09-24-2002 (City Council) Agenda Packet NOTICE OF MEETING
WYLIE CITY COUNCIL AGENDA
TUESDAY, SEPTEMBER 24, 2002
6:00 p.m.
Wylie Municipal Complex—Council Chambers/Council Conference Room
2000 State Highway 78 North
Wylie, Texas 75098
Action Taken
Proclamation declaring October as Domestic Violence Awareness Month.
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A. Approval of the minutes from the September 10,2002 Regular City Council Meeting.
B. Consider and act upon a Preliminary Plat for the for The Stiles Crossing Addition, being all of a certain
34.0839 acre tract of land, generally located west of North Ballard Avenue (FM 2514) and north of
Brown Street (FM 4312), as described in a deed to Peerless Manufacturing Company as recorded in
Volume 744, Page 515 of the Deed Records of Collin County, Texas, and being situated in the S.B.
Shelby Survey,Abstract No.820,City of Wylie,Collin County,Texas.
C. Consider and act upon a Final Plat for the Barber Addition,being all of a certain 8.00 acre tract of land,
generally located south of F.M. 544 and east of Regency Drive, as described in a deed to Austin Wylie
Realty,LTD,as recorded in Volume 4921,Page 1206 of the Deed Records of Collin County, Texas, and
being situated in the William Sachse Survey,Abstract No. 835,City of Wylie,Collin County,Texas.
D. Consider and act upon approval of a Resolution authorizing the City Manager to execute a Master
Advanced Funding Agreement(MAFA)with the Texas Department of Transportation(TxDOT)
E. Consider and act upon an Interlocal Boundary Agreement with the Town of St. Paul, amending an
Agreement approved on April 8, 1975.
Ordinances &Resolution
1. Consider and act upon a proposed amendment to the current Animal Ordinance in order to clearly
define the term 'Wild Animal'.
2. Consider and act upon approval of a Resolution authorizing the City Manager to enter into the
"Greater Dallas-Fort Worth Regional Law Enforcement Mutual Aid Task Force Agreement.
3. Consider and act upon approval of an Ordinance disannexing a 2.0-acre tract of land within the
Francisco de la Pina Survey, being generally located east of Paul Wilson Road and south of Skyview
Drive.
4. Consider and act upon approval of an Ordinance authorizing the issuance of $1,150,000 Waterworks
and Sewer System Revenue Bonds,Series 2002,dated September 24,2002,and all other matters realted
thereto.
5. Consider and act upon approval of an Ordinance authorizing the issuance of $250,000 in Tax Notes,
Series 2002,dated September 15,2002 and all other matters related thereto.
6. Consider and act upon approval of an Ordinance authorizing the issuance of $2,500,000 General
Obligation Bonds,Series 2002,dated September 15,2002 and all other matters related thereto.
Public Hearings
7. Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF-
8.5/17) to Planned Development (PD) for Single-Family Residential, generally located east of Ballard
Avenue and east of the existing Southplace Estates Phase IV Addition, being a portion of a 48.516 acre
tract, as described in County Clerk's File No. 95-0018290 of the Deed Records of Collin County, Texas,
and being all of a certain 12.754 acre tract of land situated in the Allen Atterberry Survey,Abstract No.
23,City of Wylie,Collin County,Texas. (Zoning Case 2002-')8)
8. Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF-
8.5/17) and Neighborhood Services (NS) to Planned Development (PD) for Single-Family Residential,
generally located east of Ballard Avenue and south of the existing Southplace Estates Phase I Addition,
being a portion of a 48.516 acre tract, as described in County Clerk's File No. 95-0018290 of the Deed
Records of Collin County,Texas,and being all of a certain 10.129 acre tract of land situated in the Allen
Atterberry Survey,Abstract No. 23,City of Wylie,Collin County,Texas. (Zoning Case 2002-09)
9. Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF-
8.5/17) to Planned Development (PD) for Single-Family Residential, generally located east of Country
Club Road(F.M. 1378)and north of Park Blvd,being a portion of that tract of land described in the deed
to Birmingham Land, Ltd., as recorded in County Clerk's File No. 94-0029675 of the Deed Records of
Collin County,Texas, and being a 5.911 acre tract of land and an 8.044 acre tract of land situated in the
J.McUlmurry Survey,Abstract No. 629,City of Wylie,Collin County,Texas. (Zoning Case 2002-10)
10. Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF-
10/19) to Planned Development (PD) for Single-Family Residential, generally located east of Country
Club Road(F.M. 1378)and south of Park Blvd,being a portion of That tract of land described in the deed
to Birmingham Land, Ltd., as recorded in County Clerk's File No. 98-007022 of the Deed Records of
Collin County, Texas, and being a 94.121 acre tract of land situated in the D.W. Williams Survey,
Abstract No.695,City of Wylie,Collin County,Texas. (Zoning Case 2002-11)
11. Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF-
10/19) to Planned Development (PD) for Single-Family Residential, generally located east of Country
Club Road (F.M. 1378) and north of Birmingham Farms Phase 2A and the Meadows of Birmingham
Phase 1 Additions, being a portion of a tract of land described in a deed to Birmingham Land Ltd., as
recorded in Clerk's File No. 98-007022,Deed Records of Collin County, Texas, and all of a tract of land
described in a deed to Wylie LS.D., as recorded in Volume 2493,Page 580 of the Deed Records of Collin
County, Texas, and being a certain 80.767 acre tract of land situated in the D.W. Williams Survey,
Abstract No. 1021, the Mercer Phelan Survey, Abstract No. 695, City of Wylie, Collin County, Texas.
(Zoning Case 2002-12)
In addition to any specifically identified Executive Sessions, Council may convene into Executive Session at any
point during the open meeting to discuss any item posted on this agenda. The Open Meetings Act provides specific
exceptions that require that a meeting be open. Should Council elect to convene into Executive Session, those
exceptions will be specifically identified and announced. Any subsequent action, as a result of this Executive
Session,will be taken and recorded in open session.
I certify that this Notice of Meeting was posted on this day of ,2002 at 5:00 p.m. as required
by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media
contacted. As a courtesy,this agenda is also posted to the City of Wylie Website at wwIv.ci.wvlie.tx.us
City Secretary Date Notice Removed
The Wylie Municipal Complex is Wheelchair accessible. Sign interpretation or other special assistance for
disabled attendees must be requested 48 hours in advance by contz sting the City Secretary's office at 972/442-8100
or TD 972/442-8170.
Page 3 of 3
MINUTES
Wylie City Council
Tuesday, September 10, 2002 — 6:0 0 p.m.
Wylie Municipal Complex—Council Chambers
2000 State Highway 78 North
CALL TO ORDER
Council Present:Mayor John Mondy,Councilman Joel Scott,Councilwoman Reta Allen,Councilman Eric Hogue,
Councilman Merrill Young,Councilman J.C. Worley and Councilman Chris Trout.
Staff Present: Anthony Johnson, City Manager, Mindy Manson, Assistant City Manager, Brady Snellgrove,
Finance Director,Chris Hoisted,City Engineer;and Barbara Salinas,City Secretary.
INVOCATION&PLEDGE OF ALLEGIANCE
Rev. Al Draper, First Baptist Church of Wylie was present to provide the Invocation. Councilman
Hogue was asked to lead the Pledge of Allegiance.
PRESENTATIONS&PROCLAMATIONS
The Mayor and Mayor Pro Tem presented a Proclamation recognizing and honoring Shane Sorrells for
action taken as a result of an apartment complex fire. Shane was instrumental in alerting residents of
the fire.
C1 1 h.NS PARTICIPATION
None.
CONSENT AGENDA
A. Approval of the minutes from the May 28,August 13, and August 27,2002 Regular Meetings; and the
August 15,2002 Special Called Meeting.
B. Consider and act upon a Preliminary Plat for the for The Village Addition,generally located south of
Fleming Drive and east of Westgate Way between the Westgate Hollow Addition and the Bachon
Townhomes Addition,being all of a certain 16.842 acre tract of land,as described in a deed to David
Litowitz as recorded in County Clerk's File Number 93-0100356 of the Deed Records of Collin County,
Texas situated in the E.C.Davidson Survey,Abstract No.266,City of Wylie,Collin County,Texas.
C. Consider and act upon a request from the Wylie Chamber of Commerce and Wylie Downtown
Merchants to use Olde City Park and the Bart Peddicord Community Center for the Wylie Country
Fair.
D. Consider and act upon a request from the Wylie Youth Soccer Association to use Community Park for
the W.Y.S.A."Soccer Fest."
Councilman Scott asked to remove Consent Agenda Item A. Councilman Scott asked that Page 3, Item No. 5,
second Paragraph reflect that Councilman Young made the motion with a second by Councilman Worley. With
no further corrections, Councilman Scott made a motion to approve Consent Agenda Items A, B, C, and D.
Councilwoman Allen seconded the motion. The motion was approved,7-0.
RECESS CITY COUNCIL—6:11 p.m.
The Mayor called for a recess to allow the Parks and Recreation Facilities Development Corporation Board to
convene.
Minutes—September 10,2002
Wylie City Council
Page 1
CALL TO ORDER�6:13 p.m.
PARKS :RE ATL N PACTLITIKSDK-VKLOPNWIT CORPORATION
Parks and Recreation Facilities Development Corporation Board Members present: Mayor John Mondy,
Councilman J.C.Worley,Councilman Chris Trout,Councilman Eric Hogue,Library Board representative,Shirley
Burnett and Parks and Recreation Representative, Lisa Williams. Library representative, Dan Chesnut was
absent.
la. Consider and Act Upon Approval of the FY03 4B Budget, authorizing expenditures for the FY03
Community Services Facilities Capital Improvement Plan.
Councilman Trout made a motion to approve the FY03 4B Budget, authorizing expenditures for the FY03
Community Service Facilities Capital Improvement Plan. Councilman Worley seconded the motion. A vote was
taken and the motion was approved,6-0. Library Board representative,Chesnut absent.
ADJOURN—6:13 p.m.
PARKS&RECREATION FACILITIES DEVELOPMENT CORPORATION
RECONVENE CITY COUNCIL—6:13 p.m.
ITEMS FOR INDIVIDUAL CONSIDERATION AND ACt ION
1. Consider and Act Upon Approval of the FY03 4B Budget and the Community Services Facilities
Capital Improvement Plan
Councilman Worley made a motion to approve the FY03 4B Budget and the Community Services Facilities
Capital Improvement Plan. Councilman Young seconded the motion. A vote was taken and the motion was
approved,7-0.
2. Consider and act upon approval of an Ordinance of the City of Wylie,Texas,amending the budget for
Fiscal Year 2002,beginning October 1,2001,and ending September 30,2002; repealing all conflicting
ordinances;containing a severability clause; and providing for an effective date.
Mr. Brady Snellgrove, Finance Director, addressed this item providing Council a brief background on the
proposed amendments.
Councilman Worley made a motion to approve an Ordinance of the City of Wylie,Texas,amending the budget for
Fiscal Year 2002,beginning October 1,2001 and ending September 30,2002;repealing all conflicting ordinances;
containing a severability clause and providing for an effective date. Councilman Hogue seconded the motion. A
vote was taken and the motion was approved,7-0.
3. Hold a public hearing and consider and act upon an ordinance of the City of Wylie,Texas,adopting a
budget and appropriating resources for Fiscal Year 2003, beginning October 1, 2002, and ending
September 30,2003.
Mr. Brady Snellgrove, Finance Director, addressed this item providing Council a brief background on the
proposed budget.
The Mayor opened the Public Hearing and asked that anyone wishing to speak either in favor or opposition of the
proposed budget to please come forward and state their name and address for the record and limit their comments
to five minutes. With no response,the Mayor then closed the Public Hearing.
Councilman Young made a motion to approve the ordinance of the City of Wylie,Texas, adopting a budget and
appropriating resources for Fiscal Year 2003, beginning October 1, 2002, and ending September 30, 2003.
Councilman Worley seconded the motion. A vote was taken and the motion was approved, 7-0.
Minutes—September 10,2002
Wylie City Councl
Paget
4. Consider and act upon an ordinance fixing the tax rate/levy for 2002 and for the fiscal year 2002-2003
Budget. The tax rate proposed is seventy-one and half cents($0.715)per$100 of assessed value.
Councilman Young made a motion to approve the ordinance fixing the tax rate/levy for 2002 and for the fiscal
year 2002-2003 Budget at the rate proposed of seventy-one and half cents ($0.715)per $100 of assessed value.
Councilman Worley seconded the motion. A vote was taken and the motion was approved,7-0.
5. Consider and act upon a Resolution to reimburse certain capital and related expenditures with
proceeds from future debt revenues from general obligation bonds.
Mr. Brady Snellgrove,Finance Director addressed this item providing Council a brief background on the intent
and necessity of the proposed Resolution.
Councilman Hogue made a motion to approve the Resolution to reimburse certain capital and related expenditures
with proceeds from future debt revenues from general obligation bonds. Councilwoman Allen seconded the
motion. A vote was taken and the motion was approved,7-0.
6. Hold a Public Hearing to consider and act upon a change in zoning from Agriculture(A)to Planned
Development(PD)for Single-Family Residential,generally located west of FM 544 South and south of
Stone Road and Stoneridge Farms Addition,being all of a certain 45.07 acre tract of land,as described
in Volume 309, Page 285 of the Deed Records of Collin County, Texas and being the same tract
described in Volume 2359, Page 296 of the Deed Records of Collin County, Texas, situated in the A.
Atterberry Survey,Abstract No.23,City of Wylie,Collin County,Texas.(Zoning Case No.2002-06)
Mr. Claude Thompson addressed this item and advised the Council that the applicant has requested that the
application be withdrawn from consideration.
The Mayor then opened the Public Hearing and asked that anyone wishing to speak either in favor or opposition of
the request to please come forward, state their name and address for the record and limit their comments to five
minutes. With no response,the Mayor then closed the Public Hearing.
7. Hold a Public Hearing to consider and act upon a change in zoning from Neighborhood Services(NS)to
Single-Family 8.5/17 (SF-8.56/17) Residential, generally located east of Ballard Avenue and south of
Southplace Estates Addition,being part of a certain 48.516 acre tract as described in Clerks File No.95-
0018290,in the Deed Records of Collin County,Texas.(Zoning Case No.2002-07)
Mr. Claude Thompson addressed this item and advised the Council that the applicant has requested that the
application be withdrawn from consideration.
The Mayor then opened the Public Hearing and asked that anyone wishing to speak either in favor or opposition of
the request to please come forward, state their name and address for the record and limit their comments to five
minutes. With no response,the Mayor then closed the Public Hearing.
8. Consider and act upon approval of an Ordinance abandoning the right-of-way of Butler Street between
South Ballard Avenue and South Jackson Avenue,and abandoning the right-of-way of the alley within
Block 33 of the Railroad Addition(being the segment running north-to-south between Butler Street and
State Highway 78 and located between Ballard Avenue and Jackson Avenue).
Mr. Claude Thompson addressed this item and provided Council a brief background on the intent of the proposed
ordinance. Mr.Thompson stated that adjoining property owners have requested that the City abandon the public
rights-of-way that segment of Butler Street between South Ballard Avenue and South Jackson Avenue and the
segment of the alley within Block 33 of the RailRoad Addition,between Ballard Avenue and Jackson Avenue and
extends between Butler Street and S.H. 78. He stated that both Butler Street and the alley were created by the
platting of the Railroad Addition,one of the original subdivisions within the City of Wylie. The Butler Street
Minutes—September 10,2002
Wylie City Council
Page 3
Agenda Item No.8—continued
right-of-way is 80 feet wide and the segment to be abandoned is approximately 270 feet in length,totaling 21,600
square feet. Butler has 35 feet of asphalt paving and open ditch drainage,which are not centered within the right-
of-way but is offset 5.5 feet toward the north right-of-way line. Butler merges with Jackson Avenue in a three-
way intersection at State Highway 78. He stated that in July of 2002, the City Council rezoned the properties
abutting Butler on the south from Single-Family Residential(SF 8.5/17)to Corridor Commercial (CC)District.
The western portion of this property fronting Jackson is occupied by the Regal Lube and Oil, and the eastern
portion fronting Ballard is currently vacant but anticipate developments of office and retail uses.
Mr. Thompson stated that the alley is 20 feet wide and the segments to be abandoned is 103.75 feet long,
containing 2,075 square feet. The alley is unimproved, but serves as the location of electric lines. Properties
abutting the subject alley are zoned Corridor Commercial(CC)District,and the eastern portion fronting Ballard
Avenue is occupied by a retail use. All owners of properties abutting the subject segments of Butler and the alley
have indicated agreement with the closure as well as potential interest in ownership of that portion of the right-of-
way that abuts their parcels. Replatting of adjacent properties in order to incorporate the right-of-way and create
easements for utilities will require future approval of the City Council.
Mr. Thompson stated that Wylie City Code(Ordinance No. 96-25)requires that the City convey,sell or exchange
abandoned street or alley property for fair market value,and is precluded from giving the property away or selling
it for less than fair market value. The City acquired the services of Right-of-Way Acquisition Consultants to
conduct an appraisal of the property and establish its fair market value that indicated that the fair market value of
the property is established at $8.50 per square foot for the 23,675 square feet, or a total value of$201,238 and
rounded by the appraiser to$200,000. Mr. Thompson stated that the property owners have questioned the$8.50,
but are willing to move forward.
Councilman Worley made a motion to approve the Ordinance abandoning the right-of-way of Butler Street
between South Ballard Avenue and South Jackson Avenue, and abandoning the right-of-way of the alley within
Block 33 of the Railroad Addition (being the segment running north-to-south between Butler Street and State
Highway 78 and located between Ballard Avenue and Jackson Avenue). Councilman Hogue seconded the motion.
A vote was taken and the motion was approved,7-0.
9. Consider and act upon a variance of requirement for alleys,to permit 15 feet rights-of-way and 12 feet
pavement,for a 34 acre undeveloped tract generally located west of North Ballard Avenue(F.M.2514)
and south of the Harvest Bend Addition.
Mr. Claude Thompson addressed this item and provided Council with a brief background on the variance. Mr.
Thompson stated that Section 5.04.B.(3)of the Subdivision Regulations,adopted in 1993, states that"Alleys for
front entry lots shall be constructed a minimum of 10 feet in width within a minimum 15 feet of right-of-way".
The Subdivision Regulations require 12 feet of paving within 20 feet rights-of-way for rear entry lots,comparable
to the requirements of the Thoroughfare Standards.
He advised that the subject tract is the old Peerless Manufacturing property,rezoned from Industrial(I)to Single
Family-8.5 Residential District with the City-wide revision of the Zoning Ordinance and Map in February of 2002.
The applicant intends to develop a residential subdivision with front entry garages which conforms with the
current SF-8.5 requirements of the Zoning Ordinance. The applicant contends that wider alley rights-of-way of
the new Thoroughfare Standards is restrictive and forces the elimination of lots,due to the unique configuration of
the subject tract and its adjacency to an existing 15 feet wide alley within a developed subdivision.
Mr.Thompson stated that the applicant also anticipates construction of streets within the new development which
have 31 feet of pavement within 50 feet of rights-of-way. These streets will continue streets from the adjacent
subdivision which were constructed with 27 feet of pavement within 50 feet of right-of-way. The current
Thoroughfare Standards require 55 feet of right-of-way with 31 feet of pavement. The City Engineer has
approved the proposed reduction in street right-of-way width for the subject development,and intends to propose a
similar revision to the Thoroughfare Standards.
Minutes—September 10,2002
Wylie City Counal
Page 4
Agenda Item No.9-continued
Mr. Thompson stated that staff is recommending app,oval and that the requested variance will result in alleys
which comply with the minimum alley widths required by the Subdivision Regulations. He stated that the
pavement will remain the same. There was some discussion and concerns regarding issues with Anne Drive.
Councilman Trout made a motion to approve the a variance of requirement for alleys,to permit 15 feet rights-of-
way and 12 feet pavement,for a 34 acre undeveloped tract generally located west of North Ballard Avenue(F.M
2514)and south of the Harvest Bend Addition. Councilman Worley seconded the motion. A vote was taken and
the motion was approved,7-0.
READING OF ORDINANCES TITLE & CAPTION APPROVED BY COUNCIL AS
REQUIRED BY WYLIE CITY CHARTER,ARTICLE III,SECTION 13 D.
Captions for approved Ordinances 2002-30, 31, 32 and 33 were then read into the record.
WORK SESSION
The Mayor and Council were all present for the Work Session.
Staff present for the Work Session include,Mr.Biff Johnson,City Manager,Jack Jones, Superintendent of Public
Works; Shanea Jennings, Public Information Officer; Chris Hoisted, City Engineer and Barbara Salinas, City
Secretary.
Update Council on Storm Water Phase II Regulations.
Mr.Mike Sferra made a presentation to the Staff and Council with regard to the Storm Water Phase II regulations
as mandated by the TNRCC. He stated that the deadline to acquire federally mandated state coverage for a
Municipal Separate Storm Sewer System is March of 2003 with a five-year period for implementation. He stated
that the Program would involve the development and implementation of a plan that would include public
participation, education, implementation and enforcement. Mr. Sferra then provided a video presentation on
Storm Water Regulations.
There was some discussion with Council regarding the implementation and importance of a program for the City
of Wylie. The Mayor thanked Mr. Sferra for the informative update on the Storm Water Regulations.
ADJOUICSIMENT
With no further business to come before Council,the meeting was then adjourned at 7:15 p.m.
John Mondy,Mayor
ATTEST:
City Secretary
Minutes—September 10,2002
Wylie City Council
Page 5
AVYLIE CITY COUNCIL
AGENDA ITEM NO. B.
September 24, 2002
Issue
Consider and act upon a Preliminary Plat for the for The Stiles Crossing Addition,being all of a certain 34.0839
acre tract of land,generally located west of North Ballard Avenue(FM 2514)and north of Brown Street(FM
4312),as described in a deed to Peerless Manufacturing Company as recorded in Volume 744,Page 515 of the
Deed Records of Collin County,Texas,and being situated in the S.B. Shelby Survey,Abstract No. 820,City of
Wylie,Collin County,Texas.
Background
The Preliminary Plat under consideration will create 100 single-family residential lots and right-of-way for the
extension of Ann Drive. The subject property totals 34.01 acres in size.
This tract of land was rezoned from Industrial(I)to Single-Family(SF-8.5)Residential District in February of
2002 with the adoption of the revised city-wide Zoning Ordinance and Map.
Section 212.005 of the Texas Local Government Code states that "the municipal authority responsible for
approving plats must approve a plat that satisfies all applicable regulations". Section 212.009(a)states that"the
municipal authority responsible for approving plats shall act upon a plat within 30 days after the date the plat is
filed. A plat is considered approved by the municipality unless it is disapproved within that time period"
Financial Considerations
Plat application fees have been paid. The applicant is aware that development impact fees must be paid prior to
issuance of a building permit on each lot.
Other Considerations
1. The property is traversed by several major water and gas transmission corridors, and the development
anticipates using these corridors as a greenbelt pedestrian trail system.
2. The Plat provides for much of the right-of-way needed to complete the extension of Ann Drive toward the
east to Ballard Avenue.
3. The current Thoroughfare Standards require that street be 31 feet of pavement within 55 feet ofright-of-way
and alleys provide 20 feet of right-of-way and 12 feet of pavement. On September 10,2002,the City Council
approved a waiver of rights-of-way widths for the subject property,allowing the proposed streets with 31
feet of pavement within 50 feet of right-of-way,and alleys will provide 12 feet of pavement within 15 feet of
right-of-way. The existing Pointe North Addition abutting to the west provides streets which are 27 feet of
pavement within 50 feet of right-of-way and alleys of 10 feet of pavement within 15 feet of right-of-way.
4. On August 30, 2002,the Parks and Recreation Advisory Board agreed to accept funds in lieu of land in
compliance with park dedication requirements.
5. The Preliminary Plat complies with all applicable technical requirements of the City of Wylie.
Board/Commission Recommendation
At the September 17,2002,Planning and Zoning Commission meeting,the Commission voted 5-0 to recommend
approval of this Preliminary Plat
Staff Recommendation
Approval. The proposed Plat provides an appropriate transition between the new requirements of the current
code and the existing Pointe North Addition developed in compliance with the previous requirements.
The Departments of Planning, Engineering, Development Services, Public Works and Fire concur with this
recommendation.
Attachments
Preliminary Plat
p - 1
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Pr-•ared • Re ed by Finan City i ager, proval
WYLIE CITY COUNCIL
AGENDA ITEM NO. C .
September 24, 2002
Issue
Consider and act upon a Final Plat for the Barber Addition,being all of a certain 8.00 acre tract of land,generally located
south of F.M.544 and east of Regency Drive,as described in a deed to Austin Wylie Realty,LTD,as recorded in Volume
4921,Page 1206 of the Deed Records of Collin County,Texas,and being situated in the William Sachse Survey,Abstract
No. 835,City of Wylie,Collin County,Texas.
Background
The Final Plat for the Barber Addition includes 8.00 acres and will create a single lot for Office/Warehouse uses. This
property is located within the Regency Business Park but has never been platted. The property is zoned Business Center
(BC)District.
The Site Plan and Preliminary Plat for the subject property were reviewed at the July 2, 2002 Planning and Zoning
Commission meeting and the Preliminary Plat approved by the City Council on July 23,2002.
Section 212.005 of the Texas Local Government Code states that"the municipal authority responsible for approving plats
must approve a plat that satisfies all applicable regulations". Section 212.009(a)states that"the municipal authority
responsible for approving plats shall act upon a plat within 30 days after the date the plat is filed. A plat is considered
approved by the municipality unless it is disapproved within that time period"
Financial Considerations
Plat application fees have been paid. The applicant is aware that development impact fees must be paid prior to issuance
of a building permit on each lot.
Other Considerations
The Final Plat substantially conforms to the approved Site Plan and Preliminary Plat and complies with the Subdivision
Regulations and all other pertinent code requirements of the City of Wylie.
Board/Commission Recommendation
At the September 3,2002,Planning and Zoning Commission meeting,the Commission voted 5-0 to rid approval
of this Final Plat.
Staff Recommendation
Approval. The Departments of Planning,Engineering,Development Services,Public Works and Fire concur with this
recommendation.
Attachments
Final Plat
1 `
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epar“ by Re ' ed by Finance City Man pproval
VVYLIE CITY COUNCIL
CONSENT AGENDA ITEM Q
September 24, 2002
Issue
Consider and act upon approval of a Resolution authorizing the City Manager to execute a Master
Advanced Funding Agreement(MAFA)with the Texas Department of Transportation(TxDOT)
Background
TxDOT has established a master agreement document that sets out the relationship between
municipalities and the State related to TxDOT projects. The MAFA identifies the areas of responsibility
for each jurisdiction and provides for the more efficient implementation of each project. With these
ground rules established, TxDOT and municipalities can then enter into simple Local Project Advance
Funding Agreements(LPAFA)on a project specific basis.
Specific to the City of Wylie, this TxDOT district began the process of adopting the MAFAs several
years ago. In recent discussions, both entities had assumed that a MAFA had been approved, when
further research determined that it had not. Approval of the agreement is necessary for any future
TxDOT project. A LPAFA for the construction of Highway 78 from Eubanks to Springcreek Blvd will
be presented to Council in the near future.
Other Considerations
N/A
Financial Consideration
N/A
Board/Commission Recommendations
N/A
Staff Recommendations
Staff recommends approval of the Master Advance Funding Agreement with the Texas Department of
Transportation
Attachments
Resolution
Agreement
i
repare by ' evie by inance City Man17proval —�
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS, AUTHORIZING THE MAYOR TO EXECUTE AND APPROVE THE
MASTER ADVANCE FUNDING AGREEMENT WITH THE TEXAS
DEPARTMENT OF TRANSPORTATION.
WHEREAS, the elements of contracts between the Texas Department of transportation(TxDOT)
and municipalities vary from project to project including the project specifications and the funding
arrangements; and
WHEREAS, in order to streamline the contract process, TxDOT has designed: (1) a Master
Advance Funding Agreement (MAFA) and (2) a Local Project Advance Funding Agreement (LPAFA);
and
WHEREAS, the MAFA contains what may become statewide contract standards which are
generally agreeable to all cities and counties;and
WHEREAS,this MAFA will need to be approved only one time by the local municipality; and
WHEREAS,the LPAFA contains provisions related only to the local project needs; and
WHEREAS,the LPAFA is short and simple to understand and complete for routine projects; and
WHEREAS, exceptions to the MAFA or LPAFA may be addressed by specific amendments;and
WHEREAS, the governing terms of this MAFA will provide for efficient and effective contract
administration of the LPAFAs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS:
SECTION 1. That the City Council authorizes the Mayor to execute and approve the Master
Advance Funding Agreement(MAFA)with the Texas Department of Transportation(TxDOT).
SECTION 2. That this Resolution shall take effect immediately from and after its passage.
DULY RESOLVED by the City Council of the City of Wylie, Texas, on this the 24th day of
September, 2002.
John Mondy, Mayor
ATTEST:
Barbara Salinas, City Secretary
STATE OF TEXAS §
COUNTY OF TRAVIS §
MASTER AGREEMENT
GOVERNING
LOCAL TRANSPORTATION PROJECT
ADVANCE FUNDING AGREEMENTS
THIS MASTER AGREEMENT (MAFA) is made by and between the State of Texas, acting by and
through the Texas Department of Transportation hereinafter called the "State", and the City of Wylie,
acting by and through its duly authorized officials, hereinafter called the "Local Government."
WITNESSETH
WHEREAS, the Intermodal Surface Transportation and Efficiency Act of 1991 (ISTEA) and the
Transportation Equity Act for the 21st Century (TEA-21) codified under Title 23 U.S.C. Section 101 et
seq., authorize transportation programs to meet the challenges of protecting and enhancing
communities and the natural environment and advancing the nation's economic growth and
competitiveness; and
WHEREAS, ISTEA and TEA-21 establish federally funded programs for transportation improvements
to implement its public purposes; and
WHEREAS, Title 23 U.S.C. Section 134 requires that Metropolitan Planning Organizations and the
States' Transportation Agencies to develop transportation plans and programs for urbanized areas of
the State; and
WHEREAS, the Texas Transportation Code, Sections 201.103 and 222.052 establish that the State
shall design, construct and operate a system of highways in cooperation with local governments; and
WHEREAS, federal and state laws require local governments to meet certain contract standards
relating to the management and administration of State and federal funds; and
WHEREAS, the governing terms of this Master Agreement will provide for efficient and effective
contract administration of the types of Local Project Advance Funding Agreements (LPAFA) listed in
Attachment A; and,
WHEREAS, the Texas Government Code, Section 441.189 allows any state record to be created or
stored electronically in accordance with standards and procedures adopted as administrative rules of
the Texas State Library and Archives Commission; and
WHEREAS, the Governing Body of the Local Government has approved entering into this Master
Agreement by resolution or ordinance, which is attached hereto and made a part of this Master
Agreement as Attachment B.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
of the parties hereto, to be by them respectively kept and performed as hereinafter set forth, it is
agreed as follows:
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AGREEMENT
1. Period of the Agreements
This Master Agreement and the Local Project Advance Funding Agreements (LPAFAs) subject to
this Master Agreement become effective when signed by the last party whose signing makes the
respective agreements fully executed. This Master Agreement shall remain in effect until
terminated as provided in Article 2.
2. Termination of this Master Agreement
This agreement may be terminated by any of the following conditions:
a. by mutual written consent and agreement of all parties.
b. by any party with 90 days written notice. If this Master Agreement is terminated under this
clause, all existing, fully executed LPAFAs made under this Master Agreement shall
automatically incorporate all the provisions of this Master Agreement.
c. by either party, upon the failure of the other party to fulfill the obligations as set forth in this
Master Agreement.
3. Termination of the Local Project Advance Funding Agreement (LPAFA)
An LPAFA shall remain in effect until the project is completed and accepted by all parties, unless:
a. the agreement is terminated in writing with the mutual consent of the parties, or;
b. because of a breach of this Master Agreement or a breach of the Local Project Advance
Funding Agreement. Any cost incurred due to a breach of contract shall be paid by the
breaching party.
c. After the PS&E the local government may elect not to provide the funding and the project does
not proceed because of insufficient funds; the local government agrees to reimburse the State
for its reasonable actual costs incurred during the project.
d. Conditions for termination as specified in the LPAFA are fulfilled.
4. Amendments
a. Amendment of this Master Agreement by Notice with Mutual Consent: The State may notify
the Local Government of changes in this Master Agreement resulting from changes in
federal or state laws or rules or regulations and these changes in the Master Agreement
shall be incorporated into this agreement unless the State is notified by the Local
Government within 60 days. From time to time, the State may issue numbered
restatements of this MAFA to wholly reflect its amendments.
b. This Master Agreement may be amended due to changes in the agreement or the
responsibilities of the parties. Such amendment must be made through a mutually agreed
upon, written amendment that is executed by the parties.
c. The notice of amendment and the amendment to this Master Agreement may be in an
electronic form to the extent permitted by law and after a prior written consent of the parties
to this agreement is made.
d. Amendments to the LPAFAs due to changes in the character of the work or terms of the
agreement, or responsibilities of the parties relating to a specific project governed under
this Master Agreement may be enacted through a mutually agreed upon, written
amendment to the LPAFA.
5. Remedies
This agreement shall not be considered as specifying the exclusive remedy for any agreement
default, but all remedies existing at law and in equity may be availed of by either party to this
agreement and shall be cumulative.
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6. Utilities
If the required right of way encroaches upon existing utilities and the proposed project requires
their adjustment, removal or relocation, the Local Government will be responsible for determining
the scope of utility work and notify the appropriate utility company to schedule adjustments, unless
specified otherwise in a specific LPAFA under other provisions of this MAFA.
The Local Government shall be responsible for the adjustment, removal or relocation of utility
facilities in accordance with applicable State laws, regulations, rules, policies and procedures.
This includes, but is not limited to: 43 TAC §15.55 relating to Construction Cost Participation; 43
TAC §21.21 relating to State Participation in Relocation, Adjustment, and/or Removal of Utilities;
and, 43 TAC§ 21.31 et seq. relating to Utility Accommodation. The Local Government will be
responsible for all costs associated with additional adjustment, removal, or relocation during the
construction of the project, unless this work is provided by the owners of the utility facilities:
a. per agreement;
b. per all applicable statutes or rules, or;
c. as specified otherwise in a LPAFA.
Prior to letting a construction contract for a local project, a utility certification must be made
available to the State upon request stating that all utilities needing to be adjusted for completion of
the construction activity have been adjusted.
7. Environmental Assessment and Mitigation
Development of a local transportation project must comply with the National Environmental Policy
Act and the National Historic Preservation Act of 1966, which require environmental clearance of
federal-aid projects.
a. The Local Government is responsible for the identification and assessment of any environmental
problems associated with the development of a local project governed by this agreement, unless
provided for otherwise in the specific project agreement.
b. The Local Government is responsible for the cost of any environmental problem's mitigation and
remediation, unless provided for otherwise in the specific project agreement.
c. The Local Government is responsible for providing any public meetings or public hearings
required for development of the environmental assessment, unless provided for otherwise in the
specific project agreement.
d. The Local Government shall provide the State with written certification from appropriate regulatory
agency(ies) that identified environmental problems have been remediated, unless provided for
otherwise in the specific project agreement.
8. Compliance with Texas Accessibility Standards and ADA
All parties to this agreement shall ensure that the plans for and the construction of all projects
subject to this Master Agreement are in compliance with the Texas Accessibility Standards (TAS)
issued by the Texas Department of Licensing and Regulation, under the Architectural Barriers Act,
Article 9102, Texas Civil Statutes. The TAS establishes minimum accessibility requirements to be
consistent with minimum accessibility requirements of the Americans with Disabilities Act (P.L.
101-336) (ADA).
9. Architectural and Engineering Services
Any party to this contract may have responsibility for effecting the performance of architectural
and engineering services. Or, the parties may agree to be individually responsible for portions of
this work. The LPAFA shall define the party responsible for performance of this work.
The engineering plans shall be developed in accordance with the applicable State's Standard
Specifications for Construction and Maintenance of Highways, Streets and Bridges, and the
Page 3 of 14
special specifications and special provisions related thereto, unless specifically stated otherwise in
the LPAFA and approved by the State.
In procuring professional services, the parties to this agreement must comply with federal
requirements cited in 23 CFR Part 172 if the project is federally funded and with Texas
Government Code 2254, Subchapter A, in all cases.
Professional services contracts for federally funded projects must conform to federal
requirements, specifically including the provision for participation by disadvantaged business
enterprises (DBEs), ADA, and environmental matters.
10.Construction Responsibilities
a. Unless specifically provided for otherwise in the LPAFA, the State shall advertise for
construction bids, issue bid proposals, receives and tabulate the bids and award and
administer the contract for construction of the Project. Administration of the contract includes
the responsibility for construction engineering and for issuance of any change orders,
supplemental agreements, amendments, or additional work orders, which may become
necessary subsequent to the award of the construction contract. In order to ensure federal
funding eligibility, projects must be authorized by the State prior to advertising for construction.
b. All contract letting and award procedures must be approved by the State prior to letting and
award of the construction contract, whether the construction contract is awarded by the State
or by the Local Government.
c. All contract change order review and approval procedures must be approved by the State prior
to start of construction.
d. Upon completion of the Project, the party constructing the project will issue and sign a
"Notification of Completion" acknowledging the Project's construction completion.
e. For federally funded contracts, the parties to this agreement will comply with federal
construction requirements cited in 23 CFR Part 635 and with requirements cited in 23 CFR
Part 633, and shall include the latest version of Form "FHWA-1273" in the contract bidding
documents. If force account work will be performed, a finding of cost effectiveness shall be
made in compliance with 23 CFR 635, Part B.
11. Project Maintenance
The Local Government shall be responsible for maintenance of locally owned roads after
completion of the work and the State shall be responsible for maintenance of state highway
system after completion of the work if the work was on the state highway system, unless
otherwise provided for in the LPAFA or other prior existing maintenance agreement with the Local
Government.
12. Local Project Sources and Uses of Funds
a. The total estimated cost of the Project will be clearly stated in the local project agreement. The
expected cash contributions from the federal, state, Local Governments or other parties will be
clearly stated. The State will pay for only those project costs that have been approved by the
Texas Transportation Commission.
b. A project cost estimate showing the estimated contributions in kind or in cash for each major
area of the local project will be provided in the LPAFA. This project cost estimate will show
how necessary resources for completing the project will be provided by major cost categories.
These categories include but are not limited to: (1) costs of real property; (2) costs of utility
work; (3) costs of environmental assessment and remediation; (4) cost of preliminary
engineering and design; (5) cost of construction and construction management; and (6) any
other local project costs.
Page 4 of 14
c. The State will be responsible for securing the Federal and State share of the funding required
for the development and construction of the local project. Federal share of the project will be
reimbursed to the local government on a cost basis.
d. The Local Government will be responsible for all non-federal or non-State participation costs
associated with the Project, including any overruns in excess of the approved local project
budget, unless otherwise provided for in the LPAFA.
e. Following execution of the LPAFA, but prior to the performance of any review work by the
State, the Local Government will remit a check or warrant made payable to the "Texas
Department of Transportation " in the amount specified in the LPAFA. The Local Government
will pay at a minimum its funding share for the estimated cost of preliminary engineering for the
project, unless otherwise provided for in the LPAFA.
f. Sixty (60) days prior to the date set for receipt of the construction bids, the Local Government
shall remit its remaining financial share for the State's estimated construction oversight and
construction costs, unless otherwise provided for in the LPAFA.
g. In the event the State determines that additional funding is required by the Local Government
at any time during the Project, the State will notify the Local Government in writing. The Local
Government will make payment to the State within thirty (30) days from receipt of the State's
written notification, unless otherwise provided for in the LPAFA.
h. Upon completion of the Project, the State will perform an audit of the local project costs. Any
funds due to the Local Government, the State, or the Federal government will be promptly paid
by the owing party.
i. The State will not pay interest on any funds provided by the Local Government.
j. If a waiver has been granted, the State will not charge the Local Government for the indirect
costs the State incurs on the local project, unless this agreement is terminated at the request
of the Local Government prior to completion of the project.
k. If the local project has been approved for a "fixed price" or an "incremental payment" non-
standard funding or payment arrangement under 43 TAC §15.52, the LPAFA will clearly state
the amount of the fixed price or the incremental payment schedule.
I. The Texas Comptroller of Public Accounts has determined that certain counties qualify as
Economically Disadvantaged Counties in comparison to other counties in the state as below
average per capita property value, and below average per capita income, and above average
unemployment, for certain years. The LPAFA will reflect adjustments to the standard financing
arrangement based on this designation.
m. The State will not execute the contract for the construction of a local project until the required
funding has been made available by the Local Government in accordance with the LPAFA.
13. Right of Way and Real Property
The Local Government is responsible for the provision and acquisition of any needed right of
way or real property, unless the State agrees to participate in the provision of right of way under
the procedures described herein as parts A and B of this provision.
Title to right of way and other related real property must be acceptable to the State before funds
may be expended for the improvement of the right of way or real property.
If the Local Government is the owner of any part of a project site under an LPAFA, the Local
Government shall permit the State or its authorized representative access to occupy the site to
perform all activities required to execute the work under the LPAFA.
All parties to this agreement will comply with and assume the costs for compliance with all the
requirements of Title II and Title III of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, Title 42 U.S.C.A. Section 4601 et seq., including those
provisions relating to incidental expenses incurred by the property owners in conveying the real
Page 5 of 14
property to the Local Government, and benefits applicable to the relocation of any displaced
person as defined in 49 CFR Section 24.2(g). Documentation to support such compliance must
be maintained and made available to the State and its representatives for review and inspection.
If the local government purchases right of way for a local government street, title will be acquired
in the name of the local government in accordance with applicable laws unless specifically
stated otherwise in the LPAFA and approved by the State.
If the State participates in the purchase of right of way for the state, it will be under the
processes established in the following paragraphs A or B, and the selected option shall be
specified in the LPAFA.
A. Purchase By the State for the State
The State will assume responsibility for acquisition of all necessary right of way for the
highway project. The Local Government will voluntarily contribute to the State funds equal to
ten (10) percent of the cost of the right of way for the proper development and construction of
the state highway system and shall transmit to the State a warrant or check payable to the
Texas Department of Transportation when notified by the State of the estimated cost of the
right of way. If the amount is found insufficient to pay the Local Government's obligation,
then the Local Government, upon request of the State, will supplement this amount in such
amount as requested by the State. Upon completion of the highway project and in the event
the total amount paid by the Local Government is more than ten (10) percent of the actual
cost of the right of way, any excess amount will be returned to the Local Government. Cost
of the right of way by the State shall mean the total value of compensation paid to owners,
including but not limited to utility owners, for their property interests either through
negotiations or eminent domain proceedings.
B. Purchase by the Local Government for the State
Purchase: Right of way purchases shall be a joint effort of the State and the Local
Government. Acquisition of right of way shall be in accordance with the terms of this
agreement and in accordance with applicable Federal and State laws governing the
acquisition policies for acquiring real property. The State agrees to reimburse the Local
Government for its share of the cost of such right of way providing acquisition when it has
been authorized to proceed by the State.
Location Surveys and Preparation of Right of Way Data: The State, without cost to the
Local Government, will do the necessary preliminary engineering and title investigation in
order to supply to the Local Government the data and instruments necessary to obtain
acceptable title to the desired right of way.
Determination of Right of Way Values: The Local Government agrees to make a
determination of property values for each right of way parcel by methods acceptable to the
Local Government and to submit to the State's District Office a tabulation of the values so
determined, signed by the appropriate Local Government representative. Such tabulations
shall list the parcel numbers, ownership, acreage and recommended compensation.
Compensation shall be shown in the component parts of land acquired, itemization of
improvements acquired, damages (if any), and the amounts by which the total
compensation will be reduced if the owner retains improvements. This tabulation shall be
accompanied by an explanation to support the determined values, together with a copy of
information or reports used in arriving at all determined values. Such work will be
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performed by the Local Government at its expense without cost participation by the State.
The State will review the data submitted and may base its reimbursement on the values
which are determined by this review. The State, however, reserves the right to perform at
its own expense any additional investigation deemed necessary, including supplemental
appraisal work by State employees or by employment of fee appraisers, all as may be
necessary for determination of values to constitute the basis for State reimbursement. If at
any stage of the project development it is determined by mutual-agreement between the
State and Local Government that the requirement for the Local Government to submit to
the State property value determinations for any part of the required right of way should be
waived, the Local Government will make appropriate written notice to the State of such
waiver, such notice to be acknowledged in writing by the State. In instances of such waiver,
the State by its due processes and at its own expense will make a determination of values
to constitute the basis for State reimbursement.
Negotiations: The State will notify the Local Government as soon as possible as to the
State's determination of value. Negotiation and settlement with the property owner will be
the responsibility of the Local Government without participation by the State; however, the
Local Government will notify the State immediately prior to closing the transaction so that a
current title investigation may be made to determine if there has been any change in the
title. The Local Government will deliver properly executed instruments of conveyance which
together with any curative instruments found to be necessary as a result of the State's title
investigation will be properly vest title in the State for each right of way parcel involved. The
costs incidental to negotiation and the costs of recording the right of way instruments will be
the responsibility of the Local Government. The cost of title investigation will be the
responsibility of the State.
Condemnation: Condemnation proceedings will be initiated at a time selected by the Local
Government and will be the Local Government's responsibility at its own expense except as
hereinafter indicated. The Local Government will obtain from the State without cost current
title information and engineering data at the time condemnation are to be indicated. Except
as hereinafter set forth the Local Government will concurrently file condemnation
proceedings and a notice of lis pendens for each case in the name of the State, and in
each case so filed the judgment of the court will decree title to the property condemned to
the State. The Local Government may, as set forth herein under "Excess Takings" and
where it is determined to be necessary, enter condemnation proceedings in its own name.
Property acquired in the Local Government's name for the State must comply with
requirements set forth in the engineering data and title investigation previously furnished to
the Local Government by the State at such time as the Local Government conveys said
property to the State.
Court Costs, Costs of Special Commissioners' Hearings and Appraisal Expense: Court
costs and costs of Special Commissioners' hearings assessed against the State or Local
Government in condemnation proceedings conducted on behalf of the State and fees
incident thereto will be paid by the Local Government. Such costs and fees, with the
exception of recording fees, will be eligible for ninety (90) percent State reimbursement
under the established reimbursement procedure provided such costs and fees are eligible
for payment by the State under existing law. Where the Local Government uses the State's
appraisers employed on a fee basis in Special Commissioners' hearings or subsequent
appeals, the cost of the appraiser for updating the report, for preparing new reports,
preparing for court testimony and appearing in court to testify in support of the appraisal will
be paid direct by the Local Government, but will be eligible for ninety (90) percent State
reimbursement under established procedure provided prior approval for such appraiser has
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been obtained from the State. The fee paid the appraiser by the Local Government shall be
in accordance with the fee schedule set forth in the appraiser's contract for appraisal
services with the State.
Excess Takings: In the event the Local Government desires to acquire land in excess of
that requested by the State for right of way purposes, the State's cost participation will be
limited to the property needed for its purposes. If the Local Government elects to acquire
the entire property, including the excess taking, by a single instrument of conveyance or in
one eminent domain proceeding, the property involved will be acquired in the name of the
Local Government and that portion requested by the State for right of way will be
separately conveyed to the State by the Local Government. When acquired by negotiation,
the State's participation will be based on the State's approved value of that part of the
property requested for right of way purposes, provided that such approved value does not
exceed actual payment made by the Local Government. When acquired by condemnation,
the State's participation will be in the proportionate part of the final judgment amount
computed on the basis of the relationship of the State's approved value to the State's
predetermined value for the whole property.
Improvements: Property owners will be afforded an opportunity in the negotiations to
retain any or all of their improvements in the right of way taking. In anticipation of the owner
desiring to retain improvements, the State's approved value will include the amounts by
which the upper limit of State participation will be reduced for the retention. It is further
agreed that the upper limit for the State's participation in the Local Government's cost for
an improved parcel will be reduced as shown in the State's approved value where the
owner retains an improvement which is to be moved by either the Local Government or the
owner. In the event improvements, which are, in whole or part, a part of the right of way
taking are not retained by the owner; title is to be secured in the name of the State.
The State will participate in the acquisition of a structure severed by the right of way line if
the part of the house, building or similar structure which lies outside the right of way cannot
be reconstructed adequately or there is nothing but salvage left, provided that the State's
value is established on this basis and provided that title to the entire structure is taken in
the name of the State. The State shall dispose of all improvements acquired. The net
revenue derived by the State from the disposition of any improvements sold through the
General Services Commission will be credited to the cost of the right of way procured and
shared with the Local Government.
Relocation of Utilities on Acquired State Right of Way: If the required right of way
encroaches upon an existing utility located on its own right of way and the proposed
highway construction requires the adjustment, removal or relocation of the utility facility, the
State will establish the necessity for the utility work. State participation in the cost of making
the necessary change, less any resulting increase in the value to the utility and less any
salvage value obtainable, may be obtained by either the "actual cost" or "lump sum"
procedures. Reimbursement under "actual cost" will be made subsequent to the Local
Government's certification that the work has been completed and will be made in an
amount equal to ninety (90) percent of the eligible items of cost as paid to the utility owner.
The "lump sum" procedure requires that the State establishes the eligibility of the utility
work and enters into a three-party agreement, with the owners of the utility facilities and the
Local Government, which sets forth the exact lump sum amount of reimbursement, based
on a prior appraisal. The utility will be reimbursed by the Local Government after proper
certification by the utility that the work has been done, said reimbursement to be the basis
of the prior lump sum agreement. The State will reimburse the Local Government in an
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amount equal to ninety (90) percent of the firm commitment as paid to the utility owner.
The foregoing is subject to the provision that the individual lump sum approved value shall
not exceed $20,000, except as specifically approved by the State. In those cases where a
single operation is estimated to exceed $20,000 the transaction will be brought to the
attention of the State for determination of proper handling based upon the circumstances
involved. Such utility firm commitment will be an appropriate item of right of way. The
adjustment, removal or relocation of any utility line on publicly owned right of way by
sufferance or permit will not be eligible for State reimbursement. The term "utility" under
this agreement shall include publicly, privately and cooperatively owned utilities.
Fencing Requirements: The Local Government may either pay the property owner for
existing right of way fences based on the value such fences contribute to the part taken and
damages for an unfenced condition resulting from the right of way taking, in which case the
estimated value of such right of way fences and such damages will be included in the
recommended value and the approved value, or the Local Government may do the fencing
on the property owner's remaining property.
Where the Local Government performs right of way fencing as a part of the total right of
way consideration, neither the value of existing right of way fences nor damages for an
unfenced condition will be included in the recommended value or the approved value. State
participation in the Local Government's cost of constructing right of way fencing on the
property owner's remainder may be based on either the actual cost of the fencing or on a
predetermined lump sum amount. The State will be given credit for any salvaged fencing
material and will not participate in any overhead costs of the Local Government.
If State participation is to be requested on the lump sum basis, the State and the Local
Government will reach an agreement prior to the actual accomplishment of the work as to
the necessity, eligibility and a firm commitment as to the cost of the entire fencing work to
be performed. The foregoing is subject to the provision that the lump sum approved cost
shall not exceed $20,000, except as specifically approved by the State. In the event the
cost of the fencing is estimated to exceed $20,000, the transaction will be brought to the
attention of the State for determination of proper handling based upon the circumstances
involved.
Reimbursement: The State will reimburse the Local Government for right of way acquired
after the date of this agreement in amount not to exceed ninety (90) percent of the cost of
the right of way acquired in accordance with the terms and provisions of this agreement.
The State's reimbursement will be in the amount of ninety (90) percent of the State's
predetermined value of each parcel, or the net cost thereof, whichever is the lesser
amount.
If condemnation is necessary and title is taken as set forth herein under the section entitled
"Condemnation," the participation by the State shall be based on the final judgment,
conditioned upon the State having been notified in writing prior to the filing of such suit and
upon prompt notice being given as to all action taken therein. The State shall have the right
to become a party to the suit at any time for all purposes, including the right of appeal at
any stage of the proceedings. All other items of cost shall be borne by the State and the
Local Government as provided in other sections of this agreement. If a lump sum fencing
or utility adjustment agreement has been executed, the State will reimburse the Local
Government in the amount of ninety (90) percent of the predetermined lump sum cost of
the right of way fencing or utility adjustment.
Page 9 of 14
If the Local Government prefers not to execute a lump sum agreement for either fencing or
utility adjustments, the State will reimburse on the actual cost of such fencing or
adjustments. The Local Government's request for reimbursement will be supported by a
breakdown of the labor, materials and equipment used.
General: It is understood that the terms of this agreement shall apply to new right of way
authorized and requested by the State which is needed and not yet dedicated, in use or
previously acquired in the name of the State or Local Government for highway, street or
road purposes. This agreement shall also apply, with regard to any existing right of way, to
outstanding property interests not previously acquired and to eligible utility adjustments not
previously made, as authorized and requested by the State.
It is further understood that if unusual circumstances develop in the right of way acquisition
which are not clearly covered by the terms of this agreement, such unusual circumstances
or problems will be resolved by mutual agreement between the State and the Local
Government.
14. Notices
All notices to either party by the other required under this agreement shall be delivered
personally or sent by certified or U.S. mail, postage prepaid or sent by electronic mail, (electronic
notice being permitted to the extent permitted by law but only after a separate written consent of
the parties), addressed to such party at the following addresses:
Local Government: State:
The City Manager Texas Department of Transportation
City of Wylie Attention: Dallas District Engineer
2000 Highway 78 North 4777 East Highway US 80
Wylie, Texas 75098 Mesquite, Texas 75150-6643
All notices shall be deemed given on the date so delivered or so deposited in the mail, unless
otherwise provided herein. Either party may change the above address by sending written notice
of the change to the other party. Either party may request in writing that such notices shall be
delivered personally or by certified U.S. mail and such request shall be honored and carried out
by the other party.
15. Legal Construction
In case one or more of the provisions contained in this agreement shall for any reason be held
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall
not affect any other provisions and this agreement shall be construed as if it did not contain the
invalid, illegal or unenforceable provision.
16. Responsibilities of the Parties
The State and the Local Government agree that neither party is an agent, servant, or employee of
the other party and each party agrees it is responsible for its individual acts and deeds as well as
the acts and deeds of its contractors, employees, representatives, and agents.
17. Ownership of Documents
Upon completion or termination of this agreement, all documents prepared by the State shall
remain the property of the State. All data prepared under this agreement shall be made available
to the State without restriction or limitation on their further use. All documents produced or
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approved or otherwise created by the Local Government shall be transmitted to the State in the
form of photocopy reproduction on a monthly basis as required by the State. The originals shall
remain the property of the Local Government.
18. Compliance with Laws
The parties shall comply with all Federal, State, and Local laws, statutes, ordinances, rules and
regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any
manner affecting the performance of this agreement. When required, the Local Government shall
furnish the State with satisfactory proof of this compliance.
19. Sole Agreement
This agreement constitutes the sole and only agreement between the parties and supersedes any
prior understandings or written or oral agreements respecting the agreement's subject matter.
20. Cost Principles
In order to be reimbursed with federal funds, the parties shall comply with the Cost Principles
established in OMB Circular A-87 that specify that all reimbursed costs are allowable, reasonable
and allocable to the Project.
21. Procurement and Property Management Standards
The parties shall adhere to the procurement standards established in Title 49 CFR §18.36 and
with the property management standard established in Title 49 CFR §18.32.
22. Inspection of Books and Records
The parties to the agreement shall maintain all books, documents, papers, accounting records
and other documentation relating to costs incurred under this agreement and shall make such
materials available to the State, the Local Government, and, if federally funded, the Federal
Highway Administration (FHWA), and the U.S. Office of the Inspector General, or their duly
authorized representatives for review and inspection at its office during the contract period and for
four (4) years from the date of completion of work defined under this contract or until any
impending litigation, or claims are resolved. Additionally, the State, the Local Government, and
the FHWA and their duly authorized representatives shall have access to all the governmental
records that are directly applicable to this agreement for the purpose of making audits,
examinations, excerpts, and transcriptions.
23. Office of Management and Budget (OMB) Audit Requirements
The parties shall comply with the requirements of the Single Audit Act of 1984, P.L. 98-502,
ensuring that the single audit report includes the coverage stipulated in OMB Circular No. A-128
through August 31, 2000 and stipulated in OMB Circular A-133 after August 31, 2000.
24. Civil Rights Compliance
The Local Government shall comply with the regulations of the Department of Transportation as
they relate to nondiscrimination (49 CFR Chapter 21 and 23 CFR §710.405(B)), and Executive
Order 11246 titled "Equal Employment Opportunity," as amended by Executive Order 11375 and
supplemented in the Department of Labor Regulations (41 CFR Part 60).
25. Disadvantaged Business Enterprise Program Requirements
The parties shall comply with the Disadvantaged/Minority Business Enterprise Program
requirements established in 49 CFR Part 26.
26. Debarment Certifications
The parties are prohibited from making any award at any tier to any party that is debarred or
suspended or otherwise excluded from or ineligible for participation in Federal Assistance
Programs under Executive Order 12549, "Debarment and Suspension." The parties to this
Page 11 of 14
contract shall require any party to a subcontract or purchase order awarded under this contract to
certify its eligibility to receive Federal funds and, when requested by the State, to furnish a copy of
the certification in accordance with Title 49 CFR Part 29 (Debarment and Suspension).
27. Lobbying Certification
In executing this Master Agreement, the signatories certify to the best of his or her knowledge and
belief, that:
a. No federal appropriated funds have been paid or will be paid by or on behalf of the parties to
any person for influencing or attempting to influence an officer or employee of any federal
agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any federal contract, the making of
any federal grant, the making of any federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any
federal contract, grant, loan, or cooperative agreement.
b. If any funds other than federal appropriated funds have been paid or will be paid to any person
for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with federal contracts, grants, loans, or cooperative agreements, the signatory for
the Local Government shall complete and submit the federal Standard Form-LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions.
c. The parties shall require that the language of this certification be included in the award
documents for all subawards at all tiers (including subcontracts, subgrants, and contracts
under grants, loans, and cooperative agreements) and that all subrecipients shall certify and
disclose accordingly.
By executing an LPAFA under this Master Agreement, the parties reaffirm this lobbying
certification with respect to the individual projects and reaffirm this certification of the material
representation of facts upon which reliance will be made. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Title 31 U.S.C. §1352. Any
person who fails to file the required certification shall be subject to a civil penalty of not less than
$10,000 and not more than $100,000 for each such failure.
28. Signatory Warranty
The signatories to this agreement warrant that each has the authority to enter into this agreement
on behalf of the party represented.
IN TESTIMONY HEREOF, the parties hereto have caused these presents to be executed in duplicate
counterparts.
THE LOCAL GOVERNMENT— City of Wylie STATE OF TEXAS
By: Executed for the Executive Director and
Signature approved for the Texas Transportation
Commission for the purpose and effect
of activating and/or carrying out the
Printed/Typed Title orders, established policies or work
Programs heretofore approved and
authorized by the Texas Transportation
Printed/Typed Name Commission .
Date: By:
Jennifer D. Soldano, Director,
Contract Services Office
Date:
Page 12 of 14
ATTACHMENT A
TYPES OF LPAFA FUNDING CATEGORIES UNDER THE MAFA
Federal Categories Prefix Federal Categories Prefix
Interstate Demonstration Projects
Interstate I Hi Priority Corridor on NHS DPR
Interstate Maintenance IM Rural Access Projects DPR
Interstate 4R Discretionary IDR Innovative Projects DPI
Interstate Constr. Discretionary ID Priority Intermodal Projects DPM
Congestion Corridor IVH/ITS
Bridges High Priority Projects HP
Bridge Repair/Rehab On-System BR/BH
Other
National Highway System NH
Surface Transportation Program Forest Highways FH
Urban Mobility/Rehab STP-UM
Areas<200,000 STATE CATEGORIES
Enhancement STP-TE
Metro Mobility/Rehab STP-MM Preventive Maintenance CPM
Urban Mobility/Rehab Farm-to-Market/Farm-to-Market Rehab A/AR
Urban & Rural Rehabilitation STP-R District Discretionary CD
Rural Mobility Rehab STP-RM State Funded Rehab C
Rail-Hwy Crossing Protective Devices STP-RXP Park Road C
Rail-Hwy Crossing Hazard Elimination STP-RXH State Funded Mobility C
Railroad grade Separations STP-RGS PASS/PASS Metro Match C
Safety-Hazard Elimination STP-HES Traffic Signals, Signing & Pavement C
Markings
Miscellaneous C
Congestion Mitigation &Air Quality CM Railroad Replanking CRX
State Funded Landscape C/CL
Donor State Bonus* CLM
Any Area DB State Urban Street CUS
Areas >200,000 DBM
Areas <200,000 DBU Others per LPAFA exception
Minimum Guarantee MG Off-System Bridges Program BROX
*ISTEA Funding Categories—Not Re-
established in TEA 21
Page 13 of 14
ATTACHMENT B
RESOLUTION OR ORDINANCE
Page 14 of 14
WYLIE CITY COUNCIL
AGENDA ITEM NO. E,
September 24, 2002
Issue
Consider and act upon an Interlocal Boundary Agreement with the Town of St. Paul, amending an
Agreement approved on April 8, 1975.
Background
The Wylie Independent School District submitted a request to the Town of St. Paul for the release of a
48.643 acre tract of land from St. Paul's jurisdiction. The purpose of the release is to enable the City of
Wylie to annex the property and provide municipal services. On July 15, 2002, St. Paul approved the
attached Interlocal Boundary Agreement, releasing the land. With the approval of the Agreement, staff will
initiate the process to annex the WISD property.
Other Considerations
N/A
Financial Consideration
N/A
Board/Commission Recommendations
N/A
Staff Recommendations
Staff recommends the approval of the Interlocal Boundary Agreement
Attachments
Interlocal Boundary Agreement
vt,
r ,V
Prepar ' y Re ed by Finance City er royal
INTERLOCAL BOUNDARY AGREEMENT
BETWEEN THE CITY OF WYLIE AND TOWN OF ST. PAUL
This Interlocal Boundary Agreement is entered into by and between the City of Wylie
(hereinafter"Wylie"), a Texas municipal corporation, and the Town of St. Paul (hereinafter
"St. Paul"), a Texas municipal corporation, under authority of and in accordance with the
Interlocal Cooperation Act, Chapter 791, Texas Government Code.
WHEREAS, Wylie and St. Paul find that the public welfare of each municipality will
be enhanced by proper planning for orderly growth;
WHEREAS, Wylie and St. Paul also find that under this agreement owners of
property located within the area affected by this agreement will be benefitted in planning
and developing their property, homes and businesses; and
WHEREAS, Wylie and St. Paul agree that it is in the interest of the citizens of the
areas subject to this agreement that the parties reach voluntary agreement concerning the
location of future mutual boundaries between them;
NOW, THEREFORE, this agreement is made and entered into by Wylie and St.
Paul upon and for the mutual consideration hereinafter stated, and both parties agree and
understand as follows:
1. The City of Wylie and the Town of St. Paul hereby agree that the common
corporate boundary between the respective municipalities shall be as described in
EXHIBIT A and depicted in EXHIBIT B, which exhibits are attached hereto and made a part
hereof for all purposes.
2. That the common corporate boundary described herein between the City of
Wylie and the Town of St. Paul is found acceptable and agreed upon by the governing
body of both municipalities hereto.
3. That the common corporate boundary described herein between the City of
Wylie and the Town of St. Paul shall be recognized with respect to future development of
each municipality, but that the area affected by this agreement, other than property
presently within the said municipalities, shall not be subject to taxation by the parties to this •
agreement until such time that the property is legally annexed into the municipality having
jurisdiction under this agreement.
4. That the extra-territorial jurisdiction of each city shall remain in accordance
with the terms and conditions of the 1963 Municipal Annexation Act.
5. In accordance with ordinances duly passed and adopted by the governing
bodies of the Wylie and St. Paul, the undersigned officials hereby represent and
acknowledge that they have authority to execute this agreement on behalf of the respective
municipalities to this agreement.
INTERLOCAL BOUNDARY AGREEMENT-Page 1 k^K».»».5 a»^o »^», •a.^ >�..m.m o�^
6. Failure of either party to comply with or perform any term, obligation, or
condition of this agreement shall constitute an event of default. The non-defaulting party
shall notify the other party of any default, and the defaulting party shall have thirty (30)
days to begin to cure said default. Should said default remain uncured, the non-defaulting
party shall have the right to specific performance of this agreement.
7. The laws of the State of Texas shall govern the interpretation, validity,
performance, and enforcement of this agreement. This agreement is performable in Collin
County, Texas, and exclusive venue shall lie in Collin County, Texas.
8. The provisions of this agreement are severable. If any paragraph, section,
subdivision, sentence, clause, or phrase of this agreement is for any reason held by a court
of competent jurisdiction to be contrary to law or contrary to any rule or regulation have the
force and effect of the law, the remaining portions of the agreement shall be enforced as
if the invalid provision had never been included.
9. This agreement embodies the entire agreement between the parties and may
only be modified in a writing executed by both parties.
10. This agreement shall be binding upon the parties hereto, their successors,
personal representatives and assigns.
11. It is expressly understood and agreed that, in the execution of this
agreement, no party waives, nor shall be deemed hereby to have waived any immunity or
defense that would otherwise be available to it against claims arising in the exercise of
governmental powers and functions. By entering into this agreement, the parties do not
create any obligations, express or implied, other than those set forth herein, and this
agreement shall not create any rights in parties not signatories hereto.
12. This agreement shall be effective upon execution by all parties hereto.
13. The parties hereto acting under authority of their respective governing bodies
have caused this agreement to be duly executed, in several counterparts, each of which
shall constitute an original.
APPROVED by the City Council of the City of Wylie, Texas, in a meeting held on
the day of , 2002, and executed by its authorized
representative.
CITY OF WYLIE
By:
Anthony Johnson, City Manager
INTERLOCAL BOUNDARY AGREEMENT-Page 2 Munc pauMt51 Taw iow oWY 'ntab YBounaary Ayeamam Orart tywpU
ATTEST:
Barbara Salinas, City Secretary
APPRVED by the own Council of the Town of St. Paul, Texas, in a meeting held
on the /S-L• day of , 2002, and executed by its authorized
representative.
TOWN OF ST. PAUL
By: �- . f ,if,�
Steven Hufste er, Mayor
ATTEST:
Marie Finley, Town Secret
ACKNOWLEDGED
STATE OF TEXAS §
COUNTY OF COLLIN §
This instrument was acknowledged before me on the day of
2002, by Anthony Johnson, City Manager of the City of Wylie, a Texas municipal •
corporation, on behalf of said corporation.
Notary Public, State of Texas
INTERLOCAL BOUNDARY AGREEMENT-Page 3 F•Muncn.YwSl V.W.sownoWy4.Ynfxba BWnaWnw..muvlDn 11wm
STATE OF TEXAS §
COUNTY OF COLLIN §
This instrument was acknowledged before me on the IS- day of
, 2002, by Steven Hufstetler, Mayor of the Town of St. Paul, a Texas
municipal c poration, on behalf of said corporation.
--JA NELSON
16kLiuk-at,i4d)L
' ° vein
ti r ® $ otary Public, State of Texas
fay 4 $0.22-c M
INTERLOCAL BOUNDARY AGREEMENT-Page 4 i,M{111.P.43st P211i To._AM. 0 . .".....1o��I),.od
Jul 15 02 10: 46a p. 2
STATE OF TEXAS
COLLIN COUNTY
EXHIBIT"A"
ST. PAUL/WYLIE EXTRATERRITORIAL JURISDICTION LINE
Revised:July 15,2002
COMMENCING at a point at the northwest corner of a 1.5624 acre tract of land
conveyed to Brian E. Shuler and wife,Patti J. Shuler by deed recorded in Document No.
93-0094967,Deed Records of Collin County,Texas and also being the northwest corner
of the Mercer Phalen Survey,Abstract 695,City of Wylie,Collin County,Texas;
THENCE in a southerly direction following the West line of the M.Phalen Survey,
Abstract No. 695,to a point,being the southwest corner of that certain called 1.5624 acre
tract of land,for a POINT OF BEGINNING;
THENCE from this Point of Beginning,in an Easterly direction following along the south
line of said 1.5624 acre tract,a distance of approximately 680 feet to a point,being the
southeast corner of the called 1.5624 acre tract of land;
THENCE in a northerly direction, following along the east Iine of said 1.5624 acre tract,
a distance of 100.00 feet to a point being the northeast corner of same 1.5624 acre tract,
said point also being on the south line of Quail Creek Addition as recorded in Cabinet B,
Page 170 of the Plat Records of Collin County,Texas;
THENCE in an easterly direction,following along said south line of Quail Creek
Addition approximately 1336 feet,to a point,being the northwest corner of a 5.00 acre
tract conveyed to Patsy Ruth Sheffield by deed recorded in Volume 2168,Page 238,
Deed Records of Collin County,Texas;
THENCE in a southerly direction,following along west line of said 5.00 acre tract,
passing an iron rod at its southwest corner and continuing an approximate distance of
1109 feet to a point,being the southeast corner of a 49.4165 acre tract of land as
conveyed to Wylie I.S.D. by deed recorded in Document No. 5098-1750,DRCCT,and
also being the north line of the Birmingham Land,Ltd. Tract as recorded by Deed,
Document No. 94-0029675,DRCCT;
THENCE easterly along the south line of the Camelback Development,LLC tract,CCF
No. 2001-0012720,Vol.4849,Pg. 1871 and the north line of said Birmingham Land,Ltd.
Tract,to the westerly right-of-way line of Parker Rd. Loop;
THENCE in a southerly and easterly direction at all times following the west and south
right-of-way lines of Parker Rd. Loop to the point of intersection with the south right-of-
way line of FM 2514 Parker Road;
Jul 15 02 10: 46a p. 3
THENCE in an easterly direction at all times following the south and west right-of-way
lines of FM 2514 Parker Road to the intersection of FM 2514 Parker Road and the south
right-of-way of a County Road commonly referred to as Paul Wilson Road;
THENCE easterly crossing FM 2514 Parker Road to the south right-of-way line of the
Paul Wilson Road and continuing in an easterly direction to a point for corner, said point
being the west survey line of the Francisco De La Pina Survey,Abstract 688;
THENCE northerly and at all times following the west survey line of the Francisco De La
Pina Survey to the point of intersection with the southern boundary line of the John C.
Campbell Survey,Abstract 239,said point also being the most northwestern corner of the
Francisco De La Pina Survey.
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VVTYLIE CITY COUNCIL
AGENDA ITEM NO. t
September 24, 2002
Issue
Consider and act upon a proposed amendment to the current Animal Ordinance in order to clearly define
the term'Wild Animal'.
Background
The current Animal Ordinance prohibits the keeping of Wild Animals in the City but the ordinance does
not define"Wild Animals".Not having a definition of Wild Animals has been a problem with respect to
enforcement ofthe Ordinance. The proposed amendment to the ordinance defines Wild Animals in order
to assist the Animal Control Officer with dealing with wild or exotic animals which are being housed in
the City.
Financial Considerations
None
Other Considerations
None
Board/Commission Recommendations
NA
Staff Recommendations
Staff recommends that Council pass the Ordinance Amendment
Attachments
Proposed ordinance amendment
epared by evi d by Finance City Man Approval
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING
ORDINANCE NO. 87-57, SECTION 2 (DEFINITIONS), SECTION 14(d)
(IMPOUNDMENT OF ANIMALS RUNNING AT LARGE),AND SECTION 13(c)
(BITES BY ANIMALS);PROVIDING FOR A PENALTY FOR THE VIOLATION
OF THIS ORDINANCE; PROVIDING FOR REPEALING, SAVINGS AND
SEVERABILTTY CLAUSES;PROVIDING FOR AN EIifECTIVE DATE OF THIS
ORDINANCE;AND PROVIDING FOR THE PUBLICATION OF THE CAPTION
THEREOF.
WHEREAS,the City Council of the City of Wylie, Texas("City Council")has investigated
and determined that it would be advantageous and beneficial to the citizens of the City of Wylie,
Texas ("Wylie") to amend Wylie Ordinance No. 87-57, Section 2 (Definitions), Section 14(d)
(Impoundment of Animals Running at Large), and Section 13(c) (Bites by Animals), as provided
herein;and
WHEREAS, it is in the interest of the public health, safety and welfare that animals are
controlled; and
WHEREAS,the City Council finds that all legal notices,hearings,procedures and publishing
requirements for this Ordinance have been performed and completed in the manner and form set forth
by law.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS:
SECTION 1: FINDINGS INCORPORATED. The findings set forth above are incorporated
into the body of this Ordinance as if fully set forth herein.
SECTION 2: AMENDMENT TO WYLIE ORDINANCE NO. 87-57, SECTION_2
(DEFINITIONS). Wylie Ordinance No. 87-57, Section 2 (Definitions) is hereby amended by
replacing the definition of"wild animal"to read as follows:
Wild Animal means any animal that is customarily considered dangerous,
undomesticated or not normally born and raised in captivity,including,but not limited
to the following Classes and Families of animals (specific animals are named as
examples of the Class or Family,not as a complete list of the Class or Family):
(a) Class Reptilia:
(1) Family Helodermatidae(venomous lizards)and Family Hydrophiidae
(Venomous Marine snakes);
ANIMAL CONTROL ORDINANCE(AMENDING ORDINANCE NO. 87-57)B Page 1
(2) Family Viperidae(rattlesnakes, pit vipers and true vipers);
(3) Family Elapidae(coral snakes, cobras, and mambas);
(4) Family Columbridae-Dispholidus Typus(boomslang);
(5) Bioga Dendrophilia (mangrove snake) and Kirklandii (twig snake
only); and
(6) Order Crocodilia(such as crocodiles and alligators);
(b) Class Ayes: Order Falconiforms(such as hawks,eagles,falcons andvultures);
(c) Class Mammalia: Order Carnivores,
(1) Family Felidea (such as lions, tigers, bobcats,jaguars, leopards and
cougars), except commonly domesticated cats;
(2) Family Canidae (such as wolves, dingos, coyotes, foxes and jackals)
and any hybrid of an animal listed in this section, except commonly
domesticated Dogs;
(3) Family Mustelida (such as weasels, skunks, martins, minks, badgers
and otters)except ferrets;
(4) Family Procyonidae(such as raccoons and coati);
(5) Family Ursidae(such as bears);
(6) Marsupialia (such as kangaroos, opossums, koala bears, waliabys,
bandicoots, and wombats);
(7) Chiroperta (bats);
(8) Edentata(such as sloths, anteaters, and armadillo);
(9) Probosidea(elephants);
(10) Primata(such as monkeys, chimpanzees, orangutans, and gorillas);
(11) Rodentia(such as beavers and porcupines); and
(12) Ungulata(such as antelope, deer,bison and camels);
ANIMAL CONTROL ORDINANCE(AMENDING ORDINANCE NO. 87-57)B Page 2
(d) Class Amphibi: Poisonous frogs. Does not include non-poisonous reptiles or
non-poisonous snakes.
Wild animal does not include livestock,fowl or normal household pets,such as but not limited
to Dogs,Cats,cockatiels,hamsters,guinea pigs,gerbils,rabbits,fish or small,non-poisonous
reptiles, or non-poisonous snakes. Wild animal includes any hybrid of an animal listed in this
definition,unless certified for medical,biological,herpetological or other scientific research or
study. This definition shall apply regardless of state or duration of captivity.
SECTION 3: AMENDMENT TO WYLIE ORDINANCE NO. 87-57, SECTION 14(d)
(IMPOUNDMENT OF ANIMALS RUNNING AT LARGE). Wylie Ordinance No. 87-57, Section
14(d)(Impoundment of Animals Running at Large), is hereby amended to read as follows:
"(d) All impounded animals not redeemed within seven (7) days may be
destroyed in a humane manner by a licensed veterinarian, or under his supervision;
offer for adoption by the animal control officer for a period of one week; or
transferred to an area humane society or approved animal shelter. The owner of any
destroyed animal is responsible for and must pay for all veterinarian, medical and
related charges prescribed in the fee schedule in appendix C to this Code within seven
(7) days of being notified of the amount of such charges."
SECTION 4: AMENDMENT TO WYLIE ORDINANCE NO. 87-57, SECTION 13(c)
(BITES BY ANIMALS). Wylie Ordinance No. 87-57, Section 13(c)(Bites By Animals),is hereby
amended to read as follows:
"(c) The owner of the animal shall surrender the animal to the animal
control officer immediately,or otherwise arrange for the animal control officer to pick
up and retain such animal,in a separate kennel at the animal shelter for the period of
the quarantine. After the animal has been released from quarantine,the owner may
redeem the animal from the animal shelter by payment of the fees for quarantine,
impoundment and medical and veterinary expenses prescribed in the fee schedule in
Appendix C of the Code. If the owner does not redeem the animal from the animal
shelter,the owner is still responsible for and must pay for all veterinarian,medical and
related charges within seven (7) days of being notified of the amount of such
charges."
SECTION 5: Penalty Provision. Any person,firm, corporation or business entity violating
this Ordinance shall be deemed guilty of a misdemeanor,and upon conviction thereof shall be fined a
sum not exceeding TWO THOUSAND AND NO/100 DOLLARS ($2,000.00). Each continuing
dais violation under this Ordinance shall constitute a separate offense. The penal provisions imposed
under this Ordinance shall not preclude Wylie from filing suit to enjoin the violation. Wylie retains all
legal rights and remedies available to it pursuant to local, state and federal law.
SECTION 6: Savings/Repealing Clause. Wylie Ordinance Nos. 87-57 shall remain in full
force and effect, save and except as amended by this or any other ordinance. All provisions of any
ANIMAL CONTROL ORDINANCE(AMENDING ORDINANCE NO. 87-57)B Page 3
ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict;but
such repeal shall not abate any pending prosecution for violation of the repealed ordinance,nor shall
the repeal prevent a prosecution from being commenced for any violation if occurring prior to the
repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and
effect.
SECTION 7: Severability. Should any section, subsection,sentence,clause or phrase ofthis
Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction,it is expressly
provided that any and all remaining portions of this Ordinance shall remain in full force and effect.
Wylie hereby declares that it would have passed this Ordinance,and each section, subsection,clause
or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences,
clauses and phrases be declared unconstitutional or invalid.
SECTION 8: Effective Date. This Ordinance shall become effective from and after its
adoption and publication as required by law.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS on this day of 2002.
JOHN MONDY, Mayor
ATTESTED TO AM)
CORRECTLY RECORDED BY:
Barbara Salinas, City Secretary
Date(s)of Publication:
ANIMAL CONTROL ORDINANCE(AMENDING ORDINANCE NO. 87-57)B Page 4
WYLIE CITY COUNCIL
AGENDA ITEM NO. ,3,,
September 24, 2002
Issue
Consider and act upon approval of a Resolution authorizing the City Manager to enter into the "Greater
Dallas-Fort Worth Regional Law Enforcement Mutual Aid Task Force Agreement.
Background
The North Texas Regional Police Chiefs Association have recognized the necessity and desirability of
entering into a "Regional Law Enforcement Inter-local Assistance Agreement." In furtherance of this
objective an agreement has been drafted and coordinated with all interested regional police agencies. The
proposed agreement establishes a regional mutual aid law enforcement assistance to cooperate in the
delivery of public safety services to protect health,life and property. Statutory authority for such a mutual
aid agreement is contained in Chapter 791 of the Texas Government Code and Section 362.002 of the
Texas Local Government Code.
This proposed mutual aid agreement allows for a member law enforcement agency to call upon other
member agency(s) for assistance of additional personnel and equipment . The providing of assistance is
discretionary with the requested member, and is subject to the availability of resources. No contractual
obligation to provide resources is created, and all obligations under this agreement are voluntary.
When law enforcement personnel and equipment are furnished pursuant to this agreement, they will be
under the command of the requesting member's chief law enforcement officer or his designee. The
responding member has, however,(in his sole discretion) the option to withdraw personnel and /or
equipment and discontinue participation in any activity initiated pursuant to this agreement.
As required by Chapter 791,the Inter-local Cooperation Contracts,the proposed agreement states that law
enforcement officers assigned, designated,or ordered to perform law enforcement duties pursuant thereto
shall receive the same wage, salary, pension, and all other compensation and all other rights for such
services, including injury or death benefits, and workers compensation benefits, the same as though the
service has been rendered within the limits of the member where the employee is regularly employed.In this
connection, the agreement further provides that all wage and disability payment, include worker's
compensation benefits, pension payments, damage to equipment and clothing, medical expenses and
expenses of travel, food and lodging shall be paid by the member which regularly employs such persons.
Provisions of the agreement also state that in the event of a law suit,the officer concerned will be defended
by the jurisdiction where he/she is regularly employed. Each party to the agreement expressly waives all
claims against other member agencies.
This agreement becomes effective between the parties immediately upon execution. Any party to the
agreement may terminate participation in the agreement by giving(30)thirty days written notice.
Financial Considerations
None
Other Considerations
Article 2, Section 1 (c)of the Home Rule Charter allows the Council to cooperate with the government of
any County for any lawful purpose for the advancement of the interests of its inhabitants.
Board/Commission Recommendations
None
Staff Recommendations
Staff recommends Authorizing the City Manager to enter into the Mutual Aid agreement.The City of Wylie
Police Department has responded to other jurisdictions with manpower and equipment,and occasionally we
have received like responses from other jurisdictions.This agreement clarifies the responsibilities and points
out the legal issues involved.
Attachments
Copy of Resolution authorizing the City Manager to enter into the agreement.
Copy of the agreement.
epared by Revie d by Finance Ci an r Approval
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE TO FORM A
REGIONAL LAW ENFORCEMENT MUTUAL AID TASK FORCE AGREEMENT WITH
OTHER AREA LAW ENFORCEMENT AGENCIES FOR THE PURPOSE OF PROVIDING
AND RECEIVING LAW ENFORCEMENT ASSISTANCE;
WHEREAS, the City of Wylie desires to contribute to the protection and safety of citizens
in this City and in surrounding communities;and
WHEREAS, the legislature has authorized the formation of interlocal assistance
agreements between and among the cities and their law enforcement agencies;and
WHEREAS, the City of Wylie wishes to participate in an interlocal assistance agreement
among local law enforcement agencies in the greater Dallas-Ft Worth North Texas area for
the purpose or providing and receiving law enforcement assistance;and
WHEREAS, the City of Wylie and other local law enforcement agencies have tentatively
approved an Interlocal assistance agreement to be known as the Greater Dallas- Fort
Worth Regional Law Enforcement Mutual Aid Task Force Agreement;and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WYLIE:
SECTION 1. That the City Manager is hereby authorized to execute the attached"Greater
Dallas-Fort Worth Regional Law Enforcement Mutual Aid Task Force Agreement"
SECTION 2. That this resolution shall take effect immediately from and after its passage in
accordance with the provisions of the Charter of the City of Wylie,and it is accordingly so
resolved.
APPROVED on this the day of ,2002.
ATTEST: APPROVED:
City Secretary Mayor
City of Wylie City of Wylie
GREATER DALLAS-FORT WORTH REGIONAL
LAW ENFORCEMENT MUTUAL AID TASK FORCE
AGREEMENT
1. Preamble:
WHEREAS, the governmental entities which are parties to this agreement desire
to form a law enforcement mutual aid task force to cooperate in the investigation of
criminal activity; enforcement of the laws of this State; and, to protect health, life and
property from riot, disaster, threat of concealed explosives, unlawful assembly
characterized by force and violence or threatened violence by groups of three or more
persons; and,
WHEREAS, Chapter 791, et. seq. of the Texas Government Code authorizes local
government entities to enter into Interlocal Contracts and Section 362.002 of the Texas
Local Government Code specifically authorizes Mutual Aid Task Force agreements such
as this agreement;
NOW, THEREFORE, it is mutually agreed by the parties hereto to enter into this
Agreement upon the following terms:
2. Definitions:
The following terms shall have the following meanings when used in this
Agreement:
"Law Enforcement Officer" means any commissioned peace
officer as defined under the Texas Code of Criminal Procedure.
"Member" means any local government entity, including the
Dallas-Fort Worth International Airport Board (hereinafter "DFW
Airport"), which is a party to this Agreement.
"Chief Law Enforcement Officer" means the Chief of Police or the
Director of Public Safety of a municipality or DFW Airport, or the Sheriff
of a County.
"Requesting Member" means a member who requests law
enforcement assistance from another member under this Agreement.
"Responding member" means a member to whom a request for
assistance is directed by a requesting member under this Agreement.
3. Name:
The members hereby form a mutual aid law enforcement task force to be named
the Greater Dallas-Forth Worth Regional Law Enforcement Mutual Aid Task Force
(hereinafter"Task Force").
4. Purpose:
The purpose of the Task Force is to cooperate in the investigation of criminal
activity; enforcement of the laws of this State; and, to protect health, life and property
from riot, disaster, threat of concealed explosives, unlawful assembly characterized by
force, and violence or threatened violence by groups of three or more persons.
5. Request for Assistance:
Any request for assistance under this Agreement shall, when reasonably possible,
include a statement of the amount and type of equipment and number of law enforcement
personnel requested, and shall specify the location to which the equipment and personnel
are to be dispatched. However, the amount and type of equipment and number of
personnel actually furnished by a responding member shall be determined by the
responding member's chief law enforcement officer or his designee.
6. Response to Request for Assistance:
Responding members will assign law enforcement officers to perform law
enforcement duties outside the responding member's territorial limits, but within the
territorial limits of a requesting member, subject to the responding member's
determination of availability of personnel and discretion when:
A. Such assignment is requested by the chief law enforcement officer or his
designee, of a requesting member, and
B. The chief law enforcement officer, or his designee, of the responding
member has determined, in his sole discretion, that the assignment is necessary to fulfill
the purposes of this agreement in providing police protection and services within the
territorial limits of the requesting member.
7. Operational control:
All personnel of the responding member shall report to the requesting member's
officer in tactical control at the location to which said law enforcement personnel have
been dispatched and shall be under the operational command of the requesting member's
chief law enforcement officer or his designee.
8. Release:
Law Enforcement Officers of the responding member will be released by the
requesting member when their services are no longer necessary.
9. Withdrawal from Response:
The chief law enforcement officer, or his designee, of the responding member, in
his sole discretion, may at any time withdraw the personnel and equipment of the
responding member or discontinue participation in any activity initiated pursuant to this
Agreement.
10. Qualifications of Office and Oath:
While any law enforcement officer regularly employed by a responding member
is in the service of the requesting member under this Agreement, said law enforcement
officer shall be deemed to be a peace officer of the requesting member and be under the
command of the requesting member's chief law enforcement officer with all powers of a
law enforcement officer of the requesting member as if said law enforcement officer were
within the territorial limits of the governmental entity where said officer is regularly
employed. The qualifications of office of said law enforcement officers where regularly
employed shall constitute his or her qualifications for office within the territorial limits of
the requesting member and no additional oath,bond or compensation shall be required.
11. Right to Reimbursement:
Each party to this agreement, when providing services of personnel as a
responding party, expressly waives the right to receive reimbursement for services
performed or equipment utilized under this Agreement even though a request for such
reimbursement may be made pursuant to Chapter 362 of the Texas Local Government
Code.
12. Officer Benefits:
Any law enforcement officer or other police personnel assigned to the assistance
of another member pursuant to this Agreement shall receive the same wage, salary,
pension, and all other compensation in all other rights of employment in providing such
service, including injury, death benefits and worker compensation benefits and well as
any available insurance, indemnity or litigation defense benefits Said benefits shall be
the same as though the law enforcement officer or personnel in question had been
rendering service within the territorial limits of the member where he or she is regularly
employed. All wage and disability payments, including worker compensation benefits,
pension payments, damage to equipment, medical expenses, travel, food and lodging
shall be paid by the member which regularly employs the officer providing service
pursuant to this Agreement in the same manner as though such service had been rendered
within the limits of the member where such person or law enforcement officer is
regularly employed. Each responding member shall remain responsible for the payment
of salary and benefits as well as for legal defense of the responding member's officers or
personnel when acting pursuant to this agreement.
13. Liability:
In the event that any person performing law enforcement services pursuant to this
Agreement shall be named or cited as a party to any civil claim or lawsuit arising from
the performance of their services, said person shall be entitled to the same benefits from
their regular employer as they would be entitled to receive if such similar action or claim
had arisen out of the performance of their duties as a member of the department where
they are regularly employed and within the jurisdiction of the member by whom they are
regularly employed. The Members hereby agree and covenant that each Member shall
remain solely responsible for the legal defense and any legal liability due to the actions of
an officer or other personnel regularly employed by said member. Nothing herein shall
be construed to expand or enlarge the legal liability of a Member for any alleged acts or
omissions of any employee beyond that which might exist in the absence of this
Agreement. Nothing herein shall be construed as a waiver of any legal defense of any
nature whatsoever to any claim against a Member or against an officer or employee of a
Member.
14. Waiver of Claims:
Each party of this Agreement to its members respectively waives all claims
against each and every other party or member for compensation from any loss, damage,
personal injury or death occurring as a consequence of the performance of this
Agreement even though such alleged damage may have or is alleged to have occurred as
a result of alleged negligent or other tortious conduct of any party to this Agreement.
15. Immunity Not Waived:
The parties hereto expressly do not waive any immunity or other defenses to any
civil claims with the execution of this agreement. It is understood and agreed that, by
executing this Agreement, no party or member hereto waives, nor shall be deemed hereby
to waive, any immunity or defense which otherwise is available in claims arising which
are signs of or connection with, any activity conducted pursuant to this Agreement.
16. Venue:
Each party to this Agreement agrees that if legal action is brought under this
Agreement, the venue shall lie in the county in which the defendant member is located,
and if located in more than one county, then it shall lie in the county in which the
principal offices of said defendant member are located. The Parties hereby stipulate and
agree that this Agreement is to be construed and applied under Texas law.
17. Arrest Authority Outside Primary Jurisdiction:
It is expressly agreed and understood that a law enforcement officer employed by
a responding party who performs activities pursuant to this Agreement may make arrests
outside the jurisdiction in which said officer is regularly employed, but within the area
covered by this Agreement; provided, however, that the law enforcement agency of the
requesting jurisdiction and/or the jurisdiction in which the arrest is made shall be notified
of such arrest without unreasonable delay. The police officers employed by the parties to
this Agreement shall have such investigative or other law enforcement authority in the
jurisdictional area encompassed by the members, collectively, to this Agreement as is
reasonable and proper to accomplish the purposes for which a request for mutual aid
assistance is made pursuant to this Agreement.
18. Clauses Severable:
The provisions of this Agreement are to be deemed severable such that should any
one or more of the provisions or terms contained in this Agreement be, for any reason,
held to be invalid, illegal, void, or unenforceable; such holding shall not affect the
validity of any other provision or term herein and the agreement shall be construed as if
such invalid, unenforceable, illegal or void provision or term did not exist.
19. Termination:
Any Party to this Agreement may terminate it's participation or rights and
obligations as a Party by providing thirty(30) days written notice via certified mail to the
Chief Law Enforcement Officer of every other Party. Should one Party terminate its
participation in, or withdraw from, this Agreement, such termination or withdrawal shall
have no effect upon the rights and obligations of the remaining Parties under this
Agreement.
20. Effective Date:
This Agreement becomes effective immediately upon the execution by the Parties
hereto and continues to remain in effective until terminated pursuant to Section 19 above.
21. Modification:
This Agreement may be amended or modified by the mutual agreement of the
parties hereto in writing to be attached to and incorporated into this Agreement. This
instrument contains the complete agreement of the parties hereto and any oral
modifications, or written amendments not incorporated to the Agreement, shall be of no
force or effect to alter any term or condition herein.
22. Execution of Agreement:
This Agreement shall be executed by the duly authorized official of the respective
Parties pursuant to approving resolutions of the governing body of the respective units of
local government. Copies of said approving resolutions shall be attached hereto and made
a part hereof This agreement may be executed in multiple original copies by the
respective Parties.
23. Compliance with Law:
The Parties shall observe and comply with all applicable Federal, State and Local
laws, rules, ordinances and regulations that affect the provision of services provided
herein.
24. Interjurisdictional Pursuit Agreement:
The Parties hereto expressly understand and agree that this agreement does not in
any way modify or restrict the procedures or guidelines which are followed by any law
enforcement agency or Member pursuant to the Inter-Jurisdictional Pursuit Policy
Agreement to which some Members or their law enforcement agencies, may be parties.
To the extent any provision of, or action taken pursuant to, the Inter-Jurisdictional
Pursuit Policy Agreement may be construed to conflict with the terms and conditions of
this Agreement, the terms of the Inter-Jurisdictional Pursuit Policy Agreement shall
control as to those particular actions.
25. Coordinating Agency.
The Parties hereby agree that the City of Highland Park Department of Public
Safety shall served as the Coordinating Agency of the Agreement. The Chief Law
Enforcement Officer, or his designee, of said Coordinating Agency shall maintain on file
executed originals of this Agreement, related resolutions or orders of the Parties and other
records pertaining to this Agreement. Said Coordinating Agency shall notify all
members of the identity of the current Parties hereto every twelve(12)months.
Executed and entered into on this day of , 2002 by:
Member Agency:
Authorized official:
Printed name:
Title:
Date of governing body approving resolution:
VVYLIE CITY COUNCIL
AGENDA ITEM NO. 3
September 24, 2002
Issue
Consider and act upon approval of an Ordinance disannexing a 2.0-acre tract of land within the
Francisco de la Pina Survey,being generally located east of Paul Wilson Road and south of Skyview
Drive.
Background
Michael and Michelle Blocker, the sole current owners have requested that the City disannex the
subject property, citing the failure of the City to provide sewer services and adequate fire and police
support to the property. The applicants have also expressed the opinion that their plan for
development and use of the property better conforms to the code requirements of Collin County than
with those of the City of Wylie. The property is undeveloped.
The subject tract was originally annexed into the City of Wylie as part of a 46.5 acre parcel in
September of 1984, at the voluntary request of the property owner at that time. The City of Wylie is
obligated to provide normal municipal services, including public sewer as well as police and fire
response, to all newly annexed areas such as the subject property within a reasonable time. The
specifics of when and how such public services are to be provided to annexed areas are to be
incorporated into an Annexation Service Plan,which serves as a legal contract. However,no such
Plan was apparently completed and adopted for the 1984 annexation of the subject property. Water is
provided to the tract by the Wylie Northeast Water Supply Corporation District rather than the City.
In April of 1994,the City disannexed approximately 14 acres of that 46.5 acre tract at the request of
several new property owners, who cited the City's failure to provide municipal sewer services in a
timely manner. That land disannexed in 1994 abuts to the north and south the property now owned
by the Blockers and the subject of the current disannexation. Properties to the west across Paul
Wilson Road are also within unincorporated Collin County. The subject property is surrounded on
three sides by unincorporated Collin County,and these neighboring properties are occupied by sparse
rural residential or agri-business uses.
Section 43.141 of the Texas Local Government Code states that"a majority of the qualified voters of
an annexed area may petition the governing body of the municipality to disannex the area if the
municipality fails or refuses to provide services to the area... Ifthe governing body fails or refuses to
disannex the area within 60 days after the date of the petition, any one of the signers of the petition
may bring a cause of action in a district court of the county in which the area is located to request that
the area be disannexed. The District court shall enter an order disannexing the area ifthe court finds
that a valid petition was filed with the municipality and that the municipality failed to perform its
obligations in accordance with the annexation service plan... If the area is disannexed,it may not be
annexed again within 10 years after the date of disannexation."
Financial Considerations
The City will lose the property taxes on the 2 acre undeveloped tract if it is disannexed.
Other Considerations
1. The petition complies with all requirements of Section 43.141 of the Texas Local Government
Code for legally petitioning for disannexation. The applicants represent 100 percent of the
property owners and qualified voters within the affected area, and have published the petition
within the Wylie News as well as on the subject property. The applicant contends that he receives
no City benefits for the City taxes levied to the property, and can better develop the vacant
property to Collin County standards.
2. The subject property is surrounded on three sides by unincorporated Collin County. Paul Wilson
Road is a rural asphalt roadway. U.S. Corps of Engineers property to the north and North Texas
Municipal Water District treatment and storage plant to the southeast limit potential expansion
and further development of the existing rural settlement. Most of these neighboring properties
are now sparsely developed in rural residential uses,utili7ng onsite septic systems with no public
sewer services. The closest City sewer services are located at least 1,500 feet to the southwest.
An Annexation Service Plan,now required by State Law,was apparently not formulated when the
annexation occurred. the City has no current plans to provide sewer services and urban streets to
this area. To provide such services to the subject tract will be an expense to the City and existing
neighboring home owners and will disrupt the area's rural character.
3. In 1994,the City disannexed 14 acres of land which is contiguous to the subject tract and which
had been part of the tract when annexed at the same tine. The stated reason for that earlier
disannexation of abutting properties was similar to the stated reasons for the current request,that
the City could not provide sewer and other public services as anticipated by the annexation.
However, in the absence of an adopted service plan stipulating a date that such services were to
be provided,the earlier voluntary annexation cannot be construed as a representation by the City
that or when sewer services would be available. Furthermore,the subject property is currently
provided"like services"and no less services than are provided to other undeveloped properties
which were brought into the City as part of the 1984 annexation, some of which remain within the
City and others which have been disannexed.
4. Both the seller and current owner of the subject property should have known that the property
was located within the City of Wylie and subject to Wylie's land use and development regulations
as well as the absence of sewer services. Section 16.051 of the Texas Civil Practice and
Remedies Code states that"every action for which there is no express limitations period... must
be brought not later than four years after the day the cause of action accrues." As there is no
expressed limitation for claims against annexation actions,the statute of limitations for allowing
redress ofthe 1984 annexation,including the subject tract,expired in 1988 regardless of changes
in ownership.
5. The Comprehensive Plan recommends that the subject property be developed as Country
Residential uses, permitting single-family dwellings on lots of one acre and larger. This
recommendation is consistent with the character of existing development surrounding the subject
tract. The County cannot control uses of land,and only the City Zoning Ordinance can regulate
uses and development regulations to assure that whatever is constructed on the vacant subject
tract is compatible with the existing development.
6. If disannexed,the subject tract cannot be again annexed for 10 years, or at least until late 2012.
The properties disannexed in 1994 will be eligible for annexation again in 2004, should the
existing residences desire City sewer services. This varied time constraint and the central location
of the subject tract, surrounded by existing residential development, hinders the potential for
coordinated annexation as well as provision of sewer services of this entire neighborhood as a
single unit even if they should desire such.
7. In October of 2001,a request was made for disannexation of an 80 acre tract along Sachse Road
for similar reasons as the request currently under consideration. The Council denied that request
and the applicant sued. The courts have thus far upheld the Council's denial,based on arguments
that the statute of limitation for redress ofthe annexation had expired and that the property owner
should have know that public sewer services could not likely be provided in a timely manner.
Board/Commission Recommendations
NA
Staff Recommendations
Council direction is needed.
The Council's 1994 approval of disannexation of 14 acres adjacent to the subject tract could establish
precedent favoring disannexation of similar properties to which City services cannot be provided
within a reasonable time. However the Council's 2002 refusal to disannex the 80 acre tract under
similar circumstances could establish the precedent opposing disannexation, especially when no
specific provision of municipal services has been contracted by a service plan. State Law now
requires that the City adopt an Annexation Service Plan for each annexation,which clearly and legally
established a time period in which municipal services must be provided,eliminating the possibility of
future annexations without public services. Furthermore,the current level of City services is common
to that provided other incorporated properties within the immediate vicinity of the subject tract.
The vicinity surrounding the subject tract is already developed in properties of similar 2-acre si7P and
rural character more comparable to unincorporated Collin County than urbanizing City of Wylie and
the level of services currently provided by the County are apparently sufficient for existing property
owners and uses. None of the neighboring owners have expressed desire to be annexed and the City
cannot annex the properties involuntarily. It is possible that the area abutting the subject tract could
remain unincorporated with rural utilities for some time.
Attachments
Location Map
Petition Letter
Ordinance
Plat and Legal Description
Prepa red b , Revi ed by Financ City M , r Approval eh
Subject
Property
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LOCATION MAP
Proposed Disannexation
September 3, 2002
Ms. Barbara Salinas
City Secretary
City of Wylie
2000 Highway 78 North
Wylie, Texas 75098
Subject: Disannexation of 2.00 acres out of Francisco De La Pina Survey #688
To Whom It May Concern:
I am submitting this letter as a petition to the disannexation property identified on the
attached survey from the City of Wylie and return it to the designation of Collin County
property. Said property being located east of Paul Wilson Road and South of Skyview
Drive, being a certain 2.00 acre tract of land out of the Francisco de la Pina Survey,
Abstract No. 688, and the certain tract of land recorded in Volume 2271, Page 486 of the
Deed Records of Collin County, Texas. My wife and I are the sole owners and registered
voters within the subject area. All requirements of Section 43.141 of the Texas Local
Government Code have been complied with, specifically including publication of notice
of this petition within the Wylie News and on the subject property. The basis for this
request is the lack of sewer services and the lack of adequate fire and police support for
this property. The precedent is the surrounding properties have already been reverted
back to Collin County property for the same reasons.
I am including a recent survey of the property. Please let me know if you need any
further information to process this request.
(r.e ttelitt?-114 a
t((“,5{-Liit,
Thank you,
Michael Trent Blocker & Michelle Lea Blocker
1719 Mapleleaf Falls Dr.
Allen, TX 75002
214-876-9805
Precinct No. 27 (095-01)
Voter Registration No. 616464
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, DISANNEXING
LOT 201 OF THE FRANCISCO DE LA PINA SURVEY, ABSTRACT NO. 688,
COLLIN COUNTY, TEXAS, BEING A CERTAIN 2.0 ACRE TRACT
GENERALLY LOCATED EAST OF PAUL WILSON ROAD AND SOUTH OF
SKYVIEW DRIVE; AND CONTRACTING THE CORPORATE BOUNDARIES
OF THE CITY OF WYLIE ACCORDINGLY; REPEALING ALL
CONFLICTING ORDINANCES; CONTAINING A SEVERABILITY CLAUSE;
AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, upon the request of the then owner of the subject property the City
annexed said property on or about the 25th day of September, 1984, by virtue of
Ordinance No 84-58,which was duly passed and adopted on said date; and,
WHEREAS, the subject property has remained in the city from and after its
annexation thereto, but the City has failed to provide municipal sewer services to the
subject property in the nineteen years following its annexation and such property
continues to be without such service as of this date; and,
WHEREAS, the current owners of the subject property have filed a valid petition
with the City Secretary requesting disannexation of the subject property from the City on
the basis of the City's having failed to provide the services as aforesaid; and,
WHEREAS, all requisites relative to consideration and granting of such request
appear to have been complied with by the owners, specifically including publication of
notice of such petition on the subject property and in the official City Newspaper, as
required by Section 43.141 of the Texas Local Government Code;and,
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF
THE CITY OF WYLIE, TEXAS, as follows:
SECTION 1
That the subject property as described and designated on the detailed description
and plat map attached hereto as Exhibit A, and fully incorporated herein by reference,
should be and the same hereby is disannexed from the corporate limits of the City of
Wylie, and the City's boundaries are contracted accordingly.
SECTION II
Should any paragraph, sentence, sub-division, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal or invalid the same shall not
affect the validity of this ordinance as a whole or any part or provision thereof other than
the part or parts as declared to be invalid, illegal, or unconstitutional.
SECTION III
This ordinance shall be in full force and effect from and after its adoption by the
City Council and publication of its caption as the law and the City Charter provide in
such cases.
SECTION IV
That all other ordinances and code provisions in conflict herewith are hereby
repealed to the extent of any such conflict or consistency, the above referenced Ordinance
No. 84-58 and the territory annexed thereby shall be unaffected by the provisions hereof
except as to the subject property herein described.
DULY PASSED AND APPROVED by the City Council of the City of Wylie,
Texas, this day of 2002.
By
John Mondy
Mayor
ATTEST:
Barbara Salinas
City Secretary
Approved:
City Attorney
WYLIE CITY COUNCIL
AGENDA ITEM NO. L.,
September 24, 2002
Issue
Consider and act upon approval of an Ordinance authorizing the issuance of$1,150,000 Waterworks
and Sewer System Revenue Bonds, Series 2002, dated September 24, 2002, and all other matters related
thereto.
Background
The City is issuing the last of the $4,250,000 water and sewer system revenue bonds authorized by the
citizens in the May 8, 1999, bond election. Proceeds from the sale of the Bonds will be used to finance
the costs of making improvements and extensions to the System, to fund a portion of the reserve fund,
and to pay costs associated with the issuance of the Bonds. The bids for the Bonds will be publicly
opened and read at the offices of the City's financial advisor at 11:00 am, CDT, on Tuesday, September
24, 2002. The bonds are being sold in one block on an"All or None" basis. The sale of the Bonds will
be awarded to the bidder making a bid that conforms to the Bidding Instructions and which produces
the lowest True Interest Cost rate to the City. The bidders on municipal bonds are typically financial
institutions or groups that intend to retail the bonds to institutions or individual investors. The City's
Financial Advisors, First Southwest Company, will present the results of the bidding at the Council
meeting on September 24, 2002.
Financial Considerations
The proposed bond ordinance states that the revenues of the Water and Sewer System (System)will be
used first to pay the operating and maintenance costs of the System and then to pay the debt on the
revenue bonds. The bond ordinance also establishes a Reserve Fund that is equal to one year's average
debt service. The average annual debt service payment over the twenty-year amortization of the
$1,150,000 in new bonds is estimated to be $89,550.
Other Considerations
The City Council can take action to award the Bonds or reject all bids at this meeting. If the bonds are
awarded, the Council will need to adopt an ordinance authorizing the Bonds and approving the Official
Statement (the "Ordinance"). A Good Faith Deposit of$23,000 will be required from the successful
bidder.
Staff Recommendation
The Staff recommends that the City Council adopt the proposed ordinance authorizing the issuance of
"$1,150,000 Waterworks and Sewer System Revenue Bonds, Series 2002" per the recommendation of
the First Southwest Company.
Attachments
Ordinance
Paying Agent/Registrar Agreement
Prepared by Re ed by Finance City 1V anag proval
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of September 24, 2002 (this "Agreement"), by and
between the City of Wylie, Texas (the "Issuer"), and JPMorgan Chase Bank, a New York
banking corporation organized and existing under the laws of the State of New York and
authorized to do business in the State of Texas,
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the execution and delivery
of its"City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds, Series 2002" (the
"Securities"), dated September 15, 2002, such Securities scheduled to be delivered to the initial
purchasers thereof on or about October 29, 2002; and
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 said Securities
and with respect to the registration, transfer and exchange thereof by the registered owners
thereof; and
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 ONE
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, and, 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 "Bond Resolution" (hereinafter defined). The Issuer
hereby appoints the Bank as Registrar with respect to the Securities and, 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"Bond Resolution".
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
Annex 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.
WYLI E REV 2002_PA_R AGMT.DOC EXHIBIT A
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 TWO
DEFINITIONS
Section 2.01 Definitions. For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
"Acceleration Date" on any Security means the date on and after which
the principal or any or all installments of interest, or both, are due and payable on
any Security which has become accelerated pursuant to the terms of the
Security.
"Bank Office" means the designated office of the Bank in Dallas,Texas at
the address shown in Section 3.01 hereof. The Bank will notify the Issuer in
writing of any change in location of the Bank Office.
"Bond Resolution" means the resolution, order, or ordinance of the
governing body of the Issuer pursuant to which the Securities are issued,
certified by the Secretary or any other officer of the Issuer and delivered to the
Bank.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30th.
"Holder" and "Security Holder" each means the Person in whose name a
Security is registered in the Security Register.
"Issuer Request" and "Issuer Order" means a written request or order
signed in the name of the Issuer by the Mayor, City Secretary, City Manager,
Assistant City Manager, or Director of Finance, any one or more of said officials,
and delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized
to be closed.
"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
Resolution).
WYLIE REV 2002_PA R AGMT.DOC -2- EXHIBIT A
"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
Bond Resolution.
"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 transfers of Securities.
"Stated Maturity" means the date specified in the Bond Resolution 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.
ARTICLE THREE
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 following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan
Street, 9th Floor, Dallas, Texas 75201, Attention: Operations.
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
making payment thereof to the Holders of the Securities(or their Predecessor Securities)on the
Record Date. All payments of principal and/or interest on the Securities to the registered
owners shall be accomplished (1) by the issuance of checks, payable to the registered owners,
drawn on the paying agent account provided in Section 5.05 hereof, sent by United States mail,
first class, postage prepaid, to the address appearing on the Security Register or (2) 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 at the dates specified in the Bond Resolution.
WYLIE REV 2002_PA_R AGMT.DOC -3- EXHIBIT A
ARTICLE FOUR
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 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 Bank may prescribe. All transfers, exchanges and replacement of
Securities shall be noted in the Security Register.
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(3) 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 governments 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.
WYLIE REV 2002_PA_R AGMT.DOC -4- EXHIBIT A
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. The Bank will, at such reasonable
intervals as it determines, surrender to the Issuer, Securities in lieu of which or in exchange for
which other Securities have been issued, or which have been paid.
Section 4.06 Mutilated, Destroyed, Lost or Stolen Securities. The Issuer hereby
instructs the Bank, subject to the provisions of Section 30 of the Bond Resolution,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 overissuance.
In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank 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 upon the approval of the Issuer and 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.
ARTICLE FIVE
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.
(a) 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.
(b) 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
WYLIE REV 10.12_PA_R AGMT.DOC -5- EXHIBIT A
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.
(c) 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.
(d) 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.
(e) 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 Moneys Held by Bank- Paying Agent Account/Collateralization. Money
deposited by the Issuer with the Bank of the principal (or Redemption Price, if applicable) of or
interest on any Securities shall be segregated from other funds of the Bank and the Issuer and
shall be held in trust for the benefit of the Holders of such Securities.
All money deposited with the Bank hereunder shall be secured in the manner and to the
fullest extent required by law for the security of funds of the Issuer.
Amounts held by the Bank which represent principal of and interest on the Securities
remaining unclaimed by the owner after the expiration of three years from the date such
amounts have become due and payable shall be reported and disposed of by the Bank in
accordance with the provisions of Texas law including, to the extent applicable, Title 6 of the
Texas Property Code, as amended. The Bank shall have no liability by virtue of actions taken in
compliance with this provision.
The Bank is not obligated to pay interest on any money received by it hereunder.
WYLI E REV 2002_PA_R AGMT.DOC -6- EXHIBIT A
This Agreement relates solely to money deposited for the purposes described herein,
and the parties agree that the Bank may serve as depository for other funds of the Issuer, act as
trustee under indentures authorizing other bond transactions of the Issuer, or act in any other
capacity not in conflict with its duties hereunder.
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 DT 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", 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 SIX
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 page 9.
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.
WYLIE REV 2002_PA_R AGMT.DOC -7- EXHIBIT A
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 Bond Resolution 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 Bond Resolution, the
Bond Resolution 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 sixty (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 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.
WYLIE REV 2002_PA_R AGMT.DOC -8- EXHIBIT A
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
JPMORGAN CHASE BANK
BY:
Title:
[SEAL] Address: 2001 Bryan Street, 10th Floor
Dallas, Texas 75201
Attest:
Title:
CITY OF WYLIE, TEXAS
BY:
Mayor
Address: 2000 Highway 78 North
Wylie, Texas 75098
(CITY SEAL)
Attest:
City Secretary
WYLIE REV 2002_PA_R AGMT.DOC -9- EXHIBIT A
ORDINANCE NO.
AN ORDINANCE authorizing the issuance of"CITY OF WYLIE, TEXAS,
WATERWORKS AND SEWER SYSTEM REVENUE BONDS,
SERIES 2002"; pledging the net revenues of the City's Waterworks and
Sewer System to the payment of the principal of and interest on said
Bonds; enacting provisions incident and related to the issuance, payment,
security and delivery of said bonds, including the approval and execution
of a Paying Agent/Registrar Agreement and the approval and distribution
of an Official Statement pertaining thereto; and providing an effective
date.
WHEREAS, the City Council of the City of Wylie,Texas hereby finds and determines the
remaining principal amount of revenue bonds ($1,150,000) approved and authorized to be
issued at an election held May 1, 1999 for improvements and extensions to the City's combined
Waterworks and Sewer System should be issued and sold at this time;
WHEREAS, the City Council further finds and determines that such revenue bonds can
and should be issued as "Additional Parity Obligations" (hereinafter defined) on a parity with
certain currently outstanding revenue bonds(hereinafter identified and defined as the Previously
Issued Bonds) that are payable from and equally and ratably secured by a first lien on and
pledge of the Net Revenues of the City's Waterworks and Sewer System (the"System") in that
(i) the Director of Finance of the City will execute a certificate stating (a)that, to the best of his
knowledge and belief,the City is not now in default as to any covenant, obligation or agreement
contained in any ordinance or other proceeding relating to any obligations of the City payable
from and secured by a lien on and pledge of the Net Revenues of the System that would
materially affect the security or payment of such obligations and (b) payments into all special
funds or accounts created and established for the payment and security of all outstanding
obligations payable from and secured by a lien on and pledge of the Net Revenues of the
System have been made and that the amounts on deposit in such special funds or accounts are
the amounts then required to be on deposit therein; (ii) the Additional Parity Bonds herein
authorized shall mature or be payable as to principal on February 15 in each year, and (iii) the
City can secured a certificate or opinion of a certified public accountant to the effect that,
according to the books and records of the City, the Net Earnings, for the preceding Fiscal Year
or for 12 consecutive months out of the 15 months immediately preceding the month this
ordinance is adopted, are at least equal to 1.25 times the "Average Annual Debt Service" (as
herein defined) for all outstanding "Previously Issued Bonds" and the bonds herein authorized;
now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS:
SECTION 1: Authorization-Designation-Principal Amount - Purpose. Revenue bonds
of the City shall be and are hereby authorized to be issued in the aggregate principal amount of
$1,150,000 to be designated and bear the title"CITY OF WYLIE,TEXAS,WATERWORKS AND
SEWER SYSTEM REVENUE BONDS, SERIES 2002" (hereinafter referred to as the "Bonds"),
for improvements and extensions to the City's combined Waterworks and Sewer System, in
conformity with the Constitution and laws of the State of Texas, including V.T.C.A., Government
Code, Section 1502.051(c).
SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Date. The Bonds shall be issued as fully registered obligations, without coupons,
WYLIE REV 2002_ORDINANCE(3).DOC -2-
shall be dated September 15, 2002 (the"Bond Date")and, other than the single fully registered
Initial Bond referenced in Section 8 hereof, shall be in denominations of$5,000 or any integral
multiple thereof (within a Stated Maturity), shall be numbered consecutively from One (1)
upward and shall become due and payable on February 15 in each of the years and in principal
amounts (the "Stated Maturities") and bear interest at per annum rates in accordance with the
following schedule:
YEAR OF PRINCIPAL INTEREST
STATED AMOUNT RATE(S)
MATURITY
2003 $ 40,000
2004 35,000
2005 40,000 ok
2006 40,000
2007 40,000 %
2008 45,000
2009 45,000
2010 50,000 %
2011 50,000
2012 55,000 ok
2013 55,000
2014 60,000
2015 60,000
2016 65,000
2017 70,000
2018 70,000 ok
2019 75,000
2020 80,000
2021 85,000 %
2022 90,000
The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the
rate(s) per annum shown in the above schedule (calculated on the basis of a 360-day year of
twelve 30-day months). Interest on the Bonds shall be payable on February 15 and August 15
in each year, commencing February 15, 2003.
SECTION 3: Terms of Payment- Paying Agent/Registrar. The principal of, premium, if
any, and the interest on the Bonds, due and payable by reason of maturity, redemption or
otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter
called the"Holders")appearing on the registration and transfer books maintained by the Paying
Agent/Registrar, and such payment shall be in any coin or currency of the United States of
America, which at the time of payment is legal tender for the payment of public and private
debts, and shall be without exchange or collection charges to the Holders.
The selection and appointment of JP Morgan Chase Bank, Dallas, Texas to serve as
Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records
relating to the registration, payment, transfer and exchange of the Bonds (the "Security
Register') shall at all times be kept and maintained on behalf of the City by the Paying
WYLIE REV 2002_ORDINANCE(3).DOC -3-
Agent/Registrar, as provided herein and in accordance with the terms and provisions of a
"Paying Agent/Registrar Agreement", substantially in the form attached hereto as Exhibit A,
and such reasonable rules and regulations as the Paying Agent/Registrar and the City may
prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement
in connection with the delivery of the Bonds. The City covenants to maintain and provide
a Paying Agent/Registrar at all times until the Bonds are paid and discharged, and any
successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other
entity qualified and authorized to serve in such capacity and perform the duties and services of
Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the
City agrees to promptly cause a written notice thereof to be sent to each Holder by United
States Mail, first class postage prepaid, which notice shall also give the address of the new
Paying Agent/Registrar.
Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities
or upon the earlier redemption thereof, only upon presentation and surrender of the Bonds to
the Paying Agent/Registrar at its designated offices in Dallas, Texas (the "Designated
Payment/Transfer Office"). Interest on the Bonds shall be paid to the Holders whose names
appear in the Security Register at the close of business on the Record Date (the last business
day of the month next preceding each interest payment date) and shall be paid by the Paying
Agent/Registrar(i) by check sent United States Mail, first class postage prepaid, to the address
of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense of,the Holder. If the date for
the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal
holiday, or a day when banking institutions in the City where the Designated Payment/Transfer
Office of the Paying Agent/ Registrar is located are authorized by law or executive order to
close, then the date for such payment shall be the next succeeding day which is not such a
Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and
payment on such date shall have the same force and effect as if made on the original date
payment was due.
In the event of a non-payment of interest on one or more maturities on a scheduled
payment date, and for thirty(30) days thereafter, a new record date for such interest payment
for such maturity or maturities (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the scheduled payment date of the past due
interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States Mail, first class postage
prepaid, to the address of each Holder of such maturity or maturities appearing on the Security
Register at the close of business on the last business day next preceding the date of mailing of
such notice.
SECTION 4: Redemption. (a) Optional Redemption. The Bonds maturing on and
after February 15, 2013, shall be subject to redemption prior to maturity, at the option of the
City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if
within a Stated Maturity by lot by the Paying Agent/ Registrar), on August 15, 2012 or on any
date thereafter at the redemption price of par plus accrued interest to the date of redemption.
At least forty-five (45) days prior to a redemption date for the Bonds (unless a shorter
notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the
Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated
Maturity to be redeemed, and the date of redemption therefor. The decision of the City to
WYLIE REV 2002_ORDINANCE(3).DOC -4-
exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the
City.
(b) Mandatory Redemption. The Bonds having Stated Maturities of February 15„
20 , February 15, 20 and February 15, 20 (the "Term Bonds") shall be subject to
mandatory redemption in part prior to maturity at the redemption price of par and accrued
interest to the date of redemption on the respective dates and in principal amounts as follows:
Term Bonds due February 15, 20 Term Bonds due February 15, 20
Redemption Date Principal Amount Redemption Date Principal Amount
February 15, 20 $ ,000 February 15, 20 $ ,000
February 15, 20 $ ,000 February 15, 20 $ ,000
Term Bonds due February 15, 20
Redemption Date Principal Amount
February 15, 20 $ ,000
February 15, 20 $ ,000
February 15, 20 $ ,000
Approximately forty-five (45) days prior to each redemption date specified above the
Term Bonds are to be mandatorily redeemed, the Paying Agent/Registrar shall select by lot the
numbers of the Term Bonds within the applicable Stated Maturity to be redeemed on the next
following February 15 from moneys set aside for that purpose in the Interest and Sinking Fund
(as hereinafter defined). Any Term Bond not selected for prior redemption shall be paid on the
date of their Stated Maturity.
The principal amount of the Term Bonds for a Stated Maturity required to be redeemed
on a redemption date may be reduced, at the option of the City, by the principal amount of Term
Bonds of like Stated Maturity which, at least 50 days prior to a mandatory redemption date, (1)
shall have been acquired by the City at a price not exceeding the principal amount of such Term
Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying
Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional
redemption provisions set forth in paragraph(a) of this Section and not theretofore credited
against a mandatory redemption requirement.
(c) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the
same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/ Registrar
shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by
dividing the principal amount of such Bonds by $5,000 and shall select the Bonds to be
redeemed within such Stated Maturity by lot.
(d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage
prepaid, in the name of the City and at the City's expense, to each Holder of a Bond to be
redeemed in whole or in part at the address of the Holder appearing on the Security Register at
the close of business on the business day next preceding the date of mailing such notice, and
any notice of redemption so mailed shall be conclusively presumed to have been duly given
irrespective of whether received by the Holder.
WYLIE REV 2002_ORDINANCE(3).DOC -5-
All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii)
identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be
redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price,
(iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall
become due and payable on the redemption date specified, and the interest thereon, or on the
portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the
redemption date, and (v) specify that payment of the redemption price for the Bonds, or the
principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer
Office of the Paying Agent/ Registrar only upon presentation and surrender thereof by the
Holder. If a Bond is subject by its terms to prior redemption and has been called for redemption
and notice of redemption thereof has been duly given or waived as herein provided, such Bond
(or the principal amount thereof to be redeemed) shall become due and payable, and interest
thereon shall cease to accrue from and after the redemption date therefor, provided moneys
sufficient for the payment of such Bonds(or of the principal amount thereof to be redeemed) at
the then applicable redemption price are held for the purpose of such payment by the Paying
Agent/Registrar.
SECTION 5: Registration - Transfer- Exchange of Bonds - Predecessor Bonds. The
Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and
address of each registered owner of the Bonds issued under and pursuant to the provisions of
this Ordinance. Any Bond may, in accordance with its terms and the terms hereof, be
transferred or exchanged for Bonds of other authorized denominations upon the Security
Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond
to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer
or request for exchange duly executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/ Registrar.
Upon surrender for transfer of any Bond (other than the Initial Bonds authorized in
Section 8 hereof)at the Designated Payment/Transfer Office of the Paying Agent/Registrar,the
Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or
transferees, one or more new Bonds, executed on behalf of, and furnished by, the City of
authorized denominations and having the same Stated Maturity and of a like aggregate principal
amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds (other than the Initial Bonds authorized in Section 8
hereof) may be exchanged for other Bonds of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the
Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the
Designated Payment/Transfer Office of the Paying Agent/ Registrar. Whenever any Bonds are
surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Bonds,
executed on behalf of, and furnished by, the City, to the Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the
Designated Payment/Transfer Office of the Paying Agent/Registrar, or sent by United States
Mail, first class postage prepaid, to the Holder and, upon the delivery thereof,the same shall be
valid obligations of the City, evidencing the same obligation to pay, and entitled to the same
benefits under this Ordinance, as the Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or
WYLIE REV 2002_ORDINANCE(3).DOC -6-
exchange of any tax or other governmental charges required to be paid with respect to such
transfer or exchange.
Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof
are hereby defined to be"Predecessor Bonds," evidencing all or a portion, as the case may be,
of the same obligation to pay evidenced by the Bond or Bonds registered and delivered in the
exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any
mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued,
registered and delivered in lieu thereof pursuant to Section 30 hereof and such new
replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost,
destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange
any Bond called for redemption, in whole or in part, within 45 days of the date fixed for
redemption of such Bond; provided, however, such limitation of transfer shall not be applicable
to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in
part.
SECTION 6: Book-Entry Only Transfers and Transactions. Notwithstanding the
provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and
transfer/exchange of the Bonds, the City hereby approves and authorizes the use of
"Book-Entry Only" securities clearance, settlement and transfer system provided by The
Depository Trust Company(DTC), a limited purpose trust company organized under the laws of
the State of New York, in accordance with the operational arrangements referenced in the
Blanket Issuer Letter of Representation, by and between the City and DTC (the "Depository
Agreement").
Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be
deposited with DTC who shall hold said Bonds for its participants (the "DTC Participants").
While the Bonds are held by DTC under the Depository Agreement,the Holder of the Bonds on
the Security Register for all purposes, including payment and notices, shall be Cede & Co., as
nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each
Bond (the"Beneficial Owners") being recorded in the records of DTC and DTC Participants.
In the event DTC determines to discontinue serving as securities depository for the
Bonds or otherwise ceases to provide book-entry clearance and settlement of securities
transactions in general or the City determines that DTC is incapable of properly discharging its
duties as securities depository for the Bonds,the City covenants and agrees with the Holders of
the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to
be issued and delivered to DTC Participants and Beneficial Owners, as the case may be.
Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the
Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall
be made in accordance with the provisions of Sections 3, 4 and 5 hereof.
SECTION 7: Execution - Registration. The Bonds shall be executed on behalf of the
City by the Mayor under its seal reproduced or impressed thereon and countersigned by the
City Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds
bearing the manual or facsimile signatures of individuals who are or were the proper officers of
the City on the Bond Date shall be deemed to be duly executed on behalf of the City,
notwithstanding that such individuals or either of them shall cease to hold such offices at the
time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in
WYLIE REV 2002_ORDINANCE(3).DOC -7-
subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government
Code, Chapter 1201.
No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Bond either a certificate of registration
substantially in the form provided in Section 9C, manually executed by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent, or a certificate of registration
substantially in the form provided in Section 9D, manually executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and either such certificate upon any
Bond duly signed shall be conclusive evidence, and the only evidence,that such Bond has been
duly certified, registered and delivered.
SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued
either (i) as a single fully registered bond in the total principal amount referenced in Section 1
hereof with principal installments to become due and payable as provided in Section 2 hereof
and numbered T-1, or (ii) as multiple fully registered bonds, being one bond for each year of
maturity in the applicable principal amount and denomination and to be numbered consecutively
from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial
Bond(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of
Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts
of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the
Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial
purchaser(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and
exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal
amounts and bearing applicable interest rates for transfer and delivery to the Holders named at
the addresses identified therefor; all pursuant to and in accordance with such written
instructions from the initial purchaser(s), or the designee thereof, and such other information
and documentation as the Paying Agent/Registrar may reasonably require.
SECTION 9: Forms. A. Forms Generally. The Bonds, the Registration Certificate
of the Comptroller of Public Accounts of the State of Texas, the Certificate of Registration, and
the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms
set forth in this Section with such appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance and may have such letters, numbers,
or other marks of identification (including identifying numbers and letters of the Committee on
Uniform Securities Identification Procedures of the American Bankers Association) and such
legends and endorsements (including insurance legends in the event the Bonds, or any
maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel)
thereon as may, consistently herewith, be established by the City or determined by the officers
executing such Bonds as evidenced by their execution thereof. Any portion of the text of any
Bonds may be set forth on the reverse thereof,with an appropriate reference thereto on the face
of the Bond.
The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, or engraved,
typewritten, photocopied or otherwise reproduced in any other similar manner,all as determined
by the officers executing such Bonds as evidenced by their execution thereof.
WYLIE REV 2002_ORDINANCE(3).DOC -8-
B. Form of Definitive Bond.
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF WYLIE, TEXAS,
WATERWORKS AND SEWER SYSTEM
REVENUE BOND, SERIES 2002
Bond Date: Interest Rate: Stated Maturity: CUSIP NO:
September 15, 2002
Registered Owner:
Principal Amount: DOLLARS
The City of Wylie (hereinafter referred to as the "City"), a body corporate and municipal
corporation in the County of Collin, State of Texas, for value received, hereby promises to pay
to the order of the Registered Owner named above, or the registered assigns thereof, solely
from the revenues hereinafter identified, on the Stated Maturity date specified above the
Principal Amount stated above (or so much thereof as shall not have been paid upon prior
redemption) and to pay interest (computed on the basis of a 360-day year of twelve 30-day
months) on the unpaid Principal Amount hereof from the Bond Date at the per annum rate of
interest specified above; such interest being payable on February 15 and August 15 of each
year, commencing February 15, 2003. Principal of this Bond is payable at its Stated Maturity or
redemption to the registered owner hereof, upon presentation and surrender, at the Designated
Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate
appearing hereon, or its successor; provided, however, while this Bond is registered to Cede&
Co., the payment of principal upon a partial redemption of the principal amount hereof may be
accomplished without presentation and surrender of this Bond. Interest is payable to the
registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance
hereinafter referenced) whose name appears on the "Security Register" maintained by the
Paying Agent/ Registrar at the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment date and interest shall be paid
by the Paying Agent/ Registrar by check sent United States Mail, first class postage prepaid, to
the address of the registered owner recorded in the Security Register or by such other method,
acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the
registered owner. All payments of principal of, premium, if any, and interest on this Bond shall
be without exchange or collection charges to the owner hereof and in any coin or currency of
the United States of America which at the time of payment is legal tender for the payment of
public and private debts.
This Bond is one of the series specified in its title issued in the aggregate principal
amount of $1,150,000 (herein referred to as the "Bonds") for the purpose of making
improvements and extensions to the City's combined Waterworks and Sewer System, under
and in strict conformity with the Constitution and laws of the State of Texas, including V.T.C.A.,
Government Code, Section 1502.051(c), and pursuant to an Ordinance adopted by the City
WYLIE REV 2002_ORDINANCE(3).DOC -9-
Council of the City(herein referred to as the"Ordinance").
The Bonds maturing on the dates hereinafter identified(the"Term Bonds")are subject to
mandatory redemption prior to maturity with funds on deposit in the Interest and Sinking Fund
established and maintained for the payment thereof in the Ordinance, and shall be redeemed in
part prior to maturity at the price of par and accrued interest thereon to the date of redemption,
and without premium, on the date and in the principal amount as follows:
Term Bonds due February 15, 20 Term Bonds due February 15, 20
Redemption Date Principal Amount Redemption Date Principal Amount
February 15, 20 $ ,000 February 15, 20 $ ,000
February 15, 20 $ ,000 February 15, 20 $ ,000
Term Bonds due February 15, 20
Redemption Date Principal Amount
February 15, 20 $ ,000
February 15, 20 $ ,000
February 15, 20 $ ,000
The particular Term Bonds of a stated maturity to be redeemed on each redemption date
shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal
amount of Term Bonds for a stated maturity required to be redeemed on a redemption date may
be reduced, at the option of the City, by the principal amount of Term Bonds of like stated
maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been
acquired by the City at a price not exceeding the principal amount of such Term Bonds plus
accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for
cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions
appearing below and not theretofore credited against a mandatory redemption requirement.
The Bonds maturing on and after February 15, 2013, may be redeemed prior to their
Stated Maturities, at the option of the City, in whole or in part in principal amounts of$5,000 or
any integral multiple thereof (and if within a Stated Maturity by lot by the Paying
Agent/Registrar), on August 15, 2012 or on any date thereafter at the redemption price of par
plus accrued interest thereon to the redemption date.
At least thirty days prior to the date fixed for any redemption of Bonds, the City shall
cause a written notice of such redemption to be sent by United States Mail, first class postage
prepaid, to the registered owners of each Bond to be redeemed at the address shown on the
Security Register and subject to the terms and provisions relating thereto contained in the
Ordinance. If a Bond (or any portion of its principal sum) shall have been duly called for
redemption and notice of such redemption duly given, then upon such redemption date such
Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and
interest thereon shall cease to accrue from and after the redemption date therefor, provided
moneys for the payment of the redemption price and the interest on the principal amount to be
redeemed to the date of redemption are held for the purpose of such payment by the Paying
Agent/Registrar.
WYLIE REV 2002_ORDINANCE(3).DOC _10_
In the event a portion of the principal amount of a Bond is to be redeemed and the
registered owner is someone other than Cede & Co., payment of the redemption price of such
principal amount shall be made to the registered owner only upon presentation and surrender of
such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new
Bond or Bonds of like maturity and interest rate in any authorized denominations provided by
the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to
the registered owner, without charge. If a Bond is selected for redemption, in whole or in part,
the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an
assignee of the registered owner within 45 days of the redemption date therefor; provided,
however, such limitation on transferability shall not be applicable to an exchange by the
registered owner of the unredeemed balance of a Bond redeemed in part.
The Bonds are special obligations of the City and, together with the outstanding
"Previously Issued Bonds" (identified and defined in the Ordinance, payable solely from and
equally and ratably secured by a first lien on and pledge of the Net Revenues(as defined in the
Ordinance) of the City's combined Waterworks and Sewer System (the"System"). The Bonds
do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of
the City or the System, except with respect to the Net Revenues. The holder hereof shall never
have the right to demand payment of this obligation out of any funds raised or to be raised by
taxation.
Subject to satisfying the terms and conditions prescribed therefor, the City has reserved
the right to issue additional revenue obligations payable from and equally and ratably secured
by a parity lien on and pledge of the Net Revenues of the System, in the same manner and to
the same extent as the Previously Issued Bonds and the Bonds.
Reference is hereby made to the Ordinance, a copy of which is on file in the Designated
Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the
Holder by the acceptance hereof hereby assents, for definitions of terms; the description of and
the nature and extent of the security for the Bonds; the properties constituting the System; the
Net Revenues pledged to the payment of the principal of and interest on the Bonds; the nature
and extent and manner of enforcement of the lien and pledge securing the payment of the
Bonds; the terms and conditions for the issuance of additional revenue obligations; the terms
and conditions relating to the transfer or exchange of this Bond; the conditions upon which the
Ordinance may be amended or supplemented with or without the consent of the Holders; the
rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and
provisions upon which the liens, pledges, charges and covenants made therein may be
discharged at or prior to the maturity or redemption of this Bond, and this Bond deemed to be no
longer Outstanding thereunder; and for the other terms and provisions contained therein.
Capitalized terms used herein have the same meanings assigned in the Ordinance.
This Bond, subject to certain limitations contained in the Ordinance, may be transferred
on the Security Register only upon its presentation and surrender at the Designated
Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized
agent. When a transfer on the Security Register occurs, one or more new fully registered
Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of
interest, and of the same aggregate principal amount will be issued by the Paying
Agent/Registrar to the designated transferee or transferees.
WYLIE REV 2002_ORDINANCE(3).DOC -11-
The City and the Paying Agent/Registrar, and any agent of either, may treat the
registered owner hereof whose name appears on the Security Register (i)on the Record Date
as the owner entitled to payment of interest hereon, (ii)on the date of surrender of this Bond as
the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in
whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the
City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the
contrary. In the event of non-payment of interest on a scheduled payment date and for
thirty(30) days thereafter, a new record date for such interest payment (a "Special Record
Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of
such interest have been received from the City. Notice of the Special Record Date and of the
scheduled payment date of the past due interest (which shall be 15 days after the Special
Record Date) shall be sent at least five (5) business days prior to the Special Record Date by
United States Mail, first class postage prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the last business day next preceding the date of
mailing of such notice.
It is hereby certified, recited, represented and covenanted that the City is a duly
organized and legally existing municipal corporation under and by virtue of the Constitution and
laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all
acts, conditions and things required to exist and be done precedent to and in the issuance of the
Bonds to render the same lawful and valid obligations of the City have been properly done, have
happened and have been performed in regular and due time, form and manner as required by
the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not
exceed any constitutional or statutory limitation; and that due provision has been made for the
payment of the principal of and interest on the Bonds by a pledge of the Net Revenues of the
System as aforestated. In case any provision in this Bond or any application thereof shall be
invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining
provisions and applications shall not in any way be affected or impaired thereby. The terms and
provisions of this Bond and the Ordinance shall be construed in accordance with and shall be
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly
executed under the official seal of the City as of the Bond Date.
CITY OF WYLIE, TEXAS
Mayor
COUNTERSIGNED:
City Secretary
(SEAL)
WYLIE REV 2002_ORDINANCE(3).DOC -12-
C. Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER )
)
OF PUBLIC ACCOUNTS ) REGISTER NO.
)
THE STATE OF TEXAS )
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 duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this .
Comptroller of Public Accounts
of the State of Texas
(SEAL)
*NOTE TO PRINTER: Do Not Print on Definitive Bonds
D. Form of Certificate of Paying Agent/Registrar to appear on Definitive Bonds
only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered under the provisions of the
within-mentioned Ordinance; the bond or bonds of the above entitled and designated series
originally delivered having been approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts, as shown by the records of the Paying
Agent/Registrar.
The designated offices of the Paying Agent/Registrar in Dallas,Texas is the"Designated
Payment/Transfer Office"for this Bond.
JPMORGAN CHASE BANK,
Dallas, Texas,
as Paying Agent/Registrar
Registration date:
By:
Authorized Signature
WYLIE REV 2002_ORDINANCE(3).DOC -13-
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee:)
(Social Security or other identifying number:
)the within Bond and all rights thereunder, and hereby irrevocably
constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in the
premises.
DATED:
NOTICE: The signature on this
assignment must correspond with the
Signature guaranteed: name of the registered owner as it
appears on the face of the within Bond in
every particular.
F. The Initial Bond(s) shall be in the form set forth in paragraph B of this Section,
except that the form of a single fully registered Initial Bond shall be modified as follows:
(i) immediately under the name of the bond the headings "Interest Rate
and "Stated Maturity " shall both be omitted;
(ii) Paragraph one shall read as follows:
The City of Wylie (hereinafter referred to as the "City"), a body corporate and municipal
corporation in the County of Collin, State of Texas, for value received, hereby promises to pay
to the order of the Registered Owner named above, or the registered assigns thereof, solely
from the revenues hereinafter identified, the Principal Amount hereinabove stated on
February 15 in each of the years and in principal installments in accordance with the following
schedule:
PRINCIPAL INTEREST
YEAR INSTALLMENTS RATE
(Information to be inserted from schedule in Section 2 hereof).
(or so much thereof as shall not have been prepaid prior to maturity) and to pay interest,
computed on the basis of a 360-day year of twelve 30-day months, on the unpaid principal
amounts hereof from the Bond Date at the per annum rates of interest specified above; such
interest being payable on February 15 and August 15 in each year, commencing February 15,
2003. Principal installments of this Bond are payable in the year of maturity or on a prepayment
date to the registered owner hereof by JP Morgan Chase Bank, Dallas, Texas (the "Paying
Agent/Registrar"), upon presentation and surrender, at its designated offices in Dallas, Texas
(the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this
Bond whose name appears on the "Security Register' maintained by the Paying
Agent/Registrar at the close of business on the"Record Date", which is the last business day of
the month next preceding each interest payment date and interest shall be paid by the Paying
Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of
WYLIE REV 2002_ORDINANCE(3).DOC -14-
registered owner recorded in the Security Register or by such other method, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All
payments of principal of, premium, if any,and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public and private
debts.
SECTION 10: Definitions. For all purposes of this Ordinance and in particular for clarity
with respect to the issuance of the Bonds herein authorized and the pledge and appropriation of
revenues to the payment of the Bonds, the following definitions are provided:
(a) "Additional Parity Bonds" - Revenue bonds or other evidences of
indebtedness which the City reserves the right to issue or enter into, as the case
may be, in the future under the terms and conditions provided in Section 19 of
this Ordinance and which, together with the Bonds, are equally and ratably
secured by a first lien on and pledge of the Net Revenues of the System.
(b) "Average Annual Debt Service" -That average amount which, at
the time of computation, will be required to pay the Debt Service of obligations
when due and derived by dividing the total of such Debt Service by the number of
years then remaining before final maturity. Capitalized interest payments
provided from proceeds of Bonds Similarly Secured shall be excluded in making
the aforementioned computation.
(c) "Bonds" -The "City of Wylie, Texas, Waterworks and Sewer
System Revenue Bonds, Series 2002", dated September 15, 2002, authorized
by this Ordinance.
(d) "Bonds Similarly Secured" -Collectively the Previously Issued
Bonds, the Bonds and Additional Parity Bonds.
(e) "City"-The City of Wylie located in the County of Collin, Texas.
(f) "Debt Service" -As of any particular date of computation, with
respect to any obligations and with respect to any period, the aggregate of the
amounts to be paid or set aside by the City as of such date or in such period
for the payment of the principal of, premium, if any, and interest(to the extent not
capitalized) on such obligations; assuming, in the case of Bonds Similarly
Secured without a fixed numerical rate, that such obligations bear, or would have
borne, interest at the highest rate reached, or that would have applied to such
obligations (using the index or method for computing interest applicable to such
obligations) during the twenty-four (24) month period next preceding the date of
computation; and further assuming in the case of obligations required to be
redeemed or prepaid as to principal prior to maturity, the principal amounts
thereof will be redeemed prior to maturity in accordance with the mandatory
redemption provisions applicable thereto.
(g) "Fiscal Year"-The twelve month accounting period used by the
City in connection with the operation of the System which may be any twelve
consecutive month period established by the City.
WYLIE REV 2002_ORDINANCE(3).DOC -15-
(h) "Government Obligations" - mean (i) direct noncallable
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, (ii) noncallable obligations of an agency or instrumentality of the United
States, including obligations unconditionally guaranteed or insured by the agency
or instrumentality and on the date of their acquisition or purchase by the City are
rated as to investment quality by a nationally recognized investment rating firm
not less than AAA or its equivalent and (iii) noncallable obligations of a state or
an agency or a county, municipality, or other political subdivision of a state that
have been refunded and on the date of their acquisition or purchase by the City,
are rated as to investment quality by a nationally recognized investment rating
firm not less than AAA or its equivalent.
(I) "Gross Revenues" -All income, receipts and revenues of every
nature derived or received from the operation and ownership (excluding
refundable meter deposits, restricted gifts and grants in aid of construction)of the
System, including earnings and income derived from the investment or deposit of
moneys in any special funds or accounts created and established for the
payment and security of the Bonds Similarly Secured and other obligations
payable solely from and secured only by a lien on and pledge of the Net
Revenues.
(j) "Maintenance and Operating Expenses" -All current expenses of
operating and maintaining the System, including all salaries, labor, materials,
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 maintain the operations 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 obligations payable from Net Revenues shall be deducted in determining
"Net Revenues". Depreciation charges shall not be considered Maintenance and
Operating Expenses. Maintenance and Operating Expenses shall include
payments under contracts for the purchase of water supply, treatment of sewage
or other materials, goods or services for the System to the extent authorized by
law and the provisions of such contract.
(k) "Net Earnings"-The meaning assigned to such term in Section 19
hereof.
(I) "Net Revenues" -Gross Revenues of the System, with respect to
any period, after deducting the System's Maintenance and Operating Expenses
during such period.
(m) "Outstanding"-When used in this Ordinance with respect to
Bonds means, as of the date of determination, all Bonds theretofore issued and
delivered under this Ordinance, except:
(1) those Bonds cancelled by the Paying
Agent/Registrar or delivered to the Paying Agent/Registrar for
cancellation;
WYLIE REV 2002_ORDINANCE(3).DOC - 6-
(2) those Bonds deemed to be duly paid by the City in
accordance with the provisions of Section 28 hereof; and
(3) those Bonds that have been mutilated, destroyed,
lost, or stolen and replacement Bonds have been registered and
delivered in lieu thereof as provided in Section 30 hereof.
(n) "Previously Issued Bonds" means the (i) "City of Wylie, Texas
Waterworks and Sewer System Revenue Bonds, Series 1999", dated September
1, 1999, and originally issued in the aggregate principal amount of$1,380,000,
and (ii)"City of Wylie, Texas, Waterworks and Sewer System Revenue Bonds,
Series 2000", dated August 15, 2000, and originally issued in the aggregate
principal amount of$1,750,000.
(o) "Required Reserve"-The amount required to be accumulated and
maintained in the Reserve Fund under the provisions of Section 15.
(p) "System" -All properties, facilities and plants currently owned,
operated and maintained by the City for the supply, treatment, transmission and
distribution of treated potable water and the collection, treatment and disposal of
water-carried wastes, together with all future extensions, improvements,
replacements and additions thereto; provided, however, that notwithstanding the
foregoing, and to the extent now or hereafter authorized or permitted by law, the
term "System" shall not mean to include facilities of any kind which are declared
not to be a part of the System and which are acquired or constructed by or on
behalf of the City with the proceeds from the issuance of "Special Facilities
Bonds", which are hereby defined as being special revenue obligations of the
City which are not Bonds but which are payable from and secured by other liens
on and pledges of any revenues, sources or payments, not pledged to the
payment of the Bonds including, but not limited to, special contract revenues or
payments received from any other legal entity in connection with such facilities.
SECTION 11: Pledge. The City hereby covenants and agrees that the Net Revenues of
the System, with the exception of such Net Revenues in excess of the amounts required for the
payment and security of the Bonds Similarly Secured, are hereby irrevocably pledged, equally
and ratably, to the payment and security of the Previously Issued Bonds and the Bonds
including the establishment and maintenance of the special funds created and established for
the payment and security thereof, all as hereinafter provided; and it is hereby ordained that the
Bonds Similarly Secured, and the interest thereon, shall constitute a first lien on the Net
Revenues of the System and be valid and binding and fully perfected from and after the date of
adoption of this Ordinance without physical delivery or transfer or transfer of control of the Net
Revenues, the filing of this Ordinance or any other act; all as provided in Chapter 1208 of the
Texas Government Code.
Section 1208, Government Code, applies to the issuance of the Bonds and the pledge of
the Net Revenues granted by the City under this Section 11, and such pledge is therefore valid,
effective and perfected. If Texas law is amended at any time while the Bonds are Outstanding
such that the pledge of the Net Revenues granted by the City under this Section 11 is to be
subject to the filing requirements of Chapter 9, Business & Commerce Code, then in order to
preserve to the registered owners of the Bonds the perfection of the security interest in said
pledge, the City agrees to take such measures as it determines are reasonable and necessary
WYLIE REV 2002_ORDINANCE(3).DOC -17-
under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce
Code and enable a filing to perfect the security interest in said pledge to occur.
SECTION 12: Rates and Charges. For the benefit of the Holders of the Bonds and in
addition to all provisions and covenants in the laws of the State of Texas and in this Ordinance,
the City hereby expressly stipulates and agrees, while any of the Bonds are Outstanding, to
establish and maintain rates and charges for facilities and services afforded by the System that
are reasonably expected, on the basis of available information and experience and with due
allowance for contingencies, to produce Gross Revenues in each Fiscal Year sufficient:
(a) To pay Maintenance and Operating Expenses, depreciation
charges and replacement and betterment costs,
(b) To produce Net Revenues sufficient to pay the principal of and
interest on the Bonds Similarly Secured and the amounts required to be
deposited in any reserve or contingency fund created for the payment and
security of the Bonds Similarly Secured, and other obligations or evidences of
indebtedness issued or incurred that are payable only from and secured solely by
a lien on and pledge of the Net Revenues of the System, and
(c) To produce Net Revenues equal to at least 1.20 times the
Average Annual Debt Service for the then outstanding Bonds Similarly Secured.
SECTION 13: Water and Sewer System Fund. The City hereby covenants and agrees
that Gross Revenues of the System (excluding earnings and income derived from the
investment or deposit of moneys in the Bond Fund and Reserve Fund) shall be deposited, as
collected and received, into a separate account (created, established and maintained with a
depository bank of the City) known as the 'Water and Sewer System Fund" (herein called the
"System Fund") and the Gross Revenues of the System shall be kept separate and apart from
all other funds of the City. All revenues deposited in the System Fund shall be pledged and
appropriated to the extent required for the following uses and in the order of priority shown:
FIRST: To the payment of all necessary and reasonable Maintenance
and Operating Expenses as defined herein or required by statute to be a first
charge on and claim against the Gross Revenues thereof.
SECOND: To the payment of the amounts required to be deposited in the
Bond Fund created and established for the payment of Debt Service on the
Bonds Similarly Secured as the same becomes due and payable.
THIRD: To the payment of the amounts required to be deposited in the
Reserve Fund to establish and maintain the Required Reserve in accordance
with the provisions of this Ordinance or any other ordinance relating to issuance
of Bonds Similarly Secured.
Any Net Revenues remaining in the System Fund after satisfying the foregoing
payments, or making adequate and sufficient provision for the payment thereof, may be
appropriated and used for any other City purpose now or hereafter permitted by law.
SECTION 14: Bond Fund. For purposes of providing funds to pay the principal of and
interest on the Bonds Similarly Secured as the same becomes due and payable,the City hereby
WYLIE REV 2002_ORDINANCE(3).DOC -18-
covenants and agrees to maintain at a depository bank of the City a separate and special
account or fund known as the "City of Wylie Interest and Sinking Revenue Bond Fund" (the
"Bond Fund"). In addition to the payments for the Previously Issued Bonds, the City covenants
that there shall be deposited from the Net Revenues into the Bond Fund prior to each principal
and interest payment date an amount equal to one hundred per centum (100%) of the amount
required to fully pay the interest on and the principal of the Bonds then falling due and payable,
such deposits to pay maturing principal and accruing interest on the Bonds to be made in
substantially equal monthly installments on or before the 1st day of each month, beginning on or
before the 1st day of the month next following the month the Bonds are delivered to the initial
purchaser(s). If the Net Revenues in any month are insufficient to make the required payments
into the Bond Fund, then the amount of any deficiency in the payment shall be added to the
amount otherwise required to be paid into the Bond Fund in the next month.
The required monthly deposits to the Bond Fund for the payment of principal of and
interest on the Bonds shall continue to be made as hereinabove provided until such time as
(i)the total amount on deposit in the Bond Fund and Reserve Fund is equal to the amount
required to fully pay and discharge all outstanding Bonds Similarly Secured (principal and
interest)or(ii)the Bonds are deemed to be paid in accordance with the provisions of Section 28
hereof.
Accrued interest and premium, if any, received from the purchaser(s) of the Bonds, as
well as earnings derived from the investment of moneys in the Bond Fund and any proceeds of
the Bonds not required to complete the improvements and extensions to the System and
deposited in the Bond Fund, shall be taken into consideration and reduce the amount of the
monthly deposits otherwise required to be deposited in the Bond Fund from the Net Revenues
of the System.
SECTION 15: Reserve Fund. For purposes of accumulating and maintaining funds as a
reserve for the payment of the Bonds Similarly Secured, the City hereby covenants and agrees
to maintain a separate and special fund or account known as the"City of Wylie Revenue Bond
Reserve Fund" (the "Reserve Fund"), and all funds deposited therein (excluding earnings and
income derived or received from deposits or investments which may be transferred to the
System Fund referenced in Section 13 hereof during such periods as there is on deposit in the
Reserve Fund the Required Reserve) shall be used solely for the payment of the principal of
and interest on the Bonds Similarly Secured, when and to the extent other funds available for
such purposes are insufficient, and, in addition, may be used to the extent not required to
maintain the "Required Reserve", to pay, or provide for the payment of, the final principal
amount of a series of Bonds Similarly Secured so that such series of Bonds Similarly Secured is
no longer deemed to be"Outstanding"within the meaning of Section 28 hereof.
In accordance with the ordinance authorizing the issuance of the Previously Issued
Bonds, the amount currently on deposit to the credit of the Reserve Fund is in excess of$
(the "Old Reserve"). By reason of the issuance of the Bonds, the amount to be
accumulated and maintained in said Fund shall be increased to an amount equal to$_(the
"Required Reserve"), which amount is hereby found to equal or exceed the Average Annual
Debt Service for the outstanding Bonds Similarly Secured after giving effect to the issuance of
the Bonds (calculated on a Fiscal Year basis as of the date the Bonds are to be delivered).
The City agrees that there shall be deposited to the credit of the Reserve Fund from the Net
Revenues of the System on or before the 1st day of the month next following the month the
Bonds are delivered to the initial purchasers and on or before the 1st day of each following
month an amount equal to at least 1/60th of the difference between the Required Reserve and
WYLIE REV 2002_ORDINANCE(3).DOC -19-
the Old Reserve until the Required Reserve has been fully accumulated in the Reserve Fund.
As and when Additional Parity Bonds are delivered or incurred, the Required Reserve
shall be increased, if required, to an amount equal to not less than the Average Annual Debt
Service(calculated on a Fiscal Year basis)for all Bonds Similarly Secured then outstanding, as
determined on the date each series of Bonds are delivered or incurred, as the case may be.
Any additional amount required to be maintained in the Reserve Fund shall be so accumulated
by the deposit in the Reserve Fund of all or any part thereof in cash immediately after the
delivery of the then proposed Additional Parity Bonds, or, at the option of the City, by the
deposit of monthly installments, made on or before the 1st day of each month following the
month of delivery of the then proposed Additional Parity Bonds, of not less than 1/60th of the
additional amount to be maintained in said Fund by reason of the issuance of the Additional
Parity Bonds then being issued (or 1/60th of the balance of the additional amount not deposited
immediately in cash).
While the cash and investments in the Reserve Fund total not less than the Required
Reserve, no deposits need be made to the credit of the Reserve Fund; but, if and when the
Reserve Fund at any time contains less than the Required Reserve (other than as the result of
the issuance of Additional Parity Bonds as provided in the preceding paragraph), the City
covenants and agrees to cure the deficiency in the Required Reserve by making monthly
deposits to said Fund from the Net Revenues of the System, such monthly deposits to be in
amounts equal to not less than 1/60th of the then total Required Reserve to be maintained in
said Fund and to be made on or before the 1st day of each month until the total Required
Reserve then to be maintained in said Fund has been fully restored. The City further covenants
and agrees that, subject only to the payments to be made to the Bond Fund, the Net Revenues
shall be applied and appropriated and used to establish and maintain the Required Reserve and
to cure any deficiency in such amounts as required by the terms of this Ordinance and any other
ordinance pertaining to the issuance of Bonds Similarly Secured.
During such time as the Reserve Fund contains the total Required Reserve, the City
may, at its option, withdraw all surplus in the Reserve Fund in excess of the Required Reserve
and deposit such surplus in the System Fund. The City hereby designates its depository bank
or banks as the custodian of the Reserve Fund.
Notwithstanding anything herein to the contrary, the City retains the right to fund the
Required Reserve in whole or in part with a surety bond or insurance policy issued by an
insurance company or other entity that is rated either for the long term unsecured debt of the
issuer of such surety bond or for obligations insured, secured or guaranteed by such issuer
have a rating in the highest letter category by two major municipal securities rating or
evaluation services, and money deposited to the credit of the Reserve Fund may be used to
make any payments required to satisfy the City's repayment obligation to the issuer of such
surety bond or insurance policy in the same manner and with like effect as if such payments
were being used to accumulate, maintain or restore the Required Reserve in cash or with
authorized investments.
SECTION 16: Deficiencies; Excess Net Revenues. (a) If on any occasion there shall
not be sufficient Net Revenues of the System to make the required deposits into the Bond Fund
and the Reserve Fund, then such deficiency shall be cured as soon as possible from the next
available Net Revenues of the System, or from any other sources available for such purpose.
(b) Subject to making the required deposits to the Bond Fund and the Reserve Fund
WYLIE REV 2002_ORDINANCE(3).DOC -20-
when and as required by this Ordinance, or any ordinance authorizing the issuance of Bonds
Similarly Secured, the excess Net Revenues may be used by the City for any lawful purpose.
SECTION 17: Payment of Bonds. While any of the Bonds are Outstanding, the City's
chief financial officer shall cause to be transferred to the Paying Agent/Registrar therefor, from
funds on deposit in the Bond Fund, and, if necessary, in the Reserve Fund, amounts sufficient
to fully pay and discharge promptly as each installment of interest and principal of the Bonds
accrues or matures or comes due by reason of redemption prior to maturity; such transfer of
funds to be made in such manner as will cause immediately available funds to be deposited with
the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the
date of payment for the Bonds.
SECTION 18: Investments- Security of Funds. (a) Money in any Fund referred
to in this Ordinance may, at the option of the City, be placed in time deposits or certificates of
deposit secured (to the extent not insured by the Federal Deposit Insurance Corporation) by
obligations of the type hereinafter described, or be invested, including investments held in
book-entry form, in direct obligations of the United States of America, obligations guaranteed or
insured by the United States of America, which, in the opinion of the Attorney General of the
United States, are backed by its full faith and credit or represent its general obligations, or
invested in indirect obligations of the United States of America, including, but not limited to,
evidences of indebtedness issued, insured or guaranteed by such governmental agencies as
the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal
Home Loan Banks, Government National Mortgage Association, Farmers Home Administration,
Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all
such deposits and investments shall be made in such a manner that the money required to be
expended from any Fund will be available at the proper time or times. Such investments
(except State and Local Government Series investments held in book entry form, which shall at
all times be valued at cost)shall be valued in terms of current market value within 45 days of the
close of each Fiscal Year and, with respect to investments held for the account of the Reserve
Fund, within 30 days of the date of passage of each ordinance authorizing the issuance of
Additional Parity Bonds. All interest and income derived from deposits and investments in the
Bond Fund immediately shall be credited to, and any losses debited to, the Bond Fund. All
interest and interest income derived from deposits in and investments of the Reserve Fund
shall, subject to the limitations provided in Section 14 hereof, be credited to and deposited in the
Bond Fund. All such investments shall be sold promptly when necessary to prevent any default
in connection with the Bonds.
(b) Money in all Funds created by this Ordinance,to the extent not invested, shall be
secured in the manner and to the fullest extent required by the laws of the State of Texas for the
security of public funds.
SECTION 19: Issuance of Additional Parity Obligations. Subject to the provisions
hereinafter appearing as to conditions precedent which must be satisfied, the City reserves the
right to issue, from time to time as needed, Additional Parity Bonds for any lawful purpose.
Such Additional Parity Bonds may be issued in such form and manner as now or hereafter
authorized by the laws of the State of Texas for the issuance of evidences of indebtedness or
other instruments, and should new methods or financing techniques be developed that differ
from those now available and in normal use, the City reserves the right to employ the same in
its financing arrangements provided only that the following conditions precedent for the
authorization and issuance of the same are satisfied, to wit:
WYLIE REV 2002_ORDINANCE(3).DOC -21-
(a) The Director of Finance of the City(or other officer of the City then
having the primary responsibility for the financial affairs of the City) shall have
executed a certificate stating (a)that, to the best of their knowledge and belief,
the City is not then in default as to any covenant, obligation or agreement
contained in any ordinance or other proceeding relating to any obligations of the
City payable from and secured by a lien on and pledge of the Net Revenues of
the System that would materially affect the security or payment of such
obligations and (b) either (i) payments into all special funds or accounts created
and established for the payment and security of all outstanding obligations
payable from and secured by a lien on and pledge of the Net Revenues of the
System have been made and that the amounts on deposit in such special funds
or accounts are the amounts then required to be on deposit therein or (ii) the
application of the proceeds of sale of such obligations then being issued will cure
any such deficiency.
(b) The Additional Parity Bonds shall be scheduled to mature or be
payable as to principal on February 15 or August 15 (or both) in each year the
same are to be outstanding or during the term thereof.
(c) The City has secured a certificate or opinion of a Certified Public
Accountant to the effect that, according to the books and records of the City, the
Net Earnings, for the preceding Fiscal Year or for 12 consecutive months out of
the 15 months immediately preceding the month the ordinance authorizing the
issuance of the Additional Parity Bonds is adopted, are at least equal to 1.25
times the Average Annual Debt Service for all outstanding Bonds Similarly
Secured after giving effect to the issuance of the Additional Parity Bonds then
being issued. In making a determination of the Net Earnings, the Accountant
may take into consideration a change in the rates and charges for services and
facilities afforded by the System that became effective at least sixty (60) days
prior to the last day of the period for which Net Earnings are determined and, for
purposes of satisfying the above Net Earnings test, make a pro forma
determination of the Net Earnings of the System for the period of time covered by
his certification or opinion based on such change in rates and charges being in
effect for the entire period covered by the Accountant's certificate or opinion.
As used in this Section, the term "Net Earnings" shall mean the Gross Revenues of the
System after deducting the Maintenance and Operating Expenses of the System, but not
depreciation charges or expenditures which, under generally accepted accounting principles,
should be charged to capital expenditures.
SECTION 20: Refunding Bonds. The City reserves the right to issue refunding bonds to
refund all or any part of the outstanding Bonds Similarly Secured (pursuant to any law then
available) upon such terms and conditions as the City Council of the City may deem to be in the
best interest of the City and its inhabitants, and if less than all such outstanding Bonds Similarly
Secured are refunded,the conditions precedent prescribed(for the issuance of Additional Parity
Bonds) set forth in subparagraph (c) of Section 19 shall be satisfied and the Accountant's
certificate or opinion required in subparagraph (c) shall give effect to the Debt Service of the
proposed refunding bonds (and shall not give effect to the Debt Service of the Bonds Similarly
Secured being refunded following their cancellation or provision being made for their payment).
WYLIE REV 2002_ORDINANCE(3).DOC -22-
SECTION 21: Obligations of Inferior Lien and Pledge. The City hereby reserves the
right to issue obligations payable from and secured by a lien on and pledge of the Net
Revenues of the System, junior and subordinate in rank and dignity to the lien and pledge
securing the payment of the Bonds Similarly Secured, as may be authorized by the laws of the
State of Texas.
SECTION 22: Maintenance and Operation - Insurance. The City covenants that the
System shall be maintained in good condition and operated in an efficient manner and at
reasonable cost. While any Bonds are Outstanding, the City agrees to maintain casualty and
other insurance on the System of a kind and in an amount customarily carried by municipal
corporations engaged in a similar type of business. Nothing in this Ordinance shall be
construed as requiring the City to expend any funds derived from sources other than the
operation of the System, but nothing herein shall be construed as preventing the City from doing
so.
SECTION 23: Sale or Lease of Properties. The City, to the extent and in the manner
authorized by law, may sell or exchange for consideration representing the fair value thereof,as
determined by the City Council of the City, any property not necessary or required in the
efficient operations of the System, or any equipment not necessary or useful in the operations
thereof or which is obsolete, damaged or worn out or otherwise unsuitable for use in the
operation of the System. The proceeds of any sale of properties of the System shall be
deposited in the System Fund.
SECTION 24: Records and Accounts. The City hereby covenants and agrees that while
any of the Bonds remain Outstanding, it will keep and maintain separate and complete records
and accounts pertaining to the operations of the System in which complete and correct entries
shall be made of all transactions relating thereto, as provided by V.T.C.A., Government Code,
Chapter 1502 or other applicable law. The Holders of any Bonds or any duly authorized agent
or agents of such Holders shall have the right at all reasonable times to inspect such records,
accounts and data relating thereto, and to inspect the System and all properties comprising
same. The City further agrees that following the close of each Fiscal Year, it will cause an audit
of such books and accounts to be made by an independent firm of Certified Public Accountants.
Each such audit, in addition to whatever other matters may be thought proper by the
Accountant, shall particularly include the following:
(a) A statement of the income and expenses of the System for such
Fiscal Year.
(b) A balance sheet for the System as of the end of such Fiscal Year.
(c) A statement describing the sources and application of funds of the
System for such Fiscal Year.
(d) The Accountant's comments regarding the manner in which the
City has carried out the requirements of this Ordinance and any other ordinance
authorizing the issuance of Bonds Similarly Secured and his recommendations
for any changes or improvements in the operations, records and accounts of the
System.
WYLIE REV 2002_ORDINANCE(3).DOC -23-
(e) A list of insurance policies in force at the end of the Fiscal Year
covering the properties of the System, setting out as to each policy the amount
thereof,the risk covered,the name of the insurer and the policy's expiration date.
Expenses incurred in making an annual audit of the operations of the System are to be
regarded as Maintenance and Operating Expenses. Copies of each annual audit shall be
furnished to the Executive Director of the Municipal Advisory Council of Texas at his office in
Austin, Texas, and, upon request, to the original purchaser of the Bonds and subsequent
holders or owners of any of said Bonds. The audits herein required shall be made within 120
days following the close of each Fiscal Year insofar as is possible.
SECTION 25: Special Covenants. The City further covenants and agrees by and
through this Ordinance as follows:
(a) It has the lawful power to pledge the Net Revenues of the System
to the payment of the Bonds to the extent provided herein and has lawfully
exercised said power under the Constitution and laws of the State of Texas, and
that the Bonds issued hereunder, together with the Previously Issued Bonds and
Additional Parity Bonds, if issued, shall be ratably secured in such manner that
no one Bond shall have preference over any other Bond of said issues.
(b) The Net Revenues of the System have not been in any manner
pledged or encumbered to the payment of any debt or obligation of the City or
the System, save and except for the Previously Issued Bonds,the Bonds and the
outstanding "City of Wylie, Texas, Tax and Waterworks and Sewer System
Surplus Revenue Refunding Bonds, Series 1993".
(c) No free services of the System shall be allowed, and should the
City or any of its agents or instrumentalities make use of the services and
facilities of the System, payment of the reasonable value thereof shall be made
by the City out of funds from sources other than the revenues and income of the
System.
(d) To the extent that it legally may, the City further covenants and
agrees that, while the Bonds are Outstanding, no franchise shall be granted for
the installation or operation of any waterworks or sewer system other than those
owned by the City, and the operation of any such system by anyone other than
this City is hereby prohibited.
(e) The City will comply with all of the terms and conditions of any and
all franchises, permits and authorizations applicable to or necessary with respect
to the System, and which have been obtained from any governmental agency;
and the City has or will obtain and keep in full force and effect all franchises,
permits, authorizations and other requirements applicable to or necessary with
respect to the acquisition, construction, equipment, operation and maintenance
of the System.
SECTION 26: Remedy in Event of Default. In addition to all rights and remedies
provided by the laws of the State of Texas,the City covenants and agrees particularly that in the
event the City (a) defaults in payments to be made to the Bond Fund or the Reserve Fund as
required by this Ordinance or(b) defaults in the observance or performance of any other of the
WYLIE REV 2002_ORDINANCE(3).DOC _24-
covenants, conditions or obligations set forth in this Ordinance, the Holders of any of the Bonds
shall be entitled to a writ of mandamus issued by a court of proper jurisdiction, compelling and
requiring the City and its officers to observe and perform any covenant, condition or obligation
prescribed in this Ordinance. No delay or omission to exercise any right or power accruing
upon any 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 and power may be exercised
from time to time and as often as may be deemed expedient.
The specific remedy herein provided shall be cumulative of all other existing remedies
and the specification of such remedy shall not be deemed to be exclusive.
SECTION 27: Special Obligations. The Bonds are special obligations of the City
payable from the pledged Net Revenues of the System and the Holders thereof shall never
have the right to demand payment thereof out of funds raised or to be raised by taxation.
SECTION 28: Satisfaction of Obligation of City. If the City shall pay or cause to be paid,
or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on
the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of the
Net Revenues of the System under this Ordinance and all other obligations of the City to the
Holders shall thereupon cease, terminate, and become void and be discharged and satisfied.
Bonds or any principal amount(s)thereof shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when (i) money sufficient to pay in
full such Bonds or the principal amount(s)thereof at maturity or to the redemption date therefor,
together with all interest due thereon, shall have been irrevocably deposited with and held in
trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government
Obligations shall have been irrevocably deposited in trust with the Paying Agent/ Registrar, or
an authorized escrow agent, which Government Obligations have been certified by an
independent accounting firm to mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the principal of and interest on such
Bonds, or the principal amount(s)thereof, on and prior to the Stated Maturity thereof or(if notice
of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable
to the Paying Agent/Registrar have been made) the redemption date thereof. The City
covenants that no deposit of moneys or Government Obligations will be made under this
Section and no use made of any such deposit which would cause the Bonds to be treated as
"arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as
amended, or regulations adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow
agent, and all income from Government Obligations held in trust by the Paying Agent/Registrar
or an authorized escrow agent, pursuant to this Section which is not required for the payment of
the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such
moneys have been so deposited shall be remitted to the City or deposited as directed by the
City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the
principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years
after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were
deposited and are held in trust to pay shall, upon the request of the City, be remitted to the City
against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of
funds from the Paying Agent/Registrar to the City shall be subject to any applicable unclaimed
property laws of the State of Texas.
WYLIE REV 2002_ORDINANCE(3).DOC -25-
SECTION 29: Ordinance a Contract -Amendments. This Ordinance shall constitute a
contract with the Holders from time to time, be binding on the City, and shall not be amended or
repealed by the City so long as any Bond remains Outstanding except as permitted in this
Section. The City, may, without the consent of or notice to any Holders, from time to time and at
any time, amend this Ordinance in any manner not detrimental to the interests of the Holders,
including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In
addition, the City may, with the written consent of Holders holding a majority in aggregate
principal amount of the Bonds Similarly Secured then outstanding affected thereby, amend, add
to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all
Holders of the Bonds then outstanding, no such amendment, addition, or rescission shall
(1) extend the time or times of payment of the principal of, premium, if any, and interest on
the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of
interest thereon, or in any other way modify the terms of payment of the principal of, premium, if
any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or
(3) reduce the aggregate principal amount of Bonds required to be held by Holders for consent
to any such amendment, addition, or rescission.
SECTION 30: Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall
be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a
replacement Bond of like form and tenor, and in the same denomination and bearing a number
not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in
lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the
City and after (i) the filing by the Holder thereof with the Paying Agent/ Registrar of evidence
satisfactory to the Paying Agent/ Registrar of the destruction, loss or theft of such Bond, and of
the authenticity of the ownership thereof and (ii)the furnishing to the Paying Agent/Registrar of
indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar
harmless. All expenses and charges associated with such indemnity and with the preparation,
execution and delivery of a replacement Bond shall be borne by the Holder of the Bond
mutilated, or destroyed, lost or stolen.
Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost,
or stolen Bond shall constitute a replacement of the prior obligation of the City, whether or not
the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Ordinance equally and ratably with all other
Outstanding Bonds.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Bonds.
SECTION 31: Notices to Holders-Waiver. Wherever this Ordinance provides for notice
to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to
the address of each Holder as it appears in the Security Register.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Bonds. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with
WYLIE REV 2002_ORDINANCE(3).DOC -26-
the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.
SECTION 32: Cancellation. All Bonds surrendered for payment, redemption, transfer or
exchange, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if
surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time
deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or
registered and delivered which the City may have acquired in any manner whatsoever, and all
Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled
Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the City.
SECTION 33: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When
used in this Section 33, the following terms have the following meanings:
"Closing Date" means the date on which the Bonds are first authenticated and delivered
to the initial purchasers against payment therefor.
"Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any,
effective on or before the Closing Date.
"Computation Date"has the meaning set forth in Section 1.148-1(b) of the Regulations.
"Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the
Regulations, of the Bonds.
"Investment"has the meaning set forth in Section 1.148-1(b)of the Regulations.
"Nonpurpose Investment"means any investment property, as defined in section 148(b)
of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to
carry out the governmental purposes of the Bonds.
"Rebate Amount"has the meaning set forth in Section 1.148-1(b)of the Regulations.
"Regulations"means any proposed, temporary, or final Income Tax Regulations issued
pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue
Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation
shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation
designed to supplement, amend or replace the specific Regulation referenced.
"Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the
Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations.
(b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed directly or indirectly with Gross
Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any
Bond to become includable in the gross income, as defined in section 61 of the Code, of the
owner thereof for federal income tax purposes. Without limiting the generality of the foregoing,
unless and until the City receives a written opinion of counsel nationally recognized in the field
WYLIE REV 2002_ORDINANCE(3).DOC -27-
of municipal bond law to the effect that failure to comply with such covenant will not adversely
affect the exemption from federal income tax of the interest on any Bond, the City shall comply
with each of the specific covenants in this Section.
(c) No Private Use or Private Payments. Except as permitted by section 141 of the
Code and the Regulations and rulings thereunder, the City shall at all times prior to the last
Stated Maturity of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds, and not use or permit the use of
such Gross Proceeds(including all contractual arrangements with terms different
than those applicable to the general public)or any property acquired,constructed
or improved with such Gross Proceeds in any activity carried on by any person or
entity(including the United States or any agency, department and instrumentality
thereof) other than a state or local government, unless such use is solely as a
member of the general public; and
(2) not directly or indirectly impose or accept any charge or other
payment by any person or entity who is treated as using Gross Proceeds of the
Bonds or any property the acquisition, construction or improvement of which is to
be financed or refinanced directly or indirectly with such Gross Proceeds, other
than taxes of general application within the City or interest earned on
investments acquired with such Gross Proceeds pending application for their
intended purposes.
(d) No Private Loan. Except to the extent permitted by section 141 of the Code and
the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to
make or finance loans to any person or entity other than a state or local government. For
purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a
person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is
sold or leased to such person or entity in a transaction which creates a debt for federal income
tax purposes; (2)capacity in or service from such property is committed to such person or entity
under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or
burdens and benefits of ownership, of such Gross Proceeds or any property acquired,
constructed or improved with such Gross Proceeds are otherwise transferred in a transaction
which is the economic equivalent of a loan.
(e) Not to Invest at Higher Yield. Except to the extent permitted by section 148 of
the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the
final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment
(or use Gross Proceeds to replace money so invested), if as a result of such investment the
Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money
replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds.
(f) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of
the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any
action which would cause the Bonds to be federally guaranteed within the meaning of section
149(b) of the Code and the Regulations and rulings thereunder.
(g) Information Report. The City shall timely file the information required by section
WYLIE REV 2002_ORDINANCE(3).DOC -28-
149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and
in such place as the Secretary may prescribe.
(h) No Rebate Required. The City warrants and represents that it satisfies the
requirements of paragraph (2) and (3) of section 148(f) of the Code with respect to the Bonds
without making the payments for the United States described in such section. Specifically, the
City warrants and represents that
(1) the City is a governmental unit with general taxing powers;
(2) at least 95% of the net proceeds of the Bonds will be used for the
local governmental activities of the City;
(3) the aggregate face amount of all tax-exempt obligations issued or
expected to be issued by the City (and all subordinate entities thereof) in the
calendar year in which the Bonds are issued is not reasonably expected to
exceed $5,000,000.
(j) Elections. The City hereby directs and authorizes the Mayor, City Secretary, City
Manager, Assistant City Manager, and Director of Finance, individually or jointly, to make
elections permitted or required pursuant to the provisions of the Code or the Regulations, as
they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax
Exemption or similar or other appropriate certificate, form or document.
(k) Qualified Tax Exempt Obligations. In accordance with the provisions of
paragraph (3) of subsection (b) of Section 265 of the Code, the City hereby designates the
Bonds to be "qualified tax exempt obligations" in that the Bonds are not"private activity bonds"
as defined in the Code and represents the amount of"tax exempt obligations"to be issued by
the City(including all subordinate entities of the City) for the calendar year 2002 will not exceed
$10,000,000.
SECTION 34: Sale of Bonds. Pursuant to a public sale for the Bonds,the bid submitted
by (herein referred to as the "Purchasers") is declared to be
the best bid received producing the lowest true interest cost rate to the City; such bid is hereby
accepted and incorporated herein by reference as a part of this Ordinance for all purposes and
the sale of the Bonds to said Purchasers at the price of par and accrued interest to the date of
delivery, plus a premium of$ , is hereby approved and confirmed. Delivery of the Bonds
to the Purchasers shall occur as soon as possible upon payment being made therefor in
accordance with the terms of sale.
SECTION 35: Official Statement. The use of the Preliminary Official Statement, dated
September 13, 2002, in the offering and sale of the Bonds is hereby ratified, confirmed and
approved in all respects, and the City Council hereby finds that the information and data
contained in said Preliminary Official Statement pertaining to the City and its financial affairs is
true and correct in all material respects and no material facts have been omitted therefrom
which are necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading. The final Official Statement, which reflects the terms of sale
(together with such changes approved by the Mayor, City Secretary, City Manager of Director of
Finance, one or more of said officials), shall be and is hereby in all respects approved and the
Purchasers are hereby authorized to use and distribute said final Official Statement, dated
September 24, 2002, in the reoffering, sale and delivery of the Bonds to the public.
WYLIE REV 2002_ORDINANCE(3).DOC -29-
SECTION 36: Control and Custody of Bonds. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas, including the printing and supply of
definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the
approval thereof by the Attorney General, the registration thereof by the Comptroller of Public
Accounts and the delivery thereof to the Purchasers.
Furthermore, the Mayor, City Secretary, City Manager and Director of Finance, any one
or more of said officials, are hereby authorized and directed to furnish and execute such
documents and certifications relating to the City and the issuance of the Bonds, including
certifications as to facts, estimates, circumstances and reasonable expectations pertaining to
the use, expenditure and investment of the proceeds of the Bonds, as may be necessary for the
approval of the Attorney General, their registration by the Comptroller of Public Accounts and
the delivery of the Bonds to the Purchasers, and,together with the City's financial advisor, bond
counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of
the Initial Bond(s)to the Purchasers and the initial exchange thereof for definitive Bonds.
SECTION 37: Proceeds of Sale. The proceeds of sale of the Bonds, excluding the
accrued interest received from the purchasers, shall be deposited in a construction fund
maintained at the City's depository bank. Pending expenditure for authorized projects and
purposes, such proceeds of sale may be invested in authorized investments in accordance with
the provisions of V.T.C.A., Government Code, Chapter 2256, including guaranteed investment
contracts permitted by V.T.C.A., Section 2256.015 et seq., and the City's investment policies
and guidelines, and any investment earnings realized shall be expended for such authorized
projects and purposes or deposited in the Interest and Sinking Fund as shall be determined by
the City Council. Accrued interest and premium, if any, received from the sale of the Bonds and
any excess bond proceeds, including investment earnings, remaining after completion of all
authorized projects or purposes shall be deposited to the credit of the Bond Fund.
SECTION 38: Legal Opinion. The obligation of the Purchasers to accept delivery of the
Bonds is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys,
Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered
as of the date of delivery and payment for such Bonds. A true and correct reproduction of said
opinion is hereby authorized to be printed on the definitive Bonds or an executed counterpart
thereof shall accompany the global Bonds deposited with the Depository Trust Company.
SECTION 39: CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or effect as regards the legality
thereof and neither the City nor attorneys approving said Bonds as to legality are to be held
responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds.
SECTION 40: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied,
is intended or shall be construed to confer upon any person other than the City, the Paying
Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by
reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, the Paying
Agent/Registrar and the Holders.
SECTION 41: Inconsistent Provisions. All ordinances, orders or resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby
WYLIE REV 2002_ORDINANCE(3).DOC -30-
repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 42: Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 43: Severability. If any provision of this Ordinance or the application thereof
to any circumstance shall be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless be valid, and the Council hereby
declares that this Ordinance would have been enacted without such invalid provision.
SECTION 44: Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 45: Continuing Disclosure Undertaking. (a) Definitions. As used in this
Section, the following terms have the meanings ascribed to such terms below:
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR' means each person whom the SEC or its staff has determined to be a
nationally recognized municipal securities information repository within the meaning of the Rule
from time to time.
"Rule" means SEC Rule 15c2-12, as amended from time to time.
"SEC" means the United States Securities and Exchange Commission.
"SID" means any person designated by the State of Texas or an authorized department,
officer, or agency thereof as, and determined by the SEC or its staff to be, a state information
depository within the meaning of the Rule from time to time.
(b) Annual Reports. The City shall provide annually to each NRMSIR and any SID,
within six months after the end of each fiscal year (beginning with the fiscal year ending
September 30, 2002) financial information and operating data with respect to the City of the
general type included in the final Official Statement approved by Section 35 of this Ordinance,
being the information described in Exhibit B hereto. Financial statements 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 audited financial statements are not
available at the time the financial information and operating data must be provided,then the City
shall provide unaudited financial statements for the applicable fiscal year to each NRMSIR and
any SID with the financial information and operating data and will file the annual audit report
when and if the same 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
WYLIE REV 2002_ORDINANCE(3).DOC -31-
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
MSRB)that theretofore has been provided to each NRMSIR and any SID or filed with the SEC.
(c) 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 Bonds, if such
event is material within the meaning of the federal securities laws:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
7. Modifications to rights of holders of the Bonds;
8. Bond calls;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Bonds; and
11. 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
subsection (b) of this Section by the time required by such Section.
(d) Limitations, Disclaimers, and Amendments. The City shall be obligated to
observe and perform the covenants specified in this Section while, but only while, the City
remains an "obligated person"with respect to the Bonds within the meaning of the Rule, except
that the City in any event will give the notice required by subsection (c) hereof of any Bond calls
and defeasance that cause the City to be no longer such an "obligated person."
The provisions of this Section are for the sole benefit of the Holders 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 HOLDER OR
BENEFICIAL OWNER OF ANY BOND 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
constitute a breach of or default under this Ordinance for purposes of any other provision of this
WYLIE REV 2002_ORDINANCE(3).DOC -32-
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 by the City from time to time to adapt to
changed circumstances resulting 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, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to purchase or
sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account
any amendments or interpretations of the Rule to the date of such amendment, as well as such
changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal
amount(or any greater amount required by any other provision of this Ordinance that authorizes
such an amendment)of the outstanding Bonds consent to such amendment or(b)a Person that
is unaffiliated with the City (such as nationally recognized bond counsel) determines that such
amendment will not materially impair the interests of the Holders and beneficial owners of the
Bonds. The provisions of this Section may also be amended from time to time or repealed by
the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final
jurisdiction determines that such provisions are invalid, but only if and to the extent that
reservation of the City's right to do so would not prevent underwriters of the initial public offering
of the Bonds from lawf8uilly purchasing or selling Bonds in such offering. If the City so amends
the provisions of this Section, it shall included with any amended financial information or
operating data filed with each NRMSIR and SID pursuant to subsection (b) of this Section an
explanation, in narrative form, of the reasons for the amendment and of the impact of any
change in the type of financial information or operating data so provided.
SECTION 46: Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as
amended.
WYLIE REV 2002_ORDINANCE(3).DOC -33-
SECTION 47: Effective Date. This Ordinance shall be in force and effect from and after
its passage on the date shown below and it is so ordained.
PASSED AND ADOPTED, this September 24, 2002.
CITY OF WYLIE, TEXAS
ATTEST:
City Secretary
(City Seal)
WYLIE REV 2002_ORDINANCE(3).DOC -34-
Exhibit B
to
Ordinance
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 45 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(an included in the Appendix or under
the headings of the Official Statement referred to) below:
1. The financial statements of the City appended to the Official Statement as
Appendix B, but for the most recently concluded fiscal year.
2. The information contained in Tables 1 through 11 of the Official
Statement.
Accounting Principles
The accounting principles referred to in such Section are the generally accepted
accounting principles as applicable to governmental units as prescribed by The Government
Accounting Standards Board.
WYLIE REV 2002_ORDINANCE(3).DOC Exhibit B to Ordinance
WYLIE CITY COUNCIL
AGENDA ITEM NO. 5
September 24, 2002 -'
Issue
Consider and act upon approval of an Ordinance authorizing the issuance of $250,000 in Tax Notes,
Series 2002, dated September 15, 2002 and all other matters related thereto.
Background
The City is proposing to issue $250,000 in Tax Notes in order to fund the purchase of vehicles and
equipment and to pay costs associated with the issuance of the Notes. The bids for the Tax Notes will
be publicly opened and read at the offices of the Financial Advisor, at 11:00 a.m. CDT, Tuesday,
September 24, 2002. The tax notes are being sold in one block on an "All or None" basis. The sale of
the tax notes will be awarded to the bidder making a bid that conforms to the Bidding Instructions and
which produces the lowest True Interest Cost rate to the City. The City's Financial Advisors, First
Southwest Company, will present the results of the bidding at the Council meeting on September 24,
2002.
Other Considerations
The Council can take action to issue the Tax Notes or to reject the bids at this meeting. If the bids are
awarded, the Council will need to adopt the Ordinance authorizing the tax notes. A Good Faith Deposit
of$5,000 will be required from the successful bidder.
Financial Consideration
The debt service requirements for the Tax Note will be funded from property taxes. The average annual
debt service payment over the five-year amortization period of the $250,000 is estimated to be $54,990.
Board/Commission Recommendations
N/A
Staff Recommendations
Staff recommends that the City Council adopt the proposed ordinance authorizing the issue of$250,000
in Tax Notes, Series 2002, per the recommendation of the First Southwest Company.
Attachments
Ordinance
Paying Agent/Registrar Agreement
Prepared by Revi w d by inance City M r Approval
ORDINANCE NO.
AN ORDINANCE authorizing the issuance of"CITY OF WYLIE, TEXAS,
TAX NOTES, SERIES 2002"; specifying the terms and features of said
notes; levying a continuing direct annual ad valorem tax for the payment
of said notes; and resolving other matters incident and related to the
issuance, sale, payment and delivery of said notes, including the
approval and execution of a Paying Agent/Registrar Agreement and the
approval and distribution of an Official Statement pertaining thereto; and
providing an effective date.
WHEREAS, pursuant to V.T.C.A., Government Code, Chapter 1431 (hereinafter called
the "Act"), the City Council is authorized and empowered to issue anticipation notes to pay
contractual obligations to be incurred (i) for the construction of any public work and (ii) for the
purchase of materials, supplies, equipment, machinery, buildings, lands and rights-of-way for
the City's authorized needs and purposes; and
WHEREAS, in accordance with the provisions of the Act, the City Council hereby finds
and determines that anticipation notes should be issued and sold at this time to finance the
costs of paying contractual obligations to be incurred for(i)the purchase of materials, supplies
and equipment and machinery for various city departments including police, fire, public works,
finance, utility billing and personnel, and (ii) professional services rendered in relation to the
financing thereof; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS:
SECTION 1: Authorization - Designation- Principal Amount-Purpose. Notes of the
City shall be and are hereby authorized to be issued in the aggregate principal amount of
$250,000, to be designated and bear the title "CITY OF WYLIE, TEXAS, TAX NOTES,
SERIES 2002" (hereinafter referred to as the "Notes"), for the purpose of paying contractual
obligations to be incurred for(i) the purchase of materials, supplies, equipment and machinery
for various city departments, including the fire, parks, street and recreation departments, and
(ii) professional services rendered in relation to the financing thereof, in conformity with the
Constitution and laws of the State of Texas, including V.T.C.A., Government Code, Chapter
1431.
SECTION 2: Fully Registered Obligations- Note Date-Authorized Denominations -
Stated Maturities-Interest Rates. The Notes shall be issued as fully registered obligations
only, shall be dated September 15, 2002 (the "Note Date"), shall be in denominations of
$5,000 or any integral multiple thereof, and shall become due and payable on February 15 in
each of the years and in principal amounts (the "Stated Maturities") and bear interest at the
per annum rate(s) in accordance with the following schedule:
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Year of Principal Interest
Stated Maturity Amount Rate
2003 $45,000
2004 50,000
2005 50,000
2006 50,000
2007 55,000
The Notes shall bear interest on the unpaid principal amounts from the Note Date at
the rates per annum shown above in this Section (calculated on the basis of a 360-day year of
twelve 30-day months), and such interest shall be payable on February 15 and August 15 of
each year, commencing February 15, 2003.
SECTION 3: Terms of Payment-Paying Agent/Registrar. The principal of, premium, if
any, and the interest on the Notes, due and payable by reason of maturity or otherwise, shall
be payable only to the registered owners or holders of the Notes (hereinafter called the
"Holders") appearing on the registration and transfer books maintained by the Paying
Agent/Registrar and the payment thereof shall be in any coin or currency of the United States
of America, which at the time of payment is legal tender for the payment of public and private
debts, and shall be without exchange or collection charges to the Holders.
The selection and appointment of JPMorgan Chase Bank, Dallas, Texas, to serve as
Paying Agent/Registrar for the Notes is hereby approved and confirmed. Books and records
relating to the registration, payment, transfer and exchange of the Notes (the "Security
Register") shall at all times be kept and maintained on behalf of the City by the Paying
Agent/Registrar, as provided herein and in accordance with the terms and provisions of a
"Paying Agent/ Registrar Agreement", substantially in the form attached hereto as Exhibit A,
and such reasonable rules and regulations as the Paying Agent/Registrar and the City may
prescribe. The Mayor and City Secretary are authorized to execute and deliver such
Agreement in connection with the delivery of the Notes. The City covenants to maintain and
provide a Paying Agent/Registrar at all times until the Notes are paid and discharged, and any
successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other
entity qualified and authorized to serve in such capacity and perform the duties and services of
Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Notes, the
City agrees to promptly cause a written notice thereof to be sent to each Holder by United
States Mail, first class postage prepaid, which notice shall also give the address of the new
Paying Agent/Registrar.
Principal of and premium, if any, on the Notes shall be payable at the Stated Maturity,
only upon presentation and surrender of the Notes to the Paying Agent/Registrar at its
designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on
the Notes shall be paid to the Holders whose name appears in the Security Register at the
close of business on the Record Date (the last business day of the month next preceding the
interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent
United States Mail, first class postage prepaid, to the address of the Holder recorded in the
Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar,
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requested by, and at the risk and expense of, the Holder. If the date for the payment of the
principal of or interest on the Notes shall be a Saturday, Sunday, a legal holiday, or a day
when banking institutions in the City where the Paying Agent/Registrar is located are
authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking
institutions are authorized to close; and payment on such date shall have the same force and
effect as if made on the original date payment was due.
In the event of a nonpayment of interest on a scheduled payment date, and for thirty
(30) days thereafter, a new record date for such interest payment (a "Special Record Date")
will be established by the Paying Agent/ Registrar, if and when funds for the payment of such
interest have been received from the City. Notice of the Special Record Date and of the
scheduled payment date of the past due interest (which shall be 15 days after the Special
Record Date) shall be sent at least five (5) business days prior to the Special Record Date by
United States Mail, first class postage prepaid,to the address of each Holder appearing on the
Security Register at the close of business on the last business day next preceding the date of
mailing of such notice.
SECTION 4: Non-Redeemable. The Notes shall not be subject to redemption prior to
maturity.
SECTION 5: Registration - Transfer - Exchange of Notes-Predecessor Notes. The
Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name
and address of each and every owner of the Notes issued under and pursuant to the
provisions of this Ordinance, or if appropriate, the nominee thereof. Any Note may be
transferred or exchanged for Notes of other authorized denominations by the Holder, in person
or by his duly authorized agent, upon surrender of such Note to the Paying Agent/Registrar for
cancellation, accompanied by a written instrument of transfer or request for exchange duly
executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying
Agent/Registrar.
Upon surrender of any Note (other than the Initial Notes authorized in Section 8
hereof) for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar,
the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee
or transferees, one or more new Notes of authorized denominations and having the same
Stated Maturity and of a like aggregate principal amount as the Note or Notes surrendered for
transfer.
At the option of the Holder, Notes (other than the Initial Notes authorized in Section 8
hereof) may be exchanged for other Notes of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as
the Notes surrendered for exchange, upon surrender of the Notes to be exchanged at the
Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Notes are
surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Notes to
the Holder requesting the exchange.
All Notes issued in any transfer or exchange of Notes shall be delivered to the Holders
at the Designated Payment/Transfer Office of the Paying Agent/Registrar or sent by United
States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery
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thereof, the same shall be the valid obligations of the City, evidencing the same obligation to
pay, and entitled to the same benefits under this Ordinance, as the Notes surrendered in such
transfer or exchange.
All transfers or exchanges of Notes pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided,and except that
the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or
exchange of any tax or other governmental charges required to be paid with respect to such
transfer or exchange.
Notes canceled by reason of an exchange or transfer pursuant to the provisions hereof
are hereby defined to be"Predecessor Notes," evidencing all or a portion, as the case may be,
of the same obligation to pay evidenced by the new Note or Notes registered and delivered in
the exchange or transfer therefor. Additionally, the term "Predecessor Notes" shall include
any mutilated, lost, destroyed, or stolen Note for which a replacement Note has been issued,
registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and
such new replacement Note shall be deemed to evidence the same obligation as the
mutilated, lost, destroyed, or stolen Note. ,
SECTION 6: Book-Entry Only Transfers and Transactions. Notwithstanding the
provisions contained in Sections 3 and 5 hereof relating to the payment, and
transfer/exchange of the Notes, the City hereby approves and authorizes the use of
"Book-Entry Only" securities clearance, settlement and transfer system provided by The
Depository Trust Company (DTC), a limited purpose trust company organized under the laws
of the State of New York, in accordance with the requirements and procedures identified in the
Blanket Issuer Letter of Representations, by and between the City and DTC (the"Depository
Agreement").
Pursuant to the Depository Agreement and the rules of DTC, the Notes shall be
deposited with DTC who shall hold said Notes for its participants (the "DTC Participants").
While the Notes are held by DTC under the Depository Agreement, the Holder of the Notes on
the Security Register for all purposes, including payment and notices, shall be Cede&Co., as
nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each
Note(the"Beneficial Owners") being recorded in the records of DTC and DTC Participants.
In the event DTC determines to discontinue serving as securities depository for the
Notes or otherwise ceases to provide book-entry clearance and settlement of securities
transactions in general or the City determines that DTC is incapable of properly discharging its
duties as securities depository for the Notes, the City covenants and agrees with the Holders
of the Notes to cause Notes to be printed in definitive form and provide for the Note certificates
to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be.
Thereafter, the Notes in definitive form shall be assigned, transferred and exchanged on the
Security Register maintained by the Paying Agent/Registrar and payment of such Notes shall
be made in accordance with the provisions of Sections 3 and 5 hereof.
SECTION 7: Execution - Registration. The Notes shall be executed on behalf of the
City by the Mayor under its seal reproduced or impressed thereon and countersigned by the
City Secretary. The signature of said officers on the Notes may be manual or facsimile. Notes
bearing the manual or facsimile signatures of individuals who are or were the proper officers of
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the City on the Note Date shall be deemed to be duly executed on behalf of the City,
notwithstanding that such individuals or either of them shall cease to hold such offices at the
time of delivery of the Notes to the initial purchaser(s) and with respect to Notes delivered in
subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government
Code, Chapter 1201.
No Note shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Note either a certificate of
registration substantially in the form provided in Section 9C, manually executed by the
Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a
certificate of registration substantially in the form provided in Section 9D, manually executed
by an authorized officer, employee or representative of the Paying Agent/Registrar, and either
such certificate duly signed upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly certified, registered, and delivered.
SECTION 8: Initial Note. The Notes herein authorized shall be initially issued either
(i)as a single fully registered note in the total principal amount of $250,000 with principal
installments to become due and payable as provided in Section 2 hereof and numbered T-1,
or (ii) as multiple fully registered Notes, being one note for each year of maturity in the
applicable principal amount and denomination and to be numbered consecutively from T-1 and
upward (hereinafter called the "Initial Note(s)") and, in either case, the Initial Note shall be
registered in the name of the initial purchaser(s) or the designee thereof. The Initial Note(s)
shall be the Notes submitted to the Office of the Attorney General of the State of Texas for
approval, certified and registered by the Office of the Comptroller of Public Accounts of the
State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial
Note(s), the Paying Agent/Registrar, pursuant to written instructions from the initial
purchaser(s), or the designee thereof, shall cancel the Initial Note(s) delivered hereunder and
exchange therefor definitive Notes of authorized denominations, Stated Maturities, principal
amounts and bearing applicable interest rates for transfer and delivery to the Holders named
at the addresses identified therefor; all pursuant to and in accordance with such written
instructions from the initial purchaser(s), or the designee thereof, and such other information
and documentation as the Paying Agent/Registrar may reasonably require.
SECTION 9: Forms. A. Forms Generally. The Notes, the Registration Certificate of
the Comptroller of Public Accounts of the State of Texas,the Registration Certificate of Paying
Agent/Registrar, and the form of Assignment to be printed on each of the Notes, shall be
substantially in the forms set forth in this Section with such appropriate insertions, omissions,
substitutions, and other variations as are permitted or required by this Ordinance and may
have such letters, numbers, or other marks of identification (including identifying numbers and
letters of the Committee on Uniform Securities Identification Procedures of the American
Bankers Association)and such legends and endorsements(including insurance legends in the
event the Notes, or any maturities thereof, are purchased with insurance and any reproduction
of an opinion of counsel)thereon as may, consistently herewith, be established by the City or
determined by the officers executing such Notes as evidenced by their execution. Any portion
of the text of any Notes may be set forth on the reverse thereof,with an appropriate reference
thereto on the face of the Note.
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The definitive Notes and the Initial Note(s) shall be printed, lithographed, or engraved,
typewritten, photocopied or otherwise reproduced in any other similar manner, all as
determined by the officers executing such Notes as evidenced by their execution thereof.
B. Form of Note.
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF WYLIE, TEXAS
TAX NOTE, SERIES 2002
Note Date: Interest Rate: Stated Maturity: CUSIP NO:
September 15, 2002
Registered Owner:
Principal Amount: DOLLARS
The City of Wylie (hereinafter referred to as the "City"), a body corporate and political
subdivision in the County of Collin, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the order of the Registered Owner named above,or
the registered assigns thereof, on the Stated Maturity date specified above, without right of
prior redemption, the Principal Amount stated above and to pay interest on the unpaid
principal amount hereof from the Note Date at the per annum rate of interest specified above
computed on the basis of a 360-day year of twelve 30-day months; such interest being
payable on February 15 and August 15 in each year, commencing February 15, 2003.
Principal of this Note is payable at its Stated Maturity to the registered owner hereof, upon
presentation and surrender, at the Designated Payment/Transfer Office of the Paying
Agent/Registrar executing the registration certificate appearing hereon, or its successor.
Interest is payable to the registered owner of this Note(or one or more Predecessor Notes, as
defined in the Ordinance hereinafter referenced) whose name appears on the "Security
Register' maintained by the Paying Agent/Registrar at the close of business on the "Record
Date", which is the last business day of the month next preceding each interest payment
date, and interest shall be paid by the Paying Agent/Registrar by check sent United States
Mail, first class postage prepaid, to the address of the registered owner recorded in the
Security Register or by such other method, All payments of principal of, premium, if any, and
interest on this Note shall be without exchange or collection charges to the owner hereof and
in any coin or currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts.
This Note is one of the series specified in its title issued in the aggregate principal
amount of$250,000 (herein referred to as the "Notes") for the purpose of paying contractual
obligations to be incurred for(i) the purchase of materials, supplies, equipment and machinery
for various city departments, including the fire, parks, street and recreation departments, and
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(ii) professional services rendered in relation to the financing thereof, under and in strict
conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance
adopted by the City Council of the City(herein referred to as the"Ordinance").
The Notes are payable from the proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property in the City. Reference is hereby made
to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the
Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Note
by the acceptance hereof hereby assents, for definitions of terms; the description of and the
nature and extent of the tax levied for the payment of the Notes; the terms and conditions
relating to the transfer or exchange of this Note; the conditions upon which the Ordinance may
be amended or supplemented with or without the consent of the Holders; the rights, duties,
and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon
which this Note may be discharged at or prior to its maturity, and deemed to be no longer
Outstanding thereunder; and for other terms and provisions contained therein. Capitalized
terms used herein have the meanings assigned in the Ordinance.
This Note, subject to certain limitations contained in the Ordinance, may be transferred
on the Security Register only upon its presentation and surrender at the Designated
Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized
agent. When a transfer on the Security Register occurs, one or more new fully registered
Notes of the same Stated Maturity, of authorized denominations, bearing the same rate of
interest, and of the same aggregate principal amount will be issued by the Paying
Agent/Registrar to the designated transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, shall treat the
registered owner whose name appears on the Security Register(i) on the Record Date as the
owner entitled to payment of interest hereon, (ii) on the date of surrender of this Note as the
owner entitled to payment of principal hereof at its Stated Maturity and (iii) on any other date
as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or
any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of
interest on a scheduled payment date and for thirty(30)days thereafter, a new record date for
such interest payment (a "Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the scheduled payment date of the past
due interest (which shall be 15 days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special Record Date by United States Mail, first class postage
prepaid, to the address of each Holder appearing on the Security Register at the close of
business on the last business day next preceding the date of mailing of such notice.
It is hereby certified, recited, represented and declared that the City is a body corporate
and political subdivision duly organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance of the Notes is duly authorized
by law; that all acts, conditions and things required to exist and be done precedent to and in
the issuance of the Notes to render the same lawful and valid obligations of the City have been
properly done, have happened and have been performed in regular and due time, form and
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manner as required by the Constitution and laws of the State of Texas, and the Ordinance;
that the Notes do not exceed any Constitutional or statutory limitation; and that due provision
has been made for the payment of the principal of and interest on the Notes by the levy of a
tax as aforestated. In case any provision in this Note 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. The terms and provisions of this Note and the Ordinance shall
be construed in accordance with and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has caused this Note to be duly
executed under the official seal of the City as of the Note Date.
CITY OF WYLIE, TEXAS
Mayor
ATTEST:
City Secretary
(Seal)
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Note only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS ( REGISTER NO.
THE STATE OF TEXAS
I HEREBY CERTIFY that this Note has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the
Comptroller of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
(SEAL)
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D. Form of Certificate of Paying Agent/Registrar to appear on Definitive Notes only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Note has been duly issued and registered under the provisions of the within-
mentioned Ordinance; the note or notes of the above entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered
by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar.
The designated offices of the Paying Agent/Registrar located in Dallas, Texas, is the
"Designated Payment/Transfer Office" for this Note.
Registration Date: JPMORGAN CHASE BANK, Dallas, Texas,
as Paying Agent/Registrar
BY:
Authorized Signature
*NOTE TO PRINTER:Do Not Print on Definitive Notes
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers
unto (Print or typewrite name, address, and zip code of transferee:)
(Social Security or other identifying number:)
the within Note and all rights thereunder, and hereby
irrevocably constitutes and appoints attorney to transfer the
within Note on the books kept for registration thereof, with full power of substitution in the
premises.
DATED:
NOTICE: The signature on this
Signature guaranteed: assignment must correspond with the
name of the registered owner as it
appears on the face of the within Note in
every particular.
F. The Initial Note(s) shall be in the form set forth in paragraph B of this Section,
except that the form of a single fully registered Initial Note shall be modified as follows:
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(I) immediately under the name of the headings"Interest Rate "and "Stated Maturity
" shall both be omitted;
(ii) paragraph one shall read as follows:
Registered Owner:
Principal Amount: Dollars
The City of Wylie(hereinafter referred to as the"City"), a body corporate and municipal
corporation in the County of Collin, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the order of the Registered Owner named above, or
the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in
each of the years and in principal installments in accordance with the following
schedule:
YEAR OF PRINCIPAL INTEREST
MATURITY INSTALLMENTS RATE
(Information to be inserted from schedule in Section 2 hereof).
(or so much thereof as shall not have been prepaid prior to maturity)and to pay interest on the
unpaid principal amounts hereof from the Note Date at the per annum rate(s) of interest
specified above computed on the basis of a 360-day year of twelve 30-day months; such
interest being payable on February 15 and August 15 of each year, commencing February 15,
2003. Principal installments of this Certificate are payable at its Stated Maturity or on a
prepayment date to the registered owner hereof by JPMorgan Chase Bank, Dallas, Texas(the
"Paying Agent/Registrar"), upon presentation and surrender, at its designated offices in Dallas,
Texas(the"Designated Payment/Transfer Office"). Interest is payable to the registered owner
of this Certificate whose name appears on the "Security Register" maintained by the Paying
Agent/Registrar at the close of business on the"Record Date", which is the last business day
of the month next preceding each interest payment date hereof and interest shall be paid by
the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to
the address of the registered owner recorded in the Security Register or by such other
method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense
of, the registered owner. All payments of principal of, premium, if any, and interest on this
Note shall be without exchange or collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of payment is legal tender for the
payment of public and private debts.
SECTION 10: Levy of Taxes. To provide for the payment of the "Debt Service
Requirements" of the Notes, being (i) the interest on the Notes and (ii)a sinking fund for their
redemption at maturity or a sinking fund of 2% (whichever amount is the greater), there is
hereby levied, and there shall be annually assessed and collected in due time, form, and
manner, a tax on all taxable property in the City, within the limitations prescribed by law, and
such tax hereby levied on each one hundred dollars' valuation of taxable property in the City
for the Debt Service Requirements of the Notes shall be at a rate from year to year as will be
ample and sufficient to provide funds each year to pay the principal of and interest on said
Notes while Outstanding; full allowance being made for delinquencies and costs of collection;
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separate books and records relating to the receipt and disbursement of taxes levied,assessed
and collected for and on account of the Notes shall be kept and maintained by the City at all
times while the Notes are Outstanding, and the taxes collected for the payment of the Debt
Service Requirements on the Notes shall be deposited to the credit of a "Special 2002 Note
Account" (the"Interest and Sinking Fund")maintained on the records of the City and deposited
in a special fund maintained at an official depository of the City's funds; and such tax hereby
levied, and to be assessed and collected annually, is hereby pledged to the payment of the
Notes.
Proper officers of the City are hereby authorized and directed to cause to be
transferred to the Paying Agent/Registrar for the Notes, from funds on deposit in the Interest
and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of
interest and principal of the Notes as the same accrues or matures; such transfers of funds to
be made in such manner as will cause collected funds to be deposited with the Paying
Agent/Registrar on or before each principal and interest payment date for the Notes.
SECTION 11: Mutilated-Destroyed-Lost and Stolen Notes. In case any Note shall be
mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a
replacement Note of like form and tenor, and in the same denomination and bearing a number
not contemporaneously outstanding, in exchange and substitution for such mutilated Note, or
in lieu of and in substitution for such destroyed, lost or stolen Note, only upon the approval of
the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of
evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such
Note, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying
Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying
Agent/Registrar harmless. All expenses and charges associated with such indemnity and with
the preparation, execution and delivery of a replacement Note shall be borne by the Holder of
the Note mutilated, or destroyed, lost or stolen.
Every replacement Note issued pursuant to this Section shall be a valid and binding
obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all
other Outstanding Notes; notwithstanding the enforceability of payment by anyone of the
destroyed, lost, or stolen Notes.
The provisions of this Section are exclusive and shall preclude (to the extent lawful)all
other rights and remedies with respect to the replacement and payment of mutilated,
destroyed, lost or stolen Notes.
SECTION 12: Satisfaction of Obligation of City. If the City shall pay or cause to be
paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and
interest on the Notes, at the times and in the manner stipulated in this Ordinance, then the
pledge of taxes levied under this Ordinance and all covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and
satisfied.
Notes or any principal amount(s)thereof shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when (i) money sufficient to pay
in full such Notes or the principal amount(s) thereof at maturity, together with all interest due
thereon, shall have been irrevocably deposited with and held in trust by the Paying
WYLIE TAX NOTES 11
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Agent/Registrar, or an authorized escrow agent, or(ii) Government Securities shall have been
irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent,
which Government Securities have been certified by an independent accounting firm to mature
as to principal and interest in such amounts and at such times as will insure the availability,
without reinvestment, of sufficient money, together with any moneys deposited therewith, if
any, to pay when due the principal of and interest on such Notes, or the principal amount(s)
thereof, on and prior to the Stated Maturity thereof. The City covenants that no deposit of
moneys or Government Securities will be made under this Section and no use made of any
such deposit which would cause the Notes to be treated as "arbitrage bonds" within the
meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations
adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow
agent, and all income from Government Securities held in trust by the Paying Agent/Registrar,
or an authorized escrow agent, pursuant to this Section which is not required for the payment
of the Notes, or any principal amount(s)thereof, or interest thereon with respect to which such
moneys have been so deposited shall be remitted to the City or deposited as directed by the
City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the
principal of and interest on the Notes and remaining unclaimed for a period of three (3)years
after the Stated Maturity of the Notes such moneys were deposited and are held in trust to pay
shall upon the request of the City be remitted to the City against a written receipt therefor.
Notwithstanding the above and foregoing, any remittance of funds from the Paying
Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the
State of Texas.
The term "Government Securities", as used herein, means (i) direct noncallable
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, (ii) noncallable
obligations of an agency or instrumentality of the United States, including obligations
unconditionally guaranteed or insured by the agency or instrumentality and on the date of their
acquisition or purchase by the City are rated as to investment quality by a nationally
recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable
obligations of a state or an agency or a county, municipality, or other political subdivision of a
state that have been refunded and on the date of their acquisition or purchase by the City, are
rated as to investment quality by a nationally recognized investment rating firm not less than
AAA or its equivalent.
SECTION 13: Ordinance a Contract- Amendments - Outstanding Notes. This
Ordinance shall constitute a contract with the Holders from time to time, be binding on the City,
and shall not be amended or repealed by the City so long as any Note remains Outstanding
except as permitted in this Section. The City may, without the consent of or notice to any
Holders, from time to time and at any time, amend this Ordinance in any manner not
detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency,
or formal defect or omission herein. In addition, the City may, with the consent of Holders
holding a majority in aggregate principal amount of the Notes then Outstanding affected
thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that,
without the consent of all Holders of Outstanding Notes, no such amendment, addition, or
rescission shall (1) extend the time or times of payment of the principal of, premium, if any,
WYLIE TAX NOTES 12
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and interest on the Notes, reduce the principal amount thereof, or the rate of interest thereon,
or in any other way modify the terms of payment of the principal of, premium, if any, or interest
on the Notes, (2) give any preference to any Note over any other Note, or (3) reduce the
aggregate principal amount of Notes required to be held by Holders for consent to any such
amendment, addition, or rescission.
The term "Outstanding" when used in this Ordinance with respect to Notes means, as
of the date of determination, all Notes theretofore issued and delivered under this Ordinance,
except:
(1) those Notes cancelled by the Paying
Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation;
(2) those Notes deemed to be duly paid by the City in
accordance with the provisions of Section 12 hereof; and
(3) those mutilated, destroyed, lost, or stolen Notes
which have been replaced with Notes registered and delivered in lieu thereof as
provided in Section 11 hereof.
SECTION 14: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used
in this Section 14, the following terms have the following meanings:
"Closing Date" means the date on which the Notes are first authenticated and delivered
to the initial purchasers against payment therefor.
"Code" means the Internal Revenue Code of 1986, as amended by all legislation, if
any, effective on or before the Closing Date.
"Computation Date" has the meaning set forth in Section 1.148-1(b)of the Regulations.
"Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the
Regulations, of the Notes.
"Investment" has the meaning set forth in Section 1.148-1(b)of the Regulations.
"Nonpurpose Investment" means any investment property, as defined in section 148(b)
of the Code, in which Gross Proceeds of the Notes are invested and which is not acquired to
carry out the governmental purposes of the Notes.
"Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations.
"Regulations" means any proposed, temporary, or final Income Tax Regulations issued
pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue
Code of 1954, which are applicable to the Notes. Any reference to any specific Regulation
shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation
designed to supplement, amend or replace the specific Regulation referenced.
WYLIE TAX NOTES 13
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"Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the
Regulations and (2) the Notes has the meaning set forth in Section 1.148-4 of the
Regulations.
(a) Not to Cause Interest to Become Taxable. The City shall not use,
permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the
acquisition, construction or improvement of which is to be financed directly or indirectly with
Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest
on any Note to become includable in the gross income, as defined in section 61 of the Code,
of the owner thereof for federal income tax purposes. Without limiting the generality of the
foregoing, unless and until the City receives a written opinion of counsel nationally recognized
in the field of municipal bond law to the effect that failure to comply with such covenant will not
adversely affect the exemption from federal income tax of the interest on any Note, the City
shall comply with each of the specific covenants in this Section.
(b) No Private Use or Private Payments. Except as permitted by section
141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to
the last Stated Maturity of Notes:
(1) exclusively own, operate and possess all property
the acquisition, construction or improvement of which is to be financed or
refinanced directly or indirectly with Gross Proceeds of the Notes, and not use
or permit the use of such Gross Proceeds (including all contractual
arrangements with terms different than those applicable to the general public)
or any property acquired, constructed or improved with such Gross Proceeds in
any activity carried on by any person or entity (including the United States or
any agency, department and instrumentality thereof) other than a state or local
government, unless such use is solely as a member of the general public; and
(2) not directly or indirectly impose or accept any
charge or other payment by any person or entity who is treated as using Gross
Proceeds of the Notes or any property the acquisition, construction or
improvement of which is to be financed or refinanced directly or indirectly with
such Gross Proceeds, other than taxes of general application within the City or
interest earned on investments acquired with such Gross Proceeds pending
application for their intended purposes.
(c) No Private Loan. Except to the extent permitted by section 141 of the
Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of
the Notes to make or finance loans to any person or entity other than a state or local
government. For purposes of the foregoing covenant, such Gross Proceeds are considered to
be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such
Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt
for federal income tax purposes; (2) capacity in or service from such property is committed to
such person or entity under a take-or-pay, output or similar contract or arrangement; or (3)
indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any
property acquired, constructed or improved with such Gross Proceeds are otherwise
transferred in a transaction which is the economic equivalent of a loan.
WYLIE TAX NOTES 14
2002 ORDI NAN CE.DOC
(d) Not to Invest at Higher Yield. Except to the extent permitted by section
148 of the Code and the Regulations and rulings thereunder, the City shall not at any time
prior to the final Stated Maturity of the Notes directly or indirectly invest Gross Proceeds in any
Investment (or use Gross Proceeds to replace money so invested), if as a result of such
investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds
(or with money replaced thereby), whether then held or previously disposed of, exceeds the
Yield of the Notes.
(e) Not Federally Guaranteed. Except to the extent permitted by section
149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit
to take any action which would cause the Notes to be federally guaranteed within the meaning
of section 149(b)of the Code and the Regulations and rulings thereunder.
(f) Information Report. The City shall timely file the information required by
section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other
form and in such place as the Secretary may prescribe.
(g) No Rebate Required. The City warrants and represents that it satisfies
the requirements of paragraph (2) and (3) of section 148(f) of the code with respect to the
Notes without making the payments for the United States described in such section.
Specifically, the City warrants and represents that:
(1) the City is a governmental unit with general taxing
powers;
(2) at least 95% of the net proceeds of the Notes will
be used for the local governmental activities of the City;
(3) the aggregate face amount of all tax-exempt
obligations issued or expected to be issued by the City (and all subordinate
entities thereof) in the calendar year in which the Notes are issued is not
reasonably expected to exceed $5,000,000.
(h) Qualified Tax Exempt Obligations. In accordance with the provisions
of paragraph (3) of subsection (b) of Section 265 of the Code, the City hereby designates the
Notes to be"qualified tax exempt obligations" in that the Notes are not"private activity bonds"
as defined in the Code and represents the amount of"tax exempt obligations"to be issued by
the City (including all subordinate entities of the City) for the calendar year 2002 will not
exceed $10,000,000.
(i) Elections. The City hereby directs and authorizes the Mayor, City
Secretary, City Manager and Director of Finance, individually or jointly, to make elections
permitted or required pursuant to the provisions of the Code or the Regulations, as they deem
necessary or appropriate in connection with the Notes, in the Certificate as to Tax Exemption
or similar or other appropriate certificate, form or document.
SECTION 15: Sale of the Notes. Pursuant to a public sale for the Notes, the bid
submitted by (herein referred to as the "Purchasers") is
declared to be the best bid received producing the lowest true interest cost rate to the City,
WYLIE TAX NOTES 15
2002_ORDINANCE.DOC
and the sale of the Notes to said Purchasers at the price of par and accrued interest to the
date of delivery, plus a premium of$ , is hereby approved and confirmed. Delivery
of the Notes to the Purchasers shall occur as soon as possible upon payment being made
therefor in accordance with the terms of sale.
SECTION 16: Official Statement. The use of the Preliminary Official Statement, dated
September 12, 2002, in the offering and sale of the Notes is hereby ratified, confirmed and
approved in all respects, and the City Council hereby finds that the information and data
contained in said Preliminary Official Statement pertaining to the City and its financial affairs is
true and correct in all material respects and no material facts have been omitted therefrom
which are necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading. The final Official Statement, which reflects the terms of sale
(together with such changes approved by the Mayor, City Secretary, City Manager, Assistant
City Manager or Director of Finance, one or more of said officials), shall be and is hereby in all
respects approved and the Purchasers are hereby authorized to use and distribute said final
Official Statement, dated September 24, 2002, in the reoffering, sale and delivery of the Notes
to the public.
SECTION 17: Control and Custody of Notes. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas, including the printing and supply of
definitive Notes, and shall take and have charge and control of the Initial Note pending the
approval thereof by the Attorney General, the registration thereof by the Comptroller of Public
Accounts and the delivery thereof to the initial purchasers.
Furthermore, the Mayor, Mayor Pro Tern,. City Manager, Director of Finance,Assistant
City Manager and City Secretary, any one or more of said officials, are hereby authorized and
directed to furnish and execute such documents and certifications relating to the City and the
issuance of the Notes, including certifications as to facts, estimates, circumstances and
reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of
the Notes, as may be necessary for the approval of the Attorney General, the registration by
the Comptroller of Public Accounts and the delivery of the Notes to the purchasers, and,
together with the City's financial advisor, bond counsel and the Paying Agent/Registrar, make
the necessary arrangements for the delivery of the Initial Note to the purchasers and the initial
exchange thereof for definitive Notes.
SECTION 18: Proceeds of Sale. The proceeds of sale of the Notes, excluding the
accrued interest received from the purchasers, shall be deposited in a construction fund
maintained at the City's depository bank. Pending expenditure for authorized projects and
purposes, such proceeds of sale may be invested in authorized investments in accordance
with the provisions of V.T.C.A., Government Code, Chapter 2256, including guaranteed
investment contracts permitted by V.T.C.A., Section 2256.015 et seq., and the City's
investment policies and guidelines, and any investment earnings realized shall be expended
for such authorized projects and purposes or deposited in the Interest and Sinking Fund as
shall be determined by the City Council. Accrued interest and premium, if any, received from
the sale of the Notes and any excess note proceeds, including investment earnings, remaining
after completion of all authorized projects or purposes shall be deposited to the credit of the
Interest and Sinking Fund.
WYLIE TAX NOTES 16
2002_ORDINANCE.DOC
SECTION 19: Notices to Holders-Waiver. Wherever this Ordinance provides for notice
to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to
the address of each Holder appearing in the Security Register at the close of business on the
business day next preceding the mailing of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Notes. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed
with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.
SECTION 20: Cancellation. All Notes surrendered for payment, redemption, transfer,
exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly
canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar
and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The
City may at any time deliver to the Paying Agent/Registrar for cancellation any Notes
previously certified or registered and delivered which the City may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly canceled by the Paying
Agent/Registrar. All canceled Notes held by the Paying Agent/Registrar shall be returned to
the City.
SECTION 21: Legal Opinion. The obligation of the Purchasers to accept delivery of
the Notes is subject to being furnished a final opinion of Fulbright&Jaworski L.L.P.,Attorneys,
Dallas,Texas, approving such Notes as to their validity, said opinion to be dated and delivered
as of the date of delivery and payment for such Notes. A true and correct reproduction of said
opinion is hereby authorized to be printed on definitive printed obligations.
SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Notes. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Notes shall be of no significance or effect as regards the legality
thereof and neither the City nor attorneys approving the Notes as to legality are to be held
responsible for CUSIP numbers incorrectly printed or typed on the definitive Notes.
SECTION 23: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied,
is intended or shall be construed to confer upon any person other than the City, the Paying
Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by
reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, the Paying
Agent/Registrar and the Holders.
SECTION 24: Inconsistent Provisions. All ordinances, orders or resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict, and the provisions of this Ordinance shall be and
remain controlling as to the matters contained herein.
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SECTION 25: Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 26: Effect of Headings. The Section headings herein are for convenience
only and shall not affect the construction hereof.
SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 28: Severability. If any provision of this Ordinance or the application thereof
to any circumstance shall be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless be valid, and the City Council
hereby declares that this Ordinance would have been enacted without such invalid provision.
SECTION 29: Continuing Disclosure Undertaking. (a) Definitions. As used in this
Section, the following terms have the meanings ascribed to such terms below:
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means each person whom the SEC or its staff has determined to be a
nationally recognized municipal securities information repository within the meaning of the
Rule from time to time.
"Rule" means SEC Rule 15c2-12, as amended from time to time.
"SEC" means the United States Securities and Exchange Commission.
"SID" means any person designated by the State of Texas or an authorized
department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state
information depository within the meaning of the Rule from time to time.
(a) Annual Reports. The City shall provide annually to each NRMSIR and
any SID, within six months after the end of each fiscal year (beginning with the fiscal year
ending September 30, 2002) financial information and operating data with respect to the City
of the general type included in the final Official Statement approved by Section 16 of this
Ordinance, being the information described in Exhibit B hereto. Financial statements 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 audited financial
statements are not available at the time the financial information and operating data must be
provided, then the City shall provide unaudited financial statements for the applicable fiscal
year to each NRMSIR and any SID with the financial information and operating data and will
file the annual audit report, when and if the same 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.
WYLI E TAX NOTES 18
2002_ORDI NAN CE.DOC
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 MSRB)that theretofore has been provided to each NRMSIR and any SID or filed with 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
Notes, if such event is material within the meaning of the federal securities laws:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the Notes;
7. Modifications to rights of holders of the Notes;
8. Note calls;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Notes; and
11. 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 subsection (b) of this Section by the time required by such Section.
(c) Limitations, Disclaimers, and Amendments. The City shall be obligated
to observe and perform the covenants specified in this Section while, but only while, the City
remains an "obligated person"with respect to the Notes within the meaning of the Rule, except
that the City in any event will give the notice required by subsection (c) hereof of any
defeasance that cause the City to be no longer such an "obligated person."
The provisions of this Section are for the sole benefit of the Holders and beneficial
owners of the Notes, 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 Notes at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR
BENEFICIAL OWNER OF ANY NOTE 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
WYLI E TAX NOTES 19
2002 ORDINANCE.DOC
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
constitute a breach of or default under this Ordinance for purposes of any other provision 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 by the City from time to time to adapt
to changed circumstances resulting 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, but only if (1) the
provisions of this Section, as so amended, would have permitted underwriters to purchase or
sell Notes in the primary offering of the Notes in compliance with the Rule, taking into account
any amendments or interpretations of the Rule to the date of such amendment, as well as
such changed circumstances, and (2)either(a)the Holders of a majority in aggregate principal
amount (or any greater amount required by any other provision of this Ordinance that
authorizes such an amendment) of the Outstanding Notes consent to such amendment or(b)
a Person that is unaffiliated with the City (such as nationally recognized bond counsel)
determines that such amendment will not materially impair the interests of the Holders and
beneficial owners of the Notes. The provisions of this Section may also be amended from time
to time or repealed by the City if the SEC amends or repeals the applicable provisions of the
Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to
the extent that reservation of the City's right to do so would not prevent underwriters of the
initial public offering of the Notes from lawfully purchasing or selling Notes in such offering. If
the City so amends the provisions of this Section, it shall include with any amended financial
information or operating data next provided in accordance with subsection (b)an explanation,
in narrative form, of the reasons for the amendment and of the impact of any change in the
type of financial information or operating data so provided.
SECTION 30: Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the
time, place, and subject matter of the public business to be considered at such meeting,
including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter
551.
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2002_ORDINANCE.DOC
SECTION 31: Effective Date. This Ordinance shall take effect and be in full force
immediately from and after its date of adoption shown below.
PASSED AND ADOPTED, this September 24, 2002.
CITY OF WYLIE, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
WYLIE TAX NOTES 21
1[ 2 ORDINANCE.DOC
Exhibit B
to
Ordinance
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 29 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 financial statements of the City appended to the Official Statement as
Appendix B, but for the most recently concluded fiscal year.
2. The information under Tables 1 through 6 and 8 through 15.
Accounting Principles
The accounting principles referred to in such Section are the generally accepted accounting
principles as applicable to governmental units as prescribed by The Government Accounting
Standards Board.
WYLIE TAX NOTES
2002 ORDINANCE.DOC
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of September 24, 2002 (this "Agreement"), by and
between the City of Wylie, Texas (the "Issuer"), and JPMorgan Chase Bank, a New York
banking corporation organized and existing under the laws of the State of New York and
authorized to do business in the State of Texas,
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its"City of
Wylie, Texas, Tax Notes, Series 2002" (the "Notes") in the aggregate principal amount of
$250,000, such Notes to be issued in fully registered form only as to the payment of principal
and interest thereon; and
WHEREAS, the Notes are scheduled to be delivered to the initial purchasers on or about
October 29, 2002; and
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 said Notes and
with respect to the registration,transfer and exchange thereof by the registered owners thereof;
and
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
Notes;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
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 Notes, and, as Paying Agent for the Notes, the Bank shall be
responsible for paying on behalf of the Issuer the principal, premium(if any), and interest on the
Notes as the same become due and payable to the registered owners thereof; all in accordance
with this Agreement and the "Note Resolution" (hereinafter defined). The Issuer hereby
appoints the Bank as Registrar with respect to the Notes and, as Registrar for the Notes, the
Bank shall keep and maintain for and on behalf of the Issuer books and records as to the
ownership of said Notes and with respect to the transfer and exchange thereof as provided
herein and in the"Note Resolution".
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and
Registrar for the Notes.
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
Annex 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
WYLIE TAX NOTES zu 2_PA_R EXHIBIT A
AGMT.DOC
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 TWO
DEFINITIONS
Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
"Acceleration Date"on any Note means the date on and after which the principal
or any or all installments of interest, or both, are due and payable on any Note which has
become accelerated pursuant to the terms of the Note.
"Bank Office" means the offices of the Bank located in Dallas, Texas at the
address appearing in Section 3.01 hereof. The Bank will notify the Issuer in writing of
any change in location of the Bank Office.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30th.
"Holder" and "Note Holder" each means the Person in whose name a Note is
registered in the Note Register.
"Issuer Request" and "Issuer Order" means a written request or order signed in
the name of the Issuer by the Mayor, City Secretary, City Manager, Assistant City
Manager, and Director of Finance,any one or more of said officials, and delivered to the
Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be
closed.
"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 Notes" of any particular Note means every previous Note
evidencing all or a portion of the same obligation as that evidenced by such particular
Note (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen
Note for which a replacement Note has been registered and delivered in lieu thereof
pursuant to Section 4.06 hereof and the Resolution).
"Note Resolution" means the resolution, order, or ordinance of the governing
body of the Issuer pursuant to which the Notes are issued, certified by the Secretary or
any other officer of the Issuer and delivered to the Bank.
"Note Register" means a register maintained by the Bank on behalf of the Issuer
providing for the registration and transfers of Notes.
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"Redemption Date"when used with respect to any Note to be redeemed means
the date fixed for such redemption pursuant to the terms of the Note Resolution.
"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.
"Stated Maturity" means the date specified in the Note Resolution the principal of
a Note is scheduled to be due and payable.
Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Notes (Note)" 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 THREE
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 Note at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the Note to the Bank at the following
address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9th Floor, Dallas,
Texas 75201, Attention: Operations.
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 Note when due, by computing the amount of interest to be paid each Holder and making
payment thereof to the Holders of the Notes (or their Predecessor Notes) on the Record Date.
All payments of principal and/or interest on the Notes to the registered owners shall be
accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the
fiduciary account provided in Section 5.05 hereof, sent by United States mail, first class,
postage prepaid, to the address appearing on the Note Register or (2) 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 Notes at the dates specified in the Note Resolution.
ARTICLE FOUR
REGISTRAR
Section 4.01. Note Register-Transfers and Exchanges. The Bank agrees to keep and
maintain for and on behalf of the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Note Register") for recording the names and addresses of the
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Holders of the Notes, the transfer, exchange and replacement of the Notes and the payment of
the principal of and interest on the Notes 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 Bank may prescribe. All transfers, exchanges and replacement of Securities shall be
noted in the Note Register. The Bank represents and warrants its office in Dallas, Texas will at
all times have immediate access to the Note Register by electronic or other means and will be
capable at all times of producing a hard copy of the Note Register at its Dallas office for use by
the Issuer.
Every Note 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 Notes
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 Notes.
To the extent possible and under reasonable circumstances, the Bank agrees that, in
relation to an exchange or transfer of Notes, the exchange or transfer by the Holders thereof will
be completed and new Notes delivered to the Holder or the assignee of the Holder in not more
than three(3) business days after the receipt of the Notes 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
Notes to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of
printed Notes will be kept in safekeeping pending their use and reasonable care will be
exercised by the Bank in maintaining such Notes in safekeeping, which shall be not less than
the care maintained by the Bank for debt securities of other governments or corporations for
which it serves as registrar, or that is maintained for its own securities.
Section 4.03. Form of Note Register. The Bank, as Registrar, will maintain the Note
Register relating to the registration, payment, transfer and exchange of the Notes 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 Note Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Note 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 Note 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 Note Register. The Issuer may also inspect the information contained in the Note
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.
The Bank will not release or disclose the contents of the Note 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
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prior to the release or disclosure of the contents of the Note 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 Note Register.
Section 4.05. Return of Cancelled Certificates. The Bank will, at such reasonable
intervals as it determines, surrender to the Issuer, Notes in lieu of which or in exchange for
which other Notes have been issued, or which have been paid.
Section 4.06. Mutilated, Destroyed, Lost or Stolen Securities. The Issuer hereby
instructs the Bank, subject to the provisions of Section 11 of the Note Resolution, to deliver and
issue Notes in exchange for or in lieu of mutilated, destroyed, lost, or stolen Notes as long as
the same does not result in an overissuance.
In case any Note shall be mutilated, or destroyed, lost or stolen, the Bank may execute
and deliver a replacement Note of like form and tenor, and in the same denomination and
bearing a number not contemporaneously outstanding, in exchange and substitution for such
mutilated Note, or in lieu of and in substitution for such destroyed lost or stolen Note, only upon
the approval of the Issuer and 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 Note, 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 Note
shall be borne by the Holder of the Note 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 Notes it
has paid pursuant to Section 3.01, Notes it has delivered upon the transfer or exchange of any
Notes pursuant to Section 4.01, and Notes it has delivered in exchange for or in lieu of
mutilated, destroyed, lost, or stolen Notes pursuant to Section 4.06.
ARTICLE FIVE
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.
(a) 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.
(b) 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.
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(c) 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 Notes,
but is protected in acting upon receipt of Notes 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.
(d) 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.
(e) 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 Notes 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 Note, or
any other Person for any amount due on any Note from its own funds.
Section 5.04. May Hold Notes. The Bank, in its individual or any other capacity, may
become the owner or pledgee of Notes 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. Moneys Held by Bank- Fiduciary Account/Collateralization. A fiduciary
account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and
disbursement of moneys received from the Issuer hereunder for the payment of the Notes, and
money deposited to the credit of such account until paid to the Holders of the Notes shall be
continuously collateralized by securities or obligations which qualify and are eligible under both
the laws of the State of Texas and the laws of the United States of America to secure and be
pledged as collateral for fiduciary accounts to the extent such money is not insured by the
Federal Deposit Insurance Corporation. Payments made from such fiduciary account shall be
made by check drawn on such fiduciary account unless the owner of such Notes shall, at its
own expense and risk, request such other medium of payment.
The Bank shall be under no liability for interest on any money received by it hereunder.
Subject to the applicable unclaimed property laws of the State of Texas, any money
deposited with the Bank for the payment of the principal, premium (if any), or interest on any
Note and remaining unclaimed for three years after final maturity of the Note has become due
and payable will be paid by the Bank to the Issuer, and the Holder of such Note shall thereafter
look only to the Issuer for payment thereof, and all liability of the Bank with respect to such
moneys shall thereupon cease.
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
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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 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 in the State
of Texas to determine the rights of any Person claiming any interest herein.
Section 5.08. DT Services. It is hereby represented and warranted that, in the event the
Notes 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", 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 SIX
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 page 9.
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.
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Section 6.08. Entire Agreement. This Agreement and the Note Resolution 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 Note Resolution, the
Note Resolution 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 Notes to the Holders thereof or(ii) may be earlier
terminated by either party upon sixty (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 given to the Holders of the Notes 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 Notes.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and
deliver the Note Register (or a copy thereof), together with other pertinent books and records
relating to the Notes,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.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
JPMORGAN CHASE BANK
BY:
Title:
[SEAL] Address: 2001 Bryan Street, 10th Floor
Dallas, Texas 75201
Attest:
Title:
CITY OF WYLIE, TEXAS
BY:
Mayor
Address: 2000 Highway 78 North
Wylie, Texas 75098
(CITY SEAL)
Attest:
City Secretary
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WYLIE CITY COUNCIL
AGENDA ITEM NO.
•
September 24, 2002
Issue
Consider and act upon approval of an Ordinance authorizing the issuance of $2,500,000 General
Obligation Bonds, Series 2002, dated September 15, 2002 and all other matters related thereto.
Background
The City is issuing $2,500,000 of the $17,940,000 in general obligation bonds authorized by the
election held May 8, 1999. Proceeds from the sale of the Bonds will be used for street
improvements, and to pay costs associated with the issuance of the Bonds. The bids for Bonds will
be publicly opened and read at the offices of the Financial Advisor, at 11:00 a.m. CDT, Tuesday,
September 24, 2002. The bonds are being sold in one block on an "All or None" basis. The sale of
the Bonds will be awarded to the bidder making a bid that conforms to the Bidding Instructions and
which produces the lowest True Interest Cost rate to the City. The bidders on municipal bonds are
typically financial institutions or groups that intend to retail the bond to institutions or individual
investors. The City's Financial Advisor, First Southwest Company, will present the results of the
bidding at the Council meeting on September 24, 2002.
Other Considerations
The City Council can take action to award the Bonds or reje..t all bids at this meeting. If the bonds
are awarded, the Council will need to adopt an ordinance authorizing the Bonds and approving the
Official Statement (the Ordinance). A Good Faith Deposit of $50,000 will be required from the
successful bidder.
Financial Consideration
The debt service requirements for the new bonds will be funded from property taxes. The average
annual debt service payment of the twenty-year amortization of the $2,500,000 in new bonds is
estimated to be $196,960.
Board/Commission Recommendations
N/A
Staff Recommendations
Staff recommends that the City Council adopt the proposed ordinance authorizing the issuance of
$2,500,000 General Obligation Bonds, Series 2002, per the recommendation of the First Southwest
Company.
Attachments
Ordinance
Paying Agent/Registrar Agreement
Prepared by Re ed y Finan City Man Approval