HomeMy WebLinkAbout442 04-10-1973ORDINANCE NO.442
AN ORDINANCE APPROVING A RESOLUTION BY TRINITY
RIVER AUTHORITY OF TEXAS AUTHORIZING THE
ISSUANCE OF TRINITY RIVER AUTHORITY OF TEXAS
(TARRANT COUNTY WATER PROJECT) REVENUE BONDS,
SERIES 1973, $19750,000, AND DECLARING AN
EMERGENCY
WHEREAS, Trinity River Authority of Texas is about to
adopt a resolution in the form attached hereto; and
WHEREAS, said resolution should be approved by the
City of Euless, Texas; and
WHEREAS, this ordinance must be passed as an emergency
measure;.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF EULESS:
Section 1, That the proposed resolution authorizing
the Trinity River Authority of Texas (Tarrant County Water
Project) Revenue Bonds, Series 1973, in the principal amount
of $1,750,000, in the form attached, is hereby in all things
approved.
Section 2, That this ordinance is hereby declared to be
an emergency measure and is passed as such for the immediate
preservation of the public peace, health or safety of the citi-
zens of the City of Euless, Texas,
Section 3. All ordinances or resolutions in conflict
herewith are hereby expressly repealed,
PASSED AND APPROVED this 10th day of April, 1973,
t �
Mayor, City -'of Euless, Texas
ATTEST:
City Secretary, City of Euless,
Texas
APPRO
4
C ty Attorney, City of Euless,
Texas
(SEAL)
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CERTIFICATE FOR
ORDINANCE APPROVING TRINITY RIVER
AUTHORITY OF TEXAS BOND RESOLUTION
THE STATE OF TEXAS
COUNTY OF TARRANT
CITY OF EULESS
We, the undersigned officers of said City, hereby
certify as follows:
1. The City Council of said City convened in
REGULAR MEETING ON THE 10TH DAY OF APRIL, 1973,
at the City Hall, and the roll was called of the duly constitu-
ted officers and members of said City Council, to -wit:
A. C. Krause, Mayor Vada Ferris, City Secretary
Bill Dunn J. Dwayne Wilcox
Harold L. Gopher Darrel Benson
Harold Samuels
and all of said persons were present, except the following
absentees: Darrel Benson 3
thus constituting a quorum. Whereupon, among other business,
the following was transacted at said Meeting:
The Mayor presented for the consideration of the City
Council an ordinance bearing the following caption, to -wit:
ORDINANCE NO. 442
"AN ORDINANCE APPROVING A RESOLUTION BY TRINITY
RIVER AUTHORITY OF TEXAS AUTHORIZING THE ISSUANCE
OF TRINITY RIVER AUTHORITY OF TEXAS ( TARRANT COUNTY
WATER PROJECT) REVENUE BONDS, SERIES 19731
$1,750,0002 AND DECLARING AN EMERGENCY"
Councilman Bunn moved that the ordinance be
finally passed as an emergency measure. The motion was seconded
by Councilman Wilcox and carried by the following vote:
AYES: All members of said City Council shown
present above voted "Aye,"
NAYS: None.
The Mayor announced that the ordinance had been finally
passed and adopted as an emergency measure and was effective
immediately.
2. That a true, full and correct copy of the aforesaid
ordinance passed at the Meeting described in the above and fore-
going paragraph is attached to and follows this certificate;
that said ordinance has been duly recorded in said City Council's
minutes of said Meeting; that the above and foregoing paragraph
is a true, full and correct excerpt from said City Council's
minutes of said Meeting pertaining to the passage of said
ordinance; that the persons named in the above and foregoing
paragraph are the duly chosen, qualified and acting officers and
members of said City Council as indicated therein; that each of
the officers and members of said City Council was duly and suf-
ficiently notified officially and personally in advance, of the
time, place and purpose of the aforesaid Meeting, and that said
ordinance would be introduced and considered for passage at
said Meeting, and each of said officers and members consented,
in advance, to the holding of said Meeting for such purpose;
and that said Meeting was open to the public, and public notice
of the time, place and purpose of said Meeting was given, all
as required by Vernon's Ann. Civ. Stat. Article 6252 -17.
SIGNED AND SEALED the 10th day of April, 1973.
City Secretary
( SEAL)
Mayor
RESOLUTION NO. R-
RESOLUTION
DIRECTING THE ISSUANCE OF TRINITY RIVER
AUTHORITY OF TEXAS (TARRANT COUNTY
WATER PROJECT) - REVENUE BONDS, SERIES
1973; PRESCRIBING THE FORM AND TERMS
OF SAID BONDS; PROVIDING FOR THE
SECURITY AND PAYMENT THEREOF; AND
RESOLVING OTHER MATTERS RELATING TO THE
SUBJECT.
WHEREAS, on February 11, 1972 and on July 21, 1972,
the Board of Directors of Trinity River Authority of Texas
adopted resolutions (herein called "1972 Bond Resolution" and
"1972A Bond Resolution" respectively) directing the issuance of
Trinity River Authority of Texas (Tarrant County Water Project)
Revenue Bonds, Series 1972 and Series 1972A, hereinafter called
the "Outstanding Bonds "; and
WHEREAS, the Outstanding Bonds were approved by the
Attorney General, registered by the Comptroller of Public Ac-
counts of the State of Texas, and are now outstanding; and
WHEREAS, it is necessary to issue Completion Bonds in
accordance with the 1972 bond resolution;
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TRINITY
RIVER AUTHORITY OF TEXAS:
AUTHORIZATION OF THE BONDS
To provide funds for the acquisition and construction
of facilities to provide a water supply for Cities and others,
there shall be issued.negotiable bonds designated "Trinity
River Authority of Texas (Tarrant County Water Project) Revenue
Bonds, Series 1973,11 in the amount of $1,750,000.
Said Bonds shall be issued in the manner and with the
security hereinafter provided.
ARTICLE I
DEFINITION OF TERMS
Section 1.01. In each place - throughout this Resolu-
tion wherein the following terms, or any of them, are used, the
same, unless the context shall indicate another or different
meaning or intent, shall be construed and are intended to have
meanings as follows:
(a) "Act" means Chapter 518, Acts of the Fifty
Fourth Legislature of the State of Texas, as amended.
(b) "Authority" means Trinity River Authority of
Texas and any other public body or agency at any time succeed-
ing to the property and principal rights, power and obligations
of said Authority.
(c) "Board of Authority" means the Board of
Directors of the Authority.
(d) "Bond" or "Bonds" means the bonds authorized by
this Resolution.
(e) "Certified Public Accountant" means any certi-
fied public accountant, licensed public accountant or firm of
such public accountants of suitable experience and qualifica-
tions not regularly in the employ of the Authority, selected
by the Authority.
(f) "Cities" means the Cities of Euless and Bedford
in Tarrant County, Texas.
(g) "Contracts" means the contracts between the
Authority and the Cities, dated as of January 21, 1972, and
any amendments thereto.
(h)' "Depository" means the bank or banks which the
Authority selects (whether one or more), in accordance with
law, as its depository.
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(i) "Fiscal Year" means each twelve month period
beginning December 1 of each year.
(j) "Independent Consulting Engineer" means the
Engineer of engineering firm or corporation at the time
employed by the Authority under the provisions of Section
5.13 of the 1972 Bond Resolution.
(k) "Paying Agent's means The First National Bank of
Fort Worth, Fort Worth, Texas, or its successor.
(1) "Resolution" means this resolution and any
amendments hereto.
(m) "System" means the facilities of Authority to
be acquired with proceeds of the Bonds for providing a water
supply to Cities and others.
ARTICLE II
FORM, EXECUTION AND DELIVERY OF BONDS
Section 2.01. THE BONDS. The Trinity River
Authority of Texas (Tarrant County Water Project) Revenue Bonds,
Series 1973, shall be issued in the amount of $1,750,000,
dated May 1, 1973, numbered from 1 through 35, of the
denomination of $50,000 each, and mature on March 1, 2000.
Section 2.02. OPTION OF PRIOR REDEMPTION. The Bonds
of this Series shall be optional for redemption prior to their
scheduled maturity in whole, or in part, at the option of the
Authority, at any time, for the principal amount thereof plus
accrued interest to the date fixed for redemption. At least
thirty days before the date fixed for redemption, the Authority
shall cause a written notice of such redemption.to be delivered
to the Paying Agent. By the date fixed for any such redemption,
3
f
due provision shall be made with the Paying_Agent for the pay-
ment of the principal amount of the bonds to be so redeemed,
plus accrued interest thereon to the date fixed for redemption.
If the written notice of redemption is given, and if due pro-
vision-for payment is made, all as-provided above, the bonds
which are to be so redeemed thereby automatically shall be
redeemed prior to maturity, and they shall not be regarded as
being outstanding except for the purpose of receiving the funds
so provided for such payment.
Section 2.03. INTEREST.. The Bonds of this Series
shall bear interest from their date at the rate of 5 1/4%
per annum to and until March 1, 1974; and at the rate of 7%
per annum from and after March 1, 1974. Such interest shall
be evidenced by attached.coupons due September 1, 1973,
and semi - annually thereafter on March 1 and September 1 of
each year.
The Bonds and the interest . thereon shall be payable
in lawful money of the United States of America, without ex-
change or collection charges to the holder thereof, at The
First National Bank of Fort Worth, Fort Worth, Texas, which
place shall be the paying agent for said Bonds. '
Section 2.04. FORM. The Bonds, the Certificate of
the Comptroller of Public Accounts to appear thereon, and the
interest coupons shall be in substantially the following form:
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(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF TEXAS
TRINITY RIVER AUTHORITY OF TEXAS
(TARRANT COUNTY WATER PROJECT)
. REVENUE BOND
SERIES 1973
NO. $50,000
Trinity River Authority of Texas, a governmental
agency and a body politic and corporate and a political sub-
division of the State of Texas (herein called "Authority "), for
value received hereby promises to pay to bearer, out of rev-
enues hereinafter specified, on the 1st day of March, 2000,
the sum of
FIFTY THOUSAND DOLLARS
and to pay interest thereon from their date at the rate of
5 1/4% per annum to and until March 1, 1974; and at the
rate of 7% per annum from and after March 1, 1974, to
maturity or date of prior redemption. Said interest shall
be evidenced by coupons payable September 1, 1973, and
semi - annually thereafter on March 1 and September 1 of each
year, until the principal shall be paid. Both principal and
interest are payable in lawful money of the United States of
America, upon presentation.and surrender of bond or proper
coupon as they severally become due, at The First National
Bank of'Fort Worth, Fort Worth, Texas (herein called Paying
Agent "), without exchange or collection charges to the holder
hereof.
The-Bonds of this Series may be redeemed prior to
their scheduled maturity, in whole, or in part, at the option
5
of the Authority, at any time, for the principal amount thereof
plus accrued interest to the date fixed for redemption.
At least thirty days before the date fixed for any
such redemption, the Authority shall cause a written notice of
such redemption to be delivered to the Paying Agent. By the
date fixed for any such redemption, due provision shall be made
with the Paying Agent for the payment of the principal amount of
the Bonds to be so redeemed, plus accrued interest thereon to
the date fixed for redemption. 3f the written notice of re-
demption is delivered, and if due provision for payment is made,
all as provided above, the bonds, which are to be so redeemed,
thereby automatically shall be redeemed prior to maturity, and
they shall not bear interest after the date fixed for redemption,
and shall not be regarded as being outstanding except for the
purpose of receiving the funds so provided for such payment.
This bond is one of a duly authorized issue of bonds
numbered from 1 through 35, of the denomination of $50,000,
aggregating $1,750,000, issued by Trinity River Authority of
Texas for the purpose of providing funds for the construction
and acquisition of facilities to provide a water supply to
Cities and others. As used hereinafter, "Series 1973 Bonds"
means this Series of bonds. The Series 1973 Bonds are
authorized by a resolution (herein called "1973 Bond
Resolution ") of the Board of Directors of the Authority.
The Authority has outstanding Trinity River Authority
of Texas (Tarrant County Water Project) Revenue - Bonds, Series
1972 and Series 1972A ( "Series 1972 Bonds" and "Series 1972A
Bonds "), authorized by resolutions (which resolutions are
herein called "1972 Bond Resolution" and "1972A Bond Resolution ")
and has reserved the right, under conditions specified in the
F,
1972 Bond Resolution, to issue additional bonds, including
Completion Bonds as therein defined, which will be on a parity
with the Series 1972 Bonds and the Series 1972A Bonds. The
Series 1973 Bonds constitutes an issue of such Completion
Bonds. As used hereinafter, `Bonds" means the Series 1972
Bonds, the Series 1972A Bonds and the Series 1973 Bonds.
For the purpose of providing for the payment and
security of the Bonds, the Authority has pledged certain net
revenues to be received by the Authority for providing a water
supply under contracts with the Cities of Euless and Bedford
in Tarrant County, Texas. The 1973 Bonds constitute a first
lien on such pledged revenues on a parity with the lien of the
Series 1972 Bonds and the Series 1972A Bonds. Such pledge of
revenues and income is fully set forth in the 1972 Bond
Resolution, the 1972A Bond Resolution and the 1973 Bond
Resolution. Reference is made to said Bond Resolutions for
a description of the revenues and funds charged with and
pledged to the payment of the interest on and principal of.the
Bonds, the nature and extent of the security thereof, and a
statement of the rights, duties, and obligations of the
Authority and the right of the holders of the Bonds, to all
the provisions of which the holder hereof, by the acceptance
of this Bond, assents.
The Resolution provides that, to the extent and in
the manner permitted by the terms of the Resolution, the
Resolution may be amended with the consent of the holders of
at least two - thirds in principal amount of all outstanding
Bonds, provided that no. amendment shall:
(a) Make any change in the maturity of the Bonds;
(b) Reduce the rate of interest borne by any of
the Bonds;
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W Reduce the amount of the principal payable on
the Bonds;
(d) Modify the terms of payment of principal of or
interest on the Bonds, or any of them, or impose
any conditions with respect to such payment;
(e) Affect the rights of the holders of less than
all of the outstanding Bonds;
(f) Change the minimum percentage of the principal
amount of Bonds necessary for consent'to such
amendment.
The 1972 Bond Resolution provides for the creation of
an Interest and Sinking Fund and for the payment into said Fund
of a sufficient amount to pay the interest on and the principal
of the Bonds as the same become due and payable. The revenues
under said contracts (other than those for maintenance and
operation), and the special fund so provided have been and are
hereby pledged to and charged with the payment of the interest
on and the principal of the Bonds, without preference, priority
or distinction as to lien or otherwise of any Bond over any
other Bonds.
Under the terms and conditions as provided in the 1972
Bond Resolution, the Authority reserves the right to issue
.completion bonds, additional improvement bonds and refunding
bonds which will be on a parity with the Bonds of this issue
and which will be payable from revenues under said contracts
and any amendments thereto.
The date of this Bond in conformity with the
Resolution above mentioned is May 1, 1973.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laws
of the State of Texas to happen, exist and be performed
precedent to and in the issuance of this issue of Bonds, the
adoption of the Resolution, the making of the Contracts,
and the pledge of said revenues and fund have happened,
exist, and have been performed as so required.
IN WITNESS WHEREOF, Trinity River Authority of Texas
has caused this Bond to be signed by the imprinted or litho-
graphed facsimile signature of the President of the Authority
and attested by the facsimile signature of its Secretary and
the corporate seal of the Authority to be duly impressed, or
printed, or lithographed on this Bond, and has caused the
coupons hereto attached to be executed with the .facsimile
signatures of said officials.
ATTEST:
NO.
Secretary
(FORM OF COUPON)
ON THE 1ST DAY OF
, 19
President
Trinity River Authority of Texas will pay to bearer,
out of revenues specified in the Bond to which this coupon is
attached (unless the Bond to which this coupon is attached shall
have been previously called for redemption and provision for the
redemption thereof made in accordance with its terms), at The
First National Bank of Fort Worth, Fort Worth, Texas, without
C
exchange or collection charges to the owner or holder hereof,
the sum shown on this coupon, in lawful money of the United
States of America, for interest then due on its Trinity River
Authority of Texas (Tarrant County Water Project) Revenue Bond,
Series 1973, dated May 1, 1973, numbered
ATTEST:
President
Secretary
i
(FORM OF STATE COMPTROLLER'S CERTIFICATE)
OFFICE OF COMPTROLLER
STATE OF TEXAS
I HEREBY CERTIFY that there is on file and of record
in my office a certificate of the Attorney General of the State
of Texas to the effect that this Bond has been examined by him
as required by law, and that he finds that it has been issued
in conformity with the Constitution and laws of the State of
Texas, and that it is a valid and binding special obligation of
Trinity River Authority of Texas and that the contracts therein
mentioned are valid and have been approved, and said Bond has
this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas,
Comptroller of Public Accounts of
the State of Texas
Section 2.05. EXECUTION OF BONDS. The Bonds and
interest coupons shall be signed by the imprinted or litho-
graphed facsimile signature of the President of the Authority
and attested by the facsimile signature of the Secretary of the
Authority, and the official seal of the Authority shall be
10
affixed thereto, or a facsimile of such seal shall be printed
or lithographed thereon. All facsimile signatures shall have
the same effect as though they were manual signatures. In case
any officer whose signature or facsimile signature shall appear
on any Bond or coupons shall cease to be such officer before
the delivery of such Bonds, such signature or facsimile
signature shall nevertheless be valid and sufficient for all
purposes the same as if he had remained in office until such
delivery.
Section 2.06. COMPTROLLER'S REGISTRATION. Before
the delivery of the Bonds, there shall be endorsed on each of
them a certificate of registration duly executed by or on
behalf of the Comptroller of Public.Accounts of the State of
Texas.
Section 2.07. NEGOTIABILITY. The Bonds shall
constitute negotiable instruments. Nothing contained in the
Bonds or in this Resolution shall affect or impair the
negotiability of the Bonds.
Section 2.08. MUTILATED OR LOST BONDS. In case any
Bond shall become mutilated or destroyed or lost, the Authority
may cause to be executed and delivered a new bond of like date,
number, maturity and tenor with appropriate interest coupons in
exchange and substitution for and upon the cancellation of the
mutilated Bond and its interest coupons, or in lieu, of and in
substitution for the Bonds and its coupons destroyed or lost,
upon the holder's filing with the Authority evidence satisfac-
tory to it of such destruction or loss and, if the Authority
shall so require, indemnity satisfactory to it, and upon paying
all reasonable expenses and charges in connection with such
exchange or substitution.
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ARTICLE III
ADOPTION OF PROVISIONS OF SERIES 1972
BOND RESOLUTION
Articles III through IX of the 1972 Resolution are
hereby adopted and made a part hereof and shall be applicable
to the Series of Bonds herein authorized except as altered or'
supplemented hereby.
ARTICLE IV
REVENUES AND APPLICATION THEREOF
Section 4.01. The Interest and Sinking Fund created
in the 1972 Bond Resolution shall constitute a trust fund and
shall be held in trust by the Paying Agent for the benefit of
the holders of the Outstanding Bonds and the Bonds herein
authorized.
Section 4.02. PAYMENT OF PRINCIPAL AND INTEREST.
The payment of interest on the Bonds for ten (10) months
from the date of the Bonds is provided for in Section 7.02
hereof. Not less than five (5) days prior to September 1, 1975,
and not less than five (5) days prior to each March 1 and
September 1 thereafter, in addition to the transfers required
by the Resolutions authorizing the Outstanding Bonds, there
shall be transferred from the Revenue Fund to the Interest
and Sinking Fund sufficient money to pay the next maturing
interest as it is scheduled to come due on the Bonds herein
authorized and the fees of the Paying Agent., Monies in
the Interest and Sinking Fund shall be kept invested in
securities permitted by Section 8 -B of Article 8280 -188,
V.C.S. which mature on dates which will coincide as nearly
as practicable to the dates when money will be needed to
pay interest on and the principal of the Bonds. Interest and
profits resulting from such investments shall be deposited in
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the Construction Fund until the System is completed, and there-
after in the Interest and Sinking Fund.
Section 4.03. PAYMENT OF PRINCIPAL. On or before
February 15, 1975, and on or before the fifteenth day of each
month thereafter, there shall be transferred from the Revenue.
Fund to a fund hereby established and to be designated the
Tarrant County Water Project Redemption Fund, the amount of
$11,750. No transfers to said Redemption Fund need be made
when the total amount in said Fund equals the total amount
outstanding of the Bonds and the Outstanding Bonds. Said fund
shall be maintained in The First National Bank of Fort Worth,
Fort Worth, Texas, and shall constitute a Trust Fund and shall
be held'in trust by said bank for the benefit of the Bonds and
the Outstanding Bonds.
Section 4.04. SECURITY OF FUNDS. The Authority shall
cause the Depository to secure and keep secured, in the manner
required by law, all funds on deposit with it, and will cause
the Paying Agent to secure all funds deposited with it as other
trust funds are secured. The Authority covenants and agrees
that no money will be allowed to be or remain deposited with the
Paying Agent or Depository unless secured as above provided.
Section 4.05.
PLEDGE.
The Interest and
Sinking Fund,
the Redemption Fund and
all income
hereby required
to be de-
posited into said Funds is hereby pledged for the payment and
security of the Bonds and the Outstanding Bonds.
The Bonds herein authorized and the Outstanding Bonds
shall be on a parity and of equal dignity in all respects.
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ARTICLE V
LIENS ON SYSTEM
The Authority covenants that except for the pledge of
revenues in the Resolutions authorizing the Outstanding Bonds
there is not now outstanding and that the Authority will not at
any time create or allow to accrue or to exist any lien upon the
System, or any part thereof, or the revenues pledged herein to
the payment of the principal of and interest on the Bonds and
the Outstanding Bonds, at any time derived from the operation
thereof, or any of its funds, except as authorized by Article
VII of the 1972 Bond Resolution; that the security of the Bonds
will not be impaired in any way as a result of any action or any
non- action on the part of the Authority, its Board of Directors
or officers, or any thereof, and that the Authority has, and
will, subject to the provisions hereof, continuously preserve
-good and indefeasible title to the System and each and every
part thereof.
ARTICLE VI
The Authority reserves the right to issue additional
Completion Borids, Improvement Bonds and Refunding Bonds as
provided in Article VII of the 1972 Bond Resolution.
ARTICLE VII
APPLICATION OF BOND PROCEEDS
Section 7.01. Upon delivery of and payment for the
Bonds, the bank at which such payment is made shall, in accord-
ance with a letter to be written by the President or General
Manager of the Authority, remit the Bond proceeds as provided
in the succeec?ing Sections.
Section 7.02. INTEREST AND SINKING FUND. There shall
be deposited in the Interest and Sinking Fund an amount equal to
14
the interest to accrue on the Bonds for ten (10) months from
the date of the Bonds. The amount in said Fund shall be
kept invested in securities permitted in Section 8 -B of Article
8280 -188, V.C.S. which mature on dates which coincide as nearly
as practicable to the dates when money will be needed to make
interest payments on the Bonds.
Section 7.03. CONSTRUCTION FUND. After the disburse-
ment provided for in Section 7.02, the remainder of the Bond
proceeds shall be deposited in the Construction Fund. The
Construction Fund shall be subject to and charged with a lien
in favor of the holders of the Bonds until said Funds are paid
out as herein provided. The Depository shall be required to
secure the Construction Fund in its possession by pledging
obligations of or obligations unconditionally guaranteed by the
United States; such obligations at all times shall be at least-
equal in value to the amount in the Construction Fund in its
possession.
Section 7.04. INVESTMENT. Money in the Construction
Fund shall be kept invested in securities permitted by Section
8 -B of Article 8280 -188, V.C.S. which mature on dates which
coincide as nearly as practicable to the dates when money will
be needed to pay Project Costs. All interest and profits from
such investments shall be deposited into the Construction Fund.
Section 7.05. DISBURSEMENTS FROM CONSTRUCTION FUND.
(a) Money in the Construction Fund shall be subject
to disbursement by the Authority for payment of Project Costs
to be incurred in the construction and acquisition of the
System. Such.disbursements shall be made only upon checks
stating the purpose of the payment signed and countersigned by
15
such officers of the Authority as may from time to time be
designated by the Authority by resolution, and duly certified to
the Despoitories. Disbursements for payments to construction
contractors and disbursements for construction material,
supplies and equipment shall be approved by the Consulting
Engineers.
(b) "Project Costs" as used herein includes all
acquisition costs and construction costs as those terms are
generally understood in standard accounting practice as applied
to projects of this nature, and without limiting the generality
of the foregoing, it shall include purchase of equipment,
capitalized interest, engineering, financing, financial
consultants, administrative, auditing and legal expenses in-
curred in connection with the performance of the Contracts.
The costs for engineering, financial consultants, administrative
and legal expense paid from bond proceeds incurred by the
Authority shall be reasonable and at usual and customary rates.
Until the System is completed, the Fees of the Paying Agent
shall be paid from the Construction Fund, and thereafter from
the Interest and Sinking Fund. Damages to land and property,
whenever accruing, adjudged under Article I, Section 17 of the
Constitution of Texas shall constitute a part of Project Costs.
After completion of the System, any residue remaining in the
Construction Fund shall be deposited in the Interest and
Sinking Fund.
Section 7.06. COVENANT TO APPLY PROCEEDS AND
RESTRICTION ON INVESTMENT. That the Board covenants to and
with the purchasers of the bonds that it will make no use of
the proceeds of the bonds at any time throughout the term of
16
this issue of bonds which, if such use had been reasonably
expected on the date of delivery of the bonds to and payment
for the bonds by the purchasers, would have caused the bonds
to be arbitrage bonds within the meaning of Section 103(d) of
the Internal Revenue Code of 1954, as amended, or any regula-
tions or rulings pertaining thereto; and by this covenant the
Board is obligated to.comply with the requirements of the
aforesaid Section 103(d) and all applicable and pertinent
Department of the Treasury regulations relating to arbitrage
bonds. The Board further covenants that the proceeds of the
bonds will not otherwise be used directly or indirectly so as
to cause all or any part of the bonds to be or become arbi-
trage bonds within the meaning of the aforesaid Section 103(d),
or any regulations or rulings pertaining thereto.
ARTICLE VIII
APPROVAL AND DELIVERY: SEVEP.ABILITY
Section 8.01. APPROVAL AND REGISTRATION OF BONDS.
That the proper officers of the Authority shall prepare and
the Secretary of the Authority shall certify a complete trans-
cript of these proceedings, and such transcript, shall there-
upon be submitted to the Attorney General of the State of Texas
for his examination with a request that he examine the same
and approve the Bonds and the Contracts, and no such Bonds
shall be issued under the terms of this Resolution unless and
until the same shall have been approved by the Attorney General
of the State of Texas and registered by the Comptroller of
Public Accounts of the State of Texas as required by law.
Upon registration of said Bonds, the Comptroller of Public
17
Accounts (or a deputy designated in writing to act for said
Comptroller) shall manually sign the Comptroller's certificate
of registration prescribed herein to be printed on the back of
each Bond, and the seal-of said Comptroller shall be affixed to
each of said Bonds.
Section 8.02. AWARD OF BONDS. The Bonds are hereby
awarded to First Southwest Company at a price of par and accrued
interest to date of delivery. It is hereby determined by the
Board of Authority that the price and terms of said bid are
the most advantageous reasonably obtainable.
Section 8.03. FURTHER PROCEDURES.
That the officers,
employees and agents of the Authority, 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 corporate seal and on behalf of the
Authority 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 Resolution and of the Bonds to be issued
hereunder.
Section 8.04. REPEAL; SEVERABILITY. That all
resolutions or parts thereof, or other corporate action of the
Authority or of this Board of Directors, which in any manner
or to any extent conflict with any provisions of this Resolution,
shall be, and such other resolutions and corporate action are
hereby expressly repealed and in case any one or-more of the
provisions of this Resolution shall be held to be invalid or
ineffective b �ny court of competent jurisdiction-as to any
i
person or circumstance, the remainder hereof and the applica-
tion of such provision or provisions of persons or circum-
stances other than those as to which it is held invalid shall
not be affected thereby.
Section 8.05. EMERGENCY. That it is hereby
officially found and determined that a case of emergency or
urgent public necessity exists which requires the holding of
the meeting at which this Resolution is adopted, such emergency
or urgent public necessity being that the issuance of said
bonds is required as soon as possible and without delay for
necessary and urgently needed public improvements; and that
said meeting was open to the public, and public notice of the
time, place and purpose of said meeting was given, all as
required by Vernon's Ann. Civ. St. Article 6252 -17.
ADOPTED AND APPROVED this 20th day of April, 1973.
President, Board of Directors,
Trinity River Authority of Texas
ATTEST:
Secretary, Board of Directors,
Trinity River Authority of Texas
. ,
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