Representation" (the "Representation Letter").
With respect to the Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the
Paying Agent/Registrar shall have no responsibility or obligation to any broker -dealer, bank, or other financial
institution for which DTC holds the Bonds from time to time as securities depository (a "Depository Participant") or
to any person on behalf of whom such a Depository Participant holds an interest in the Bonds (an "Indirect
Participant"). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall
have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any
Depository Participant with respect to any ownership interest in the Bonds, or (ii) the delivery to any Depository
Participant or any Indirect Participant or any other Person, other than a registered owner of a Bond, of any amount
with respect to principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person other
than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a Bond evidencing the obligation of
the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by
DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or
drafts being mailed to the holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC.
In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described
herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC
or the City determines that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain
certificated Bonds, the City shall notify the Paying Agent/Registrar, DTC, and Depository Participants of the
availability within a reasonable period of time through DTC of certificated certificates, and the Bonds shall no
longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may
determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a
securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the
City and the Paying Agent/Registrar do not select such alternate securities depository system then the Bonds may be
registered in whatever names the registered owners of Bonds transferring or exchanging the Bonds shall designate,
in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in
the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest
on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner
provided in the Representation Letter.
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 City
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 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
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 City 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 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) Authority for Issuing Replacement Bonds. In accordance with Chapter 1201, Texas Government Code,
as amended, 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
Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in
Section 4 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 City 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
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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 Akin, Gump, Strauss, Hauer
& Feld, L.L.P., Bond Counsel and the assigned CUSIP numbers may, at the option of the City, 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 CITY. (a) General Covenants. The City covenants and represents that:
(i) The City 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 City 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 City 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
(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 inspection upon
request from any Owner.
(c) Covenants Regarding Tax Matters. The City 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 Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in "gross
income" for federal income tax purposes. In furtherance thereof, the City specifically covenants as follows:
(i) To refrain from taking any action which would result in the Bonds being treated as "private activity
bonds" within the meaning of section 141(a) of the Code;
(ii) To take any action to assure that no more than 10% of the proceeds of the Bonds or the projects
financed therewith 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 or the projects financed therewith 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 Resolution 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 141(b)(2) of the Code;
(iii) To take any action to assure that in the event that the "private business use" described in paragraph
(ii) hereof exceeds 5% of the proceeds of the Bonds or the projects financed therewith, 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;
(iv) 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 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;
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(v) To refrain from taking any action which would result in the Bonds being "federally guaranteed"
within the meaning of section 149(b) of the Code;
(vi) Except to the extent permitted by section 148 of the Code and the regulations and rulings
thereunder, 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 defined in
section 148(b)(2) of the Code) which produces a materially higher yield over the term 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 149(d) of the Code (relating to
advance refundings);
(viii) Except to the extent otherwise provided in section 148(f) of the Code and the regulations and
rulings thereunder, 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(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;
(ix) To maintain such records as will enable the City to fulfill its responsibilities under this subsection
and sections 141 and 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; and
(x) To comply with the information reporting requirements of section 149(e) of the Code.
For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred proceeds
and, for purposes of paragraphs (ii) and (iii), proceeds of the refunded bonds.
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 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 adversely affect the exclusion from gross income 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 exclusion from gross income of interest on the Bonds under section 103 of the Code.
Proper officers of the City charged with the responsibility of issuing the Bonds are hereby authorized and
directed to execute any documents, certificates, or reports required by the Code and to make such elections, on
behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the
Bonds.
Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion
from gross income of interest on the Bonds under section 103 of the Code the covenants contained in this subsection
shall survive the later of the defeasance or discharge of the Bonds.
(d) Covenants Regarding Sale, Lease, or Disposition of Financed Property. The City covenants that the
City will regulate the use of the property financed, directly or indirectly, with the proceeds of the Bonds and will not
sell, lease, or otherwise dispose of such property unless (i) the City takes the remedial measures as may be required
by the Code and the regulations and rulings thereunder in order to preserve the exclusion from gross income of
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interest on the Bonds under section 103 of the Code or (ii) the City seeks the advice of nationally -recognized bond
counsel with respect to such sale, lease, or other disposition.
Section 13. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The City hereby
designates the Bonds as "qualified tax-exempt obligations" as defined in section 265(b)(3) of 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 obligations, which when aggregated with the Bonds, will result in more than $10,000,000 of "qualified
tax-exempt obligations" being issued; (b) the City reasonably anticipates that the amount of tax-exempt obligations
issued during 2000 by the City (including any subordinate entities) will not exceed $10,000,000; and (c) the City
will take such action which would assure, or to refrain from such action which would adversely affect, the treatment
of the Bonds as "qualified tax-exempt obligations."
Section 14. SALE OF BONDS. The sale of the Bonds to the Initial Purchasers pursuant to the taking of
competitive bids at a price of par, plus accrued interest to the date of delivery and a premium of $ is
hereby confirmed. It is hereby officially found, determined, and declared that the Initial Purchasers submitted the
bid which results in the lowest true interest cost to the City and delivery of the Bonds to the Initial Purchasers shall
be made as soon as practicable after the adoption of this Ordinance, upon payment therefor, in accordance with the
terms of sale. The Initial Bond shall be registered in the name of the Initial Purchasers. The officers of the City 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 City 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 16. CONTINUING DISCLOSURE UNDERTAKING. (a) Annual Reports. The City shall provide
annually to each nationally -recognized municipal securities information repository ("NRMSIR") and to any state
information depository ("SID"), within six months after the end of each fiscal year ending in or after 2000, financial
information and operating data with respect to the City of the general type included in the final Official Statement
authorized by Section 15 of this Ordinance, being the information described in Exhibit B hereto. Any financial
statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit
B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the
period during which they must be provided. If the audit of such financial statements is not complete within such
period, the City shall provide audited financial statements for the applicable fiscal year to each NRMSIR and any
SID when and if the audit report on such statements becomes available.
If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date
of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial
information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may be set forth in full
in one or more documents or may be included by specific reference to any document (including an official statement
or other offering document) if it is available from the Municipal Securities Rulemaking Board (the "MSRB") that
theretofore has been provided to each NRMSIR and any SID or filed with the Securities and Exchange Commission
("SEC").
(b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the Municipal
Securities Rulemaking Board ("MSRB"), in a timely manner, of any of the following events with respect to the
Bonds, if such event is material within the meaning of the federal securities laws: (i) principal and interest payment
15
delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on debt service reserves reflecting financial
difficulties; (iv) unscheduled draws on credit enhancements reflecting financial difficulties; (v) substitution of credit
or liquidity providers, or their failure to perform; (vi) adverse tax opinions or events affecting the tax-exempt status
of the Bonds; (vii) modifications to rights of holders of the Bonds; (viii) calls; (ix) defeasances; (x) release,
substitution, or sale of property securing repayment of the Bonds; and (xi) rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by
the City to provide financial information or operating data in accordance with this Section by the time required by
this Section.
(c) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the
covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person"
with respect to the Bonds within the meaning of SEC Rule 15c2-12 (the "Rule"), except that the City in any event
will give notice of any deposit made in accordance with Section 17 above that causes the Bonds no longer to be
outstanding and any call of Bonds made in connection therewith.
The provisions of this Section are for the sole benefit of the Owners and beneficial owners of the Bonds,
and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or
claim hereunder to any other person. The City undertakes to provide only the financial information, operating data,
financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not
hereby undertake to provide any other information that may be relevant or material to a complete presentation of the
City's financial results, condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City does not make any
representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at
any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR BENEFICIAL
OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR
WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC
PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall comprise a breach
of or default under this Ordinance for purposes of any other provisions of this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City
under federal and state securities laws.
The provisions of this Section may be amended, supplemented, or repealed by the City from time to time
under the following circumstances, but not otherwise: (1) to adapt to changed circumstances that arise from a change
in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if
the provisions of this Section, as so supplemented or amended, would have permitted an underwriter to purchase or
sell Bonds in the present offering in compliance with the Rule and either the Owners of a majority in aggregate
principal amount of the outstanding Bonds consent to such amendment, supplement, or repeal, or any State agency
or official determines that such amendment, supplement, or repeal will not materially impair the interests of the
beneficial owners of the Bonds, (2) upon repeal of the applicable provisions of the Rule, or any judgment by a court
of final jurisdiction that such provisions are invalid, or (3) in any other circumstance or manner permitted by the
Rule.
Section 17. FURTHER PROCEDURES. The Mayor, the City Secretary, the City Manager, the Finance
Director, the City's Financial Advisor, and all other officers, employees, attorneys, and agents of the City, and each
of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any
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time to do and perform all such acts and things and to execute, acknowledge, and deliver in the name and under the
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 terms and provisions of this Ordinance, the Bonds, and the Official Statement.
Prior to the initial delivery of the Bonds, the Mayor and Bond Counsel to the City are hereby authorized and directed
to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized by this
Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the
transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating
agencies, or (iii) obtain the approval of the Bonds by the Texas Attorney General's office.
Section 18. ORDINANCE A CONTRACT, AMENDMENTS. This Ordinance shall constitute a contract
with the Owners, from time to time, of the Bonds, binding on the City and its successors and assigns, and shall not
be amended or repealed by the City as long as any Bond remains outstanding except as permitted in this Section.
The City 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 formal defect or omission herein, or (iv) in connection with any
other change which is not: to the prejudice of the Owners. The City may, with the written 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 terms 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 City shall desire to make any amendment or
addition to or rescission of this Ordinance requiring consent of the Owners, the City 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 City 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 form of the copy thereof referred to in
such notice, thereupon, but not otherwise, the City may adopt such amendment, addition, or rescission in
substantially such form, 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 19. 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.
17
0
•
(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 March 27, 2000.
ATTEST:
--Ilq 11A 0. ddd
City Secretary, City of La Porte, Texas
18
v--
Mayor, Ci of La Porte, Teas
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT entered into as of March 15, 2000 (the
"Agreement"), by and between the CITY OF LA PORTE, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States
of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas
General Obligation Bonds, Series 2000" (the "Securities"), such Securities to be issued in fully registered form only
as to the payment of principal and interest thereon;
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the
"Ordinance" (hereinafter defined);
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the
payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration,
transfer, and exchange thereof by the registered owners thereof;
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full
power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to
the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer
the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered
owners thereof, all in accordance with this Agreement and the Ordinance.
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of
said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the
Securities.
Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in Schedule A attached hereto for the first year
of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days
prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
ARTICLE II. DEFINITIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:
"Bank Office" means the designated principal corporate trust office of the Bank as indicated on the
signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Bank Principal Payment Office" means Dallas, Texas.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer
by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the
Issuer, any one or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are
issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political subdivision of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition,
any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered
in lieu thereof pursuant to Section 4.06 hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice -Chairman of the
Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank
customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be
due and payable.
Section 2.02. Other Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the
meanings assigned to them in the recital paragraphs of this Agreement.
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The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this
Agreement.
ARTICLE III. PAYING AGENT
Section 3.01. Duties of Paving Agent. As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Principal Payment Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail,
first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on
the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to
the Bank, requested in writing by the Holder at the Holder's risk and expense.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on
the Securities on the dates specified in the Ordinance.
ARTICLE IV. REGISTRAR
Section 4.01. Security Resister - Transfers and Exchanges. The Bank agrees to keep and maintain for
and on behalf of the Issuer at the Bank Principal Payment Office books and records (herein sometimes referred to as
the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer,
exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the
Holders and containing such other information as may be reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register. A copy of the Security Register will be maintained at the offices
of the Bank's agent in Houston, Texas.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a
member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re -registration, transfer,
or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities
delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the
Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange
duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate
transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in
safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political
subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities.
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Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has currently available and currently utilizes at the time.
The Security Register may be maintained in written form or in any other form capable of being converted
into written form within a reasonable time.
Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer
may also inspect the information contained in the Security Register at any time the Bank is customarily open for
business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the
information into written form.
Unless required by law, the Bank will not release or disclose the contents of the Security Register to any
person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt
of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure
of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order
or such release or disclosure of the contents of the Security Register.
Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered
to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank.
The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and
delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such
destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and
regulations of the Securities and Exchange Commission.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen Securities. The Issuer hereby instructs the Bank,
subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute
and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in
substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of
evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer
and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation,
execution, and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or
destroyed, lost, or stolen.
Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section
3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and
Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06.
Section 4.08. Redemption of Securities. Securities which are redeemable before their stated maturity shall
be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV.
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Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the
expense of the Issuer not less than 30 or more than 45 days prior to the date of redemption, to each Registered
Owner of Securities to be redeemed and otherwise required by the Ordinance.
All notices of redemption shall include the CUSIP number and statement as to:
(a) the date of redemption;
(b) the price of the Securities expressed as a percentage of par amount of the Securities;
(c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be
redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be
redeemed;
(d) that on the date of redemption the principal of each of the Securities to be redeemed will become due
and payable and that the interest thereon shall cease to accrue from and after said date; and
(e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of
redemption at the designated principal payment office of the Bank, and the address of such office.
The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and
information services based upon the then current guidelines of the Securities and Exchange Commission relating to
redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer,
shall also provide notice to any other addressees as the Issuer shall designate in writing.
ARTICLE V. THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to
use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise
incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer
or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall
not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or
document supplied by Issuer.
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(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel
shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it
hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or
by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the
Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
Section 5.04. May Hold Securities. The Bank, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.05. Money Held by Bank. (a) Money held by the Bank hereunder shall be held for the benefit
of the Registered Owners of the Securities.
(b) The Bank shall be under no obligation to pay interest on any money received by it hereunder.
(c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the
payment of the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for
three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank
in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such
provisions are applicable to such amounts.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or
controversy over its person as well as funds on deposit, in either the District Court of Harris County, Texas , or the
United States Federal District Court for the Southern District of Texas, waive personal service of any process, and
agree that service of process by certified or registered mail, return receipt requested, to the address set forth in
Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the
right to file a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the
rights of any persons claiming any interest herein.
Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank
for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the exercise or performance of any of its powers or duties
under this Agreement.
Section 5.07. Interaleader. The Issuer and the Bank agree that the Bank may seek adjudication of any
adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State
District Court located in the State and County where either the Bank Office or the administrative offices of the
Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the
address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Comaany Services. It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent
depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will
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comply with the "Operational Arrangements," effective August 1, 1987, which establishes requirements for
securities to be eligible for such type depository trust services, including, but not limited to, requirements for the
timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE VI. MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by
both of the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.
Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other
document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown on the signature page of this Agreement.
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.
Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.08. Entire Agreement. This Agreement and the Ordinance constitute the entire agreement
between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between
this Agreement and the Ordinance, the Ordinance shall govern.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal
of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days
written notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b)
notice has been given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement
shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security
Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the
successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
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Section 6.11. Governing, Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
Attest:
By
Title
(BANK SEAL)
Attest:
By
City Secretary
(ISSUER SEAL)
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CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
By
Title _
Address:
600 Travis, Suite 1150
Houston, Texas 77002
CITY OF LA PORTE, TEXAS
By
Mayor
Address 604 West Fairmont
La Porte, Texas 77571
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SCHEDULE A
Paying Agent/Registrar Fee Schedule
(To be furnished by the Bank)
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EXHIBIT B
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 16 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually in accordance
with such Section are as specified and included in the Appendix or under the headings of the Official Statement
referred to below:
1. The audited financial statements of the City for the most recently concluded fiscal year.
2. The information included in the Official Statement under the headings "FINANCIAL
INFORMATION", "TAX COLLECTION PERIOD", "TAX COLLECTION RECORD", "TAX RATE
LIMITATIONS", "TAX RATE DISTRIBUTION', "TAX ADEQUACY", "CITY SALES TAX", "GENERAL
OBLIGATION BONDS AUTHORIZED BUT UNISSUED", "RATINGS ON OUTSTANDING GENERAL
OBLIGATIONS BONDS", "FLOATING DEBT OUTSTANDING", "PRINCIPAL TAXPAYERS",
"OVERLAPPING TAX RATE STATEMENT", "ESTIMATED DIRECT & OVERLAPPING DEBT
STATEMENT", "HISTORY OF GENERAL FUND REVENUE AND EXPENDITURES", and "REVENUE
BONDS AUTHORIZED BUT UNISSUED".
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described in the notes to
the financial statements referred to in paragraph 1 above, as such principles may be changed from time to time to
comply with state law or regulation.
CERTIFICATE FOR ORDINANCE
We, the undersigned Mayor and City Secretary of the City of La Porte, Texas (the "City"), hereby
certify as follows:
1. The City Council of the City (the "Council") convened in regular session, open to the public,
on March 27, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll was called
of the members, to wit: Norman. Malone, Mayor, and the following City Councilmembers: Chuck
Engelken, Alton Porter, Guy Sutherland, Edward Clarke, Howard Ebow, Charlie Young, Deotis Gay, and
Peter Griffiths. All members of the Council were present, except ,
constituting a quorum. Whereupon among other business, the following was transacted at the Meeting: a
written ordinance entitled
ORDINANCE AUTHORIZING THE ISSUANCE OF $3,250,000 CITY OF LA PORTE,
TEXAS GENERAL OBLIGATION, SERIES 2000 AND ALL OTHER MATTERS
RELATED THERETO
(the "Ordinance") was duly introduced for the consideration of the Council and read in full. It was then
duly moved and seconded that the Ordinance be finally passed and adopted; and after due discussion,
such motion, carrying with it the adoption of the Ordinance prevailed and carried by the following vote:
YES: NOES: ABSTENTIONS:,
2. A true, full, and correct copy of the Ordinance adopted at the Meeting is attached to and
follows this Certificate; the Ordinance has been duly recorded in the Council's minutes of the Meeting;
the above and foregoing paragraph is a true, full, and correct excerpt from the Council's minutes of the
Meeting pertaining to the adoption of the Ordinance; the persons named in the above and foregoing
paragraph are duly chosen, qualified, and acting officers and members of the Council as indicated therein;
each of the officers and members of the Council was duly and sufficiently notified officially and
personally, in advance, of the time, place, and purpose of the Meeting, and that the Ordinance would be
introduced and considered for adoption at the Meeting and each of such officers and members consented,
in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and
public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551,
Texas Government Code, as amended.
3. Martha Gillett is the duly appointed and acting City Secretary of the City.
SIGNED AND SEALED THIS March 27, 2000.
0 -1 al & A),a/
City gecretary
City of La Porte, Texas
(CITY SEAL)
Mayor
City of La Porte, Texas
PAYING AGENTIREGISTRAR AGREEMENT
THIS PAYING AGENTIREGISTRAR AGREEMENT entered into as of March 15, 2000 (the
"Agreement"), by and between the CITY OF LA PORTE, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States
of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas
General Obligation Bonds, Series 2000" (the "Securities"), such Securities to be issued in fully registered form only
as to the payment of principal and interest thereon;
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the
"Ordinance" (hereinafter defined);
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the
payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration,
transfer, and exchange thereof by the registered owners thereof;
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full
power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to
the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer
the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered
owners thereof, all in accordance with this Agreement and the Ordinance.
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of
said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the
Securities.
Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in Schedule A attached hereto for the first year
of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days
prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
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ARTICLE II. DEFINITIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:
"Bank Office" means the designated principal corporate trust office of the Bank as indicated on the
signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Bank Principal Payment Office" means Dallas, Texas.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer
by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the
Issuer, any one or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are
issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political subdivision of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition,
any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered
in lieu thereof pursuant to Section 4.06 hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice -Chairman of the
Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank
customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be
due and payable.
Section 2.02. tither Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the
meanings assigned to them in the recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this
Agreement.
ARTICLE III. PAYING AGENT
Section 3.01. Duties of Paving Assent. As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Principal Payment Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail,
first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on
the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to
the Bank, requested in writing by the Holder at the Holder's risk and expense.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on
the Securities on the dates specified in the Ordinance.
ARTICLE IV. REGISTRAR
Section 4.01. Security Register - Transfers and Exchanges. The Bank agrees to keep and maintain for
and on behalf of the Issuer at the Bank Principal Payment Office books and records (herein sometimes referred to as
the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer,
exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the
Holders and containing such other information as may be reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register. A copy of the Security Register will be maintained at the offices
of the Bank's agent in Houston, Texas.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a
member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re -registration, transfer,
or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities
delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the
Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange
duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate
transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in
safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political
subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities.
Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has currently available and currently utilizes at the time.
The Security Register may be maintained in written form or in any other form capable of being converted
into written form within a reasonable time.
Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer
may also inspect the information contained in the Security Register at any time the Bank is customarily open for
business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the
information into written form.
Unless required by law, the Bank will not release or disclose the contents of the Security Register to any
person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt
of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure
of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order
or such release or disclosure of the contents of the Security Register.
Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered
to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank.
The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and
delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such
destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and
regulations of the Securities and Exchange Commission.
Section 4.06. Mutilated, Destroyed. Lost. or Stolen Securities. The Issuer hereby instructs the Bank,
subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute
and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in
substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of
evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer
and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation,
execution, and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or
destroyed, lost, or stolen.
Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section
3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and
Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06.
Section 4.08. Redemption of Securities. Securities which are redeemable before their stated maturity shall
be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV.
Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the
expense of the Issuer not less than 30 or more than 45 days prior to the date of redemption, to each Registered
Owner of Securities to be redeemed and otherwise required by the Ordinance.
All notices of redemption shall include the CUSIP number and statement as to:
(a) the date of redemption;
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(b) the price of the Securities expressed as a percentage of par amount of the Securities;
(c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be
redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be
redeemed;
(d) that on the date of redemption the principal of each of the Securities to be redeemed will become due
and payable and that the interest thereon shall cease to accrue from and after said date; and
(e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of
redemption at the designated principal payment office of the Bank, and the address of such office.
The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and
information services based upon the then current guidelines of the Securities and Exchange Commission relating to
redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer,
shall also provide notice to any other addressees as the Issuer shall designate in writing.
ARTICLE V. THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to
use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise
incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer
or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall
not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or
document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel
shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it
hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or
by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the
Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
Section 5.04. 1Nay Hold Securities. The Bank, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.05. Money Held by Bank. (a) Money held by the Bank hereunder shall be held for the benefit
of the Registered Owners of the Securities.
(b) The Bank shall be under no obligation to pay interest on any money received by it hereunder.
(c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the
payment of.the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for
three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank
in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such
provisions are applicable to such amounts.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or
controversy over its person as well as funds on deposit, in either the District Court of Harris County, Texas , or the
United States Federal District Court for the Southern District of Texas, waive personal service of any process, and
agree that service of process by certified or registered mail, return receipt requested, to the address set forth in
Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the
right to file a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the
rights of any persons claiming any interest herein.
Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank
for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the exercise or performance of any of its powers or duties
under this Agreement.
Section 5.07. Interpieader. The Issuer and the Bank agree that the Bank may seek adjudication of any
adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State
District Court located in the State and County where either the Bank Office or the administrative offices of the
Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the
address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Company Services. It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent
depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will
comply with the "Operational Arrangements," effective August 1, 1987, which establishes requirements for
securities to be eligible for such type depository trust services, including, but not limited to, requirements for the
timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE VI. MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by
both of the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.
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Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other
document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown on the signature page of this Agreement.
Section 6.04. Effect of Headines. The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.
Section 6.05. Successors and Assiens. All covenants and agreements herein by the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Aereement. Nothing herein, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.08. ]Entire Aereement. This Agreement and the Ordinance constitute the entire agreement
between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between
this Agreement and the Ordinance, the Ordinance shall govern.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal
of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days
written notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b)
notice has been given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement
shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security
Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the
successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas.
(Remainder of this page intentionally left blank.)
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
Attest:
By
Title
(BANK SEAL)
Attest:
By a. Alal
AC #`Sdecretary
(ISSUER SEAL)
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
By
Title
Address: 600 Travis, Suite 1150
Houston, Texas 77002
CITY OF LA PORTE, TEXAS
By Z,11,1 ��-
Mayor'
Address 604 West Fairmont
LaPorte, Texas 77571
EXECUTION PAGE OF PAYING AGENTIREGISTRAR AGREEMENT
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GENERAL CERTIFICATE
We, the undersigned Mayor and City Secretary, respectively, of the City of La Porte, Texas (the "City"),
hereby certify as follows:
1. This certificate is executed for and on behalf of the City for the benefit of the Attorney General of the
State of Texas and the owners of the "City of La Porte, Texas General Obligation Bonds, Series 2000 (the "Bonds"),
dated March 15, 2000, in the principal amount of $3,250,000, authorized by an ordinance passed by the City Council
of the City on March 27, 2000 (the "Ordinance").
2. The City is a duly incorporated Home Rule City, having more than 5,000 inhabitants, operating and
existing under the laws of the State of Texas and the duly adopted Home Rule Charter of the City, which Charter has
not been changed or amended since the issuance of the most recent obligations by the City entitled "City of La
Porte, Texas General Obligation Bonds, Series 1998".
3. No litigation of any nature has ever been filed pertaining to, affecting, questioning, or contesting: (a) the
Ordinance; (b) the issuance, execution, delivery, payment, security, or validity of the Bonds; (c) the authority of the
governing body and the officers of the City to issue, execute, and deliver the Bonds; or (d) the validity of the
corporate existence, the current tax rolls, or the Charter of the City; and no litigation is pending pertaining to,
affecting or contesting the boundaries of the City.
4. The currently effective ad valorem tax appraisal rolls of the City are those for the year 1999, being the
most recently approved tax rolls of the City; the City Council of the City has caused the taxable property in the City
to be assessed as required by law; and the net valuation of taxable property in the City according to the aforesaid tax
rolls for said year, as delivered to the City Secretary of the City, and finally approved and recorded by the City
Council of the City, is $1,465,045,690.
5. A true, correct, and complete statement of all outstanding indebtedness of the City including the Bonds
payable from taxes is attached hereto as Exhibit A.
6. Exhibit B, which is attached hereto and made a part hereof, contains a true and correct schedule showing
the annual requirements of all of the outstanding indebtedness of the City payable from taxes, together with the
Bonds, as it appears in the official records of the City.
7. (a) The City is not in default as to any covenant, condition, or obligation contained in any ordinance
authorizing obligations payable in whole or in part from ad valorem taxes, and each of the special funds and
accounts, if any, established by such ordinances contain the amounts now required to be on deposit in such fund or
account.
(b) There has been appropriated from funds lawfully made available to the City sufficient money to make
the interest payment on the Bonds for September 15, 2000.
8. No proceeding or authority foi `' `-' y of the Certificates has been repealed,
rescinded, amended, or revoked.
SIGNED AND SEALED this—jIvi 4L do M-'- VAI'6.
_
�-
City cretary M or
City of LaPorte, Texas City of LaPorte, Texas
(SEAL)
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SIGNATURE IDENTIFICATION AND NO -LITIGATION CERTIFICATE
We, the undersigned Mayor and City Secretary, respectively, of the City of La Porte, Texas (the "Issuer"),
hereby certify as follows:
(a) This certificate is executed and delivered with reference to "City of LaPorte, Texas General Obligation
Bonds, Series 2000 dated March 15, 2000, in the principal amount of $3,250,000 authorized by an ordinance passed
by the City Council of the Issuer on March 27, 2000 (the "Bonds").
(b) Each of us signed the Bonds by causing a facsimile of our manual signatures to be printed or
lithographed on each of the Bonds, and we hereby adopt said facsimile signatures as our own, respectively, and
declare that said facsimile signatures constitute our signatures the same as if we had manually signed each of the
Bonds.
(c) The Bonds are substantially in the form, and each of them has been duly executed and signed in the
manner, prescribed in the ordinance authorizing the issuance thereof.
(d) At the time we so executed and signed the Bonds we were, and at the time of executing this certificate
we are, the duly chosen, qualified, and acting officers indicated therein, and authorized to execute and sign the same.
(e) No litigation of any nature has been filed or is now pending to restrain or enjoin the issuance or delivery
of any of the Bonds, or which would affect the provision made for their payment or security, or in any manner
questioning the proceedings or authority concerning the issuance of the Bonds, and that so far as we know and
believe no such litigation is threatened.
(f) Neither the corporate existence nor boundaries of the Issuer is being contested; no litigation has been
filed or is now pending or threatened which w ' ' "" ;ers of the Issuer to issue, execute,
sign, and deliver any of the Bonds; and no aui ice of any of the Bonds have been
repealed, revoked, or rescinded.
Vol
We have caused the official seal o '1'yI
(g)� ted, or lithographed on each of the
Bonds; and said seal on each of the Bonds has aIWO declared to be, the official seal of
the Issuer.
EXECUTED and delivered t
MANUAL SIGNATURES
N tman L. Malone
. a Gillett
(Remainder of page intentionally left blank)
OFFICIAL TITLES
Mayor
City Secretary
OK TO DATID
STATE OF TEXAS
COUNTY OF HARRIS
The undersigned, a Notary Public, certifies and represents Norman L. Malone and Martha Gillett are
known to me to be the Mayor and the City Secretary, respectively, of the City of La Porte, Texas, and in my
presence each executed this instrument before me in the capacity represented and each of said person's signature
appearing above is genuine.
Given under my hand and seal of office this
(NOTARY SE s JAMS H. GOUMB
:
€'•'WMY COMMISSION EXPIRES
4 , oewmber 27, woo
0
2
day of March, 2000.
a (I Wii
ay Public
0
•
March 27, 2000
The Attorney General of Texas
Public Finance Section
300 West 15th, 9th Floor
Austin, Texas 78701
The Comptroller of Public Accounts
Attention: Melissa Mora
208 East I Oth , Room 448
Austin, Texas 78701-2407
Re: City of La Porte, Texas General Obligation Bonds, Series 2000
TO THE ATTORNEY GENERAL
The captioned issue of bonds (the "Bonds") is being sent to you for your examination and approval and we
enclose one executed but undated Signature Identification and No -Litigation Certificate and one executed but
undated General Certificate. Upon approval of the Bonds, you are authorized to insert the date of the approval in
such certificates. If any litigation should develop, or if any other event should occur which would make any
certificate inaccurate, before you approve the Bonds, we will notify you at once by both telephone and facsimile.
With this assurance, you can rely on the accuracy of such certificates at the time you approve the Bonds, unless we
advise you otherwise.
After you have approved the Bonds, please deliver them to the Comptroller of Public Accounts of the State
of Texas for registration.
TO THE COMPTROLLER
The Bonds will be sent to you for registration. After the Comptroller's Registration Certificate on the
Bonds is duly signed and sealed, you are hereby authorized and directed to send the Certificates by overnight
delivery to Akin, Gump, Strauss, Hauer & Feld, L.L.P., Attorneys at Law, 300 Convent, Suite 1500, San Antonio,
Texas, 78205, attention of M. Paul Martin (or otherwise as directed by Mr. Martin), together with four copies of
each of the following:
(1) Attorney General's Approving Opinion.
(2) Comptroller's Signature Certificate.
Very truly yours,
CITY OF LA PORTE, TEXAS
Ma or
• 0
OFFICIAL STATEMENT CERTIFICATE
On behalf of the City of La Porte, Texas (the "City"), I, the duly acting City Manager of the City,
acting in my official capacity, do hereby certify with respect to "City of La Porte, Texas General
Obligation Bonds, Series 2000" (the "Bonds"), that:
(a) the Official Statement has been authorized and approved by the City Council;
(b) to the best of my knowledge and belief after reasonable investigation, neither the Official
Statement nor any amendment or supplement thereto contains any untrue statement of a material fact or
omits to state any material fact necessary to make the statements therein, in light of circumstances in
which they were made, not misleading;
(c) since the date
forth in an amendment or
amendment or supplement;
(d) there has not be
since the date of such Offic
EXECUTED this
ent has occurred which should have been set
tement which has not been set forth in such
in the operation or financial affairs of the City
City Manager
I!
Farm $038-G Information rn for Tax -Exempt Governmental gations
(Rev. May 1999) lender Internal Revenue Code section 149(e) �i
► See separate instructions.
Department Rev of the treasury Caution: Use Form 8038-GC if the issue rice is under $100,000.
Internal Revenue Service /�
Reporting Authority
OMB No. 1545-0720
If Amended Return_ rhorlr horn
1 Issuer's name
2 Issuer's employer identification number
City of La Porte
74 6001552
3 Number and street (or P.O. box if mail is not delivered to street address)
Room/suite
4 Report number
504 West Fairmont
G 2000 — 1
5 City, town, or post office, state, and ZIP code
6 Date of issue
La Porte, TX 77571
7 Name of issue
8 CUSIP number
General Obligation Bonds, Series 2000
9 Name and title of officer or legal representative whom the IRS may call for more information
10 Telephone number of officer or legal representative
M. Paul martin, Es
( 210 ) 281-7084
■-r.IM type or Issue tcnectt appucaofe oox(es) and enter the issue price) See instructions and attach schedule
11 ❑ Education . . . . . . . . . . . . . . .
12 ❑ Health and hospital , , , , , , , , , , , , , , , , , , , , , ,
13 ❑ Transportation . . . . . . . . . . . . . . . . . . . . .
14 ❑ Public safety. . . . . , . . , ,
15 ❑ Environment [including sewage bonds) , , , , , , , , , , , , , , , ,
16 ❑ Housing . . . . . . . . . . . . . . . . . .
17 ❑ Utilities . . . . . . . . . . . . . . . .
18 ❑ Other. Describe ►
19 If obligations are TANS or RANs, check box ► ❑ If obligations are BANS, check box ► ❑
20 If obligations are in the form of a lease or installment sale, check box ► ❑
11
12
13
14
15
16
17
18
' Descriotion of Obligations. fComnietP fnr the pntirp icci is fnr tnrhir-h this fnrm is Inninn MnA i
(a) Final maturity date
(b) Issue price
(c) Stated redemption
price at maturity
(d) Weighted
average maturity
(e) Yield
$
21
$
years
%
Uses VI rroct:eus or Dona Issue tinciuding underwriters' discount
22
Proceeds used for accrued interest . . . . . . . . . . . . . . . . .
22
23
Issue price of entire issue (enter amount from line 21, column (b)) . . . . .
. , ,
23
24 Proceeds used for bond issuance costs (including underwriters" discount) 24
25
Proceeds used for credit enhancement . . . . , . , , , , , 25
26
Proceeds allocated to reasonably required reserve or replacement fund 26
27
Proceeds used to currently refund prior issues . . . . . , , 27
28
Proceeds used to advance refund prior issues . . . . . . . . 28
29
Total (add lines 24 through 28) . . . . . . . . . . . . . .
29
30
Nonrefunding jRroceeds of the issue (subtract line 29 from line 23 and enter amount here)
. .
. .
30
'
Descri tion of Refunded Bonds (Complete this part only for refunding
bonds.
31
Enter the remaining weighted average maturity of the bonds to be currently refunded ,
. . ► years
32
33
34
Enter the remaining weighted average maturity of the bonds to be advance refunded
Enter the last date on which the refunded bonds will be called .
Enter the date(s) the refunded bonds were issued ►
► years
. ►
'
Miscellaneous
35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . 35
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) 36a
b Enter the final maturity date of the guaranteed investment contract ►
37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units 37a
b If this -issue is a loan made from the proceeds of another tax-exempt issue, check box ► ❑ and enter the name of the
issuer ► :-;ue ►
38 If the issuer has designated the issue under sectior tption), check box . . . ► ❑
• .39• -If the issuer has elected to pay a penalty in lieu of; ;' , , , , , , . . , , 10.0
4U'. lffie issuer has identified a hedge, check box r•-, ' 1100
Under penalties of perjury, I declare that I have examine: �„ f" i yes �'' id statements, and to the best of my knowledge
Y and belief, they are true, correct, and complete. w
Vorman L. Malone, Mayor
. . . . gnature fif is er's authof4zedrepresentadve a or print name and title
For Paperwork Reduction Act Notice, see page 2 of talc 111QuN. LAV114. %,ciu ivu. ud773S Form 8038-G (Rev. 5.99)
0 0
REQI'EST FOR CITY COUNCIL AGENDA ITEM
AGENDA DATE 03/27/2000 REQUESTED BY Jeff Litchfield, Finance Director/ACM
REPORT; RESOLUTION; XX ORDINANCE;
At 6:00 p.m. on March 27, 2000, the City of La Porte plans to accept bids for the issuance of
Certificates of Obligation.
The Certificates of Obligation that will be issued total $3,000,000 and represent a specific project
that was approved by the voters in the January 16, 1999 election. The proceeds of this issue will go
towards the construction of the new Library. This debt will be repaid using the proceeds of the
Section 4B % cent Sales Tax.
In order to complete the sale, the City of La Porte needs to adopt the attached ordinance, which was
prepared by Paul Martin of Akin, Gump, Strauss, Hauer, & Feld, LLP.
ACTION REQUIRED BY COUNCIL:
Approve ordinance authorizing issuance of $3,000,000 Certificates of Obligation, Series 2000.
FUND N/A ACCT NUM:
APPROVED FOR CITY COUNCIL AGENDA
d& 45;;�s
R T. HERRERA, CITY MANAGER
FUNDS AVAILABLE:
/0,5
bfrE
TABULATION OF BIDS CONT... ' •
RECEIVED
Received
March 27, 2000
on
CITYOF LA PORTE
(Harris County, Texas)
$3,000,000 Certificates of Obligation, Series 2000
A P? 0 4 2000
CITY SECRETARY'S
OFFICE
Ratings: (Insured by M.B.I.A.)
Moody's - "AO" Insured - "Aaa"
S&P's - "A+" Insured - "AAA" _ Bond Buver Index: 5.76%
Effective
Bidder
Maturities
Rate
Interest Cost
Interest Rate
First Tennessee Capital Markets
2001-2009
6.00%
GIC:$1,750,275.00
5.5564%
2010
5.50%
Prem: 0.00
2011
5.25%
NIC:$1,750,275.00
2012-2013
5.30%
2014-2015
5.40%
2016-2020
5.50%
------------------------------------------------------------------------------------------------------------------
Griffin, Kubik, Stephens & Thompson, Inc.
2001
5.50%
GIC: $1,781,662.50
5.6560%
2002-2009
6.00%
Prem: 0.00
2010
5.60%
NIC: $1,781,662.50
2011-2012
5.30%
2013-2014
5.40%
2015
5.50%
2016
5.60%
2017
5.625%
2018
5.70%
------------------------------------------------------------------------------------------------------------------
2019-2020
5.75%
PAGE 2 OF 2
• TABULATION OF BIDS
Received
March 27, 2000
on
CITYOF LA PORTE
(Harris County, Texas)
$3,000,000 Certificates of Obligation, Series 2000
Ratings: (Insured by M.B.I.A.)
Moody's - "Aa3" Insured - "Aaa"
S&P's - "A+" Insured - "AAA" - Bond Buver Index: 5.76%
Effective
Bidder
Maturities
Rate
Interest Cost
Interest Rate
First Union Securities, Manager
2001-2009
7.00%
GIC:$1,713,000.00
5.4380%
Morgan Keegan*
2010
5.20%
Prem: 0.00
SAMCO Capital Markets*
2011-2020
5.00%
NIC:$1,713,000.00
------------------------------------------------------------------------------------------------------------------
Dain Rauscher, Inc., Manager
2001-2009
7.00%
GIC: $1,719,000.00
5.4555%
PaineWebber, Inc.*
2010
5.60%
Prem: 496.50
Salomon Smith Barney*
2011-2020
5.00%
NIC: $1,718,503.50
Duncan -Williams, Inc.*
------------------------------------------------------------------------------------------------------------------
William R. Hough & Co.
2001-2009
7.00%
GIC:$1,721,250.00
5.4642%
2010
5.75%
Prem: 0.00
2011-2020
5.00%
NIC:$1,721,250.00
------------------------------------------------------------------------------------------------------------------
A.G. Edwards & Sons, Inc.
2001-2006
7.00%
GIC:$1,739,850.00
5.5233%
2007
5.00%
Prem: 0.00
2008
5.10%
NIC:$1,739,850.00
2009-2011
5.15%
2012
5.20%
2013
5.25%
2014
5.35%
2015
5.40%
2016
5.45%
2017
5.50%
2018-2019
5.55%
2020
5.50%
------------------------------------------------------------------------------------------------------------------
First Southwest Company
2001-2007
6.25%
GIC:$1,740,300.00
5.5247%
2008
5.375%
Prem: 0.00
2009
5.15%
NIC:$1,740,300.00
2010
5.20%
2011
5.15%
2012
5.20%
2013
5.30%
2014
5.35%
2015
5.40%
2016
5.45%
2017
5.50%
2018
5.55%
2019
5.60%
------------------------------------------------------------------------------------------------------------------
2020
5.65%
*Co-Manager PAGE 1 OF 2
TULATION OF BIDS RECEIVED
March 27, 2000
on
CITY OF LA PORTE, TEXAS
$3,000,000 Certificates of Obligation, Series 2000
ACCOUNT MANAGER INTEREST INTEREST INTEREST
AND MEMBERS MATURITY RATE MATURITY RATE COST
2001 J % 2011 `� ':,' % GIC $
2002 I % 2012 % Prem
2003 I % 2013 % NIC $ J
2004 1 % 2014 % EIR '
2005 % 2015
2006 % 2016 %
2007 % 2017
f 2008 % 2018 %
., 2009 ; > % 2019 1 %
2010 ' = % 2020 0/0
2001 l � '.� � % 2011 ^ � - % GIC $
2002 % 2012 % Prem
2003 % 2013 % MC $ i
1 2004 % 2014 % EIR =. t
2005 % 2015 %
2006 1 % 2016 %
J 2007 i % 2017 %
2008 % 2018 %
2009 % 2019 %
2010 J % 2020 %
2001 % 2011 % GIC $
2002 % 2012 % Prem
2003 % 2013 % MC $
2004 % 2014 % EIR
2005 % 2015 %
2006 % 2016 %
2007 % 2017 %
2008 % 2018 %
2009 % 2019 %
2010 % 2020 %
2001 % 2011 % GIC $
2002 % 2012 % Prem
2003 % 2013 % NIC $
2004 % 2014 % EIR
2005 % 2015 %
2006 % 2016 %
2007 % 2017 %
2008 % 2018 %
2009 % 2019 %
2010 % 2020 %
2001 % 2011 % GIC $
2002 % 2012 % Prem
2003 % 2013 % NIC $
2004 % 2014 % EIR
2005 % 2015 %
2006 % 2016 %
2007 % 2017 %
2008 % 2018 %
2009 % 2019 %
2010 % 2020 %
• TABULATION OF BIDS RECAD
March 27, 2000
on
CITY OF LA PORTE, TEXAS
$3,000,000 Certificates of Obligation, Series 2000
ACCOUNT MANAGER
INTEREST
INTEREST
INTEREST
AND MEMBERS
MATURITY
RATE
MATURITY
RATE
COST
2001
�� v' -=' %
2011
"S %
GIC $
9 19 000, 00
2002
%
2012
%
Prem
(5 O
2003
%
2013
%
NIC $
1
1
2004
%
2014
%
EIR
2005
%
.2015
%
(✓
ti 2006
%
2016
%
2007
%
2017
%
+
2008
%
2018
' %
2009
%
2019
%
2010.
') %
2020
%
- -
-----2001
`� %
2011
'S, 1 %
GIC $
2002
1- %
2012
11 %
Prem
2003
%
2013
_ %
NIC $
I
} 1
2004
%
2014
%
EIR k yam.
+ J
2005
%
2015
%
2006
0 ✓ %
2016
%
2007
:.' -' %
2017
--
2008
< : is %
2018
- %
2009
I , %
2019
C . > S %
2010
► %
2020
s D %
-----GIC
--
--- —-----------2001
— •') � � %
- — 2011--------
J .v
%
$
i--� ;� � tea• `� i
2002
00 %
2012
^ + � %
Prem
�-
2003
%
2013
= ,,'' � %
NIC $
2004
%
2014
. Li %
EIR
Y ! J
2005
r %
2015
ti %
2006
i %
2016
I-- %
2007
%
2017
d
2008
i %
2018
2009
%
2019
S ' ti� %
2010
%
2020
J -%
2001
i1' • ?:' %
2011
5 • %
GIC $
5Z , 9 U J
I
1 \ �. ' �:L•
2002
2003
%
%
2012
2013
:3 () %
_ ^ [i %
Prem
MC $
'
�, i 00
~w�
2004
%
2014
�= . �( li %
EIR
'
2005
I %
2015
2006
i %
2016
%
2007
I %
2017
%
2008
%
2018
%
i
2009
) r' i %
2019
2010
%
2020
`• > > %
-- ----- 2001---
%
— 2011 ---
`�. 1 S % ----
GIC $ 1
9 4 C, ' C-0 .::•
2002
%
2012
'. - D %
Prem
�-
2003
%
2013
's 'A J %
NIC $ 1
1 LL :) ` :... - .
2004
► %
2014
S _ 3 S" %
EIR
't �'L*'7 -a),-
2005 `r
%
2015
'S' L/ 1 %
2006
%
2016
%
- 2007
%
2017
t, J %
t 2008
l S %
2018
2009
%
2019
<. %
2010
%
2020
. to
• W.
OFFICIAL BID FORM
CERTIFICATES OF OBLIGATION
Honorable Mayor and City Council
City of La Porte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,000,000 of Certificates, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ •— cu for Certificates maturing and bearing interest as follows.
Maturitt Interest Rate Maturitv Interest Rate
2001
Z re %
2011
2002
%
2012
2003
%
2013
2004
%
2014
2005
%,
2015
2006
%
2016
2007
%,
2017
2008
%
2018
2009
',', eT. %
2019
2010
5- �L,, %
2020
GROSS [.N'1i'-,.i -.s,i'COST
Less Premium
NET WTF.REST COST
EFFECTIVE INTEREST RATE
$ 7t -a� c
The Initial Certificate sliall be registered in the name of (syndicate
manager). The definitive Certificates will be registered to Cede R Co., the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Offering Price Certificate, in the torn enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank, Certified or Bank Cashiers Check of the
in the amount of $60,000 which represents our Good Faith Deposit and which is submitted in accordance with the terns as set
forth in the Official Notice of Sale.
•
We have read in detail the Official Notice ol'Sale and the Official Statement relating to the Certificates, and we have made
such investigations as we deem necessary relating to the City and the investment quality of the Certificates.
Svndicate
S U l'r�,d0/!/S ies 7r
Respectfully submitted,
13y: :vy.l.aq
Phone:/
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, 'Texas this th�� day of March, 2000.
ATl' ST:
a, AII&
Secretiry
Dated March 15, 2000
Mai
ACCUMULATED BOND YEARS
$3,000,000
City of La Porte, Texas
Certificates ol'Obligalion, Series 2000
Year of
Amount
Accumulated
Maturity
of Certificate
Bond Years
2001
$150,000
150.0000
2002
150.000
450.0000
2003
150.(lOO
9()(.).0()0O
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2000
150.000
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150.000
6.750.0000
2010
150.000
8.250.0000
2011
150,000
9, 900.0()O()
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
150,000
15,750.0000
2015
150;000
18,000.0000
2016
150,000
20,400.0000
2017
150,000
22,950.0000
2018
150,000
252650.0000
2019
150,000
28,500.0000
2020
150,000
31,500.0000
Averaae Maturity ......... 10.500 Years
Maturity: March 15
is
OFFICIAL BID FORM
CERTi.FiCATES OF OBLIGATION
Honorable Mayor and City Council
City of La Porte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terns and conditions of which Official Notice of Sale arc
made a part hereof.
For your legally issued $3,000,000 of Certificates, as described in said Official Notice of Sale. we will pay you par and accrued
interest, plus a cash premium of $ �- �/ , ? c for Certificates maturing and bearing interest as follows.
Maturih Interest Rate Maturit Interest Rate
2002 % 2012 %
2003 % 2013 %
2004 % 2014 %
200i % 2015 0/11
2006 % 2016 %,
2007 % 2017 %
2008 % 2018 %,
2009 C. v % 2019 %
2010 ., 6 0 % 2020 %
GROSS INTEREST COST
Less Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
$ l %l C. Gh'Z _1' L
-,- 4r. -n. 7%
DAIN RAUSCHER INC.
The Initial Certificate shall be registered in the name of (syndicate
manager). the definitive Certificates will be registered to Cede & Co., the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Offering Price Certificate, in the form enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the FkDST 8AAJK
in the amount of $60,000 which represents our Good Faith Deposit and which is submitted in accordance with the terns as set
forth in the Official Notice of Sale.
•
0
We have read in detail the OtFicial Notice of Sale and the Official Statement relating to the Certi.ticates, and we have made
such investigations as we deem necessary relating to the City and the investment quality of the Certificates.
Respectfully submitted;
Svndicate: DAIN RAUSCHER INC.
�p,tNE W�B/31� ZNG•
51A (..O /riOrJ Z I T1A BA" E q Bv: D
DUIIY.AIy — W f LLI A/VL 5 TN G. Phone: oZ l �.— 91?
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of L.a Porte, 'Texas this the
ATTEST:
Secretary
Dated March 15, 2000
day of March, 2000.
Ile' �J' A). e! -'- 0 E, I
Mayor
ACCUMULATED BOND YEARS
$3,000,000
Citv of La Porte, Texas
Certificates of Obligation. Series 2000
Year of
Amount
Accumulated
Maturitv
of Certificate
Bond Years
2001
$150,000
150.0000
2002
1500)O
450.0000
2003
150.000
900.0000
2004
150,000
1,500.0000
2005
150,()()()
2,250.0000
2006
150.000
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
8.250.0000
2011
150,000
9,900.0000
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
1502000
15,750.0000
2015
150,000
18,000.0000
2016
150.000
20,400.0000
2017
150,000
22,950.0000
2018
150,000
25,650.0000
2019
150,000
292500.0000
2020
150,000
31,500.0000
Average Maturitv ......... 10.500 Years
Maturity: March 15
r
OFFICIAL BID FORM
CERTIFICATES OF OBLIGATION
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
LaPorte, TX 77571
00
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,000,000 of Certificates, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ --0•=- for Certificates maturing and bearing interest as follows:
Maturity Interest Rate Maturi Interest Rate
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
GROSS INTEREST COST
Less Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
i %
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
$ -- 0
%
61>0 %
%
%
The Initial Certificate shall be registered in the name of (syndicate
manager). The definitive Certificates will be registered to Cede & Co., the nominee of The Depositon, Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Offering Price Certificate, in the form enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the
in the amount of $60,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set
forth in the Official Notice of Sale.
r � i
We have read in detail the Official Notice of Sale and the Official Statement relating to the Certificates, and we have made
such investigations as we deem necessary relating to the City and the investment quality of the Certificates.
Syndicate:
Respectfully submitted,
Ub'�;ll R. HOUGH & CO.
By:D Z /
Phone: (f 72 -
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of March, 2000.
ATTEST:
Secretary Mayor
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,000,000
City of La Porte, Texas
Certificates of Obligation, Series 2000
Year of
Amount
Accumulated
Maturity
of Certificate
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,000
3,150.0000
2007
150,000
4,200.0000
2008
150:000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
8,250.0000
2011
150,000
9,900.0000
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
150,000
15,750.0000
2015
150,000
18,000.0000
2016
150,000
20,400.0000
2017
150,000
22,950.0000
2018
150,000
25,650.0000
2019
150,000
28,500.0000
2020
150,000
31,500.0000
Average Maturity ......... 10.500 Years
Maturity: March 15
OFFICIAL BID FORM
CERTIFICATES OF OBLIGATION
Honorable Mayor and City Council
City of La Porte
604 W. Fairmont Parkway
La Porte, 'TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,000,000 of Certificates, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ for Certificates maturing and bearing interest as follows.
Maturity
Interest Rate
Maturity
Interest Rate
2001
(1C, %
2011
- i S
%
2002
%
2012
- -2 `l
%
2003
%
2013
.7
%
2004
%
2014
2005
%,
2015
45= (! G
2006
Y %
2016
%,
2007
.�� . GC% %
2017
2008
(G 'yo
2018
j
%
2001.)
-, 1 %
2019
,,
%
2010
S l J' `yo
2020
] '-� (1
%
GROSS INTEREST COST
Less Premium
NET INTEREST COST
EFFECTIVE INTEREST RATE
The Initial Certificate shall be registered in the name of :' G, E v" 'Z�3, "S ��J ��"' (syndicate
manager). The definitive Certificates will be registered to Cede X. Co., the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Offering Price Certificate, in the form enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the
in the amount of $60,000 which represents our Good l-aith Deposit and which is submitted in accordance with the terns as set
forth in the Official Notice ol'Sale.
We have read in detail the Official Notice of Sale and the Official Statement relating to the Certificates, and we have made
such investigations as we deem necessary relating to the City and the investment quality of the Certificates.
Respectfully submitted,
Syndicate: A. G, EDWARDS & SONS, INC,
13y:
Phone:
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte,1'exas this the day of March, 2000.
ATrEST: 4
Secretary M for
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,000,000
Cite of La Porte, Texas
Certificates of Obligation, Series 2000
Year of
Amount
Accumulated
Maturity
of Certificate
Bond Years
2001
$150,000
150.0000
2002
150.000
450.0000
2003
150,000
9011.0000
2004
150,000
1,500,0000
2005
150,0()0
2,250.0000
2006
150.000
3,150.0000
2007
150,000
4,200.0000
2008
150:000
5,400.0000
2009
150,000
6,750,0000
2010
15(),000
8.250.0000
2011
150,000
9,900.0000
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
150,000
152750.0000
2015
150,000
18,000.0000
2016
150,000
20,400.0000
2017
150,000
22,950.0000
2018
150,000
25,650.0000
2019
150,000
28,500.0000
2020
150,000
31,500,0000
Average Maturity ......... 10.500 Years
Maturity: March 15
OFFICIAL BID FORM
CERTIFICATES OF OBLIGATION
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council: -7 4� C (;
ict4:;CC.
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,000,000 of Certificates, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ -G- for Certificates maturing and bearing interest as follows:
Maturity
Interest Rate Maturity
Interest Rate
2001
, S % 2011
(
2002
% 2012
, ;Zp
%
2003
% 2013
_ j :3c
%
2004
% 20145
%
2005
% 2015
�, (,� (i
%
2006
% 2016
`�"j i� S
%
2007
% 2017
`� lj L
%
2008
_3 �� % 2018
S _�
%
2009
�� , , % 2019 5 , C-1 %
2010
% 2020
5.� ���
%
GROSS INTEREST COST $ (4-4
Less PremiumNET
INTEREST COST
$ 4..34
—S`t
EFFECTIVE INTEREST
RATE , S , Z /• ,,,
The Initial Certificate shall be registered in the name of First qntifhwPst Company (syrndicate
manager). The definitive Certificates will be registered to Cede & Co., the nominee of The Depository Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Offering Price Certificate, in the form enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashiers Check of the Frost National Bank Austin _
in the amount of $60,000 which represents our Good Faith Deposit and which is submitted in accordance with the terms as set
forth in the Official Notice of Sale.
We have read in detail the Official Notice of Sale and the Official Statement relating to the Certificates, and we have made
such investigations as we deem necessary relating to the City and the investment quality of the Certificates.
Respectfully submitted,
Syndicate: First Southwest Company
Pt A'-! +
By:Peter B. Stare — Sr VP
Phone: 2-14 9 5 3 4 0 0
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the day of March, 2000.
ATTEST:
0% v`
Secretary Miiyor
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,000,000
City of La Porte, Texas
Certificates of Obligation, Series 2000
Year of
Amount
Accumulated
Maturity
of Certificate
Bond Years
2001
$150,000
150.0000
2002
150,000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150,0()0
3,150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6,750.0000
2010
150,000
8,250.0000
2011
150,000
9,900.0000
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
150,000
15,750.0000
2015
150,000
18,000.0000
2016
150,000
20,400.0000
2017
150,000
22,950.0000
2018
150,000
25,650.0000
2019
150,000
28,500.0000
2020
150,000
31,500.0000
Average Maturity ......... 10.500 Years
Maturity: March 15
• _.
OFFICIAL BIDFORM
CERTIFICATES OF OBLIGATION
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council:
This bid is submitted under the bidding conditions of your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued. $3,000,000 of Certificates, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ — eo for Certificates maturing and bearing interest as follows.
Maturity
Interest Rate
Maturity
interest Rate
2001
o-Q
%
2011
2 ; %
2002
%
2012
.� 3.. %
2003
_
%
2013
3c' %
2004
%
2014
2005
%
2015
7 . 'f J %
2007
2008
%
%
2017
2018
%
%,
2009
C'p
%
2019
%
2010
S , 5 rr
%
2020
„� 5 �:. %
GROSS W'rUIREST COST
Less Premium
NET INTEREST COST
EFFECTIVE ITITEREST RATE
$ � 7SG 2 7j. ✓"
y %
The Initial Certificate shall be registered in the name of (syndicate
manager). The definitive Certificates will bc: registered to Cede & Co., the nominee of The Depositor' Trust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Offering Price Certificate, in the form enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the
in the amount of $60,000 which represents our Good Faith Deposit and which is submitted in accordance with the ternis as set
forth in the Official Notice of Sale.
We have read in detail the Official Notice of Sale and the ' Official Statement relating to the Certificates, and we have made
such investigations as we deem necessary relating to the City and the investment quality of the Cc ftcates.
Respectfully submitte
Syndicate: David S. Fast, Vice Presi ent
First Tennessee Capital Markets
13y: (800) 307-5405
Phone.
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the dal' of March, 2000.
Ai-rEST:
ice• �/'
Secretary M . �or
Dated March 15, 2000
ACCUMULATED BOND YEARS
$3,000,000
Citti• of La Porte, TexaS
Certificates of Obligation, Series 2000
Year of
Amount
Accumulated
Maturity
of Certificate
Bond Years
2001
$150,000
150.0000
2002
150.000
450.0000
2003
l5U,000
900.0000
2004
150,000
I ,5()0.()00()
2005
150,000
2,250.0000
2006
150.000
3,150.0000
2007
150.000
4,200.0000
2008
150,000
5,400.0000
2009
150:000
62750.0000
2010
150.000
8.250.0000
2011
150,000
9,900.0000
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
150,000
15,750.0000
2015
150,()0()
18,000.0000
2016
150,000
20,400.0000
2017
150,000
22,950.0000
2018
150,000
25,650.0000
2019
150,000
28,500.0000
2020
150,000
31,500.0000
Average Maturity ......... 10.500 Years
Maturity: March 15
OFFICIAL BID FORM
CERTIFICATES OF OBLIGATION
Honorable Mayor and City Council
City of LaPorte
604 W. Fairmont Parkway
LaPorte, TX 77571
Mayor and Members of the City Council: 0 "Si A A I t 1A-5clo) ea
This bid is submitted under the bidding conditions of ,your Official Notice of Sale dated March 13, 2000, of $3,000,000
City of La Porte, Texas, Certificates of Obligation, Series 2000, the terms and conditions of which Official Notice of Sale are
made a part hereof.
For your legally issued $3,000,000 of Certificates, as described in said Official Notice of Sale, we will pay you par and accrued
interest, plus a cash premium of $ — G'— for Certificates maturing and hearing interest as follows.
Maturity
Interest Rate
Maturity
Interest Rate
2001
5 . =� C'%'
Rio
2011
.� _ 3 pro
2002
�.G
%
2012
% >L %
2003
/
2013
%
2004
%
2014
%
2005
%
2013
'�'. t %,
2007
%
2017
%,
2008
%
2019
'-
2009
V
%
2019
S , + %
20 i 0
,:S. L. C
%
2020
. Z 7 %
GROSS INTERISTCOS'r $
Less Premium $ _
NET INTERESTCOST $ 1, 4 A 14 6_72 . S 0
EFFECTIVE INTEREST RATE :51 4-„4-54, r
The Initial Certificate shall be registered in the name of 615'�t_ 6)
(syndicate
manager). The definitive Certificates will be registered to Cede & Co., the nominee of The Depository'l'rust Company.
The undersigned agrees to complete, execute, and deliver to the City, on the next business day after award of the
Certificates, the Initial Oflering Price Certificate, in the form enclosed as Exhibit B to the Official Notice of Sale.
Attached hereto or submitted separately is a Bank Certified or Bank Cashier's Check of the �EfjIr, l
in the amount of $60,000 which represents our Good Faith Deposit and which is submitted in accordance with the terns as set
forth in the Official Notice of Sale.
•
We have read in detail the Official Notice of Sale and the Official Statement relating to the Certificates, and we have made
such investigations as %ve deem necessary relating to the City and the investment quality of the Certificates.
Syndicate:
Respectfully submitted,
on ,z
By:
Phone: ( Z
ACCEPTANCE CLAUSE
The foregoing bid is hereby in all things accepted by the City of La Porte, Texas this the
Ai-rEST:
Secretary
Dated March 15, 2000
r
Mayor
ACCUMULATED BOND YEARS
$3,000,000
Cite of La Porte, 'texas
Certificates of Obligation, Series 2000
Year of
Amount
Accumulated
Maturitv
of Certificate
Bond Years
2001
$150.000
150.0000
2002
150.000
450.0000
2003
150,000
900.0000
2004
150,000
1,500.0000
2005
150,000
2,250.0000
2006
150.000
3.150.0000
2007
150,000
4,200.0000
2008
150,000
5,400.0000
2009
150,000
6.750.0000
2010
150,000
8,250.0000
2011
150,()O0
9,900,0000
2012
150,000
11,700.0000
2013
150,000
13,650.0000
2014
150,000
15,750.0000
2015
150,000
18,000.0000
2016
150,000
20,400.0000
2017
150,()0()
22,950.0000
2018
150,000
25,650.0000
2019
150,()0()
28,500.0000
2020
150,000
31,500.0000
Average Maturit%.......... 10.500 Years
day of March, 2000.
Maturity: March 15
RECEIVED
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg,
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Ms. Laura Barrientos
Moody's Investors Service, Inc.
600 N. Pearl St., Suite 2165
Dallas, TX 75201
Re: City of LaPorte, Texas (Harris County)
$3, 250, 000 General Obligation Bonds, • Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Laura:
MAR 0 7 7000
CITY SECRETARY'S
OFFICE
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of La Porte, Texas, and the offering of the above captioned
obligations. Also enclosed are the City's Audit Reports for fiscal years ending September 30,
1998 and 1999, and the 1999-2000 Budget along with completed ratings applications. Please
review this material with an eye towards assignments of ratings.
In the meantime if you have any questions regarding the City's credit position or we can
furnish additional information, please let us know.
MKF: smt
Enclosures
cc: City of LaPorte
Yours very truly,
8w
ss K. Fetzer
Vice President
Established in 1919
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Mr. Alex Fraser
Standard & Poor's
500 N. Akard St., Suite 3200
Dallas, TX 75201
Re: City of La Porte, Texas (Harris County)
$3, 2.50, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Alex:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations. Also enclosed are the City's Audit Reports for fiscal years ending September 30,
1998 and 1999, and the 1999-2000 Budget along with completed ratings applications. Please
review this material with an eye towards assignments of ratings.
In the meantime if you have any questions regarding the City's credit position or we can
furnish additional information, please let us know.
MKF: smt
Enclosures
cc: City of La Porte
Yours very truly,
ZK a
Moss K. Fetzer
Vice President
Established in 1919
MORONEY, BEISSNER & CO., INC.
MunicpaI Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Mr. Mark Spinelli
First Vice President
AMBAC
One State Street Plaza, 16th Floor
New York, NY 10004
Re: City of La Porte, Texas (Harris County)
$3, 250, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Quaked Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Mark:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned.
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF:smt
enclosures
cc: City of LaPorte
Yours very truly,
Voss K. Fetzer
Vice President
Established in 1919
MORONEY, BEISSNER & CO., INC.
MunicpaI Financial Advisors
Two Post Oak Central BIdg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Ms. Lisa MacKay
MBIA
113 King St.
Armonk, NY 10504
Re: City of LaPorte, Texas (Harris County)
$3, 250, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax -Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Lisa:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and '1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF: smt
enclosures
cc: City of LaPorte
Yours very truly,
Moss K. Fetzer
Vice President
Established in 1919
• . •
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Mr. Tim Doyle
Financial Security Assurance, Inc.
350 Park Ave., 13th Fl.
New York, NY 10022
Re: City of La Porte, Texas (Harris County)
$3,250, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Qualified Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Tim:
713-960-8900
7131960-8904 FacsimiIie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you -by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF: smt
enclosures
cc: City of LaPorte
Yours very truly,
Moss K. Fetzer
Vice President
Established in 1919
MORONEY, BEISSNER & CO., INC.
Municpai Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
March 6, 2000
Ms. Debbie Delianites
FGIC
115 Broadway
New York, NY 10006
Re: City of La Porte, Texas (Harris County)
$3, 250, 000 General Obligation Bonds, Series 2000 and
$3, 000, 000 Certificates of Obligation, Series 2000
"Quaked Tax Exempt Obligations"
Proposed sale date is March 27, 2000
Dear Debbie:
713-960-8900
7131960-8904 Facsimilie
Enclosed please find our draft of the Official Notice of Sale, Official Statement and supporting
statistical data describing the City of LaPorte, Texas, and the offering of the above captioned
obligations which have a sale date of March 27, 2000. Also enclosed are the City's Audit
Reports for fiscal years ending September 30, 1998 and 1999, and the Budget for 1999-2000.
Please review this information with a eye towards qualifying these issues for insurance. We
would appreciate hearing from you by Friday, March 24th. In the meantime if you have any
questions or require additional information, please let us know.
MKF:smt
enclosures
cc: City of LaPorte
Yours very truly,
Moss K. Fetzer
Vice President
Established in 1919
From: Alaerman, uons Iaalaerman(mAK
Sent: Friday, March 24, 2000 11:29 AM
To: 'gillettm@ci.la-porte.tx.us'
Subject: [2000 CO] Ordinance.DOC
C.,_'i
[2(= c01
Ordinance.D= <<[2000 CO] Ordinance.DOC>> I just realized that the Ordinance for the
Certificates of Obligation didn't have the "Book -Entry" section in it, so I have added it. The new
version is attached.
9 •
ORDINANCE NO.
ORDINANCE AUTHORIZING THE ISSUANCE OF $3,000,000 CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000 AND OTHER MATTERS RELATED THERETO
WHEREAS, the City Council of the City of La Porte (the "Issuer" or the "City") deems it advisable to
issue Certificates of Obligation hereinafter described (the "Certificates") in the original aggregate principal amount
of $3,000,000 for the purpose of providing for the payment of contractual obligations to be incurred for financing
for construction and equipment for public library purposes and of the payment of contractual obligations for
professional services in connection therewith (including, but not limited to, architectural, financial advisory, legal,
and engineering).
WHEREAS, the Certificates hereinafter authorized and designated are to be issued and delivered for cash
pursuant to Chapters 1501 and 1502, Texas Government Code, as amended, and the Certificate of Obligation Act of
1971, Section 271.041 et seq, Texas Local Government Code, as amended (the "Act");
WHEREAS, the City Council has heretofore, on February 28, 2000, passed a resolution authorizing and
directing the City Secretary to give notice of intention to issue the Certificates, which notice has been duly published
in the Bayshore Sun, which is a newspaper of general circulation in the City, in its issues of , 2000
and , 2000, the date of the first publication being at least 14 days prior to the tentative date stated in
the notice for passage of this Ordinance;
WHEREAS, the City has received no petition from the qualified electors of the City protesting the issuance
of the Certificates; and
WHEREAS, it is considered to be in the best interest of the City that the Certificates be issued bearing the
date, interest rates, denominations, and maturities as hereafter provided;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS, THAT:
SECTION 1. AUTHORIZATION OF THE CERTIFICATES. There is hereby authorized to be issued and
delivered, a series of certificates of obligation of the City, to be known as "CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000" (the "Certificates"), in the original aggregate principal amount
of $3,000,000 payable from ad valorem tares and a limited pledge of $1,000 of the revenues of the City's parks and
recreation system, for the purposes described in the Form of Certificates contained in Section 3 hereof.
SECTION 2. DATE DENOMINATIONS NUMBERS AND MATURITIES OF THE CERTIFICATES.
The Certificates shall be dated as of March 15, 2000, shall be in denominations of $5,000 each or any integral
multiple thereof, shall be numbered I-1 for the Initial Certificate and consecutively from R-1 upward for the
definitive certificates and shall mature on March 15 in each of the years as provided below. The Certificates shall
bear interest at the rates per annum shown below from the dated date, and payable on September 15, 2000 and on
each March 15 and September 15 thereafter through the respective maturity date as shown below:
Year of
Principal Interest
Year of
Principal Interest
Maturity
Pa ment Rate
Maturity
Payment Rate
2001
$150,000
2011
$150,000
2002
150,000
2012
150,000
2003
150,000
2013
150,000
2004
150,000
2014
150,000
2005
1.50,000
2015
150,000
2006
150,000
2016
150,000
2007
150,000
2017
150,000
2008
150,000
2018
150,000
2009
150,000
2019
150,000
2010
150,000
2020
150,000
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SECTION 3. GENERAL CHARACTERISTICS AND FORM OF THE CERTIFICATES. The
Certificates shall be issued, shall be payable, shall have the characteristics, and shall be signed and executed (and the
Certificates shall be sealed) all as provided and in the manner indicated in the form set forth below. The Certificates
are not subject to optional redemption. The Form of the Certificates, the Form of the Registration Certificate of the
Comptroller of Public Accounts of the State of Texas to be printed and manually endorsed on the Initial Certificate,
the Form of the Authentication Certificate, [the Form of Statement of Insurance,] and the Form of Assignment,
which shall be, respectively, substantially as follows, with necessary and appropriate variations, omissions, and
insertions as permitted or required by this Ordinance, and the definitions contained within each such form shall
apply solely to such form:
FORM OF DEFINITIVE CERTIFICATES
NUMBER
R-
REGISTERED
INTEREST RATE:
REGISTERED OWNER:
PRINCIPAL AMOUNT: $
FORM OF CERTIFICATES
United States of America
State of Texas
DENOMINATION
REGISTERED
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2000
MATURITY DATE: DATED DATE: CUSIP:
March 15, 2000
THE CITY OF LA PORTE, TEXAS (the "Issuer" or the "City"), being a municipal corporation of the State
of Texas, promises to pay to the Registered Owner, specified above, or registered assigns (the "Registered Owner"),
on the Maturity Date, specified above, upon presentation and surrender of this Certificate at the agent of CHASE
BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, or its successor (the "Paying Agent/Registrar"),
to wit: the Principal Amount, specified above, in lawful money of the United States of America, and to pay interest
thereon at the Interest Rate, specified above, calculated on the basis of a 360-day year of twelve 30-day months,
from the Dated Date, specified above. Interest on this Certificate is payable by check payable on September 15,
2000, and each March 15 and September 15 thereafter, mailed to the Registered Owner of record as shown on the
books of registration kept by the Paying Agent/Registrar, as of the Record Date, or in such other manner as may be
acceptable to the Registered Owner and the Paying Agent/Registrar. The record date ("Record Date") for payments
hereon means the last calendar day of the month preceding a scheduled payment. In the event of a non-payment of
interest on a scheduled payment date, and for 30 days thereafter, a new record date for such payment (a "Special
Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment thereof have
been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due
payment (the "Special Payment Date", which shall be 15 calendar 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 the Registered Owner 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 that no later than each principal installment payment date and interest payment date for this Certificate it will
make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the Certificates, when due, in the manner set forth in the ordinance
authorizing the issuance of the Certificates adopted by the City Council of the City on March 27, 2000 (the
"Ordinance").
THIS CERTIFICATE is one of a series of Certificates (the "Certificates") dated as of the Dated Date,
specified above, of like designation, date, and tenor, except as to number, interest rate, denomination, and maturity
issued pursuant to the Ordinance in the original aggregate principal amount of $3,000,000 for the purpose of
providing for the payment of contractual obligations to be incurred for the purpose of financing for construction and
equipment for public library purposes and of the payment of contractual obligations for professional services in
connection therewith (including, but not limited to, architectural, financial advisory, legal, and engineering).
*REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS CERTIFICATE SET
FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND
EFFECT AS IF SET FORTH IN THIS SPACE.
**IN WITNESS WHEREOF, this Certificate has been 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
the official seal of the Issuer has been duly impressed, or placed in facsimile, on this Certificate.
City Secretary Mayor
(CITY SEAL)
(Back Panel of Certificates)
THE CERTIFICATES are issued pursuant to the Ordinance whereunder the City Council of the City
covenants to levy a continuing, direct, annual ad valorem tax on taxable property within the City, within the limits
prescribed by law, for each year while any part of the Certificates are considered outstanding under the provisions of
the Ordinance, in a sufficient amount to pay interest on each Certificate as it becomes due, to provide a sinking fund
for the payment of the principal of the Certificates when due, and to pay the expenses of assessing and collecting
such tax, and this Certificate is additionally secured by and payable from a limited pledge of $1,000 from the
revenues of the Issuer's parks and recreation system (the "System"), which amount is payable from the revenues
remaining after payment of all operation and maintenance expenses of the System, and all debt service, reserve, and
other requirements in connection with all of the Issuer's revenue bonds or other obligations (now or hereafter
outstanding) which are payable from all or any part of the "Net Revenues" of the System. Reference is hereby made
to the Ordinance for provisions with respect to the custody and application of the City's funds, remedies in the event
of a default hereunder or thereunder, and the other rights of the Registered Owner. By acceptance of this Certificate,
the Registered Owner consents to all of the provisions of the Ordinance, a certified copy of which is on file in the
office of the City Secretary.
THE CITY RESERVES THE RIGHT to redeem the Certificates maturing on or after March 15, 2011, in
whole or in part, in integral multiples of $5,000, on March 15, 2010, or on any date thereafter. Such optional
redemptions shall be at a redemption price of par plus accrued interest on the principal amounts called for
redemption to the date fixed for redemption. If less than all of the Certificates are to be redeemed, the particular
Certificates to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. At
least 45 days prior to the date fixed for any redemption of Certificates or portions thereof prior to maturity a written
notice of such redemption shall be given by the City to the Paying Agent/Registrar, and the Paying Agent/Registrar
shall send a copy of such notice at least 30 days prior to the date fixed for redemption by United States mail, first
class, postage prepaid, addressed to the registered owner of each Certificate to be redeemed in whole or in part at the
address shown on the Registration Books; 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 Certificate. When Certificates or portions thereof have been called for
redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be
payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts
called for redemption shall terminate on the date fixed for redemption.
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THIS CERTIFICATE IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender
at the designated payment office of the Paying Agent/Registrar. If this Certificate 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 terms and conditions of the Ordinance. If this Certificate is being
exchanged, it shall be in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and
conditions of the Ordinance. The Registered Owner of this Certificate shall be deemed and treated by the City and
the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of
liability upon this Certificate to the extent of such payment, and the City and the Paying Agent/Registrar shall not be
affected by any notice to the contrary.
IN THE EVENT any Paying Agent/Registrar for the Certificates 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 cause written notice thereof to be mailed to the Registered Owners.
IT IS HEREBY CERTIFIED, COVENANTED, AND REPRESENTED that all acts, conditions, and things
necessary to be done precedent to the issuance of the Certificates in order to render the same legal, valid, and
binding obligations of the City have happened and have been accomplished and performed in regular and due time,
form, and manner, as required by law; that provision has been made for the payment of the principal of and interest
on the Certificates by the levy of a continuing, direct, annual ad valorem tar upon all taxable property within the
City, within the limit prescribed by law, and from the above described limited pledge of the surplus revenues of the
System; and that issuance of the Certificates does not exceed any constitutional or statutory limitation.
BY BECOMING the Registered Owner of this Certificate, the Registered Owner thereby acknowledges all
of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, and agrees that the
terms and provisions of this Certificate and the Ordinance constitute a contract between each Registered Owner and
the City.
FORM OF AUTHENTICATION CERTIFICATE
AUTHENTICATION CERTIFICATE
This Certificate of Obligation is one of the Certificates described in and delivered pursuant to the within -
mentioned Ordinance, and this Certificate has been issued in conversion of and exchange for, or replacement of, a
Certificate, Certificates, or a portion of a Certificate or Certificates of an issue which was originally approved by the
Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Registration Date:
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
Paying Agent/Registrar
By
Authorized Signature
[FORM OF STATEMENT OF INSURANCE
STATEMENT OF INSURANCE]
0 •
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
(Please insert Social Security or Taxpayer (Please print or typewrite name and address, including zip code, of Transferee)
Identification dumber of Transferee)
the within Certificate of Obligation and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to register the transfer of the
within Certificate of Obligation on the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a
member firm of the New York Stock Exchange or a
commercial bank or trust company.
NOTICE: The signature above must correspond with
the name of the Registered Owner as it appears upon
the front of this Certificate of Obligation in every
particular, without alteration or enlargement or any
change whatsoever.
The following abbreviations, when used in the Assignment above or on the face of the within Certificate of
Obligation, 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)
under Uniform Gifts to Minors Act
(State)
Additional abbreviations may also be used though not in the list above.
(Minor)
FORM OF INITIAL CERTIFICATE
The Initial Certificate shall be in the form set forth above for the Definitive Certificates, except the
followingshall hall replace the heading and the first paragraph:
NO. I-1
.: 0941M I
REGISTERED OWNER:
United States of America
State of Texas
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2000
March 15, 2000
$3,000,000
Principal Amount: THREE MILLION DOLLARS ($3,000,000)
THE CITY OF LA PORTE, TEXAS (the "City" or the "Issuer"), for value received, acknowledges itself
indebted to and hereby promises to pay to the order of the Registered Owner, specified above, or the registered
assigns thereof (the "Registered Owner"), the Principal Amount, specified above, with principal installments
payable on March 15 in each of the years, and bearing interest at per annum rates in accordance with the following
schedule:
YEARS OF PRINCIPAL INTEREST
STATED MATURITIES INSTALLMENTS RATES
$
(Information to be inserted from schedule in Section 2.)
INTEREST on the unpaid Principal Amount hereof from the Dated Date, specified above, or from the most
recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has
become due and payment thereof has been made or duly provided for shall be paid computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on March 15 and September 15 of each year,
commencing September 15, 2000.
THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money of the United
States of America, without exchange or collection charges. The final payment of principal of this Certificate shall
be paid to the Registered Owner hereof upon presentation and surrender of this Certificate at final maturity, at the
designated payment office of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, which is
the "Paying Agent/Registrar" for this Certificate. The payment of principal installments and interest on this
Certificate 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 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 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 payments hereon means the last calendar day of the month preceding a
scheduled payment. In the event of a non-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment thereof have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due payment (the "Special Payment Date", which shall
be 15 calendar 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 the Registered Owner 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 that no later than each principal installment
payment date and interest payment date for this Certificate it will make available to the Paying Agent/Registrar the
amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the
Certificates, when due, in the manner set forth in the ordinance authorizing the issuance of the Certificates adopted
by the City Council of the City on March 27, 2000 (the "Ordinance").
FORM OF REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS*
*Attach to or print on Initial Certificate only
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I HEREBY CERTIFY THAT there is on file and of record in my office a certificate to the effect that the
Attorney General of the State of Texas has examined and finds that this Certificate of Obligation has been issued in
conformity with the Constitution and laws of the State of Texas and is a valid and binding obligation of the City of
La Porte, Texas, and further that this Certificate of Obligation has been registered this day by me.
6
•
WITNESS my signature and seal of office this
(COMPTROLLER'S SEAL)
Comptroller of Public Accounts of the State of Texas
[END OF FORMS]
In case any officer of the City whose manual or facsimile signature shall appear on any Certificate shall
cease to be such officer before the delivery of any such Certificate, such manual or facsimile signature shall
nevertheless be valid and sufficient for all purposes as if such officer had remained in office until such delivery.
Any Certificate which bears the facsimile signature of such person who at the actual time of the delivery of such
Certificate shall be an officer authorized to sign such Certificate, but who at the date of such Certificate was not such
an officer, shall be validly and sufficiently signed for all purposes as if such person had been such officer at the date
of such Certificate. The City authorizes the printing of a true and correct copy of an opinion of Akin, Gump,
Strauss, Hauer & Feld, L.L.P., Attorneys, relating to the validity and enforceability of the Certificates under Texas
law and the status of interest on the Certificates under federal income tax laws on the reverse side of each of the
Certificates over a certificate of identification executed by the facsimile signature of the City Secretary, and also
authorizes the imprinting of CUSIP (the American Bankers Association's Committee on Uniform Securities
Identification Procedures) numbers on the Certificates; provided, however, that the failure of such opinion,
certificate, or CUSIP numbers to appear on any Certificate, or any errors therein, or in any part of the Certificate the
form of which is not included in this Ordinance, shall in no way affect the validity or enforceability of the
Certificates or relieve the Initial Purchaser (hereinafter defined) of its obligation to accept delivery of and pay for the
Certificates.
SECTION 4. DEFINITIONS. In addition to other words and terms defined in this Ordinance (except those
defined and used in Section 3), and unless a different meaning or intent clearly appears in the context, the following
words and terms shall have the following meanings, respectively:
"Certificates" - Any Certificate or Certificates or all of the Certificates, as the case may be, of that series
styled "City of La Porte, Texas Certificates of Obligation, Series 2000" in the original aggregate principal amount of
$3,000,000 authorized by this Ordinance.
"Code" - The Internal Revenue Code of 1986, as amended.
"Government Obligations" - Direct obligations of the United States of America, which are non -callable
prior to the respective maturities of the Certificates and may be United States Treasury Obligations such as State and
local government series and may be in book entry -form.
"Initial Certificate" - The Certificate registered by the Comptroller of Public Accounts as described in
Section 10 hereof.
"Initial Purchaser" -
"Interest Payment Date" - When used in connection with any Certificate, shall mean September 15, 2000,
and each March 15 and September 15 thereafter until maturity of such Certificate.
"Issuer" or "City" - The City of La Porte, Texas, a municipal corporation and a political subdivision of the
State of Texas, or any successor thereto.
"Net Revenues" - The gross revenues of the System less the expense of operation and maintenance,
including all salaries, labor, materials, interest, 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
0 0
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 security of any bonds payable from and secured by a lien on the "Net Revenues" of the System
shall be deducted in determining "Net Revenues."
"Ordinance" - This "Ordinance Authorizing the Issuance of $3,000,000 City of La Porte, Texas,
Certificates of Obligation, Series 2000, and Other Matters Related Thereto" adopted by the City Council on March
27, 2000.
"Owners" - Any person who shall be the registered owner of any outstanding Certificates.
"Paying Agent/Registrar" - Chase Bank of Texas, National Association and such other bank or trust
company as may hereafter be appointed in substitution therefor or in addition thereto to perform the duties of Paying
Agent/Registrar in accordance with this Ordinance.
"Paying Agent/Registrar Agreement" - The agreement dated as of March 15, 2000, between the Paying
Agent/Registrar and the City relating to the registration, authentication, and transfer of the Certificates substantially
in the form of Exhibit A
"Record Date" - The last calendar day of the month next preceding the applicable Interest Payment Date.
"Register" - The books of registration kept by the Paying Agent/Registrar in which are maintained the
names and addresses of and the principal amounts registered to each Owner.
"System" - The City's parks and recreation system.
Terms not otherwise defined herein are those used in the Parity Bonds Ordinances.
SECTION 5. CITY FUNDS. The City hereby confirms the establishment of the following funds of the
City at a depository of the City:
(a) Interest and Sinking Fund, Tax Lew, and Pledge of Revenues. A special "City of La Porte Certificates
of Obligation Series 2000 Interest and Sinking Fund" (the "Interest and Sinking Fund") is hereby created and shall
be established and maintained by the City at an official depository bank of the City. 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 Certificates. The net proceeds of all ad valorem taxes levied and collected for and on
account of the Certificates shall be deposited, as collected, to the credit of the Interest and Sinking Fund.
During each year while any of the Certificates or interest thereon are outstanding and unpaid, the governing
body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise
and produce the money required to pay the interest on the Certificates as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the principal thereof as such principal matures (but never less than 2% of
the original principal amount of the Certificates as a sinking fund each year); and the tax shall be based on the latest
approved tax rolls of the Issuer, with full allowances being made for tax delinquencies and the cost of tax collection.
The rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable
property in the Issuer for each year while any of the Certificates or interest thereon are outstanding and unpaid, and
the tax shall be assessed and collected each year and deposited to the credit of the Interest and Sinking Fund. The ad
valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such
interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit
prescribed by law.
The Certificates additionally shall be payable from and secured by a subordinate lien on and pledge of
$1,000 of the revenues of the System, which amount is payable from the revenues remaining after payment of all
operation and maintenance expenses of the System, and all debt service, reserve, and other requirements in
connection with all of the Issuer's revenue bonds or other obligations (now or hereafter outstanding) which are
payable from all or any part of the "Net Revenues" of the System. The City shall deposit such pledged surplus
revenues to the credit of the Interest and Sinking Fund created pursuant to this section.
The City reserves the right to issue, for any lawful purpose at any time, in one or more installments, bonds,
certificates of obligation, and other obligations of any kind payable in whole or in part from, and secured by a
pledge of the Net Revenues of the System that may be prior and superior in right to, on a parity with, or junior and
subordinate to the limited pledge of the Net Revenues securing the Certificates.
(b) Construction Fund. A special "City of La Porte Certificates of Obligation Series 2000 Construction
Fund" (the "Construction Fund") is hereby created and shall be established and maintained by the City at an official
depository bank of the City. The Construction Fund is the fund into which the net proceeds of the Certificates shall
be deposited except that any premium received from the Initial Purchaser shall be deposited to the Interest and
Sinking Fund. Money in the Construction Fund shall be used to pay the costs necessary or appropriate to
accomplish the purposes :for which the Certificates are issued.
SECTION 6. INVESTMENTS AND SECURITY. (a) Investment of Funds. The City may place money in
any fund created by this Ordinance in time or demand deposits or invest such money as authorized by law at the
time of such deposit; provided, however, that the City hereby covenants that the proceeds of the sale of the
Certificates will be used as soon as practicable for the purposes for which the Certificates are issued. Obligations
purchased as an investment of money in a fund shall be deemed to be a part of such fund.
(b) Amounts Received from Investments. Except as otherwise -provided by law, amounts received from the
investment of the Construction Fund may be retained in such fund or deposited to the Interest and Sinking Fund as
determined by the City Council. Any amounts received from the investment of the Interest and Sinking Fund shall
be deposited in the Interest and Sinking Fund.
(c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest
extent required by law for the security of funds of the City.
(d) Remaining Funds. Any money remaining after the purposes for which the Certificates have been
accomplished shall be deposited in the Interest and Sinking Fund and the Construction Fund shall be closed.
SECTION 7. COVENANTS OF THE CITY. (a) General Covenants. The City covenants and represents
that:
(i) The City is a duly created city, operating and existing under the laws of the State of Texas, and is
duly authorized under the laws of the State of Texas to create and issue the Certificates, all action on its
part for the creation and issuance of the Certificates has been duly and effectively taken, and the
Certificates in the hands of the Owners thereof are and will be valid and enforceable obligations of the City
in accordance with their terms.
(ii) The Certificates shall be ratably secured in such manner that no one Certificate shall have
preference over other Certificates.
(b) Covenants Regarding Tax Matters. The City covenants to take any action to maintain, or refrain from
any action which would adversely affect, the treatment of the Certificates as obligations described in section 103 of
the Code, the interest on which is not includable in "gross income" for federal income tar purposes. In furtherance
thereof, the City specifically covenants as follows:
(i) To refrain from taking any action which would result in the Certificates being treated as "private
activity bonds" within the meaning of section 141(a) of the Code;
(ii) To take any action to assure that no more than 101/o of the proceeds of the Certificates or the
projects financed therewith 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 or the projects financed therewith 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
Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more
than 10% of the debt service on the Certificates, in contravention of section 141(b)(2) of the Code;
(iii) To take any action to assure that in the event that the "private business use" described in paragraph
(ii) hereof exceeds 5% of the proceeds of the Certificates or the projects financed therewith, 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;
(iv) 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 Certificates 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;
(v) To refrain from taking any action which would result in the Certificates being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(vi) Except to the extent permitted by section 148 of the Code and the regulations and rulings
thereunder, to refrain from using any portion of the proceeds of the Certificates, directly or indirectly, to
acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as
defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the
Certificates.
(vii) To otherwise restrict the use of the proceeds of the Certificates or amounts treated as proceeds of
the Certificates, as may be necessary, so that the Certificates 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);
(viii) Except to the extent otherwise provided in section 148(f) of the Code and the regulations and
rulings thereunder, to pay to the United States of America at least once during each five year period
(beginning on the date of delivery of the Certificates) an amount that is at least equal to 90% of the "Excess
Earnings," within the meaning of section 148(f) of the Code, and to pay to the United States of America,
not later than 60 days after the Certificates 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;
(ix) To maintain such records as will enable the City to fulfill its responsibilities under this subsection
and sections 141 and 148 of the Code and to retain such records for at least six years following the final
payment of principal and interest on the Certificates; and
(x) To comply with the information reporting requirements of section 149(e) of the Code.
For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred proceeds
and, for purposes of paragraphs (ii) and (iii), proceeds of the refunded bonds.
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 Certificates, 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 adversely affect the exclusion from gross income of
interest on the Certificates 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 Certificates, the City agrees to
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comply with the additional requirements to the extent necessary, in the opinion of nationally -recognized bond
counsel, to preserve the exclusion from gross income of interest on the Certificates under section 103 of the Code.
Proper officers of the City charged with the responsibility of issuing the Certificates are hereby authorized
and directed to execute any documents, certificates, or reports required by the Code and to make such elections, on
behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the
Certificates.
Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion
from gross income of interest on the Certificates under section 103 of the Code the covenants contained in this
subsection shall survive the later of the defeasance or discharge of the Certificates.
(c) Covenants Regarding Sale, Lease, or Disposition of Financed Property. The City covenants that the City
will regulate the use of the property financed, directly or indirectly, with the proceeds of the Certificates and will not
sell, lease, or otherwise dispose of such property unless (i) the City takes the remedial measures as may be required
by the Code and the regulations and rulings thereunder in order to preserve the exclusion from gross income of
interest on the Certificates under section 103 of the Code or (ii) the City seeks the advice of nationally -recognized
bond counsel with respect to such sale, lease, or other disposition.
SECTION 8. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The City hereby
designates the Certificates as "qualified tax-exempt obligations" as defined in section 265(b)(3) of the Code. In
furtherance of such designation, the City represents, covenants, and warrants the following: (a) during the calendar
year in which the Certificates are issued, the City (including any subordinate entities) has not designated nor will
designate obligations, which when aggregated with the Certificates, will result in more than $10,000,000 of
"qualified tax-exempt obligations" being issued; (b) the City reasonably anticipates that the amount of tax-exempt
obligations issued during 2000 by the City (including any subordinate entities) will not exceed $10,000,000; and (c)
the City will take such action which would assure, or to refrain from such action which would adversely affect, the
treatment of the Certificates as "qualified tax-exempt obligations."
SECTION 9. PAYING AGENT/REGISTRAR. The Paying Agent/Registrar is hereby appointed as paying
agent for the Certificates and the City is hereby authorized to enter into any type of agreement necessary for the
Paying Agent/Registrar to perform its duties hereunder. The principal of and premium, if any, on the Certificates
shall be payable, without exchange or collection charges, in any coin or currency of the United States of America,
which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their
presentation and surrender as they respectively become due and payable at maturity, at the designated payment
office of the Paying Agent/Registrar. The interest on each Certificate shall be payable by check payable on the
Interest Payment Date mailed by the Paying Agent/Registrar on or before each Interest Payment Date to the Owner
of record as of the Record Date, to the address of such Owner as shown on the Register, or in such other manner as
may be acceptable to the Owner and the Paying Agent/Registrar.
The City, the Paying Agent/Registrar, and any other person may treat the person in whose name any
Certificate is registered as the absolute Owner of such Certificate for the purpose of making and receiving payment
of the principal thereof and premium, if any, thereon, and for the further purpose of making and receiving payment
of the interest thereon and for all other purposes, whether or not such Certificate is overdue, and neither the City nor
the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the
person deemed to be the Owner of any Certificate in accordance with this Ordinance shall be valid and effectual and
shall discharge the liability of the City and the Paying Agent/Registrar upon such Certificate to the extent of the
sums paid.
So long as any Certificates remain outstanding, the Paying Agent/Registrar shall keep the Register at its
designated corporate trust office in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent/Registrar shall provide for the registration and transfer of Certificates in accordance with the terms of this
Ordinance.
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The City may at any time and from time to time appoint another Paying Agent/Registrar in substitution for
the previous Paying Agent/Registrar; provided that any such Paying Agent/Registrar shall be a corporation
organized and doing business under the laws of the United States of America or any State, authorized under such
laws to exercise trust powers, subject to supervision or examination by federal or state authority, and a transfer agent
registered with the Securities and Exchange Commission. In such event, the City shall give notice by certified mail
to each Owner at least 30 days prior to the effective date of such substitution. Any bank or trust company with or
into which any Paying Agent/Registrar may be merged or consolidated, or to which the assets and business of
Paying Agent/Registrar may be sold or otherwise transferred, shall be deemed the successor of such Paying
Agent/Registrar for the purposes of this Ordinance.
The Mayor and City Secretary are hereby authorized to enter into, execute, and deliver the Paying
Agent/Registrar Agreement with the initial Paying Agent/Registrar in substantially the form presented to the City on
this date.
SECTION 10. INITIAL CERTIFICATE, EXCHANGE OR TRANSFER OF CERTIFICATES. Initially,
one Certificate (the "Initial Certificate") numbered I-1 as described in Section 2, and representing the entire
principal amount of the Certificates shall be registered in the name of the Initial Purchaser and shall be executed and
submitted to the Attorney General of Texas for approval, and thereupon certified by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent, by manual signature, and the Initial Certificate shall be
effective and valid without the Authentication Certificate being signed by the Paying Agent/Registrar. At any time
thereafter, the Owner may deliver the Initial Certificate to the Paying Agent/Registrar for exchange, accompanied by
instructions from the Owner or designee designating the persons, maturities, and principal amounts to and in which
the Initial Certificates are to be transferred and the addresses of such persons, and the Paying Agent/Registrar shall
thereupon, within not more than three days, register and deliver such Certificates upon authorization of the City as
provided in such instructions.
Each Certificate shall be transferable only upon the presentation and surrender thereof at the designated
payment office of the Paying Agent/Registrar, duly endorsed for transfer, or accompanied by an assignment duly
executed by the Owner or his authorized representative in form satisfactory to the Paying Agent/Registrar. Upon
presentation of any Certificate for transfer, the Paying Agent/Registrar shall authenticate and deliver in exchange
therefor, to the extent possible and under reasonable circumstances within three business days after such
presentation, a new Certificate or Certificates, registered in the name of the transferee or transferees, in authorized
denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the
Certificate or Certificates so presented.
All Certificates shall be exchangeable upon presentation and surrender thereof at the designated payment
office of the Paying Agent/Registrar for a Certificate or Certificates of the same maturity and interest rate and in any
authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Certificate or
Certificates presented for exchange. The Paying Agent/Registrar shall be and is hereby authorized to authenticate
and deliver exchange Certificates in accordance with this Ordinance and each Certificate so delivered shall be
entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of
which such Certificate is delivered.
The City or the Paying Agent/Registrar may require the Owner of any Certificate to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such
Certificate. Any fee or charge of the Paying Agent/Registrar for such transfer or exchange shall be paid by the City.
SECTION 11. SALE AND DELIVERY OF CERTIFICATES. (a) Sale. The sale of the Certificates to the
Initial Purchaser pursuant to the taking of competitive bids at a price of par, plus accrued interest to the date of
delivery [and a premium of $1 is hereby confirmed. It is hereby officially found, determined, and declared
that the Initial Purchaser submitted the bid which results in the lowest true interest cost to the City and delivery of
the Certificates to the Initial Purchaser shall be made as soon as practicable after the adoption of this Ordinance,
upon payment therefor, in accordance with the terns of sale. The Initial Certificate shall be registered in the name
of the Initial Purchaser. The officers of the City are hereby authorized and directed to execute and deliver such
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certificates, . instructions, or other instruments as are required or necessary to accomplish the purposes of this
Ordinance.
(b) Approval of Official Statement. The City hereby approves the form and content of the Official
Statement relating to the Certificates and any addenda, supplement, or amendment thereto, and approves the
distribution of such Official Statement in the reoffering of the Certificates by the Initial Purchaser 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. The form and content of and the distribution and use of the
Official Statement dated March 13, 2000, prior to the date hereof is hereby ratified and confirmed. The Council
finds and determines that the Preliminary Official Statement is "deemed final" as that term is defined in 17 C.F.R.
Section 240.15c2-12.
(c) Legal Opinion. The Initial Purchaser's obligation to accept delivery of the Certificate is subject to its
being furnished an opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P., Attorneys, such opinion to be dated and
delivered as of the date of delivery and payment for the Certificates.
(d) Registration and Delivery. Upon the registration of the Initial Certificate, the Comptroller of Public
Accounts of the State of Texas is authorized and instruct to deliver the Initial Certificate pursuant to the instruction
of the Mayor for delivery to the Initial Purchaser.
SECTION 12. CITY OFFICERS' DUTIES. (a) Issuance of Certificates. The Mayor shall submit the
Initial Certificate, the record of the proceedings authorizing the issuance of the Certificates, and any and all other
necessary orders, certificates, and records to the Attorney General of the State of Texas for his investigation. After
obtaining the approval of the Attorney General, the Mayor shall cause the Initial Certificate to be registered by the
Comptroller of Public Accounts of the State of Texas. The officers or acting officers of the City are authorized to
execute and deliver on behalf of the City such certificates and instruments as may be necessary or appropriate prior
to delivery of and payment for the Certificates to and by the Initial Purchaser.
(b) Execution of Ordinance. The Mayor and the City Secretary are authorized to execute the Certificate to
which this Ordinance is attached on behalf of the City and to do any and all things proper and necessary to carry out
the intent thereof.
SECTION 13. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the
Certificates provided by the laws of the State of Texas, the City covenants and agrees that in the event the City
defaults in the payment of the principal of or interest on any of the Certificates 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
performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the Owner of anv of the
Certificates shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring
the City and other officers of the City to observe and perform 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 Certificates and
shall be cumulative of all other existing remedies.
SECTION 14. LOST STOLEN DESTROYED DAMAGED OR MUTILATED CERTIFICATES-,
DESTRUCTION OF PAID CERTIFICATES. (a) Replacement Certificates. In the event any outstanding Certificate
shall become lost, stolen, destroyed, damaged, or mutilated, at the request of the Owner thereof, the City shall cause
to be executed, registered by the Paying Agent/Registrar, and delivered a substitute Certificate of like date and tenor,
in exchange and substitution for and upon cancellation of such mutilated or damaged Certificate, or in lieu of and
substitution for such Certificate, lost, stolen, or destroyed, subject to the provisions of subsections (b), (c), (d) and
(e) of this Section.
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(b) Application and Indemnity. Application for exchange and substitution of lost, stolen, destroyed,
damaged, or mutilated Certificates shall be made to the City. In every case the applicant for a substitute Certificate
shall furnish to the City such deposit for fees and costs as may be required by the City to save it and the Paying
Agent/Registrar harmless from liability. In every case of loss, theft, or destruction of a Certificate, the applicant
shall also furnish to the City indemnity to the City's satisfaction and shall file with the City evidence to the City's
satisfaction of the loss, theft, or destruction and of the ownership of such Certificate. In every case of damage or
mutilation of a Certificate, the applicant shall surrender the Certificate so damaged or mutilated to the Paying
Agent/Registrar.
(c) Matured Certificates. Notwithstanding the foregoing provisions of this Section, in the event any such
Certificate shall have matured, and no default has occurred which is then continuing in payment of the principal of
or interest on the Certificates, the City may authorize the payment of the same (without surrender thereof except in
the case of a damaged or mutilated Certificate) instead of issuing a substitute Certificate, if any, provided security or
indemnity is furnished as above provided in this Section.
(d) Expenses of Issuance. Upon the issuance of any substitute Certificate, the City may charge the owner
of such Certificate with all fees and costs incurred in connection therewith. Every substitute Certificate issued
pursuant to the provisions of this Section by virtue of the fact that any Certificate is lost, stolen, destroyed, damaged,
or mutilated shall constitute a contractual obligation of the City, whether or not the lost, stolen, destroyed, damaged,
or mutilated Certificate shall be found at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Ordinance equally and proportionately with any and all other Certificates duly issued under this
Ordinance.
(e) Authority to Issue Substitute Certificates. This Ordinance shall constitute sufficient authority for the
issuance of any such substitute Certificate without necessity of further action by the City or any other body or
person, and the issuance of such substitute Certificates is hereby authorized, notwithstanding any other provisions of
this Ordinance.
(f) Destruction of Paid Certificates. At any time subsequent to the payment thereof, the Paying
Agent/Registrar is authorized to cancel and destroy any Certificates duly paid, and promptly after any such
destruction, the Paying Agent/Registrar shall furnish to the City a certificate evidencing such destruction.
SECTION 15. REDEMPTION. The Certificates are subject to optional redemption as described in the
FORM OF CERTIFICATES in Section 3 of this Ordinance.
SECTION 16. DEFEASANCE. Any Certificate shall be deemed to be paid and shall no longer be
considered to be a "Certificate" within the meaning of this Ordinance when payment of the principal of and the
premium, if any, on such Certificate, plus interest thereon to the due date thereof (whether such due date be by
reason of maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the terms
thereof or (ii) shall have been provided for by depositing with an escrow agent (the "Escrow Agent"), for such
payment, (a) money sufficient to make such payment or (b) Governmental Obligations certified by an independent
public accounting firm of national reputation to be of such maturities and interest payment dates and to bear such
interest as will, without further investment or reinvestment of either the principal amount thereof or the interest
earning therefrom (likewise to be held in trust and committed, except as hereinafter provided), be sufficient to make
such payment or (c) a combination of money and Governmental Obligations together so certified to be sufficient;
provided, however, that all the expenses pertaining to the Certificates with respect to which such deposit is made
shall have been paid or the payment thereof provided for to the satisfaction of the Escrow Agent. Notwithstanding
anything herein to the contrary, no such deposit shall have the effect described in this Section if made during the
subsistence of a default in the payment of any Certificate unless made with respect to all of the Certificates then
outstanding. Any money and Governmental Obligations deposited for such purpose shall be held by the Escrow
Agent in a segregated account in trust or escrow for the Owners with respect to which such deposit is made and,
together with any investment income therefrom, shall be disbursed solely to pay the principal of and interest on such
Certificates when due. No money or Governmental Obligations so deposited shall be invested or reinvested unless
in Governmental Obligations and unless such money and Governmental Obligations not invested and such new
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investments are together certified by an independent public accounting firm of national reputation to be of such
amounts, maturities, and interest payment dates and to bear such interest as will, without further investment or
reinvestment of either the principal amount thereof or the interest earnings therefrom, be sufficient to make such
payment. At such times as a Certificate shall be deemed to be paid hereunder, as aforesaid, they shall no longer be
entitled to the benefits of this Ordinance, except for the purposes of any such payment from such money or
Governmental Obligations.
SECTION 17. ORDINANCE A CONTRACT, AMENDMENTS. This Ordinance shall constitute a
contract with the Owners, from time to time, of the Certificates, binding on the City and its successors and assigns,
and shall not be amended or repealed by the City as long as any Certificate remains outstanding except as permitted
in this Section. The City 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 adoption of any Parity Bonds
Ordinances, (iii) for the purpose of curing any ambiguity, inconsistency, or formal defect or omission herein, or (iv)
in connection with any other change which is not to the prejudice of the Owners. The City may, with the written
consent of the Owners of a majority in aggregate principal amount of Certificates then outstanding affected thereby,
amend, change, modify, or rescind any provisions of this Ordinance; provided, however, 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 Certificates, reduce the principal amount thereof to the rate of
interest thereon, or in any other way modify the terms of payment of the principal of or interest on bonds or
certificates on a parity with the lien of the Certificates, (ii) give any preference of any Certificate over any other
Certificate, (iii) extend any waiver of default to subsequent defaults, or (iv) reduce the aggregate principal amount of
Certificates required for consent to any such amendment, change, modification, or rescission. When the City desires
to make any amendment or addition to or rescission of this Ordinance requiring consent of the Owners, the City
shall cause notice of the amendment, addition, or rescission to be given as described above for a notice of
redemption. When at any time within one year after the date of the giving of such notice, the City shall receive an
instrument or instruments in writing executed by the appropriate number of Owners of the Certificates then
outstanding affected by any such amendment, addition, or rescission requiring the consent of Owners, 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 form of the copy thereof referred
to in such notice, thereupon, but not otherwise, the City may adopt such amendment, addition, or rescission in
substantially such form, 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 18. CONTINUING DISCLOSURE. (a) Annual Reports. The City shall provide annually to
each nationally -recognized municipal securities information repository ("NRMSIR') and to any state information
depository ("SID"), within six months after the end of each fiscal year ending in or after 2000, financial information
and operating data with respect to the City of the general type included in the final Official Statement authorized by
Section 15 of this Ordinance, being the information described in Exhibit B hereto. Any financial statements so to be
provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2)
audited, if the City commissions an audit of such statements and the audit is completed within the period during
which they must be provided. If the audit of such financial statements is not complete within such period, the City
shall provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID when and if
the audit report on such statements becomes available.
If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date
of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial
information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may be set forth in full
in one or more documents or may be included by specific reference to any document (including an official statement
or other offering document) if it is available from the Municipal Securities Rulemaking Board (the "MSRB") that
theretofore has been provided to each NRMSIR and any SID or filed with the Securities and Exchange Commission
(the "SEC").
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(b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a
timely manner, of any of the following events with respect to the Certificates, if such event is material within the
meaning of the federal securities laws: (i) principal and interest payment delinquencies; (ii) non-payment related
defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on
credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure
to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the Certificates; (vii) modifications
to rights of holders of the Certificates; (viii) calls; (ix) defeasances; (x) release, substitution, or sale of property
securing repayment of the Certificates; and (xi) rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by
the City to provide financial information or operating data in accordance with this Section by the time required by
this Section.
(c) Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the
covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person"
with respect to the Certificates within the meaning of SEC Rule 15c2-12 (the "Rule"), except that the City in any
event will give notice of any deposit made in accordance with Section 17 above that causes the Certificates no
longer to be outstanding and any call of Certificates made in connection therewith.
The provisions of this Section are for the sole benefit of the Owners and beneficial owners of the
Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right,
remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section
and does not hereby undertake to provide any other information that may be relevant or material to a complete
presentation of the City's financial results, condition, or prospects or hereby undertake to update any information
provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make
any representation or warranty concerning such information or its usefulness to a decision to invest in or sell
Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR BENEFICIAL
OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR
WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR 1MMDAMUS OR SPECIFIC
PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall comprise a breach
of or default under this Ordinance for purposes of any other provisions of this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City
under federal and state securities laws.
The provisions of this Section may be amended, supplemented, or repealed by the City from time to time
under the following circumstances, but not otherwise: (1) to adapt to changed circumstances that arise from a change
in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if
the provisions of this Section, as so supplemented or amended, would have permitted an underwriter to purchase or
sell Certificates in the present offering in compliance with the Rule and either the Owners of a majority in aggregate
principal amount of . the outstanding Certificates consent to such amendment, supplement, or repeal, or any State
agency or official determines that such amendment, supplement, or repeal will not materially impair the interests of
the beneficial owners of the Certificates, (2) upon repeal of the applicable provisions of the Rule, or any judgment
by a court of final jurisdiction that such provisions are invalid, or (3) in any other circumstance or manner permitted
by the Rule.
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SECTION 19. BOOK -ENTRY ONLY SYSTEM. It is intended that the Certificates initially be registered
so as to participate in a securities depository system (the "DTC System") with The Depository Trust Company, New
York, New York, or any successor entity thereto ("DTC"), as set forth herein. The definitive Certificates shall be
issued in the form of a separate single definitive Certificate for each maturity. Upon issuance, the ownership of each
such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the outstanding
Certificates shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying
Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with
DTC as shall be necessary to effectuate the DTC System, including a "Letter of Representation" (the
"Representation Letter").
With respect to the Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the
Paying Agent/Registrar shall have no responsibility or obligation to any broker -dealer, bank, or other financial
institution for which DTC holds the Certificates from time to time as securities depository (a "Depository
Participant") or to any person on behalf of whom such a Depository Participant holds an interest in the Certificates
(an "Indirect Participant"). Without limiting the immediately preceding sentence, the City and the Paying
Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC,
Cede & Co., or any Depository Participant with respect to any ownership interest in the Certificates, or (ii) the
delivery to any Depository Participant or any Indirect Participant or any other Person, other than a registered owner
of a Certificate, of any amount with respect to principal of, premium, if any, or interest on the Certificates. While in
the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a
Certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest
pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that
DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this
Ordinance with respect to interest checks or drafts being mailed to the holder, the word "Cede & Co." in this
Ordinance shall refer to such new nominee of DTC.
In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described
herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC
or the City determines that it is in the best interest of the beneficial owners of the Certificates that they be able to
obtain certificated Certificates; the City shall notify the Paying Agent/Registrar, DTC, and Depository Participants
of the availability within a reasonable period of time through DTC of certificated certificates, and the Certificates
shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the
City may determine that the Certificates shall be registered in the name of and deposited with a successor depository
operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee,
and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the
Certificates may be registered in whatever names the registered owners of Certificates transferring or exchanging the
Certificates shall designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is
registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if
any, and interest on such Certificate and all notices with respect to such Certificate shall be made and given,
respectively, in the manner provided in the Representation Letter.
SECTION 20. OTHER DOCUMENTS. The Mayor and the City Secretary are hereby authorized to
execute and attest to such other documents, certificates, letters of instruction, tax information forms, and other
agreements of any kind which, in the opinion of Bond Counsel, are necessary or advisable in order to issue the
Certificates and verify that the interest on the Certificates will be exempt from gross income of the holders thereof
under current federal tax law.
SECTION 21. FURTHER PROCEDURES. The Mayor and the City Secretary, and all other officers,
employees, attorneys, and agents of the City and each of them, shall be and they are hereby expressly authorized,
empowered, and directed from time to time and at any time to do and perform all such acts and things and to
execute, acknowledge, and deliver in the name and under the 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 terms and provisions of
17
this Ordinance, the Certificates, and the Official Statement. In case any officer whose signature shall appear on any
Certificate shall cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be
valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Prior to
the initial delivery of the Certificates, the Mayor and the City Secretary and Bond Counsel to the City are hereby
authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the
instruments authorized by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or
more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from
any of the national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas Attorney
General's office.
SECTION 22. MISCELLANEOUS PROVISIONS. (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 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 City 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.
(e) Open Meeting. The City officially finds and determines the meeting at which this Ordinance is adopted
was open to the public and that public notice of the time, place, and purpose of such meeting was given, all as
required by Chapter 551, Texas Government Code.
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(f) 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 March 27, 2000.
ATTEST:
City Secretary, City of LaPorte, Texas
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Mayor, City of LaPorte, Texas
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT entered into as of March 15, 2000 (the
"Agreement"), by and between the CITY OF LA PORTE, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States
of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas
Certificates of Obligation, Series 2000" (the "Securities"), such Securities to be issued in fully registered form only
as to the payment of principal and interest thereon;
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the
"Ordinance" (hereinafter defined);
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the
payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration,
transfer, and exchange thereof by the registered owners thereof,
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full
power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to
the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer
the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered
owners thereof, all in accordance with this Agreement and the Ordinance.
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of
said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the
Securities.
Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in Schedule A attached hereto for the first year
of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days
prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
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ARTICLE II. DEFINITIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:
"Bank Office" means the designated principal corporate trust office of the Bank as indicated on the
signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Bank Principal Payment Office" means Dallas, Texas.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer
by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the
Issuer, any one or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are
issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political subdivision of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition,
any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered
in lieu thereof pursuant to Section 4.06 hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice -Chairman of the
Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank
customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be
due and payable.
Section 2.02 Other Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the
meanings assigned to them in the recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this
Agreement.
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ARTICLE III. PAYING AGENT
Section 3.01. Duties of Paving Agent. As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Principal Payment Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail,
first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on
the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to
the Bank, requested in writing by the Holder at the Holder's risk and expense.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on
the Securities on the dates specified in the Ordinance.
ARTICLE IV. REGISTRAR
Section 4.01. Securitv Register - Transfers and Exchanges. The Bank agrees to keep and maintain for
and on behalf of the Issuer at the Bank Principal Payment Office books and records (herein sometimes referred to as
the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer,
exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the
Holders and containing such other information as may be reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register. A copy of the Security Register will be maintained at the offices
of the Bank's agent in Houston, Texas.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a
member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re -registration, transfer,
or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities
delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the
Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange
duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate
transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in
safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political
subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities.
Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has currently available and currently utilizes at the time.
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The Security Register may be maintained in written form or in any other form capable of being converted
into written form within a reasonable time.
Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer
may also inspect the information contained in the Security Register at any time the Bank is customarily open for
business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the
information into written form.
Unless required by law, the Bank will not release or disclose the contents of the Security Register to any
person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt
of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure
of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order
or such release or disclosure of the contents of the Security Register.
Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered
to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank.
The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and
delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such
destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and
regulations of the Securities and Exchange Commission.
Section 4.06. Mutilated, Destroved, Lost, or Stolen Securities. The Issuer hereby instructs the Bank,
subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute
and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in
substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of
evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer
and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation,
execution, and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or
destroyed, lost, or stolen.
Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section
3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and
Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06.
Section 4.08. Redemption of Securities. Securities which are redeemable before their stated maturity shall
be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV.
Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the
expense of the Issuer not less than 30 or more than 45 days prior to the date of redemption, to each Registered
Owner of Securities to be redeemed and otherwise required by the Ordinance.
All notices of redemption shall include the CUSIP number and statement as to:
(a) the date of redemption;
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(b) the price of the Securities expressed as a percentage of par amount of the Securities;
(c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be
redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be
redeemed;
(d) that on the date of redemption the principal of each of the Securities to be redeemed will become due
and payable and that the interest thereon shall cease to accrue from and after said date; and
(e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of
redemption at the designated principal payment office of the Bank, and the address of such office.
The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and
information services based upon the then current guidelines of the Securities and Exchange Commission relating to
redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer,
shall also provide notice to any other addressees as the Issuer shall designate in writing.
ARTICLE V. THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to
use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents, Etc. (a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise
incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer
or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall
not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or
document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel
shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it
hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or
by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the
Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness.
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The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
Section 5.04. Mav Hold Securities. The Bank, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.05. Money Held by Bank. (a) Money held by the Bank hereunder shall be held for the benefit
of the Registered Owners of the Securities.
(b) The Bank shall be under no obligation to pay interest on any money received by it hereunder.
(c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the
payment of the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for
three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank
in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such
provisions are applicable to such amounts.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or
controversy over its person as well as funds on deposit, in either the District Court of Hams County, Texas , or the
United States Federal District Court for the Southern District of Texas, waive personal service of any process, and
agree that service of process by certified or registered mail, return receipt requested, to the address set forth in
Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the
right to file a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the
rights of any persons claiming any interest herein.
Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank
for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the exercise or performance of any of its powers or duties
under this Agreement.
Section 5.07. Interyleader. The Issuer and the Bank agree that the Bank may seek adjudication of any
adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State
District Court located in the State and County where either the Bank Office or the administrative offices of the
Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the
address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Company Services. It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent
depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will
comply with the "Operational Arrangements," effective August 1, 1987, which establishes requirements for
securities to be eligible for such type depository trust services, including, but not limited to, requirements for the
timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE VI. MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by
both of the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.
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Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other
document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown on the signature page of this Agreement.
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.
Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 6.06. Severabilitv. In case any provision herein shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.0& Entire Agreement. This Agreement and the Ordinance constitute the entire agreement
between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between
this Agreement and the Ordinance, the Ordinance shall govern.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal
of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days
written notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b)
notice has been given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement
shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security
Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the
successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas.
(Remainder of this page intentionally left blank.)
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•
•
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
Attest:
By
Title
(BANK SEAL)
Attest:
By
City Secretary
(ISSUER SEAL)
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CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
By
Title _
Address:
600 Travis, Suite 1150
Houston, Texas 77002
CITY OF LA PORTE, TEXAS
By
Mayor
Address 604 West Fairmont
LaPorte, Texas 77571
SCHEDULE A
Paying Agent/Registrar Fee Schedule
(To be furnished by the Bank)
•
•
EXHIBIT B
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 18 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually in accordance
with such Section are as specified and included in the Appendix or under the headings of the Official Statement
referred to below:
1. The audited financial statements of the City for the most recently concluded fiscal year.
2. The information included in the Official Statement under the headings "FINANCIAL
INFORMATION", "TAX COLLECTION PERIOD", "TAX COLLECTION RECORD", "TAX RATE
LIMITATIONS", "TAX RATE DISTRIBUTION", "TAX ADEQUACY", "CITY SALES TAX", "GENERAL
OBLIGATION BONDS AUTHORIZED BUT UNISSUED", "RATINGS ON OUTSTANDING GENERAL
OBLIGATIONS BONDS", "FLOATING DEBT OUTSTANDING", "PRINCIPAL TAXPAYERS",
"OVERLAPPING TAX RATE STATEMENT", "ESTIMATED DIRECT & OVERLAPPING DEBT
STATEMENT", "HISTORY OF GENERAL FUND REVENUE AND EXPENDITURES", and "REVENUE
BONDS AUTHORIZED BUT UNISSUED".
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described in the notes to
the financial statements referred to in paragraph 1 above, as such principles may be changed- from time to time to
comply with state law or regulation.
ORDINANCE NO.
ORDINANCE AUTHORIZING THE ISSUANCE OF $3,000,000 CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000 AND OTHER MATTERS RELATED THERETO
WHEREAS, the City Council of the City of La Porte (the "Issuer" or the "City") deems it advisable to
issue Certificates of Obligation hereinafter described (the "Certificates") in the original aggregate principal amount
of $3,000,000 for the purpose of providing for the payment of contractual obligations to be incurred for financing
for construction and equipment for public library purposes and of the payment of contractual obligations for
professional services in connection therewith (including, but not limited to, architectural, financial advisory, legal,
and engineering).
WHEREAS, the Certificates hereinafter authorized and designated are to be issued and delivered for cash
pursuant to Chapters 1501 and 1502, Texas Government Code, as amended, and the Certificate of Obligation Act of
1971, Section 271.041 et seq, Texas Local Government Code, as amended (the "Act");
WHEREAS, the City Council has heretofore, on February 28, 2000, passed a resolution authorizing and
directing the City Secretary to give notice of intention to issue the Certificates, which notice has been duly published
in the Bayshore Sun, which is a newspaper of general circulation in the City, in its issues of , 2000
and , 2000, the date of the first publication being at least 14 days prior to the tentative date stated in
the notice for passage of this Ordinance;
WHEREAS, the City has received no petition from the qualified electors of the City protesting the issuance
of the Certificates; and
WHEREAS, it is considered to be in the best interest of the City that the Certificates be issued bearing the
date, interest rates, denominations, and maturities as hereafter provided;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS, THAT:
SECTION 1. AUTHORIZATION OF THE CERTIFICATES. There is hereby authorized to be issued and
delivered, a series of certificates of obligation of the City, to be known as "CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000" (the "Certificates"), in the original aggregate principal amount
of $3,000,000 payable from ad valorem taxes and a limited pledge of $1,000 of the revenues of the City's parks and
recreation system, for the purposes described in the Form of Certificates contained in Section 3 hereof.
SECTION 2. DATE, DENOMINATIONS. NUMBERS. AND MATURITIES OF THE CERTIFICATES.
The Certificates shall be dated as of March 15, 2000, shall be in denominations of $5,000 each or any integral
multiple thereof, shall be numbered I-1 for the Initial Certificate and consecutively from R-1 upward for the
definitive certificates and shall mature on March 15 in each of the years as provided below. The Certificates shall
bear interest at the rates per annum shown below from the dated date, and payable on September 15, 2000 and on
each March 15 and September 15 thereafter through the respective maturity date as shown below:
Year of
Principal Interest
Year of
Principal Interest
Maturity
Payment Rate
Maturity
Payment Rate
2001
$150,000
2011
$150,000
2002
150,000
2012
150,000
2003
150,000
2013
150,000
2004
150,000
2014
150,000
2005
150,000
2015
150,000
2006
150,000
2016
150,000
2007
150,000
2017
150,000
2008
150,000
2018
150,000
2009
150,000
2019
150,000
2010
150,000
2020
150,000
SECTION 3. GENERAL CHARACTERISTICS AND FORM OF THE CERTIFICATES. The
Certificates shall be issued, shall be payable, shall have the characteristics, and shall be signed and executed (and the
Certificates shall be sealed) all as provided and in the manner indicated in the form set forth below. The Certificates
are not subject to optional redemption. The Form of the Certificates, the Form of the Registration Certificate of the
Comptroller of Public Accounts of the State of Texas to be printed and manually endorsed on the Initial Certificate,
the Form of the Authentication Certificate, [the Form of Statement of Insurance,] and the Form of Assignment,
which shall be, respectively, substantially as follows, with necessary and appropriate variations, omissions, and
insertions as permitted or required by this Ordinance, and the definitions contained within each such form shall
apply solely to such form:
FORM OF DEFINITIVE CERTIFICATES
NUMBER
R-
REGISTERED
INTEREST RATE:
REGISTERED OWNER:
PRINCIPAL AMOUNT: $
FORM OF CERTIFICATES
United States of America
State of Texas
DENOMINATION
REGISTERED
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2000
MATURITY DATE: DATED DATE: CUSIP:
March 15, 2000
THE CITY OF LA PORTE, TEXAS (the "Issuer" or the "City"), being a municipal corporation of the State
of Texas, promises to pay to the Registered Owner, specified above, or registered assigns (the "Registered Owner"),
on the Maturity Date, specified above, upon presentation and surrender of this Certificate at the agent of CHASE
BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, or its successor (the "Paying Agent/Registrar'),
to wit: the Principal Amount, specified above, in lawful money of the United States of America, and to pay interest
thereon at the Interest Rate, specified above, calculated on the basis of a 360-day year of twelve 30-day months,
from the Dated Date, specified above. Interest on this Certificate is payable by check payable on September 15,
2000, and each March 15 and September 15 thereafter, mailed to the Registered Owner of record as shown on the
books of registration kept by the Paying Agent/Registrar, as of the Record Date, or in such other manner as may be
acceptable to the Registered Owner and the Paying Agent/Registrar. The record date ("Record Date") for payments
hereon means the last calendar day of the month preceding a scheduled payment. In the event of a non-payment of
interest on a scheduled payment date, and for 30 days thereafter, a new record date for such payment (a "Special
Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment thereof have
been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due
payment (the "Special Payment Date", which shall be 15 calendar 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 the Registered Owner 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 that no later than each principal installment payment date and interest payment date for this Certificate it will
make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the Certificates, when due, in the manner set forth in the ordinance
authorizing the issuance of the Certificates adopted by the City Council of the City on March 27, 2000 (the
"Ordinance").
THIS CERTIFICATE is one of a series of Certificates (the "Certificates") dated as of the Dated Date,
specified above, of like designation, date, and tenor, except as to number, interest rate, denomination, and maturity
issued pursuant to the Ordinance in the original aggregate principal amount of $3,000,000 for the purpose of
providing for the payment of contractual obligations to be incurred for the purpose of financing for construction and
equipment for public library purposes and of the payment of contractual obligations for professional services in
connection therewith (including, but not limited to, architectural, financial advisory, legal, and engineering).
*REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS CERTIFICATE SET
FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND
EFFECT AS IF SET FORTH IN THIS SPACE.
**IN WITNESS WHEREOF, this Certificate has been 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
the official seal of the Issuer has been duly impressed, or placed in facsimile, on this Certificate.
xxxxxxxxa.Xxxxxxxxxxxxxxxx.Vcxxxxx xxxxxa
City Secretary Mayor
(CITY SEAL)
(Back Panel of Certificates)
THE CERTIFICATES are issued pursuant to the Ordinance whereunder the City Council of the City
covenants to levy a continuing, direct, annual ad valorem tax on taxable property within the City, within the limits
prescribed by law, for each year while any part of the Certificates are considered outstanding under the provisions of
the Ordinance, in a sufficient amount to pay interest on each Certificate as it becomes due, to provide a sinking fund
for the payment of the principal of the Certificates when due, and to pay the expenses of assessing and collecting
such tax, and this Certificate is additionally secured by and payable from a limited pledge of $1,000 from the
revenues of the Issuer's parks and recreation system (the "System"), which amount is payable from the revenues
remaining after payment of all operation and maintenance expenses of the System, and all debt service, reserve, and
other requirements in connection with all of the Issuer's revenue bonds or other obligations (now or hereafter
outstanding) which are payable from all or any part of the "Net Revenues" of the System. Reference is hereby made
to the Ordinance for provisions with respect to the custody and application of the City's funds, remedies in the event
of a default hereunder or thereunder, and the other rights of the Registered Owner. By acceptance of this Certificate,
the Registered Owner consents to all of the provisions of the Ordinance, a certified copy of which is on file in the
office of the City Secretary.
THE CITY RESERVES THE RIGHT to redeem the Certificates maturing on or after March 15, 2011, in
whole or in part, in integral multiples of $5,000, on March 15, 2010, or on any date thereafter. Such optional
redemptions shall be at a redemption price of par plus accrued interest on the principal amounts called for
redemption to the date fixed for redemption. If less than all of the Certificates are to be redeemed, the particular
Certificates to be redeemed shall be selected by the City in integral multiples of $5,000 within any one maturity. At
least 45 days prior to the date fixed for any redemption of Certificates or portions thereof prior to maturity a written
notice of such redemption shall be given by the City to the Paying Agent/Registrar, and the Paying Agent/Registrar
shall send a copy of such notice at least 30 days prior to the date fixed for redemption by United States mail, first
class, postage prepaid, addressed to the registered owner of each Certificate to be redeemed in whole or in part at the
address shown on the Registration Books; 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 Certificate. When Certificates or portions thereof have been called for
redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be
payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts
called for redemption shall terminate on the date fixed for redemption.
THIS CERTIFICATE IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender
at the designated payment office of the Paying Agent/Registrar. If this Certificate 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 terms and conditions of the Ordinance. If this Certificate is being
exchanged, it shall be in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and
conditions of the Ordinance. The Registered Owner of this Certificate shall be deemed and treated by the City and
the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of
liability upon this Certificate to the extent of such payment, and the City and the Paying Agent/Registrar shall not be
affected by any notice to the contrary.
IN THE EVENT any Paying Agent/Registrar for the Certificates 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 cause written notice thereof to be mailed to the Registered Owners.
IT IS HEREBY CERTIFIED, COVENANTED, AND REPRESENTED that all acts, conditions, and things
necessary to be done precedent to the issuance of the Certificates in order to render the same legal, valid, and
binding obligations of the City have happened and have been accomplished and performed in regular and due time,
form, and manner, as required by law; that provision has been made for the payment of the principal of and interest
on the Certificates by the levy of a continuing, direct, annual ad valorem tax upon all taxable property within the
City, within the limit prescribed by law, and from the above described limited pledge of the surplus revenues of the
System; and that issuance of the Certificates does not exceed any constitutional or statutory limitation.
BY BECOMING the Registered Owner of this Certificate, the Registered Owner thereby acknowledges all
of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, and agrees that the
terms and provisions of this Certificate and the Ordinance constitute a contract between each Registered Owner and
the City.
FORM OF AUTHENTICATION CERTIFICATE
AUTHENTICATION CERTIFICATE
This Certificate of Obligation is one of the Certificates described in and delivered pursuant to the within -
mentioned Ordinance, and this Certificate has been issued in conversion of and exchange for, or replacement of, a
Certificate, Certificates, or a portion of a Certificate or Certificates of an issue which was originally approved by the
Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Registration Date:
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
Paying Agent/Registrar
By.
Authorized Signature
[FORM OF STATEMENT OF INSURANCE
STATEMENT OF INSURANCE]
4
0
C
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
(Please insert Social Security or Taxpayer (Please print or typewrite name and address, including zip code, of Transferee)
Identification Number of Transferee)
the within Certificate of Obligation and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to register the transfer of the
within Certificate of Obligation on the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a
member firm of the New York Stock Exchange or a
commercial bank or trust company.
NOTICE: The signature above must correspond with
the name of the Registered Owner as it appears upon
the front of this Certificate of Obligation in every
particular, without alteration or enlargement or any
change whatsoever.
The following abbreviations, when used in the Assignment above or on the face of the within Certificate of
Obligation, 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
]T TEN - as joint tenants with right of survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust)
under Uniform Gifts to Minors Act
(State)
Additional abbreviations may also be used though not in the list above.
(Minor)
FORM OF INITIAL CERTIFICATE
The Initial Certificate shall be in the form set forth above for the Definitive Certificates, except the
following shall replace the heading and the first paragraph:
NO. I-1 $3,000,000
United States of America
State of Texas
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2000
DATED DATE: March 15, 2000
REGISTERED OWNER:
Principal Amount: THREE MILLION DOLLARS ($3,000,000)
0 0
THE CITY OF LA PORTE, TEXAS (the "City" or the "Issuer"), for value received, acknowledges itself
indebted to and hereby promises to pay to the order of the Registered Owner, specified above, or the registered
assigns thereof (the "Registered Owner"), the Principal Amount, specified above, with principal installments
payable on March 15 in each of the years, and bearing interest at per annum rates in accordance with the following
schedule:
YEARS OF PRINCIPAL INTEREST
STATED MATURITIES INSTALLMENTS RATES
(Information to be inserted from schedule in Section 2.)
INTEREST on the unpaid Principal Amount hereof from the Dated Date, specified above, or from the most
recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has
become due and payment: thereof has been made or duly provided for shall be paid computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on March 15 and September 15 of each year,
commencing September 15, 2000.
THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money of the United
States of America, without exchange or collection charges. The final payment of principal of this Certificate shall
be paid to the Registered Owner hereof upon presentation and surrender of this Certificate at final maturity, at the
designated payment office of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, which is
the "Paying Agent/Registrar" for this Certificate. The payment of principal installments and interest on this
Certificate shall be made by the Paving 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 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 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 payments hereon means the last calendar day of the month preceding a
scheduled payment. In the event of a non-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment thereof have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due payment (the "Special Payment Date", which shall
be 15 calendar 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 the Registered Owner appearing on
the books of the Paying Agent/Registrar at the close of business on the last business day nest preceding the date of
mailing of such notice. The City covenants with the Registered Owner that no later than each principal installment
payment date and interest payment date for this Certificate it will make available to the Paying Agent/Registrar the
amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the
Certificates, when due, in the manner set forth in the ordinance authorizing the issuance of the Certificates adopted
by the City Council of the City on March 27, 2000 (the "Ordinance").
FORM OF REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS*
*Attach to or print on Initial Certificate only
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I HEREBY CERTIFY THAT there is on file and of record in my office a certificate to the effect that the
Attorney General of the State of Texas has examined and finds that this Certificate of Obligation has been issued in
conformity with the Constitution and laws of the State of Texas and is a valid and binding obligation of the City of
La Porte, Texas, and further that this Certificate of Obligation has been registered this day by me.
WITNESS my signature and seal of office this
6
(COMPTROLLER'S SEAL)
Comptroller of Public Accounts of the State of Texas
[END OF FORMS]
In case any officer of the City whose manual or facsimile signature shall appear on any Certificate shall
cease to be such officer before the delivery of any such Certificate, such manual or facsimile signature shall
nevertheless be valid and sufficient for all purposes as if such officer had remained in office until such delivery.
Any Certificate which bears the facsimile signature of such person who at the actual time of the delivery of such
Certificate shall be an officer authorized to sign such Certificate, but who at the date of such Certificate was not such
an officer, shall be validly and sufficiently signed for all purposes as if such person had been such officer at the date
of such Certificate. The City authorizes the printing of a true and correct copy of an opinion of Akin, Gump,
Strauss, Hauer & Feld, L.L.P., Attorneys, relating to the validity and enforceability of the Certificates under Texas
law and the status of interest on the Certificates under federal income tax laws on the reverse side of each of the
Certificates over a certificate of identification executed by the facsimile signature of the City Secretary, and also
authorizes the imprinting of CUSIP (the American Bankers Association's Committee on Uniform Securities
Identification Procedures) numbers on the Certificates; provided, however, that the failure of such opinion,
certificate, or CUSIP numbers to appear on any Certificate, or any errors therein, or in any part of the Certificate the
form of which is not included in this Ordinance, shall in no way affect the validity or enforceability of the
Certificates or relieve the Initial Purchaser (hereinafter defined) of its obligation to accept delivery of and pay for the
Certificates.
SECTION 4. DEFINITIONS. In addition to other words and terms defined in this Ordinance (except those
defined and used in Section 3), and unless a different meaning or intent clearly appears in the context, the following
words and terms shall have the following meanings, respectively:
"Certificates" - Any Certificate or Certificates or all of the Certificates, as the case may be, of that series
styled "City of La Porte, Texas Certificates of Obligation, Series 2000" in the original aggregate principal amount of
$3,000,000 authorized by this Ordinance.
"Code" - The Internal Revenue Code of 1986, as amended.
"Government Obligations" - Direct obligations of the United States of America, which are non -callable
prior to the respective maturities of the Certificates and may be United States Treasury Obligations such as State and
local government series and may be in book entry -form.
"Initial Certificate" - The Certificate registered by the Comptroller of Public Accounts as described in
Section 10 hereof.
"Initial Purchaser" -
"Interest Payment Date" - When used in connection with any Certificate, shall mean September 15, 2000,
and each March 15 and September 15 thereafter until maturity of such Certificate.
"Issuer" or "City" - The City of La Porte, Texas, a municipal corporation and a political subdivision of the
State of Texas, or any successor thereto.
"Net Revenues" - The gross revenues of the System less the expense of operation and maintenance,
including all salaries, labor, materials, interest, 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 security of any bonds payable from and secured by a lien on the "Net Revenues" of the System
shall be deducted in determining "Net Revenues."
"Ordinance" - This "Ordinance Authorizing the Issuance of $3,000,000 City of La Porte, Texas,
Certificates of Obligation, Series 2000, and Other Matters Related Thereto" adopted by the City Council on March
27, 2000.
"Owners" - Any person who shall be the registered owner of any outstanding Certificates.
"Paying Agent/Registrar" - Chase Bank of Texas, National Association and such other bank or trust
company as may hereafter be appointed in substitution therefor or in addition thereto to perform the duties of Paying
Agent/Registrar in accordance with this Ordinance.
"Paying Agent/Registrar Agreement" - The agreement dated as of March 15, 2000, between the Paying
Agent/Registrar and the City relating to the registration, authentication, and transfer of the Certificates substantially
in the form of Exhibit A.
"Record Date" - The last calendar day of the month next preceding the applicable Interest Payment Date.
"Register" - The books of registration kept by the Paying Agent/Registrar in which are maintained the
names and addresses of and the principal amounts registered to each Owner.
"System" - The City's parks and recreation system.
Terms not otherwise defined herein are those used in the Parity Bonds Ordinances.
SECTION 5. CITY FUNDS. The City hereby confirms the establishment of the following funds of the
City at a depository of the City:
(a) Interest and Sinking Fund, Tax Lew. and Pledge of Revenues. A special "City of La Porte Certificates
of Obligation Series 2000 Interest and Sinking Fund" (the "Interest and Sinking Fund") is hereby created and shall
be established and maintained by the City at an official depository bank of the City. 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 paving the
interest on and principal of the Certificates. The net proceeds of all ad valorem taxes levied and collected for and on
account of the Certificates shall be deposited, as collected, to the credit of the Interest and Sinking Fund.
During each year while any of the Certificates or interest thereon are outstanding and unpaid, the governing
body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise
and produce the money required to pay the interest on the Certificates as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the principal thereof as such principal matures (but never less than 2% of
the original principal amount of the Certificates as a sinking fund each year); and the tax shall be based on the latest
approved tax rolls of the Issuer, with full allowances being made for tax delinquencies and the cost of tax collection.
The rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable
property in the Issuer for each year while any of the Certificates or interest thereon are outstanding and unpaid, and
the tax shall be assessed and collected each year and deposited to the credit of the Interest and Sinking Fund. The ad
valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such
interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit
prescribed by law.
The Certificates additionally shall be payable from and secured by a subordinate lien on and pledge of
$1,000 of the revenues of the System, which amount is payable from the revenues remaining after payment of all
operation and maintenance expenses of the System, and all debt service, reserve, and other requirements in
connection with all of the Issuer's revenue bonds or other obligations (now or hereafter outstanding) which are
payable from all or any part of the "Net Revenues" of the System. The City shall deposit such pledged surplus
revenues to the credit of the Interest and Sinking Fund created pursuant to this section.
The City reservesthe right to issue, for any lawful purpose at any time, in one or more installments, bonds,
certificates of obligation, and other obligations of any kind payable in whole or in part from, and secured by a
• 0
pledge of the Net Revenues of the System that may be prior and superior in right to, on a parity with, or junior and
subordinate to the limited pledge of the Net Revenues securing the Certificates.
(b) Construction Fund. A special "City of La Porte Certificates of Obligation Series 2000 Construction
Fund" (the "Construction Fund") is hereby created and shall be established and maintained by the City at an official
depository bank of the City. The Construction Fund is the fund into which the net proceeds of the Certificates shall
be deposited except that. any premium received from the Initial Purchaser shall be deposited to the Interest and
Sinking Fund. Money in the Construction Fund shall be used to pay the costs necessary or appropriate to
accomplish the purposes for which the Certificates are issued.
SECTION 6. INVESTMENTS AND SECURITY. (a) Investment of Funds. The City may place money in
any fund created by this Ordinance in time or demand deposits or invest such money as authorized by law at the
time of such deposit; provided, however, that the City hereby covenants that the proceeds of the sale of the
Certificates will be used as soon as practicable for the purposes for which the Certificates are issued. Obligations
purchased as an investment of money in a fund shall be deemed to be a part of such fund.
(b) Amounts Received from Investments. Except as otherwise provided by law, amounts received from the
investment of the Construction Fund may be retained in such fund or deposited to the Interest and Sinking Fund as
determined by the City Council. Any amounts received from the investment of the Interest and Sinking Fund shall
be deposited in the Interest and Sinking Fund.
(c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest
extent required by law for the security of funds of the City.
(d) Remaining Funds. Any money remaining after the purposes for which the Certificates have been
accomplished shall be deposited in the Interest and Sinking Fund and the Construction Fund shall be closed.
that:
SECTION 7. COVENANTS OF THE CITY. (a) General Covenants. The City covenants and represents
(i) The City is a duly created city, operating and existing under the laws of the State of Texas, and is
duly authorized under the laws of the State of Texas to create and issue the Certificates, all action on its
part for the creation and issuance of the Certificates has been duly and effectively taken, and the
Certificates in the hands of the Owners thereof are and will be valid and enforceable obligations of the City
in accordance with their terms.
(ii) The Certificates shall be ratably secured in such manner that no one Certificate shall have
preference over other Certificates.
(b) Covenants Regarding Tax Matters. The City covenants to take any action to maintain, or refrain from
any action which would adversely affect, the treatment of the Certificates as obligations described in section 103 of
the Code, the interest on which is not includable in "gross income" for federal income tax purposes. In furtherance
thereof, the City specifically covenants as follows:
(i) To refrain from taking any action which would result in the Certificates being treated as "private
activity bonds" within the meaning of section 141(a) of the Code;
(ii) To take any action to assure that no more than 101/6 of the proceeds of the Certificates or the
projects financed therewith are used for any "private business use," as defined in section 141(b)(6) of the
Code or, if more than 101/o of the proceeds or the projects financed therewith 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
Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more
than 10% of the debt service on the Certificates, in contravention of section 141(b)(2) of the Code;
• 0
(iii) To take any action to assure that in the event that the "private business use" described in paragraph
(ii) hereof exceeds 5% of the proceeds of the Certificates or the projects financed therewith, 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;
(iv) 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 Certificates 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;
(v) To refrain from taking any action which would result in the Certificates being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(vi) Except to the extent permitted by section 148 of the Code and the regulations and rulings
thereunder, to refrain from using any portion of the proceeds of the Certificates, directly or indirectly, to
acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as
defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the
Certificates.
(vii) To otherwise restrict the use of the proceeds of the Certificates or amounts treated as proceeds of
the Certificates, as may be necessary, so that the Certificates 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);
(viii) Except to the extent otherwise provided in section 148(f) of the Code and the regulations and
rulings thereunder, to pay to the United States of America at least once during each five year period
(beginning on the date of delivery of the Certificates) an amount that is at least equal to 90% of the "Excess
Earnings," within the meaning of section 148(f) of the Code, and to pay to the United States of America,
not later than 60 days after the Certificates 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;
(ix) To maintain such records as will enable the City to fulfill its responsibilities under this subsection
and sections 141 and 148 of the Code and to retain such records for at least six years following the final
payment of principal and interest on the Certificates; and
(x) To comply with the information reporting requirements of section 149(e) of the Code.
For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred proceeds
and, for purposes of paragraphs (h) and (iii), proceeds of the refunded bonds.
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 Certificates, 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 adversely affect the exclusion from gross income of
interest on the Certificates under section 103 of the Code. In the event that regulations or pilings are hereafter
promulgated which impose additional requirements which are applicable to the Certificates, the City agrees to
comply with the additional requirements to the extent necessary, in the opinion of nationally -recognized bond
counsel, to preserve the exclusion from gross income of interest on the Certificates under section 103 of the Code.
Proper officers of the City charged with the responsibility of issuing the Certificates are hereby authorized
and directed to execute any documents, certificates, or reports required by the Code and to make such elections, on
behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the
Certificates.
10
Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion
from gross income of interest on the Certificates under section 103 of the Code the covenants contained in this
subsection shall survive the later of the defeasance or discharge of the Certificates.
(c) Covenants Regarding Sale, Lease, or Disposition of Financed Property. The City covenants that the City
will regulate the use of the property financed, directly or indirectly, with the proceeds of the Certificates and will not
sell, lease, or otherwise dispose of such property unless (i) the City takes the remedial measures as may be required
by the Code and the regulations and rulings thereunder in order to preserve the exclusion from gross income of
interest on the Certificates under section 103 of the Code or (ii) the City seeks the advice of nationally -recognized
bond counsel with respect to such sale, lease, or other disposition.
SECTION 8. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The City hereby
designates the Certificates as "qualified tax-exempt obligations" as defined in section 265(b)(3) of the Code. In
furtherance of such designation, the City represents, covenants, and warrants the following: (a) during the calendar
year in which the Certificates are issued, the City (including any subordinate entities) has not designated nor will
designate obligations, which when aggregated with the Certificates, will result in more than $10,000,000 of
"qualified tax-exempt obligations" being issued; (b) the City reasonably anticipates that the amount of tax-exempt
obligations issued during 2000 by the City (including any subordinate entities) will not exceed $10,000,000; and (c)
the City will take such action which would assure, or to refrain from such action which would adversely affect, the
treatment of the Certificates as "qualified tax-exempt obligations."
SECTION 9. PAYING AGENT/REGISTRAR. The Paying Agent/Registrar is hereby appointed as paying
agent for the Certificates and the City is hereby authorized to enter into any type of agreement necessary for the
Paying Agent/Registrar to perform its duties hereunder. The principal of and premium, if any, on the Certificates
shall be payable, without exchange or collection charges, in any coin or currency of the United States of America,
which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their
presentation and surrender as they respectively become due and payable at maturity, at the designated payment
office of the Paying Agent/Registrar. The interest on each Certificate shall be payable by check payable on the
Interest Payment Date mailed by the Paying Agent/Registrar on or before each Interest Payment Date to the Owner
of record as of the Record Date, to the address of such Owner as shown on the Register, or in such other manner as
may be acceptable to the Owner and the Paying Agent/Registrar.
The City, the Paying Agent/Registrar, and any other person may treat the person in whose name any
Certificate is registered as the absolute Owner of such Certificate for the purpose of making and receiving payment
of the principal thereof and premium, if any, thereon, and for the further purpose of making and receiving payment
of the interest thereon and for all other purposes, whether or not such Certificate is overdue, and neither the City nor
the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the
person deemed to be the Owner of any Certificate in accordance with this Ordinance shall be valid and effectual and
shall discharge the liability of the City and the Paying Agent/Registrar upon such Certificate to the extent of the
sums paid.
So long as any Certificates remain outstanding, the Paying Agent/Registrar shall keep the Register at its
designated corporate trust office in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent/Registrar shall provide for the registration and transfer of Certificates in accordance with the terms of this
Ordinance.
The City may at any time and from time to time appoint another Paying Agent/Registrar in substitution for
the previous Paying Agent/Registrar, provided that any such Paying Agent/Registrar shall be a corporation
organized and doing business under the laws of the United States of America or any State, authorized under such
laws to exercise trust powers, subject to supervision or examination by federal or state authority, and a transfer agent
registered with the Securities and Exchange Commission. In such event, the City shall give notice by certified mail
to each Owner at least 30 days prior to the effective date of such substitution. Any bank or trust company with or
into which any Paying Agent/Registrar may be merged or consolidated, or to which the assets and business of
Paying Agent/Registrar may be sold or otherwise transferred, shall be deemed the successor of such Paying
Agent/Registrar for the purposes of this Ordinance.
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The Mayor and City Secretary are hereby authorized to enter into, execute, and deliver the Paying
Agent/Registrar Agreement with the initial Paying Agent/Registrar in substantially the form presented to the City on
this date.
SECTION 10. INITIAL CERTIFICATE; EXCHANGE OR TRANSFER OF CERTIFICATES. Initially,
one Certificate (the "Initial Certificate") numbered I-1 as described in Section 2, and representing the entire
principal amount of the Certificates shall be registered in the name of the Initial Purchaser and shall be executed and
submitted to the Attorney General of Texas for approval, and thereupon certified by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent, by manual signature, and the Initial Certificate shall be
effective and valid without the Authentication Certificate being signed by the Paying Agent/Registrar. At any time
thereafter, the Owner may deliver the Initial Certificate to the Paying Agent/Registrar for exchange, accompanied by
instructions from the Owner or designee designating the persons, maturities, and principal amounts to and in which
the Initial Certificates are to be transferred and the addresses of such persons, and the Paying Agent/Registrar shall
thereupon, within not more than three days, register and deliver such Certificates upon authorization of the City as
provided in such instructions.
Each Certificate shall be transferable only upon the presentation and surrender thereof at the designated
payment office of the Paying Agent/Registrar, duly endorsed for transfer, or accompanied by an assignment duly
executed by the Owner or his authorized representative in form satisfactory to the Paying Agent/Registrar. Upon
presentation of any Certificate for transfer, the Paying Agent/Registrar shall authenticate and deliver in exchange
therefor, to the extent possible and under reasonable circumstances within three business days after such
presentation, a new Certificate or Certificates, registered in the name of the transferee or transferees, in authorized
denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the
Certificate or Certificates so presented.
All Certificates shall be exchangeable upon presentation and surrender thereof at the designated payment
office of the Paying Agent/Registrar for a Certificate or Certificates of the same maturity and interest rate and in any
authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Certificate or
Certificates presented for exchange. The Paying Agent/Registrar shall be and is hereby authorized to authenticate
and deliver exchange Certificates in accordance with this Ordinance and each Certificate so delivered shall be
entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of
which such Certificate is delivered.
The City or the Paying Agent/Registrar may require the Owner of any Certificate to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such
Certificate. Any fee or charge of the Paying Agent/Registrar for such transfer or exchange shall be paid by the City.
SECTION 11. SALE AND DELIVERY OF CERTIFICATES. (a) Sale. The sale of the Certificates to the
Initial Purchaser pursuant to the taking of competitive bids at a price of par, plus accrued interest to the date of
delivery [and a premium of $_ j is hereby confirmed. It is hereby officially found, determined, and declared
that the Initial Purchaser submitted the bid which results in the lowest true interest cost to the City and delivery of
the Certificates to the Initial Purchaser shall be made as soon as practicable after the adoption of this Ordinance,
upon payment therefor, in accordance with the terms of sale. The Initial Certificate shall be registered in the name
of the Initial Purchaser. The officers of the City 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.
(b) Approval of Official Statement. The City hereby approves the form and content of the Official
Statement relating to the Certificates and any addenda, supplement, or amendment thereto, and approves the
distribution of such Official Statement in the reoffering of the Certificates by the Initial Purchaser 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. The form and content of and the distribution and use of the
Official Statement dated March 13, 2000, prior to the date hereof is hereby ratified and confirmed. The Council
finds and determines that the Preliminary Official Statement is "deemed final' as that term is defined in 17 C.F.R.
Section 240.15c2-12.
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(c) Legal Oyinion. The Initial Purchaser's obligation to accept delivery of the Certificate is subject to its
being furnished an opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P., Attorneys, such opinion to be dated and
delivered as of the date of delivery and payment for the Certificates.
(d) Registration and Delivery. Upon the registration of the Initial Certificate, the Comptroller of Public
Accounts of the State of Texas is authorized and instruct to deliver the Initial Certificate pursuant to the instruction
of the Mayor for delivery to the Initial Purchaser.
SECTION 12. CITY OFFICERS' DUTIES. (a) Issuance of Certificates. The Mayor shall submit the
Initial Certificate, the record of the proceedings authorizing the issuance of the Certificates, and any and all other
necessary orders, certificates, and records to the Attorney General of the State of Texas for his investigation. After
obtaining the approval of the Attorney General, the Mayor shall cause the Initial Certificate to be registered by the
Comptroller of Public Accounts of the State of Texas. The officers or acting officers of the City are authorized to
execute and deliver on behalf of the City such certificates and instruments as may be necessary or appropriate prior
to delivery of and payment for the Certificates to and by the Initial Purchaser.
(b) Execution of Ordinance. The Mayor and the City Secretary are authorized to execute the Certificate to
which this Ordinance is attached on behalf of the City and to do any and all things proper and necessary to carry out
the intent thereof.
SECTION 13. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the
Certificates provided by the laws of the State of Texas, the City covenants and agrees that in the event the City
defaults in the payment of the principal of or interest on any of the Certificates 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
performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the Owner of any of the
Certificates shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring
the City and other officers of the City to observe and perform 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 Certificates and
shall be cumulative of all other existing remedies.
SECTION 14. LOST, STOLEN, DESTROYED, DAMAGED, OR MUTILATED CERTIFICATES:
DESTRUCTION OF PAID CERTIFICATES. (a) Replacement Certificates. In the event any outstanding Certificate
shall become lost, stolen, destroyed, damaged, or mutilated, at the request of the Owner thereof, the City shall cause
to be executed, registered by the Paying Agent/Registrar, and delivered a substitute Certificate of like date and tenor,
in exchange and substitution for and upon cancellation of such mutilated or damaged Certificate, or in lieu of and
substitution for such Certificate, lost, stolen, or destroyed, subject to the provisions of subsections (b), (c), (d) and
(e) of this Section.
(b) Application and Indemniri. Application for exchange and substitution of lost, stolen, destroyed,
damaged, or mutilated Certificates shall be made to the City. In every case the applicant for a substitute Certificate
shall furnish to the City such deposit for fees and costs as may be required by the City to save it and the Paying
Agent/Registrar harmless from liability. In every case of loss, theft, or destruction of a Certificate, the applicant
shall also furnish to the City indemnity to the City's satisfaction and shall file with the City evidence to the City's
satisfaction of the loss, theft, or destruction and of the ownership of such Certificate. In every case of damage or
mutilation of a Certificate, the applicant shall surrender the Certificate so damaged or mutilated to the Paying
Agent/Registrar.
(c) Matured Certificates. Notwithstanding the foregoing provisions of this Section, in the event any such
Certificate shall have matured, and no default has occurred which is then continuing in payment of the principal of
or interest on the Certificates, the City may authorize the payment of the same (without surrender thereof except in
the case of a damaged or mutilated Certificate) instead of issuing a substitute Certificate, if any, provided security or
indemnity is furnished as above provided in this Section.
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(d) Expenses of Issuance. Upon the issuance of any substitute Certificate, the City may charge the owner
of such Certificate with all fees and costs incurred in connection therewith. Every substitute Certificate issued
pursuant to the provisions of this Section by virtue of the fact that any Certificate is lost, stolen, destroyed, damaged,
or mutilated shall constitute a contractual obligation of the City, whether or not the lost, stolen, destroyed, damaged,
or mutilated Certificate shall be found at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Ordinance equally and proportionately with any and all other Certificates duly issued under this
Ordinance.
(e) Authority to Issue Substitute Certificates. This Ordinance shall constitute sufficient authority for the
issuance of any such substitute Certificate without necessity of further action by the City or any other body or
person, and the issuance of such substitute Certificates is hereby authorized, notwithstanding any other provisions of
this Ordinance.
(f) Destruction of Paid Certificates. At any time subsequent to the payment thereof, the Paying
Agent/Registrar is authorized to cancel and destroy any Certificates duly paid, and promptly after any such
destruction, the Paying Agent/Registrar shall furnish to the City a certificate evidencing such destruction.
SECTION 15. REDEMPTION. The Certificates are subject to optional redemption as described in the
FORM OF CERTIFICATES in Section 3 of this Ordinance.
SECTION 16. DEFEASANCE. Any Certificate shall be deemed to be paid and shall no longer be
considered to be a "Certificate" within the meaning of this Ordinance when payment of the principal of and the
premium, if any, on such Certificate, plus interest thereon to the due date thereof (whether such due date be by
reason of maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the terms
thereof or (ii) shall have been provided for by depositing with an escrow agent (the "Escrow Agent"), for such
payment, (a) money sufficient to make such payment or (b) Governmental Obligations certified by an independent
public accounting firm of national reputation to be of such maturities and interest payment dates and to bear such
interest as will, without further investment or reinvestment of either the principal amount thereof or the interest
earning therefrom (likewise to be held in trust and committed, except as hereinafter provided), be sufficient to make
such payment or (c) a combination of money and Governmental Obligations together so certified to be sufficient;
provided, however, that all the expenses pertaining to the Certificates with respect to which such deposit is made
shall have been paid or the payment thereof provided for to the satisfaction of the Escrow Agent. Notwithstanding
anything herein to the contrary, no such deposit shall have the effect described in this Section if made during the
subsistence of a default in the payment of any Certificate unless made with respect to all of the Certificates then
outstanding. Any money and Governmental Obligations deposited for such purpose shall be held by the Escrow
Agent in a segregated account in trust or escrow for the Owners with respect to which such deposit is made and,
together with any investment income therefrom, shall be disbursed solely to pay the principal of and interest on such
Certificates when due. No money or Governmental Obligations so deposited shall be invested or reinvested unless
in Governmental Obligations and unless such money and Governmental Obligations not invested and such new
investments are together certified by an independent public accounting firm of national reputation to be of such
amounts, maturities, and interest payment dates and to bear such interest as will, without further investment or
reinvestment of either the principal amount thereof or the interest earnings therefrom, be sufficient to make such
payment. At such times as a Certificate shall be deemed to be paid hereunder, as aforesaid, they shall no longer be
entitled to the benefits of this Ordinance, except for the purposes of any such payment from such money or
Governmental Obligations.
SECTION 17. ORDINANCE A CONTRACT; AMENDMENTS. This Ordinance shall constitute a
contract with the Owners, from time to time, of the Certificates, binding on the City and its successors and assigns,
and shall not be amended or repealed by the City as long as any Certificate remains outstanding except as permitted
in this Section. The City 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 adoption of any Parity Bonds
Ordinances, (iii) for the purpose of curing any ambiguity, inconsistency, or formal defect or omission herein, or (iv)
in connection with any other change which is not to the prejudice of the Owners. The City may, with the written
consent of the Owners of a majority in aggregate principal amount of Certificates then outstanding affected thereby,
amend, change, modify, or rescind any provisions of this Ordinance; provided, however, that without the consent of
all of the Owners affected, no such amendment, change, modification, or rescission shall (i) extend the time or times
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of payment of the principal of and interest on the Certificates, reduce the principal amount thereof to the rate of
interest thereon, or in any other way modify the terms of payment of the principal of or interest on bonds or
certificates on a parity with the lien of the Certificates, (ii) give any preference of any Certificate over any other
Certificate, (iii) extend any waiver of default to subsequent defaults, or (iv) reduce the aggregate principal amount of
Certificates required for consent to any such amendment, change, modification, or rescission. When the City desires
to make any amendment or addition to or rescission of this Ordinance requiring consent of the Owners, the City
shall cause notice of the amendment, addition, or rescission to be given as described above for a notice of
redemption. When at any time within one year after the date of the giving of such notice, the City shall receive an
instrument or instruments in writing executed by the appropriate number of Owners of the Certificates then
outstanding affected by any such amendment, addition, or rescission requiring the consent of Owners, 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 form of the copy thereof referred
to in such notice, thereupon, but not otherwise, the City may adopt such amendment, addition, or rescission in
substantially such form, 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 18. CONTINUING DISCLOSURE. (a) Annual Reports. The City shall provide annually to
each nationally -recognized municipal securities information repository ("NRMSIR") and to any state information
depository ("SID"), within six months after the end of each fiscal year ending in or after 2000, financial information
and operating data with respect to the City of the general type included in the final Official Statement authorized by
Section 15 of this Ordinance, being the information described in Exhibit B hereto. Any financial statements so to be
provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2)
audited, if the City commissions an audit of such statements and the audit is completed within the period during
which they must be provided. If the audit of such financial statements is not complete within such period, the City
shall provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID when and if
the audit report on such statements becomes available.
If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date
of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial
information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may be set forth in full
in one or more documents or may be included by specific reference to any document (including an official statement
or other offering document) if it is available from the Municipal Securities Rulemaking Board (the "MSRB") that
theretofore has been provided to each NRMSIR and any SID or filed with the Securities and Exchange Commission
(the "SEC").
(b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a
timely manner, of any of the following events with respect to the Certificates, if such event is material within the
meaning of the federal securities laws: (i) principal and interest payment delinquencies; (ii) non-payment related
defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on
credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure
to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the Certificates; (vii) modifications
to rights of holders of the Certificates; (viii) calls; (ix) defeasances; (x) release, substitution, or sale of property
securing repayment of the Certificates; and (xi) rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by
the City to provide financial information or operating data in accordance with this Section by the time required by
this Section.
(c) Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the
covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person"
with respect to the Certificates within the meaning of SEC Rule 15c2-12 (the "Rule"), except that the City in any
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event will give notice of any deposit made in accordance with Section 17 above that causes the Certificates no
longer to be outstanding and any call of Certificates made in connection therewith.
The provisions of this Section are for the sole benefit of the Owners and beneficial owners of the
Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right,
remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section
and does not hereby undertake to provide any other information that may be relevant or material to a complete
presentation of the City's financial results, condition, or prospects or hereby undertake to update any information
provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make
any representation or warranty concerning such information or its usefulness to a decision to invest in or sell
Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR BENEFICIAL
OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR
WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC
PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall comprise a breach
of or default under this Ordinance for purposes of any other provisions of this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City
under federal and state securities laws.
The provisions of this Section may be amended, supplemented, or repealed by the City from time to time
under the following circumstances, but not otherwise: (1) to adapt to changed circumstances that arise from a change
in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if
the provisions of this Section, as so supplemented or amended, would have permitted an underwriter to purchase or
sell Certificates in the present offering in compliance with the Rule and either the Owners of a majority iri aggregate
principal amount of the outstanding Certificates consent to such amendment, supplement, or repeal, or any State
agency or official determines that such amendment, supplement, or repeal will not materially impair the interests of
the beneficial owners of the Certificates, (2) upon repeal of the applicable provisions of the Rule, or any judgment
by a court of final jurisdiction that such provisions are invalid, or (3) in any other circumstance or manner permitted
by the Rule.
SECTION 19. OTHER DOCUMENTS. The Mayor and the City Secretary are hereby authorized to
execute and attest to such other documents, certificates, letters of instruction, tax information forms, and other
agreements of any kind which, in the opinion of Bond Counsel, are necessary or advisable in order to issue the
Certificates and verify that the interest on the Certificates will be exempt from gross income of the holders thereof
under current federal tax law.
SECTION 20. FURTHER PROCEDURES. The Mayor and the City Secretary, and all other officers,
employees, attorneys, and agents of the City and each of them, shall be and they are hereby expressly authorized,
empowered, and directed from time to time and at any time to do and perform all such acts and things and to
execute, acknowledge, and deliver in the name and under the 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 terms and provisions of
this Ordinance, the Certificates, and the Official Statement. In case any officer whose signature shall appear on any
Certificate shall cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be
valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Prior to
the initial delivery of .the Certificates, the Mayor and the City Secretary and Bond Counsel to the City are hereby
authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the
instruments authorized by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or
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more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from
any of the national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas Attorney
General's office.
SECTION 21. MISCELLANEOUS PROVISIONS. (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 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 City 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.
(e) Open Meeting. The City officially finds and determines the meeting at which this Ordinance is adopted
was open to the public and that public notice of the time, place, and purpose of such meeting was given, all as
required by Chapter 551, Texas Government Code.
(f) 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 March 27, 2000.
ATTEST:
City Secretary, City of La Porte, Texas
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Mayor, Cityof LaPorte, Texas
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PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT entered into as of March 15, 2000 (the
"Agreement"), by and between the CITY OF LA PORTE, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States
of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas
Certificates of Obligation, Series 2000" (the "Securities"), such Securities to be issued in fully registered form only
as to the payment of principal and interest thereon;
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the
"Ordinance" (hereinafter defined);
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the
payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration,
transfer, and exchange thereof by the registered owners thereof;
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full
power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE. I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to
the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer
the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered
owners thereof, all in accordance with this Agreement and the Ordinance.
The Issuer hereby appoints the Bank as Registrar «rith respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of
said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the
Securities.
Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in Schedule A attached hereto for the first year
of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days
prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
A-1
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ARTICLE II. DEFINITIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:
"Bank Office" means the designated principal corporate trust office of the Bank as indicated on the
signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Bank Principal Payment Office" means Dallas, Texas.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer
by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the
Issuer, any one or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank. is required or authorized to be closed.
"Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are
issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political subdivision of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition,
any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered
in lieu thereof pursuant to Section 4.06 hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice -Chairman of the
Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank
customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be
due and payable.
Section 2.02. Other Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the
meanings assigned to them in the recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this
Agreement.
A-2
• 0
ARTICLE III. PAYING AGENT
Section 3.01. Duties of Paving Agent. As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Principal Payment Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail,
first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on
the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to
the Bank, requested in writing by the Holder at the Holder's risk and expense.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on
the Securities on the dates specified in the Ordinance.
ARTICLE IV. REGISTRAR
Section 4.01. Security Register - Transfers and Exchanges. The Bank agrees to keep and maintain for
and on behalf of the Issuer at the Bank Principal Payment. Office books and records (herein sometimes referred to as
the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer,
exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the
Holders and containing such other information as may be reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register. A copy of the Security Register will be maintained at the offices
of the Bank's agent in Houston, Texas.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a
member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re -registration, transfer,
or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities
delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the
Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange
duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate
transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in
safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political
subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities.
Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has currently available and currently utilizes at the time.
A-3
The Security Register may be maintained in written form or in any other form capable of being converted
into written form within a reasonable time.
Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer
may also inspect the information contained in the Security Register at any time the Bank is customarily open for
business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the
information into written :form.
Unless required by law, the Bank will not release or disclose the contents of the Security Register to any
person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt
of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure
of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order
or such release or disclosure of the contents of the Security Register.
Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered
to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank.
The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and
delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such
destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and
regulations of the Securities and Exchange Commission.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen Securities. The Issuer hereby instructs the Bank,
subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute
and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in
substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of
evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer
and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation,
execution, and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or
destroyed, lost, or stolen.
Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section
3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and
Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06.
Section 4.0& Redeemption of Securities. Securities which are redeemable before their stated maturity shall
be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV.
Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the
expense of the Issuer not less than 30 or more than 45 days prior to the date of redemption, to each Registered
Owner of Securities to be redeemed and otherwise required by the Ordinance.
All notices of redemption shall include the CUSIP number and statement as to:
(a) the date of redemption;
A-4
(b) the price of the Securities expressed as a percentage of par amount of the Securities;
(c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be
redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be
redeemed;
(d) that on the date of redemption the principal of each of the Securities to be redeemed will become due
and payable and that the interest thereon shall cease to accrue from and after said date; and
(e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of
redemption at the designated principal payment office of the Bank, and the address of such office.
The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and
information services based upon the then current guidelines of the Securities and Exchange Commission relating to
redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer,
shall also provide notice to any other addressees as the Issuer shall designate in writing.
ARTICLE V. THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to
use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise
incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
patties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer
or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall
not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or
document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel
shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it
hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or
by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the
Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
A-:5
Section 5.04. May Hold Securities. The Bank, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.05. Money Held by Bank. (a) Money held by the Bank hereunder shall be held for the benefit
of the Registered Owners of the Securities.
(b) The Bank shall be under no obligation to pay interest on any money received by it hereunder.
(c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the
payment of the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for
three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank
in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such
provisions are applicable to such amounts.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or
controversy over its person as well as funds on deposit, .in either the District Court of Harris County, Texas, or the
United States Federal District Court for the Southern District of Texas, waive personal service of any process, and
agree that service of process by certified or registered mail, return receipt requested, to the address set forth in
Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the
right to file a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the
rights of any persons claiming any interest herein.
Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank
for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the exercise or performance of any of its powers or duties
under this Agreement.
Section 5.07. In.teroleader. The Issuer and the Bank agree that the Bank may seek adjudication of any
adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State
District Court located in the State and County where either the Bank Office or the administrative offices of the
Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the
address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Company Services. It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent
depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will
comply with the "Operational Arrangements," effective August 1, 1987, which establishes requirements for
securities to be eligible for such type depository trust services, including, but not limited to, requirements for the
timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE VI. MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by
both of the panties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.
Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other
document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown on the signature page of this Agreement.
A-6
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.
Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.0& Entire Agreement. This Agreement and the Ordinance constitute the entire agreement
between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between
this Agreement and the Ordinance, the Ordinance shall govern.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal
of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days
written notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b)
notice has been given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement
shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security
Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the
successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas.
(Remainder of this page intentionally left blank.)
A-7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
Attest:
By
Title
(BANK SEAL)
Attest:
By
City Secretary
(ISSUER SEAL)
A-8
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
By
Title _
Address:
600 Travis, Suite 1150
Houston, Texas 77002
CITY OF LA PORTE, TEXAS
By
Mayor
Address 604 West Fairmont
LaPorte, Texas 77571
9 •
SCHEDULE A
Paying Agent/Registrar Fee Schedule
(To be furnished by the Bank)
EXHIBIT B
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 18 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually in accordance
with such Section are as specified and included in the Appendix or under the headings of the Official Statement
referred to below:
1. The audited financial statements of the City for the most recently concluded fiscal year.
2. The information included in the Official Statement under the headings "FINANCIAL
INFORMATION", "TAX COLLECTION PERIOD", "TAX COLLECTION RECORD", "TAX RATE
LIMITATIONS", "TAX RATE DISTRIBUTION", "TAX ADEQUACY", "CITY SALES TAX", "GENERAL
OBLIGATION BONDS AUTHORIZED BUT UNISSUED", "RATINGS ON OUTSTANDING GENERAL
OBLIGATIONS BONDS", "FLOATING DEBT OUTSTANDING", "PRINCIPAL TAXPAYERS",
"OVERLAPPING TAX RATE STATEMENT", "ESTIMATED DIRECT & OVERLAPPING DEBT
STATEMENT', "HISTORY OF GENERAL FUND REVENUE AND EXPENDITURES", and "REVENUE
BONDS AUTHORIZED BUT UNISSUED".
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described in the notes to
the financial statements referred to in paragraph I above, as such principles may be changed from time to time to
comply with state law or regulation.
(Please attach newspaper clippings here.)
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS
COUNTY OF HARRIS
BEFORE ME, the undersigned authority, on this day, personally appeared John Black
Editor & Publisher , an authorized officer or employee of the BAYSHORE SUN (the
"Newspaper"), who being by me duly sworn, upon oath, deposes and says:
The attached clippings of a NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
OBLIGATION were published in the Newspaper on March 05 , 2000 and
March 12 , 2000, and the attached newspaper clippings are true and correct copies of said
published notice.
follows:
The Newspaper meets the qualifications set out in Section 2051.044, Texas Government Code, as
1. The Newspaper devotes not less than 25% of its total column lineage to general interest items;
2. Is published at least once a week;
3. Is entered as second-class postal matter in Harris County where published; and
4. Has been published regularly and continuously for at least 12 months before March 1, 2000.
By.
Authorized Officer or Employee
SWORN TO AND SUBSCRIBED BEFORE ME, this 13th day of March
2000.
Notary Public
State of Texas
(NOTARY SEAL)
SANORA E. BUMGARNER
NOTARY PUBLIC, STATE OF TEXAS
MY COMMISSION EXPIRES
FEB. 19, 2002
•
Public
Notices
NOTICE OF INTENTION
TO ISSUE
CERTIFICATES OF
OBLIGATION
NOTICE Is here-
by given that it is the inten-
tion of the City Council
(the "City Council") of the
City of La Porte, Texas
(the "City') to adopt an Or-
dinance providing for the
issuance of interest- bear-
ing obligations of the City
presently 'contemplated .to
be designated and known
as the "CITY OF LA
PORTE TEXAS CERTIFI-
CA OF OBI -IGATION,
;� S 2�0bI (the "Certif-
of jObligation") for
the'o a of provifi-
library ith' a Ci and
of the y enpfac-
tual o' Ig to
or fes-
sional a c�in connec-
tion therewi (to wit: archi-
tectural, engineering, fi-
nancial advisory, and le-
gal). The City Council ten-
tatively proposes to au-
thorize the issuance of the
Certificates of Obligation
at its . regular meeting
place In the City Hall, La
Porte, Texas, at a meeting
of the City Council to be
commenced at 6:00 p.m.,
on the 27th day of March,
2000, In an amount ex-
pected not to exceed
$3,000,000. The City
Council proposes to pro-
vide for payment' of the
Certificates of Obligation
from a pledge of an annual
ad valorem tax and not to
exceed $1,000 of the reve-
nues of the City's park and
recreation system.
NOTICE OF INTENTION
TO ISSUE
CERTIFICATES OF
OBLIGATION
NO s tirl
-
by given that it is e Idon of the City Coi(the "City Coun ") o
City of La Porte, Texas
(the "City') to adopt an Or-
dinance providing for the
Issuance of Interest- bear
Ing obligations of the Cit.
presently contemplated b
be designated and know,
as the "CITY OF U
PORTE TEXAS CERTIFI-
CATES OF OBLIGATION,
SERIES 2000" (the "Certif-
icates of Obligation") for
the purpose of providing fi-
nancing for construction
and equipment of a public
library within the City and
of the payment of contrac-
tual obligation for profes-
slonal services in connec-
tion therewith (to wit: archi-
tectural, engineering, fi-
nancial advisory, and le-
gal). The City Council ten-
tatively proposes to au-
thorize the issuance of the
Certificates of Obligation
at its regular meeting
place in the City
Porte, Texas, at a meeting
of the City Council to be
commenced at 6:00 p.m.,
on the 27th day of March,
2000, in an amount ex-
pected not to exceed
$3,000,000. The City
Council proposes to pro-
vide for payment of the
Certificates of Obligation
from a e of an annual
ad v : rem and not to w
xceed $1.0. e.reve-
es of thel ity's park and
r read _ tem:
e /s/ Norman Malone
Mayor,'Clty of La Porte,
Texas
/s/ Norman Malone
Mayor, City of La Porte,
Texas
MORONEY, BEISSNER & CO., INC.
Municpal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
Bloomberg Municipal Repositories
100 Business Park Dr.
Skillman, NJ 08558
Attn: Municipal Depository
713-960-8900
7131960-8904 Facsimilie
March 20, 2000
Kenny Information Systems, Inc.
Attn: Kenny Repository Service
65 Broadway, 16th Fl.
New York, NY 10006
Thomson NRMSIR DPC Data, Inc.
Attn: Municipal Disclosure One Executive Dr.
395 Hudson St., 3rd Fl. Fort Lee, NJ 07024
New York, NY 10014
Municipal Advisory Council of Texas R E C E! Y E D
600 W. Eighth St.
Austin, TX 78701 MAR 4 1 2000
CITY SECRETARY'S
Re: City of La Porte, Texas (Harris County) OFFICE
Dear Sir or Madam:
Enclosed is the Audit Report for fiscal year ending September 30, 1999, and the required cover
sheet for the above referenced City. This document is being filed to comply with the City's continuing
disclosure agreement entered into pursuant to SEC Rule 15(c)2-12.
Should you have any questions, please do not hesitate to contact me at (713) 960-8900. Thank
you for your attention to this matter.
RDF:smt
enclosures
cc: City of La Porte
Sincerely,
'.a te
R. David ; t
President
Established in 1919
Mcial Notice of Sale and Official Statement R E C E IV E D•
y of La Porte, Texas
(Harris County) MAR 16 2000
$3,250,000 General Obligation Bonds, Series 2000
and CITY SECRETARY'S
$3,000,000 Certificates of Obligation, Series 2000 OFFICE
"Qualified Tax Exempt Obligations"
: � ... . . _ .,: •'.: ..two ..-. ...t ....... :'Y �.,.._,-'.
=.a
+
:W .— mow, .. ?
SELLING: March 27, 2000
6:00 P.M., CST
Prepared under the direction of:
Moroney, Beissner & Co., Inc.
Houston, Texas
Financial Advisors to the City
RATINGS ON OUTSTANDING BONDS:
Insured G.O.'s Underlying
Moody's "Aaa" "Aa3"
S&P's "AAA" "A+"
New Rutin,Es Applied For
ORDINANCE NO. [0 ✓ z 0
ORDINANCE AUTHORIZING THE ISSUANCE OF $3,000,000 CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000 AND OTHER MATTERS RELATED THERETO
WHEREAS, the City Council of the City of La Porte (the "Issuer" or the "City") deems it advisable to
issue Certificates of Obligation hereinafter described (the "Certificates") in the original aggregate principal amount
of $3,000,000 for the purpose of providing for the payment of contractual obligations to be incurred for financing
for construction and equipment for public library purposes and of the payment of contractual obligations for
professional services in connection therewith (including, but not limited to, architectural, financial advisory, legal,
and engineering).
WHEREAS, the Certificates hereinafter authorized and designated are to be issued and delivered for cash
pursuant to Chapters 1501 and 1502, Texas Government Code, as amended, and the Certificate of Obligation Act of
1971, Section 271.041 et seq, Texas Local Government Code, as amended (the "Act");
WHEREAS, the City Council has heretofore, on February 28, 2000, passed a resolution authorizing and
directing the City Secretary to give notice of intention to issue the Certificates, which notice has been duly published
in the Bayshore Sun, which is a newspaper of general circulation in the City, in its issues of March 5, 2000 and
March 12, 2000, the date of the first publication being at least 14 days prior to the tentative date stated in the notice
for passage of this Ordinance;
WHEREAS, the City has received no petition from the qualified electors of the City protesting the issuance
of the Certificates; and
WHEREAS, it is considered to be in the best interest of the City that the Certificates be issued bearing the
date, interest rates, denominations, and maturities as hereafter provided;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS, THAT:
SECTION 1. AUTHORIZATION OF THE CERTIFICATES. There is hereby authorized to be issued and
delivered, a series of certificates of obligation of the City, to be known as "CITY OF LA PORTE, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2000" (the "Certificates"), in the original aggregate principal amount
of $3,000,000 payable from ad valorem taxes and a limited pledge of $1,000 of the revenues of the City's parks and
recreation system, for the purposes described in the Form of Certificates contained in Section 3 hereof.
SECTION 2. DATE, DENOMINATIONS. NUMBERS, AND MATURITIES OF THE CERTIFICATES.
The Certificates shall be dated as of March 15, 2000, shall be in denominations of $5,000 each or any integral
multiple thereof, shall be numbered I-1 for the Initial Certificate and consecutively from R-1 upward for the
definitive certificates and shall mature on March 15 in each of the years as provided below. The Certificates shall
bear interest at the rates per annum shown below from the dated date, and payable on September 15, 2000 and on
each March 15 and September 15 thereafter through the respective maturity date as shown below:
Year of
Principal Interest
Year of
Principal Interest
Maturi
Payment Rate
Maturity
Payment Rate
2001
$150.,000
2011
$150,000
2002
150,000
2012
150,000
2003
150,000
2013
150,000
2004
150.000
2014
150,000
2005
150,.000
2015
150,000
2006
150,000
2016
150,000
2007
150,000
2017
150,000
2008
150,000
2018
150,000
2009
150,000
2019
150,000
2010
150,000
2020
150,000
SECTION 3. GENERAL CHARACTERISTICS AND FORM OF THE CERTIFICATES. The
Certificates shall be issued, shall be payable, shall have the characteristics, and shall be signed and executed (and the
Certificates shall be sealed) all as provided and in the manner indicated in the form set forth below. The Certificates
are not subject to optional redemption. The Form of the Certificates, the Form of the Registration Certificate of the
Comptroller of Public Accounts of the State of Texas to. be printed and manually endorsed on the Initial Certificate,
the Form of the Authentication Certificate, (the Form of Statement of Insurance,] and the Form of Assignment,
which shall be, respectively, substantially as follows, with necessary and appropriate variations, omissions, and
insertions as permitted or required by this Ordinance, and the definitions contained within each such form shall
apply solely to such form:
FORM OF DEFINITIVE CERTIFICATES
NUMBER
R-
REGISTERED
INTEREST RATE:
REGISTERED OWNER:
PRINCIPAL AMOUNT: S
FORM OF CERTIFICATES
United Staters of America
State of Texas
DENOMINATION
REGISTERED
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2000
MATURITY DATE: DATED DATE: CUSIP:
March 15, 2000
THE CITY OF LA PORTE, TEXAS (the "Issuer" or the "City"), being a municipal corporation of the State
of Texas, promises to pay to the Registered Owner, specified above, or registered assigns (the "Registered Owner"),
on the Maturity Date, specified above, upon presentation and surrender of this Certificate at the agent of CHASE
BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, or its successor (the "Paying Agent/Registrar,),
to wit: the Principal Amount, specified above, in lawful money of the United States of America, and to pay interest
thereon at the Interest Rate, specified above, calculated on the basis of a 360-day year of twelve 30-day months,
from the Dated Date, specified above. Interest on this Certificate is payable by check payable on September 15,
2000, and each March 15 and September 15 thereafter, mailed to the Registered Owner of record as shown on the
books of registration kept by the Paying Agent/Registrar, as of the Record Date, or in such other manner as may be
acceptable to the Registered Owner and the Paying Agent/Registrar. The record date ("Record Date") for payments
hereon means the last calendar day of the month preceding a scheduled payment. In the event of a non-payment of
interest on a scheduled payment date, and for 30 days thereafter, a new record date for such payment (a "Special
Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment thereof have
been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due
payment (the "Special Payment Date", which shall be 15 calendar 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 the Registered Owner 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 that no later than each principal installment payment date and interest payment date for this Certificate it will
make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately
available funds, of all principal of and interest on the Certificates, when due, in the manner set forth in the ordinance
authorizing the issuance of the Certificates adopted by the City Council of the City on March 27, 2000 (the
"Ordinance").
• 9
THIS CERTIFICATE is one of a series of Certificates (the "Certificates") dated as of the Dated Date,
specified above, of like designation, date, and tenor, except as to number, interest rate, denomination, and maturity
issued pursuant to the Ordinance in the original aggregate principal amount of $3,000,000 for the purpose of
providing for the payment of contractual obligations to be incurred for the purpose of financing for construction and
equipment for public library purposes and of the payment of contractual obligations for professional services in
connection therewith (including, but not limited to, architectural, financial advisory, legal, and engineering).
*REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS CERTIFICATE SET
FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND
EFFECT AS IF SET FORTH IN THIS SPACE.
**IN WITNESS WHEREOF, this Certificate has been 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
the official seal of the Issuer has been duly impressed, or placed in facsimile, on this Certificate.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
City Secretary Mayor
(CITY SEAL)
(Back Panel of Certificates)
THE CERTIFICATES are issued pursuant to the Ordinance whereunder the City Council of the City
covenants to levy a continuing, direct, annual ad valorem tax on taxable property within the City, within the limits
prescribed by law, for each year while any part of the Certificates are considered outstanding under the provisions of
the Ordinance, in a sufficient amount to pay interest on each Certificate as it becomes due, to provide a sinking fund
for the payment of the principal of the Certificates when due, and to pay the expenses of assessing and collecting
such tax, and this Certificate is additionally secured by and payable from a limited pledge of $1,000 from the
revenues of the Issuer's parks and recreation system (the "System"), which amount is payable from the revenues
remaining after payment of all operation and maintenance expenses of the System, and all debt service, reserve, and
other requirements in connection with all of the Issuer's revenue bonds or other obligations (now or hereafter
outstanding) which are payable from all or any part of the "Net Revenues" of the System. Reference is hereby made
to the Ordinance for provisions with respect to the custody and application of the City's funds, remedies in the event
of a default hereunder or thereunder, and the other rights of the Registered Owner. By acceptance of this Certificate,
the Registered Owner consents to all of the provisions of the Ordinance, a certified copy of which is on file in the
office of the City Secretary.
THE CITY RESERVES THE RIGHT to redeem the Certificates maturing on or after March 15, 2011, in
whole or in part, in integral multiples of $5,000, on March 15, 2010, or on any date thereafter. Such optional
redemptions shall be at a redemption price of par plus accrued interest on the principal amounts called for
redemption to the date fixed for redemption. If less than all of the Certificates are to be redeemed, the particular
Certificates to be redeemed shall be selected by the City in. integral multiples of $5,000 within any one maturity. At
least 45 days prior to the date fixed for any redemption of Certificates or portions thereof prior to maturity a written
notice of such redemption shall be given by the City to the Paying Agent/Registrar, and the Paying Agent/Registrar
shall send a copy of such notice at least 30 days prior to the date fixed for redemption by United States mail, first
class, postage prepaid, addressed to the registered owner of each Certificate to be redeemed in whole or in part at the
address shown on the Registration Books; 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 Certificate. When Certificates or portions thereof have been called for
redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be
payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts
called for redemption shall terminate on the date fixed for redemption.
THIS CERTIFICATE IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender
at the designated payment office of the Paying Agent/Registrar. If this Certificate 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 terms and conditions of the Ordinance. If this Certificate is being
exchanged, it shall be in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and
conditions of the Ordinance. The Registered Owner of this Certificate shall be deemed and treated by the City and
the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of
liability upon this Certificate to the extent of such payment, and the City and the Paying Agent/Registrar shall not be
affected by any notice to the contrary.
IN THE EVENT any Paying Agent/Registrar for the Certificates 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 cause written notice thereof to be mailed to the Registered Owners.
IT IS HEREBY CERTIFIED, COVENANTED, AND REPRESENTED that all acts, conditions, and things
necessary to be done precedent to the issuance of the Certificates in order to render the same legal, valid, and
binding obligations of the City have happened and have been accomplished and performed in regular and due time,
form, and manner, as required by law; that provision has been made for the payment of the principal of and interest
on the Certificates by the levy of a continuing, direct, annual ad valorem tax upon all taxable property within the
City, within the limit prescribed by law, and from the above described limited pledge of the surplus revenues of the
System; and that issuance of the Certificates does not exceed any constitutional or statutory limitation.
BY BECOMING the Registered Owner of this Certificate, the Registered Owner thereby acknowledges all
of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, and agrees that the
terms and provisions of this Certificate and the Ordinance constitute a contract between each Registered Owner and
the City.
FORM OF AUTHENTICATION CERTIFICATE
AUTHENTICATION CERTIFICATE
This Certificate of Obligation is one of the Certificates described in and delivered pursuant to the within -
mentioned Ordinance, and this Certificate has been issued in conversion of and exchange for, or replacement of, a
Certificate, Certificates, or a portion of a Certificate or Certificates of an issue which was originally approved by the
Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Registration Date:
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
Paying Agent/Registrar
By
Authorized Signature
[FORM OF STATEMENT OF INSURANCE
STATEMENT OF INSURANCE]
0
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
(Please insert Social Security or Taxpayer (Please print or typewrite name and address, including zip code, of Transferee)
Identification Number of Transferee)
the within Certificate of Obligation and all rights thereunder, and hereby irrevocably constitutes and appoints
within Certificate of Obligation on the books kept for registration thereof,
premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a
member firm of the New York Stock Exchange or a
commercial bank or trust company.
attorney to register the transfer of the
with full power of substitution in the
NOTICE: The signature above must correspond with
the name of the Registered Owner as it appears upon
the front of this Certificate of Obligation in every
particular, without alteration or enlargement or any
change whatsoever.
The following abbreviations, when used in the Assignment above or on the face of the within Certificate of
Obligation, 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)
under Uniform Gifts to Minors Act
(State)
Additional abbreviations may also be used though not in the list above.
(Minor)
FORM OF INITIAL CERTIFICATE
The Initial Certificate shall be in the form set forth above for the Definitive Certificates except the
following shall replace the heading and the first paragraph:
NO. I-1
DATED DATE:
REGISTERED OWNER:
United States of America
State of. Texas
CITY OF LA PORTE, TEXAS
CERTIFICATE OF OBLIGATION,
SERIES 2000
March 15, 2000
$3,000,000
Principal Amount: THREE MILLION DOLLARS ($3,000,000)
THE CITY OF LA PORTE, TEXAS (the "City" or the "Issuer"), for value received, acknowledges itself
indebted to and hereby promises to pay to the order of the Registered Owner, specified above, or the registered
assigns thereof (the "Registered Owner"), the Principal Amount, specified above, with principal installments
payable on March 15 in each of the years, and bearing interest at per annum rates in accordance with the following
schedule:
YEARS OF PRINCIPAL INTEREST
STATED MATURITIES INSTALLMENTS RATES
(Information to be inserted from schedule in Section 2.)
INTEREST on the unpaid Principal Amount hereof from the Dated Date, specified above, or from the most
recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has
become due and payment thereof has been made or duly provided for shall be paid computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on March 15 and September 15 of each year,
commencing September 15, 2000.
THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money of the United
States of America, without exchange or collection chargers. The final payment of principal of this Certificate shall
be paid to the Registered Owner hereof upon presentation and surrender of this Certificate at final maturity, at the
designated payment office of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, which is
the "Paying Agent/Registrar" for this Certificate. The: payment of principal installments and interest on this
Certificate 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 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 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 payments hereon means the last calendar day of the month preceding a
scheduled payment. In the event of a non-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment thereof have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due payment (the "Special Payment Date", which shall
be 15 calendar 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 the Registered Owner 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 that no later than each principal installment
payment date and interest payment date for this Certificate it will make available to the Paying Agent/Registrar the
amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the
Certificates, when due, in the manner set forth in the ordinance authorizing the issuance of the Certificates adopted
by the City Council of the City on March 27, 2000 (the "Ordinance").
FORM OF REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS*
*Attach to or print on Initial Certificate only
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I HEREBY CERTIFY THAT there is on file and of record in my office a certificate to the effect that the
Attorney General of the State of Texas has examined and finds that this Certificate of Obligation has been issued in
conformity with the Constitution and laws of the State of Texas and is a valid and binding obligation of the City of
La Porte, Texas, and further that this Certificate of Obligation has been registered this day by me.
6
�7_
WITNESS my signature and seal of office this
(COMPTROLLER'S SEAL)
Comptroller of Public Accounts of the State of Texas
[END OF FORMS]
In case any officer of the City whose manual or facsimile signature shall appear on any Certificate shall
cease to be such officer before the delivery of any such Certificate, such manual or facsimile signature shall
nevertheless be valid and sufficient for all purposes as if such officer had remained in office until such delivery.
Any Certificate which bears the facsimile signature of such person who at the actual time of the delivery of such
Certificate shall be an officer authorized to sign such Certificate, but who at the date of such Certificate was not such
an officer, shall be validly and sufficiently signed for all purposes as if such person had been such officer at the date
of such Certificate. The City authorizes the printing of a true and correct copy of an opinion of Akin, Gump,
Strauss, Hauer & Feld, L.L.P., Attorneys, relating to the validity and enforceability of the Certificates under Texas
law and the status of interest on the Certificates under federal income tax laws on the reverse side of each of the
Certificates over a certificate of identification executed by the facsimile signature of the City Secretary, and also
authorizes the imprinting of CUSIP (the American Bankers Association's Committee on Uniform Securities
Identification Procedures) numbers on the Certificates; provided, however, that the failure of such opinion,
certificate, or CUSIP numbers to appear on any Certificate, or any errors therein, or in any part of the Certificate the
form of which is not included in this Ordinance, shall in no way affect the validity or enforceability of the
Certificates or relieve the Initial Purchaser (hereinafter defined) of its obligation to accept delivery of and pay for the
Certificates.
SECTION 4. DEFINITIONS. In addition to other words and terms defined in this Ordinance (except those
defined and used in Section 3), and unless a different meaning or intent clearly appears in the context, the following
words and terms shall have the following meanings, respectively:
"Certificates" - Any Certificate or Certificates or all of the Certificates, as the case may be, of that series
styled "City of La Porte, Texas Certificates of Obligation, Series 2000" in the original aggregate principal amount of
$3,000,000 authorized by this Ordinance.
"Code" - The Internal Revenue Code of 1986, as amended.
"Government Obligations" - Direct obligations of the United States of America, which are non -callable
prior to the respective maturities of the Certificates and may be United States Treasury Obligations such as State and
local government series and may be in book entry -form.
"Initial Certificate" - The Certificate registered by the Comptroller of Public Accounts as described in
Section 10 hereof.
"Initial Purchaser" -
"Interest Payment Date" - When used in connection with any Certificate, shall mean September 15, 2000,
and each March 15 and September 15 thereafter until maturity of such Certificate.
"Issuer" or "City" - The City of La Porte, Texas, a municipal corporation and a political subdivision of the
State of Texas, or any successor thereto.
"Net Revenues" - The gross revenues of the System less the expense of operation and maintenance,
including all salaries, labor, materials, interest, 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
7
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 security of any bonds payable from and secured by a lien on the "Net Revenues" of the System
shall be deducted in determining "Net Revenues."
"Ordinance" - This "Ordinance Authorizing the Issuance of $3,000,000 City of La Porte, Texas,
Certificates of Obligation, Series 2000, and Other Matters Related Thereto" adopted by the City Council on March
27, 2000.
"Owners" - Any person who shall be the registered owner of any outstanding Certificates.
"Paying Agent/Registrar" - Chase Bank of Texas, National Association and such other bank or trust
company as may hereafter be appointed in substitution therefor or in addition thereto to perform the duties of Paying
Agent/Registrar in accordance with this Ordinance.
"Paying Agent/Registrar Agreement" - The agreement dated as of March 15, 2000, between the Paying
Agent/Registrar and the City relating to the registration, authentication, and transfer of the Certificates substantially
in the form of Exhibit A.
"Record Date" - The last calendar day of the month next preceding the applicable Interest Payment Date.
"Register" - The books of registration kept by the Paying Agent/Registrar in which are maintained the
names and addresses of and the principal amounts registered to each Owner.
"System" - The City's parks and recreation system.
Terms not otherwise defined herein are those used in the Parity Bonds Ordinances.
SECTION 5. CITY FUNDS. The City hereby confirms the establishment of the following funds of the
City at a depository of the City:
(a) Interest and Sinking Fund, Tax Levy, and Pledge of Revenues. A special "City of La Porte Certificates
of Obligation Series 2000 Interest and Sinking Fund" (the "Interest and Sinking Fund") is hereby created and shall
be established and maintained by the City at an official depository bank of the City. 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 Certificates. The net proceeds of all ad valorem taxes levied and collected for and on
account of the Certificates shall be deposited, as collected, to the credit of the Interest and Sinking Fund.
During each year while any of the Certificates or interest thereon are outstanding and unpaid, the governing
body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise
and produce the money required to pay the interest on the Certificates as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the principal thereof as such principal matures (but never less than 2% of
the original principal amount of the Certificates as a sinking fund each year); and the tax shall be based on the latest
approved tax rolls of the Issuer, with full allowances being made for tax delinquencies and the cost of tax collection.
The rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable
property in the Issuer for each year while any of the Certificates or interest thereon are outstanding and unpaid, and
the tax shall be assessed and collected each year and deposited to the credit of the Interest and Sinking Fund. The ad
valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such
interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit
prescribed by law.
The Certificates additionally shall be payable from and secured by a subordinate lien on and pledge of
$1,000 of the revenues of the System, which amount is payable from the revenues remaining after payment of all
operation and maintenance expenses of the System, and all debt service, reserve, and other requirements in
connection with all of the Issuer's revenue bonds or other obligations (now or hereafter outstanding) which are
payable from all or any part of the "Net Revenues" of the System. The City shall deposit such pledged surplus
revenues to the credit of the Interest and Sinking Fund created pursuant to this section.
The City reserves the right to issue, for any lawful purpose at any time, in one or more installments, bonds,
certificates of obligation, and other obligations of any kind payable in whole or in part from, and secured by a
pledge of the Net Revenues of the System that may be prior and superior in right to, on a parity with, or junior and
subordinate to the limited pledge of the Net Revenues securing the Certificates.
(b) Construction Fund. A special "City of La Porte Certificates of Obligation Series 2000 Construction
Fund" (the "Construction Fund") is hereby created and shall be established and maintained by the City at an official
depository bank of the City. The Construction Fund is the fund into which the net proceeds of the Certificates shall
be deposited except that any premium received from the Initial Purchaser shall be deposited to the Interest and
Sinking Fund. Money in the Construction Fund shall be used to pay the costs necessary or appropriate to
accomplish the purposes for which the Certificates are issued.
SECTION 6. INVESTMENTS AND SECURITY. (a) Investment of Funds. The City may place money in
any fund created by this Ordinance in time or demand deposits or invest such money as authorized by law at the
time of such deposit; provided, however, that the City hereby covenants that the proceeds of the sale of the
Certificates will be used as soon as practicable for the purposes for which the Certificates are issued. Obligations
purchased as an investment of money in a fund shall be deemed to be a part of such fund.
(b) Amounts Received from Investments. Except as otherwise provided by law, amounts received from the
investment of the Construction Fund may be retained in such fund or deposited to the Interest and Sinking Fund as
determined by the City Council. Any amounts received from the investment of the Interest and Sinking Fund shall
be deposited in the Interest and Sinking Fund.
(c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest
extent required by law for the security of funds of the City.
(d) Remaining Funds. Any money remaining after the purposes for which the Certificates have been
accomplished shall be deposited in the Interest and Sinking Fund and the Construction Fund shall be closed.
SECTION 7. COVENANTS OF THE CITY. (a) General Covenants. The City covenants and represents
that:
(i) The City is a duly created city, operating and existing under the laws of the State of Texas, and is
duly authorized under the laws of the State of Texas to create and issue the Certificates, all action on its
part for the creation and issuance of the Certificates has been duly and effectively taken, and the
Certificates in the hands of the Owners thereof are and will be valid and enforceable obligations of the City
in accordance with their terms.
(ii) The Certificates shall be ratably secured in such manner that no one Certificate shall have
preference over other Certificates.
(b) Covenants Regarding Tax Matters. The City covenants to take any action to maintain, or refrain from
any action which would adversely affect, the treatment of the Certificates as obligations described in section 103 of
the Code, the interest on which is not includable in "gross income" for federal income tax purposes. In furtherance
thereof, the City specifically covenants as follows:
(i) To refrain from taking any action which would result in the Certificates being treated as "private
activity bonds" within the meaning of section 141(a) of the Code;
9
(ii) To take any action to assure that no more than 10% of the proceeds of the Certificates or the
projects financed therewith 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 or the projects financed therewith 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
Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more
than 10% of the debt service on the Certificates, in contravention of section 141(b)(2) of the Code;
(iii) To take any action to assure that in the event that the "private business use" described in paragraph
(ii) hereof exceeds 5% of the proceeds of the Certificates or the projects financed therewith, 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;
(iv) 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 Certificates 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;
(v) To refrain from taking any action which would result in the Certificates being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(vi) Except to the extent permitted by section 148 of the Code and the regulations and rulings
thereunder, to refrain from using any portion of the proceeds of the Certificates, directly or indirectly, to
acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as
defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the
Certificates.
(vii) To otherwise restrict the use of the proceeds of the Certificates or amounts treated as proceeds of
the Certificates, as may be necessary, so that the Certificates 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);
(viii) Except to the extent otherwise provided in section 148(f) of the Code and the regulations and
rulings thereunder, to pay to the United States of America at least once during each five year period
(beginning on the date of delivery of the Certificates) an amount that is at least equal to 90% of the "Excess
Earnings," within the meaning of section 148(f) of the Code, and to pay to the United States of America,
not later than 60 days after the Certificates 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;
(ix) To maintain such records as will enable the City to fulfill its responsibilities under this subsection
and sections 141 and 148 of the Code and to retain such records for at least six years following the final
payment of principal and interest on the Certificates; and
(x) To comply with the information reporting requirements of section 149(e) of the Code.
For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred proceeds
and, for purposes of paragraphs (ii) and (iii), proceeds of the refunded bonds.
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 Certificates, 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 adversely affect the exclusion from gross income of
interest on the Certificates: 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 Certificates, the City agrees to
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comply with the additional requirements to the extent necessary, in the opinion of nationally -recognized bond
counsel, to preserve the exclusion from gross income of interest on the Certificates under section 103 of the Code.
Proper officers of the City charged with the responsibility of issuing the Certificates are hereby authorized
and directed to execute any documents, certificates, or reports required by the Code and to make such elections, on
behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the
Certificates.
Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion
from gross income of interest on the Certificates under section 103 of the Code the covenants contained in this
subsection shall survive the later of the defeasance or discharge of the Certificates.
(c) Covenants Regarding Sale, Lease, or Disposition of Financed Property. The City covenants that the City
will regulate the use of the property financed, directly or indirectly, with the proceeds of the Certificates and will not
sell, lease, or otherwise dispose of such property unless (i) the City takes the remedial measures as may be required
by the Code and the regulations and rulings thereunder in order to preserve the exclusion from gross income of
interest on the Certificates under section 103 of the Code or (ii) the City seeks the advice of nationally -recognized
bond counsel with respect to such sale, lease, or other disposition.
SECTION 8. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The City hereby
designates the Certificates as "qualified tax-exempt obligations" as defined in section 265(b)(3) of the Code. In
furtherance of such designation, the City represents, covenants, and warrants the following: (a) during the calendar
year in which the Certificates are issued, the City (including any subordinate entities) has not designated nor will
designate obligations, which when aggregated with the Certificates, will result in more than $10,000,000 of
"qualified tax-exempt obligations" being issued; (b) the City reasonably anticipates that the amount of tax-exempt
obligations issued during 2000 by the City (including any subordinate entities) will not exceed $10,000,000; and (c)
the City will take such action which would assure, or to refrain from such action which would adversely affect, the
treatment of the Certificates as "qualified tax-exempt obligations."
SECTION 9. PAYING AGENT/REGISTRAR. The Paying Agent/Registrar is hereby appointed as paying
agent for the Certificates and the City is hereby authorized to enter into any type of agreement necessary for the
Paying Agent/Registrar to perform its duties hereunder. The principal of and premium, if any, on the Certificates
shall be payable, without exchange or collection charges, in any coin or currency of the United States of America,
which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their
presentation and surrender as they respectively become due and payable at maturity, at the designated payment
office of the Paying Agent/Registrar. The interest on each Certificate shall be payable by check payable on the
Interest Payment Date mailed by the Paying Agent/Registrar on or before each Interest Payment Date to the Owner
of record as of the Record Date, to the address of such Owner as shown on the Register, or in such other manner as
may be acceptable to the Owner and the Paying Agent/Registrar.
The City, the Paying Agent/Registrar, and any other person may treat the person in whose name any
Certificate is registered as the absolute Owner of such Certificate for the purpose of making and receiving payment
of the principal thereof and premium, if any, thereon, and for the further purpose of making and receiving payment
of the interest thereon and for all other purposes, whether or not such Certificate is overdue, and neither the City nor
the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the
person deemed to be the Owner of any Certificate in accordance with this Ordinance shall be valid and effectual and
shall discharge the liability of the City and the Paying Agent/Registrar upon such Certificate to the extent of the
sums paid.
So long as any Certificates remain outstanding, the Paying Agent/Registrar shall keep the Register at its
designated corporate trust office in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent/Registrar shall provide for the registration and transfer of Certificates in accordance with the terns of this
Ordinance.
The City may at any time and from time to time appoint another Paying Agent/Registrar in substitution for
the previous Paying Agent/Registrar; provided that any such Paying Agent/Registrar shall be a corporation
organized and doing business under the laws of the United States of America or any State, authorized under such
laws to exercise trust powers, subject to supervision or examination by federal or state authority, and a transfer agent
registered with the Securities and Exchange Commission. In such event, the City shall give notice by certified mail
to each Owner at least 30 days prior to the effective date of such substitution. Any bank or trust company with or
into which any Paying Agent/Registrar may be merged or consolidated, or to which the assets and business of
Paying Agent/Registrar may be sold or otherwise transferred, shall be deemed the successor of such Paying
Agent/Registrar for the purposes of this Ordinance.
The Mayor and City Secretary are hereby authorized to enter into, execute, and deliver the Paying
Agent/Re„istrar Agreement with the initial Paying AgenttRegistrar in substantially the form presented to the City on
this date.
SECTION 10. INITIAL CERTIFICATE, EXCI4ANGE OR TRANSFER OF CERTIFICATES. Initially,
one Certificate (the "Initial Certificate") numbered I-1 as described in Section 2, and representing the entire
principal amount of the Certificates shall be registered in the name of the Initial Purchaser and shall be executed and
submitted to the Attorney General of Texas for approval, and thereupon certified by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent, by manual signature, and the Initial Certificate shall be
effective and valid without the Authentication Certificate being signed by the Paying Agent/Registrar. At any time
thereafter, the Owner may deliver the Initial Certificate to the Paying Agent/Registrar for exchange, accompanied by
instructions from the Owner or designee designating the persons, maturities, and principal amounts to and in which
the Initial Certificates are to be transferred and the addresses of such persons, and the Paying Agent/Registrar shall
thereupon, within not more than three days, register and deliver such Certificates upon authorization of the City as
provided in such instructions.
Each Certificate shall be transferable only upon the presentation and surrender thereof at the designated
payment office of the Paying Agent/Registrar, duly endorsed for transfer, or accompanied by an assignment duly
executed by the Owner or his authorized representative in form satisfactory to the Paying Agent/Registrar. Upon
presentation of any Certificate for transfer, the Paying Agent/Registrar shall authenticate and deliver in exchange
therefor, to the extent possible and under reasonable circumstances within three business days after such
presentation, a new Certificate or Certificates, registered in the name of the transferee or transferees, in authorized
denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the
Certificate or Certificates so presented.
All Certificates shall be exchangeable upon presentation and surrender thereof at the designated payment
office of the Paying Agent/Registrar for a Certificate or Certificates of the same maturity and interest rate and in any
authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Certificate or
Certificates presented for exchange. The Paying Agent/Registrar shall be and is hereby authorized to authenticate
and deliver exchange Certificates in accordance with this Ordinance and each Certificate so delivered shall be
entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of
which such Certificate is delivered.
The City or the Paying Agent/Registrar may require the Owner of any Certificate to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such
Certificate. Any fee or charge of the Paying Agent/Registrar for such transfer or exchange shall be paid by the City.
SECTION 11. SALE AND DELIVERY OF CERTIFICATES. (a) Sale. The sale of the Certificates to the
Initial Purchaser pursuant to the taking of competitive bids at a price of par, plus accrued interest to the date of
delivery (and a premium of $___J is hereby confirmed. It is hereby officially found, determined, and declared
that the Initial Purchaser submitted the bid which results in the lowest true interest cost to the City and delivery of
the Certifi-.ates to the Initial Purchaser shall be made as soon as practicable after the adoption of this Ordinance,
upon payment therefor, in accordance with the terms of sale. The Initial Certificate shall be registered in the name
of the Initial Purchaser. The officers of the City are hereby authorized and directed to execute and deliver such
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certificates, instructions, or other instruments as are required or necessary to accomplish the purposes of this
Ordinance.
(b) Approval of Official Statement. The City hereby approves the form and content of the Official
Statement relating to the Certificates and any addenda, supplement, or amendment thereto, and approves the
distribution of such Official Statement in the reoffering of the Certificates by the Initial Purchaser 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. The form and content of and the distribution and use of the
Official Statement dated March 13, 2000, prior to the date hereof is hereby ratified and confirmed. The Council
finds and determines that the Preliminary Official Statement is "deemed final" as that term is defined in 17 C.F.R.
Section 24-0.15c2-12.
(c:) Legal Opinion. The Initial Purchaser's obligation to accept delivery of the Certificate is subject to its
being furnished an opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P., Attorneys, such opinion to be dated and
delivered as of the date of delivery and payment for the Certificates.
(d) Registration and Delivery. Upon the registration of the Initial Certificate, the Comptroller of Public
Accounts of the State of Texas is authorized and instruct to deliver the Initial Certificate pursuant to the instruction
of the Mayor for delivery to the Initial Purchaser.
SECTION 12. CITY OFFICERS' DUTIES. (a) Issuance of Certificates. The Mayor shall submit the
Initial Certificate, the record of the proceedings authorizing the issuance of the Certificates, and any and all other
necessary orders, certificates, and records to the Attorney General of the State of Texas for his investigation. After
obtaining the approval of the Attorney General, the Mayor shall cause the Initial Certificate to be registered by the
Comptroller of Public Accounts of the State of Texas. The officers or acting officers of the City are authorized to
execute and deliver on behalf of the City such certificates and instruments as may be necessary or appropriate prior
to delivery of and payment for the Certificates to and by the Initial Purchaser.
(b) Execution of Ordinance. The Mayor and the City Secretary are authorized to execute the Certificate to
which this Ordinance is attached on behalf of the City and to do any and all things proper and necessary to carry out
the intent thereof.
SECTION 13. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the
Certificates provided by the laws of the State of Texas, the City covenants and agrees that in the event the City
defaults in the payment of the principal of or interest on any of the Certificates 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
performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the Owner of any of the
Certificates shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring
the City and other officers of the City to observe and perform 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 Certificates and
shall be cumulative of all other existing remedies.
SECTION 14. LOST STOLEN DESTROYED DAMAGED OR MUTILATED CERTIFICATES.•
DESTRUCTION OF PAID CERTIFICATES. (a) Replacement Certificates. In the event any outstanding Certificate
shall become lost, stolen, destroyed, damaged, or mutilated, at the request of the Owner thereof, the City shall cause
to be executed, registered by the Paying Agent/Registrar, and delivered a substitute Certificate of like date and tenor,
in exchange and substitution for and upon cancellation of such mutilated or damaged Certificate, or in lieu of and
substitution for such Certificate, lost, stolen, or destroyed, subject to the provisions of subsections (b), (c), (d) and
(e) of this Section.
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(b) Application and Indemnity. Application for exchange and substitution of lost, stolen, destroyed,
damaged, or mutilated Certificates shall be made to the City. In every case the applicant for a substitute Certificate
shall furnish to the City such deposit for fees and costs as may be required by the City to save it and the Paying
Agent/Registrar harmless from liability. In every case of loss, theft, or destruction of a Certificate, the applicant
shall also furnish to the City indemnity to the City's satisfaction and shall file with the City evidence to the City's
satisfaction of the loss, theft, or destruction and of the ownership of such Certificate. In every case of damage or
mutilation of a Certificate, the applicant shall surrender the Certificate so damaged or mutilated to the Paying
Agent/Registrar.
(c) Matured Certificates. Notwithstanding the foregoing provisions of this Section, in the event any such
Certificate shall have matured, and no default has occurred which is then continuing in payment of the principal of
or interest on the Certificates, the City may authorize the payment of the same (without surrender thereof except in
the case of a damaged or mutilated Certificate) instead of issuing a substitute Certificate, if any, provided security or
indemnity is furnished as above provided in this Section.
(d) Expenses of Issuance. Upon the issuance of any substitute Certificate, the City may charge the owner
of such Certificate with all fees and costs incurred in connection therewith. Every substitute Certificate issued
pursuant to the provisions of this Section by virtue of the fact that any Certificate is lost, stolen, destroyed, damaged,
or mutilated shall constitute a contractual obligation of the City, whether or not the lost, stolen, destroyed, damaged,
or mutilated Certificate shall be found at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Ordinance equally and proportionately with any and all other Certificates duly issued under this
Ordinance.
(e) Authority to Issue Substitute Certificates. This Ordinance shall constitute sufficient authority for the
issuance of any such substitute Certificate without necessity of further action by the City or any other body or
person, anti the issuance of such substitute Certificates is hereby authorized, notwithstanding any other provisions of
this Ordinance.
(f) Destruction of Paid Certificates. At any time subsequent to the payment thereof, the Paying
Agent/Registrar is authorized to cancel and destroy any Certificates duly paid, and promptly after any such
destruction, the Paying Agent/Registrar shall furnish to the City a certificate evidencing such destruction.
SECTION 15. REDEMPTION. The Certificates are subject to optional redemption as described in the
FORM OF CERTIFICATES in Section 3 of this Ordinance.
SECTION 16. DEFEASANCE. Any Certificate shall be deemed to be paid and shall no longer be
considered to be a "Certificate" within the meaning of this Ordinance when payment of the principal of and the
premium, if any, on such Certificate, plus interest thereon to the due date thereof (whether such due date be by
reason of maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the terms
thereof or (ii) shall have been provided for by depositing with an escrow agent (the "Escrow Agent"), for such
payment, (a) money sufficient to make such payment or (b) Governmental Obligations certified by an independent
public accounting firm of national reputation to be of such maturities and interest payment dates and to bear such
interest as will, without further investment or reinvestment of either the principal amount thereof or the interest
earning therefrom (likewise to be held in trust and committed, except as hereinafter provided), be sufficient to make
such payment or (c) a combination of money and Governmental Obligations together so certified to be sufficient;
provided, however, that all the expenses pertaining to the Certificates with respect to which such deposit is made
shall have been paid or the payment thereof provided for to the satisfaction of the Escrow Agent. Notwithstanding
anything herein to the contrary, no such deposit shall have the effect described in this Section if made during the
subsistence of a default in the payment of any Certificate unless made with respect to all of the Certificates then
outstanding. Any money and Governmental Obligations deposited for such purpose shall be held by the Escrow
Agent in a segregated account in trust or escrow for the Owners with respect to which such deposit is made and,
together with any investment income therefrom, shall be disbursed solely to pay the principal of and interest on such
Certificates when due. No money or Governmental Obligations so deposited shall be invested or reinvested unless
in Governmental Obligations and unless such money and Governmental Obligations not invested and such new
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investments are together certified by an independent public accounting firm of national reputation to be of such
amounts, maturities, and interest payment dates and to bear such interest as will, without further investment or
reinvestment of either the principal amount thereof or the interest earnings therefrom, be sufficient to make such
payment. At such times as a Certificate shall be deemed to be paid hereunder, as aforesaid, they shall no longer be
entitled to the benefits of this Ordinance, except for the purposes of any such payment from such money or
Governmental Obligations.
SECTION 17. ORDINANCE A CONTRACT; AMENDMENTS. This Ordinance shall constitute a
contract with the Owners, from time to time, of the Certificates, binding on the City and its successors and assigns,
and shall riot be amended or repealed by the City as long as any Certificate remains outstanding except as permitted
in this Section. The City 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 adoption of any Parity Bonds
Ordinances, (iii) for the purpose of curing any ambiguity, inconsistency, or formal defect or omission herein, or (iv)
in connection with any other change which is not to the prejudice of the Owners. The City may, with the written
consent of the Owners of a majority in aggregate principal amount of Certificates then outstanding affected thereby,
amend, change, modify, or rescind any provisions of this Ordinance; provided, however, 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 Certificates, reduce the principal amount thereof to the rate of
interest thereon, or in any other way modify the terms of payment of the principal of or interest on bonds or
certificates on a parity with the lien of the Certificates, (ii) give any preference of any Certificate over any other
Certificate, (iii) extend any waiver of default to subsequent defaults, or (iv) reduce the aggregate principal amount of
Certificates required for consent to any such amendment, change, modification, or rescission. When the City desires
to make any amendment or addition to or rescission of this Ordinance requiring consent of the Owners, the City
shall cause notice of the amendment, addition, or rescission to be given as described above for a notice of
redemption. When at any time within one year after the date of the giving of such notice, the City shall receive an
instrument or instruments in writing executed by the appropriate number of Owners of the Certificates then
outstanding affected by any such amendment, addition, or rescission requiring the consent of Owners, 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 form of the copy thereof referred
to in such notice, thereupon, but not otherwise, the City may adopt such amendment, addition, or rescission in
substantially such form, 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 18. CONTINUING DISCLOSURE. (a) Annual Reports. The City shall provide annually to
each nationally -recognized municipal securities information repository ("NRMSIR") and to any state information
depository ("SID"), within six months after the end of each fiscal year ending in or after 2000, financial information
and operating data with respect to the City of the general type included in the final Official Statement authorized by
Section 15 of this Ordinance, being the information described in Exhibit B hereto. Any financial statements so to be
provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2)
audited, if the City commissions an audit of such statements and the audit is completed within the period during
which they must be provided. If the audit of such financial statements is not complete within such period, the City
shall provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID when and if
the audit report on such statements becomes available.
If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date
of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial
information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may be set forth in full
in one or more documents or may be included by specific reference to any document (including an official statement
or other offering document) if it is available from the Municipal Securities Rulemaking Board (the "MSRB") that
theretofore has been provided to each NRMSIR and any SID or filed with the Securities and Exchange Commission
(the "SEC").
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(b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a
timely manner, of any of the following events with respect to the Certificates, if such event is material within the
meaning of the federal securities laws: (i) principal and interest payment delinquencies; (ii) non-payment related
defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on
credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure
to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the Certificates; (vii) modifications
to rights of holders of the Certificates; (viii) calls; (ix) defeasances; (x) release, substitution, or sale of property
securing repayment of the Certificates; and (xi) rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by
the City to provide financial information or operating data in accordance with this Section by the time required by
this Section.
(c) Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the
covenants, specified in this Section for so long as, but only for so long as, the City remains an "obligated person"
with respect to the Certificates within the meaning of SEC Rule 15c2-12 (the "Rule"), except that the City in any
event will give notice of any deposit made in accordance with Section 17 above that causes the Certificates no
longer to be outstanding and any call of Certificates made in connection therewith.
The provisions of this Section are for the sole benefit of the Owners and beneficial owners of the
Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right,
remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section
and does not hereby undertake to provide any other information that may be relevant or material to a complete
presentation of the City's financial results, condition, or prospects or hereby undertake to update any information
provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make
any representation or warranty concerning such information or its usefulness to a decision to invest in or sell
Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR BENEFICIAL
OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY :BREACH BY THE CITY, WHETHER NEGLIGENT OR
WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC
PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall comprise a breach
of or default under this Ordinance for purposes of any other provisions of this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City
under federal and state securities laws.
The provisions of this Section may be amended, supplemented, or repealed by the City from time to time
under the following circumstances, but not otherwise: (1) to adapt to changed circumstances that arise from a change
in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if
the provisions of this Section, as so supplemented or amended, would have permitted an underwriter to purchase or
sell Certificates in the present offering in compliance with the Rule and either the Owners of a majority in aggregate
principal amount of the outstanding Certificates consent: to such amendment, supplement, or repeal, or any State
agency or official determines that such amendment, supplement, or repeal will not materially impair the interests of
the beneficial owners of the Certificates, (2) upon repeal of the applicable provisions of the Rule, or any judgment
by a court of final jurisdiction that such provisions are invalid, or (3) in any other circumstance or manner permitted
by the Rule.
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SECTION 19. BOOK -ENTRY ONLY SYSTEM. It is intended that the Certificates initially be registered
so as to participate in a securities depository system (the "DTC System") with The Depository Trust Company, New
York, New York, or any successor entity thereto ("DTC"), as set forth herein. The definitive Certificates shall be
issued in the form of a separate single definitive Certificate for each maturity. Upon issuance, the ownership of each
such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the outstanding
Certificates shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying
Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with
DTC as shall be necessary to effectuate the DTC System, including a "Letter of Representation" (the
"Representation Letter").
With respect to the Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the
Paying Agent/Registrar shall have no responsibility or obligation to any broker -dealer, bank, or other financial
institution for which DTC holds the Certificates from time to time as securities depository (a "Depository
Participant") or to any person on behalf of whom such a Depository Participant holds an interest in the Certificates
(an "Indirect Participant"). Without limiting the immediately preceding sentence, the City and the Paying
Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC,
Cede & Co., or any Depository Participant with respect to any ownership interest in the Certificates, or (ii) the
delivery to any Depository Participant or any Indirect Participant or any other Person, other than a registered owner
of a Certificate, of any amount with respect to principal of, premium, if any, or interest on the Certificates. While in
the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a
Certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest
pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that
DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this
Ordinance with respect to interest checks or drafts being mailed to the holder, the word "Cede & Co." in this
Ordinance shall refer to such new nominee of DTC.
In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described
herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC
or the City determines that it is in the best interest of the; beneficial owners of the Certificates that they be able to
obtain certificated Certificates, the City shall notify the Paying Agent/Registrar, DTC, and Depository Participants
of the availability within a reasonable period of time through DTC of certificated certificates, and the Certificates
shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the
City may determine that the Certificates shall be registered in the name of and deposited with a successor depository
operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee,
and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the
Certificates may be registered in whatever names the registered owners of Certificates transferring or exchanging the
Certificates shall designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is
registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if
any, and interest on such Certificate and all notices with respect to such Certificate shall be made and given,
respectively, in the manner provided in the Representation Letter.
D
SECTION 20. OTHER DOCUMENTS. The Mayor and the City Secretary are hereby authorized to
execute and attest to such other documents, certificates, letters of instruction, tax information forms, and other
agreements of any kind which, in the opinion of Bond Counsel, are necessary or advisable in order to issue the
Certificates and verify that the interest on the Certificates will be exempt from gross income of the holders thereof
under current federal tax law.
SECTION 21. FURTHER PROCEDURES. The Mayor and the City Secretary, and all other officers,
employees, attorneys, and agents of the City and each of them, shall be and they are hereby expressly authorized,
empowered, and directed from time to time and at any time to do and perform all such acts and things and to
execute, acknowledge, and deliver in the name and under the 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 terms and provisions of
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this Ordinance, the Certificates, and the Official Statement. In case any officer whose signature shall appear on any
Certificate shall cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be
valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Prior to
the initial delivery of the Certificates, the Mayor and the City Secretary and Bond Counsel to the City are hereby
authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the
instruments authorized by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or
more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from
any of the national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas Attorney
General's office.
SECTION 22. MISCELLANEOUS PROVISIONS. (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 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 City 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.
(e) Open Meeting. The City officially finds and determines the meeting at which this Ordinance is adopted
was open to the public and that public notice of the time, place, and purpose of such meeting was given, all as
required by Chapter 551, Texas Government Code.
is
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(f) 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 March 27, 2000.
ATTEST:
f�Ij i A J/ / //J/ -
Ci S cretary, City of La Porte, Texas
19
Ma Qr, City of La Porte, Texas
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT entered into as of March 15, 2000 (the
"Agreement"), by and between the CITY OF LA PORTEi, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States
of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas
Certificates of Obligation, Series 2000" (the "Securities"), such Securities to be issued in fully registered form only
as to the payment of principal and interest thereon;
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the
"Ordinance" (hereinafter defined);
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the
payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration,
transfer, and exchange thereof by the registered owners thereof,
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full
power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to
the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer
the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered
owners thereof, all in accordance with this Agreement and the Ordinance.
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of
said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the
Securities.
Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in Schedule A attached hereto for the first year
of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days
prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the :Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
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ARTICLE II. DEFINITIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:
"Bank Office" means the designated principal corporate trust office of the Bank as indicated on the
signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Bank Principal Payment Office" means Dallas, Texas.
":Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Molder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer
by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the
Issuer, any one or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are
issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political subdivision of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or a
portion of -the same obligation as that evidenced by such particular Security (and, for the purposes of this definition,
any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered
in lieu thereof pursuant to Section 4.06 hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice -Chairman of the
Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the
President, .any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank
customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be
due and payable.
Section 2.02. Other Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the
meanings assigned to them in the recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this
Agreement.
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ARTICLE III. PAYING AGENT
Section 3.01. Duties of Paving Assent. As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Principal Payment Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail,
first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on
the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to
the Bank, requested in writing by the Holder at the Holder's risk and expense.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on
the Securities on the dates specified in the Ordinance.
ARTICLE IV. REGISTRAR
Section 4.01. Security Register - Transfers and Exchanges. The Bank agrees to keep and maintain for
and on behalf of the Issuer at the Bank Principal Payment Office books and records (herein sometimes referred to as
the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer,
exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the
Holders and containing such other information as may be reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register. A copy of the Security Register will be maintained at the offices
of the Bank's agent in Houston, Texas.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a
member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re -registration, transfer,
or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities
delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the
Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange
duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate
transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in
safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political
subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities.
Section 4.03. FoEm of Security Register. The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has currently available and currently utilizes at the time.
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The Security Register may be maintained in written form or in any other form capable of being converted
into written form within a reasonable time.
Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer
may also inspect the information contained in the Security Register at any time the Bank is customarily open for
business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the
information into written form.
Unless required by law, the Bank will not release or disclose the contents of the Security Register to any
person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt
of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure
of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order
or such release or disclosure of the contents of the Security Register.
Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered
to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank.
The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and
delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such
destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and
regulations of the Securities and Exchange Commission.
Section 4.06. Mutilated, Destroyed, Lost, or Stolen Securities. The Issuer hereby instructs the Bank,
subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute
and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not
contempormeously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in
substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of
evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer
and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation,
execution, and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or
destroyed, lost, or stolen.
Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section
3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and
Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06.
Section 4.08. Redemption of Securities. Securities which are redeemable before their stated maturity shall
be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV.
Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the
expense of the Issuer not less than 30 or more than 45 days prior to the date of redemption, to each Registered
Owner of Securities to be redeemed and otherwise required by the Ordinance.
All notices of redemption shall include the CUSIP number and statement as to:
(a) the date of redemption;
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(b) the price of the Securities expressed as a percentage of par amount of the Securities;
(c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be
redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be
redeemed;
(d) that on the date of redemption the principal of each of the Securities to be redeemed will become due
and payable and that the interest thereon shall cease to accrue from and after said date; and
(e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of
redemption at the designated principal payment office of the Bank, and the address of such office.
The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and
information services based upon the then current guidelines of the Securities and Exchange Commission relating to
redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer,
shall also provide notice to any other addressees as the Issuer shall designate in writing.
ARTICLE V. THE BANK
Section 5.01. Ditties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to
use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise
incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer
or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall
not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or
document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel
shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it
hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or
by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the
Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness.
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The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
Section 5.04. May Hold Securities. The Bank, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.05. Money Held by Bank. (a) Money held by the Bank hereunder shall be held for the benefit
of the Registered Owners of the Securities.
(b) The Bank shall be under no obligation to pay interest on any money received by it hereunder.
(c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the
payment of the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for
three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank
in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such
provisions are applicable to such amounts.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or
controversy over its person as well as funds on deposit, in either the District Court of Harris County, Texas , or the
United States Federal District Court for the Southern District of Texas, waive personal service of any process, and
agree that service of process by certified or registered mail, return receipt requested, to the address set forth in
Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the
right to file a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the
rights of any persons claiming any interest herein.
Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank
for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the exercise or performance of any of its powers or duties
under this Agreement.
Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any
adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State
District Court located in the State and County where either the Bank Office or the administrative offices of the
Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the
address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Company Services. It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent
depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will
comply with the "Operational Arrangements," effective August 1, 1987, which establishes requirements for
securities to be eligible for such type depository trust services, including, but not limited to, requirements for the
timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE VI. MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by
both of the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.
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Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other
document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown on the signature page of this Agreement.
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.
Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.08. Entire Agreement. This Agreement and the Ordinance constitute the entire agreement
between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between
this Agreement and the Ordinance, the Ordinance shall govern.
Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal
of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days
written notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b)
notice has been given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement
shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security
Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the
successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas.
(Remainder of this page intentionally left blank.)
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
Attest:
By By
Title Title
Address: 600 Travis, Suite 1150
(BANK SEAL) Houston, Texas 77002
Attest: CITY OF LA PORTE, TEXAS
By
City Secretary
(ISSUER SEAL)
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By
Mayor
Address 604 West Fairmont
LaPorte, Texas 77571
0 0
SCHEDULE A
Paying Agent/Registrar Fee Schedule
(To be furnished by the Bank)
EXHIBIT B
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 18 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually in accordance
with such Section are as specified and included in the Appendix or under the headings of the Official Statement
referred to below:
1. The audited financial statements of the City for the most recently concluded fiscal year.
2. The information included in the Official Statement under the headings "FINANCIAL
INFORMATION', "TAX COLLECTION PERIOD", "TAX COLLECTION RECORD", "TAX RATE
LIMITATIONS", "TAX RATE DISTRIBUTION', "TAX ADEQUACY", "CITY SALES TAX", "GENERAL
OBLIGATION BONDS AUTHORIZED BUT UNISSUED", "RATINGS ON OUTSTANDING GENERAL
OBLIGATIONS BONDS", "FLOATING DEBT OUTSTANDING", "PRINCIPAL TAXPAYERS",
"OVERLAPPING TAX RATE STATEMENT", "ESTIMATED DIRECT & OVERLAPPING DEBT
STATEMENT", "HISTORY OF GENERAL FUND REVENUE AND EXPENDITURES", and "REVENUE
BONDS AUTHORIZED BUT UNISSUED".
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described in the notes to
the financial statements referred to in paragraph 1 above, as such principles may be changed from time to time to
comply with state law or regulation.
CERTIFICATE FOR ORDINANCE
We, the undersigned Mayor and City Secretary of the City of La Porte, Texas (the "City"), hereby
certify as follows:
1. The City Council of the City (the "Council") convened in regular session, open to the public,
on March 27, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll was called
of the members, to wit: Norman Malone, Mayor, and the following City Councilmembers: Chuck
Engelken, Alton Porter, Guy Sutherland, Edward Clarke, Howard Ebow, Charlie Young, Deotis Gay, and
Peter Griffiths. All members of the Council were present, except ,
constituting a quorum. Whereupon among other business, the following was transacted at the Meeting: a
written ordinance entitled
ORDINANCE AUTHORIZING THE ISSUANCE OF $3,000,000 CITY OF LA PORTE,
TEXAS CERTIFICATES OF OBLIGATION, SERIES 2000 AND OTHER MATTERS
RELATED THERETO
(the "Qrdinance") was duly introduced for the consideration of the Council and read in full. It was then
duly moved and seconded that the Ordinance be finally passed and adopted; and after due discussion,
such motion, carrying with it the adoption of the Ordinance prevailed and carried by the following vote:
YES:_q_ NOES: V ABSTENTIONS: V .
2. A true, full, and correct copy of the Ordinance adopted at the Meeting is attached to and
follows this Certificate; the Ordinance has been duly recorded in the Council's minutes of the Meeting;
the above and foregoing paragraph is a true, full, and correct excerpt from the Council's minutes of the
Meeting pertaining to the adoption of the Ordinance; the persons named in the above and foregoing
paragraph are duly chosen, qualified, and acting officers and members of the Council as indicated therein;
each of the officers and members of the Council was duly and sufficiently notified officially and
personally, in advance, of the time, place, and purpose of the Meeting, and that the Ordinance would be
introduced and considered for adoption at the Meeting and each of such officers and members consented,
in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and
public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551,
Texas Government Code, as amended.
3. Martha Gillett is the duly appointed and acting City Secretary of the City.
SIGNED AND.SEALED THIS March 27, 2000.
04L X= City ecretary Mhyor
City of LaPorte, Texas City of LaPorte, Texas
(CITY SEAL)
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PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT entered into as of March 15, 2000 (the
"Agreement"), by and between the CITY OF LA PORTE, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States
of America (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas
Certificates of Obligation, Series 2000" (the "Securities"), such Securities to be issued in fully registered form only
as to the payment of principal and interest thereon;
WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the
"Ordinance" (hereinafter defined);
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the
payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration,
transfer, and exchange thereof by the registered owners thereof;
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full
power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to
the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer
the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered
owners thereof, all in accordance with this Agreement and the Ordinance.
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of
said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance.
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the
Securities.
Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the
Issuer hereby agrees to pay the Bank the fees and amounts set forth in Schedule A attached hereto for the first year
of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for
services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days
prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
ARTICLE II. DEFIMTIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:
"Bank Office" means the designated principal corporate trust office of the Bank as indicated on the
signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Bank Principal Payment Office" means Dallas, Texas.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer
by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the
Issuer, any one or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are
issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political subdivision of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition,
any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered
in lieu thereof pursuant to Section 4.06 hereof and the Ordinance).
"Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Ordinance.
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice -Chairman of the
Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank
customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be
due and payable.
Section 2.02. Other Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the
meanings assigned to them in the recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this
Agreement.
2
ARTICLE III. PAYING AGENT
Section 3.01. Duties of Paying Agent. As Paying Agent, the Bank shall, provided adequate collected
funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon
surrender of the Security to the Bank at the Bank Principal Payment Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail,
first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on
the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to
the Bank, requested in writing by the Holder at the Holder's risk and expense.
Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on
the Securities on the dates specified in the Ordinance.
ARTICLE IV. REGISTRAR
Section 4.01. Security Register - Transfers and Exchanges. The Bank agrees to keep and maintain for
and on behalf of the Issuer at the Bank Principal Payment Office books and records (herein sometimes referred to as
the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer,
exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the
Holders and containing such other information as may be reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of
Securities shall be noted in the Security Register. A copy of the Security Register will be maintained at the offices
of the Bank's agent in Houston, Texas.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a
member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the
Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re -registration, transfer,
or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange
or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities
delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the
Securities to be cancelled. in an exchange or transfer and the written instrument of transfer or request for exchange
duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate
transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in
safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in
safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political
subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities.
Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register
relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general
practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has currently available and currently utilizes at the time.
The Security Register may be maintained in written form or in any other form capable of being converted
into written form within a reasonable time.
Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the
Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer
may also inspect the information contained in the Security Register at any time the Bank is customarily open for
business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the
information into written form.
Unless required by law, the Bank will not release or disclose the contents of the Security Register to any
person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt
of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure
of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order
or such release or disclosure of the contents of the Security Register.
Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered
to the Issuer, shall be delivered to the Bank and, if not already cancelled, shall be promptly cancelled by the Bank.
The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and
delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such
destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and
regulations of the Securities and Exchange Commission.
Section 4.06. Mutilated, Destroyed. Lost, or Stolen Securities. The Issuer hereby instructs the Bank,
subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance.
In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute
and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in
substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of
evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the
ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer
and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation,
execution, and delivery of a replacement Security shall be home by the Holder of the Security mutilated, or
destroyed, lost, or stolen.
Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section
3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and
Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to
Section 4.06.
Section 4.08. Redemption of Securities. Securities which are redeemable before their stated maturity shall
be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV.
Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the
expense of the Issuer not less than 30 or more than 45 days prior to the date of redemption, to each Registered
Owner of Securities to be redeemed and otherwise required by the Ordinance.
All notices of redemption shall include the CUSIP number and statement as to:
(a) the date of redemption;
•
•
(b) the price of the Securities expressed as a percentage of par amount of the Securities;
(c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be
redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be
redeemed;
(d) that on the date of redemption the principal of each of the Securities to be redeemed will become due
and payable and that the interest thereon shall cease to accrue from and after said date; and
(e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of
redemption at the designated principal payment office of the Bank, and the address of such office.
The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and
information services based upon the then current guidelines of the Securities and Exchange Commission relating to
redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer,
shall also provide notice to any other addressees as the Issuer shall designate in writing.
ARTICLE V. THE BANK
Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to
use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise
incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or
other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any
Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer
or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall
not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or
document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel
shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it
hereunder in good faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or
by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the
Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
Section 5.04. May Hold Securities. The Bank, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.05. Money Held by Bank. (a) Money held by the Bank hereunder shall be held for the benefit
of the Registered Owners of the Securities.
(b) The Bank shall be under no obligation to pay interest on any money received by it hereunder.
(c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the
payment of the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for
three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank
in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such
provisions are applicable to such amounts.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or
controversy over its person as well as funds on deposit, in either the District Court of Harris County, Texas , or the
United States Federal District Court for the Southern District of Texas, waive personal service of any process, and
agree that service of process by certified or registered mail, return receipt requested, to the address set forth in
Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the
right to file a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the
rights of any persons claiming any interest herein.
Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank
for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part,
arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and
expense against any claim or liability in connection with the exercise or performance of any of its powers or duties
under this Agreement.
Section 5.07. Interaleader. The Issuer and the Bank agree that the Bank may seek adjudication of any
adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State
District Court located in the State and County where either the Bank Office or the administrative offices of the
Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the
address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank
further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Companv Services. It is hereby represented and warranted that, in the
event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent
depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will
comply with the "Operational Arrangements," effective August 1, 1987, which establishes requirements for
securities to be eligible for such type depository trust services, including, but not limited to, requirements for the
timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE VI. MISCELLANEOUS PROVISIONS
Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by
both of the parties hereto.
Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other.
Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other
document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown on the signature page of this Agreement.
6
0
Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and
shall not affect the construction hereof.
Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its
successors and assigns, whether so expressed or not.
Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.08. Entire Agreement. This Agreement and the Ordinance constitute the entire agreement
between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between
this Agreement and the Ordinance, the Ordinance shall govern.
Section 6.09. Counteraarts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal
of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days
written notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b)
notice has been given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement
shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security
Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the
successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas.
(Remainder of this page intentionally left blank.)
7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.
Attest:
By
Title
(BANK SEAL)
Attest:
Qjj t &-&AVIW
By
ity Secretary
(ISSUER SEAL)
CHASE BANK OF TEXAS,
NATIONAL ASSOCIATION
By
Title
Address: 600 Travis, Suite 1150
Houston, Texas 77002
CITY OF LA PORTE, TEXAS
By 2&
.4�� Z&oy�
Mayor
Address 604 West Fairmont
LaPorte, Texas 77571
EXECUTION PAGE OF PAYING AGENT/REGISTRAR AGREEMENT
GENERAL CERTIFICATE
We, the undersigned Mayor and City Secretary, respectively, of the City of La Porte, Texas (the "City"),
hereby certify as follows:
1. This certificate is executed for and on behalf of the City for the benefit of the Attorney General of the
State of Texas and the owners of the CITY OF LA PORTE, TEXAS CERTIFICATES OF OBLIGATION, SERIES
2000, dated March 15, 2000, in the principal amount of $3,000,000 (the "Certificates"), authorized by an ordinance
passed by the City Council of the City on March 27, 2000 (the "Ordinance").
2. The City is a duly incorporated home rule city, having a population of more than 5,000, operating and
existing under the Constitution and laws of the State of Texas and the duly adopted Home Rule Charter of the City,
which Charter has not been changed or amended since the issuance of the most recent obligations by the City
entitled "City of LaPorte, Texas General Obligation Bonds, Series 1998".
3. No litigation of any nature has ever been filed pertaining to, affecting, questioning, or contesting: (a) the
Ordinance; (b) the issuance, execution, delivery, payment, security, or validity of the Certificates; (c) the authority
of the governing body and the officers of the City to issue, execute, and deliver the Certificates; (d) the provisions
made for the security for the payment of the Certificates; or (e) the validity of the corporate existence or the current
tax rolls of the City; and no litigation is pending pertaining to, affecting, or contesting the boundaries of the City.
4. The currently effective ad valorem tax appraisal rolls of the City are those for the year 1999, being the
most recently approved tax rolls of the City; the City Council of the City has caused the taxable property in the City
to be assessed as required by law; and the net valuation of taxable property in the City according to the aforesaid tax
rolls for said year, as delivered to the City Secretary of the City, and finally approved and recorded by the City
Council of the City, is $1,465,045,690.
5. A true, correct, and complete statement of all outstanding indebtedness of the City payable from ad
valorem taxes is attached hereto as Exhibit A. A true and correct schedule showing the annual requirements of all of
the outstanding indebtedness of the City payable from taxes, together with the Certificates, is attached hereto as
Exhibit B.
6. A true and correct schedule of the revenues of the City's parks and recreation system (the "System") for
the past four fiscal years ending September 30 is as follows:
1999 1998 1997 1996
$393,029 $327,740 $436,152 $411,376
The revenues of the System that have been pledged or encumbered to the payment of the Certificates are limited to
$1,000.
7. A true and correct schedule of the current rates and charges for the System is attached hereto as Exhibit
C.
S. The City is not in default as to any covenant, condition, or obligation contained in any ordinance
authorizing obligations payable in whole or in part from revenues of the System, and each of the special funds and
accounts, if any, established by such ordinances contain the amounts now required to be on deposit in such fund or
account.
9. There has been appropriated from funds lawfully made available to the City sufficient money to make
the interest payment on the Certificates for September 15, 2000, to wit: $
10. No proceeding or authority for the issuance, execution, or delivery of the Certificates, including the
Ordinance, has been repealed, rescinded, amended, or revoked.
11. No petition signed by at' '. the City has been filed with the Mayor, the
City Secretary, any member of the Ci officer of the City protesting the issuance
of the Certificates or requesting a refe heir issuance.
SIGNED AND SEALED thi:
A, &
L•
lCty ecretary
(SEAL)
2
CG, �
Mayor
0 •
SIGNATURE IDENTIFICATION AND NO -LITIGATION CERTIFICATE
We, the undersigned Mayor and City Secretary, respectively, of the City of La Porte, Texas (the "Issuer"),
hereby certify as follows:
(a) This certificate is executed and delivered with reference to "City of La Porte, Texas Certificates of
Obligation, Series 2000 dated March 15, 2000, in the principal amount of $3,000,000 authorized by an ordinance
passed by the City Council of the Issuer on March 27, 2000 (the "Certificates").
(b) Each of us signed the Certificates by causing a facsimile of our manual signatures to be printed or
lithographed on each of the Certificates, and we hereby adopt said facsimile signatures as our own, respectively, and
declare that said facsimile signatures constitute our signatures the same as if we had manually signed each of the
Certificates.
(c) The Certificates are substantially in the form, and each of them has been duly executed and signed in
the manner, prescribed in the ordinance authorizing the issuance thereof.
(d) At the time we so executed and signed the Certificates we were, and at the time of executing this
certificate we are, the duly chosen, qualified, and acting officers indicated therein, and authorized to execute and
sign the same.
(e) No litigation of any nature has been filed or is now pending to restrain or enjoin the issuance or delivery
of any of the Certificates, or which would affect the provision made for their payment or security, or in any manner
questioning the proceedings or authority concerning the issuance of the Certificates, and that so far as we know and
believe no such litigation is threatened.
(f) Neither the corporate existence nor boundaries of the Issuer is being contested; no litigation has been
filed or is now pending or threaten ' ' " of the officers of the Issuer to issue, execute,
sign, and deliver any of the Certifi . -' cgs for the issuance of any of the Certificates
have been repealed, revoked, or res f-
(g) We have caused the of
Certificates; and said seal on each
official seal of the Issuer. VA
EXECUTED and deliverer
MANUAL SIGNATURES
"NoiLan L. Malone
l J-t-A /I
IRA/
a Gillett
sed, or printed, or lithographed on each of the
idopted as, and is hereby declared to be, the
(Remainder of page intentionally left blank)
OFFICIAL TITLES
Mayor
City Secretary
OK 'To DA-Ts
STATE OF TEXAS
COUNTY OF HARRIS
The undersigned, a Notary Public, certifies and represents Norman L. Malone and Martha Gillett are
known to me to be the Mayor and the City Secretary, respectively, of the City of La Porte, Texas, and in my
presence each executed this instrument before me in the capacity represented and each of said person's signature
appearing above is genuine.
Given under my hand and seal of office this day of March, 2000.
53VIdX3 NOISSIWW00 AW i. .�
d�mno� H sir�rr ,�,
(NOTARY SEAL) N t Public
2
OFFICIAL STATEMENT CERTIFICATE
On behalf of the City of La Porte, Texas (the "City'), I, the duly acting City Manager of the City,
acting in my official capacity, do hereby certify with respect to "City of La Porte, Texas Certificates of
Obligation, Series 2000" (the "Certificates"), that:
(a) the Official Statement has been authorized and approved by the City Council;
(b) to the best of my knowledge and belief after reasonable investigation, neither the Official
Statement nor any amendment or supplement thereto contains any untrue statement of a material fact or
omits to state any material fact necessary to make the statements therein, in light of circumstances in
which they were made, not misleading;
(c) since the date c
forth in an amendment or
amendment or supplement;
(d) there has not be
since the date of such Offic;
10
EXECUTED this
snt has occurred which should have been set
:ement which has not been set forth in such
WI) V
n the operation or financial affairs of the City
City Manager
I
•
March 27, 2000
The Attorney General of Texas
Public Finance Section
300 West 15th Street, 4the Floor
Austin, Texas 78701
The Comptroller of Public Accounts
Attention: Melissa Mora
208 East loth Street, Room 448
Austin, Texas 78701-2407
Re: City of La Porte, Texas Certificates of Obligation, Series 2000
TO THE ATTORNEY GENERAL
•
The captioned issue of certificates of obligation (the "Certificates") is being sent to you for your
examination and approval and we enclose one executed but undated Signature Identification and No -
Litigation Certificate and one executed but undated General Certificate. Upon approval of the
Certificates, you are authorized to insert the date of the approval in such certificates. If any litigation
should develop, or if any other event should occur which would make any certificate inaccurate, before
you approve the Certificates, we will notify you at once by both telephone and facsimile. With this
assurance, you can rely on the accuracy of such certificates at the time you approve the Certificates,
unless we advise you otherwise.
After you have approved the Certificates, please deliver them to the Comptroller of Public
Accounts of the State of Texas for registration.
TO THE COMPTROLLER
The Certificates will be sent to you for registration. After the Comptroller's Registration
Certificate on the Certificates is duly signed and sealed, you are hereby authorized and directed to send
the Certificates by overnight delivery to Akin, Gump, Strauss, Hauer & Feld, L.L.P., Attorneys at Law,
300 Convent, Suite 1500, San Antonio, Texas 78205, attention of M. Paul Martin, together with four
copies of each of the following:
(1) Attorney General's Approving Opinion.
(2) Comptroller's Signature Certificate.
Very truly yours,
CITY OF LA PORTE, TEXAS
a r
Form 80 8 Information R*101;der
n for Tax -Exempt Governmental ations
Internal Revenue Code section 149(e) OMB No. 1545-0720
(Rev. May 19 ) ► See separate Instructions.
oepanment W the 1.-
NIFTMI
1 Issuer's name
2 Issuer's employer identification number
City of La Porte
74 : 6001552
3 Number and street (or P.O. box if mail is not delivered to street address)
Room/suite
4 Report number
604 West Fairmont
G 2000 - 2
5 City, town, or post office, state, and ZIP code
6 Date of issue
La Porte, TX 77571
7 Name of issue
8 CUSIP number
Certificates of Obligation, Series 2000
9 Name and title of officer or legal representative whom the IRS may call for more information
10 Telephone number of officer or legal representative
M. Paul martin, Esq.
( 210 ) 281-7084
LiNIIW type or Issue (cnecK applicable bOX(es) and enter the issue price) See instructions and attach schedule
11 ❑ Education . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 ❑ Health and hospital . . . . . . . . . . . . . . . . . . . . . .
13 ❑ Transportation . . . . . . . • . . . , , • , , , , , , . , , ,
14 ❑ Public safety . . . . . . . . . . . . . . . . . . . . . . . . .
15 ❑ Environment (including sewage bonds) . . . . . . . . . . . . . . .
16 ❑ Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 ❑ Utilities . . . . . . . . . . . . . . . . . . . . . . . . . .
18 ❑ Other. Describe ►
19 If obligations are TANS or RANs, check box ► ❑ If obligations are BANS, check box ► ❑
20 If obligations are in the form of a lease or installment sale, check box ► ❑
11
12
13
14
15
16
17
18
Description of Obligations. (Complete for the entire issue for which this form is beinq filed.
(a) Final maturity date
(b) Issue price
(c) Stated redemption
price at maturity
(d) Weighted
average maturity
(e) Yield
21 1 1 $ 1 $ 1 years %
Uses of Proceeds of Bond Issue rincluding underwriters' discount
22 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . 22
23 Issue price of entire issue (enter amount from line 21, column (b)) . . . . . . . . 23
24 Proceeds used for bond issuance costs (including underwriters' discount) . 24
25 Proceeds used for credit enhancement . . . . . . . . . . . . 25
26 Proceeds allocated to reasonably required reserve or replacement fund . . 26
27 Proceeds used to currently refund prior issues . . . . . . . . . 27
28 Proceeds used to advance refund prior issues . . . . . . . . 28
29 Total (add lines 24 through 28) . . . . . . . . . . . . . . . . . . . . . 29
30 Nonrefundin proceeds of the issue subtract line 29 from line 23 and enter amount here) . 30
Description of Refunded Bonds (Complete this part only for refunding bonds.
31 Enter the remaining weighted average maturity of the bonds to be currently refunded . . . ► years
32 Enter the remaining weighted average maturity of the bonds to be advance refunded . . . ► years
33 Enter the last date on which the refunded bonds will be called . . . . . . . . . . . ►
34 Enter the date(s) the refunded bonds were issued Do-
UrritIM
Miscellaneous
35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) 35
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) 36a
b Enter the final maturity date of the guaranteed investment contract ►
37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units 37a
b If this issue is a loan made from the proceeds of another tax-exempt issue, check bnx ► ❑ and enter the name of the
issuer ►
38 If the issuer has designated the issue under section 265(b`a4 check box . . . ► ❑
39 If the issuer has elected to pay a penalty in lieu of arbitrac . . . . . . .
t6e issuer has identified a hedge, check box ' '�•i �- `' . . . ► ❑
Under penalties of perjury, I declare that I have examined this ren r. ants. and to the best of my knowledge
• ' •�� . ' and belief, they are true, correct, and complete.
. •` i . �. 1.= 7ot�
•F• �— L. Malone, mayor
ei..Sig a of issuer's authorized representative name and title
For Paperwork Reduction Act Notice, see page 2 of the Instructions. Cat. No. 63773S Form 8038-G (Rev. 5-99)
0 •
REQUO FOR CITY COUNCIL AGENDA ITENO
AGENDA DATE March 27, 2000 REQUESTED BY Jeff Litchfield, Finance Director/ACM
REPORT; RESOLUTION; XX ORDINANCE;
Attachment: Letter from Municipal Judge
Attached is an Ordinance that establishes a Municipal Court Technology Fund. The Fund is
authorized by the Code of Criminal Procedure. The Technology Fund is funded by the
assessment of a $4 fee on anyone convicted of a misdemeanor offense in the Court. The fee
can be spent on a variety of technology related items.
ACTION REQUIRED BY COUNCIL:
Approve ordinance establishing a Municipal Court Technology Fund.
FUND N/A ACCT NUM:
APPROVED FOR CITY COUNCIL AGENDA
QT. g, t,v..e,w
ROBERT T. HERRERA, CITY MANAGER
FUNDS AVAILABLE:
3-212. 2djL)
DATE
Presiding Judge
J.B. Williamson
Associate Judges
Denise C. Mitrano
Tom Richey
TO:
FIcOM:
DATE::
SI.IFIECT:
•
• it-- F'C-' Lt% z HrIE,A
City of La Porte Municipal Court
913 South 8th Street
P.O. Box 705
La Porte, Texas 77572-0705
INTEROFFICE MEMORANDUMS
JOHN
J. S. 'XILLLLNISU`- PRE.SIDI` G JL:L•'C;E
At IOUST 20. 1999
\-f ','•!IC1PALCOr:RTTEC'!t`;OE.0GVFr7\;D
(281) 471-4683
I REVIEWED THE ORDINANCE FOR THE )I_'RT t•F.c:'111,10i.c.,�:iY FI.TND AND
HAVE NO OBJE('-rIONIS. PLEASE FURNISH [:S �VJTI-I A�f_� �!::?:I':(� DXFE SOT11ATT1{E
COUP.'f NIAY ADJUST THE FEE AND FI .-E SCHE'D-"—' L1: 111E IPUT"tR A :D ON 01.',R
PRNTF.D C:IiA T IO'NS.
RECEIVED
FEB 2 2 2000
I ASS'T. CITY VGF0'FI„Fr:! —'F i
ORDINANCE NO.00- A 3 9 1
AN ORDINANCE OF THE CITY OF LA PORTE, HARRIS COUNTY, TEXAS,
ESTABLISHING A MUNICIPAL COURT TECHNOLOGY FUND; PROVIDING FOR
THE ASSESSMENT AND COLLECTION OF A MUNICIPAL COURT TECHNOLOGY
FEE; PROVIDING FOR SEVERABILITY; FINDING COMPLIANCE WITH THE OPEN
MEETINGS LAW; PROVIDING FOR EFFECTIVE DATE; PROVIDING FOR
EXPIRATION DATE.
WHEREAS, Article 102.0172 of the Code of Criminal Procedure provides for the
establishment of a Municipal Court Technology Fund.
Be it Ordained by the City Council of the City of La Porte, Harris County, Texas:
SECTION 1: Establishment of Municipal Court Technology Fund
A. There is hereby created and established a Municipal Court Technology
Fund, here -in -now known as the Fund, pursuant to Article 102.0172 of the Code of
Criminal Procedure.
B. The Fund may be maintained in an interest bearing account and may be
maintained in the general revenue account.
SECTION 2. Establishment of Amount of the fee and Assessment and
Collection
A. The fee shall be in the amount of Four Dollars ($4.00).
B. The fee shall be assessed and collected from the defendant upon
conviction for a misdemeanor offense in the Municipal Court as a cost of court. A
defendant is considered convicted if:
(1) a sentence is imposed on the person;
(2) the person is placed on community supervision, including deferred
adjudication community supervision; or
(3) the court defers final disposition of the person's case.
C. The fee shall be collected on conviction for an offense committed after this
ordinance is adopted.
ORDINANCE NO. 00- SA i
Page 2
D. The clerk of the court shall collect the fee and pay the fee to the Finance
Director of the City of La Porte, Texas, who shall deposit the fee into the Municipal
Court Technology Fund.
SECTION 3. Designated Use of the Fund and Administration
A. The Fund shall be used only to finance the purchase of technological
enhancements for the Municipal court of the City of La Porte, Texas including:
(1) computer systems;
(2) computer networks;
(3) computer hardware;
(4) computer software;
(5) imaging systems;
(6) electronic kiosks;
(7) electronic ticket writers; or
(8) docket management systems.
B. The Fund shall be administered by or under the direction of the City Council of
the City of La Porte, Texas.
SECTION 4. Severability
If any provision, section, subsection, sentence, clause or phrase of this
ordinance, or the application of same to any person or set of circumstances for any
reason is held to be unconstitutional, void or invalid or for any reason unenforceable,
the validity of the remaining portions of this ordinance or the application thereby shall
remain in effect, it being the intent of the City Council of the City of La Porte, Texas in
adopting this ordinance, that no portion thereof or provision contained herein shall
become inoperative or fail by any reason of unconstitutionality or invalidity of any
portion or provision.
ORDINANCE NO. 00- a
Page 3
SECTION 5. Repealing Conflict
All ordinances and parts of ordinances in conflict with this ordinance are hereby
repealed to the extent of conflict with this ordinance.
SECTION 6. Open Meetings Law
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,
Chapter 551, Texas Government Code; 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.
SECTION 7. Effective Date
This Ordinance becomes effective in accordance with state law upon passage
and approval.
SECTION 8. Expiration and Administration of Fund
In accordance with Article 102.0172 of the Code of Criminal Procedure, this
ordinance and the assessment and collection of the Municipal Court Technology fee
expires September 1, 2005. The purpose of the use of any funds remaining in the Fund
shall continue to be used and administered as required by this ordinance and for that
purpose this ordinance remains in effect.
n
ORDINANCE NO. 00-
Page 4
PASSED AND APPROVED THIS THE _"I'' bAY OF N 0- JL-0 2000.
CITY OF LA PORTE
By:
O MA ALO Mayor
ATTEST:
Atw _
MAR HA GILLETT
City Secretary
APP
MSTRONG,
Assistant Pity Attorney
0 •
r:
Agenda Date Requested: March 27, 2000
Requested By: Doug Kneupper
Report Vesolution
Exhibits: Ordinance
Department: Planning
Agreement Between Owner and Architect
XX Ordinance
Summary & Recommendation
The 99-00 CIP Budget includes $40,000 for roof replacement at the Police Department building and
$23,000 for roof replacement at the EMS building. In addition, $60,000 was budgeted in the 98-99 CIP
Budget for roof replacement at the Sylvan Beach Pavilion.
TML, the City's insurance provider, recommends that the Police and Sylvan Beach buildings meet State
Windstorm standards for the new roofs based on their location east of SH 146. There are many roof
products available on today's market providing better protection, longer protection, and in some cases,
additional insulation values. It is for these reasons staff recommends utilizing the services of an
experienced, trained roofing specialist. DCW Architects and Bridges & Co. International will be able to
provide the needed expertise for providing plans, specifications and inspections. Bridges and Co. has
done previous work for the City in a 1996 report regarding the roof and moisture protection for City Hall.
The report was thorough and professional. For the current projects, Bridges and Co. will be performing
the initial inspections and preparing the detailed reports as well as designing the repair or replacement
scenarios for each roof. DCW Architects will be providing the technical specifications, preparing the
construction plans and documentation, and administering the construction phase activities. Bridges and
Co. will be on site performing numerous inspections during the construction phase to ensure that high
quality roofs are installed.
The Agreement Between Owner and Architect has a Lump Sum fee of $37,000 which is in -line with fees
other architects have received on recent projects. This Agreement does allow for the elimination of some
of the architectural services if the Sylvan Beach Pavilion is deleted and addressed at another time. Funds
for architectural services will come from money already budgeted in Fund 015 for roof replacement.
Analysis and then design of all three projects is estimated to take six weeks.
Bridges and Co. has estimated that replacement of all three roofs will cost $268,000. Of this amount,
$161,000 is estimated for Sylvan Beach Pavilion. Staff is recommending completing the analysis and
design for all three roofs, but only replace the EMS and Police roofs at this time. Then, use the
information prepared by the architect and budget for the Sylvan Beach Pavilion work next year.
Action Required by Council:
Consider approval of an ordinance authorizing the City Manager to execute an Agreement Between
Owner and Architect with DCW Architects, Inc. for analysis, design, and inspection of roof
replacement of three buildings and authorizing $37,000 to fund said Agreement.
Availability of Funds:
General Fund Water/Wastewater
XX Capital Improvement Other
Account Number: 015-9892-803-1100 Funds Available: XX Yes No
Approved for City Council Agenda
dK,KT . Herrera Date
ity Manager
ORDINANCE NO. 20004 3 c'r,
AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT
BETWEEN THE CITY OF LA PORTE AND DCW ARCHITECTS, INC. TO
PROVIDE PROFESSIONAL ARCHITECTURAL SERVICES FOR THE
REPLACEMENT OF ROOFS AT THE SYLVAN BEACH PAVILION,
POLICE DEPARTMENT, AND EMS BUILDING; APPROPRIATING
$379000.00 TO FUND SAID CONTRACT; MAKING 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. 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. The City Council appropriates the sum not to
exceed $37,000.00 for professional architectural services for replacement
of roofs at the Sylvan Beach Pavilion, Police Department, and EMS
building, from General Capital Improvement Fund 015 to fund said
contract.
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
ORDINANCE NO. 2000- a 39; ,
by law preceding this meeting, as required by the Open Meetings Law,
Chapter 551, Texas Government Code; 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.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 27th day of March, 2000.
CITY F LA PORTE
By: a�
N6inari L. Milo ,
Mayor
ATTEST:
— 1AUALEM
1ha Gillett
City Secretary ,
APP V
Knox W. Askins,
City Attorney
Abbreviated Standard Form of Agreement
Between Owner and Architect
AIA Document B151 -1997
1997 Edition - Electronic Format
This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.
This documem has been approved and endorsed by the American Subcontractors Association and the Associated Specialty Contractors, Inc.
Copyright 1974, 1978, 1987, 01997 by The American Institute of Architects. Reproduction of the material herein or substantial quotation of its provisions without written
permission of the AIA violates the copyright laws of the United States and will subject the violator to legal prosecution.
AGREEMENT made as of the day of March in the year 2000.
(In words indicate day, month and year)
BETWEEN the Architect's client identified as the Owner:
(Name, address and other information)
City of La Porte
P.O. Box 1115
La Porte. TX 77572-1115
and the Architect:
(Name, address and otter information)
DCW Architects, Inc.
2425 Fountain View. Suite 225
Houston, TX 770574834
For the following Project:
(Include detailed description ofProject, location and address)
Roof reDlacements for Sylvan Beach Pavilion. Police Building. & EMS Building. DCW File No. 991207.
The Owner and Architect agree as follows.
ARTICLE 1 ARCHITECTS RESPONSIBILITIES
1.1 The services performed by the Architect, Architect's employees and Architect's consultants shall be as enumerated in
Articles 2, 3 and 12.
1.2 The Architect's services shall be performed as expeditiously as is consistent with professional skill and care and the orderly
progress of the Project. The Architect shall submit for the Owner's approval a schedule for the performance of the Architect's
services which may be adjusted as the Project proceeds. This schedule shall include allowances for periods of time required for
the Owner's review and for approval of submissions by authorities having jurisdiction over the Project. Time limits established
by this schedule approved by the Owner shall not, except for reasonable cause, be exceeded by the Architect or Owner.
1.3 The Architect shall designate a representative authorized to act on behalf of the Architect with respect to the Project.
1.4 The services covered by this Agreement are subject to the time limitations contained in Subparagraph 11.5.1.
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
expiration as noted below,
Electronic Format B 151-1997
User Document: LA — 3/8/2000. AIA License Number 113314, which expires on 5/31/2000 — Page #1
ARTICLE 2 SCOPE OF ARCHITECT'StSIC SERVICES •
2.1 DEFINITION
The Architect's Basic Services consist of those described in Paragraphs 2.2 through 2.6 and any other services identified in
Article 12 as part of Basic Services, and include normal structural, mechanical and electrical engineering services.
2.2 SCHEMATIC DESIGN PHASE
2.2.1 The Architect shall review the program furnished by the Owner to ascertain the requirements of the Project and shall
arrive at a mutual understanding of such requirements with the Owner.
2.2.2 The Architect shall provide a preliminary evaluation of the Owner's program, schedule and construction budget
requirements, each in terms of the other, subject to the limitations set forth in Subparagraph 5.2.1.
2.2.3 The Architect shall review with the Owner alternative approaches to design and construction of the Project.
2.2.4 Based on the mutually agreed -upon program, schedule and construction budget requirements, the Architect shall
prepare, for approval by the Owner, Schematic Design Documents consisting of drawings and other documents illustrating the
scale and relationship of Project components.
2.2.5 The Architect shall submit to the Owner a preliminary estimate of Construction Cost based on current area, volume or
similar conceptual estimating techniques.
2.3 DESIGN DEVELOPMENT PHASE
2.3.1 Based on the approved Schematic Design Documents and any adjustments authorized by the Owner in the program,
schedule or construction budget, the Architect shall prepare, for approval by the Owner, Design Development Documents
consisting of drawings and other documents to fix and describe the size and character of the Project as to architectural,
structural, mechanical and electrical systems, materials and such other elements as may be appropriate.
2.3.2 The Architect shall advise the Owner of any adjustments to the preliminary estimate of Construction Cost.
2.4 CONSTRUCTION DOCUMENTS PHASE
2.4.1 Based on the approved Design Development Documents and any further adjustments in the scope or quality of the
Project or in the construction budget authorized by the Owner, the Architect shall prepare, for approval by the Owner,
Construction Documents consisting of Drawings and Specifications setting forth in detail the requirements for the construction
of the Project.
2.4.2 The Architect shall assist the Owner in the preparation of the necessary bidding information, bidding forms, the
Conditions of the Contract, and the form of Agreement between the Owner and Contractor.
2.4.3 The Architect shall advise the Owner of any adjustments to previous preliminary estimates of Construction Cost
indicated by changes in requirements or general market conditions.
2.4.4 The Architect shall assist the Owner in connection with the Owner's responsibility for filing documents required for
the approval of governmental authorities having jurisdiction over the Project.
2.5 BIDDING OR NEGOTIATION PHASE
The Architect, following the Owner's approval of the Construction Documents and of the latest preliminary estimate of
Construction Cost, shall assist the Owner in obtaining bids or negotiated proposals and assist in awarding and preparing
contracts for construction.
2.6 CONSTRUCTION PHASED —ADMINISTRATION OF THE CONSTRUCTION CONTRACT
2.6.1 The Architect's responsibility to provide Basic Services for the Construction Phase under this Agreement commences
with the award of the initial Contract for Construction and terminates at the earlier of the issuance to the Owner of the final
AIA DOCUMENT B151-ABBREVLATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INST Tim OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
expiration as noted below.
Electronic Format B151-1997
User Document: LA — 3/8/2000. AIA License Number 113314, which expires on 5/31/2000 — Page #2
Certificate for Payment or 60 days Ace date of Substantial Completion of the Work,
2.6.2 The Architect shall provide administration of the Contract for Construction as set forth below and in the edition of AIA
Document A201, General Conditions of the Contract for Construction, current as of the date of this Agreement, unless
otherwise provided in this Agreement. Modifications made to the General Conditions, when adopted as part of the Contract
Documents, shall be enforceable under this Agreement only to the extent that they are consistent with this Agreement or
approved in writing by the Architect.
2.6.3 Duties, responsibilities and limitations of authority of the Architect under this Paragraph 2.6 shall not be restricted,
modified or extended without written agreement of the Owner and Architect with consent of the Contractor, which consent will
not be unreasonably withheld.
2.6.4 The Architect shall be a representative of and shall advise and consult with the Owner during the administration of the
Contract for Construction. The Architect shall have authority to act on behalf of the Owner only to the extent provided in this
Agreement unless otherwise modified by written amendment.
2.6.5 The Architect, as a representative of the Owner, shall visit the site at intervals appropriate to the stage of the
Contractors operations, or as otherwise agreed by the Owner and the Architect in Article 12, (1) to become generally familiar
with and to keep the Owner informed about the progress and quality of the portion of the Work completed, (2) to endeavor to
guard the Owner against defects and deficiencies in the Work, and (3) to determine in general if the Work is being performed
in a manner indicating that the Work, when fully completed, will be in accordance with the Contract Documents. However, the
Architect shall not be required to make exhaustive or continuous on -site inspections to check the quality or quantity of the
Work. The Architect shall neither have control over or charge of, nor be responsible for, the construction means, methods,
techniques, sequences or procedures, or for safety precautions and programs in connection with the Work, since these are solely
the Contractors rights and responsibilities under the Contract Documents.
2.6.6 The Architect shall report to the Owner known deviations from the Contract Documents and from the most recent
construction schedule submitted by the Contractor. However, the Architect shall not be responsible for the Contractors failure
to perform the Work in accordance with the requirements of the Contract Documents. The Architect shall be responsible for the
Architect's negligent acts or omissions, but shall not have control over or charge of and shall not be responsible for acts or
omissions of the Contractor, Subcontractors, or their agents or employees, or of any other persons or entities performing
portions of the Work.
2.6.7 The Architect shall at all times have access to the Work wherever it is in preparation or progress.
2.6.8 Except as otherwise provided in this Agreement or when direct communications have been specially authorized, the
Owner shall endeavor to communicate with the Contractor through the Architect about matters arising out of or relating to the
Contract Documents. Communications by and with the Architect's consultants shall be through the Architect.
2.6.9 CERTIFICATES FOR PAYMENT
2.6.9.1 The Architect shall review and certify the amounts due the Contractor and shall issue certificates in such amounts.
2.6.9.2 The Architect's certification for payment shall constitute a representation to the Owner, based on the Architect's
evaluation of the Work as provided in Subparagraph 2.6.5 and on the data comprising the Contractor's Application for
Payment, that the Work has progressed to the point indicated and that, to the best of the Architect's knowledge, information and
belief, the quality of the Work is in accordance with the Contract Documents. The foregoing representations are subject (1) to
an evaluation of the Work for conformance with the Contract Documents upon Substantial Completion, (2) to results of
subsequent tests and inspections, (3) to correction of minor deviations from the Contract Documents prior to completion, and
(4) to specific qualifications expressed by the Architect.
2.6.9.3 The issuance of a Certificate for Payment shall not be a representation that the Architect has (1) made exhaustive or
continuous on -site inspections to check the quality or quantity of the Work, (2) reviewed construction means, methods,
techniques, sequences or procedures, (3) reviewed copies of requisitions received from Subcontractors and material suppliers
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTIT UrE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WAILNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the :alA and can be reproduced without violation until the date of
expiration as noted bctow.
Electronic Format B151-1997
User Document: LA — 3/8/2000. AIA License Number 113314, which expires on 5/31/2000 — Page #3
and other data requested by the Owner o substantiate the Contractor's right to paym or (4) ascertained how or for what
purpose the Contractor has used money previously paid on account of the Contract Sum.
2.6.10 The Architect shall have authority to reject Work that does not conform to the Contract Documents. Whenever the
Architect considers it necessary or advisable, the Architect shall have authority to require inspection or testing of the Work in
accordance with the provisions of the Contract Documents, whether or not such Work is fabricated, installed or completed.
However, neither this authority of the Architect nor a decision made in good faith either to exercise or not to exercise such
authority shall give rise to a duty or responsibility of the Architect to the Contractor, Subcontractors, material and equipment
suppliers, their agents or employees or other persons or entities performing portions of the Work.
2.6.11 The Architect shall review and approve or take other appropriate action upon the Contractor's submittals such as Shop
Drawings, Product Data and Samples, but only for the limited purpose of checking for conformance with information given and
the design concept expressed in the Contract Documents. The Architect's action shall be taken with such reasonable promptness
as to Muse no delay in the Work or in the activities of the Owner, Contractor or separate contractors, while allowing sufficient
time in the Architect's professional judgment to permit adequate review. Review of such submittals is not conducted for the
purpose of determining the accuracy and completeness of other details such as dimensions and quantities, or for substantiating
instructions for installation or performance of equipment or systems, all of which remain the responsibility of the Contractor as
required by the Contract Documents. The Architect's review shall not constitute approval of safety precautions or, unless
otherwise specifically stated by the Architect, of any construction means, methods, techniques, sequences or procedures. The
Architect's approval of a specific item shall not indicate approval of an assembly of which the item is a component.
2.6.12 If professional design services or certifications by a design professional related to systems, materials or equipment are
specifically required of the Contractor by the Contract Documents, the Architect shall specify appropriate performance and
design criteria that such services must satisfy. Shop Drawings and other submittals related to the Work designed or certified by
the design professional retained by the Contractor shall bear such professional's written approval when submitted to the
Architect. The Architect shall be entitled to rely upon the adequacy, accuracy and completeness of the services, certifications or
approvals performed by such design professionals.
2.6.13 The Architect shall prepare Change Orders and Construction Change Directives, with supporting documentation and
data if deemed necessary by the Architect as provided in Subparagraphs 3.1.1 and 3.3.3, for the Owner's approval and
execution in accordance with the Contract Documents, and may authorize minor changes in the Work not involving an
adjustment in the Contract Sum or an extension of the Contract Time which are consistent with the intent of the Contract
Documents.
2.6.14 The Architect shall conduct inspections to determine the date or dates of Substantial Completion and the date of final
completion, shall receive from the Contractor and forward to the Owner, for the Owner's review and records, written warranties
and related documents required by the Contract Documents and assembled by the Contractor, and shall issue a final Certificate
for Payment based upon a final inspection indicating the Work complies with the requirements of the Contract Documents.
2.6.15 The Architect shall interpret and decide matters concerning performance of the Owner and Contractor under, and
requirements of, the Contract Documents on written request of either the Owner or Contractor. The Architect's response to such
requests shall be made in writing within any time limits agreed upon or otherwise with reasonable promptness.
2.6.16 Interpretations and decisions of the Architect shall be consistent with the intent of and reasonably inferable from the
Contract Documents and shall be in writing or in the form of drawings. When making such interpretations and initial
decisions, the Architect shall endeavor to secure faithful performance by both Owner and Contractor, shall not show partiality
to either, and shall not be liable for results of interpretations or decisions so rendered in good faith.
2.6.17 The Architect shall :render initial decisions on claims, disputes or other matters in question between the Owner and
Contractor as provided in the Contract Documents. However, the Architect's decisions on matters relating to aesthetic effect
shall be final if consistent with the intent expressed in the Contract Documents.
2.6.18 The Architect's decisions on claims, disputes or other matters in question between the Owner and Contractor, except
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
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for those relating to aesthetic effect • arovided in Subparagraph 2.6.17, shall be *kt to mediation and arbitration as
provided in this Agreement and in the Contract Documents.
ARTICLE 3 ADDITIONAL SERVICES
3.1 GENERAL
3.1.1 The services described in this Article 3 are not included in Basic Services unless so identified in Article 12, and they
shall be paid for by the Owner as provided in this Agreement, in addition to the compensation for Basic Services. The services
described under Paragraphs 3.2 and 3.4 shall only be provided if authorized or confirmed in writing by the Owner. If services
described under Contingent Additional Services in Paragraph 3.3 are required due to circumstances beyond the Architect's
control, the Architect shall notify the Owner prior to commencing such services. If the Owner deems that such services
described under Paragraph 3.3 are not required, the Owner shall give prompt written notice to the Architect. If the Owner
indicates in writing that all or part of such Contingent Additional Services are not required, the Architect shall have no
obligation to provide those services.
3.2 PROJECT REPRESENTATION BEYOND BASIC SERVICES
3.2.1 If more extensive representation at the site than is described in Subparagraph 2.6.5 is required, the Architect shall
provide one or more Project Representatives to assist in carrying out such additional on -site responsibilities.
3.2.2 Project Representatives shall be selected, employed and directed by the Architect, and the Architect shall be
compensated therefor as agreed by the Owner and Architect. The duties, responsibilities and limitations of authority of Project
Representatives shall be as described in the edition of AIA Document B352 current as of the date of this Agreement, unless
otherwise agreed.
3.2.3 Through the presence at the site of such Project Representatives, the Architect shall endeavor to provide further
protection for the Owner against defects and deficiencies in the Work, but the furnishing of such project representation shall not
modify the rights, responsibilities or obligations of the Architect as described elsewhere in this Agreement.
3.3 CONTINGENT ADDITIONAL SERVICES
3.3.1 Making revisions in drawings, specifications or other documents when such revisions are:
.1 inconsistent with approvals or instructions previously given by the Owner, including revisions made necessary by
adjustments in the Owner's program or Project budget;
.2 required by the enactment or revision of codes, laws or regulations subsequent to the preparation of such
documents; or
.3 due to changes required as a result of the Owner's failure to render decisions in a timely manner.
3.3.2 Providing services required because of significant changes in the Project including, but not limited to, size, quality,
complexity, the Owner's schedule, or the method of bidding or negotiating and contracting for construction, except for services
required under Subparagraph 5.2.5.
3.3.3 Preparing Drawings, Specifications and other documentation and supporting data, evaluating Contractor's proposals,
and providing other services in connection with Change Orders and Construction Change Directives.
3.3.4 Providing services in connection with evaluating substitutions proposed by the Contractor and making subsequent
revisions to Drawings, Specifications and other documentation resulting therefrom.
3.3.5 Providing consultation concerning replacement of Work damaged by fire or other cause during construction, and
furnishing services required in connection with the replacement of such Work.
3.3.6 Providing services made necessary by the default of the Contractor, by major defects or deficiencies in the Work of the
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA- COPYRIGHT 1997 -THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
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Contractor, or by failure of performancaither the Owner or Contractor under the Coot for Construction.
3.3.7 Providing services in evaluating an extensive number of claims submitted by the Contractor or others in connection
with the Work.
3.3.8 Providing services in connection with a public hearing, a dispute resolution proceeding or a legal proceeding except
where the Architect is party thereto.
3.3.9 Preparing documents for alternate, separate or sequential bids or providing services in connection with bidding,
negotiation or construction prior to the completion of the Construction Documents Phase.
3.4 OPTIONAL ADDITIONAL SERVICES
3.4.1 Providing analyses of the Owner's needs and programming the requirements of the Project
3.4.2 Providing financial feasibility or other special studies.
3.4.3 Providing planning surveys, site evaluations or comparative studies of prospective sites.
3.4.4 Providing special surveys, environmental studies and submissions required for approvals of governmental authorities
or others having jurisdiction. over the Project.
3.4.5 Providing services relative to future facilities, systems and equipment.
3.4.6 Providing services to investigate existing conditions or facilities or to make measured drawings thereof.
3.4.7 Providing services to verify the accuracy of drawings or other information furnished by the Owner.
3.4.8 Providing coordination of construction performed by separate contractors or by the Owner's own forces and
coordination of services required in connection with construction performed and equipment supplied by the Owner.
3.4.9 Providing services in connection with the work of a construction manager or separate consultants retained by the
Owner.
3.4.10 Providing detailed estimates of Construction Cost.
3.4.11 Providing detailed quantity surveys or inventories of material, equipment and labor.
3.4.12 Providing analyses of owning and operating costs.
3.4.13 Providing interior design and other similar services required for or in connection with the selection, procurement or
installation of furniture, furnishings and related equipment.
3.4.14 Providing services for planning tenant or rental spaces.
3.4.15 Making investigations, inventories of materials or equipment, or valuations and detailed appraisals of existing
facilities.
3.4.16 Preparing a set of reproducible record drawings showing significant changes in the Work made during construction
based on marked -up prints, drawings and other data furnished by the Contractor to the Architect.
3.4.17 Providing assistance in the utilization of equipment or systems such as testing, adjusting and balancing, preparation of
operation and maintenance manuals, training personnel for operation and maintenance, and consultation during operation.
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
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3.4.18 Providing services after ims to the Owner of the final Certificate fooment, or in the absence of a final
Certificate for Payment, more than 60 days after the date of Substantial Completion of the Work.
3.4.19 Providing services of consultants for other than architectural, structural, mechanical and electrical engineering
portions of the Project provided as a part of Basic Services.
3.4.20 Providing any other services not otherwise included in this Agreement or not customarily furnished in accordance with
generally accepted architectural practice.
ARTICLE 4 OWNER'S RESPONSIBILITIES
4.1 The Owner shall provide full information in a timely manner regarding requirements for and limitations on the Project,
including a written program which shall set forth the Owner's objectives, schedule, constraints and criteria, including space
requirements and relationships, flexibility; expandability, special equipment, systems and site requirements. The Owner shall
fiuuish to the Architect, within 15 days after receipt of a written request, information necessary and relevant for the Architect to
evaluate, give notice of or enforce lien rights.
4.2 The Owner shall establish and periodically update an overall budget for the Project, including the Construction Cost, the
Owner's other costs and reasonable contingencies related to all of these costs.
4.3 The Owner shall designate a representative authorized to act on the Owner's behalf with respect to the Project. The Owner
or such designated representative shall render decisions in a timely manner pertaining to documents submitted by the Architect
in order to avoid unreasonable delay in the orderly and sequential progress of the Architect's services.
4.4 The Owner shall furnish surveys to describe physical characteristics, legal limitations and utility locations for the site of the
Project, and a written legal description of the site. The surveys and legal information shall include, as applicable, grades and
lines of streets, alleys, pavements and adjoining property and structures; adjacent drainage; rights -of -way, restrictions,
easements, encroachments, zoning, deed restrictions, boundaries and contours of the site; locations, dimensions and necessary
data with respect to existing buildings, other improvements and trees; and information concerning available utility services and
lines, both public and private, above and below grade, including inverts and depths. All the information on the survey shall be
referenced to a Project benchmark.
4.5 The Owner shall furnish the services of geotechnical engineers when such services are requested by the Architea Such
services may include but are not limited to test borings, test pits, determinations of soil bearing values, percolation tests,
evaluations of hazardous materials, ground corrosion tests and resistivity tests, including necessary operations for anticipating
subsoil conditions, with reports and appropriate recommendations.
4.6 The Owner shall fiirnish the services of consultants other than those designated in Paragraph 4.5 when such services are
requested by the Architect and are reasonably required by the scope of the Project.
4.7 The Owner shall furnish structural, mechanical, and chemical tests; tests for air and water pollution; tests-fef hazwdeus
banter-ials; and other laboratory and environmental tests, inspections and reports required by law or the Contract Documents.
4.8 The Owner shall furnish. all legal, accounting and insurance services that may be necessary at any time for the Project to
meet the Owner's needs and interests. Such services shall include auditing services the Owner may require to verify the
Contractor's Applications for Payment or to ascertain how or for what purposes the Contractor has used the money paid by or
on behalf of the Owner.
4.9 The services, information. surveys and reports required by Paragraphs 4.4 through 4.8 shall be furnished at the Owner's
expense, and the Architect shall be entitled to rely upon the accuracy and completeness thereof.
4.10 The Owner shall provide prompt written notice to the Architect if the Owner becomes aware of any fault or defect in the
Project, including any errors, omissions or inconsistencies in the Architect's Instruments of Service.
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
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ARTICLES CONSTRUCTION COST
5.1 DEFINITION
5..1.1 The Construction Cost shall be the total cost or, to the extent the Project is not completed, the estimated cost to the
Owner of all elements of the Project designed or specified by the Architect.
5.1.2 The Construction Cost shall include the cost at current market rates of labor and materials furnished by the Owner and
equipment designed, specified, selected or specially provided for by the Architect, including the costs of management or
supervision of construction or installation provided by a separate construction manager or contractor, plus a reasonable
allowance for their overhead and profit. In addition, a reasonable allowance for contingencies shall be included for market
conditions at the time of bidding and for changes in the Work.
5.1.3 Construction Cost does not include the compensation of the Architect and the Architect's consultants, the costs of the
land, rights -of -way and financing or other costs that are the responsibility of the Owner as provided in Article 4.
5.2 RESPONSIBILITY FOR CONSTRUCTION COST
5.2.1 Evaluations of the Owner's Project budget, the preliminary estimate of Construction Cost and detailed estimates of
Construction Cost, if any, prepared by the Architect, represent the Architect's judgment as a design professional familiar with
the construction industry. It is recognized, however, that neither the Architect nor the Owner has control over the cost of labor,
materials or equipment, over the Contractor's methods of determining bid prices, or over competitive bidding, market or
negotiating conditions. Accordingly, the Architect cannot and does not warrant or represent that bids or negotiated prices will
not vary from the Owner's Project budget or from any estimate of Construction Cost or evaluation prepared or agreed to by the
Architect.
5.2.2 No fixed limit of Construction Cost shall be established as a condition of this Agreement by the furnishing, proposal or
establishment of a Project budget, unless such fixed limit has been agreed upon in writing and signed by the parties hereto. If
such a fixed limit has been established, the Architect shall be permitted to include contingencies for design, bidding and price
escalation, to determine what materials, equipment, component systems and types of construction are to be included in the
Contract Documents, to make reasonable adjustments in the scope of the Project and to include in the Contract Documents
alternate bids as may be necessary to adjust the Construction Cost to the fixed limit. Fixed limits, if any, shall be increased in
the amount of an increase in the Contract Sum occurring after execution of the Contract for Construction.
5.2.3 If the Bidding or Negotiation Phase has not commenced within 90 days after the Architect submits the Construction
Documents to the Owner, any Project budget or fixed limit of Construction Cost shall be adjusted to reflect changes in the
general level of prices in the construction industry.
5.2.4 If a fixed limit of Construction Cost (adjusted as provided in Subparagraph 5.2.3) is exceeded by the lowest bona fide
bid or negotiated proposal, the Owner shall:
.1 give written approval of an increase in such fixed limit;
.2 authorize rebidding or renegotiating of the Project within a reasonable time;
.3 terminate in accordance with Paragraph 8.5; or
.4 cooperate in revising the Project scope and quality as required to reduce the Construction Cost.
5.2.5 If the Owner chooses to proceed under Clause 5.2.4.4, the Architect, without additional compensation, shall modify the
documents for which the Architect is responsible under this Agreement as necessary to comply with the fixed limit, if
established as a condition of this Agreement. The modification of such documents without cost to the Owner shall be the limit
of the Architect's responsibility under this Subparagraph 5.2.5. The Architect shall be entitled to compensation in accordance
with this Agreement for all services performed whether or not the Construction Phase is commenced.
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WAILNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
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ARTICLE 6 USE OF ARCHITECT'S INSTRUMENTS OF SERVICE
6.1 Drawings, specifications and other documents, including those in electronic form, prepared by the Architect and the
Architect's consultants are Instruments of Service for use solely with respect to this Project. The Architect and the Architect's
consultants shall be deemed the authors and owners of their respective Instruments of Service and shall retain all common law,
statutory and other reserved rights, including copyrights.
61 Upon execution of this Agreement, the Architect grants to the Owner a nonexclusive license to reproduce the Architect's
Instruments of Service solely for purposes of constructing, using and maintaining the Project, provided that the Owner shall
comply with all obligations, including prompt payment of all sums when due, under this Agreement. The Architect shall obtain
similar nonexclusive licenses from the Architect's consultants consistent with this Agreement. Any termination of this
Agreement prior to completion of the Project shall terminate this license. Upon such termination, the Owner shall refrain from
making fiuther reproductions of Instruments of Service and shall return to the Architect within seven days of termination all
originals and reproductions in the Owner's possession or control. If and upon the date the Architect is adjudged in default of
this Agreement, the foregoing license shall be deemed terminated and replaced by a second, nonexclusive license permitting the
Owner to authorize other similarly credentialed design professionals to reproduce and, where permitted by law, to make
changes, corrections or additions to the Instruments of Service solely for purposes of completing, using and maintaining the
Project.
6.3 Except for the licenses granted in Paragraph 6.2, no other license or right shall be deemed granted or implied under this
Agreement. The Owner shall not assign, delegate, sublicense, pledge or otherwise transfer any license granted herein to another
party without the prior written agreement of the Architect. However, the Owner shall be permitted to authorize the Contractor,
Subcontractors, Sub -subcontractors and material or equipment suppliers to reproduce applicable portions of the Instruments of
Service appropriate to and for use in their execution of the Work by license granted in Paragraph 6.2. Submission or
distribution of Instruments of Service to meet official regulatory requirements or for similar purposes in connection with the
Project is not to be construed as publication in derogation of the reserved rights of the Architect and the Architect's consultants.
The Owner shall not use the Instruments of Service for future additions or alterations to this Project or for other projects, unless
the Owner obtains the prior written agreement of the Architect and the Architect's consultants. Any unauthorized use of the
Instruments of Service shall be at the Owner's sole risk and without liability to the Architect and the Architect's consultants.
6.4 Prior to the Architect providing to the Owner any Instruments of Service in electronic form or the Owner providing to the
Architect any electronic data for incorporation into the Instruments of Service, the Owner and the Architect shall by separate
written agreement set forth the specific conditions governing the format of such Instruments of Service or electronic data,
including any special limitations or licenses not otherwise provided in this Agreement.
ARTICLE 7 DISPUTE RESOLUTION
7A MEDIATION
7.1.1
7.1.2 The Owne-a AFebiteeendem-eF4e-Fesel+e eiaifas, dispute ethey mat4ers4R questie between-thetx4yf-
of -a detmd -fef -afNeetiel3 -I* -in -saeh evenly-mediatiee -AaH-preeeed -ice-advene -e€-ethisratiea -eF -legal -ff equitable
pmeeedings; -%Neh shW1 be stayed pending mediatien far. a per-ied of 60 days ftem the date ef filing-, wdess Vayed feF a longer-
7.1.3equally.
ALA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
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the PFejm4 is lesawd; ess aHOthff . ion is fau"y agFeed upon. AgFeeffiefli—S FeA is m--uafien sh" be ea&meable as
7.2 ARBITRATION
7.2.1 Amy - spuie -eF -ether -mane F 4a questien -wisin -eut -e€-(w -r elated -te -ems Agmmen -be s jee4 4e-
7.2.2 Glaiffm,
by -&&6-atie$ wkAek -aWess Ole -panies -muNW! egl:ee ethepMse,-sltall -be -in -aEc-eFdan -wAth -tbe-Eenst'fueEien-indusify
Mien Ries -e€4he Amer-i AFbitFatien weeeumad5 -in effect. eke deffand -€ef afbimtiee ail -be filed -in-
7.2.3 Add-€elefbitffifien-snail be -wade n-a-reasonablBlain -dispute
has efisen. In no even! shWl dhe dem—end— ff�ff wbitfalien be faade aAer- the clate when instituden ef legal or. equitable pr-eeeedings
based an such elaim; dispute OF etheF matter. ift question weald be baffed by d4e applieable statute ef lia3katiens.
7.2.4 Ne afb4atie ar-isin g te€-ef-Felatifg4e-this Agr—eemen -shall-iaelede,* eeaselidatiet3-ef joinde -iw-in,any-ethef
to -this-Agfeernest -and Wiled -by 4he A+ffieF; Wit; -ate any etheF-peFsen -of -entity-sough -te -be jeined.-Eensent -te-
e>g-ifivel-ing-an additional -peso n-ef-entity-shall- tet-eenstitute eensent4e-aFbim iett-ef-any elaiftdispute-ff other.
-egfeeine
7.2.5 The awafd readeFed by the afbiMteF OF ElfbitNtOF sMl be final,
7.3 CLAIMS FOR CONSEQUENTIAL DAMAGES
The Architect and Owner waive consequential damages. for claims, disputes or other matters in question arising out of or
relating to this Agreement. This mutual waiver is applicable, without limitation, to all consequential damages due to either
parry's termination in accordance with Article S.
Insert A: 7.4 DISPUTE RESOLUTION: The parties will attempt in good faith to resolve anv controversv or claim arising out of or
relating to this agreement -promptly by negotiation between senior executives of the parties who have authority to settle the
controversy. The disputing party shall give the other partv written notice of the dispute Within ten days after receipt of said notice
the receiving varty shall submit to the other a written response The notice and regRonse shall include (a) a statement of each party's
position and a summary of the evidence and arguments supporting its position and (b) the name and title of the executive who will
represent that a_p_yrl . _ The executives shall meet at a mutually acceptable time and place within twen days of the date of the
disputing vartv's notice and thereafter as often as they reasonably deem necessary to exchange relevant information and to attempt
to resolve the dispute If the controversy or claim has not been resolved within thirty days of the meeting of the senior executives,
the parties shall endeavor to settle the dispute by mediation under the Center for Public Resources Model Procedure for Mediation
for Business Disputes or pursue amicable termination. _ If the matter has not been resolved pursuant to the aforesaid mediation
procedure within sixty days of the commencement of such procedure, whichgeriod may be extended by mutual agreement), or if
either partv will not participate in such procedurethe parties shall pursue amicable termination.
ARTICLE 8 TERMINATION OR SUSPENSION
8.1 If the Owner fails to make payments to the Architect in accordance with this Agreement, such failure shall be considered
substantial nonperformance and cause for termination or, at the Architect's option, cause for suspension of performance of
services under this Agreement. If the Architect elects to suspend services, prior to suspension of services, the Architect shall
give seven days' written notice to the Owner. In the event of a suspension of services, the Architect shall have no liability to the
Owner for delay or damage caused the Owner because of such suspension of services. Before resuming services, the Architect
shall be paid all sums due prior to suspension and any expenses incurred in the interruption and resumption of the Architect's
services. The Architect's fees for the remaining services and the time schedules shall be equitably adjusted.
ALA DOCUMENT 8151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE A.b1ERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHNGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
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8.2 If the Project is suspended by the Owner for more than 30 consecutive days, the Architect shall be compensated for services
performed prior to notice of such suspension. When the Project is resumed, the Architect shall be compensated for expenses
incurred in the interruption and resumption of the Architect's services. The Architect's fees for the remaining services and the
time schedules shall be equitably adjusted.
8.3 If the Project is suspended or the Architect's services are suspended for more than 90 consecutive days, the Architect may
terminate this Agreement by giving not less than seven days' written notice.
8.4 This Agreement may be terminated by either party upon not less than seven days' written notice should the other party fail
substantially to perform in accordance with the terms of this Agreement through no fault of the party initiating the termination.
8.5 This Agreement may be terminated by the Owner upon not less than seven days' written notice to the Architect for the
Owner's convenience and without cause.
8.6 In the event of termination not the fault of the Architect, the Architect shall be compensated for services performed prior to
termination, together with Reimbursable Expenses then due and all Termination Expenses as defined in Paragraph 8.7.
8.7 Termination Expenses are in addition to compensation for the services of the Agreement and include expenses directly
attributable to termination for which the Architect is not otherwise compensated, plus an amount for the Architect's anticipated
profit on the value of the services not performed by the Architect.
ARTICLE 9 MISCELLANEOUS PROVISIONS
9.1 This Agreement shall be governed by the law of the principal place of business of the Architect, unless otherwise provided
in Article 12.
9.2 Terms in this Agreement shall have the same meaning as those in the edition of AIA Document A201, General Conditions
of the Contract for Construction, current as of the date of this Agreement.
9.3 Causes of action between the parties to this Agreement pertaining to acts or failures to act shall be deemed to have accrued
and the applicable statutes of limitations shall commence to run not later than either the date of Substantial Completion for acts
or failures to act occurring prior to Substantial Completion or the date of issuance of the final Certificate for Payment for acts or
failures to act occurring after Substantial Completion. In no event shall such statutes of limitations commence to run any later
than the date when the Architect's services are substantially completed.
9.4 To the extent damages are covered by property insurance during construction, the Owner and Architect waive all rights
against each other and against the contractors, consultants, agents and employees of the other for damages, except such rights
as they may have to the proceeds of such insurance as set forth in the edition of AIA Document A201, General Conditions of
the Contract for Construction, current as of the date of this Agreement. The Owner or the Architect, as appropriate, shall
require of the contractors, consultants, agents and employees of any of them similar waivers in favor of the other parties
enumerated herein.
9.5 The Owner and Architect, respectively, bind themselves, their partners, successors, assigns and legal representatives to the
other party to this Agreement and to the partners, successors, assigns and legal representatives of such other party with respect
to all covenants of this Agreement. Neither the Owner nor the Architect shall assign this Agreement without the written
consent of the other, except that the Owner may assign this Agreement to an institutional lender providing financing for the
Project. In such event, the lender shall assume the Owner's rights and obligations under this Agreement. The Architect shall
execute all consents reasonably required to facilitate such assignment.
9.6 This Agreement represents the entire and integrated agreement between the Owner and the Architect and -supersedes all
prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written
instrument signed by both Owner and Architect.
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHNGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
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9.7 Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third
party against either the Owner or Architect.
9.8 Unless otherwise provided in this Agreement, the Architect and Architect's consultants shall have no responsibility for the
discovery, presence, handling, removal or disposal of or exposure of persons to hazardous materials or toxic substances in any
form at the Project site.
9.9 The Architect shall have the right to include photographic or artistic representations of the design of the Project among the
Architect's promotional and professional materials. The Architect shall be given reasonable access to the completed Project to
make such representations. However, the Architect's materials shall not include the Owner's confidential or proprietary
information if the Owner has previously advised the Architect in writing of the specific information considered by the Owner to
be confidential or proprietary. The Owner shall provide professional credit for the Architect in the Owner's promotional
materials for the Project.
9.10 If the Owner requests the Architect to execute certificates, the proposed language of such certificates shall be submitted
to the Architect for review at least 14 days prior to the requested dates of execution. The Architect shall not be required to
execute certificates that would require knowledge, services or responsibilities beyond the scope of this Agreement.
ARTICLE 10 PAYMENTS TO THE ARCHITECT
10.1 DIRECT PERSONNEL EXPENSE
Direct Personnel Expense is defined as the direct salaries of the Architect's personnel engaged on the Project and the portion of
the cost of their mandatory and customary contributions and benefits related thereto, such as employment taxes and other
statutory employee benefits, insurance, sick leave, holidays, vacations, employee retirement plans and similar contributions.
10.2 REIMBURSABLE EXPENSES
10.2.1 Reimbursable Expenses are in addition to compensation for Basic and Additional Services and include expenses
incurred by the Architect and Architect's employees and -consultants directly related to the Project, as identified in the following
Clauses:
.1 transportation in connection with the Project, authorized out-of-town travel and subsistence, and electronic
communications;
.2 fees paid for securing approval of authorities having jurisdiction over the Project.
.3 reproductions, plots, standard form documents, postage, handling and delivery of Instruments of Service;
.4 expense of overtime work requiring higher than regular rates if authorized in advance by the Owner,
.5 renderings, models and mock-ups requested by the Owner;
.6 expense of professional liability insurance dedicated exclusively to this Project or the expense of additional
insurance coverage or limits requested by the Owner in excess of that normally carried by the Architect and the
Architect's consultants;
.7 reimbursable expenses as designated in Article 12;
.8 other similar direct Project -related expenditures.
10.3 PAYMENTS ON ACCOUNT OF BASIC SERVICES
10.3.1 An initial payment as set forth in Paragraph 11.1 is the minimum payment under this Agreement.
AEA DOCUMENT 13151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WAR, -LINO: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
expiration as noted below.
Electronic Format B151-1997
User Document: LA — 3/8/2000. AIA License Number 113314, which expires on 5/31/2000 — Page #12
1• •
10.3.2 Subsequent payments for Basic Services shall be made monthly and, where applicable, shall be in proportion to
services performed within each phase of service, on the basis set forth in Subparagraph 11.2.2.
10.3.3 If and to the extent that the time initially established in Subparagraph 11.5.1 of this Agreement is exceeded or
extended through no fault of the Architect, compensation for any services rendered during the additional period of time shall be
computed in the manner set forth in Subparagraph 11.3.2.
10.3.4 When compensation is based on a percentage of Construction Cost and any portions of the Project are deleted or
otherwise not constructed, compensation for those portions of the Project shall be payable to the extent services are performed
on those portions, in accordance with the schedule set forth in Subparagraph 11.2.2, based on (1) the lowest bona fide bid or
negotiated proposal, or (2) if no such bid or proposal is received, the most recent preliminary estimate of Construction Cost or
detailed estimate of Construction Cost for such portions of the Project.
10.4 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES
Payments on account of the Architect's Additional Services and for Reimbursable Expenses shall be made monthly upon
presentation of the Architect's statement of services rendered or expenses incurred.
10.5 PAYMENTS WITHHELD
No deductions shall be made from the Architect's compensation on account of penalty, liquidated damages or other sums
withheld from payments to contractors, or on account of the cost of changes in the Work other than those for which the
Architect has been adjudged to be liable.
10.6 ARCHITECT'S ACCOUNTING RECORDS
Records of Reimbursable Expenses and expenses pertaining to Additional Services and services performed on the basis of
hourly rates or a multiple of Direct Personnel Expense shall be available to the Owner or the Owner's authorized representative
at mutually convenient times.
ARTICLE 11 BASIS OF COMPENSATION
The Owner shall compensate the Architect as follows:
11.1 An Initial Payment of Five Hundred Dollars (S 500.00 ) shall be made upon execution of this Agreement and
credited to the Owner's account at final payment.
AIA DOCUMENT B151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - ALA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
expiration as noted below.
Electronic Format B151-1997
User Docurnent: LA — 3/8/2000. AIA License Number 113314, which expires on 5/31/2000 — Page #13
0 0
11.2 BASIC COMPENSATION
11.2.1 For Basic Services, as described in Article 2, and any other services included in Article 12 as part of Basic Services,
Basic Compensation shall be computed as follows:
(Insert basis of compensation, including stipulated sums, multiples or percentages, and identify phases to which particular methods of compensation apply, if
necessary.)
11.2.1.1 Schematic Design (Study & Preliminary Report)
A. Roofing consultant investigation, photos & report on
S 12.087.00
11.2.1.2 Design Development
A. —Roofing consultant details & recommended
manufacturer's specification for 3 projects
by Bridges & Co. International $11,088.00
B.—Design development plans, details, outline specifications
& statement of probable cost for 3 proiects by DCW Architects, Inc._$ 1,035.00
C.—Hazardous material (asbestos) tests for
3 vroiects by Professional Services Industries, Inc. $ 825.00
$12.948.00
11.2.1.3 Construction Documents for bidding & building permit
Plans, details. & specification by DCW Architects. Inc.
& updated statement of probable cost. $ 900.00
($25.935/267.844=.0968) TOTAL DESIGN PHASE S25.935.00
11.2.1.4 Bid Phase (based on one general contract)
A. —Roofing consultant bid form, unit price schedules by
Bridges & Co. International $ 325.00
T.—Bidding questions, addenda & evaluation of bids by
DCW Architects. Inc. $ 200.00
$ 525.00
11.2.1.5 Construction Phase (one general contract)
A. Periodic observation & reports of roofing work in progress
observation reports & review of certificate of payments
by DCW Architects. Inc.. $ 745.00
C._Inspection & certification of 2 Rroiects for insurance requirements.*$ 2.695.00 ( 673.75)
$10.540.00
($11,065 / 267,844 = .0413) TOTAL BID & CONSTRUCTION PHASE $11,065.00
TOTAL BASIC SERVICES S37.000.00
*Reduce by 25% if Sylvan Beach Pavilion is deleted.
11.2.2 Where compensation is based on a stipulated sum or percentage of Construction Cost, progress payments for Basic
Services in each phase shall total the following percentages of the total Basic Compensation payable:
ALA DOCUMENT B15I-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AIA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. This document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
ex7iration as noted below.
Electronic Format B151-1997
User Document: LA — 3/14/2000. AIA License Number 113314, which expires on 5/31/2000 — Page #14
0 •
Schematic Design Phase:
Design Development Phase:
Construction Documents Phase:
Bidding or Negotiation Phase:
Construction Phase:
Total Basic Compensation:
Thirty-three percent (- 3 %)
Thirty-five percent ( 35 %)
Two 8t one-half percent (2_5 %)
One 8t one-half percent (1_5 %)
Twenty-eight percent ( 28 o
one hundred percent (100%)
11.3 COMPENSATION FOR ADDITIONAL SERVICES
11.3.1 For Project Representation Beyond Basic Services, as described in Paragraph 3.2, compensation shall be
computed as follows:
Not applicable.
11.3.2 For Additional Services of the Architect, as described in Articles 3 and 12, other than (1) Additional Project
Representation, as described in Paragraph 3.2, and (2) services included in Article 12 as part of Basic Services, but excluding
services of consultants, compensation shall be computed as follows:
(Insert basis of compensation, including rates and multiples of Direct Personnel Expense for Principals and employees, and identify Principals and classify
employees, if required Idenefy specific services to which particular methods of compensation apply, if necessary.)
Architect Principal $41.32 DPE x 2.2 = 590.90 / hr
Architect. Project $32.23 DPE x 2.2 = $70.90 / hr
Grad. Architect CADD $21.70 DPE x 2.2 = $47.74 / hr
Clerical S 8.26 DPE x 2.2 = S 18.16 / hr
11.3.3 For Additional Services of Consultants, including additional structural, mechanical and electrical engineering
services and those provided under Subparagraph 3.4.19 or identified in Article 12 as part of Additional Services, a multiple of
one and one tenth ( 1.10 ) times the amounts billed to the Architect for such services.
(Identify specific types of consultants in Article 12, if required.)
11.4 REIMBURSABLE EXPENSES
For Reimbursable Expenses, as described in Paragraph 10.2, and any other items included in Article 12 as Reimbursable
Expenses, a multiple of one ( 1 ) times the expenses incurred by the Architect, the Architect's employees and consultants
directly related to the Project. Allowance: S 1,200.00
11.5 ADDITIONAL PROVISIONS
11.5.1 N the Basic Services covered by this Agreement have not been completed within three (3 )months of the date hereof,
through no fault of the Architect, extension of the Architect's services beyond that time shall be compensated as provided in
Subparagraphs 10.3.3 and 11.3.2.
11.5.2 Payments are due and payable fifteen ( 15 ) days from the date of the Architect's invoice. Amounts unpaid sixty ( 60 )
days after the invoice date shall bear interest at the rate entered below, or in the absence thereof at the legal rate prevailing from
time to time at the principal place of business of the Architect.
(Insert rate of interest agreed upon.)
Prime + 2%
(Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner's and
Architects principal places of business, the location of the Project and elsewhere may affect the validity of this provision. Specific legal advice should be
obtained with respect to deletions or modifications, and also regarding requirements such as written disclosures or waivers.)
11.5.3 The rates and multiples set forth for Additional Services shall be adjusted in accordance with the normal salary review
practices of the Architect.
ARTICLE 12 OTHER CONDITIONS OR SERVICES
(insert descriptions of other services, identlfyAdditional Services included within Basic Compensation and modifications to the payment and compensation terms
included in this Agreement)
12.1 Architect shall maintain the following minimum levels of insurance coverage:
AIA DOCUMENT 13151-ABBREVIATED OWNER -ARCHITECT AGREEMENT - 1997 EDITION - AlA - COPYRIGHT 1997 - THE AMERICAN INSTITUTE OF
ARCHITECT'S, 1735 NEW YORK AVENUE N.W., WASHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecvtiom This domanent was electronically produced with permission of the AIA and can be reproduced without violation until the date of
expiration as noted below.
Electronic Format B151-1997
At agate /Occurrence 1000 000 •
Auto Liability (hired / jon:owned $1,000,000
Professional liability 51,000,000 / 51,000.000
This Agreement entered into as of the day and year first written above.
City of La Porte. Texas n
OWNER (Signature)
r� i der (
(Printed name and title)
C 4 t-Mk)
DCW Architects. Inc.
z
CT ignamre)
Conrad G. Walton_ AIA_ Principal
(Printed name and title)
The Texas Board of Architectural Examiners;
P.O. Box 12337, Austin, Texas 78711;
Phone (512) 305-9000; has jurisdiction over
individuals licensed under the Architects Registration
Law, Article 249a VCTS.
AIA DOCUMENT B 15 1 -ABBREVI ATED OWNER :ARCHITECT AGREEMENT - 1997 EDITION - :VA - COPYRIGHT 1997 - T1iE .4-MERICAN INSTITUTE OF
ARCHITECTS, 1735 NEW YORK AVENM N.W., WA.SHINGTON, D.C. 20006-5292. WARNING: Unlicensed photocopying violates U.S. copyright laws and will
subject the violator to legal prosecution. Thiss document was electronically produced with permission of the AIA and can be reproduced without violation until the date of
expiration as noted below.
Electronic Format B151-1997
a
.�
;�
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
Requested By:
Report
Exhibits: 1.
Parks & Recreation
Resolution XX Ordinance
Ordinance 00-1j_J_ Approving and Authorizing a Joint Venture Agreement
between the City of La Porte and the Glen Meadows Section 4A
Community Improvement Association for Lighting at Glen Meadows
Park.
Joint Venture Agreement
SUMMARY & RECOMMENDATION
The City of La Porte received a request from the Glen Meadows Section 4A Community Improvement
Association to look at the possibility of providing lighting for Glen Meadows Park. The park is located in
the community and on several occasions in the past, joint venture agreements between the City and the
Association have been executed to provide capital improvements for the park and medians in the area.
The agreement calls for installation by a third party (HL&P) of eighteen (18) decorative park lights at
various locations around the park, using a portion of the City's streetlight allocation. The Association has
agreed to pay the additional cost required to get the decorative lighting (over the cost of the normal street
light), in the amount of Five Thousand Eight Hundred Fourteen Dollars ($5,814). Upon completion of the
installation by HL&P the City would assume responsibility for the cost of operation and maintenance of the
decorative lighting system for the expected life of the system. Cost of maintenance and operation is the
same as that of a Normal City streetlight or Fifteen Dollars and Sixty -One Cents ($15.61) per month for
each light. This rate can fluctuate due to changes in fuel and other costs incurred by HL&P. Funding for
maintenance and operations will come from the Joint Ventures account for the remainder of this fiscal year,
and then be incorporated into the Parks & Recreation Department normal operating budget for subsequent
years.
If approved, the lighting system will provide additional safety for residents who use the park regularly for
exercise after dark and also provide additional security to reduce vandalism and aberrant behavior in the
park after hours. The Association's willingness to participate in this venture is commendable in that they
are working with the City to upgrade a major recreational facility that is used primarily by their community.
Staff recommends approval of the proposed Joint Venture Agreement.
Action Required by Council:
Consider approval of Ordinance 00- which establishes a Joint Venture Agreement between the City
of La Porte and the Glen Meadows Section 4A Community Improvement Association to provide a
decorative lighting system for Glen Meadows Park.
Availability of Funds:
General Fund
XX Capital Improvement
N/A
Water/Wastewater
General Revenue Sharing
Account Number: 015-9892-675-1100 Funds Available: _ YES _ NO
Account Number: Funds Available: YES NO
Approved for City Council Agenda
G?J.", JC' -F, gA"- .--- 3- 22.
Robert T. Herrera Date
City Manager
ORDINANCE NO. 00- � 31-3
AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT BETWEEN
THE CITY OF LA PORTE AND THE GLEN MEADOWS SECTION 4A
COMMUNITY IMPROVEMENT ASSOCIATION REGARDING JOINT
PARTICIPATION IN INSTALLATION OF A DECORATIVE LIGHTING SYSTEM
FOR GLEN MEADOWS 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, Chapter 551, Texas Government Code; 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.
0
Section 3. This Ordinance shall be effective from and after its passage and
approval, and it is so ordered.
PASSED AND APPROVED, this 27TH day of March, 2000.
CITY OF LA PORTE
By: �Y ► �'
Norman L. Malone,
Mayor
ATTEST:
u`,bdc —
Martha Gillett,
City Secretary
APPROVED AS TO FORM:
Knox W. Askins,
City Attorney
AGREEMENT BETWEEN THE CITY OF LA PORTE
AND THE GLEN MEADOWS SECTION 4A
COMMUNITY IMPROVEMENT ASSOCIATION INCORPORATED
REGARDING JOINT VENTURE LIGHTING OF GLEN MEADOWS PARK
BECAUSE, the City of La Porte (the "City") is the owner and operator of Glen
Meadows Park as part of the parks and recreational facilities of the community; and
Because, the Glen Meadows Section 4A Community Improvement
Association (the "Association") has contributed funds in past years, which funds have been
matched by the City, toward the construction of various amenities and facilities at Glen
Meadows Park; and
Because, the City wishes to recognize and commend the funding that has
been provided by the Association;
NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That in
consideration of the mutual covenants, agreements and benefits to both parties, it is
agreed as follows:
The City will enter into a separate agreement with Reliant Energy/HL&P (HL&P) to install
and provide lighting for Glen Meadows Park. HL&P will install, own and maintain eighteen
(18) each, fluted, tapered gloss black painted Traditionaire poles at fourteen (14) foot
mounting height, equipped with 100 watt high pressure sodium Granville luminares, and
associated conductors. The City will utilize a portion of its six percent (6%) street light
allocation for this installation that will reduce the cost of the installed poles and luminares
by Nine Hundred Dollars ($900.00) for each pole and luminare installed. The resulting cost
of installation for the project will be Three Hundred Twenty-three Dollars ($323.00) for each
pole, luminare, associated conductor, and equipment; for a sub -total of Five Thousand
Eight Hundred Fourteen Dollars ($5,814.00). The actual value of the installation, including
the City/HL&P allocation is Twenty-two Thousand Fourteen Dollars ($22,014.00) . The City
will be billed by HL&P for operation and maintenance of the lights for each month of
operation in the amount of Fifteen Dollars and Eighteen Cents ($15.18) for each installed
light, for a total of Two Hundred Seventy-three Dollars and Twenty-four Cents ($273.24)
per month for the expected life of the installation. HL&P has reserved the right to adjust the
monthly operating and maintenance fees for fluctuations in fuel costs and other reasons
as deemed necessary.
HL&P will assume responsibility for routine maintenance of the light fixtures, poles and
associated conductor located on City property at Glen Meadows Park. It is agreed that an
Page 1 of 3
authorized representative of the City shall field inspect and approve the location of each
light to be installed. HL&P will identify each light numerically so as to increase the
efficiency of tracking and maintenance.
III.
The Association agrees to participate in the cost of installation of the said lights at Glen
Meadows Park in the following method. The Association agrees to pay the reduced cost
of installation for the project in the amount of Five Thousand Eight Hundred Fourteen
Dollars ($5,814). The City will assume responsibility for payment of the operation and
maintenance costs for the lighting. Operations and maintenance costs will be paid using
Joint Venture capital fund for the remainder of the current fiscal year. Subsequent costs
for maintenance and operation will be funded through the Parks & Recreation Department
operating budget. With the payment of the installation costs as delineated herein, the
Association's financial obligation will be at an end for this project.
IV.
The Association shall not assign, transfer, convey, sublet or otherwise dispose of the
Agreement, or any part, to any person, partnership, company, corporation, club or
association without prior written consent of the City of La Porte.
V.
This instrument contains the entire Agreement between the parties relating to the rights
granted in the agreement and the obligations assumed as a part of the Agreement. Any
representations or modifications concerning this agreement shall have no force or effect
unless modified in writing, and signed by each party to the Agreement.
VI.
This Agreement shall be in force for a period of one (1) year beginning with the date of
completion of the project installation. During the term of this Agreement, the Association
and the City may enter into separate Agreements regarding future capitai improvement
projects that may be contemplated in the City and the Association.
VII.
If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or
clause, of this Agreement shall, for any reason, not be legally or factually valid, such
invalidity shall not affect the remaining portions of this Agreement.
Page 2 of 3
0
•
IN TESTIMONY WHEREOF, this instrument has been executed in duplicate, each to have
the effect of an original as follows:
(A) It has been executed on behalf of the City on the day of
AC -,L.�:.��- , 2000, by its City Manager
and attested by its City Secretary, pursuant to an Ordinance of the City
Council of the City of La Porte, authorizing such execution; and
(B) It has been executed on behalf of the Association on the day of
, 2000, by its President and attested by its
Secretary, pursuant to authorization from the Board of Directors of the Glen
Meadows Section 4A Community Improvement Association Incorporated,
authorizing such execution.
ATTEST:
Martha Gillett, City Secretary
TEST:
I • -1
Association Secretary
APPROVED AS TO FORM:
Knox W. Askins, City Attorney
CITY OF LA PORTE
By:
Robert T. Herrera, City Manager
GLEN MEADOWS SECTION 4A
COMMUNITY IMPROVEMENT
ASSOCIATION INCORPORATED
By:C.�
Ge rge Watkins, President
Page 3 of 3
FULBRIGHT 8 JAWORSKI TELI&3-651-5246 Jul 13,0 8:46 No.001 P.02
GLEN MEADOWS SECTION 4A COMMUNITY ASSOCIATION, INC.
C/O 5237 GLENPARK DRIVE
LA FORTE. TEXAS 7757I
July 18, 1998
Mr. Stephen Barr, Director Via Facsimile 2811470-1361
City of La Porte Parks & Recreation
P.O. Box 1115
LaPorte, Texas 77572-1116
Dear Mr. Barr:
Approval is requested to install a fence in Glen Meadows Park on Valley Brook
in La Porte, Texas. The cost of the fence is $15,529.00. The fence will be 1,040 feet
long and will run across the park frontage on Valley Brook. A copy of the estimate
from Atlas Fence Co,, Inc. is attached which lists the specifications. The spacing
between the bars will be 5-1/2". The fence will be constructed of galvanized steel.
There will be three pass-thru openings in the fence. I have also attached a copy of
Atlas Fence Co., Inc.'s insurance policy. Our secretary/treasure's attestion is also
enclosed,
By copy of this letter we request matching funds for this project from the City
of La Porte.
Additionally, we are considering the following future projects with the City of La
Porte for Glen Meadows Park: trash receptacles, park benches, a basketball court, park
lighting, and completin* g irrigation,
Thank you for your attention to this matter. Please feel free to contact me at
(713) 651-7709 or (281) 470-7540 with any comments or questions.
Sincerely,
GLEN MEADOWS SECTION 4A
COMMUNITY ASSOCIATION, INC.
'Pu 'A e4�
heila Cook, President
5484(7-99)
EASEMENT
STATE OF TEXAS }
Job 30614390A
Map 6154C
S/C MAG PARK
KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF HARRIS }
THAT, City of La Porte, Texas, herein called Grantor, whether one or more, for and
in consideration of the sum of ONE DOLLAR ($1.00) CASH to Grantor paid by Reliant
Energy, Incorporated, herein called Grantee, whose principal address is P. 0. Box 1700,
Houston, Texas 77251, has GRANTED, SOLD AND CONVEYED and by these presents,
does GRANT, SELL AND CONVEY unto said Grantee, its successors and assigns, an
easement for electric distribution facilities and/or natural gas facilities (consisting of all
necessary and desirable equipment and appurtenances), located on, under, over, and
across the following described lands, to wit:
That certain 8.1275—acre tract or parcel of land being all of Reserve "A" of
Glen Meadows, Section Five, a subdivision out of the W. M. Jones League,
Abstract 482, in Harris County, Texas, according to the map or plat thereof
recorded in Film Code 358012 of the Map Records of said County and State,
being that same property described in City Ordinance No. 95-2077, dated
November 13, 1995.
The easements herein granted are five ('5) feet wide at the following
locations:
1. Shown by the crosshatched areas on Sketch Nos. 00-352 and 00-352A,
revised August 9, 2000, hereto attached and made parts hereof.
2. Shown by the dot -dash symbols on said attached Sketch Nos. 00352 and
00352A.
Grantee shall also have rights of ingress and egress to and from said easement,
together with reasonable working space, for the purposes of erecting, installing, operating,
11CORP4%SYSZUSERSV003602100CWAC%30614390A. EAS. DOC
6h0100 1
•
5484(7-99) Job 30614390A
Map 6154C
S/C MAG PARK
maintaining, replacing, inspecting, and removing said electric distribution facilities and/or
natural gas facilities, together with the additional right to remove from said easement and
land adjoining thereto, all bushes, trees and parts thereof, or other structures which, in the
opinion of Grantee, endanger or may interfere with the efficiency, safe and proper
operation, and maintenance of said electric distribution facilities and/or natural gas
facilities.
This instrument grants Reliant Energy, Incorporated certain easement rights as
more fully described herein. Grantor may GRANT, SELL AND CONVEY unto Grantee
easement rights for electrical facilities only, or for natural gas facilities only, or for both
electrical and natural gas facilities. Please indicate in the spaces provided below which
easement rights, if any, are being conveyed to Grantee. If Grantor signs this instrument
and does not check either space provided, it is understood that Grantor intends to convey
unto Grantee rights for both electrical and natural gas facilities.
Electrical facilities
Natural gas facilities
TO HAVE AND TO HOLD the above described easement, together with all and
singular the rights and appurtenances thereto in anywise belonging, unto Grantee, its
successors or assigns, forever, and Grantor does hereby bind itself and its successors,
heirs, assigns, and legal representatives, to warrant and forever defend all and singular
the above described easement and rights unto said Grantee, its successors and assigns,
against every person whomsoever lawfully claiming or to claim the same or any part
thereof.
GADOC1MA030614390A. EAS. DOC
1910100 2
5484(7-99) Job 30614390A
Map 6154C
S/C MAG PARK
EXECUTED this day of �� u�i Q &YI r,�er , 20 0 0 .
ATTEST: CITY OF LA P0RTE, TEXAS
B 0 - --(q
City Secretary
M ffC-1k44P _ e7;) I-e 4
(Name typed or printed)
STATE OF TEXAS
COUNTY OF
BY: (i A,,s� T • �V-eMew
City Manager
L,T lT 1 ,
(Name typed or printed)
This instrument was acknowledged before me on 20 by
12u I)Cr'+ City Manager of the City of La Porte, Texas, on
behalf of said city.
RJANIS H. GOULDER
MY COMMISSION EXPIRES
=•':f�'...:w= December27.2003
3
AFTER RECORDING RETURN TO:
SURVEYING & MAPPING
RELIANT ENERGY HL&P
P. O. BOX 1700
HOUSTON, TX 77251-1700
G:ID0CIMAC%3W 1 d390A. EAS. DOC
8110100 3
yotary's Sign/atur/e/
(Name typed or printed)
Commission Expires: 12 - Z 7-6.3
.1: JOB NO.3061
50 0 50 100 150 EASEMENT — UNOBSTRUCTED LAST PLOT DATE:8/09/00
" r— —1 COUNTY: HARRIS DRAWN BY: BGB
SCALE IN FEET DATE: JULY 12, 2000 MAP NO: 6154 C
NOTE: THE EXTERIORS OF ALL EASEMENTS ARE TO „
INTERSECT WITH THE EXTERIORS OF ALL ADJOINING SCALE: 1 =100' JOB NO: 30614390
EASEMENTS OR WITH ADJOINING PROPERTY LINES. FILE NO. — BOOK: 9 DISK: 527 CHECKED BY: T.M.C.
RELIANT ENERGY HL&P
a division of: RELIANT ENERGY INCORPORATED
SURVEYING & MAPPING SECTION
P.O. Box 1700 Houston, TX 77251-1700
(713) 207-1111
SKETCH NO. 00-352
CURVE RADIUS DELTA ARC TANGENT BEARING CHORD
DETAIL "A" ` C1 370.00 28'41'21" 185.27 94.62 N 36'41'57" E 183.34
N. T.S.
j N 88'50'29" W 518.67'
( L8
= L9 1
r _ <
<s 5'
EASEMENT
} - J r � GyS�GZ1 g6A
LINE
DISTANCg
BEARING
L9
439.61
S
88' 14 47" E
L10
148.07'
S
83'40'15" E
L11
64.32'
S
53'45'06" E
L12
31.78'
S
43'14'44" E
L13
31.38'
S
32'54'42" E
L14
5.00'
S
67*24'15" E
L15
54.47'
S
22'35'45" W
L16
71.08'
S
22'35'45" W
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69.77'
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S/D Line (Bearing Basis: FC# 358012) "B"
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Lt 5.00' N 8535 00" E
57' L2 35.03' N 02'19'14" W
EASEMENT L3 70.37' N 05'22'58" W
L4 80.29' N 00'01'23" E
L5 18.59' N 29' 15'33" W 5
L6 14.34' N 04'25'00" W EASEMENT
L7 4.93' N 04'25'00" W
L8 3.52' N 88'50'29" W
Lot 19 Lot 20 ( Lot 21 Lot 22 Lot 23
CITY OF LA PORTE
ORDINANCE NO. 95-2077
L1 RESERVE "A" �p
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CITY OF LA PORTE
ORDINANCE NO. 95-2077
RESERVE "A"
8.1275 AC.
GLEN MEAD 0 WS
SECTION FIVE
FC# 358012
5' EASEMENT
LINE DISTANCE BEARING
L21 78.64' N 02'51'05" W
L22 25.22' N 02'51'05" W
L23 5.00' S 87'08'55" W
L24 17.14' S 26'47'05" W
L25 45.74' S 44'11'34" W
L26 83.44' S 65'46'15" W
L27 2.35' S 02'52'30" E
Sheet 2 of 2
CURVE RADIUS DELTA ARC TANGENT BEARING CHORD
C2 430.00 54'34'57" 409.64 221.86 S 24'25'21" W 394.32
= w I
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Lot 2 Lot 3 Lot s
GLEN MEAD 0 WS
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J Fed.
SEC. ONE,
VOL.254, PG. 25, M.R.
3/4 I.R.
Blk
8
50 0 50 100 - 150
SCALE IN FEET
NOTE: THE EXTERIORS OF ALL EASEMENTS ARE TO
INTERSECT WITH THE EXTERIORS OF ALL ADJOINING
EASEMENTS OR WITH ADJOINING PROPERTY LINES.
REV.1: JOB NO.30614390A BY: BGB DATE: 8 09 00 1 REV.2: JOB NO. BY. DATE:
EASEMENT — UNOBSTRUCTED LAST PLOT DATE:8/09/00 RELIANT ENERGY HL&P
COUNTY: HARRIS DRAWN BY: BGB a division of: RELIANT ENERGY INCORPORATED
DATE: JULY 12. 2000 MAP NO: 6154 C SURVEYING & MAPPING SECTION
SCALE' 1 " = 100, JOB NO. 30614390 P.O. Box 1700 Houston, TX 77251-1700
' (713) 207-111 L
FILE N0. — BOOK: 9 DISK: 527 CHECKED BY: T.M.C. SKETCH NO. 00-352A
Z4
•
REQUEST FOR CITY
Agenda Date Requested:
Requested By: Stephen
CIL AGENDA ITEM
: Parks & Recreation
Report Resolution 2% Ordinance
Exhibits: 1. Ordinance 00-JM� Approving and Authorizing an Agreement between
the City of La Porte and Reliant Energy/HL&P for installation of a
Decorative Lighting System at Glen Meadows Park.
2. Agreement
SUMMARY & RECOMMENDATION
The City of La Porte, working in conjunction with the Glen Meadows Section 4A Community Improvement
Association and Reliant Energy/HL&P have developed a decorative lighting system for installation at Glen
Meadows Park. This agreement outlines the responsibilities of the City and HL&P regarding the
installation, operation and maintenance of the system. The agreement is needed because this is the first
time that the City has taken advantage of rule changes by HL&P which allows use of tariff street light
allocations for park lighting.
The agreement calls for installation and ownership by HL&P of eighteen (18) decorative park lights at
various locations around the park, using a portion of the City's streetlight allocation. The Association has
agreed to pay the additional cost required to get the decorative lighting (over the cost of the normal street
light), in the amount of Five Thousand Eight Hundred Fourteen Dollars ($5,814). Upon completion of the
installation by HL&P the City would assume responsibility for the cost of operation and maintenance of the
decorative lighting system for the expected life of the system. Cost of maintenance and operation is the
same as that of a Normal City streetlight or Fifteen Dollars and Sixty -One Cents ($15.61) per month for
each light. This rate can fluctuate due to changes in fuel and other costs incurred by HL&P.
If approved, the lighting system will provide additional safety for residents who use the park regularly for
exercise after dark and also provide additional security to reduce vandalism and aberrant behavior in the
park after hours.
Staff recommends approval of the proposed Agreement.
Action Required by Council:
Consider approval of Ordinance 00- a which establishes an Agreement between the City of La Porte
and the Reliant Energy/HL&P to provide a decorative lighting system for Glen Meadows Park.
Availability of Funds:
General Fund
XX Capital Improvement
N/A
Water/Wastewater
General Revenue Sharing
Account Number: 015-9892-675-1100 Funds Available: _ YES _ NO
Account Number: . Funds Available: YES NO
Approved for City Council Agenda
Robert T. Herrera
City Manager
Date
ORDINANCE NO. 00- o 314
AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT BETWEEN
THE CITY OF LA PORTE AND RELIANT ENERGY/ HL&P REGARDING IN
INSTALLATION OF A DECORATIVE LIGHTING SYSTEM FOR GLEN MEADOWS
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, Chapter 551, Texas Government Code; 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.
Section 3. This Ordinance shall be effective from and after its passage and
approval, and it is so ordered.
PASSED AND APPROVED, this 27TH day of March, 2000.
CITY OF LA PORTE
By:
Norman L. Malone,
Mayor
ATTEST:
-
Martha Gillett,
City Secretary
APPROVED AS TO FORM:
Knox W. Askins,
City Attorney
STATE OF TEXAS
COUNTY OF HARRIS
DECORATIVE LIGHTING AGREEMENT
CITY OF LA PORTE
GLEN MEADOWS PARK
THIS AGREEMENT, made and entered into this the day of March , 2000 by
and between the City of La Porte, a municipal corporation, hereinafter referred to as "City",
and Reliant Energy Houston Lighting and Power, a Texas utility corporation, whose
address is P.O. Box 210, Baytown, Texas 77522 , hereinafter referred to as "HL&P".
WITNESSETH
WHEREAS, the City owns and operates Glen Meadows Park for the purpose of
providing recreational amenities to the citizens of the City of La Porte; and
WHEREAS, the City wishes to provide lighting for the conduct of such recreational
activities as may be undertaken at said park; and
WHEREAS, HL&P has indicated its willingness to provide lighting to assist in the
conduct of recreation activities by the users of Glen Meadows Park.
NOW THEREFORE, for and in consideration of the terms, covenants, and
conditions hereinafter set forth, the parties agree as follows:
1. HL&P agrees to install, own, and maintain a decorative lighting system at Glen
Meadows Park, 801 Valley Brook, La Porte, Texas. The decorative lighting
system will consist of eighteen (18) each, fourteen foot (14') mounting height,
sixteen (16) fluted, tapered, gloss black painted poles, and one hundred (100)
watt high pressure sodium Granville luminares, associated conductors, and
switching equipment. Installation shall be accomplished for an installation rate
of Three Hundred Twenty Three Dollars ($323) per unit. Total cost of installation
shall be Five Thousand Eight Hundred Fourteen Dollars ($5,814). Payment in
the amount of the above total will be remitted to HL&P prior to HL&P purchasing
the materials required to begin construction.
Decorative Lighting Agreement, page 1 of 7
2. The City understands that there is a six to eight (6-8) week manufacturing lead
time for delivery of the decorative lights. HL&P, if given written permission, may
install the necessary conductors prior to delivery of poles and luminaires. HL&P
estimates a construction completion time of three (3) weeks after the delivery of
materials from the manufacturer, provided the conductors are installed in
advance of such delivery. The City also understands that this construction
schedule is dependent upon no occurrence of unforeseen or unfortunate
circumstances that may require HL&P to reallocate and/or redirect manpower
and/or equipment.
3. The City acknowledges that installation and maintenance of the decorative
lighting system may temporarily interfere with traffic operations. HL&P agrees
that it will make an effort to perform the required construction with a minimum
of interference with such traffic operations. The City agrees to reasonably assist
in traffic management if necessary to maintain acceptable traffic operations.
4. It is agreed that an authorized representative of the City shall field inspect and
approve the location of each light to be installed. The City shall provide written
exhibit of this approval to the Lighting Design and Services Department, with the
signature and job title of the person authorized to make such inspection and
approval, no later than seven (7) days prior to the start of construction. The city
further agrees that after such inspection and approval, all costs associated with
the relocation or removal of a light and all facilities inclusive to its operation shall
be borne solely by the City. The City should pay special attention to the
placement of decorative lights in drainage areas and atop and adjacent to
underground drainage culverts. Decorative lights should not be installed in
locations that will create blockage of water flow and where washout will occur.
HL&P shall consider the issuance of the approval for the decorative light
locations along with the payment of the contribution toward construction as the
approval to proceed with construction and installation of the decorative lighting
system.
5. It is agreed that each Decorative Light will be identified numerically so as to
increase the efficiency of tracking and maintenance. It is also understood that
the identification numbers will be installed on the roadway side of each
decorative pole.
6. During the lighting system installation and subsequent maintenance operations
relative to the lighting system, HL&P agrees to consider whether or not the soil
Decorative Lighting Agreement, page 2 of 7
is too wet to commence installation or repairs. At times during and after
inclement weather when the risk of damage to turf areas are high, HL&P may
delay initiation of installation or repair work until conditions are more suitable and
damage is less likely to occur. The City will ultimately be responsible for repair
of any turf damage that may occur as a result of HL&P trucks on site.
7. HL&P will replace burned out lamps and/or make maintenance repairs during
regular working hours at its own cost and expense and will normally have the
lighting service restored within forty-eight (48) hours after notification of failure
by the City. Lights furnished hereunder shall operate under normal conditions
from approximately thirty minutes after sunset to approximately thirty minutes
before sunrise every night in the year and the total time of operations will be
approximately four thousand (4,000) hours each year for each light furnished.
HL&P will commit to and assume the costs for a paint cycle of every fifteen (15)
years. HL&P will use the same color of available paint at the time of re -painting.
8. The City shall be responsible for all costs of electricity under rate schedule Street
and Protective Lighting Service (SPL), or any succeeding rate schedule as may
be approved by the appropriate regulatory agency from time to time, used or in
connection with the operation of the Decorative Lighting installed. The Tariff for
electrical service, including without limitations any applicable rate schedule and
agreements, shall take precedence over this agreement. Attached hereto is a
copy of the current SPL schedule, referenced as Exhibit "A". The current
applicable Monthly Rate per Lamp, including adjustment and fuel charge, for the
Decorative Lighting System contemplated at Glen Meadows Park and described
herein for High Pressure Sodium Vapor lighting, 9,500 Lumens, Schedule D, is
Fifteen Dollars and Sixty-six Cents ($15.61) for each light installed in the
contemplated system.
9. The City shall have the right, at its own expense, to hang decorative flags and
banners on the decorative lighting poles, provided the City meets all
requirements as set forth in the Banner Agreement attached hereto as Exhibit
"B". Decorations other than flags or banners shall receive approval from the
Lighting Design and Service Department prior to installation Under no
circumstances will HL&P or the City approve the installation of signage that is
necessary for safe traffic operation, including but not limited to STOP and YIELD
signs. The City shall be responsible for the costs of repairing any damages to
the Decorative Lights resulting directly or indirectly from such signage, as well
as the removal of such signage from the decorative lighting poles.
Decorative Lighting Agreement, page 3 of 7
10. 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. If any section, sentence, phrase, or clause of this agreement shall, for
any reason, be held invalid or inapplicable, such invalidity or inapplicability shall
not affect the remaining portions of this agreement.
Decorative Lighting Agreement, page 4 of 7
0
•
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies on the date first appearing above.
ATTEST:
LIJ A WrA-, )dJ IN] —
Ma ha Gillett, City Secretary
APPROVED:
Knox W. Askins, City Attorney
"CITY"
CITY OF LA PORTE, a municipal
corporation
BY:�C�..�•..k 1 �e,ti��
Robert T. Herrera, City Manager
"HL&P"
Reliant Energy/Houston Lighting & Power
Carlton Porte, Supervisor,
Lighting Design & Services
Decorative Lighting Agreement, page 5 of 7
DECORATIVE LIGHTING AGREEMENT
EXHIBIT "A"
Current Street and Protective Lighting Agreement
Decorative Lighting Agreement, page 6 of 7
Section IV -Rate Schedules
Street and Protective Lighting Service-SPL
HOUSTON LIGHTING & POWER COMPANY
HL&P 82
AVAILABILITY
•
Sheet No. D10
Page 1 of 3
STREET AND PROTECTIVE LIGHTING SERVICE-SPL
In areas designated by Company where facilities of adequate capacity
and suitable voltage are adjacent to the lamps to be served.
APPLICATION
Applicable to the requirements of cities, governmental agencies. real
estate developers and other groups requesting the installation of
street and protective lighting.
INSTALLATION AND MAINTENANCE OF FACILITIES
Company will install, own and maintain the installation served
hereunder. Company will replace burned out lamps and/or make
maintenance repairs during regular working hours at its own cost and
expense and will normally have the lighting service restored within
48 hours after notification by the Customer. Lights furnished
hereunder shall operate under normal conditions from approximately
thirty minutes after sunset to approximately thirty minutes before
sunrise every night in the year and the total time of operations will
be approximately four thousand (4.000) hours each year for each light
furnished.
MONTHLY RATE
Monthly Rate Per Lamp Plus Adjustment
and Fuel Charge Below
Schedule Schedule Schedule Schedule Schedule Monthly
A B C D E KWH
Lamp Type
Mercury Vapor
60.000 Lumen 5 9.32 $24.26 $16-.47 $27.35 $18.22 365
20,000
Lumen
$
5.44
$18.75
$12.32
$23.20
$13.88
150
7,500
Lumen
$
3.84
N.A.
N.A.
$18.67
$10.99
69
3.300
Lumen
$
3.74
N.A.
N.A.
$14.49
N.A.
41
Additional mercury vapor lighting will not be installed after
December 31. 1982. Existing mercury vapor installations will be
converted to sodium vapor installations as required during the normal
course of maintenance. Mercury vapor installations with 3.300. 7.500.
and 20.000 lumen lamps will be converted to 9.500. 16.000. or 25.500
lumen high pressure sodium lamps. respectively. when individual lamps
burn out at no up front cost to the customer.
Revision Number: 16 th Effective: 9-13-96
Section IV -Rate Schedules
Sheet
No. D10
Street and Protective
Lighting
Service-SPL
Page 2 of 3
HOUSTON LIGHTING & POWER COMPANY
1 HL&P 82
Monthly
Rate Per Lamp Plus Adjustment
and Fuel Charge Below
Schedule
Schedule Schedule
Schedule
Schedule
Month TY_
A
B
C
D
E
KWH
Lamp Type
High Pressure
Sodium
Vapor
50.000 Lumen
$ 9.32
$24.26
$16.47
$27.35
$18.22
160
25.500 Lumen
$ 5.44
$18.75
$12.32
$23.20
$13.88
106
16.000 Lumen
$ 3.84
$17.11
$11.37
$18.67
$10.99
58
�`9,500 Lumen
$ 3.84
N.A.
N.A.
$ 9.38
38
5.800 Lumen
$ 3.77
N.A.
N.A.
$14.00
N.A.
29
Metal Halide
36,000 Lumen
$11.15
N.A.
N.A.
$28.12
$19.59
159
20,500 Lumen
$10.92
N.A.
N.A.
$27.90
$19.37
96
7.800 Lumen
$12.34
N.A.
N.A.
$27.36
$20.78
40
Schedule A - Applicable to one or more lamps mounted on existing
distribution poles and served by overhead conductors. .
Schedule B - Applicable to single lamps mounted on ornamental standards
and served by overhead conductors. Limited to existing
installations.
Schedule C - Applicable to twin lamps mounted on ornamental standards
and served by overhead conductors. Limited to existing
installations.
Schedule D - Applicable to single lamps mounted on ornamental standards
and served by underground conductors. or decorative
residential streetlights.
Schedule E - Applicable to twin lamps mounted on ornamental standards
and served by underground conductors.
LA,
Revision Number: 16 th Effective: 9-13-96
•
Section IV -Rate Schedules Sheet No. D10
Street and Protective Lighting Service-SPL Page 3 of 3
HOUSTON LIGHTING & POWER COMPANY
HL&P 82
An additional $1.25 per lamp is charged for mercury-vapor. sodium-vapor.
and metal halide lamps with a break -away base.
Customers requiring the installation of a wood pole for High Pressure
Sodium or Metal Halide service under Schedule A. have the option of
paying for the cost of the pole up -front on a lump sum basis, as set
forth in the Company's Service Extension Policy. or of paying an
additional $6.51 per month.
Adjustment - Plus an amount determined in accordance with Rider
PCRF.
Fuel Charge - Plus an amount determined in accordance with Rider
FC.
PAYMENT
Bills are due when rendered. A bill for lighting service is
delinquent if payment is not received by the Past Due Date shown on
the Lighting Service Bill. The Past Due Date will not be less than
sixteen (16) days from the date the bill is mailed to Customer. A
one-time late payment charge of 3% of the entire bill exclusive of
sales tax will be assessed if the total amount due is not received on
or before the Past Due Date.
CONTRACT PERIOD
Open order. However. the Company may require a written contract
depending upon special circumstances.
NOTICE
Lighting Service furnished under this rate schedule is subject to
Company's Terms and Conditions for the Sale of Lighting Service.
Sheet No. E5. and applicable Service Policies listed in HL&P's
approved Tariff for Electric Service.
Revision Number: 16 th Effective: 9-13-96
Section IV -Rate Schedules Sheet No. D11
Miscellaneous Lighting Service - MLS Page 1 of 3
HOUSTON LIGHTING & POWER COMPANY
HL&P 7547
MISCELLANEOUS LIGHTING SERVICE - MLS
AVAILABILITY
In areas designated by Company with suitable locations and where
facilities of adequate capacity and suitable voltage are adjacent to
the lamps to be served.
APPLICATION
To any customer where suitable conditions allow, for unmetered
lighting service supplied exclusively to one or more of the lamp
types listed below operating automatically every night from dusk to
dawn. The obligations of the Customer shall commence on the date
that service under this tariff begins.
INSTALLATION AND MAINTENANCE OF FACILITIES
Company will install, own and maintain the lighting installation
served hereunder. Company will replace burned out lamps and/or make
maintenance repairs during regular working hours at Company's
expense, but with no adjustment of payments hereunder due to outage.
Company, because of the location of the lights served under this
schedule, will not make special trips to restore this lighting
service but will normally have the lighting service restored within
72 hours after notification by the Customer.
The lighting fixture will be installed on an existing distribution
pole and service will be supplied from an existing overhead secondary
conductor on the pole. Any additional construction required to
provide such service will be owned and maintained by the Company and
will be installed at the Customer's expense, separate from the
Monthly Bill below.
MONTHLY BILL
The monthly bill for each lighting unit shall be the sum of the
applicable Monthly Rate(s) under (1)(a) below plus the Fuel Charge
under (1)(b) below plus the applicable Adjustments stated in (2)
below.
(1) Rate
(a) Monthly Rate
LUMEN MONTHLY MONTHLY
TYPE OF LAMP RATING RATE KWH
Floodlight/Directional Lighting
High
Pressure Sodium 16,000
$11.81
61
High
Pressure Sodium 27,500
$15.15
105
High
Pressure Sodium 50,000
$18.88
158
Revision
Number: Original
Effective:
1-1-95
Section IV -Rate Schedules
Sheet No. D11
Miscellaneous Lighting Service - MLS
Page 2 of 3
HOUSTON LIGHTING & POWER COMPANY
HL&P 7547
LUNEN
MONTHLY
MONTHLY
TYPE OF LAMP
RATING
RATE
KWH
Roadway/General Lighting
High Pressure Sodium
16,000
$10.52
61
Guard Lighting
High Pressure Sodium
9,500
$ 7.82
40
Mercury Vapor
7,500
$ 8.07
72
An additional monthly
rate of
$2.60 where
a span of
secondary was installed
exclusively
for Miscellaneous
Lighting Service and Customer did
not reimburse
Company for
construction cost.
An additional monthly rate of $1.05 per Guard Lighting lamp
where a pole was installed exclusively for Lighting Service
and Customer did not reimburse Company for construction
costs. (Limited to existing installations.)
(b) Fuel Charge: An amount determined in accordance with
Rider FC.
(2) Adjustments
(a) Plus an amount determined in accordance with Rider PCRF.
(b) For municipal accounts receiving service within the
incorporated limits of such municipality which imposes a
municipal franchise fee upon the revenues received by
Company within that municipality and who have signed an
appropriate Franchise.. Agreement, such.account will receive
a credit equal to the amount of franchise fees included in
base charges for each account taking service under this
Rate Schedule.
PAYMENT
Bills are due when rendered. A bill for lighting service is
delinquent if payment is not received by the Past Due Date shown on
the Lighting Service Bill. The Past Due Date will not be less than
sixteen (16) days from the date the bill is mailed to Customer. A
one-time late payment charge of 3% of the entire bill exclusive of
sales tax will be assessed if the total amount due is not received on
or before the Past Due Date.
Revision Number: Original Effective: 1-1-95
Section IV -Rate Schedules
Miscellaneous Lighting Service - MLS
HOUSTON LIGHTING & POWER COMPANY
HL&P 7547
CONTRACT PERIOD
Open order.
NOTICE
•
Sheet No. D11
Page 3 of 3
Lighting Service furnished under this rate schedule is subject to
Company's Terms and Conditions for the Sale of Lighting Service,
Sheet No. E5, and applicable Service Policies listed in HL&P's
approved Tariff for Electric Service.
Revision Number: Original Effective: 1-1-95
•
DECORATIVE LIGHTING AGREEMENT
EXHIBIT "B"
Banner Agreement
Decorative Lighting Agreement, page 7 of 7
Banner Agreement
This Agreement is made and effective as of the day of , 2000 by and between
Reliant Energy HL&P (RE HL&P) and
RECITALS
WHEREAS, and RE HL&P wish to enter into this Agreement which
will govern the installation of Banners on RE HL&P street light standards:
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and intending to be legally bound, the parties hereto consent and agree as follows:
Installation of Banners:
may arrange
installation of up to two banners (the Banners) on each street light standard (the Standards) owned by
RE HL&P according to the following options. Not all poles provided by RE HL&P are banner rated nor do
will all poles support two banners. Banner installation locations must be reviewed and approved on a per
pole basis. Governing agencies having control of the rights of way in which banners are requested to be
installed must state their approval of such installations in writing to
RE HL&P Lighting Design and Services prior to the execution of this agreement.
Option I — Single Banner Installation
The Banners will be secured by arms affixed to the Standard by bolted galvanized or stainless steel
pressure plates and associated hardware made of the same. Drilling or tapping of holes is not allowed.
Neither the Banner nor any related hardware shall be affixed to the street light arm of the Standards. The
maximum size of each banner will be two feet in horizontal width and four feet in vertical length. The
banners will be designed with two permanent attachments at the top, or sleeved along the entire top
horizontal width, and two breakaway attachments at the bottom corners of each banner. Bottom attachments
will be designed to breakaway at a wind load of 50 lbs. total. The banner corner lowest and farthest from the
pole may be allowed to wave freely unattached. The Banners will maintain a minimum clearance over the
center line or any road or driveway in accordance with the national Electrical Safety Code or local ordinance
•
•
with a minimum 16 foot clearance. The Banners will maintain a minimum nine feet of clearance over
sidewalks. Necessary clearance will also be maintained with respect to traffic signals and other equipment
installed on the Standards. Stamped engineered drawings of breakaway detail must be approved by RE
HL&P prior to final execution of this agreement by RE HL&P.
RE HL&P with five -business days advance notice of new Banner installations.
Option 2 — Dual Banner Installation
shall provide
The Banners will be secured by arms affixed to the Standard by bolted galvanized or stainless steel
pressure plates and associated hardware made of the same. Drilling or tapping of holes is not allowed.
Neither the Banner nor any related hardware shall be affixed to the street light arm of the Standards The
maximum size of each banner will be two feet in horizontal width and four feet in vertical length. The
banners will be designed with two permanent attachments at the top, or sleeved along the entire top
horizontal width, and two breakaway attachments at the bottom corners of each banner. Bottom attachments
will be designed to breakaway at a wind load of 50 lbs. total. The banner corners lowest and farthest from
the pole may be allowed to wave freely unattached. The Banners will maintain a minimum clearance over the
center line or any road or driveway in accordance with the national Electrical Safety Code or local ordinance
with a minimum 16 foot clearance. The Banners will maintain a minimum nine feet of clearance over
sidewalks. Necessary clearance will also be maintained with respect to traffic signals and other equipment
installed on the Standards. Stamped engineered drawings of breakaway detail to be approved by RE HL&P
prior to .final execution of this agreement by RE HL&P.
shall provide RE HL&P with five -business days advance notice of new
Banner installations.
Review of Banner Design and Specifications:
Agrees that a sample of the Banners will be submitted to and
reviewed by RE HL&P prior to installation. Banners installed upon RE HL&P poles must not be political or
N
commercial in design or content.
Location of Banners: The Banners shall be installed only upon standards located within the
area designated by the governing agencies and indicated on the attached map layout. Each location of
installation will be identified by specific streetlight number by the requesting party and approved for banner
installation by RE HL&P Lighting Design and Services.
4. Removal of Banners: If the Banners are not installed in accordance with this Agreement, or
if RE HL&P determines, in its sole discretion, that the Banners are unsafe,
HL&P to do so. If
will remove the Banners within 24 hours of being notified by RE
fails to remove the Banners within 24 hours
of such notice, RE HL&P may remove the Banners without liability to
In the event RE HL&P determines that the Banners are
unsafe due to the issuance by the National Weather Service of a hurricane warning encompassing the
Designated Banner Area, then RE HL&P may immediately remove the Banners without prior notice to
Should RE HL&P remove any Banners under the provision of
this paragraph, agrees to promptly reimburse RE HL&P for
the actual cost of such removal.
5. Indemnification: The customer agrees to protect, defend, indemnify and hold RE HL&P, its
corporate affiliates, and their respective officers, directors, employees and agents, free and harmless from and
against any and all such claims, demands, causes of action, suits or other litigation (including all costs
thereof and attorney fees) of every kind and character arising in favor of the customer or any third party
(including, but no limited to, personnel furnished by the customer or its suppliers and subcontractors of any
tier) on account of bodily injury, death or damage to or loss of property in any way occurring, incident to,
arising out of or in connection with the installation, maintenance or presence of flags and banners on the
non-standard street lights, where, and to the proportionate extent that such damage or injury is caused by the
sole, joint, concurrent, contributinnfor comparative negligence or fault of the cuter, any third party, or
their respective officers, directors, employees or agents. To secure this obligation, the customer agrees to
obtain and maintain in effect a policy or policies of insurance with policy limits of not less than $1,000,000.
Such policy or policies shall include RE HL&P as an additional insured and shall include a waiver or
subrogation in RE HL&P's favor. The customer shall furnish a Certificate of Insurance of RE HL&P prior to
the installation of the flags/banners. The customer shall cause its insurer(s) to provide to RE HL&P the
same notice as insurer (s) give to the customer regarding cancellation, non -renewal, change in coverage or
policy limits and other similar matters.
6. Term of Aereements: This Agreement shall continue in effect until terminated by either
party upon 30 days advance written notice to the other parry.
7. Notices: ' For purposes of this Agreement, notices and all other communications provided for
herein shall be in writing and shall be deemed to have been duly given when personally delivered or, except
with respect to the notice requirements of paragraph 4 hereof, when mailed by United States registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:
If to Customer: Name If to RE HL&P: Reliant Energy HL&P
Address P.O.Box 1700
Phone Number Houston, TX 77251
Attention: Carlton Porter
or to such other address as either party may have furnished to the other in writing in accordance herewith,
except that notice of change of address shall be effective only upon receipt.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the
day and year first above written.
0 . 0
0
_q
Agenda Date Requested: March 27, 2000
Requested By: Doug Kneuppa&lov Department: Planning
Report Resolution
Exhibits: Ordinance
Bid Tabulation
Bidder's List
X Ordinance
Summary & Recommendation
As part of the FY 98-99 Budget for Capital Improvement Projects, City Council approved
$270,000.00 for improvements to Caniff Road. The construction of Paving & Drainage
Improvements for Caniff Road consists of removing and salvaging a flexible base roadway and
replacing it with a 28-foot concrete and curb roadway and placing approximately 412 linear
feet of 18 inch reinforced concrete pipe.
Survey, design and engineering were performed on this project utilizing Esor Consulting
Engineers, Inc.. On March 6, 2000, the City received competitive bids from eight qualified
contractors (see attached Bid Tabulation). Angel Brothers Enterprises, Inc. of Baytown, Texas
submitted the low bid in the amount of $176,878.20. The contract will be complete within 75
consecutive calendar days once the "Notice to Proceed" is issued.
Staff has reviewed the bids submitted and determined the low bid from Angel Brothers
Enterprises, Inc. is within the budgeted amount and Angel Brothers Enterprises, Inc. is
qualified to perform this work. Staff recommends that the City Council authorize the City
Manager to execute a contract with Angel Brothers Enterprises, Inc. in the amount of
$176,878.20 and further authorizing $9,000.00 (50/6) contingency for construction of the
Paving and Drainage Improvements for Caniff Road.
Action Required by Council:
Consider approving an ordinance authorizing the City Manager to execute a contract with
Angel Brothers Enterprises, Inc. in the amount of $176,878.20 and further authorizing
$9,000.00 contingency for construction of the Paving and Drainage improvements for Caniff
Road.
Availability of Funds:
General Fund
X Capital Improvement
Other
Account Number: 015-9892-768-1100
Approved for City Council Agenda
Water/Wastewater
General Revenue Sharing
Funds Available: X Yes No
a T, - 3- as - awo
Robert T. Herrera Date
City Manager
ORDINANCE NO. 2000- a 3015
AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT
BETWEEN THE CITY OF LA PORTE AND ANGEL BROTHERS
ENTERPRISES, INC. FOR CONSTRUCTION OF PAVING AND
DRAINAGE IMPROVEMENTS FOR CANIFF ROAD; APPROPRIATING
$1859878.20 TO FUND SAID CONTRACT; 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 LaPorte. The City Secretary is hereby
authorized to attest to all such signatures and to affix the seal of the City
to all such documents. City Council appropriates the sum of
$185,878.20 from Capital Improvement Fund 015 to fund said contract.
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,
Chapter 551, Texas Government Code; and that this meeting has been
U
0
ORDINANCE NO. 2000-) 39<
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.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this March 27, 2000.
CITY. F LA PORTE
By: G v—
orman L. M one,
Mayor
ATTEST:
--n cvhn' Ate-v
Martha Gillett,
City Secretary
i
APPPR-�OVVft:
Knox W. Askins,
City Attorney
0 0
CITY OF LA PORTE
CONSTRUCTION OF PAVING & DRAINAGE IMPROVEMENTS
FOR CANIFF ROAD
CLP PROJECT #97-4401
BID TABULATION
TO
ANGEL BROTHERS
y
75
$ 176,878.20
D & W CONTRACTORS, INC
y
80
$ 186,585.40
SOUTH COAST CONSTRUCTION
y
60
$ 214,428.00
DERK HARMSEN
y
75
$ 220,508.00
DOLSON SIERRA CONSTRUCTION
y
90
$ 232,751.20
AAA ASPHALT PAVING, INC
y
90
$ 243,280.60
JRC CONSTRUCTION, INC
y
75
$ 266,445.50
SOUTHERN CUSTOMS, INC
y
160
$ 378,680.00
CITY OF LA PORTE
CONSTRUCTION OF PAVING & DRAINAGE IMPROVEMENTS
FOR CANIFF ROAD
CLP PROJECT #97-4401
Advertism*
The Bayshore Sun — Feb 13'' and Feb 20'', 2000
Angel Brothers, Inc.
PO Box 570
Bavtown. TX 77522
FAX (281)421-2344
Derk Harmsen Constriction
2820 Center Street
Deer Park, TX 77536
FAX (281)478-5115
W T Byler
15203 Lillja
Houston TX 77060
FAX (281)445-4356
JTB Services, Inc.
9026 Lambright
Houston. TX 77075
FAX (713)941-9660
Park Constructors
PO Box 986
Rosenberg, TX 77471
FAX (281)342-8967
Bid Notice Faxed
Conrad Construction
PO Box 841134
Houston, TX 77284
FAX (713)9371172
Follis Construction
I I I N. Broadway
La Porte, TX 77571
FAX (281)471-0038
Jaho, Inc.
2003 Wilson Road
Humble, TX 77396
FAX (281) 446-6839
Kenneth Lamb Const.
8214 Northline Drive
Houston, TX 77037
FAX (281)447-7249
Pas-Kev Const. Services, Inc.
2129 Preston
Pasadena, TX 77502
FAX (713)477-8247
JRC Construction
6418 Coley Park
Sugar Land, TX 77479
FAX (281)494-6127
FORCE Corp.
PO Box 1079
LaPorte. TX 77572-0853
FAX (281)471-9627
JTR Constructors
4718 Green Trail
Houston, TX 77084
FAX (281) 859-2939
Moore & Moore Contractors
PO Box 1517
La Porte, TX 77572-1517
FAX (281) 471-0601
SCI Constructors, Inc.
PO Box 1464
Friendswood, TX 77549-1464
FAX (281-482-6521
SER Construction Inc. Steven R. Hill Construction CHAMBER OF COMMERCE
2500 Citywest Blvd., Suite 1700 7782 Hammerly FAX (281)471-1710
Houston, TX 77042 Houston, TX 77055-1748
FAX (713)278-9892 FAX (713)956-5817
Contractors That Picked Up Plans & Specifications
Angel Brothers, Inc. D & W Construction
PO Box 570 4900 Woodway
Baytown, TX 77522 Houston, TX 77056
Derk Harmsen Constriction A & W Contractors
2820 Center Street PO Box 1075
Deer Park, TX 77536 Channelview TX
South Coast Construction Southern Customs, Inc.
1950 Knoll 4801 Milwee
Houston TX 77080 Houston, TX 77092
Beyer Construction. AAA Asphalt Paving.
12200 Duncan Rd. 10526 Tanner Rd.
Houston, TX 77066 Houston, TX 77041
JRC Construction
6418 Coley Park
Sugar Land, TX 77479
Dale Dobbins
PO Box 55546
Houston, TX 77255
Dolson Sierra
Houston, TX 77084
✓, -OZ7
SPECIFICATIONS
AND
CONTRACT DOCUMENTS
FOR
CONSTRUCTION OF PAVING & DRAINAGE
IMPROVEMENTS FOR CANIFF ROAD
CITY OF LA PORTE, TEXAS
OCTOBER 1999
CLP PROJECT NO.97-4401
Z(5
ITEM
Agenda Date Requested: March 27, 2000
Requested By: Doug Kneupp Department: Planning
Report Resolution X Ordinance
Exhibits: L-Ordinance 2: Bid Tabulations 3.-Bidder's List
Summaa & Recommendation
As part of the FY 98-99 Budget for Capital Improvement Projects, City Council approved
$171,000.00 for improvements to South 14`h and "H" Street . The South 14`h and "H" Street
paving and drainage improvements project consists of a 32-foot wide concrete curb and
pavement roadway within the South 14`h Street right-of-way extending from the existing
concrete roadway continuing north to finish out the intersection of "H" Street. In addition,
this project includes approximately 1500 feet of reinforced concrete pipe to drain the area to
Little Cedar Bayou. Water and sanitary sewer extensions are also included in the project
scope.
Survey, design and engineering were performed on this project utilizing City Staff. On March
6, 2000, the City received competitive bids from eight qualified contractors (see attached Bid
Tabulation). Angel Brothers Enterprises, Inc. of Baytown, Texas submitted the low bid in the
amount of $150,789.60. The contract will be complete within 60 consecutive calendar days
once the "Notice to Proceed" is issued.
Staff has reviewed the bids submitted and determined the low bid from Angel Brothers
Enterprises, Inc. is within the budgeted amount and Angel Brothers Enterprises, Inc. is
qualified to perform this work. Staff recommends that the City Council authorize the City
Manager to execute a contract with Angel Brothers Enterprises, Inc. in the amount of
$150,789.60 and further authorizing $7,600.00 (5%) contingency for construction of the South
14`h and "H" Street Paving and Drainage Improvements.
Action Required by Council:
Consider approving an ordinance authorizing the City Manager to execute a contract with
Angel Brothers Enterprises, Inc. in the amount of $150,789.60 and further authorizing
$7,600.00 contingency for construction of the South 14`' and "H" Street Paving and Drainage
unprovements.
Availability of Funds:
General Fund
X Capital Improvement
Other
Account Number: 015-9892-767-1100
Approved for City Council Agenda
Water/Wastewater
General Revenue Sharing
Funds Available: X Yes No
6) 1 - 3 - aa- a000
Robert T. Herrera Date
City Manager
ORDINANCE NO. 2000- d 3 9 i{
AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT
BETWEEN THE CITY OF LA PORTE AND ANGEL BROTHERS
ENTERPRISES, INC. FOR CONSTRUCTION OF S. 14TH & "H" STREET
PAVING AND DRAINAGE IMPROVEMENTS; APPROPRIATING
1$1589389.60 TO FUND SAID CONTRACT; 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. City Council appropriates the sum of
$158,389.60 from Capital Improvement Fund 015 to fund said contract.
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,
Chapter 551, Texas Government Code; and that this meeting has been
•
•
ORDINANCE NO. 2000- � �9
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.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this March 27, 2000.
CITY LA PORTE
By: /
N an L. Mafdhe,
Mayor
ATTEST:
4 `
zMarthia-
Uillett,
City Secretary
f
APPROVED: r
Knox W. Askins,
City Attorney
0 •
CITY OF LA PORTE
S 141" & H STREET PAVING & DRAINAGE IMPROVEMENTS
CLP PROJECT #98-4505
BID TABULATION
E-
B v
jupup-, -A
ON
C )NT-RA'CT0R--
.0
ANGEL BROTHERS
y
60
$ 150,789.60
DOLSON SIERRA CONSTRUCTION
y
90
$ 163,232.30
AAA ASPHALT PAVING, INC
y
90
$ 172,790.30
D & W CONTRACTORS, INC
y
80
$ 185,813.30
JRC CONSTRUCTION, INC
y
60
$ 191,801.20
DERK FLkRMSEN CONSTRUCTION
y
75
$ 210,421.00
SOUTH COAST CONSTRUCTION
y
60
$ 226,774.70
SOUTHERN CUSTOMS, INC.
y
120
$ 267,158.00
CITY OF LA PORTE
S 14`h & "H" STREET PAVING AND DRAINAGE IMPROVEMENTS
CLP PROJECT #98-4505
Advertism*
The Bayshore Sun — Feb 13`s and Feb 20'', 2000
Angel Brothers, Inc.
PO Box 570
Baytown TX 77522
FAX (281)421-2344
Derk Harmsen Construction
2820 Center Street
Deer Park, TX 77536
FAX (281)478-5115
W T Byler
15203 Lillja
Houston TX 77060
FAX (281)445-4356
JTB Services, Inc.
9026 Lambright
Houston, TX 77075
FAX (713)941-9660
Park Constructors
PO Box 986
Rosenberg, TX 77471
FAX (281)342-8967
Bid Notice Faxed
Conrad Construction
PO Box 841134
Houston, TX 77284
FAX (713)9371172
Follis Construction
I I I N. Broadway
La Porte, TX 77571
FAX (281)471-6038
Jaho, Inc.
2003 Wilson Road
Humble, TX 77396
FAX (281) 446-6839
Kenneth Lamb Const.
8214 Northline Drive
Houston, TX 77037
FAX (281)447-7249
Pas-Kev Const. Services, Inc.
2129 Preston
Pasadena, TX 77502
FAX (713)477-8247
JRC Construction
6418 Coley Park
Sugar Land, TX 77479
FAX (281)494-6127
FORCE Corp.
PO Box 1079
LaPorte, TX 77572-0853
FAX (281)471-9627
JTR Constructors
4718 Green Trail
Houston, TX 77084
FAX (281) 859-2939
Moore & Moore Contractors
PO Box 1517
LaPorte. TX 77572-1517
FAX (281) 471-0601
SCI Constructors, Inc.
PO Box 1464
Friendswood, TX 77549-1464
FAX (281-482-6521
SER Construction Inc. Steven R. Hill Construction CHAMBER OF COMMERCE
2500 Citywest Blvd., Suite 1700 7782 Hammerly FAX (281)471-1710
Houston, TX 77042 Houston, TX 77055-1748
FAX (713)278-9892 FAX (713)956-5817
Contractors That Picked Up Plans & Specifications
Angel Brothers, Inc. D & W Construction
PO Box 570 4900 Woodway
Baytown TX 77522 Houston TX 77056
Derk Harmsen Construction A & W Contractors
2820 Center Street PO Box 1075
Deer Park TX 77536 Channelview TX
South Coast Construction Southern Customs_, Inc.
1950 Knoll 4801 Milwee
Houston TX 77080 Houston, TX 77092
Bever Construction. AAA Asphalt Paving
12200 Duncan Rd. 10526 Tanner Rd.
Houston, TX 77066 Houston, TX 77041
JRC Construction
6418 Coley Park
Sugar Land, TX 77479
Dale Dobbins.
PO Box 55546
Houston, TX 77255
Dolson Sierra
Houston, TX 77084
Due to the volume of this contract, a copy
is available for your review in the City
Secretary's Office
• 0
U/Iu
SPECIFICATIONS
AND
CONTRACT DOCUMENTS
FOR.
S. 14TH & "H" STREET PAVING
& DRAINAGE IMPROVEMENTS
CLP PROJECT NO. 98-4505
CITY OF LA PORTE, TEXAS
FEBRUARY 2000
9 •
Agenda Date Requested: March 27, 2000
Requested By:
Report
Doug Kneuppes Department: Planning
Exhibits: Ordinance
Bid Tabulation
Bidder's List
Building Layout
Resolution X Ordinance
Summ= & Recommendation
As part of the FY 98-99 Budget for Capital Improvement Projects, City Council approved
$150,000.00 for an offske storage building. The City of La Porte Record Storage Building
Project consists of construction of a 2,400 square foot pre-engineered metal building and site
improvements.
Survey, design, and engineering were performed on this project utilizing Randall -Porterfield
Architects, Inc. On March 20, 2000, the City received competitive bids from seven qualified
contractors (see attached Bid Tabulation). Patak Construction, Inc. of Kemah, Texas
submitted the low bid in the amount of $135,000.00. The contract will be complete within
180 consecutive calendar days once the "Notice to Proceed" is issued.
Planning staff has reviewed the bids submitted and determined that the low bid from Patak
Construction, Inc. is within the budgeted amount and Patak Construction, Inc. is qualified to
perform this work. Staff recommends that the City Council authorize the City Manager to
execute a contract with Patak Construction, Inc. in the amount of $135,000.00 and further
authorizing $6,750.00 (50/6) contingency for construction of the City of La Porte Record
Storage Building.
Action Requires Council:
Consider approving an ordinance authorizing the City Manager to execute a contract with
Patak Construction, Inc. in the amount of $135,000.00 and further authorizing $6,750.00
contingency for construction of the City of La Porte Record Storage Building.
Availability of Funds:
General Fund
X Capital Improvement
Other
Account Number: 015-9892-775-1100
Approved for City Council Agenda
City
Water/Wastewater
General Revenue Sharing
Funds Available: X Yes No
Date
ORDINANCE NO. 2000- A 3 cl %
AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT
BETWEEN THE CITY OF LA PORTE AND PATAK CONSTRUCTION,
INC. FOR CONSTRUCTION OF CITY OF LA PORTE RECORD
STORAGE BUILDING; . APPROPRIATING $141,750 TO FUND SAID
CONTRACT; 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. City Council appropriates the sum of
$141,750.00 from Capital Improvement Fund 015 to fund said contract.
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,
Chapter 551, Texas Government Code; and that this meeting has been
•
•
ORDINANCE NO. 2000- A 39 3
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.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this March 27, 2000.
CITY OF LA PORTE
By: v—.—
No an L. Malone,
Mayor
ATTEST:
-AA 'kid JL&t
Martha Gillett,
City Secretary
APPROV;''
Knox W. Askins,
City Attorney
CITY OF LA PORTE
RECORD STORAGE BUILDING
CLP PROJECT #99-2203
BID TABULATION
Patak Construction. Inc
Y
180
$135,000.00
The Spigener Corporation
Y
90
$140,000.00
Moore & Moore General Contractors, Inc
Y
75
$143,500.00
Clear Lake Construction
Y
125
$159,000.00
Frost Constructors, Inc
Y
180
$163,500.00
R.T.G. Building Company
Y
90
$164,000.00
Construction Masters of Houston
Y
180
$192,250.00
•
CITY OF LA PORTE
RECORD STORAGE BUILDING
CLP PROJECT #99-2203
Advertisine
The Bayshore Sun — February 23`d and March 1°`, 2000
Bid Notice Faxed
Derk Harmsen Construction
Follis Construction
FORCE Corp.
2820 Center Street
111 N. Broadway
PO Box 1079
Deer Park, TX 77536
LaPorte, TX 77571
LaPorte, TX 77572-0853
Phone: 281-479-3400
Phone: 281-471-6881
Phone: 281-470-0550
Fax: 281-478-5115
Fax: 281-471-6038
Fax: 281-471-9627
Comex Corporation
Commodore Construction Co.
Moore & Moore Contractors
PO Box 862
55 Lyerly, Suite 100
PO Box 1517
Deer Park, TX 77536
Houston, TX 77022
La Porte, TX 77572-1517
Phone: 281-479-2322
Phone: 713-694-9371
Phone: 281-471-0145
Fax: 281-479-2069
Fax: 713-694-0714
Fax: 281-471-0601
E & S Construction, Inc.
Hale -Mills Construction, Co.
RTG Building Co.
PO Box 5427
4130 Bellaire
PO Box 0753
Pasadena, TX 77509
Houston, TX 77025
Seabrook, TX 77586
Phone: 281-476-4722
Phone: 713-665-1100
Phone 281-838-1113
Fax: 281-479-6219
Fax: 713-665-4944
Fax: 281-838-1003
Trinity Builders
Associated General Contractors
515 Wisconsin Avenue
3825 Dacoma
South Houston, TX 77587
Houston, TX 77092
Phone: 713-944-9292
Phone: 713-843-3700
Fax: 713-944-9599
Fax: 713-843-3701
.List of Contractors that Picked up Plans and Specifications
Comex Corporation
Trimble & Stephens
The Spigener Corporation
PO Box 862
4701 Gulf Freeway F-1
5314 Pine Ave.
Deer Park, TX 77536
La Marque, TX 77568
Pasadena, TX 77503
Phone: 281479-2322
Phone: 409-941-9700
Phone: 281487-2024
Patak Construction, Inc.
1927 Hwy. 146
Kemah, TX 77565
Phone: 281-334-9833
Derk Harmsen Construction
2820 Center
Deer Park, TX 77536
Phone: 281-479-3400
Frost Constructors
8810 Will Clayton Pkwy, Ste. C
Humble, TX 77338
Phone: 281-446-6522
Clear Lake Construction
1909 Marvin Circle
Seabrook, TX 77586
Phone: 281-474-3333
Construction Masters R. Hassell Builders
PO Box 1587 PO Box 690767
Pearland, TX.77588 Houston, TX 77269
Phone: 281-997-2640 Phone: 281-586-0565
RTG Building Co.
PO Box 0753
Seabrook, TX 77586
Phone: 281-838-1113
Moore & Moore Contractors
PO Box 1517
LaPorte, TX 77572-1517
Phone: 281-471-0145
ITORAGE FACILITY
FLOOR PLAN
Due to the volume of this contract, a copy
is available for your review in the City
Secretary's Office
•
4J
SPECIFICATIONS FOR
LA PORTE RECORD STORAGE
Block 177, Lots 1-6
La Porte, Texas
DATE: February 20, 2000
SET NUMBER:
PROJECT NO.: 990610-023
CITY OF LA PORTE
P.O. Box 1115
LaPorte, Texas 77572
Norman Malone, Mayor
Robert T. Herrera, City Manager
Doug Kneupper, City Planner
CITY COUNCIL
Guy Sutherland Charlie Young
Chuck Engelken Jerry Clarke
Howard Ebow Peter Griffiths
Deotis Gay Alton Porter
110
RANDALL-PORTERFIELD ARCHITECTS, INC.
565 FM 270 North
v League City, Texas 77573
(281) 332-6680
�o
REQUEST FOR CITY COUNCIL AGENDA REM,
Agenda Date Requested: March 27, 2000
Requested By: Susan Kelley �� Department: Administrative Services
Report Resolution X Ordinance
Exhibits: Map Bidder's List
Ordinance Special Warranty Deed
SUMMARY & RECOMMENDATION
The City received a request to sell property that was an old water well site in Spenwick. This property
is 6,260 square foot of land. The legal description is Reserve "A", in Block 1, of Spenwick Place,
Section 1, Town of La Porte, Hams County, Texas. This property is not on a public street, and can
only be accessed by a 20' driveway easement to Ridgefield Road.
This property was appraised at $6,000.00. However, due to the lack of frontage and poor
configuration, the market value has been estimated at $3,000.00. The City placed notification in the
paper soliciting bids with a minimum of $3,000.00. The solicitation states the City will retain a utility
easement, and the property is being sold "as is, where is", with no implied or expressed warranty.
The high bid was received from Lazean Terrell, 3223 Clarksville, La Porte, Texas in the amount of
$3,800.00. Mr. Terrell lives on property which is adjacent to the property being sold. He will utilize
the current driveway easement for access.
One other bid was received from Tammy Cooper, 3222 Ridgefield, La Porte, Texas in the amount of
$1,000.00.
Staff recommends sale of the property to Lazean Terrell in the amount of $3,800.00.
Action Required by Council:
Adopt ordinance authorizing sale of Reserve "A", in Block 1, of Spenwick Place, Section 1 to Lazean
Terrell for $3,800.00.
Availability of Funds:
General Fund
Capital Improvement
Other
Water/Wastewater
General Revenue Sharing
Account Number: Funds Available: Yes No
Approved for City Council Agenda
Q -T-- 3 - a3 ac3OC3
Robert T. Herrera, City Manager Date
ORDINANCE NO. 2 0 0 0 — of c3 of
AN ORDINANCE AUTHORIZING AND APPROVING THE SALE OF RESERVE "A", IN
BLOCK 1, OF SPENWICK PLACE, SECTION 1, HARRIS COUNTY, TEXAS, TO THE
HIGHEST BIDDER FOR CASE; AUTHORI21NG EXECUTION OF A SPECIAL
WARRANTY DEED; 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. The City Council of the City of La Porte hereby
authorizes and approves the sale of Reserve "A", in Block 1, of
Spenwick Place, Section 1, Harris County, Texas, to Lazean Terrell,
the highest bidder, for a cash bid of $3,800.00. The City Council
authorizes the City Manager to execute, and the City Secretary to
attest, the Special Warranty Deed in form attached hereto, and any
and all other documents necessary documents to complete the
conveyance.
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, Chapter 551, Texas Government
Code; 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.
Section 3. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
NO. 2000- A 36t D FACE 2
PASSED AND APPROVED, this 27th day of March, 2000.
CITY OF LA PORTE
By: Z�—
4rNM
L.one
ATTEST:
L--m L 0 - RZ&I .
Martha A. Gillett
City Secretary
f�
APPRgVED-t, J
Knox W. Askins
City Attorney
SPECIAL WARRANTY DEED
Date: March 27, 1999
Grantor: CITY OF LA PORTE, a municipal corporation,
successor to Spenwick Place Municipal Utility
District of Harris County, Texas.
Mailing Address: P.O. Box 1115
La Porte, TX 77572
Grantee:
Mailing Address:
LAZEAN TERRELL
3233 Clarksville
La Porte, TX 77571
Consideration: Ten and N0/100 Dollars ($10.00) cash and other good
and valuable considerations
Property (including any improvements):
Reserve "A", in Block 1, of SPENWICK PLACE, SECTION ONE
(1), a subdivision in Harris County, Texas, according to
the map or plat thereof recorded in Volume 42, Page 64 of
the Map Records of Harris County, Texas.
Reservations from and Exception to Conveyance and Warranty: Taxes
for the current year have been prorated and are assumed by Grantee.
This conveyance is made subject to all and singular the
restrictions, conditions, oil, gas, and other mineral reservations,
easements, and covenants, if any, applicable to and enforceable
against the above described property as reflected by the records of
the county clerk'of the aforesaid county.
Grantor for the consideration and subject to the reservations from
and exceptions to conveyance and warranty, grants, sells, and
conveys to Grantee the property,. together with all and singular the
rights and appurtenances thereto in any wise belonging, to have and
hold it to Grantee, Grantee's heirs, executors, administrators,
successors, or assigns forever. Grantor binds Grantor and
Grantor's heirs, executors, administrators, and successors to
warrant and forever defend all and singular the property to Grantee
and Grantee's heirs, executors, administrators, successors, and
assigns against every person whomsoever lawfully claiming or to
claim the same or any part thereof, by, through, or under Grantor
but not otherwise, except as to the reservations from and
exceptions to conveyance and warranty.
When the context requires, singular nouns and pronouns include the
plural.
CITY OF LA PORTE
Successor to Spenwick Place
Municipal Utility District
of Harris County, Texas
By: <3, T. �-,--
ROBERT T. HERRERA
City Manager
ATTEST:
AW
Cit Secretary
STATE OF TEXAS {
{
COUNTY OF HARRIS {
STY✓ s instrument was acknowledged before me on the % day of
1999, by ROBERT T. HERRERA, City Manager of the City
of La Porte, a municipal corporation, successor to Spenwick Place
Municipal Utility District of Harris County, Texas, on behalf of
said City, in the capacity therein stated.
c
N tary Public, State of Texas
JAMS H. c ORM
MY COMMISSION EXPIRES
}, Dammber27,Z0IXi
i
AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF:
ASKINS & ARMSTRONG, P.C. A$KINS & ARMSTRONG, P.C.
P.O. Box 1218 P.O. Box 1218
0
BIDDER'S LIST
SALE OF SPENWICK PROPERTY
SEALED BID #S003
ALFRED HESTER ESTATE GERALD TOUMEY
KAREN MULLINS 9229 BELFAST RD
7019 S H 75 ST #B LA PORTE, TX 77571
HUNTSVILLE, TX 77340
CHARLES HAIL TIM SYKES .
3222 CLARKSVILLE ST 3217 CLARKSVILLE ST
LA PORTE, TX 77571-3862 LA PORTE, TX 77571 .
JAMES HOWARD LAZEAN TERRELL
1347 BETHLEHEM ST 3233 CLARKSVILLE ST
HOUSTON, TX 77018-191 LA PORTE, TX 77571
LOIS FINCHER TAMMY COOPER
3218 RIDGEFIELD RD 3222 RIDGEFIELD RD
LA PORTE, TX 77571-3854 LA PORTE, TX 77.571
CHAMBER OF COMMERCE BAYSHORE SUN PUBLISH DATES!
P.O. BOX 996 FEBRUARY 13, 2000
LA PORTE, TX 77572-0996 ' FEBRUARY 20, 2000
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�9
Agenda Date Requested: March 27 2000
r
Requested By: Louis Ri Department: Administrative Services
Report esolution Ordinance
Exhibits: Correspondence from TML-GBRP
SUMMARY dt RECOMMENDATION
The Texas Municipal League Group Benefits Risk Pool (TML-GBRP) acts as the City's third party
administrator of our medical fund. TML.-GBRP was formed on May 1, 1979 as an employee
benefit welfare trust that expires on May 1, 2000. On September 17, 1999, the TML
Intergovernmental Employee Benefits Pool (TML -IEBP) was formed and will have similar
Purposes as the TML GBRP.
Other than requiring City Council to adopt an interlocal agreement, the change will be virtually
transparent and will not require any additional funding.
Action Required by Council: Adopt ordinance authorizing City Manager to sign Consent to
Assignment of the TML-GBRP to TML-IEBP.
Availability of Funds:
General Fund _ Water/Wastewater
_ Capital Improvement _ General Revenue Sharing
Other
Account Number: Funds Available: Yes No
Approved for City Council Agenda
Qol� 1 - - Z' U 'L00o
Robert T. Herrera Date
City Manager
ORDINANCE NO. 2000- 01 -3Cf 9
AN ORDINANCE APPROVING AND AUTHORIZING A CONSENT TO ASSIGNMENT FROM
THE TEXAS MUNICIPAL LEAGUE GROUP BENEFIT RISK POOL TO THE TEXAS
MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL; MAKING
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. 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, Chapter 551, Texas Government
Code; 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.
Section 3. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
LA
•
ORDINANCE NO. 2000- A 3gCj
PASSED AND APPROVED, this 27th day of March, 2000.
CITY OF LA PORTE
By: �0'�e-'---
Notman L. Malon
Mayor
ATTEST:
�& d&ld' J,
Martha A. Gillett
City Secretary
.d
APPRO
Knox W. Askins
City Attorney
PAGE 2
TML
GROUP BENF.FM RISKPOOL
DEDICAM M SERVICE
Texas Municipal League Group Benefits Risk Pool
1821 Rutherford Lane - #300 - Austin - Texas - 78754 800.348.7879
MEMORANDUM
To: Self -Funded TML-Group Benefits Risk Pool Members
Date: 3/3/00
Re: Council or Governing Body Action Required By 4/1/00
The Texas Municipal League Group Benefits Risk Pool (TML-GBRP) was formed on 5/l/79, to
ensure political subdivisions had access to employee benefits and to assure there would be
competition in the price of employee benefits. The TML-GBRP was formed as an employee benefit
welfare trust that expires in twenty-one years, or on 511100. The 1979 Trust allows the TML-GBRP
Trustees to transfer all assets to another trust established for substantially similar purposes.
On 9/17/99, the TML Intergovernmental Employee Benefits Pool (TML-IEBP) was formed. The
TML-IEBP will operate under Chapter 172 of the Local Government Code, the Interlocal
Cooperation Act (Chapter 791 of the Government Code), and have substantially similar purposes as
the TML-GBRP. The original Trustees and officers of the TML-IEBP are the same as the current
TML-GBRP Trustees and officers, and the Polices and Procedures will be the same. On 1 /29/00 the
TML-GBRP Board of Trustees voted to transfer all assets and liabilities to the TML-IEBP on
4/l/00 and to terminate the TML-GBRP Trust on the same date. Also, on 1/28/00 the TML-IEBP
Board of Trustees voted to accept the transfer of all TML-GBRP assets and to assume responsibility
for all TML-GBRP liabilities as of 4/1/00.
Other than the requirement of having your Council or Governing Body adopt and execute the
enclosed Interlocal Agreement with the TML-IEBP the change will be almost transparent for
Members. The Administrative Services Agreement and any other service agreements (e.g. COC
Administration, Flexible Spending Account Administration or Retiree Direct Billing) will be
assigned to the TML-IEBP by adoption and execution of the enclosed "Consent To Assignment
Agreement" that will need to be returned with the Interlocal Agreements. Please place on your
March agenda havingyourCouncil or Governing Body adopt the Interlocal Agreement with
the TML Intergovernmental Employee Benefits Pool and Consent To Assignment Form.
Please return both documents to my attention.
-over-
DaWa Lubbock Houston
2711 LBJ Freeway, #1062 7602 UnlveksiM # 125 14511 Falling Creek, #310
Dallas - Texan - 75234 - 972.919.1741 Lubbock - Tema - 79423 - 806.748.5865 Houston - Texas - 77014 - 281.895.9677
Aj
NTM
Employee Benefits
Pool
l
May 17, 2000
of
Mr. Louis Rigby L't4 e3 4 Q to i
City of La Porte i
604 West Fairmont Parkway
l
LaPorte, Texas 77572 I
Dear Louis: _
Enclosed please find your copy of the signed Interlocal Agreement. Please feel free to
call upon me, should you have any questions or need any additional information.
Sincerely,
Cheryl Wessels
Member Service Team Manager
Enclosures
1821 Rutherford Lane, Suite #300 Austin, Tx. 78754-5151 800.348.7879 512.719.6500 Faic:512.719.6509
.w w w, t m I i e b p. o r g
TML
INTERGOVERNMENTAL EMPLOYEE
BENEFITS RISK POOL
NT.ML
Interpvernmental
Employee Benefits
Pool
1.�v�E�oca�
AG-R�'E.�IEN'�
NON -RISK PARTICIPATING MEMBER
TML Intergovernmental Employee Benefits Pool
Austin, Texas
INTERLOCAL AGREEMENT
(NON -RISK PARTICIPATING MEMBER)
WHEREAS, the TML Intergovernmental Employee Benefits Pool, hereinafter referred to as TML-IEBP,
is a legal entity created by political subdivisions of the state and governed by trustees, and is the
successor of the Texas Municipal League Group Benefits Risk Pool formerly operating under the name
of the Texas Municipal League Insurance Trust Fund, which was established May 1, 1979; and
WHEREAS, the undersigned Employer Member represents that it is a political subdivision of the state
and that its board and governing body has acted by majority vote, at a duly called and posted public
meeting, to authorize and participate in this Interlocal Agreement; and
WHEREAS, the undersigned political subdivision has examined all the facts and issues it deems relevant
and determined that it is in the best interest of the political subdivision, its employees, officials, and
retirees and their dependents to enter into this agreement and obtain the services provided by the TML-
.IEBP in connection with one or more life, sick, accident and other health benefits provided to its
employees, officials, and retirees and their dependents by becoming a member of the TML-IEBP;
WHEREAS, the TML-IEBP represents that it is a "local government' qualified to enter into this
Interlocal Agreement pursuant to Chapter 791 of the Texas Government Code;
NOW, THEREFORE, in consideration of the covenants and agreements herein set forth, the undersigned
political subdivision, together with other political subdivisions executing identical or substantially
similar Interlocal Agreements, enters into this agreement for the purpose of obtaining services for the
administration of one or more life, sick, accident and other health benefits provided by the political
subdivision. The services will be provided under the authority of the laws of the State of Texas including
the Interlocal Cooperation Act (Chapter 791, Government Code). The Employer Member hereby
designates the TML-IEBP as its instrumentality to administer the business and supervise the performance
of the Interlocal Agreement. The conditions of membership in the TML-IEBP are agreed upon by and
between the parties as set forth hereinafter. .
When used in this Interlocal Agreement, the capitalized terms shall have the meanings specified
in this paragraph unless the context clearly requires otherwise:
"Board of Trustees" or 'Board" or "Trustees" means the trustees selected pursuant to the Trust
Agreement Establishing the TML Intergovernmental Employee Benefits Pool to supervise the
operation of the TML-IEBP.
"Employer Member" means a political subdivision entering into this Interlocal Agreement.
"Plan" or "Plans" mean the health benefit plan(s) established and provided by the Employer
Member.
"Political subdivision" means any legal entity included within the definition of political
subdivision in Chapter 791, Government Code.
"TML-IEBP" means the TML Intergovernmental Employee Benefits Pool.
The Employer. Member agrees to be bound by this Interlocal Agreement and the Trust
Agreement Establishing the TML Intergovernmental Employee Benefits Pool, and the policies
and procedures established by the TML-IEBP which collectively establish the conditions for
membership in the TML-IEBP.
Interlocal Agreement ASO (rev. 10/0 1/99) Page 1
3. TML-IEBP and the Employer Member will comply in all respects with their respective
obligations under the Group Benefits Services Agreement which is affixed hereto and
incorporated for all purposes as if fully set out herein.. The payments required to be made by the
Employer Member under the terms of the Group Benefits Services Agreement shall be made at
Austin, Travis County, Texas on the dates and in the amounts as the TML-IEBP requires for
providing services. Interest, beginning the first day after the due date and continuing until paid,
shall accrue at the maximum rate allowed by law on the balance of any payment or contribution
not paid when due. All such payments and interest shall be paid from then current revenues.
4. Except as may be otherwise specified in the TML-IEBP Trust Agreement Establishing the TML
Intergovernmental Employee Benefits Pool, this agreement may be terminated by either the
Employer Member or the TML-IEBP in accordance with the terms of the attached Group
Benefits Services Agreement.
5. The Employer Member shall furnish all the information the TML-IEBP deems necessary and
useful for the purposes of this agreement and shall abide by the rules and regulations adopted for
the administration of the benefits plan. The TML-IEBP may amend its rules and regulations at
the time of annual renewal of this agreement and its Trust Agreement Establishing the TML
Intergovernmental Employee Benefits Pool at anytime to the extent it deems advisable except
that no amendment shall change the purpose of the TML-IEBP.
Each Employer Member will designate and appoint a coordinator of department head rank or
above and agrees that the TML-IEBP shall not be required to contact or provide notices to any
other person. Further, any notice to, or agreement by an Employer Member's Coordinator, with
respect to services or claims hereunder, shall be binding on the Employer Member. The
Employer Member reserves the right to change the coordinator from time to time by giving
written notice to the TML-IEBP.
The Employer Member hereby appoints the TML-IEBP as its agent to act in all matters
pertaining to the processing and handling of claims and agrees to cooperate fully and provide all
information necessary.
8. Each Employer Member, as Plan Administrator, retains the right, duties and privileges of the
Plan Administrator and acknowledges it has responsibility for compliance with the state and
federal laws applicable to employees benefits.
9. The Employer Member agrees to indemnify and hold harmless the TML-IEBP for all claims,
damages and expenses, including but not limited to attorney's fees and costs of court, arising out
of acts or omissions of officers or employees of the Employer Member in connection with the
Plan. The Employer Member agrees to pay all such claims, damages, and expenses out of
current revenues at the time the obligation is determined. In the event current revenues are
inadequate to fund the obligation at the time it is determined, the Employer Member agrees to
take the appropriate budgetary action sufficient to pay the obligation.
10. The Employer Member and the TML-IEBP may contract for additional administrative services
related to the Employer Member's employee benefit programs.
11. No bond is required of the Board of Trustees of the TML-IEBP.
Interlocal Agreement ASO (rev. 1010 1 /99) Page 2
12. If any part of this agreement, save and except paragraph 3, is declared invalid, void or
unenforceable, the remaining parts and provisions shall continue in full force and effect. It is
further agreed that venue for any dispute arising under the terms of this agreement shall be in
Austin, Travis County, Texas.
13. . This agreement with attachment represents the complete understanding of the TML-IEBP and
the Employer Member and may not be amended, modified or altered without the written
agreement of both parties.
14. The term of this Interlocal Agreement shall be concurrent with that of the Group Benefits
Services Agreement which is affixed hereto. Absent notice of termination, the Employer
Member may annually renew and extend this Agreement by executing and returning the Group
Benefits Services Agreement. '
This agreement is entered into for the Employer Member under authorization of
ell
(EMPILOYI
at a duly called meeting held on
[(Date
By
Authorized Official Tit]
Date
MEMBER)
Meeting)
This Agreement entered into and Appointment Accepted By:
The TML Intergovernmental Employee Beppfs Pgpl at Austin, Texas
Date
r
10
(Printed or Typed Name)
Interlocal Agreement ASO (rev.10/01/99) Page 3
TO BE COMPLETED BY EMPLOYER MEMBER:
EMPLOYER MEMBER BENEFITS COORDINATOR
Name Lo Ltt 5 1 G►i3'`�
Title 1�lR,ECTp2 OF 4bMIA)V`3 2AnLJC- 18C4TS
Mailing Address �• D OX, l I / 5
Street Address (if different from above) f�
6Q� L rMON i 1 Kw (71,sv)
City/State/Zip LA VOV i e
Phone 2y � `f'1 S U 710
Fax
E-mail t0u.t5Cc:)C,l. l4r-pu�`te .`i�C.l•(S
Interlocal Agreement ASO (rev.10/01/99) Page 4
CONSENT TO ASSIGNMENT
City of La Porte consents to the assignment to the TML Intergovernmental
Employee Benefits Pool of the rights and responsibilities of the Texas Municipal League
Group Benefits Risk Pool under the following contracts and agreements entered into
between the Texas Municipal League Group Benefits Risk Pool and City of La Porte.
Administrative Services Agreement
Continuation of Coverage Administration
City of La Porte agrees to honor its obligations under the contract and to treat the
TML Intergovernmental Employee Benefits Pool in all respects as though it were the
original contracting party.
This Assignment was approved by the City of La Porte governing body at a duly
called meeting held on o1� dI-' day of i r. A -- , 2000.
For t City of La Porte
�q A
ignature
NOf m MAt K�
Typed Name
A-Vid
Title
Agenda Date Requested: March 27, 2000
Requested By: Doug Kneuppe
XX Report esolution
Exhibits: Utility Extension Agreement
Department: Planning
Ordinance
Summary & Recommendation
This item was last before Council on June 28, 1999. At that time staff described a situation
where John Frantz owned approximately 46 acres along the north side of SH 225 between Sens
Road and Miller Cut -Off and wanted to provide water service to the 46 acres by extending over
5,000 feet of 8-inch water line. Mr. Frantz is well aware of the City's policies for providing
water to customers outside our city limits. However, Mr. Frantz will not be developing the
property; he will be selling acreage tracts for others to develop. It was Council's direction to
provide a mechanism whereby future purchasers of property would be notified of the City's
policies regarding water service to customers outside our city limits.
Planning Dept. staff worked with the City Attorney's Office to develop that notification
mechanism. It is in the form of Exhibit `B" found within the attached Utility Extension
Agreement. Exhibit "B" is an affidavit that will be a part of the "closing" documents when a
company or individual purchases a tract from Mr. Frantz.
As was the case before, this water line extension will be funded completely by Mr. Frantz. At
this time staff is recommending approval of this Utility Extension Agreement with the attached
Exhibit "B".
Action Required by Council:
Consider authorizing the City Manager to execute a Utility Extension Agreement with John
Frantz.
Availability of Funds: N/A
Approved for City Council Agenda
2,000
Robert T. Herrera Date
City Manager
UTILITY EXTENSION AGREEMENT
(Owner Funded Extension)
THE STATE OF TEXAS:
COUNTY OF HARRIS:
This agreement, made this r. l,� day of a, TZ#- , 2000, by
and between the City of La Porte, herein called "City", acting herein through its City
Manager and John Frantz, an individual, of The Woodlands, County of Montgomery,
and State of Texas, hereinafter called "Owner".
WITNESSETH
All references to "Utility Main(s)" hereunder shall, for the purposes of this
agreement, shall refer to the extension of an 8-inch potable water line and related
appurtenances as per plans and specifications being prepared by Cobb, Fendley &
Associates, Job No. 98ZO45-01 (CLP Project No. 98-7602).
2. Owner is the owner and/or representative of certain property located in the extra-
territorial jurisdiction of the City of La Porte, Harris County, Texas, generally identified
as approximately 46 acres out of the Enoch Brinson Survey, A-5, Harris County, Texas.
Said property is more particularly described on the drawing attached hereto as Exhibit
"A", and incorporated herein by reference. Said 46 acres is a portion of 117 acres
(formerly) owned by Owner, pursuant to instrument recorded under Harris County
Clerk File No. 522-33-3692. This Utility Extension Agreement shall only apply to the
construction and installation of City utilities to the 46 acres described on Exhibit "A".
This Utility Extension Agreement does not apply to the remainder of the acreage in
Owner's 117 acres as recorded under Harris County Clerk File No. 522-33-3692. The
property described on Exhibit "A" comprising approximately 46 acres out of the Enoch
Brinson Survey, A-5, Harris County, Texas, is sometimes hereinafter referred to as "the
property".
3. City hereby agrees to the construction and installation of an extension of its utility
main(s) to said property commencing at the nearest existing utility main(s) of sufficient
size and capacity. Thence along/through public rights -of -way and/or easements to and
through Owner's property. Provided, however, that should City not possess all
necessary rights -of -way and/or easements to complete said extension(s), Owner shall
be solely responsible for obtaining said additional rights -of -way and/or easements at no
cost to City, on City approved forms. All permits and approvals required by entities with
jurisdiction shall be secured prior to construction.
4. Owner agrees to pay all costs related to the construction and installation of said
utility main(s) including necessary appurtenances in conformance with City's standards
and specifications for said utility main(s), all in accordance with Plans referenced in
Section 1 hereof. Owner further agrees to pay all engineering fees for survey, design,
contract documents, bidding, construction staking, construction inspection, and
preparation and submittal of As -Built construction drawings and to indemnify City and
hold City harmless for Owner's failure to pay same.
5. Subject to the provisions of this agreement, City hereby agrees to the
construction and installation of said utility main(s) according to the plans and
specifications referenced in Section 1 hereof and contract documents to be prepared by
the Owner's engineer and approved by the City. The contract documents shall include
a provision for a one (1) year warranty from defects in materials and workmanship. The
KA
0 •
documents will also provide a "Notice" to Contractor that the City of La Porte will
perform daily construction inspection to insure compliance with plans and
specifications. Owner agrees that City will not be responsible for issuing or approving
payments to the Contractor. It is agreed and understood that Owner is responsible for
paying for any unforeseen costs or cost overruns in the project that result from
circumstances beyond the control of the City.
6. City shall have the right to approve the Engineer and the Contractor selected by
Owner. Upon completion and approval of plans, specifications, and contract
documents, the City shall authorize the Owner to secure bids from qualified
underground utility contractors.
7. Owner agrees that upon completion and acceptance by City, City will assume
ownership and maintenance of the utility main(s) and as such shall have full control
over future extensions and connections thereto.
8. For the purposes of reimbursement, as provided for in paragraph 9, Owner
agrees to supply City with a statement of final construction costs. Owner and City
agree to use the final construction cost to develop an average cost per foot. Said
average cost per foot shall be calculated by determining the final construction cost
eligible for reimbursement divided by the total length of utility main eligible for
reimbursement as defined by Exhibit "K.
9. In the event that other owners of property abutting the utility mains extended by
Owner under this contract, as shown on the plat attached hereto as Exhibit W and
incorporated by reference herein, shall utilize the extended utility main(s) constructed
under this agreement by making connection thereto under a permit from City within a
3
• 0
period of then (10) years from and after the date City has accepted the construction of
said facilities by the contractor, City agrees to collect from said property owners, an
amount equal to their linear foot of frontage abutting the utility main times the average
cost per foot. In the event that other Owner(s) have participated in the cost of the
extension of this line(s), all participating owner(s) shall be reimbursed pro rata to their
respective participation in the cost of the line(s).
10. Owner shall notify all purchasers of "the property", that the City of La Porte
makes no representations to said owners as to the availability of utilities to property that
such purchasers might purchase within "the property". Rather, said purchasers shall
be notified of the existence of policies of the City of La Porte and the prior necessity of
a Water Service Agreement, that must be approved by City Council and entered into
between said purchasers and the City of La Porte, prior to the provision of utilities by
the City of La Porte to said purchasers. Owner agrees that, as part of the closing
documents on any property within "the property", that Owner will provide a notice, in
recordable form, that potable water is available to the property only if the City of La
Porte agrees pursuant to said Water Service Agreement to make potable water
available to the property and only if City Council approves such Water Service
Agreement and only if said purchaser enters into a Water Service Agreement with the
City of La Porte. Said Notice to Purchasers shall be in substantially in the form
attached hereto as Exhibit 'B".
4
IN WITNESS WHEREOF, the Parties to these presents have executed this
agreement in several counterparts, each of which shall be deemed an original, in the
year and day first mentioned above.
(Seal)
CITY OF LA PORTE
ATTEST: BY: (3 4}x� I
f
BY: TITLE:
(City Secretary of La Porte)
(Seal)
BY:
BY:
(Witness or Secretary of Corporation) Jn Frantz
// (Owner)
APPROV TO FORM:
v
City Attorney
A
PROPOSED 8" WATER LINE EXTENSION
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EXHIBIT B
NOTICE TO PURCHASERS OF REAL PROPERTY
The real property, described below, which has been or is about to be. purchased, is
located in the extra -territorial jurisdiction of the City of La Porte. No utilities are
available to the property unless the City of La Porte enters into a water service
agreement with you. The purpose of the agreement is to provide water and sewer
services to your property pursuant to the policies of the City of La Porte and pursuant to
the terms of said water service agreement and established policies of the City of La
Porte.
Date
[insert Legal Description of Property]
SIGNATURE OF SELLER(S)
The undersigned purchaser hereby acknowledges receipt of the foregoing notice prior
to closing of the purchase of the real property described in such notice.
DATE
SIGNATURE OF PURCHASER(S)
f
PROPOSED 8" WATER LINE EXTENSION
A
EXIST. 8" WATER LINE
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NOTICE TO PURCHASERS OF REAL PROPERTY
The real property, described below, which has been or is about to be purchased, is
located in the extra -territorial jurisdiction of the City of La Porte. No utilities are
available to the- property unless the City of La Porte enters into a water service
agreement with you. The purpose of the agreement is to provide water and sewer
services to your property pursuant to the policies of the City of La Porte and pursuant to
the terns of said water service agreement and established policies of the City of La
Porte.
[insert Legal Description of Property]
Date
SIGNATURE OF SELLER(S)
The undersigned purchaser hereby acknowledges receipt of the foregoing notice prior
to closing of the purchase of the real property described in such notice.
DATE
.SIGNATURE OF PURCHASER(S)
• 0
Agenda Date Requested: March 27 2 00
Requested By: Louis Rib went: Administrative Services
Report Resolution Ordinance
Exhibits: Consultant Correspondence
Bid Tabulation
SUMMARY dt RECOMMENDATION
The City's stop loss insurance is due to renew on April I . This insurance currently covers
payment of all claims for any one employee or dependent whose medical charges exceed $75,000.
The coverage also includes an aggregate amount for all employees of approximately $1.54 million
which means that if claims from all employees and dependents exceed $1.54 million, the insurance
carrier would pay 100% of all claims over that amount.
Our current carrier is U.S. Benefits with an annual premium of $124,839. Please note that
Houston Casualty Corporation (HCC) acquired Centris (U.S. Benefits) in 1999. To keep the same
coverage ($75,000 threshold), HCC has proposed a renewal premium of $128,108. They have also
proposed a $100,000 limit for a total premium rate of $107,319.
The City's recent catastrophic loss rate has been minimal. There has been only one employee who
has neared the $75,000 limit in the past four years. Staff recommends increasing the stop loss
amount to $100,000 and reducing the premium to $107,319.
Sufficient funds have been budgeted in the medial fund to pay these premiums.
Action Required by Council: Consider authorizing City Manager to sign agreement with HCC to
provide stop loss insurance, at an annual cost of $107,319.
Availability of Funds:
General Fund _ Water/Wastewater
_ Capital Improvement General Revenue Sharing
X Other
Account Number: 014-6144-515-6012 Funds Available: X Yes No
Approved for City Council Agenda
► 3- a2- owo
Robert T. Herrera Date
City Manager
The Welch Company
Employee Benefits Consulting and Brokerage
Memorial City Plaza
820 Gessner, Suite 1470
Houston, Texas 77024
(713) 827-8755
Fax (713) 461-5788
March 13, 2000
Louis R. Rigby
Director of Administrative Services
City of La Porte
P.O. Box 1115
La Porte, Texas 77572-1115
RE: Stop -Loss RFP Response
Dear Louis:
Enclosed is the market response to the Request for Proposal. Houston Casualty
Corporation (HCC) acquired Centris (U.S. Benefits) in 1999. The renewal of your
stop -loss policy therefore comes on HCC Life paper (AM Best Rated A-). I have
enclosed the comparison/transition information provided by HCC for your
records. As I review the policies, I do not believe that the change in carrier
coverage requires any alteration to your plan document. I will, however, send a
copy of the HCC Life policy to TML for their review.
The quote from American Stop -Loss, Managing General Underwriter for
ReliaStar is competitive. However, given the competitive nature of your renewal
from HCC I would not recommend a change at this time. Your long-term
relationship with a carrier builds credibility for future marketing and renewal
efforts. The ReliaStar quote does not bring enough value in the form of coverage
or premium to contemplate a move. By the way, we contacted both companies
to see if further movement in premium or factors could be accomplished. We
were not successful in that effort.
As you review the enclosed spreadsheet I would recommend your consideration
of a higher specific deductible. The increase in premium from last year reflects
medical inflation. In today's market, health and Rx claims are trended at least
15% of the midpoint. Therefore, you should consider increasing your specific
deductible to compensate for trend. Simply speaking a large claim that cost
$75,000 dollars last year will cost $85,000+ this year. If your deductible does not
keep pace with inflation the carrier figures they will get additional claims ($75,000
to $85,000 example) as well as the increased cost of healthcare claims over the
specific deductible. To illustrate the above scenario, notice that the $85,000-
specific deductible from HCC carries the same premium as the $75,000
deductible did last year. We can discuss this decision at your convenience.
The largest single change in this year's comparison is the aggregate attachment
factor. The increase in the factor reflects the addition of the Rx card last year
and its claim weight. The separation of the medical and Rx factors is further
illustrated on the declaration form from HCC. Given the cost of the Rx card last
year, the overall aggregate attachment factor is within limits. I frankly expect the
major medical inflation to slow somewhat. Unfortunately, the Rx inflation will
increase to the point of offsetting any slowdown in medical factors. Annual
premium for the aggregate increased as well. This is indicative of overall claims
experience fueled by inflation.
As a side note, the reason for the minimal response from the market this year.
was the passage of House Bill No. 1627. This bill scared many insurers, as it
limited their ability to medically underwrite last minute changes in a municipality's
risk.
Please feel free to call with questions. When you decide which coverage best
reflects the City's needs for the upcoming plan year, please sign the appropriate
proposal page (TPA signature) and fax and mail the original to Tracy Greenawald
before April 1, 2000, and inform us of your decision.
Thank you for your review of this information; and once again please call with
questions.
Best regards,
Neal W. Welch
Attachments
The Welch Company
City of LaPorte
Response to RFP - Stop -Loss Insurance
318100
'�, NO
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NEI
W-1,10"
1999
-v g
.11q -1. j rtggr NINE<
NOR,
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Renewal
mg,
1998
Specific jjqg-Lo§s
Medical & Rx
Medical & Rx
Annual Deductible
$75,000
$75,000
$75,000
$86,000
$100,000
$85,000
$100,000
Coverage Basis
Paid/12
Paid/12
Paid
Paid
Paid
15/12
15/12
15/12 _
Employee Only Premium (131)
$10.71
$11.46
$13.18
$11.44
$9.23
$14,45
$13.54
$12.00 -
Employee Family Premium (235)
$29.69
$31.76
$36.52
$31.70
$25.56
$39.45
$38.04
$33.72
Annual Premium
$85,426
$107,578
$123,705
$107,378
$86,589
$133,964
$128,558
$113,954
Coverage Amount
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Aggregate -Loss
.Sto
Coverage Basis
Paid/12
Paid/12
Paid
Paid
Paid
15/12
15/12
15/12
Aggregate Factor
Medical
Medical
Medical & Rx
Medical & Rx
Medical & Rx
Medical
Medical
Medical
Composite
$383.69
$364.50
$413.30
$418.77
$426.06
$400.14
$403.26
$407.98
Coverage Amount
$2,000,000
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Aggregate Premium Rate (366)
$3.27
$3.93
$4.72
$4.72
$4.72
$2.85
$2.85
$2.85
Annual Premium
$14,362
$17,261
$20,730
$20,730
$20,730
$12,517
$12,517
$12,517
Total Specific & Aggregate Premium
$99,788
$124,839
$144,435
$128,108
1 $107,319
$146,481
$141,075
1 $126,471
Annual Attachment Point
$1,620,706
1 $1,539,648
1 $1,814,490
1_ $1,838,882
1 $1 871 983
$1,903,896
$1,912,193
1 $1,918,31 9d
Based on:
Employees/Retirees - Single 131
Dependent Units 235
Total 366
The Welch Company 3/13/00
0
REQUEST FACITY COUNCIL AGENDA ITEM
Agenda Date Requested: March 27 2000
Requested By: S. Gillett "Wevartment: Public Works
XX Report Resolution Ordinance
Exhibits: Letter from Waste Management
SUMMARY & RECOMMENDATION
The City of La Porte has five (5) year contracts with Waste Management (formerly Sanifill) for the disposal of
Type I (garbage) and Type IV (trash). Both contracts expire on March 31, 2000. Because Waste Management
only recently purchased Sanifill, the corporate structure has not yet organized to the point that contract renewals
can be negotiated. Waste Management has agreed to extent the current contracts for an additional year, until
March 31, 2001, to give the parties time to develop new contracts.
The proposed extensions are under the same terms and conditions as the current contract. The current contracts
provide for adjustment of rates. The current rate for Type I waste is $5.25 per cubic yard (in effect since April
1, 1996) and is proposed to be $5.85 on April 1, 2000. The current rate for Type IV waste is $3.50 (in effect
since April 1, 1995) and will increase to $3.86 on April 1, 2000 (2%).
Action Required by Council: Approve the extension of Type I and Type IV solid waste disposal contracts
with Waste Management for one year, with COL adjustments to the rates - $5.85 for Type I waste and $3.86 for
Type IV waste.
Availability of Funds:
X General Fund_ Water/Wastewater
_ Capital Improvement General Revenue Sharing
_ Other
Account Number: 001-7072-532-6009 Funds Available: X YES —NO
Approved for City Council. Agenda
�2 -�-' v Zt- U'su
Robert T. Herrera Date
City Manager
WWA
WASTE MANAGEMENT
City of La Porte
P.O.Box 1115
LaPorte, TX 77572
Attention: 1VIr. Phil Webb
South Texas Landfills
A Waste Management Company
100 Genoa Red Bluff Rd.
Houston, Texas 77034
(281)922-0012.
(281) 922-6159 Fax
March 20, 2000
This letter confirms our earlier conversation that Waste Management offers to the City of La Porte a one-year
extension to the two existing waste disposal Agreements between the City and Waste Management.
Agreement 1 is for the disposal of Type I waste. The current Agreement expires on March 31, 2000. Waste
Management will honor the rates as specified in Section III -Compensation to Contractor through March 31, 2001.
Agreement 2 is for the disposal of Type IV waste. The current Agreement expires on March 31, 2000.. Waste
Management will honor the rates as specified in Section III -Compensation to Contractor through March 31•, 2001.
Please note that both AgreementswwaslihtI.adumnt anA12llllg�
On behalf of Waste Management, I look forward to continuing to work with the City throughout the coming year.
Please let me know if you need any further information.
Sincerely,
cha44
Charles Rivette, P.E.
Landfill District Manager
WASTE MANAGEMENT
South Texas Landfills Division
To: Mr. Phil Webb, City of La Porte
From: Chuck Rivette
Subject: Contract Extensions
•
FACSIMILE TRANSMITTAL
Date: March 20, 2000
Pages: 2, including this cover sheet.
Fax: 281-867-0892
Mr. Webb, attached find our letter offering to extend the current disposal contracts. Please let
me know if this is sufficient for this time. Also, I can courier over a clean copy if that is
necessary.
Thank you for working with us. Again, let me know if you need anything further.
Best regards,
RJ71 / -
Alle
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100 Genoa Red Bluff Road, Houston, Texas 77034, VOICE: (281) 922-0012, FAX: (281) 922-6159
• 0
0
REQUEST A CITY COUNCIL AGENDA ITEM
Agenda Date Requested: March 7 00
Requested By: Steve Gillett . ep ent: Public Works
XXX Report Resolution Ordinance
Exhibits: Bid recap Sealed Bids # 0798 - Concrete
SUMMARY & RECOMMENDATION
Advertised, sealed bids #0798 for the annual supply of concrete were opened and read on February 28, 2000. Bid
requests were mailed to nine (9) vendors with two (2) returning bids and one (1) bid received after the opening
date.
Low bid meeting specifications was submitted by Pioneer South Central, Inc. Using estimated yearly quantities,
this contract would be $26,200. There has not been a contract for this material over the past two years due to the
volatility of the concrete market. Vendors would not guarantee or hold their pricing for a period longer than one
month.
Staff' recommends award of the contract for the annual supply of concrete to Pioneer South Central, Inc, low
bidder meeting specifications. Adequate funds for this contract are budgeted in the FY 99/00 Street Maintenance
Operating Budget.
Action Required by Council: Award bid for the supply of concrete to Pioneer South Central, Inc, low
bidder meeting specifications.
Availability of Funds:
X General Fund_ Water/Wastewater
_ Capital Improvement General Revenue Sharing
Other
Account Number: 001-7071-5314015 Funds Available: X YES NO
Approved for City Council Agenda
QT 3- u-awla
Robert T. Herrera Date
City Manager
C,
BID TABULATION - BID #0798 - CONCRETE
PIONEVER
SOUTH
TRANSIT MIX
DESCRIPTION
OTY
CENTRAL
CONCRETE
1) CONCRETE - 5 SACK (CU. YD.)
200
$56.00
$56.50
TOTAL ITEM #1
$11,200.00
$11,300.00
2) CONCRETE - 6 SACK (CU. YD.)
250
$60.00
$59.00
TOTAL ITEM #2
$15,000.00
- $14,750.00
GRAND TOTAL
$20,200.00
926,050.00
Additional Charge for load < 6 yd
$15.00
$50.00
Environmental Fee per load
N/A
$5.00
Truck Time at jobsite after 1 hr (per min)
N/A
$1.00
Additional Charge for 1" or smaller
N/A
$1.00
BIDDER'S LIST
SEALED BID 00798 - CONCRETE
TRANSIT MIX CONCRETE
P. O. BOX 536
HIGHLANDS, TX 77562
HOUSTON SHELL & CONCRETE
P. O. BOX 4608
HOUSTON, TX 77210-4608
DORSETT BROTHERS
P.O. BOX 5766
PASADENA, TX 77508
NORTHWEST PAVING, INC.
P. O. BOX 10422
HOUSTON, TX 77206
SUPERIOR MUNICIPAL SERVICE
11510 BREMEN DRIVE
HOUSTON, TX 77066
BAYSHORE SUN PUBLISH DATES:
FEBRUARY 13, 2000 y
FEBRUARY 20, 2000
WHITE'S MINES
P. O. BOX 791550
SANTONIO, TX 78279-1550
PIONEER CONCRETE OF TEXAS
800 GESSNER #1100
HOUSTON, TX 77024
ABEL
850 GRAND AVENUE
BACLIFF, TX 77518
D & D.CUSTOM CRETE
617 SAN JACINTO
LA PORTE, TX 77571
CHAMBER OF COMMERCE
P.O. BOX 996
LA PORTE, TX 77572-0996
0 •
REQUEST FAITY COUNCIL AGENDA ITEM
Agenda Date Requested: March 27 2000
Requested By: S. Gill4epartment: Public Works 0k1
XX Report Resolution Ordinance
Exhibits: Bid Tabulation and Bidder's List
SUMMARY & RECOMMENDATION
Sealed bids were received on March 16. 2000 for the replacement of a grit separator at the Little Cedar Bayou
Wastewater Treatment Plant. Bid packages were sent to 12 bidders, with 3 returning bids. This equipment is
used at the Plant to remove grit and sand prior to the biological treatment process. It is original equipment
installed at the plant and has been in continuous operation for over 18 years.
Low bid was submitted by Schloss Engineered Equipment in the amount of $20,078. A total of $35,000 is
budgeted in the FY1999-2000 Capital improvement budget.
Action Required by Council: Award bid for replacement of grit separator to Schloss Engineered Equipment
in the amount of $20,078.
Availability of Funds:
General Fund_ Water/Wastewater
XX Capital Improvement General Revenue Sharing
Other
Account Number: 003-9890-786-1100 Funds Available: X YES NO
Approved for City Council Agenda
3�T lr� 3. 22,- Zap
Robert T. Herrera Date
City Manager
BID TABULATION
GRIT SEPARATOR - BID 00799
SCHLOSS
.ENGINEERED
WESTECH
WATERLINK
BAKER
KREBS
DESCRIPTION
CITY
EQUIPMENT
ENGINEERING
SEPARATIONS
PROCESS
ENGINEERS
GRIT SEPARATOR
1
$20,078.00
$23,492.00
$26,987.00
NO BID
NO BID
WARRANTY
18 MONTHS
18 MONTHS
14 MONTHS
DELIVERY
10 -12 WEEKS
60 DAYS
100 DAYS
0
0.
•
EIONCO PROCESS EQUIPMENT
PO BOX 300
SALT LAKE CITY, UT 84110
ENVIROTECH PUMP SYSTEMS
PO BOX 209
SALT LAKE CITY, UT 84101-0209
KREBS ENGINEERS
5505 WEST GILLETTE RD.
TUCSON, AZ 85743
SMITH & LOVELESS
14040 SANTA FE TRAIL DR:
LENEXA, KS 66215
WALKER PROCESS
840 N. RUSSELL AVE.
AURORA, IL 60506
WESTECH .
PO BOX 65068
SALT LAKE CITY, UT
BIDDER'S LIST
SEALED BID #0799
GRIT SEPARATOR
ENVIROQUIP
PO BOX 9069
AUSTIN, TX 78728-85-19
FMC CORD/MHS DIVISION
PO BOX 904
CHALIFANT, PA 18914
NEWMAN REGENCY GROUP
7320 ASHCROFT, SUITE 306
HOUSTON, TX 77081
US FILTER AERATOR PRODUCTS
11765 MAIN STREET
ROSCOE, ILL 61073
WATERLINK HYCOR
29850- N. HWY 41
LAKE BLUFF, IL 60044
HAWKINS & AFFILIATES
1426 STONE TRAIL DR.
84165-0068 SUGARLAND, TX 77479
CHAMBER OF COMMERCE
PO BOX 996
LA PORTE TX 77572-0996
BAYSHORE SUN PUBLISH DATES:
MARCH 1, 2000
MARCH 8, 2000
0 •
C
REQUEST FOWITY COUNCIL AGENDA ITEM •
Agenda Date Requested: March 27 20 0
Requested By: Steve Gill ent: Public Works
XX Report Resolution Ordinance
Exhibits: Bid Recap Sealed Bids #0797 - On -site Crushed Concrete
SUMMARY & RECOMMENDATION
Advertised, sealed bids for On -site Crushed Concrete Sealed Bids #0797 were opened and read on March 16,
2000. Bid requests were mailed to four (4) vendors with two (2) returning bids. Low bid meeting specifications
was submitted by Cherry Crushed Concrete at a cost of $6.85 per ton.
During the course of construction projects over the years, the City has accumulated approximately 4,000 tons of
concrete. This contract calls for the on -site crushing of this concrete. The resulting material will be used on
road bases instead of limestone. Limestone currently costs $16.09 per ton. By using this material, the city will
realize a savings of approximately $9.24 per ton and an overall savings of $36,960.00.
Staff recommends award of the contract for On -site Crushed Concrete to Cherry Crushed Concrete, low bidder
meeting specifications. Using estimated quantities, this contract would cost $27,400.00. Due to the uncertainty
of the exact amount, it is recommended that the City Council authorize up to $30,000 for this contract. Actual
tonnage will be weighed on certified scales as it is produced. Adequate funds for this expenditure is budgeted
in the Street Maintenance FY 99/00 Operating Budget.
Action Required by Council: Award bid for On -site Crushed Concrete to Cherry Crushed Concrete, low
bidder meeting specifications, in an amount not to exceed $30,000.
Availability of Funds:
X General Fund_ Water/Wastewater
_ Capital Improvement General Revenue Sharing
Other
Account Number: 00170715314015 Funds Available: X YES NO
Approved for City Council Agenda
L. -r'� 3 - t%- LcuJ
Robert T. Herrera Date
City Manager
BID TABULATION
ON -SITE CRUSHED. CONCRETE - BID #0797
CHERRY
SOUTHERN
CRUSHED
CRUSHED
DESCRIPTION
QTY
CONCRETE
CONCRETE
ON -SITE CRUSHED CONCRETE
4000
$6.85
TOTAL
$27,400.00
NO BID
ALTERNATE BID
4000
$13.38
Load and haul concrete to their
facilty, crush, and haul back
TOTALI*
$53,520.00
CJ
BIDDER'S LIST
SEALED BID #797
ON -SITE CRUSHED CONCRETE
ABLE DEMOLISHING
9638 TELEPHONE RD.
HOUSTON, TX 77075
PENETRATION SAWING & BREAKING
PO BOX 9579
WOODLANDS, TX 77387
CHAMBER OF COMMERCE
PO BOX 960
LA PORTE TX 77572-0960
CHERRY CRUSHED CONCRETE
1806 WOOTEN RD.
PEARLAND, TX 77581
SOUTHERN CRUSHED CONCRETE
14329 CHRISMAN ROAD
HOUSTON, TX 77039
BAYSHORE SUN PUBLISH DATES:
MARCH 1, 2000
MARCH 8, 2000
•
•
K
REQUEST FOR CITY,COUNCIL AGENDA ITEM
Agenda Date Requested: March 27, 2000
Requested By: Susan Kelley — Department: Purchasina
Report Resolution Ordinance
Exhibits: Bid Tabulation
Bidder's List
SUMMARY & RECOMMENDATION
The City of La Porte mailed thirteen (13) bid requests for the annual air conditioning/heating.
maintenance and repair contract to area air conditioning contractors. Bidders were asked to submit
pricing in two areas currently used at all locations:
1) Preventative Maintenance
2) Repair of Air Conditioning Units
Four (4) bids were received and low *bid was submitted by Beltway Air Conditioning.. The preventative
maintenance portion, including the optional chiller at the Fitness Center, is $19,228.96 annually and is
budgeted in each departmental budget having A/C equipment.
Repair costs will be billed at $42.50 per hour of labor, and cost'plus 35% for parts. Repair costs will
be paid by the department requesting the repair. Last year, approximately, $20,006 was spent on
repairs.
Sufficient. funds. have been budgeted in departmental accounts for these items.
Action Required by Council:
Authorize aware! of Annual Air Conditioning/Heating Maintenance and Repair Contract -to Beltway Air
Conditioning.
Availability of Funds:
XX General Fund
Capital Improvement
Other
Account Number Various
Approved for City Council Agenda
WaterMastewater
General Revenue Sharing
Funds Available: XX Yes No
3- zt-• Z���
Robert T. Herrera, City Manager
Date
BID TABULATION
A/C MAINTENANCE & REPAIR CONTRACT - BID #0775
BELTWAY AIR
A/C & HEATING
ECONOMY
DESCRIPTION
CONDITIONING
INC.
HEATING S A/C
CURRY, INC.
1) PREVENTATIVE MAINTENANCE
18,566.06
$24,643.05
26,286.00
$29,256
2) REPAIR RATE (HOURLY)
$42.50
$55.00
$39.00
$43.00
3) PARTS & SUPPLIES - COST PLUS PERCENTAGE
35%
< $150 - 45%
20%
25%
>$150.00 - 33%
OPTIONAL
ADDITIONAL CHARGE FOR MAINTENANCE OF
$662.90
NO BID
$1,500.00
$642.00
CARRIER 125 TON CHILLER (YEARLY)
•
BIDDER'S LIST
SEALED BID #0775
AIR CONDITIONING/HEATING MAINTENANCE & REPAIR
AIR -CARE SOUTHEAST, INC.
615 KANSAS
SOUTH HOUSTON, TX 77587
AIRE BY THARLING
1315 HOLLAND AVE
HOUSTON, TX 77029
BARRETTS AIR CONDITIONING
PO BOX 748
LA PORTE TX 77572-0748
COASTAL AIR CONDITIONING
704 WEST MAIN
LA PORTE TX 77571
ECONOMY HEATING & AIR CONDITIONING
PO BOX 80
LA PORTE TX 77572
MONUMENT MECHANICAL SERVICE
11718 ALAMO
LA PORTE TX 77571
T & L MECHANICAL
1118 E. SAN AUGUSTINE
DEER PARK TX 77536
CHAMBER OF COMMERCE
PO BOX 996
LA PORTE TX 77572-0996
AIR -VALUE, INC.
PO BOX 596
LA PORTE TX 77572-0596
ARVELL MOORE AIR CONDITIONING
PO BOX 912
LA PORTE TX 77572-0912
BELTWAY AIR CONDITIONING
5419 SYCAMORE
PASADENA TX 77503
CURRY, INC.
7558 DILLON
HOUSTON TX 77061
FINCH AIR CONDITIONING
2301 UNDERWOOD
LA PORTE TX 77571
ROBERTS A/C & HEATING
10435 CARLOW LANE
LA PORTE TX 77572
BAYSHORE SUN PUBLISH DATES:
FEBRUARY 6, 2000
FEBRUARY 13, 2000
Interggovernmental
Bm to ee Bene is
NTMI,
Pool
October 4, 2000
Louis Rigby
City of La Porte
604 W. Fairmont Parkway
LaPorte, Texas 77571
Dear Mr. Rigby,
Enclosed is your copy of the signed and fully executed application for Stop Loss coverage.
If you have any questions, please do not hesitate to contact your Field Service Representative, Joanna Benavides at
(512)719-6757.
Sincerely,
i
a ly
Underwriting Specialist
Enclosures
I
OR
1821 Rutherford Lane, Suite #300 Austin, Tx. 78754-5 15 1 800.348.7879 512.719.6500 Fax:512.719.6509
w w w. t m 1 i P. h n . n r o
HCC LIFE INSURANCE COMPANY
Administrative Offices:
111 Monument Circle, Bank One Tower, Suite 4540
Indianapolis, IN 46204
(Company, WE or US)
EXCESS REIMBURSEMENT POLICY
THIS IS A CLAIMS REIMBURSEMENT POLICY -PLEASE READ CAREFULLY
Policy Number:
Named Insured (Employer, Insured or YOU):
Principal Address:
Designated Third Party Administrator (TPA):
HCL20026
City of La Porte
604 W. Fairmont Parkway
LaPorte, TX 77571
TML Group Benefits Risk Pool
1821 Rutherford Lane, Suite 300
Austin, TX 787545151
This Policy is issued in consideration of YOUR Application and the payment of premiums. The attached
Application forms a part of this Policy.
The Effective Date of this Policy is 12:01 a.m., Standard Time and the Expiration Date.of this Policy is
11.59 p.m., Standard Time as shown. below at YOUR Principal Address.
Effective Date
Expiration Date
April 1, 2000
March 31, 2001
This Policy is issued by US as of the Effective Date, but is not valid unless countersigned by OUR duly
authorized representative.
President
Issued at Costa Mesa, California on September 26, 2000
Vice President and General Counsel
Authorized Representative
HCC 21000EP 4/00
•
•
IMPORTANT NOTICE
To obtain information or make a complaint:
You may call HCC Life Insurance
Company's toll -free telephone number for
information or to make a complaint at:
1-800-282-5892
You may also write to HCC Life Insurance
Company at:
P.O. Box 402032
Atlanta, GA 30384-2032
You may contact the Texas Department of
Insurance to obtain information on
companies, coverages, rights or complaints
at:
1-800-252-3439
You may write the Texas Department of
Insurance:
P. O. Box 149104
Austin, TX 78714-9104
FAX # (512) 475-1771
PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your
premium or about a claim, you should
contact HCC Life Insurance Company first.
If the dispute is not resolved, you may
contact the Texas Department of Insurance.
ATTACH THIS NOTICE TO YOUR
POLICY: this notice is for information only
and does not become a part or condition of
the attached document.
HCC-Complaints(4/99)TX
AVISO IMPORTANTE
Para obtener information o para someter
una queja:
Usted puede llmar al numero de telefono
gratis de HCC Life Insurance Company's
para informacion o para someter una queja
al:
1-800-282-5892
Usted tambien puede escribir a HCC Life
Insurance• Company:
P.O. Box 402032
Atlanta, GA 30384-2032
Puede comunicarse con el Departamento de
Seguros de Texas para obtener informacion
acerca de companias, coberturas, derechos o
quejas al:
1-800-252-3439
Puede escribir al Departamento de Seguros
de Texas:
P. O. Box 149104
Austin, TX 78714-9104
FAX # (512) 475-1771
ISPUTAS SOBRE PRIMAS O
RECLAMOS: Si tiene una disputa
concetniente a su prima o a un reclamo,
debe comunicarse con el la compania
primero, Si no se resuelve la disputa, puede
entonce's comunicarse con el departamento
(TDI)
UNA ESTE AVISO A SU POLIZA:
Este aviso es solo para proposito de
informacion y no se convierte en parte o
condicion del documento adjunto.
TABLE OF CONTENTS
ARTICLE1. SCHEDULE............................................................................................................................. 3
A. SPECIFIC EXCESS INSURANCE...............................................................................................3
B. AGGREGATE EXCESS INSURANCE........................................................................................ 3
C. OTHER PROVISIONS/FORMS ATTACHED.............................................................................. 3
ARTICLEII. DEFINITIONS........................................................................................................................4
ARTICLE III. SPECIFIC EXCESS INSURANCE....................................................................................... 5
ARTICLE IV. AGGREGATE EXCESS INSURANCE................................................................................. 5
ARTICLE V. LIMITATIONS OF COVERAGE............................................................................................ 6
ARTICLE VI. TERMINATION..................................................................................................................... 7
ARTICLE VII. CLAIMS PROVISIONS........................................................................................................ 7
ARTICLE VIII. MISCELLANEOUS PROVISIONS..................................................................................... 9
HCC 21000EP 4/00 2
FULL LEGAL NAME OF INSURED: City of La Porte EFFECTIVE DATE: April 1, 2000
ARTICLE I. SCHEDULE
A. SPECIFIC EXCESS INSURANCE
1) Attachment Point: $ 100,000.00
[X] Individual [ ] Family
2) Reimbursable Lifetime Maximum: $ 900.000.00
3) Coverage Form:
[ j Incurred in 12 Months and paid within 12 Months
[ J Incurred in 12 Months and paid within 15 Months
( ) Incurred in 12 Months
[ j Paid within 12 Months/_ day run-in
[X] Other: Paid
4) Rates (PER MONTH): Employee $9.23 Dependent (Family) 25.5 Composite N/A .
5) Supplementary Coverages: Prescription Drug Coverage (Rx) [X] Yes ( ] No
B. AGGREGATE EXCESS INSURANCE
1) Monthly Factor: $ 377.26 Composite Medical Coverage 48.80 PCS Coverage
2) Minimum Annual Aggregate Attachment Point: Twelve times the Aggregate Monthly Factor times the number of
Covered Units based on the first month's actual enrollment.
3) Limit of Liability: 100% of payments made by YOU in excess of the Annual Aggregate Attachment Point to a
maximum of $1,000,00300
4) Coverage Form: 4.A) Coverage Form:
[X] Standard [ ] Incurred in 12 months and paid within 12 months
(] Mthly Deductible Advance Reimbursement [ ] Incurred in 12 months and paid within 15 months
[ ) Terminal Liability ( ] Paid within 12 months/_ day run-in
[X) Other: Paid
5) Supplementary Coverages:
Yes No
[ ) [X] Vision
[ ] [X] Dental
[ J [X] Weekly Income
[X] [ ] Other PCs
6) Rates (PER MONTH): Per Employee $ 4.72
Monthly Deductible Advance Reimbursement Per Employee $ N/A
Annual Minimum and Deposit Premium $ N/A
OTHER PROVISIONS/SPECIAL RISK LIMITATIONS:
��+-�-�A �►•%-,SRO_
Da1� s
For HCC Wwoww%w'" _ se Only: ACCEPTANCE
Accepted on behalf of the Company. this L day of 200_0
By WERWRITING ACCEPTANCE ONLY Title
Policy No.: �tCC.I.�OC2�,�0 Effective Date: u00 Expiration Date:
(12:01 A.M. EASTERN STANDARD TIME 11:59 P.M.) _G �. , V E D
HCC 21000EP 4/00
J U L b 7 2000
0 •
ARTICLE II. DEFINITIONS
AGGREGATE MONTHLY FACTOR means the amount specified in the Schedule.
ANNUAL AGGREGATE ATTACHMENT POINT means for a Policy Year the greater of the cumulative total of
the number of Covered Units within the Policy Year times the Aggregate Monthly Factor or the Minimum
Annual Aggregate Attachment Point.
COMPLETE CLAIMS HISTORY means participant census, eligibility information, and claims experience
reports f& a minimum of twelve consecutive months immediately preceding the Policy Year (or Renewal
Policy Year) including, but not limited to large claim disclosures and prescription drug charges.
COVERED FAMILY means the employee and his or her dependents covered under the Plan.
COVERED PERSON means an individual covered under the Plan.
COVERED UNITS means an employee, an employee with dependents, or such other defined unit as agreed
upon between YOU and US in writing.
ELIGIBLE means eligible under the Plan.
EMPLOYER or YOU or INSURED means the named insured.
LIFETIME MAXIMUM means the amount specified in the Schedule and is the maximum amount WE will
reimburse YOU with respect to any Covered Person under this and any prior or subsequent Policies issued
by US, but not more than the Lifetime Maximum specified in the Plan Document. Amendment or adoption of
a new Plan shall not reinstate the Lifetime Maximum.
MEDICALLY NECESSARY means that the procedure, treatment, service, supply, equipment drug or
medicine is: (1) appropriate and essential for the diagnosis or treatment of the Covered Person's symptoms,
(2) within the scope, duration or intensity of that level of care which is required to provide safe, adequate and
appropriate diagnosis or treatment, and (3) is in accordance with generally accepted current professional
medical practice and is not considered experimental or investigational.
MINIMUM ANNUAL AGGREGATE ATTACHMENT POINT means twelve times the Aggregate Monthly
Factor times the number of Covered Units based on the first month's actual enrollment.
NET PAID CLAIMS means Plan Benefits Paid less specific reimbursements to YOU.
PAID means an expense is deemed paid when the draft or check has been issued by the Plan during the
time period specified for the payment of PLAN BENEFITS, is received by the payee not later than thirty (30)
calendar days after the end of such time period and is honored upon presentation.
PLAN means the medical. benefits YOU have agreed to provide under a plan of benefits for YOUR eligible
employees and their eligible dependents, subject to the Employee Retirement Income Security Act of 1974,
as may be amended.
PLAN BENEFITS means the total amount of medical expense benefits to which Covered Persons become
entitled under the Plan during the Policy Year for Renewal Policy Year) which are (1) incurred after the
Effective Date of this Policy, (2) incurred while this Policy is in force, and (3) Paid during the Policy Year (or
Renewal Policy Year). Expenses unpaid at the end of the Policy or Renewal Policy Year may be Paid during
a Renewal Policy Year subject to the Specific Attachment Point or Annual Aggregate Attachment Point in
effect on the date Paid. Plan Benefits do not include deductibles, co-insurance amounts, interest, expenses
or claims which are not covered under the terms of the Plan or which are reimbursable from any other
source. A Plan expense is incurred at the time the service is rendered or the supply is provided.
HCC 21000EP 4/00
•
PLAN DOCUMENT means the written document evidencing YOUR Plan including any amendments. YOU
will provide US with a copy of YOUR Plan Document in effect as of the Effective Date. Amendments are
subject to Article V, Section D. 2 and Article VIII, Section K.
POLICY YEAR means the twelve (12) consecutive months beginning on the Effective Date and ending on the
Expiration Date, or the actual period of -time during which the Policy is in force, if the Policy terminates prior to
the Expiration Date.
RENEWAL POLICY YEAR means the twelve (12) consecutive months the Policy Year is continued beyond
the Expiration Date, or the actual period of time during which the Renewal Policy is in force, if the Renewal
Policy terminates prior to the Expiration Date.
SCHEDULE means the Schedule of Excess Insurance set forth in Article I of this Policy or in a Renewal
Certificate.
SPECIFIC ATTACHMENT POINT means the amount specified in the Schedule. A Family Specific
Attachment Point is one attachment point that applies to two or more individuals who are members of the
same Covered Family. A Family Specific Attachment Point is only applicable if selected and identified on the
Schedule.
UNDERWRITING MANAGER means HCC Benefits Corporation, 225 TownPark Dr, Suite 200, Kennesaw,
GA 30144.
ARTICLE Ill. SPECIFIC EXCESS INSURANCE
A. Subject to the terms, conditions and limitations of this Policy, WE will reimburse YOU for Plan Benefits
Paid in excess of the Specific Attachment Point.
B. If two or more Covered Persons who are members of one Covered Family incur medical expenses for
injuries resulting from the same accident, one Specific Attachment Point will apply to the total medical
expenses incurred as a result of that accident during the Policy Year in which the accident occurred.
C. WE will not reimburse YOU for the Plan Benefits incurred after the date of termination.
D. If the'Policy terminates before the Expiration Date, Plan Benefits Paid after the date of termination are
not covered.
ARTICLE IV. AGGREGATE EXCESS INSURANCE
A. Subject to the terms, conditions and limitations of this Policy, WE will reimburse YOU for Plan Benefits
Paid, less (i) the Annual Aggregate Attachment Point, and (ii) Specific Excess reimbursements due or
Paid to YOU.
B. WE will not reimburse YOU for Plan Benefits incurred after the date of termination.
C. If the Policy terminates before the Expiration Date, Plan Benefits Paid after the date of termination are
not covered.
D. Reimbursement under this Article for any Covered Person or Covered Family will be limited to an amount
not to exceed the Specific Attachment Point as set forth in the Schedule of Excess Insurance, for each
Individual or Family.
HCC 21000EP 4100
ARTICLE V. LIMITATIONS OF COVERAGE
A. This Policy is between YOU and US. No other person has any rights under the Policy.
B. Coverage for expenses incurred for an employee who is not actively at work as a result of sickness,
accidental bodily injury, maternity, military service or personal reasons (either before or after the effective
date of the Policy), unless the employee is receiving continuation benefits under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA) shall be limited to the lesser of the length of time
specified in the Plan Document or twelve (12) months following the last day actively at work.
C. WE will not reimburse YOU more than the lesser of the amount specified in the Plan Document or
$100,000 lifetime per each Covered Person for expenses of any treatment for drug abuse or alcohol
abuse.
D. EXCLUSIONS
WE will not reimburse YOU for:
1. Expenses incurred while the Plan is not in force with respect to the Covered Person.
2. Expenses covered by amendments to the Plan incurred prior to OUR written approval of such
amendments, notwithstanding the fact that such an amendment may be required by law.
3. Expenses resulting from Loss of Income, Dental, Vision or Hearing Care or any Prescription Drug
coverage, unless such coverage is specifically added by endorsement to this Policy.
4. Expenses resulting from losses which are due to a riot, revolt, war, or any act of war, whether
declared or not.
5. Expenses for cosmetic surgery unless specifically stated as covered medical expenses in the Plan
Document.
6. Expenses for services furnished by or for the United States Government or any other government,
unless payment is legally required.
7. Expenses for any illegal service rendered or unlawful supplies furnished.
8. Expenses for injuries incurred during the commission or an attempted commission of any criminal or
illegal act: (i) involving the use of drugs or alcohol, including but not limited to driving while under the
influence of an illegal substance or alcohol, or (ii) involving violence or the threat of violence to
another person, or (iii) in which a firearm, explosive or other weapon likely to cause physical harm or
death, is used by the Covered Person. OUR determination that this exclusion applies shall not be
affected by any subsequent official action or determination with respect to prosecution of the
Covered Person including, without limitation, acquittal or failure to prosecute in connection with the
acts involved.
9. Expenses for services, supplies or fees which we determine to be: (i) billed in excess of the usual
and customary charges for the locality where administered or provided ; or (ii) in excess of the Plan
benefits; or (iii) not medically necessary.
10 Expenses for benefits to which the Covered Person is entitled under any Workers Compensation or
Occupational Disease Law, whether or not any coverage for such benefits is actually in force.
11. Expenses incurred by retired employees or their dependents unless such coverage is specifically
added by endorsement to this Policy.
HCC 21000EP 4100
0 0
12. Costs of the administration of claims, expenses of litigation or other adjudicatory process including,
but not limited to, costs of defense, fees, interest and liability for punitive or exemplary or
extracontractual damages.
13. Liability or obligations assumed by YOU under any contract or service agreement other than the
Plan.
ARTICLE VI. TERMINATION
The Policy will terminate upon the earliest of the following:
A. Except as provided in Article Vill. MISCELLANEOUS PROVISIONS, Section C, at the end of any period
for which the premium is paid.
B. The premium due date after YOU give US written notice of cancellation. If YOU cancel within 30 days
after the Effective Date, YOU may ask for a full refund of the premium, and if YOU do so, the Policy will
be canceled as of the Effective Date. If YOU cancel the Policy after more than 30 days, WE are entitled
to retain the premium paid to the date of termination. WE will not refund any minimum premium shown in
the Schedule.
C. The Expiration Date of the Policy.
D. As of the Effective Date if YOU fail to provide US not later than 60 days after the Effective Date with any
information or materials requested by US, or if YOU fail to comply during such 60 day period with any
conditions imposed by US at the time the Policy is issued or renewed, our liability will be limited to return
of the premium paid by YOU after deducting the amount of any reimbursements made by US to YOU
prior to the time the Policy is terminated. If the amount of expenses reimbursed to YOU exceeds the
premium paid to US, YOU will pay US the difference.
E. The date the Plan terminates.
F. The date the administrative agreement between YOU and YOUR TPA terminates, unless WE consent in
writing to YOUR designation of a successor TPA.
G. The last day of the third consecutive month during which the number of employees enrolled in the Plan is
less than 26.
ARTICLE VII. CLAIMS PROVISIONS
A. SPECIFIC CLAIMS:
CLAIM FILING: YOU must file a complete claim request for reimbursement with US on OUR
customary Notice/Proof of Loss form within 90 days after the date the claim which exceeds the
Attachment Point is received. A complete claim will include, at a minimum: (a) the signed and dated
Notice/Proof of Loss form, (b) enrollment information sufficient to clearly establish eligibility under
YOUR Plan, including date of hire, date eligible under the Plan, other insurance information and
disability or Leave of Absence date, if applicable, (c) Paid claim information, either in report or bill
foimat, and (d) reports of any investigations done regarding subrogation, workers compensation, or
employee disability status. The request for reimbursement will be deemed to be filed on the date on
which all of the information necessary for a complete claim is received by our Underwriting Manager.
2. LATE CLAIMS: YOUR failure to file a complete claim within 90 days after the date the claim is
received will result in an adjustment of OUR payment to YOU to reflect any savings WE could have
obtained had timely Claim Filing taken place pursuant to this Article. Any claim submitted more than
HHCC V000EP 4/00
90 days after the last date which a claim can be Paid under the terms of this Policy will be denied,
whether or not the delay has prejudiced the COMPANY
3. 50% NOTIFICATION: YOU must give notice to US when expenses have been reported to you on a
Covered Person that equal fifty percent (50%) of the Specific Attachment Point. YOUR failure to give
prompt notice may result in an adjustment of OUR payment to YOU to reflect any savings WE could
have obtained had prompt 50% Notification been given.
4. CLAIMS ADVANCE: WE may advance to YOU a claim payable under this Policy provided all the
following conditions are met:
a. The Claim is eligible for reimbursement under this Policy;
b. YOU have Paid an amount equal to the Specific Attachment Point;
c. The amount of Plan Benefits applicable to the claim has been calculated within the time period
specified for the payment of Plan Benefits;
d. YOU agree that the Claim Advance will be used solely for payment of those Plan Benefits for
which the advance was requested and that the claim will be Paid immediately upon receipt of the
advance;
e. The request for a Claim Advance is made not later than 30 days after the expiration of the time
period specified for the payment of Plan Benefits; and
f. The request for a Claim Advance must be made more than 30 calendar days before the
expiration of the Policy Year.
B. AGGREGATE CLAIMS:
1. CLAIM FILING: YOU must file a request for reimbursement with US on OUR customary Notice/Proof
of Loss form within 90 days after the end of the time specified for payment of claims under this
Policy. Your failure to file any claim within 90 days will result in claim denial, whether or not the delay
has prejudiced the COMPANY.
2. DETERMINATION OF THE ULTIMATE AGGREGATE CLAIM: At the end of the Policy Year (or
Renewal Policy Year), YOU must submit a Proof of Loss within 90 days of the end of the Policy Year
(or Renewal Policy Year) showing the sum of all Plan Benefits eligible under the Plan and this Policy
which YOU have Paid during the Policy Year (or Renewal Policy Year). These shall be compared to
the greater of the Annual Aggregate Attachment Point or the Minimum Annual Attachment Point. If
the sum of Paid Benefits is greater than the appropriate Aggregate Attachment Point and Specific
reimbursements due or Paid to YOU, we will pay YOU the amount of the excess less any amounts
advanced under this ARTICLE VII.
C. ALL CLAIMS:
REIMBURSEMENT OF CLAIMS: Prior to making any payment, WE have the right to review each
claim submitted to US to determine if YOU are entitled to an advance or a reimbursement. This
review may include, but is not limited to, an on site audit or requests for additional documentation.
YOU warrant that YOU have paid the providers of services and supplies for which reimbursement is
sought or that any funds advanced to YOU will be used. to pay the providers of services and supplies
for which an advance is requested.
2. SETTLEMENT OF PLAN CLAIMS: WE have no duty to settle or adjust claims filed under YOUR
Plan.
3. COST CONTAINMENT PROGRAM: WE have the right to participate, at OUR option and expense, in
any savings or cost containment program that YOU have in place. If no such program exists, we
have the right to retain the services of a third party to implement a cost containment program, and to
offset the cost of that program against any payment which may be due you under this Policy.
4. RECOVERIES: YOU agree to pursue all of YOUR rights of recovery against others for any and all
claims Paid under'this Policy. YOU will notify US of any such rights and any action YOU intend to
take to enforce such rights. YOU will share with US pro-rata any such recovery, net of expenses,
HCC 21000EP 4/00
based on the ratio that OUR claim payment to YOU bears to the total claim amount. Specific claim
payments and aggregate claim payments will be considered separately.
5. SUBROGATION: If YOU fail to pursue YOUR rights of recovery, WE may do so. WE are
subrogated to any and all of YOUR rights to recover from others under the Plan. WE will deduct from
any recovery OUR expenses and the claim amount Paid to YOU. WE will pay YOU the balance of
the recovery.
6. OTHER PAYMENTS: WE may elect to reduce any reimbursement which may be payable to YOU, to
the extent of a payment made by a third party or insurer to the Covered Person. This provision is
applicable irrespective of how such payment is characterized and whether or not payment has been
by a third party or insurer for all of the Covered Person's losses.
INSOLVENCY: In the event of YOUR insolvency or bankruptcy, and upon receipt of Proof of Loss,
WE may pay to YOUR receiver, trustee, liquidator or legal successor amounts otherwise payable
under this Policy had YOU first Paid the covered Plan Benefits. WE will make such payments only if
YOU have Paid all required premiums and have complied with YOUR obligations under this Policy.
Nothing in this Section shall increase OUR liability beyond that which would have existed had YOU
not become insolvent or bankrupt.
TERMINATION DURING THE POLICY YEAR: If this Policy terminates during the Policy Year (or
Renewal Policy Year), the date of termination becomes the end of the Policy Year (or Renewal
Policy Year).
ARTICLE VIII. MISCELLANEOUS PROVISIONS
A. PREMIUM DUE DATE: Premiums are due on the first day of each calendar month. If the Effective Date
is other than the first day of a calendar month, the first month's premium will be pro -rated.
B. PAYMENT OF PREMIUMS: Each premium is payable to US c/o HCC Benefits Corporation, P.O. Box
402032, Atlanta, GA 30384-2032 or such other place as WE designate in writing.
C. GRACE PERIOD: A grace period of 31 days is allowed for the payment of each premium after the first
premium. If the premium is not paid during the grace period, the Policy will terminate without further
notice as of the premium due date.
D. ENTIRE AGREEMENT: This Policy and YOUR attached Application are the entire agreement between
YOU and US. WE have relied upon the underwriting information (including Complete Claims History and
the Plan Document) provided by YOU in issuing this Policy and YOU represent such information is
complete and accurate. Should WE later learn such information was incomplete or incorrect, WE have
the right to modify the Policy as of the Effective Date to reflect the complete or correct information or to
terminate the Policy on written notice as of the next premium due date.
E. CONCEALMENT OR MISREPRESENTATION: This Policy is issued based upon our understanding that
YOU have provided Complete Claims History. The Policy will be voidable if, before or after a claim or
loss, YOU have concealed or misrepresented any material fact or circumstance concerning this coverage
or the Plan's claims history, whether intentional or not. OUR liability will be limited to return of the
premium paid by YOU after deducting the amount of the reimbursements made by US to YOU prior to
the date of termination. If the amount of expenses reimbursed to YOU exceeds the premium paid to US,
YOU will pay US the difference. If WE discover that you have not provided the Complete Claims History
we may, at our option, either rescind the policy or reform the coverage, using complete claims data.
F. RENEWAL: This Policy may be renewed for one year. The renewal. terms will be set forth in the
Renewal Certificate issued by US. Provided YOU furnish US on a timely basis with the information WE
HCC 21000EP 4/00
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need to offer a renewal, WE will give YOU 30 days written notice before WE change any premium rates,
terms and conditions. WE will not offer a renewal if WE cease doing business with YOUR TPA.
G. POLICY NONPARTICIPATING: This Policy is nonparticipating and does not entitle YOU to share in OUR
earnings.
H. RECORDS: YOU will maintain such records as may be required by US for this Policy and will make
them available on OUR request. These records may include but are not limited to the Complete Claims
History. WE may audit YOUR records relating to this Policy and claims filed under the Plan at any time
during the Policy Year and for two (2) years after the date of termination of such Policy YOUR records
include records held by YOU or by YOUR TPA. As a result of any audit, WE may readjust rates, factors,
premiums, attachment points or expenses as may be necessary to reflect OUR original intent in
underwriting this Policy.
I. CLERICAL ERROR: Clerical error whether by YOU or US in creating or maintaining records or
calculating rates, factors, premiums, attachment points or claims pertaining to this Policy will not
invalidate coverage provided under this Policy. No such error, however, will expand OUR obligations
under this Policy. A clerical error is a mistake in performing a clerical function such as typing but does
not include intentional acts or the failure to comply with the provisions of the Plan or Policy.
J. CHANGES: Only an officer of the COMPANY or an officer of OUR Underwriting Manager has the
authority to alter this Policy, or to waive any of OUR rights or requirements, and then only by written
endorsement.
K. AMENDMENTS TO PLAN: YOU must give US at least 30 days written notice of any proposed
amendments to YOUR Plan. No changes in Plan Benefits are binding on US until WE have approved
the amendment in writing.
L. YOUR DESIGNATED THIRD PARTY ADMINISTRATOR (YOUR TPA): WE agree to recognize YOUR
TPA as YOUR agent and attorney -in -fact for the administration of YOUR Plan. YOU agree that:
YOUR TPA is YOUR agent and attorney -in -fact, and is not OUR agent or the agent of OUR
Underwriting Manager. YOU authorize YOUR TPA to act in your name, place and stead for
purposes of this Policy, including, without, limiting the foregoing. submitting proofs of loss, certifying
the payment of claims, transmitting reports and payments of premiums to US in care of our
Underwriting Manager, and receiving payments from US. Payments by US to YOUR TPA are
payments to YOU. Payments by YOU to YOUR TPA will be payments to US only to the extent WE
actually receive them.
2. WE reserve the right to cease doing business with YOUR TPA.
3. YOUR TPA is responsible for administering YOUR Plan, preparing reports as required by US and
keeping and making available to US such data as WE may require.
4. YOUR TPA will perform such duties and keep such records as are required for YOU to comply with
this Policy.
5. YOU will pay YOUR TPA for all administrative functions performed in relation to this Policy.
M. NOTICE: Notice under this Policy will be given to YOU through YOUR TPA and will be deemed to have
been received by YOU.
N. DISCLAIMER: WE act only as an insurer to YOU. WE are not a fiduciary or party in interest to the Plan
or any Plan participant. WE do not assume any duty to perform any of the functions or provide any of the
reports required by the Employee Retirement Income Security Act of 1974, as amended, or any other
applicable state or federal law.
HCC 21000EP 4100 10
• 0
0. INDEMNIFICATION, DEFENSE AND HOLD HARMLESS: YOU agree to indemnify, defend and hold US
and OUR Underwriting Manager harmless from any liability, including, but not limited to, interest,
penalties, attorneys fees, extra contractual, exemplary or punitive damages ("expenses") arising from or
related to:
1. Any negligence, error, omission, defalcation or intentional acts by YOUR TPA;
2. Any dispute involving a Covered Person, former Covered Person or any person claiming entitlement
to benefits under the Plan, if such dispute does not arise as a result of OUR sole negligence or
intentional wrongful acts; or
3. Any State premium taxes WE are assessed with respect to funds paid to or by YOU under YOUR
Plan, except any taxes on amounts paid to US as premiums for this Policy.
WE or OUR Underwriting Manager will promptly notify YOU upon discovery of matters to which
YOUR obligations under this Section 0 apply. We have the right to participate in the defense at
OUR expense. Without limiting the foregoing, if YOU fail to defend timely, WE have the right, but not
the duty, to defend and to compromise or settle the claim or other matter on YOUR behalf, for YOUR
account, and at YOUR risk.
P. OFFSET: WE may offset payments due YOU under this Policy against claims overpayments, cost
containment charges and premiums due and unpaid.
Q. ASSIGNMENT: YOU may not assign any of YOUR rights under this Policy without OUR prior written
consent.
R. ENDORSEMENTS: Any endorsements attached or subsequently issued are a part of this Policy.
S. ENROLLMENT CHANGES: If your enrollment changes by 15% or more as compared to the enrollment
figures as identified in paragraph 6. of the Application, WE reserve the right to adjust the rates and
factors to reflect the change in enrollment, retroactive to the date of the change in enrollment.
T. ARBITRATION: Any controversy or dispute, involving US or OUR Underwriting Manager, arising out of
or relating to this Policy shall be settled by arbitration in accordance with the rules of the American
Arbitration Association. Judgment upon the award rendered by the arbitrators may be entered in any
court having jurisdiction. This provision shall survive the termination of this Policy.
U. GOVERNING LAW: This policy shall be construed and governed in accordance with the insurance laws
of YOUR State.
HCC 21000EP 4/00 11
•
•
HCC LIFE INSURANCE COMPANY
EXCESS REIMBURSEMENT POLICY
ENDORSEMENT
Policy Number: HCL20026 Endorsement Number: I
Issued To: City of La Porte
Effective Date: April 1, 2000
TEXAS AMENDATORY ENDORSEMENT
YOU and WE agree that the Policy is amended as follows:
Paragraph T of ARTICLE VIII MISCELLANEOUS PROVISIONS is amended to read as follows:
T. ARBITRATION: Any controversy or disputes arising out of or relating to this Policy may be
settled through the use of arbitration if YOU and WE mutually agree to do so. If YOU and WE
elect arbitration it shall be governed in accordance with the rules of the American Arbitration
Association. Judgment upon an award rendered by the arbitrator may be entered in any court
having jurisdiction. This provision shall survive the termination of this Policy, but shall not in
any way, prevent YOU or WE from the right to have such conflicts adjudicated before a court
of appropriate jurisdiction should arbitration not be elected.
THERE ARE NO POLICY CHANGES UNDER THIS ENDORSEMENT
OTHER THAN STATED ABOVE.
Authorized Representative
Dated: September 26, 2000
HCC 402 4/00 TX
0 •
HCC LIFE INSURANCE COMPANY
EXCESS REIMBURSEMENT POLICY
ENDORSEMENT
Policy Number: HCL20026 Endorsement Number: 2
Issued To: City of La Porte
Effective: April 1, 2000
SUPPLEMENTARY AGGREGATE COVERAGES
The INSURED and the COMPANY agree that Plan Benefits incurred under any of the following Supplementary coverages
which are checked are eligible for reimbursement under the Aggregate Excess Insurance provisions of this Policy only.
[ ] 1. Vision Plan.
[ ] 2. Dental Plan.
[ ] 3. Weekly Income Benefits.
[X] 4. Other: PCS
THERE ARE NO POLICY CHANGES UNDER THIS ENDORSEINIENT OTHER THAN STATED ABOVE.
HCC LIFE INSURANCE COMPANY
Authorized Signature
Dated: September 26.2000
HCC 2100 4/00
0 •
HCC LIFE INSURANCE COMPANY
EXCESS REIMBURSEMENT POLICY
ENDORSEMENT
Policy Number: HCL20026
Issued To: City of La Porte
Effective: April 1, 2000
Endorsement Number: 3
PRESCRIPTION DRUG COVERAGE
The INSURED and the COMPANY agree that Plan Benefits incurred for Prescription Drug Coverage are eligible for
reimbursement.
THERE ARE NO POLICY CHANGES UNDER THIS ENDORSEMENT OTHER THAN STATED ABOVE.
HCC LIFE INSURANCE COMPANY
Authorized Signature
Dated: September 26, 2000
HCC 2101 4/00
0 .
HCC LIFE INSURANCE COMPANY
EXCESS REIMBURSEMENT REINSURANCE POLICY
ENDORSEMENT
Policy Number: HCL20026 Endorsement Number: 4
Issued To: City of La Porte
Effective: April 1, 2000
(BLANK ENDORSEMENT FOR MANUSCRIPT CHANGES)
The INSURED and the COMPANY agree that this Policy is amended as follows:
PAID
AGGREGATE EXCESS REINSURANCE
The INSURED and the COMPANY agree that ARTICLE IV AGGREGATE EXCESS INSURANCE is amended to include
the following:
Plan Benefits which are incurred prior to the Effective Date of this Policy and which are Paid while this Policy is in
force will be included in calculating the Plan Benefits paid under this ARTICLE IV.
THERE ARE NO POLICY CHANGES UNDER THIS ENDORSEMENT OTHER THAN STATED ABOVE.
HCC LIFE INSURANCE COMPANY
Authorized Signature
Dated: September 26, 2000
HCC 2308 4/00
0 •
HCC LIFE INSURANCE COMPANY
EXCESS REIMBURSEMENT REINSURANCE POLICY
ENDORSEMENT
Policy Number: HCL20026 Endorsement Number: 5
Issued To: City of La Porte
Effective: April 1, 2000
(BLANK ENDORSEMENT FOR MANUSCRIPT CHANGES)
The INSURED and the COMPANY agree that this Policy is amended as follows:
PAID
SPECIFIC EXCESS REINSURANCE,
The INSURED and the COMPANY agree that ARTICLE III SPECIFIC EXCESS INSURANCE is amended to include the
following:
Plan Benefits which are incurred prior to the Effective Date of this Policy and which are Paid while this Policy is in
force will be included in calculating the Plan Benefits paid under this ARTICLE III.
THERE ARE NO POLICY CHANGES UNDER THIS ENDORSEMENT OTHER THAN STATED ABOVE.
HCC LIFE INSURANCE COMPANY
X,111,�D� �
Authorized Signature
Dated: September 26, 2000
HCC 2308 4/00
HCC LIFE INSURANCE COMPANY
Administrative Offices:
111 Monument Circle, Bank One Tower, Suite 4540
Indianapolis, IN 46204
(Company, WE or US)
APPLICATION FOR EXCESS REIMBURSEMENT POLICY
A CLAIMS REMMURSEMENT POLICY
1. Full legal name of Insured (Employer, YOU)
City of La Porte
(As it will appear in the Policy)
Principal Office 604 W. Fairmont Parkway La Porte TX 77571
(Street) (City) (State) (Zip)
2. Nature of Business
3. If this Policy is to cover the Employer's liability for employee benefit plans of subsidiary or affiliated companies (companies
under common control through stock ownership, contract, or otherwise), attach the legal names and addresses of such
companies and the nature of their business.
4. A. If presently self -insured, full name of Employer's Employee Benefit Plan:
B. If presently insured: Insurer:
Policy #:
Description of such plan(s) as currently amended must be attached to this Application. If the Plan Document has
not been adopted, an Employer Interim Adoption Agreement must be completed and attached to this Application.
5. COVERAGES REQUESTED
A. SPECIFIC EXCESS INSURANCE
1) Attachment Point: $100,000.00
[X] Individual [ ] Family
2) Reimbursable Lifetime Maximum: $ 900,000.00
3) Coverage Form:
[ J Incurred in 12 Months and paid within 12 Months
( ] Incurred in 12 Months and paid within 15 Months
( ] Incurred in 12 Months
[ J Paid within 12 Months/ day run-in
[XI Other: Paid
4)
Supplementary Coverages
Yes No
M, [ ] Prescription Drug Coverage
RECEIVED
J U L 0 7 2000
HCC 21000EP 4/00 Page l oN UNDERWRITING
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B. AGGREGATE EXCESS INSURANCE (AVAILABLE ONLY WITH SPECIFIC)
t) Monthly Factor: S377.26 Medical Coverage $48.80 PCS Coverage . Minimum Annual Aggregate
Attachment Point will be based on the first month's actual enrollment.
2) Limit of Liability: 1009-Ia of payments made by Employer in excess of the Annual Aggregate Attachment
Point to a maximum of S 1,000,000.00.
3) Coverage Options: (X] Standard [ I Advance Funding Option [ J Termination Liability
3) A) Coverage Form: ( J Incurred in 12 Months and paid within 12 Months
( J Incurred in 12 Months and paid within 15 Months
[ J Incurred in 12 Months
( J Paid within 12 Months/ day run-in
M. Other: Paid
4) Supplementary Coverages:
Yes No
( J [XI Vision
[ J [XI Dental
[ J [XI Weekly Income
[XJ [ J Other PCS
6. S 8,943.25 accompanies this Application as the initial premium deposit based on the final number of 366
Employees of which 235 have Dependent Units._ This deposit does not bind coverage.
7. Requested Effective Date: 0. 101/2000
8. Requested Endorsements
9. The Employer appoints (list all designated TPAs) TLML Group Benefits. Risk Pool to act as its Designated Third -Pam
Administrator ("TPA").
10. The Employer agrees and understands that the TPA is its agent and attorney -in -fact, and is not the agent of the Company or its
Underwriting Manager. The Employer authorizes the TPA to act on its behalf for purposes of the coverage applied for. The
Employer fin-ther agrees and understands that the Company may pay a commission to the TPA or a licensed insurance broker
or agent for placing this coverage.
11. THE EMPLOYER HAS READ THE FOREGOING AND UNDERSTANDS AND AGREES WITH THE TERMS AND
CONDITIONS OF THE COVERAGE APPLIED FOR. THE EMPLOYER REPRESENTS THAT IT HAS FORMED ITS
EMPLOYEE BENEFIT PLAN N COMPLIANCE WITH AND N RELIANCE ON THE APPLICABLE PROVISIONS OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED. THE EMPLOYER AGREES
THAT THE STATEMENTS N THIS APPLICATION OR N ANY MATERIALS SUBMITTED WITH THIS
APPLICATION OR ATTACHED TO IT ARE REPRESENTATIONS OF THE EMPLOYER AND SHALL BE DEEMED
MATERIAL TO ACCEPTANCE OF THE RISK BY THE COMPANY AND THAT THIS POLICY IS ISSUED BY THE
COMPANY IN RELIANCE ON THE TRUTH AND ACCURACY OF SUCH REPRESENTATIONS.
Signed at LC1_ ?CYoe. , -K , the 16- k day of d 'lt' , 20 00
(City, State)
Employei: ZViv of ba Porte
cy rint or Type Name)
Bv:
Signature e
Title: %2/,PLcmt of A _l1/V1��_d71'w J&-v1c65
Signature
THE APPLICATION DOES NOT BIND COVERAGE. Upon approval of the application, the Policy evidencing
that the coverage is in force will be issued by the Company through its Underwriting Manager, HCC Benefits
Corporation. Coverage will commence on the Effective Date set forth in the Policy.
RECEIVED
HCC 21000EP 4l00 Page 2 of 2
J U L 0 7 2960
UNDERWRITING