Ordinance 1987-35
ORDINANCE NO. 81 ~ 3j/
ORDINANCE AUTHORIZING AND DIRECTING THE EXECUTION OF THE
NORTH TEXAS MUNICIPAL WATER DISTRICT - CITY OF WYLIE SEWER
SYSTEM FACILITIES INSTALLMENT SALE CONTRACT, PLEDGING AND
APPROPRIATING WATERWORKS AND SEWER SYSTEM REVENUES AND
LEVYING A CITY AD VALOREM TAX IN CONNECTION THEREWITH, AND
PROVIDING FOR THE EFFECT OF SAID ORDINANCE AND CONTRACT
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS:
SECTION 1
That, for and on behalf of the City of Wylie, the Mayor of
the City of Wylie is hereby authorized and directed to sign,
deliver, and otherwise execute, and the City Secretary of the
City of Wylie is hereby authorized and directed to sign,
attest, and seal, the North Texas Municipal Water District -
City of Wylie Sewer System Facilities Installment Sale Contract
(the "Contract") in substantially the form and substance
attached to this Ordinance and made a part hereof for all
purposes.
SECTION 2
That, upon its execution by the parties thereto, the
Contract shall be binding upon the City of Wylie in accordance
with its terms and provisions; and the revenues of the City's
combined waterworks and sewer system are hereby pledged and
appropriated to making payments under the Contract as provided
therein.
SECTION 3
That during each year during the term of said Contract the
City Council of the City of Wylie shall compute and ascertain a
rate and amount of ad valorem tax which will be sufficient to
raise and produce annually the money necessary to make any
payments, including indemnities, required to be made by the
City under the Contract, and to create a sinking fund of at
least 2% as required by Article 11, Section 5 of the Texas
Constitution; and said tax shall be based on the latest ap-
proved tax rolls of the City, with full allowance being made
for tax delinquencies and costs 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 during the term of the Contract; and said tax
shall be assessed and collected for each year and used for
making the aforesaid payments to the extent required by the
Contract. Said ad valorem taxes sufficient to provide for
making the aforesaid payments are hereby pledged irrevocably
for such payment, within the limit prescribed by law.
SECTION 4
That 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; and all ordinances and resolutions of the City of
Wylie in conflict herewith are hereby amended or repealed to
the extent of such conflict.
NORTH TEXAS MUNICIPAL WATER DISTRICT - CITY OF WYLIE
SEWAGE TREATMENT SERVICES CONTRACT
THE STATE OF TEXAS
KNOW ALL MEN EY THESE PRESENTS:
NORTH TEXAS MUNICIPAL WATER
DISTRICT
WHEREAS, the North Texas Municipal Water District (herein-
after sometimes called the "District") is a conservation and
reclamation district created by and functioning under Chapter
62, Acts of 1951, 52nd Legislature, Regular Session, as
amended, originally compiled as Vernon's Article 8280-141
(hereinafter sometimes called the "Act"), pursuant to Article
16, Section 59 of the Texas Constitution; and
WHEREAS, the City of Wylie (hereinafter sometimes called
the "City") in Collin County, is a city duly organized and
existing pursuant to the Constitution and laws of the State of
Texas; and
WHEREAS, the City owns its existing wastewater treatment
plant consi sting of facilities with a present capaci ty for
disposing of approximately 800,000 gallons of the City's sewage
per day (the "Exi sting Fac i 1 i ties"), located in the south-
western section of City, south of State Highway 78 and west of
Eirmingham Street; and
WHEREAS, the City has requested the District to expand the
Existing Facilities by increasing the present capacity thereof
to a total of approximately 2,000,000 gallons of sewage per
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day, and to operate and maintain the entire expanded wastewater
disposal system (the "Plant") as hereinafter provided; and
WHEREAS, a description of said proposed expansion is
contained in an engineering report dated May 27, 1987, by CH2M
Hill, Consulting Engineers, Dallas, Texas; and
WHEREAS, said expansion of the Existing Facilities to have
a capacity for disposing of a total of approximately 2,000,000
gallons of sewage per day is hereafter called the Project; and
WHEREAS, the District and the City are authorized to make
and enter into this Contract under the Act, Chapter 30 of the
Texas Water Code, Vernon's Ann. Tex. Civ. St. Art. 4413 (32c),
and other applicable laws; and
~~EREAS, the parties hereto recognize and agree to these
facts:
(a) that the District is preparing to issue, sell, and
deliver its Bonds for the purpose of acquiring and
constructing the Project; and
(b) that the District will pledge part of the City's
payments to the District under this Contract to the
payment of principal of and the interest on its Bonds
issued in connection with the Project.
IT IS THEREFORE CONTRACTED AND AGREED BETWEEN
THE DISTRICT AND THE CITY AS FOLLOWS:
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Section 1. DEFINITIONS. The terms and expressions used
in this Contract, unless the context shows clearly otherwise,
shall have meanings as follows:
(a) "Engineering Report" means the engineering report
described in the preamble to this Contract, together
with any amendments and supplements thereto.
(b) "Existing Facilities" means the presently existing
waste treatment facilities owned by the City and
described in the preamble to this Contract.
(c) "Project" means the Project consisting of the
expansion of the Existing Facilities to a total
designed treatment capacity of approximately
2,000,000 gallons of sewage per day, in accordance
with the Engineering Report.
(d) "Plant" means the entire expanded wastewater disposal
system, including the Existing Facilities and the
Project.
(e) "Board" and "Board of Directors" means the Board of
Directors of the District.
(f) "Bonds" means any bonds to be issued by the District
for the acquisition, construction, or completion of
the Project, whether in one or more series or issues,
or any bonds issued to refund same or to refund any
refunding bonds.
(g) "Bond Resolution" means any resolution of the Board
of Directors authorizing the issuance of Bonds and
providing for their security and payment, as such
resolution(s) may be amended from time to time as
therein permitted.
(h) "Fiscal Year" means the District's fiscal year,
currently the year beginning October 1 of each
calendar year and ending on September 30 of the
following calendar year.
(i) "Operation and Maintenance Expenses" means all costs
and expenses of operation and maintenance of the
Plant, including (for greater certainty but without
limiting the generality of the foregoing) repairs and
replacements for which no special fund is created in
any Bond Resolution, operating personnel, the cost of
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utilities, the costs of supervision, engineering,
accounting, auditing, legal services, supplies,
services, administration of the Plant, including
the District's general overhead expenses attribut-
able to the Plant, insurance premiums, equipment
necessary for proper operation and maintenance of
the Plant, and payments due by the District in
satisfaction of judgments, penalties, and claims
not paid by the District's insurance and arising
in connection with the operation and maintenance
of the Plant. The term does not include deprecia-
tion.
Section 2.
OBLIGATION OF DISTRICT TO CONSTRUCT.
The
District agrees to pay and will pay all of the actual costs of
acquiring and constructing the Project through the issuance of
its Bonds pursuant to the Act, Chapter 30 of the Texas Water
Code, and other applicable laws, to provide the money suffi-
cient for such payment; and the District shall own and have
title to the Project.
Section 3. DISTRICT'S BONO RESOLUTION. The proceeds from
the sale of the Bonds will be used for the payment of all of
the District's costs and expenses in connection with the
Project and the Bonds, including, without limitation, all
financing, legal, printing, and other expenses and costs
incurred in issuing its Bonds, and to fund a debt service
reserve and other funds as required by any Bond Resolution. It
is now estimated that such such Bonds will be issued by the
District in the amount of approximately $2,100,000 (whether
actually more or less), which amount is now estimated to be
sufficient to cover all the aforesaid costs and expenses and
other amounts required. Each Bond Resolution of the District
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shall specify the exact principal amount of the Bonds issued,
which shall mature not more than 25 years from the date of such
Bonds, and shall bear interest at not to exceed the maximum
legal rates, and the Bond Resolution shall create and provide
for the maintenance of a revenue fund, an interest and sinking
fund, and a debt service reserve fund, and other funds, all in
the manner and amounts as provided in each Bond Resolution.
The City agrees that if such Bonds are actually issued and de-
livered to the purchaser thereof, the Bond Resolution authoriz-
ing the Bonds shall for all purposes be deemed to be in com-
pliance with this Contract in all respects, and the Bonds
issued thereunder will constitute Bonds as defined in this
Contract.
Section 4. CONSULTING ENGINEERS. The District and the
City agree that CH2M Hill, Consulting Engineers, Dallas, Texas,
shall constitute and be defined as the "Consulting Engineers"
for the Project; that the Project will be acquired and con-
structed in accordance with plans and specifications prepared
under the supervision of the Consulting Engineers. It is
further agreed that the Consulting Engineers may be changed,
but only with the agreement of both the District and the City.
Section 5. ACQUISITION AND CONSTRUCTION CONTRACTS. The
District will enter into such contracts as are necessary to
provide for acquiring and constructing the entire Project, and
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said contracts shall be executed as required by the laws
applicable to the District. The District shall pay the amounts
due under said contracts from the proceeds from the sale of its
Bonds.
Section 6. OPERATION AND MAINTENANCE. As permitted and
authorized by th€ Act and Section 30.04, Texas Water Code, and
other provisions of law, the District and the City agree that
this Contract shall constitute an operating agreement with
respect to the Existing Facilities, which heretofore have con-
sti tuted a part of the City's local wastewater treatment
facilities, and with respect to the entire Plant. The District
agrees to manage, administer, operate, maintain, and use the
entire Plant, including the Existing Facilities as part of the
entire Plant, subject to the provisions and during the term of
this Contract. The District will provide and make available to
the City the sewage disposal facilities and services of the
entire Plant. It is agreed that the City shall have the exclus-
ive use of the entire Plant throughout its useful life. In
consideration for the District's undertakings pursuant to this
Contract and making available the entire Plant to the City, the
City agrees to make the payments hereinafter specified. As
further consideration it is agreed that the District will have
the responsibility for operating and maintaining the entire
Plant throughout its useful life, and that the District will
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operate and maintain the entire Plant throughout its useful
life.
Section 7.
PAYMENTS BY CITY.
(a)
The City agrees to
indemnify and to save and hold harmless the District from any
and all claims, damages, losses, costs, and expenses, including
reasonable attorneys fees, arising at any time from the acqui-
sition, construction, existence, ownership, operation and/or
maintenance of the entire Plant. It is further agreed that the
City's obligation to make any and all paYments with respect to
the Bonds under Section 7 (b) (1) and (2) and 7 (c) of this
Contract will terminate when all of the District's Bonds have
been paid and retired and are no longer outstanding; and it is
agreed that the cessation of such payments or charges is and
will be a reasonable arrangement after such Bonds have been
retired. However, the City shall make the payments to cover
Operation and Maintenance expenses of the entire Plant as
provided in Section 7 (b) (3) throughout the useful Ii fe of the
entire Plant.
It is further understood and agreed that the
District's only source of funds to pay the principal of and
interest on its Bonds and to pay its expenses in connection
with its Bonds and the Plant, is from the payments to be made
by the City to the District under this Contract.
(b) That the City agrees to make the following payments
to the District during the term of this Contract:
1. Such amounts, payable monthly on or before the 20th
day of each month, in approximately equal monthly
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installments for each applicable period, as are
necessary to pay the principal and/or interest coming
due on the District's Bonds on the next succeeding
interest payment date, plus the fees and charges of
the Paying Agent for paying or redeeming the Bonds
and/or interest thereon coming due on such date, and
the fees and charges of the Registrar for transferr-
ing and registering the Bonds.
2. Such amounts as are necessary to make all payments
into any debt service reserve fund or other special
fund or funds required to be established and/or
maintained by the provisions of any Bond Resolution.
3. Such amounts, payable monthly on or before the 20th
day of each month, equal to the amount of estimated
Operation and Maintenance Expenses of the District
for the Plant for the next ensuing calendar month, as
shown in the Annual Budget or amended Annual Budget
as provided in Section (d) hereof.
(c) If, in addition to the amount initially issued, the
District finds it necessary to issue Bonds for the purpose of
completing the Project to the extent contemplated by this Con-
tract, Bonds in addition to those described in Section 3 hereof
may be issued in the amount required to provide for the comple-
tion of the Project and to pay the expenses of issuance of such
Bonds, as well as to fund, if and to the extent necessary,
additional amounts in the interest and sinking fund and the
debt service reserve fund. If such completion Bonds are issued
the amounts to be paid to or retained by the District under all
Sections of this Contract shall be increased proportionately,
and such amounts shall at all times be sufficient to pay the
principal of and interest on all such Bonds and all other
requirements in connection therewith.
It is understood and
agreed that the only source of funds for the District to
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acquire,
issuance
construct, and complete the proj ect is from the
and sale of its Bonds (including addi tional Bonds)
pursuant to this Contract.
(d) District covenants that it will operate and maintain
the entire Plant in accordance with accepted good business and
engineering practices and in accordance with requirements of
all applicable Federal and State laws, and any rules and
regulations issued and to be issued by appropriate agencies in
the administration of said laws. The City and the District
agree that their obligations hereunder shall include compliance
with the requirements made under said laws, and any rules and
regulations issued pursuant thereto. Not less than sixty (60)
days before the commencement of each Fiscal Year while this
Contract is in effect, District shall cause its tentative
budget for Operation and Maintenance Expenses of the Plant for
the ensuing Fiscal Year to be prepared and a copy thereof filed
with the City Manager of the City. A reasonable amount to
cover and reimburse the District for its administrative and
overhead expenses directly attributable to the Plant and the
Bonds, including the cost of routine annual accounting reports,
shall be included as an i tern of Operation and Maintenance
Expenses. If no protest or request for a hearing on such
tentative budget is presented to District within thirty (30)
days after such filing of the tentative budget with the City
Manager, the tentative budget for the Plant, when adopted by
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District I S Board of Directors, shall be considered for all
purposes as the "Annual Budget" for the ensuing Fiscal Year.
But if a protest or request for a hearing is duly filed, it
shall be the duty of the District to fix the date and time for
a hearing on the tentative budget before its Board of Directors
and shall so advise the City in writing. The Board of Direc-
tors shall consider the testimony and showings made in such
hearing, and the Board of Directors of District may adopt the
budget or make such amendments thereof as to it may seem
proper. The budget thus approved by the Board of Directors of
the District shall be the Annual Budget for the next ensuing
Fiscal Year. The Annual Budget may be amended to provide for
trans fers of budgeted funds between expenditure accounts,
provided however that said transfers do not resul t in an
overall increase in budgeted funds as approved in the Annual
Budget. The Annual Budget may be amended and increased through
formal action by the Board of Directors of District, if re-
quired. Certified copies of any amended Annual Budget and the
resolution authorizing same shall be filed immediately by the
District with the City.
(e) The City now has outstanding combined waterworks and
sewer system revenue bonds, and represents and covenants that
the use of the facilities and services to be obtained pursuant
to this Contract are essential and necessary to the operation
of the City and its combined waterworks and sewer system, and
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that all payments to be made hereunder by it will constitute
reasonable and necessary "operating expenses" of the City's
combined waterworks and sewer system, within the meaning of
Vernon's Article 1113, and Section 30.030(a), Texas Water Code,
as amended, and the provisions of the ordinances, respectively,
which heretofore have authorized, and hereafter may authorize,
the issuance of all combined waterworks and sewer system
revenue bond issues of the City, with the effect that the
City's obligation to make payments from the revenues of its
combined waterworks and sewer system revenues under this
Contract shall have priority over its obligations to make
payments of the principal of and interest on any and all of its
combined waterworks and sewer system revenue bonds and other
obligations heretofore and hereafter issued. The City agrees
to fix and collect such rates and charges for waterworks and
sewer services to be supplied by its combined waterworks and
sewer system as will make possible the prompt payment of all
expenses of operating and maintaining the entire Plant and
operating and maintaining the City's entire combined waterworks
and sewer system, including all payments, obligations, and
indemnities contracted hereunder, and the prompt payment of the
principal of and interest on all City bonds or other obliga-
tions heretofore and hereafter issued or incurred to be payable
from the net revenues of its combined waterworks and sewer
system.
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(f) Recognizing the fact that the City urgently requires
the facilities and services of the Project and the Plant
covered by this Contract, and that such facilities and services
are necessary for actual use and for standby purposes; and
further recognizing that the District will use the payments
received from the City hereunder to pay, secure, and finance
the issuance of the Bonds, it is hereby agreed that if and when
any Bonds are delivered, the City shall be obligated to make
the payments required by this Contract, regardless of whether
or not the District actually provides such facilities and
services, or whether or not the City actually receives or uses
such facilities and services, and the holders of the Bonds
shall be entitled to rely on the foregoing agreement and
representation.
Section 8. ACQUISITION AND CONSTRUCTION.
The District
agrees to proceed promptly with the acquisition and construc-
tion of the Project. The District covenants that it will make
a diligent effort to commence construction as soon as practi-
cable. The District does not anticipate any delays in comrnenc-
ing or completing the Project, but the District shall not be
liable for any damages occasioned by the construction or
completion of the Project, or any delays in completion of the
Project.
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Section 9. CONDITIONS PRECEDENT. The obligation on the
part of the District to acquire and construct the Project shall
be conditioned upon the following:
(a) sale of Ponds in an amount sufficient to assure the
acquisition and construction of the Project; and
(b) the District's ability, or the ability of the
contractors, to obtain all permits, material, labor,
and equipment necessary for the acquisition and
construction of the Project.
Section 10.
USE OF CITY'S PUBLIC PROPERTY.
Py these
presents, the City authorizes use by the District of any and
all real property, streets, alleys, public ways and places, and
general utility or sewer easements of the City for acquiring
and constructing the Project and operating and maintaining the
Plant, as provided in this Contract.
Section 11.
FORCE MAJEURE.
If, by reason for Force
Majeure, any party hereto shall be rendered unable wholly or in
part to carry out its obligations under this agreement, with
the exception as hereinafter provided, then such party shall
give notice and full particulars of such Force Majeure in
writing to the other party within a reasonable time after
occurrence of the event or cause relied upon, and the ob1iga-
tion of the party giving such notice, so far as it is affected
by such Force Majeure, shall be suspended during the continu-
ance of the inability then claimed, but for no longer period,
and any such party shall endeavor to remove or overcome such
inability with all reasonable dispatch. The term Force Majeure
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as employed herein, shall mean acts of God, strikes, lockouts,
or other industrial disturbances, acts of public enemy, orders
of any kind of the Government of the United States or the State
of Texas or any civil or military authority, insurrections,
riots, epidemics, landslides, lightning, earthquakes, fires,
hurricanes, storms, floods, washouts, droughts, arrests,
restraint of government and people, civil disturbances, explo-
sions, breakage or accidents to machinery, pipelines or canals,
or other causes not reasonably within the control of the party
claiming such inability. It is understood and agreed that the
settlement of strikes and lockouts shall be entirely within the
discretion of the party having the difficulty, and that the
above requirement that any Force Majeure shall be remedied
within all reasonable dispatch shall not require the settlement
of strikes and lockouts by acceding to the demands of the
opposing party or parties when such settlement is unfavorable
to it in the judgment of the party having the difficulty. It
is specifically excepted and provided, however, that in no
event shall any Force Majeure relieve the City of its obliga-
tion to make payments to the District as required under Section
7 of this Contract.
Section 12. INSURANCE. The District shall carry fire,
casualty, public liability, and other insurance (including self
insurance to the extent deemed advisable by the District) on
the Plant for purposes and in amounts which would ordinarily be
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carried by a privately owned utility company owning and operat-
ing such facilities, except that it shall not be necessary to
carry liability insurance except to insure against risk of loss
due to claims for which such party can, in the opinion of its
legal counsel, be liable under the Texas Tort Claims Act or any
similar law or judicial decision. Such insurance will provide,
to the extent feasible and practicable, for the restoration of
damaged or destroyed properties and equipment, to minimize the
interruption of the services of such facilities. All premiums
for such insurance shall constitute an Operation and Mainte-
nance Expense of the Plant.
Section 13. REGULATORY BODIES. This Contract and the
Plant shall be subject to all valid rules, regulations, and
laws applicable thereto passed or promulgated by the United
States of America, the State of Texas, or any governmental body
or agency having lawful jurisdiction or any authorized repre-
sentative or agency of any of them.
Section 14. USE OF THE PROJECT. It is agreed and under-
stood that the City shall not, under any circumstances, dis-
charge or permit its inhabitants to discharge, any sewage or
waste into the Project which would cause the design capacity of
the Project to be exceeded or cause any governmental permit
granted for the Project to be violated.
Section 15. TERM OF CONTRACT. That the term of this
Contract shall be for the useful life of the Plant, and in any
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event for the period during which any of the District's Bonds,
or any interest payable thereon, are outstanding and unpaid.
IN WITNESS WHEREOF, the District and the City, acting
under authority of their respective governing bodies have
caused this contract to be duly executed in several counter-
parts, each of which shall constitute an original, all as of
the 25th day of JUNE, 1987, which is the date of this Contract.
NORTH TEXAS MUNICIPAL WATER DISTRICT
BY
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(SEAL)
CITY OF WYLIE, TEXAS
BY
Mayor
ATTEST:
City Secretary
( SEAL)
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CERTIFICATE FOR
ORDINANCE AUTHORIZING AND DIRECTING THE EXECUTION OF THE
NORTH TEXAS MUNICIPAL WATER DISTRICT - CITY OF WYLIE SEWER
SYSTEM FACILITIES INSTALLMENT SALE CONTRACT, PLEDGING AND
APPROPRIATING WATERWORKS AND SEWER SYSTEM REVENUES AND
LEVYING A CITY AD VALOREM TAX IN CONNECTION THEREWITH, AND
PROVIDING FOR THE EFFECT OF SAID ORDINANCE AND CONTRACT
THE STATE OF TEXAS
COUNTY OF COLLIN
CITY OF WYLIE
We, the undersigned officers of the City of wylie, Texas,
hereby certify as follows:
1. The City Council of said City convened in
REGULAR MEETING ON THE 14TH DAY OF JULY, 1987,
at the City Hall, and the roll was called of the duly consti-
tuted officers and members of said City Council, to-wit:
Carolyn Jones, City Secretary
John Akin
Marvin Blakey
Calvin Westerhof
Charles Trimble, Mayor
Sandra Donavan, Mayor Pro Tem
Christopher Di Tota
Kent Crane
and all of said
absentees:
constituting a quorum. Whereupon, among other business,
following was transacted at said Meeting: a written
persons were present, except the following
, thus
the
ORDINANCE AUTHORIZING AND DIRECTING THE EXECUTION OF THE
NORTH TEXAS MUNICIPAL WATER DISTRICT - CITY OF WYLIE SEWER
SYSTEM FACILITIES INSTALLMENT SALE CONTRACT, PLEDGING AND
APPROPIATING WATERWORKS AND SEWER SYSTEM REVENUES AND
LEVYING A CITY AD VALOREM TAX IN CONNECTION THEREWITH, AND
PROVIDING FOR THE EFFECT OF SAID RESOLUTION AND CONTRACT
was duly introduced for the consideration of said City Council
and duly read. It was then duly moved and seconded that said
Ordinance be passed; and, after due discussion, said motion,
carrying with it the passage of said Ordinance, prevailed and
carried by the following vote:
AYES: All members of said City Council
shown present above voted "Aye".
NOES: None.
2. That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this Certifi-
cate; 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 the passage of
said Ordinance; that the persons named in the above and forego-
ing paragraph are the duly chosen, qualified, and acting
officers and members of said City Council as indicated therein;
and that each of the officers and members of said City Council
was duly and sufficiently notified officially and personally,
in advance, of the time, place, and purpose of the aforesaid
Meeting, and that said Ordinance would be introduced and
considered for passage at said Meeting; and that said Meeting
was open to the public, and public notice of the time, place,
and purpose of said meeting was given, all as required by
Vernon's Ann. Tex. Civ. St. Article 6252-17.
3. That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinance; that the Mayor and the City
Secretary of said City have duly signed said Ordinance; and
that the Mayor and the City Secretary of said City hereby
declare that their signing of this Certificate shall constitute
the signing of the attached and following copy of said Ordi-
nance for all purposes.
(SEAL)
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SIGNED AND SEALED the
,~cl~87.
Z~~.
Mayor