03-08-1988 (City Council) Agenda Packet DATE POSTED 3-4-88
TIME POSTED 5:00 P. M.
AGENDA
REGULAR MEETING CITY COUNCIL
CITY OF WYLIE
MARCH 8, 1988
7 :00 P. M. COUNCIL CHAMBERS
MUNICIPAL COMPLEX
2000 HWY. 78 NORTH
CALL TO ORDER
INVOCATION
ORDER OF PAGE
BUSINESS REFERENCE BUSINESS
1 1 - 9 Consider approval of minutes
for February 23rd and March
1st meetings
2 10 - 11 Consider award of bid for
radios for the new police cars
3 Insert Presentation of 1988
Action Plan for the City of
Wylie
4 12 Consider approval of
reappointment of Mr . Raymond
Cooper to the North Texas
Municipal Water District Board
of Directors as representative
for the City of Wylie - two
year term
PUBLIC READING OF RESOLUTIONS AND ORDINANCES
5 13 - 29 Consider approval of a
Resolution
approving/authorizing the
execution of a "Paying
Agent/Registrar Agreement" in
relation to the "City of
Wylie,Texas, Public Property
Finance Contractual
Obligations Series, 1988 and
resolving other matters
incident and related thereto.
(Equipment Refinancing)
6 30 - 65 Consider approval of Ordinance
authorizing the issuance of
$400,000 City of Wylie
Contractual obligations in
all matters incident and
related thereto (Equipment
Refinancing)
7 66 - 68 Consider approval of an
Ordinance amending the
Plumbing Code to comply with
the Water Conservation Plan as
required by Texas Water
Development Board
8 69 - 74 Consider approval of an
Insert Ordinance adopting the Drought
Contingency Plan as required
by Texas Water Development
Board
ORDER OF PAGE
BUSINESS REFERENCE BUSINESS
GENERAL DISCUSSION
9 Citizen Participation
10 Council Discussion
11 Recess open meeting
12 Convene into Executive Session
under the authority of ARticle
6252-17 V.A.C.S. , Section 2
paragraph "g" personnel
matters - Performance Review
of City Manager
13 Reconvene open meeting
14 Adjourn
CITY COUNCIL MEETING
MINUTES
FEBRUARY 23, 1988
The Wylie City Council met in regular session on Tuesday,
February 23 , 1988 at 7 :00 P.M. in the Council Chambers of
the Municipal Complex . A quorum was present and notice of
the meeting had been posted in the time and manner required
by law. Those present were Mayor Chuck Trimble, Mayor Pro
Tem Sandra Donovan, Council Members Cal Westerhof , John
Akin, Chris DiTota, Kent Crane and Marvin Blakey, Finance
Director James Johnson, City Secretary Carolyn Jones, Code
Enforcement Officer Roy Faires, Chief of Police Royce
Abbott, Key Rate Consultant Tom Wood. City Manager John
Pitstick was absent.
Mayor Trimble called the meeting to order and Councilman
Akin gave the invocation.
APPROVAL OF MINUTES: Mayor Pro Tem Donovan corrected the
minutes of February 9th to reflect that Mayor Pro Tem
Donovan made the statement to correct coffee machines to
copy machines in stead of Councilman DiTota. Mayor Pro Tem
Donovan stated that Councilman Akin made the motion to
approve the final plat for construction only for Westgate
Phase II . Councilman Westerhof made a motion to approve the
minutes with the above corrections. Seconded by Councilman
DiTota. The vote was as follows : Mayor Trimble - in favor,
Mayor Pro Tem Donovan - in favor, Councilman Akin - in
favor, Councilman Westerhof - in favor , Councilman DiTota -
in favor, Councilman Crane - in favor, and Councilman Blakey
- in favor . This motion carried with all in favor .
PRESENTATION OF CERTIFICATE OF APPRECIATION AWARD TO MR.
RALPH PINKUS: This certification of appreciation is being
presented to Mr. Ralph Pinkus for the fifty Crepe Myrtle
Trees given to the City of Wylie. Councilman Akin stated
that in 1986 the City was trying to obtain funds from the
Texas Highway Department for a beautification program and
Mr . Pinkus made a statement at that time that he would give
the city some Crepe Myrtles . There was a lot of support for
this program and there were pictures made for the paper with
Mr. Pinkus and I , but it never made the news . Mr. Pinkus
was contacted a few months ago and he gave the trees to the
City for our new complex . It was brought to my attention
that we never thanked Mr . Pinkus for these trees. Mr .
Pinkus has had Nortex Nursery in our City since early
1970 ' s . What I am trying to say is we are trying to get
volunteers and we have not thanked someone who have already
volunteered . Councilman Akin stated that we should not let
this happen. I wanted to let Mr . Pinkus know how much I
appreciated him. Motion was made by Councilman Akin to
approve the presentation of the certificate of appreciation
to Mr. Pinkus . Seconded by Councilman Crane. The vote was
as follows : Mayor Trimble - in favor, Mayor Pro Tem Donovan
- in favor, Councilman Akin - in favor, Councilman Westerhof
- in favor , Councilman DiTota - in favor , Councilman Crane -
in favor, and Councilman Blakey - in favor . This motion
carried with all in favor .
Mayor Trimble called Mr . Pinkus to the front and made the
presentation.
CONSENT AGENDA: APPROVAL OF RESOLUTION RELEASING A 1976
CADILLAC TO BE SOLD IN AUCTION, APPROVAL OF RESOLUTION
ESTABLISHING LAVON DR. AS THE OFFICIAL NAME FOR STATE
HIGHWAY 78 , APPROVAL OF RESOLUTION PROVIDING FOR CITY
MANAGER TO HAVE AUTHORITY TO ENTER INTO A COOPERATIVE
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AGREEMENT WITH THE U. S. ARMY CORPS OF ENGINEERS, AND
APPROVAL OF FIRST INSTALLMENT TAX ROLLBACK REFUND CHECKS:
Councilman DiTota wanted to know if the car was and would be
impounded until the auction. Finance Director James Johnson
said yes. Mayor Pro Tem Donovan wanted to know if the funds
remain the same if Council does de-annex some of the lake
property. Chief Abbot said that is what he has been told
that the funds will not change. Motion was made by
Councilman Westerhof to approve the items in the consent
agenda. Seconded by Councilman Akin. The vote was as
follows : Mayor Trimble - in favor, Mayor Pro Tem Donovan -
in favor, Councilman Westerhof - in favor , Councilman DiTota
- in favor , Councilman Crane - in favor, and Councilman
Blakey - in favor. This motion carried with all in favor .
APPEAL TO COUNCIL FOR APPROVAL OF A PROGRAM FOR A VOLUNTEER
FIRE DEPARTMENT FUND-RAISER: Finance Director James Johnson
said there was a staff report to Council regarding Gallery
Portraits selling portraits for the Fire Department . Staff
talked with Rob Dillard and lending the City name for profit
is not constitutional . Staff has a problem with it . Mayor
Pro Tem Donovan said her concern is we are going to have a
lot of volunteer programs and I hope we do not sit up here
and tell them they can not help with a fund-raiser . Mayor
Pro Tem Donovan wanted to know how they were getting by with
this in other cities. Councilman Akin said we have done
this in the past and this is the first time we have heard of
it not being legal . Finance Director James Johnson said
there are methods and ways of doing this . Mr . Faires said
that Mr . Pitstick and himself had concern about the people
not being under the City' s control . When it is under our
control we know the money comes in to us . These people are
using the City' s name and logo and making profit .
Councilman DiTota said he had talked with a person in our
City and he had not been contacted in regards to doing this
and would if our Fire Department had called on him. I had
rather see the money on sale tax stay in the City instead of
going to Georgia.
Mayor Trimble said the Fire Department is a volunteer
department and operates separate and apart from the City.
The City owns the equipment but not the people. The City
does not employ the people, I have a hard time understanding
why they cannot do this. These people should not use the
City Logo.
Mayor Pro Tem Donovan wanted to know if everyone had read
the letter in the packet. Mayor Trimble said the logo
should be taken off the letter.
Councilman Akin said he would like to see the City Manager
and the Fire Department get together and work this problem
out so it can be done.
Councilman DiTota said there are a lot of fund-raisers such
as pancake suppers, bake sales, etc. Councilman DiTota said
not to forget we have someone in our City who is willing to
do the same thing.
Mayor Pro Tem Donovan said the reason the Fire Department
went with this company is they came to the Fire Department .
This company has references and have been in other cities.
When you have someone going door to door to get money and
they guarantee the department $1 ,500 .00 , and that a
percentage of the extra money collected for the extra
portraits sold will come back to the fire department, I
don' t understand why we cannot do it.
Councilman Crane said it brings up a problem, there is
another City where the fire department had a falling out
with the Council and the volunteer fire department claimed
the property and equipment was theirs . Mayor Trimble said
they found that this equipment and property belonged to the
City not the volunteer fire department. Mayor Trimble also
stated that the organization is not the City' s organization.
Councilman Westerhof said if this is approved the staff
should govern them with a stern hand.
Councilman Crane said we would have to be careful if we
begin to pose special regulations on this then we are
crossing the line as to who they are serving, the individual
volunteers or the City of Wylie.
Councilman Blakey said there are other who use the school
and my feelings are if they have a good tract record I have
no problem with it .
Councilman Akin said fire department does a thorough job of
checking these firms out .
Mayor Trimble said he did not want to over see their fund-
raisers , the volunteer fire department is separate and apart
from the City. Finance Director James Johnson said the
City pays workers compensation, retirement fund and pay for
fire calls and meetings. Mayor Trimble asked Mr . Johnson
if the report was filed. Mr. Johnson said yes , it is filed
under the City of Wylie. Mayor Trimble stated that it was
not violation of the law but liability for the City.
Ms . Kim Brown, representative from Gallery Portraits, stated
that they always register with the police department in
every city. Ms. Brown stated that the city has control
because on the permit it states the City can revoke it at
any time. This is the first time I have run into this
problem where the Council did not want us to help the
volunteer fire department. Ms. Brown said the way we stay
in business is to make the fire department happy and raise
them money. This company does have a Dallas office and the
people selling will be out of this Dallas office.
Councilman Blakey asked about where the sales tax would go.
Councilman Westerhof said it would be paid to Atlanta .
Ms. Brown said the fire department could make $10 .00 off of
the coupon. This company expects to raise the fire
department $5 ,000 . Ms. Brown said that she told the City
Manager that they would take the "Wylie" out of the letter .
Mayor Trimble asked Mr . Lester Gayler if there was an
auxiliary. Mr. Gayler said there used to be but it is in
active at this time. A member from the volunteer fire
department said that the ladies auxiliary was going to start
back up in March. Mayor Trimble stated that the fire
department did not have an organization that these people
could represent. Mayor Trimble also stated that the fire
department needed to file the necessary papers for them to
be known as volunteer fire department.
Councilman Akin wanted to know when this program would
start. Mr . Roy Faires said they have already started in
County. Ms. Brown said we were told to get a permit before
we come into the city limits. Councilman DiTota said that
the fire department did service outside the city limits and
if they sell outside the city limits, we do not get the
sales tax . Councilman Crane said that the Council should
support the staff until all matters are cleared up.
This item died on the table for a lack of a motion.
APPROVAL OF LEASE AGREEMENT FOR TELEX COMPUTER SYSTEM -
POLICE DEPARTMENT: This is before Council for authorization
J
for the City Manager to sign the lease agreement for this
equipment . Councilman Akin wanted to know if this is the
same equipment the department got through a grant a few
years ago. Mr. Johnson said yes, it is the up date to the
system. The equipment is here and had been put into
service. The department is getting this through Texas
Department of Public Safety for $9,000 . with three (3) years
to pay. This is a high cost item.
Chief Abbott said the old computer was on a grant and it has
expired and all equipment had to be updated with what Austin
is now using .
Motion was made by Councilman Westerhof to approve the
authorization for the City Manager to sign a lease agreement
for the Telex Computer System. Seconded by Councilman Akin.
The vote was as follows : Mayor Trimble - in favor, Mayor
Pro Tem Donovan - in favor, Councilman Akin - in favor,
Councilman Westerhof - in favor, Councilman DiTota - in
favor , Councilman Crane - in favor, and Councilman Blakey -
in favor . This motion carried with all in favor.
DISCUSSION OF STAFF RECOMMENDATIONS FOR REVISION OF VARIOUS
DEVELOPMENT FEES: Mr . Johnson stated that this is a
discussion item and will be brought back to Council later.
Mr. Ron Homeyer, Assist. Engineer , stated in comparing our
fees with other cities, staff feels there is need for a few
changes . Staff is submitting the following for Council to
consider later:
Final Plat - no change
Park Fees - staff is recommending eliminating
Perimeter Street Fees - Staff is recommending some
changes - during active development, the developer
must construct a minimum of 24 ' concrete pavement
of all perimeter collector and thoroughfare
streets . Staff recommends that the developer not
be allowed to put money in escrow.
Lift Station Fees - staff is recommending revisions -
these revisions are based upon the interfacing
with a Regional Wastewater System.
Impact Fees - no changes
Councilman Akin stated that the park fees were brought to
Council back in 83/84 , but were not adopted at that time.
These fees were adopted some time later , had Council adopted
them in 83/84 we would have a better park system today.
Councilman DiTota asked if the City of Allen was using this
type of system for parks. Mr . Homeyer said in Allen they
are allowed to use property in flood plain, in Wylie the
property has to be outside the 100 year flood plain. Wylie
will accept the property in the flood plain but will not
count it toward this ordinance. Mr . Homeyer said that the
City of Rockwall is very different , it depends on where the
property is and how many parks are already in that area.
Councilman Crane stated that if we wait, then we will not be
able to obtain the land later.
Mayor Trimble wanted to know if this was related to the new
laws . Mr . Homeyer said yes, but that the Senate Bill allows
cities three (3) years to do a study and master plan.
Mayor Pro Tem Donovan wanted to know if some type of action
had to be shown within a twelve (12) month period.
Councilman Blakey said if we had a master plan for the park
then you could visualize Wylie having two (2) or three (3)
4
large parks . Mr . Faires said most of you know that I
carried this to the Park Board and Planning and Zoning and
City Council. The master plan we have is not as detailed as
you would want, but this was done in order to give us some
flexibility to accept land or not.
Mayor Pro Tem Donovan said she hated to see us loose any
land because we do not have a master plan.
Councilman DiTota said Plano shows no fees - has this been
revised . Mr . Homeyer said he was told that they did not
have any fees.
Mr . Faires stated that up until 1986 every park ordinance
has been struck down, but College Station was taken to the
Supreme Court and there it was upheld. That is why the City
of Wylie choose to go with the ordinance from College
Station.
Councilman DiTota wanted to know if it would be possible for
the developer to put in sidewalks through the development
and not wait until the house is built . Mr . Faires stated
that from his experience, if the developer puts in the
sidewalks, it will not hold up because of the heavy traffic
over them during the building of the house.
After lengthy discussion on the perimeter streets and on
certain subdivision, Mayor Trimble stated that a work shop
needed to be held by staff in order to work on these fees.
PRESENTATION BY CONSULTANT ON KEY RATE ANALYSIS: Mr . Tom
Wood, Key Rate Consultant, explained that a key rate is
based on factor of cost of property insurance. The lower
the key rate the lower the cost of your insurance. The
water system, fire department, electric, building codes and
fire losses also fit into the key rate. Wylie fire records
are high in losses. The current key rate as of 2-1-88 is
$ .30 . I have spent some time with the fire marshal and he
knows what needs to be done to try and bring these loses
down. I feel that there are loses listed under Wylie that
are not within your city limits. The city could bring the
key rate down to $. 29 if you can bring your home owners
premium down. Mr. Wood went through a list of items such as
size of pipe in the older part of town, wood shingles needed
to be treated , need moore elevated storage for water , but
also reflected that some of these items would take care of
themselves as the city grew. Some could be taken care of by
the fire marshal and I have talked with him. The City has
improved since I was last here, which was in 1981 . The City
has helped by having a building and codes department and are
enforcing these ordinances. The fire department is in
good shape for a volunteer department . All equipment is
working and I have told the department that they need to get
in a roof survey. The city has mutual aid with other
cities.
Mayor Trimble wanted to know the effect a paid fire
department would have on the key rate. Mr . Wood said it
will bring it down a lot, if you had 12 paid firemen with
population of 8 ,000 with three men on duty at all time,
there would be a ten cent deduction from the key rate. Mr .
Wood also stated that a paid fire department is very
expensive. Once you go to a paid fire department you will
not go back to volunteers. It is better to spend you money
making the volunteer program more attractive then trying to
bring down the key rate with a paid department.
Councilman Crane wanted to know what procedures to go
through to get the State to lower the key rate. Mr . Wood
said do not try this until the records are corrected and the
S
roof survey is done and a number of other things that I have
told the fire marshal about .
Mr . Woods suggested that the volunteer fire department make
inspections and that should help keep the fire calls down.
Mr. Wood also stated that the water was being treated with
aluminum sulfate and this is clogging up your lines. Mayor
Pro Tem Donovan said she called North Texas Municipal Water
District today and they said they did not use aluminum
sulfate for treating the water, they use calcum sulfate.
Mr . Wood ask Mrs. Donovan to get with Larry Allen and let
him show you the trucks . Mr . Allen also told me he had to
replace the plumbing in his house because of this .
CITIZEN PARTICIPATION: Mayor Trimble invited any one
wishing to speak to come forward at this time, but to keep
their comments to within two minutes . There was no
participation at this time.
COUNCIL DISCUSSION: Mayor Pro Tem Donovan said last night
there was a BBQ for some of Sanden Corp. I was put in a
very bad position as Mr . Wallace Jones said he would see me
later at the BBQ and I did not know what he was talking
about. I was very up set that I did not know what was going
on.
Mayor Pro Tem Donovan wanted to know if Southfork was having
water pressure problems. At least once a month they are
without water from the report I got. Mr . Homeyer said the
problem is being addressed and should be fixed within the
next month. Councilman Akin wanted to know what the problem
was . Mr . Homeyer stated that two (2) pumps designed for
fire protection were installed instead of what was needed ,
on a daily demand, as the pumps shut off the pressure falls
due to not having proper pumps . The storage tank will not
hold enough after the pumps shut off . The right type of
pumps are being installed and this should correct the
problem.
Mayor Pro Tem Donovan asked the city secretary about the
Lucas agreement and if it had been started through the de-
annexation procedure. City Secretary Carolyn Jones said
that she had been working as receptionist and court clerk
all week and had not had time to do work on this project.
Mayor Pro Tem Donovan said she would come to the office this
week and get the paper to engineering in order for things to
get started if that was ok.
Mayor Trimble apologized to Mayor Pro Tem Donovan and
Council for not telling them about the BBQ with Sanden.
This was a good meeting with Sanden and good input from them
in regards to the vendors that would be coming into Wylie.
There being no other business, a motion was made to adjourn
with all in favor .
Chuck Trimble, Mayor
ATTEST :
Carolyn Jones , City Secretary
CALLED CITY COUNCIL
MEETING - MINUTES
MARCH 1, 1988
The Wylie City Council met in a called session on Tuesday,
March 1 , 1988 in the Conference Room of the Municipal
Complex . A quorum was present and notice of the meeting had
been posted in the time and manner required by law. Those
present were Mayor Chuck Trimble, Mayor Pro Tem Sandra
Donovan, Council Members Cal Westerhof , Marvin Blakey, Chris
DiTota and John Akin, City Manager John Pitstick, City
Secretary Carolyn Jones, Finance Director James Johnson,
Public Works Superintendent Don White, Assist. Engineer Ron
Homeyer , Mr . Frank Medanich and Mr. David Medanich from
First Southwest Investments. Councilman Crane arrived late
for the meeting.
Mayor Trimble called the meeting to order and Mayor Pro Tem
Donovan gave the invocation .
PRESENTATION BY JOHN MORGAN FOR USE OF COMMUNITY PARK FOR
CIRCUS EVENT: Mr . Morgan stated that the circus was one of
the major money making projects that WSA has each year . WSA
was turned down by Century Business Park as it was just
sold. The school also turned us down.
Councilman Akin asked Mr . Morgan if he had said the school
had turned him down. Mr . Morgan said yes. Councilman Akin
said he was not for having our park grounds torn up, if it
rains there will be a big problem.
Mayor Pro Tem Donovan wanted to know if Mr . Morgan had
checked with Barron Cook. Mayor Pro Tem Donovan stated she
did not want our park grounds torn up either, and that there
would be more of a chance for vandalism in the park area and
the Library.
Mayor Trimble asked how the lease read , and have you talked
with Oaks Center . Mr . Morgan said the Oaks Center did not
think there was enough grassy area for the tent.
Councilman Akin stated that the circus use to use the lot
just behind the fruit stand on Highway 78 .
City Manager John Pitstick said the park road is not made
for heavy equipment or trucks .
Mayor Pro Tem Donovan wanted to know if there was a problem
with the fund-raiser for WSA as there was with the fire
department . City Manager John Pitstick said no.
Councilman Akin stated he would like to see the circus in
the triangle on the highway and if they went to the park
some money put in escrow to protect against the damage .
Councilman Blakey asked Mr . Morgan if he was comfortable
with the circus crew, if the City held WSA responsible for
damages .
Councilman Akin asked Mr. Morgan if the money received would
go back into the park. Mr . Morgan said yes .
COMMUNITY PARK FOR CIRCUS EVENT ON MARCH 14 & 15: Motion
was made by Councilman Westerhof to table this item until
the March 8th meeting and for Mr . Morgan to check on the
other properties. Seconded by Mayor Pro Tem Donovan. The
vote was as follows : Mayor Trimble - in favor , Mayor Pro
Tem Donovan - in favor , Councilman Akin - in favor,
Councilman Westerhof - in favor , Councilman DiTota - in
favor, and Councilman Blakey - in favor . This motion
carried with all in favor .
Mayor Trimble recessed the business meeting and convened
Council into a work session on the proposed priority street
program, refinancing of equipment and financial proposals
for landfill , street program and sewage collection system.
City Manager John Pitstick stated that the original
equipment purchased was for $350,029 . and this was for six
(6) pieces of equipment. City Attorney Rob Dillard has told
staff that there is no way to get out of the lease purchase.
City has paid on this for 32 months and there is a buy out
figure of $274 ,133 . 29 if done by April 1 , 1988 . City
Manager John Pitstick also stated that there was a clause in
the agreement that will not allow you to get out without
buying out the contract. By buying it out now, you can save
$11 ,000 . in interest. Finance Director James Johnson said
the cleanest way to get title is to buy it out and then if
you want, sell it at market value.
City Manager John Pitstick said the following is information
on equipment for the street department :
Dump Truck - necessary to keep - this piece of
equipment is used daily
Bomag - if the City has a street program, it is a must
to keep the bomag. This machine will do all the
base work that is necessary.
Bomag roller - not the best piece of equipment for the
use we need in the City. The City needs a
pneumatic roller. The City can rent/lease a
pneumatic roller for three or four months for
approximately $2 ,000 . per month.
Crack Sealer - the seal material needed for this crack
sealer has to be heated to 450 degrees and
staff does not have the right type of protective
clothing for operating this machine. City does
need to utilize a crack sealer in order to have a
preventive maintenance program. Staff wants to
keep this crack sealer, but use a different type
of material .
Distributor Truck - this piece of equipment could be
sold if the City contracts out the overlay
(topping) of the streets.
Street Sweeper - high maintenance item with a lot of
down time. Staff does not have the people to
operate this at this time, and does not recommend
a sweeping program at this time. Later if we have
the staff , a street sweeping program could be
done, but at the same time, staff does not oppose
to putting this in the auction with a minimum bid.
City Manager John Pitstick went over what would be needed in
the way of equipment for a good street program:
Pneumatic roller - rent/lease for three or four months
Motor Grader - buy used - approximately $40 ,000 .
Backhoe - to purchase a new one approximate cost
$40 ,000 .
Labor - need to hire three (3) part time employees
during summer months when City is doing street
work, estimated cost of $12 ,000 .
K
Sewer Pump Truck - purchase of this equipment is
necessary
City Manager John Pitstick went over the proposed priority
street list that Council has set up a few months ago. Staff
would like to try for the first four streets this spring and
summer . These streets are Callie Court including a cul-de-
sac, Birmingham Street (from Hwy. 78 to S. Ballard) , East
Stone (from Birmingham to Ballard) , and Brown Street (from
Ballard St. to Hwy. 78) , and South Ballard Street (from
Stone Rd. to City Limits) .
City Manager John Pitstick then went over the equipment
notes and certificates of obligation. There would be five
equipment notes, buy out of Bomag lease purchase, a motor
grader, a backhoe and a sewer pump truck with a total cost
of $392 ,133 . There would also be a twenty (20) year
certificate of obligation which includes the street program,
assessment, labor and lease of pneumatic roller, replacement
of utility lines, landfill , priority sewer design and phase
one of the sewer lines which totals $1 ,243 ,690 . The
equipment notes and certificates of obligation would have
80% charged to General Fund and 20% charged to Utility Fund
for debt service.
City Manager John Pitstick stated that if Council wanted a
major street program, staff had to move forward. If the
above is done it would affect the tax rate as follows :
1987/88 1988/90 1989/90
0 & M .41 8% .4428 .4428
Debit .09 growth .1481 .1653
.50 .5909 .6081
Water 6 . 50 6 .50 6 .50
Sewer 7 .00 8 .50 10 .84
Councilman DiTota wanted to know why not go for a full bond
program. City Manager John Pitstick said because the City
could not afford it right now.
Councilman DiTota said on the equipment, can staff contract
out the manpower to run the machines. Mr . Johnson said we
are, by hiring the three part time people.
Mr . Frank Medanich was asked about the debt service for the
City. Mr . Medanich said the debt service on the tax rate is
very low for Wylie. The City of Plano debt service is 30%
of the total tax roll and has been as high as 50% . The City
of Denton is the same.
Mayor Trimble set up public hearings on March 22nd and
April 12th for informing the public of the street program.
There being no other business or discussion, a motion was
made to adjourn with all in favor .
Chuck Trimble, Mayor
ATTEST :
Carolyn Jones, City Secretary
Staff Report toMayor and City Council
DATE: SUBJECT: NO: /
3-3-88 BID NO. 88-05 TWO (2) MOBILE RADIOS FOR POLICE C S
Budget - Police Patrol (Dept. 202) account 4710 -
$6 ,200 .00
Bid opening on afternoon of February 17 , 1988, bid
award recommendation delayed due to Chief Abbott
checking out performance and record of the three (3)
different types of radios bid. See attached sheet for
list of bids.
The City is currently using and has been replacing its
police radios with Motorola Radio equipment like the
equipment bid . Chief Abbot believes that the
standardization of this type of equipment would allow
for a better utilization of the equipment in the
department. I fully support his belief and concur in
dealing with one vendor on the maintenance of the
equipment rather than several . Chief Abbott also
believes that the Motorola equipment is better
equipment with a better record of performance.
Extending out the cost of equipment for the Motorola
and Midland radios with the 1st, 2nd and 3rd yr .contract costs, the total costs are as follows :
Motorola $6,140 .00
Midland $6,230 .00
G E $7 ,953.66
Staff believes the initial price difference of $474
between the two is more than made up by the contract
maintenance, standardization and performance of said
equipment.
STAFF RECOMMENDATION: - Best Bid
Motorola Communications
Motorola Model Syntor 9000
ORIGINATING DEPT.HEAD DISPOSITION BY COUNCIL
James Johnson, Finance Director -
_
FOR ADD.INFO. CONTACT: OTHER:
James Johnson, Finance Director
D
*************************************************************************************************************
BID NO. 88-05 - RADIOS POLICE CAR
*************************************************************************************************************
VENDOR TYPE OF RADIO PRICE EACH TOTAL DELIVERY SERVICE MAINT. CONTRACT
*************************************************************************************************************
MOTOROLA COMMUNICATIONS
DALLAS, TEXAS MOTOROLA SYNTOR 9000 $2 ,788.00 $5 , 576 .00 6 WEEKS 1ST YR. $6 . 50 PER MO. EA.
2ND YR. $8 .50 PER MO. EA.
3RD YR. $8 .50 PER MO. EA.
KEN ' S COMMUNICATIONS
WYLIE, TEXAS MIDLAND MODEL #70-485 $2 ,551 .00 $5,102 .00 NO QUOTE 1ST YR. NO CHARGE
4"4"1"1 2ND YR. $22 .00 PER MO. EA
...............
3RD YR. $25.00 PER MO. EA
COMMUNICATIONS ENGINEERING
DALLAS, TEXAS GENERAL ELECTRIC
DELTA SX WIDE BAND
S-990 $3 ,184 . 83 $6, 369.66 6-8 WEEKS 1ST YR $22 .00 PER MO. EA.
i 2ND YR $22 .00 PER MO. EA.
3RD YR $22.00 PER MO. EA.
Staff Report to Mayor and City Council
DATE: SUBJECT: NO: eld
3-3-88 _ RE-APPOINTMENT OF MR. RAYMOND COOPER TO NTMWD B.?ARD
Mr . Raymond Cooper ' s term will be up on the North
Texas Municipal Water Districts Board of
Directors on June 1 , 1988 . This is a two year
term and if Council so chooses to re-elect Mr .
Cooper, his term would be from June 1 , 1988 thru
June 1 , 1990 . Staff recommends approval of Mr .
Cooper to another term on this board.
ORIGINATING DEPT.HEAD {DISPOSITION BY COUNCIL
John Pitstick, City Manager
FOR ADD.INFO. CONTACT: OTHER:
John Pitstick, City Manager
Staff Report to Mayor and City Council
DATE: SUBJECT: REFINANCING OF EQUIPMENT AND NOL3
3-4-88 ADDITIONAL EQUIPMENT TO BE PURCHASED
EQUIPMENT PURCHASED MAY, 1985
1 Bomag (new) Asphalt Roller
1 Bomag (new) Recycler
(Plains Machinery Co. ) $219 ,210 .00
1 1985 (new) Diesel Dump Truck
(Mahaney International Co. ) $ 44 ,741 .00
1 Blackwell Kettle w/single
axle trailer (new)
(Nichols Machinery Co. ) $ 18 ,307.00
1 Tymco Air Sweeper (new)
(Industrial Disposal Supply Co. ) $ 59,551 .00
1 Rosco Model RRE (used) 1250 gallon
asphalt distributor mounted on
1964 GMC truck Ser #4017 $ 12 ,000.00
ORIGINAL ACQUISITION COSTS $353 ,809 .00
Financing through Municipal Investor Service and Paper sold
to Chicorp Financial Service in 1986.
All Bomag and related equipment - General Fund
Additional Equipment to be financed :
Estimated Costs
1 Motor Grader (used) General Fund $40,000.00
1 Sewer Vacuum Pump Truck (used)
Utility Fund $38,000.00
1 Backhoe (new) Utility Fund $40,000.00
$118,000.00
ORIGINATING DEPT.HEAD DISPOSITION BY COUNCIL
James Johnson, Finance Director
FOR ADD.INFO. CONTACT: OTHER:
James Johnson, Finance Director
/3
DATE: SUBJECT: N0� PAGE
REFINANCING OF EQUIPMENT AND OF ,
3-4-88 ADDITIONAL EQUIPMENT TQ BE PTIRCHASF.I)
The sewer vacuum pump truck is a requirement of the
enforcement order of the Texas Water Commission, as well as,
an effort to reduce our contractual sewer costs in our pump
and haul sewage collection program. The motor grader is
needed to go with the street equipment and for any street
construction program, the City may undertake. The
additional backhoe is needed for Public Works due to the
age, condition and extended periods of down time of the
city' s existing backhoes .
Bomag and related equipment
(originally 84 mos) net pay off $274 ,133 . 29
Amount to be borrowed to pay off $275,000 .00
Net present value of this figure extended to term of notes
versus discounted refinance rate of 7 .25% for 5 yr .
refinancing plan is:
$283 ,354
$274,133
$ 9 ,221 value of each savings positive NPV
Bomag refinancing $275,000 .00
Additional Equipment $118 ,000 .00
Issuance & Legal costs $ 7 ,000 .00
$400,000 .00
80% Financing - General Fund
20% Financing - Utility Fund
A major advantage of this refinancing would be to take it
out of the operating budget allocation for the future, show
it as a debt service. This year , the lease allocation for
the Bomag was deleted by Council ( in January 1988) as a
result of the rollback election. Given, the City attorney' s
opinion, the City has little recourse but to refinance and
reschedule the payments as terminating the "lease" would be
difficult from a liability standpoint.
DATE: SUBJECT: REFINANCING OF EQUIPMENT AND NO: PAGE
3-4-88 ADDITIONAL EQUIPMENT TO BE PURCHASED OF .1_
Chicorp Financial Services - interest rate (true interest)
16% annually on $353 ,809.00
Refinancing Plan - 7 .25% annual
Interest savings 1st yr . $ 8 ,221 .00
2nd yr . $14 ,567 .00
3rd yr. $13 ,242 .00
4th yr. $12,257 .00
5th yr . ($21 ,752 .00) *
Total interest cost savings $26 , 715 .00
Interest savings w/o penalty on pay off $48,467 .00
*Due to extension of term by 8 months and penalty of early
pay-off .
Penalty of early pay-off $21 ,752 . 00
Bomag payments remaining - 52 mos .
Refinancing Plan - 60 mos .
True interest costs without refunding and
excluding penalty - 21% annually
True interest costs w/penalty on refunding 16% annually
Another major advantage of the refunding is that the City
can take title to the equipment (Bomag & related items) and
sell them if Council elects to in future. Under the lease
such could not be done.
SALLINGER, NICHOLS, JACKSON,
KIRK & DILLARD
(Formerly Saner, Jack, Sallinger& Nichols)
ALPR[D*ALUMS" Attorneys&Counselors at Law PRESTON CENTER OFFICE
N.lOUns NICHOLS 1800 Lincoln Plaza _ 8222 Douglas Ave.Suite 707
uwaENex W.JAcxsoN 500 N. Akard
k Dallas.Texas 75225
TIN KIRK Dallas, Texas 75201 4 (214)692-1218
*oozes L.DILLARD III (214)954-
RORSRT D.N[Ynu xj
ROR[RT I.NADIR j�
P[TEa O.'WITH l Q�@�
ROT L ARNSTRONs March .1:
DAVID N.SCRAM RORERT L.DA.LARO.JR.
JOSS 1.ioniseai O!COUNSEL
ORUCE A.STOCaARD .�/ ~�
PAN OAND10.SUDRRIC
Mr. James Johnson 4%;
Director of Finance
City of Wylie_
_ P. O. BOX 428
Wylie, Texas 75098
Dear James:
At your request, I have reviewed the Equipment Acquisition Agreement between
the city and Municipal Investor Service involving numerous items of equipment, including
the Bomag machines.
Your question to me is whether or not the city can terminate this agreement as to
a portion of the equipment by amending its budget so that current funds are no longer
appropriated to pay the payments due.
Normally, the city cannot enter into an agreement which creates a debt against
the city which is not payable out of current funds or for which the city has not provided
for the levy of a. tax to create an interest and sinking fund sufficient to pay the '
payments. For this reason, the lease purchase agreements have written into them a
provision that in the event the city fails to appropriate sufficient funds in any fiscal
year to pay the necessary payments, the agreement is considered terminated. However,
such agreements have Rumerous conditions, since the entities which finance these lease
purchases do not wish to simply have you cut off the funds and return the equipment if
you are just dissatisfied with the equipment or no longer want to make the payments.
This particular agreement has such conditions contained in it in Paragraph 4,
Sections E, F, and G.
After reviewing these sections, it is my opinion that the city cannot terminate
this agreement by amending the budget at this time. It is my opinion that the city is
bound at least through the end of the current fiscal year for the payments which were
budgeted in the 1987-88 city budget. If, in the next budget cycle, the City Council
refuses to appropriate the money to pay the 1988-89 payments, and it can meet the
conditions of paragraph 4F, then the agreement would terminate. Even if the city did
not have to acquire services and functions the same as services and functions performed
by this equipment, as described in paragraph 4H, paragraph 4E requires the city to use
its bona fide best efforts to have the budget approved. My previous experience with
an attempted termination of an agreement like this resulted in a suit being filed against
the city that it had not used its "bona fide best efforts" for approval of the necessary
amount.
Mr. James Johnson
Page 2
March 1, 1988
Since I believe you will be required to perform street repair services in the next
fiscal year, it appears that the only way to get out from under this particular agreement
is to refinance in some way and acquire title to all of this equipment. Then you can
sell off the parts of it that you do not really want to keep and maintain. You may take
a loss, but the savings in interest and the potential risk of suit, with accompanying
court costs, staff time, and attorneys' fees, may be worth it.
Please let me know if you have any other questions on this subject at this time.
Very truly yours,
SALLTNGFR, NTCNnr�c, JACKcnN,
KIRK do DILLA RD
�- 'i t �`� ' �i �.
Robert L. Dillard ITT
R LD/sb
A RESOLUTION approving and authorizing the execution
of a "Paying Agent/Registrar Agreement" in
relation to the "City of Wylie, Texas , Public
Property Finance Contractual Obligations ,
Series 1988" and resolving other matters
incident and related thereto .
WHEREAS, on this date the City Council of the City of
Wylie, Texas provided for the execution and delivery of "City
of Wylie, Texas , Public Property Finance Contractual
Obligations, Series 1988" , in the aggregate contract amount of
$400, 000 (the "Cont-racts" ) ; such obligations to be issued in
fully registered form only; and
WHEREAS, in relation to the payment , registration,
transfer and exchange of said Contracts , the Paying
Agent/Registrar selected therefor is MTRUST CORP, NATIONAL
ASSOCIATION; and
WHEREAS, a "Paying Agent/Registrar Agreement" setting
forth the duties and responsibilities of the Paying
Agent/Registrar for such Contracts has been prepared and
submitted to the City Council for approval and execution, such
Agreement being attached hereto as Exhibit A and incorporated
herein by reference as a part of this Resolution for all
purposes; and
WHEREAS, the City Council hereby finds and determines that
such "Paying Agent/Registrar Agreement" should be approved and
execution of the same for and on behalf of the City authorized;
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS that the "Paying Agent/Registrar Agreement" by and
between the City and MTRUST CORP, NATIONAL ASSOCIATION relating
to the above described Contracts, attached hereto as Exhibit A,
is hereby approved as to form and content, and the Mayor and
City Secretary of the City are hereby authorized and directed
to execute such Agreement in substantially the same form and
content herein approved for and on behalf of the City and as
the act and deed of this Council .
PASSED AND APPROVED, this March 8, 1988 .
CITY OF WYLIE, TEXAS
ATTEST: Mayor
City Secretary
(City Seal)
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of March 8, 1988 (this
"Agreement") , by and between the City of Wylie, Texas ( the
"Issuer" ) , and MTrust Corp, National Association, a banking
association duly organized and existing under the laws of the
United States of America, (the "Bank" ) .
RECITALS
WHEREAS, the Issuer has duly authorized and provided for
the execution and delivery of its "City of Wylie, Texas, Public
Property Finance Contractual Obligations , Series 1988" ( the
"Contracts" ) in the aggregate amount of $400, 000, such
Contracts to be issued in fully registered form only as to the
payment of the Installment Amounts and interest thereon; and
WHEREAS, the Contracts are scheduled to be delivered to
the initial contracting party on or about March 30, 1988 ; and
WHEREAS, the Issuer has selected the Bank to serve as
paying agent, registrar and transfer agent with respect to such
Contracts ; and
WHEREAS, the Bank has agreed to serve in such capacities
for and on behalf of the— Issuer and is duly qualified and
otherwise capable of performing the duties and responsibilities
contemplated by this Agreement with respect to the Contracts ;
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 Contracts, and, as Paying Agent for
the Contracts, the Bank shall be responsible for paying on
behalf of the Issuer the Installment Amounts and accrued
interest thereon as the same shall become due and payable to
the Contracting Parties; all in accordance with this Agreement
and the "Contract Resolution" (hereinafter defined) . The
Issuer hereby appoints the Bank as Registrar with respect to
the Contracts and, as Registrar for the Contracts , the Bank
shall keep and maintain for and on behalf of the Issuer books
and records as to the parties to said Contracts entitled to
payment and with respect to the transfer and exchange thereof
as provided herein and in the "Contract Resolution" .
The Bank hereby accepts its appointment, and agrees to
serve as the Paying Agent and Registrar for the Contracts .
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 .
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 Contract means the date on
and after which the Installment Amounts or any or all
accrued interest thereon, or both, are due and payable on
any Contract which has become accelerated pursuant to the
terms of the Contract .
"Bank Office" means the principal offices of the Bank
in Dallas, Texas at the address indicated on page 12
hereof . The Bank will notify the Issuer in writing of any
change in location of the Bank Office.
-2-
"Contract Register" means a register maintained by
the Bank on behalf of the Issuer providing for the
registration and transfers of Contracts .
"Contract Resolution" means the resolution, order , or
ordinance of the governing body of the Issuer pursuant to
which the Contracts are authorized to be executed and
delivered, certified by the Secretary or any other officer
of the Issuer and delivered to the Bank.
"Contracting Party" means the Person in whose name a
Contract is registered in the Contract Register .
"Fiscal Year" means the fiscal year of the Issuer ,
ending August 31st .
" 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 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.
"Payment Date" means the date specified in the
Contract Resolution the Installment Amounts are scheduled
to be due and payable .
"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 Contracts" of any particular Contract
means every previous Contract evidencing all or a portion
of the same obligation as that evidenced by such
particular Contract (and, for the purposes of this
definition, any mutilated, lost, destroyed, or stolen
Contract for which a replacement Contract has been
registered and delivered in lieu thereof pursuant to
Section 4 . 06 hereof and the Contract Resolution) .
"Prepayment Date" when used with respect to any
Contract to be prepaid means the date fixed for such
prepayment pursuant to the terms of the Contract
Resolution.
-3-
"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 .
Section 2 . 02 . Other Definitions .
The terms "Bank, " " Issuer, " and "Contracts (Contract) "
have the meanings assigned to them in the recital paragraphs of
this Agreement . Unless otherwise defined herein, capitalized
terms used herein shall have the same meanings ascribed thereto
in the Contract Resolution.
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
Installment Amount of each Contract on its Payment Date,
Prepayment Date, or Acceleration Date, to the Contracting Party
upon surrender of the Contract to the Bank at the Bank Office.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Contract when due, by computing the amount of
interest to be paid each Contracting Party and preparing and
sending checks by United States Mail, first class postage
prepaid, on each payment date, to the Contracting Party to the
Contracts (or their Predecessor Contracts) on the Record Date,
to the address appearing on the Contract Register or by such
other method, acceptable to the Bank, requested in writing by
the Contracting Party at the Contracting Party' s risk and
expense.
-4-
Section 3 . 02 . Payment Dates .
The Issuer hereby instructs the Bank to pay the
Installment Amounts of the Contracts and the interest thereon
at the dates specified in the Contract Resolution.
ARTICLE FOUR
REGISTRAR
Section 4 . 01 . Contract 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 "Contract Register" ) for recording
the names and addresses of the Contracting Parties to the
Contracts, the transfer , exchange and replacement of the
Contracts and the payment of the Installment Amounts and
interest on the Contracts to the Contracting Parties 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 Contracts shall be noted in the Contract
Register .
Every Contract 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 Contracting Party 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 Contracts .
To the extent possible and under reasonable circumstances,
the Bank agrees that, in relation to an exchange or transfer of
Contracts, the exchange or transfer by the Contracting Parties
will be completed and new Contracts delivered to the
Contracting Party or the assignee of the Contracting Party in
not more than three (3) business days after the receipt of the
Contracts to be cancelled in an exchange or transfer and the
written instrument of transfer or request for exchange duly
executed by the Contracting Party, or his duly authorized
agent, in form and manner satisfactory to the Paying
Agent/Registrar.
-5-
Section 4 . 02 . Certificates .
The Issuer shall provide an adequate inventory of printed
Contracts to facilitate transfers or exchanges thereof . The
Bank covenants that the inventory of printed Contracts will be
kept in safekeeping pending their use and reasonable care will
be exercised by the Bank in maintaining such Contracts 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 Contract Register .
The Bank, as Registrar , will maintain the Contract
Register relating to the registration, payment , transfer and
exchange of the Contracts 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 Contract Register in
any form other than those which the Bank has currently
available and currently utilizes at the time.
The Contract 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 Contracting Parjies .
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 Contract Register. The Issuer may
also inspect the information contained in the Contract 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
Contract 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 subpoena or court order . Upon
receipt of a subpoena or court order the Bank will notify the
Issuer so that the Issuer may contest the subpoena or court
order.
-6-
Section 4 . 05 . Return of Cancelled Certificates .
The Bank will , at such reasonable intervals as it
determines, surrender to the Issuer, Contracts in lieu of which
or in exchange for which other Contracts have been issued, or
which have been paid.
Section 4 . 06 . Mutilated, Destroyed, Lost or Stolen Con-
tracts .
The Issuer hereby instructs the Bank, subject to the
provisions of Section 10 of the Contract Resolution, to deliver
and issue Contracts in exchange for or in lieu of mutilated,
destroyed, lost , or stolen Contracts as long as the same does
not result in an overissuance.
In case any Contract shall be mutilated, or destroyed,
lost or stolen, the Bank, in its discretion, may execute and
deliver a replacement Contract of like form and tenor , and in
the same denomination and bearing a number not
contemporaneously outstanding, in exchange and substitution for
such mutilated Contract , or in lieu of and in substitution for
such destroyed lost or stolen Contract upon approval by the
Issuer and after ( i) the filing by the Contracting Party with
the Bank of evidence satisfactory to the Bank of the
destruction, loss or theft of such Contract , 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 Contract
shall be borne by the Contracting Party to the Contract
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 Contracts it has paid pursuant to Section 3 . 01,
Contracts it has delivered upon the transfer or exchange of any
Contracts pursuant to Section 4 . 01, and Contracts it has
delivered in exchange for or in lieu of mutilated, destroyed,
lost, or stolen Contracts 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 .
-7-
Section 5 . 02 . Reliance on Documents, Etc .
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the opinions expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts .
(c) No provisions of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any of its rights or powers ,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it .
(d) The Bank may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate,
statement , instrument , opinion, report , notice, request,
direction, consent , order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties . Without
limiting the generality of the foregoing statement , the Bank
need not— examine the ownership of any Contracts , but is
protected in acting upon receipt of Contracts containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Contracting Party
or an agent of the Contracting Party. The Bank shall not be
bound to make any investigation into the facts or matters
stated in a resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order,
bond, note, security, or other paper or document supplied by
Issuer .
(e) The Bank may consult with counsel, and the written
advice of such counsel or any opinion of counsel shall be full
and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and
perform any duties hereunder either directly or by or through
agents or attorneys of the Bank.
-8-
Section 5 . 03 . Recitals of Issuer .
The recitals contained herein with respect to the Issuer
and in the Contracts shall be taken as the statements of the
Issuer, and the Bank assumes no responsiblity for their
correctness .
The Bank shall in no event be liable to the Issuer , any
Contracting Party to any Contract, or any other Person for any
amount due on any Contract from its own funds .
Section 5 . 04 . May Hold Contracts .
The Bank, in its individual or any other capacity, may
become the owner or pledgee of Contracts 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.
Money held by the Bank hereunder need not be segregated
from any other funds provided appropriate trust accounts are
maintained in the name and for the benefit of the Issuer .
The Bank shall be under no liability for interest on any
money received by it hereunder .
Any money deposited with the Bank for the payment of any
Contract, including interest thereon, and remaining unclaimed
for four years after final maturity of the Contract has become
due and payable will be paid by the Bank to the Issuer, and the
Contracting Party to such Contract 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.
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 .
-9-
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 Contracts are otherwise qualified and accepted for
"Depository Trust Company" services or equivalent depository
trust services by other organizations , the Bank has the
capability and, to the extent within its control , will comply
with the "Operational Arrangements" , effective August 1, 1987,
which establishes requirements for securities to be eligible
for such type depository trust services , including , but not
limited to, requirements for the timeliness of payments and
funds availability, transfer turnaround time, and notification
of redemptions and calls .
ARTICLE 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 12 .
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Section 6 . 04 . Effect of Headings .
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof .
Section 6 . 05 . Successors and Assigns .
All covenants and agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or not .
Section 6 . 06 . Severability.
In case any provision herein shall be invalid, illegal , or
unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby.
Section 6 . 07 . Benefits of Agreement .
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder .
Section 6 . 08 . Entire Agreement .
This-Agreement and the Contract 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 Contract Resolution, the
Contract 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 Installment Amounts and interest on the
Contracts to the Contracting Parties 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
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029
ORDINANCE NO.
AN ORDINANCE approving and authorizing the execution
and delivery of "CITY OF WYLIE, TEXAS, PUBLIC
PROPERTY FINANCE CONTRACTUAL OBLIGATIONS, SERIES
1988" ; specifying the terms of such contractual
obligations; making provisions for the payment
thereof; and resolving other matters incident
and related to the execution, performance and
payment of such contractual obligations,
including the approval and execution of a
Special Escrow Deposit Agreement for the
acquisition of property and the approval of an
Offering Memorandum; and providing an effective
date.
WHEREAS, pursuant to V.T.C.A. , Local Government Code,
Subchapter A of Chapter 271 (the Public Property Finance Act) ,
the City Council is authorized and empowered to execute,
perform and make payments under contracts with any person for
the use, acquisition or purchase of personal property; and
WHEREAS, in accordance with the provisions of the Public
Property Finance Act, the City Council hereby finds and
determines that the acquisition, use or purchase of certain
items of personal property identified in Exhibit A attached
hereto, or such other pd-rsonal property, appliances, equipment,
furnishings, or interests therein, considered by the City
Council to be necessary, useful and/or appropriate for purposes
of the City, should be financed under and pursuant to one or
more contractual obligations to be executed and delivered on
the terms and in the form hereinafter prescribed; now,
therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS:
SECTION 1 : Contract Authorization - Contract Amount -
Property Identification. Contractual obligations, aggregating
in amount $400, 000 (the "Aggregate Contract Amount") and
entitled "City of Wylie, Texas, Public Property Finance
Contractual Obligations, Series 1988" (the "Contractual
Obligations" or "Contracts") shall be and are hereby authorized
to be executed and delivered with the Initial Contracting Party
(hereinafter identified in Section 14 hereof) , and the assigns
thereof, to finance the use or the purchase or other
acquisition of personal property identified in Exhibit A
attached hereto and incorporated herein by reference as a part
of this Ordinance for all purposes, or such other personal
property, appliances, equipment, furnishings, or interests
therein, considered by the City Council to be necessary, useful
and/or appropriate for purposes of the City (the "Property" ) ;
all in accordance with and pursuant to authority conferred by
the laws of the State of Texas, particularly the Public
Property Finance Act .
SECTION 2: Fully Registered Form - Contract Date -
Authorized Amounts-Installment Payments-Interest Rates . The
Contracts shall be made, executed and delivered in fully
registered form, bear a date of March 15, 1988 (the "Contract
Date" ) , and, except for the Initial Contract authorized in
Section 7 hereof, shall be in authorized amounts of $5, 000 or
any integral multiple thereof (not to exceed an Installment
Amount) , and the Aggregate Contract Amount shall be payable in
annual installments (the "Installment Amounts") on February 15
in the amounts and interest shall accrue on such Installment
Amounts at per annum rate(s) as follows :
Interest
Payment Date Installment Amount Rate(s)
1989 $ 60, 000
1990
75, 000
1991 80, 000
1992 90, 000
1993 95, 000
Interest on the unpaid Installment Amounts shall accrue
from the Contract Date (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 in each year, commencing
February 15, 1989 .
SECTION 3: Terms of Payment-Paying Agent/Registrar.
The Installment Amounts on each Contract and the interest
thereon shall be payable only to the registered contracting
party or person (hereinafter called the "Contracting Party")
appearing on the registration and transfer books (the 'Contract
•
Register") maintained by the Paying Agent/Registrar and such
Installment Amounts and the interest payable thereon shall be
payable in 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 without exchange or collection
charges to the Contracting Party.
The selection and appointment of the MTrust Corp, National
Association to serve as Paying Agent/Registrar for the
Contracts is hereby approved and confirmed. The City covenants
to maintain and provide a Paying Agent/Registrar at all times
until the Contracts are paid and discharged, and any successor
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V /
Paying Agent/Registrar shall be a bank, trust company,
financial institution or other entity qualified to perform the
duties and services of Paying Agent/Registrar . Upon any
change in the Paying Agent/Registrar for the Contracts, the
City agrees to promptly cause a written notice thereof to be
sent to each Contracting Party by United States Mail, first
class postage prepaid, which notice shall also give the address
of the new Paying Agent/Registrar.
The Installment Amounts shall be payable when due only
upon the presentation and surrender of the Contracts to the
Paying Agent/Registrar at its principal offices in Dallas,
Texas (the "Designated Payment/Transfer Office") . Interest on
the Installment Amounts shall be paid to the Contracting
Parties which appear in the Contract 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
Contracting Party recorded in the Contract Register or (ii) by
such other method, acceptable to the Paying Agent/Registrar,
requested by, and at the risk and expense of, the Contracting
Party. If the date for the payment of an Installment Amount or
interest thereon 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 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.
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 Contracting
Party appearing on the Contract Register at the close of
business on the last business day next preceding the date of
mailing of such notice.
SECTION 4 : Non-Optional. The Contracts shall not be
subject to prepayment prior to their Payment Dates at the
option of the City.
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SECTION 5 : Assignment - Registration-Transfer-Exchange
of Contracts. A Contract Register relating to the
registration, payment, and assignment and transfer or exchange
of the Contracts shall at all times be kept and maintained on
behalf of the City by the Paying Agent/Registrar at the
Designated Payment/Transfer Office, as provided herein and in
accordance with the provisions of an agreement with- the Paying
Agent/Registrar and such rules and regulations as the Paying
Agent/Registrar and the City may prescribe. The Paying
Agent/Registrar shall obtain, record, and maintain in the
Contract Register the name and address of each and every
Contracting Party to a Contract executed and delivered under
and pursuant to the provisions of this Ordinance, or if
appropriate, the nominee thereof . Any Contract may be
assigned, transferred or exchanged for Contracts of other
authorized amounts by the Contracting Party, in person or by
his duly authorized agent , upon surrender of such Contract to
the Paying Agent/Registrar at the Designated Payment/Transfer
Office for cancellation, accompanied by a written instrument of
assignment and transfer or request for exchange duly executed
by the Contracting Party or by his duly authorized agent, in
form satisfactory to the Paying Agent/Registrar .
Any Contract to be assigned and transferred shall be
surrendered to the Paying Agent/Registrar at the Designated
Payment/Transfer Office and, upon its receipt and cancellation,
the Paying Agent/Registrar shall register and deliver, in the
name of the designated assignee or transferee, one or more new
Contracts of authorized amounts and, except for the assignment
and transfer of the Initial Contract by the Initial Contracting
Party, having the same Payment Date and of a like Installment
Amount as the Contract or Contracts surrendered for assignment
and transfer.
Contracts may be exchanged for Contracts of other
authorized amounts and, excluding the exchange of the Initial
Contract governed by Section 7 hereof, having the same Payment
Date, bearing the same rate of interest and of like aggregate
Installment Amount as the Contracts surrendered for exchange,
upon surrender of the Contracts to be exchanged to the Paying
Agent/Registrar at the Designated Payment/Transfer Office.
Whenever any Contracts are surrendered for exchange, the Paying
Agent/Registrar shall register and deliver new Contracts to the
Contracting Party requesting the exchange.
When a Contract has been duly assigned and transferred or
exchanged, the new Contract or Contracts registered in such
assignment and transfer or exchange shall be delivered to the
Contracting Party at the Designated Payment/Transfer Office of
the Paying Agent/Registrar or sent by United States Mail, first
class, postage prepaid to the Contracting Party, and, upon the
registration and delivery thereof, such Contracts shall be the
valid obligations of the City, evidencing the same obligation
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to pay, and entitled to the same benefits under this Ordinance,
as the Contracts surrendered in such assignment and transfer or
exchange.
All transfers or exchanges of Contracts pursuant to this
Section shall be made without expense or service charge to the
Contracting Party, except as otherwise herein provided, and
except that the Paying Agent/Registrar shall require payment by
the Contracting Party requesting such transfer or exchange of
any tax or other governmental charges required to be paid with
respect to such transfer or exchange.
Contracts cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Contracts, " evidencing all or a portion, as the
case may be, of the same obligation to pay evidenced by the new
Contract or Contracts registered and delivered in the exchange
or transfer therefor . Additionally, the term "Predecessor
Contracts" shall include any mutilated, lost, destroyed, or
stolen Contract for which a replacement Contract has been
registered and delivered in lieu thereof pursuant to the
provisions of Section 10 hereof and such new replacement
Contract shall be deemed to evidence the same obligation as the
mutilated, lost, destroyed, or stolen Contract .
SECTION 6 : Execution - Registration. The Contracts
shall be executed on behalf of the City by the Mayor or Mayor
Pro Tem, with the seal of the City reproduced or impressed
thereon and countersigned by the City Secretary. The signature
of such officers on the Contracts may be manual or facsimile.
Contracts bearing the manual or facsimile signatures of the
persons holding such offices on the Contract Date shall be
deemed to be duly executed on behalf of the City,
notwithstanding a change in persons holding such offices at the
time of delivery of the Contracts to the Initial Contracting
Party and with respect to Contracts delivered in subsequent
assignments and transfers or exchanges .
No Contract shall be entitled to any right or benefit
under this Ordinance, or be valid or obligatory for any
purpose, unless the registration certificate appearing on the
Contracts to be signed by the Comptroller of Public Accounts of
the State of Texas (substantially in the form provided in
Section 8C) and/or the Paying Agent/Registrar (substantially in
the form provided in Section 8D) , either or both such
certificates, as the case may be, are manually executed by an
authorized officer, employee or representative of the
Comptroller of Public Accounts and/or the Paying
Agent/Registrar, and such registration certificate, either or
both, upon any Contract when duly executed by the Comptroller
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J#5/
of Public Accounts and/or the Paying Agent/Registrar, as the
case may be, shall be conclusive evidence, and the only
evidence, that such Contract has been duly certified,
registered and delivered.
SECTION 7: Initial Contract . The Contracts herein
authorized may be initially executed and delivered as a single
fully registered Contract in the Aggregate Contract Amount with
Installment Amounts to become due and payable as provided in
Section 2 hereof and numbered T-1 and registered in the name of
the Initial Contracting Party or the designee thereof . Such
single fully registered Contract shall be 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 Contracting Party. Any time after the
delivery of such single fully registered Contract, the Paying
Agent/Registrar, pursuant to written instructions from the
Initial Contracting Party, shall cancel such obligation and
exchange therefor Contracts of authorized amounts and in
Installment Amounts with Payment Dates and bearing applicable
interest rates for transfer and delivery to the Contracting
Parties named at the addresses identified therefor; all
pursuant to and in accordance with such written instructions
from the Initial Contracting Party and such other information
and documentation as the Paying Agent/Registrar may reasonably
require.
SECTION 8 : Forms . A. Forms Generally. The
Contracts, 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 the Contracts, 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 and such legends and endorsements (including any
reproduction of an opinion of counsel) thereon as may,
consistently herewith, be determined by the officers executing
and delivering such Contracts as evidenced by their execution.
The Contracts shall be printed, lithographed, or engraved
or produced in any other similar manner, all as determined by
the officers executing such Contracts as evidenced by their
execution, but the single fully registered obligation
authorized in Section 7 hereof may be typewritten or
photocopied or otherwise reproduced.
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B . General Contract Form.
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF WYLIE, TEXAS,
PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATION
SERIES 1988
Contract Date: Interest Rate: Payment Date: CUSIP NO:
March 15, 1988
Contracting Party:
Installment 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, hereby agrees and promises to pay to
the order of the Contracting Party named above, or the
registered assigns thereof, the Installment Amount hereinabove
stated on the Payment Date specified above (without right of
prepayment) and to pay interest on such unpaid Installment
Amount from the Contract 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,
1989 . The Installment Amount is payable on the Payment Date
noted above to the Contracting Party upon presentation and
surrender of this Contract to the Paying Agent/Registrar
executing the registration certificate appearing hereon at the
Designated Payment/Transfer Office, or its successor. Interest
is payable to the Contracting Party of this obligation (or one
or more Predecessor Contracts, as defined in the Ordinance
hereinafter referenced) who appears on the "Contract 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
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V 6
address of such Contracting Party recorded in the Contract
Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the Contracting Party. The Installment Amount of this Contract
and interest thereon shall be paid without exchange or
collection charges to the Contracting Party 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 Contract is one of a number of contracts aggregating
in amount $400, 000 (herein referred to as the "Contracts" ) ,
executed and delivered to finance the acquisition, use or
purchase of personal property, under and in strict conformity
with the Constitution and laws of the State of Texas,
particularly the Public Property Finance Act (V.T.C.A. , Local
Government Code, Subchapter A of Chapter 271) and pursuant to
an Ordinance adopted by the City Council of the City (herein
referred to as the "Ordinance") .
This Contract is an obligation of the City payable from
the pledged proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property in the
City and, until disbursed for the acquisition of Property,
amounts held in a special escrow account created and to be
maintained under and pursuant to a Special Escrow Deposit
Agreement, dated March 15, 1988 (the "Special Escrow Deposit
Agreement" ) by and between the City and the First State Bank,
Wylie, Texas . 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 Contracting Party by the acceptance
hereof hereby agrees, for definitions of terms; the description
of and the nature and extent of the taxes pledged for the
payment of the Contracts; the provisions of the Special Escrow
Deposit Agreement relating to the receipt, safekeeping and
disbursement of funds for the acquisition of the Property; the
terms and conditions relating to the assignment and transfer of
this Contract; the conditions upon which the Ordinance may be
amended or supplemented with or without the consent of the
Contracting Parties; the rights, duties, and obligations of the
City and the Paying Agent/Registrar; the terms and provisions
upon which this Contract may be discharged at or prior to its
Payment Date, and the obligation evidenced by the Contracts
cease to exist as an obligation of the City; and for other
terms and provisions contained therein. Capitalized terms used
herein have the meanings assigned in the Ordinance.
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V
This Contract , subject to certain limitations contained in
the Ordinance, may be assigned and transferred on the Contract
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 party hereof, or his duly authorized agent . When
a transfer on the Contract Register occurs, one or more new
fully registered Contracts with the same Payment Date, in
authorized amounts , bearing the same rate of interest , and of
the same Installment Amount will be delivered by the Paying
Agent/Registrar to the designated assignee or assignees .
The City and the Paying Agent/Registrar, and any agent of
either, shall treat the registered party whose name appears on
the Contract Register ( i) on the Record Date as the Contracting
Party entitled to payment of interest hereon, (ii) on the date
of surrender of this Contract as the Contracting Party entitled
to payment of the Installment Amounts on the Payment Date, and
(iii) on any other date as the Contracting Party to notify 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. 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 Contracting Party appearing on the
Contract 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 execution
and delivery of the Contracts is duly authorized by law; that
all acts, conditions and things required to exist and be done
precedent to and in the execution and delivery of the Contracts
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;
and that due provision has been made for the payment of the
Contracts and interest thereon as aforestated. In case any
provision in this Contract shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of
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3
the remaining provisions shall not in any way be affected or
impaired thereby. The terms and provisions of this Contract
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 Contract to be duly executed under the official
seal of the City as of the Contract Date.
CITY OF WYLIE, TEXAS
ATTEST: Mayor
City Secretary
(SEAL)
C. *Form of Registration Certificate of Comptroller
of Public Accounts to appear on Single Fully
Registered Contract delivered to Initial Contractor .
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 Contract 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: Omit on Printed Contracts
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D. Form of Certificate of Paying Agent/Registrar to
appear on Contracts .
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Contract has been duly delivered and registered under
the provisions of the within-mentioned Ordinance; the contract
or contracts initially executed and delivered by the City
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 principal offices of the Paying Agent/Registrar
located in Dallas, Texas is the "Designated Payment/Transfer
Office" for this Contract .
MTRUST CORP, NATIONAL ASSOCIATION
as Paying Agent/Registrar
Registration Date:
By
Authorized Signature
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 Contract and all rights
thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Contract 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 party
as it appears on the face of the
within Contract in every
particular.
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F. The Initial Contract shall be in the form set forth in
paragraph B of this Section, except that the form of the
single fully registered Initial Contract shall be modified
as follows:
(i) immediately under the headings "Interest Rate
and "Payment Date " shall both be completed
"as shown below" ;
(ii) Paragraph one shall read as follows :
Contracting Party:
Contract 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, hereby agrees and promises to pay to
the order of the Contracting Party named above, or the
registered assigns thereof, the Contract Amount hereinabove
stated on the Payment Dates and in Installment Amounts in
accordance with the following schedule:
INTEREST
PAYMENT DATES INSTALLMENT AMOtLNTS RATE
(Information to be inserted from
schedule in Section 2 hereof) .
(without right of prepayment) and to pay interest on such
unpaid Installment Amounts from the Contract Date at the per
annum rates 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, 1989 . The Installment Amounts are
payable on the Payment Dates noted above to the Contracting
Party named above or the assigns thereof, by MTrust Corp,
National Associtaion (the "Paying Agent/Registrar") , upon
presentation and surrender of this obligation, at its principal
offices in Dallas, Texas (the "Designated Payment/Transfer
Office" of the Paying Agent/Registrar) . Interest is payable to
the Contracting Party whose name appears on the "Contract
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 Contracting Party recorded in the Contract
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Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of ,
the Contracting Party. The Installment Amounts of this
Contract and interest thereon shall be paid without exchange or
collection charges to the Contracting Party 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 9 : Levy of Taxes . To provide for the payment
of the Installment Amounts to become due and payable and the
payment of the interest thereon, 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 shall be at a rate from year to year as
will be ample and sufficient to provide funds each year to pay
(i) the Installment Amounts to become due and payable or an
amount equal to 2% of the Aggregate Contract Amount (whichever
is the greater) and ( ii) the accrued interest on the
Installment Amounts to become due and payable; full allowance
being made for delinquencies and costs of collection. Full ,
complete and accurate books and records relating to the receipt
and disbursement of taxes levied, assessed and collected for
and on account of the Contracts shall be kept and maintained by
the City at all times while the Contracts are Outstanding, and
the taxes collected annually for the payment of the Contracts
shall be deposited to the credit of a "Special 1988 Contracts
Fund" (the "Sinking Fund") maintained on the records of the
City and 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 Contracts .
Proper officers of the City are hereby authorized and
directed to cause to be transferred to the Paying Agent/
Registrar, from funds on deposit in the Sinking Fund, amounts
sufficient to fully pay and discharge promptly each Installment
Amount and interest on the Contracts as the same accrues or
becomes due and payable; such transfer 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 Payment Date and
each interest payment date for the Contracts .
SECTION 10 : Mutilated - Destroyed - Lost and Stolen
Contracts. In case a Contract shall be mutilated, or
destroyed, lost or stolen, the Paying Agent/Registrar may
execute and deliver a replacement Contract of like form and
tenor, and in the same authorized amount and bearing a number
not contemporaneously outstanding, in exchange and substitution
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for such mutilated Contract , or in lieu of and in substitution
for such destroyed, lost or stolen Contract , only after ( i) the
filing by the Contracting Party with the Paying Agent/Registrar
of evidence satisfactory to the Paying Agent/Registrar of the
destruction, loss or theft of such Contract, 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 Contract shall be borne by the Contracting Party of
the Contract mutilated, or destroyed, lost or stolen.
Every replacement Contract 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 Contracts; notwithstanding the
enforceability of payment by anyone of the destroyed, lost, or
stolen Contracts .
SECTION 11 : Satisfaction of Obligation of City. If the
City shall pay or cause to be paid, or there shall otherwise be
paid to the Contracting Parties, the Installment Amounts,
together with the accrued interest thereon, 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
Contracting Parties shall thereupon cease, terminate, and be
discharged and satisfied.
The Contracts 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 the Installment
Amounts as the same shall become due and payable on the Payment
Dates, 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 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 Installment Amounts and accrued
interest on and prior to each Payment Date. 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 Contracts to be treated as "arbitrage
obligations" within the meaning of Section 148 of the Internal
Revenue Code of 1986, as amended, or regulations adopted
pursuant thereto .
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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 in
excess of the amounts required for the payment of the Contracts
in accordance with the defeasance provisions shall be remitted
to the City or deposited as directed by the City.
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
direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United
States of America, which are non-callable prior to the
respective Payment Dates , as the case may be, for the Contracts
and may be United States Treasury Obligations such as the State
and Local Government Series and may be in book-entry form.
SECTION 12 : Ordinance a Contract -Amendments - Outstanding
Contracts . This Ordinance shall constitute an agreement with
the Contracting Parties from time to time, be binding on the
City, and shall not be amended or repealed by the City so long
as any of the Contracts remain Outstanding except as permitted
in this Section. The City may, without the consent of or
notice to any Contracting Parties, from time to time and at any
time, amend this Ordinance in any manner not detrimental to the
interests of the Contracting Parties , including the curing of
any ambiguity, inconsistency, or formal defect or omission
herein. In addition, the City may, with the consent of
Contracting Parties to Contracts which are Outstanding and
represent 51% or more of the aggregate Installment Amounts
affected thereby, amend, add to, or rescind any of the
provisions of this Ordinance; provided that, without the
consent of Contracting Parties of all Contracts which are
Outstanding, no such amendment, addition, or rescission shall
(1) extend the time or times of payment of the Installment
Amounts and interest on the Contracts, reduce the Installment
Amounts, or the rate of interest thereon, or in any other way
modify the terms of payment of . the Contracts, (2) give any
preference to any Contract over any other Contract, or
(3) reduce the aggregate Installment Amount of Contracts
required to be held for consent to any such amendment,
addition, or rescission.
The term "Outstanding" when used in this Ordinance with
respect to Contracts means, as of the date of determination,
all Contracts theretofore delivered and registered under this
Ordinance, except :
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( 1) those Contracts cancelled or delivered to
the Paying Agent/Registrar for cancellation;
(2) those Contracts for which the
Installment Amounts and all interest payable
thereon has been paid or is deemed to be fully
paid in accordance with the provisions of
Section 11 hereof; and
(3) those mutilated, destroyed, lost, or
stolen Contracts for which replacement obligations
have been registered and delivered in lieu thereof
as provided in Section 10 hereof .
SECTION 13 : Covenants to Maintain Tax-Exempt Status . The
City shall not use, permit the use of , or omit to use Gross
Proceeds or any other amounts (or any personal property the
acquisition or purchase 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 payable on the
Installment Amount of the Contracts to become includable in the
gross income, as defined in section 61 of the Code, of the
owners thereof for federal income tax purposes . Without
limiting the generality of the foregoing , unless and until the
City shall have received 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 pursuant to Section 103 of the Code, the City agrees,
covenants and represents that :
(a) Definitions. When used in this Section, the
following terms have the following meanings:
"Code" means the Internal Revenue Code of 1986,
as amended by all legislation, if any, enacted on or
before the Issue Date.
"Gross Proceeds" when used with respect to the
Contracts or any other type of obligations of the
City, means original proceeds, amounts received
(including repayments of principal) as a result of
investing the original proceeds, transferred
proceeds, sinking fund proceeds, amounts invested in
a reasonably required reserve or replacement fund,
securities or obligations pledged by the City as
security for payment of the Contracts or such other
type of obligations, and any other amounts used to
pay the Contracts or such other type of obligations,
together with earnings from the investment of the
foregoing .
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"Investment" means
(1) a share of stock in a corporation or a
right to subscribe for or to receive such a
share,
(2) any obligation, including United
States Treasury bonds, notes, and bills and bank
deposits , whether or not certified or interest
bearing, but excluding obligations the interest
on which is, in the opinion of counsel
nationally recognized in the field of municipal
bond law, excludable from the gross income of
any owner thereof under the Code or the Internal
Revenue Code of 1954 , as amended to the date of
issuance of such obligations,
(3) any annuity contract, or any other
deferred payment contract acquired to fund an
obligation of the City, or
(4) any other property held for investment .
"Issue Date" means the date the Contracts are
first authenticated and delivered to the Initial
Contracting Party.
"Issue Price" for the Contracts is the price
paid by the first buyer of the Contracts (exclusive
of underwriters, dealers, bondhouses, brokers, and
similar persons or organizations acting in the
capacity of underwriters or wholesalers) .
"Nonpurpose Investment" means any Investment in
which Gross Proceeds of the Contracts are invested
and which is not acquired to carry out the
governmental purpose of the Contracts .
"Purchase Price" of any Investment means
(1) if a United States Treasury obligation
acquired directly from the United States
Treasury, the amount paid therefor,
(2) if a certificate of deposit issued by
a commercial bank, the bona fide bid price
quoted by a dealer who maintains an active
secondary market in such certificates of
deposit, and
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(3) otherwise, generally the mean of the
bid price and the offered price therefor on an
established market on the day on which such
Investment is purchased or contracted for or, if
there are no bid prices and offered prices on
such date, on the first day preceding such date
for which there are bid prices and offered
prices .
"Yield" of
( 1) any Investment means the discount
factor which, when used in computing the present
value of all scheduled payments of principal of
and interest on such Investment on the date such
Investment is purchased with Gross Proceeds or
otherwise allocated to Gross Proceeds, results
in an amount equal to the Purchase Price thereof
(but excluding any commissions) , compounding
semiannually, and
(2) the Contracts means the discount
factor which, when used in computing the present
value on the Issue Date of all scheduled
payments of Installment Amounts and interest
thereon, results in an amount equal to aggregate
Issue Prices of the Contracts with the same
Payment Date, compounding semiannually.
(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 Installment Amount payable on the Contracts,
(1) exclusively own, operate, and possess all
the personal property acquired or purchased directly
or indirectly with Gross Proceeds of the Contracts and
not use or permit the use of such Gross Proceeds or
any property acquired with such Gross Proceeds in any
activity carried on by any person or entity other than
a state or local government, unless such use is solely
as a member of the general public, or
(2) not directly or indirectly impose or accept
any charge or other payment for use of Gross Proceeds
of the Contracts or any property acquired or purchased
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 .
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(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
Contracts 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 or
purchased 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 or purchased with
such Gross Proceeds are otherwise transferred in a transaction
which is the economic equivalent of a loan.
(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 payment of Installment Amounts of the Contracts,
directly or indirectly invest Gross Proceeds of the Contracts
in any Investment (or use such Gross Proceeds to replace money
so invested) , if as a result of such investment the Yield from
the Issue Date of all Investments acquired with such Gross
Proceeds (or with money replaced thereby) whether then held or
previously disposed of, exceeds the Yield of the Contracts .
(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 Contracts 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 with
the Secretary of the Treasury the information required by
section 149(e) of the Code with respect to the Contracts on
such form and in such place as such 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 Contracts
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;
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(2) at least 95% of the Gross Proceeds of the
Contracts will be used for the 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 1988 is not reasonably expected to
exceed $5, 000, 000.
SECTION 14 : Contracting Party - Special Escrow
Deposit Agreement . The Contracts herein authorized shall be
initially executed and delivered to
(herein referred to as the
"Initial Contracting Party") against payment of the Aggregate
Contract Amount plus accrued interest thereon from the Contract
Date to the date of payment of such Aggregate Contract Amount .
Immediately following the delivery of the Contracts to the
Initial Contracting Party and in consideration of the
advancement of the Aggregate Contract Amount for the
acquisition or purchase of the Property by the Initial
Contracting Party, the Aggregate Contract Amount shall be
deposited in an escrow fund for safekeeping and disbursement in
accordance with the provisions of the "Special Escrow Deposit
Agreement" (the "Agreement" ) by and between the City and the
First State Bank, Wylie, Texas (the "Escrow Agent") , attached
hereto as Exhibit B and incorporated herein by reference as a
part of this Ordinance for all purposes, and such Agreement in
substantially the form and substance attached hereto, together
with such changes or revisions as may be necessary to provide
for the safekeeping of such funds and the disposition thereof
for the purchase or acquisition of the Property identified in
Exhibit A, is hereby approved and authorized to be executed by
the Mayor and City Secretary for and on behalf of the City and
as the act and deed of this City Council; and such Agreement as
executed by said officials shall be deemed approved by the City
Council and constitute the Agreement herein approved. The
accrued interest received from the Initial Contracting Party
shall be deposited to the credit of the Sinking Fund and
expended to pay the initial interest payment on the Contracts .
SECTION 15: Qualified Tax Exempt Obligations . That in
accordance with the provisions of paragraph 3 of subsection b
of Section 265 of the Code, the City hereby designates the
Contracts to be "qualified tax exempt obligations" in that the
Contracts are not "private activity bonds" as defined in the
Code and the reasonably anticipated amount of "qualified tax
exempt obligations" to be issued by the City (including all
subordinate entities of the City) for the calendar year 1988
will not exceed $10,000,000.
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SECTION 16 : Offering Memorandum. The Offering
Memorandum prepared in the private placement of the Contracts
by the City, together with all addendas, supplements and
amendments thereto issued on behalf of the City, is hereby
approved as to form and content, and the City Council hereby
finds that the information and data contained in said Offering
Memorandum 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 .
SECTION 17 : Control and Custody of Records and Contract
Documents . The Mayor of the City shall be and is hereby
authorized to take and have charge and control of all necessary
orders, records , proceedings , including the Contracts, pending
the investigation and approval of such documents by the
Attorney General of the State of Texas, the registration of the
Contracts by the Comptroller of Public Accounts and their
delivery to the Initial Contracting Party.
Furthermore, the Mayor and City Secretary of the City and
the 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 execution and delivery of the Contracts, including
certifications as to facts, estimates , circumstances and
reasonable expectations pertaining to the use, expenditure and
investment of the proceeds thereof , as may be necessary for the
approval of the Attorney General , the registration by the
Comptroller of Public Accounts and the delivery of the
Contracts to the Initial Contracting Party, and, together with
the City' s financial advisor, bond counsel and the Paying
Agent/Registrar, make the necessary arrangements for the
delivery of such obligations to the Initial Contracting Party.
SECTION 18 : Notices to Contracting Parties-Waiver.
Wherever this Ordinance provides for notice to Contracting
Parties 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 Contracting Party appearing in the Contract
Register at the close of business on the business day next
preceding the mailing of such notice.
In any case where notice to Contracting Parties is given
by mail, neither the failure to mail such notice to any
particular Contracting Party, nor any defect in any notice so
mailed, shall affect the sufficiency of such notice with
respect to all other Contracts . Where this Ordinance provides
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for notice in any manner, such notice may be waived in writing
by the Contracting Party 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 a Contracting Party 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 19 : 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 Contracting Parties , 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 Contracting Parties .
SECTION 20: 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.
SECTION 21 : Governing Law. This Ordinance and the
Contracts authorized to be executed and delivered hereunder
shall be construed and enforced in accordance with the laws of
the State of Texas and the United States of America .
SECTION 22 : Effect of Headings . The Section headings
herein are for convenience only and shall not affect the
construction hereof .
SECTION 23 : 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 24 : 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.
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SECTION 25 : 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 Article 6252-17, Vernon' s Texas Civil
Statutes, as amended.
SECTION 26 : Effective Date. This Ordinance shall be in
full force and effect from and after its passage on the date
shown below and it is so ordained.
PASSED AND ADOPTED, this March 8, 1988 .
CITY OF WYLIE, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
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EXHIBIT "A"
LIST OF PROPERTY
Number of Items to be Description of Estimated
Purchased or Acquired Property Cost
1 Bomag Street Reconditioner $275, 000
1 Backhoe 40, 000
1 Motor Grader 40, 000
1 Sewer Pump Truck 38 , 000
53
EXHIBIT B
SPECIAL ESCROW DEPOSIT AGREEMENT
THE STATE OF TEXAS §
§
COUNTY OF DALLAS §
THIS SPECIAL ESCROW DEPOSIT AGREEMENT, dated as of
March 15 , 1988, made by and between the City of Wylie, Texas , a
governmental agency, body politic and corporate and political
subdivision of the State of Texas in Collin County, Texas, (the
"City" ) acting by and through the Mayor and City Secretary and
the First State Bank, Wylie, Texas (the "Escrow Agent") , a
banking association organized and existing under the laws of
the State of Texas ,
W I T N E S S E T H :
WHEREAS, pursuant to V.T.C.A. , Local Government Code,
Subchapter A of Chapter 271 (the Public Property Finance Act) ,
the City Council is authorized and empowered to execute,
perform and make payments under contracts with any person for
the use, acquisition or purchase of personal property; and
WHEREAS, the—City Council of the City has adopted an
ordinance (the "Ordinance" ) on the 8th day of March, 1988,
providing for the execution and delivery of "City of Wylie,
Texas, Public Property Finance Contractual Obligations, Series
1988" (the "Contracts") , aggregating in amount $400, 000 (the
"Aggregate Contract Amount") , and in return for the execution
and delivery of such Contracts, the Aggregate Contract Amount
will be advanced for the purchase or acquisition of personal
property identified in Exhibit A attached hereto, or such other
personal property, appliances, equipment, furnishings or
interests therein, considered by the City Council to be
necessary, useful and/or appropriate for purposes of the City
(the "Property") ; and
WHEREAS, the Ordinance further approved and authorized
the execution of this Agreement to provide for the deposit,
safekeeping and disbursement of the Aggregate Contract Amount
advanced by the parties contracting with the City for the
purpose of the acquisition or purchase of the Property; and
WHEREAS, the Escrow Agent is a banking association
organized and existing under the laws of the State of Texas,
possessing trust powers and is fully qualified and empowered to
enter into this Agreement;
Lc
NOW, THEREFORE, in consideration of the mutual
undertakings, promises and agreements herein contained and in
consideration of Ten Dollars ($10 . 00) duly paid by the City to
the Escrow Agent concurrently herewith, the receipt of which is
hereby acknowledged, the City and the Escrow Agent mutually
agree as follows :
ARTICLE I
DEFINITIONS AND INTERPRETATIONS
SECTION 1 . 01 . Definitions . Unless the context clearly
indicates otherwise, the following terms shall have the
meanings assigned to them below when they are used in this
Agreement :
"Authorized Representative" shall mean with respect to
the City, the Mayor, City Secretary, City Manager or Director
of Finance or such other official or employee of the City as
may be designated in a resolution adopted by the City Council
of the City and filed with the Escrow Agent .
"Authorized Investments" shall mean those securities or
obligations identified and specified in the "Public Funds
Investment Act of 1987" , including all amendments thereto.
"Escrow Fund" means the special fund or account
established with the Escrow Agent pursuant to the provisions of
this Agreement for the deposit and safekeeping of the
"Aggregate Contract Amount" .
SECTION 1 . 02 . Other Definitions . The terms
"Agreement" , "City" , "Escrow Agent" , "Aggregate Contract
Amount" , "Contracts" , "Ordinance" , and "Property" , when they
are used in this Agreement, shall have the meanings assigned to
them in the preamble of this Agreement . Furthermore,
capitalized terms not otherwised defined herein shall have the
same meanings assigned thereto in the Ordinance.
SECTION 1. 03 . Interpretations . The titles and headings
of the articles and sections of this Agreement have been
inserted for convenience and reference only and are not to be
considered a part thereof and shall not in any way modify or
restrict the terms hereof . Words of the singular number shall
be considered to include the plural, words of the plural number
shall be construed to include the singular and words of the
masculine, feminine and neuter genders shall be construed to
include the other genders . This Agreement and all of the terms
and provisions hereof shall be liberally construed to
effectuate the purposes set forth herein and to achieve the
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intended purpose of providing for ( i ) the receipt and
safekeeping of the Aggregate Contract Amount advanced by the
Contracting Parties to the City and ( ii) the disbursement of
such Aggregate Contract Amount in accordance with the terms of
this Agreement .
ARTICLE II
ESCROW FUND
SECTION 2 . 01 . Escrow Fund Creation. A special
segregated and irrevocable trust fund to be known as the
"Special Public Property Contractual Obligation Escrow
Fund/City of Wylie, Texas/Series 1988" (hereinafter called the
"Escrow Fund" ) shall be and is hereby established and shall be
maintained by the Escrow Agent for the receipt, deposit ,
administration and safekeeping of the Aggregate Contract Amount
pending its use, disbursement and withdrawal ; all in accordance
with and in strict conformity with the provisions of this
Agreement .
SECTION 2 . 02 . Escrow Fund Deposit . Immediately
following the receipt of the Aggregate Contract Amount , the
City agrees and covenants to deposit to the credit of the
Escrow Fund all of the Aggregate Contract Amount and the Escrow
Agent agrees to receive and deposit such Aggregate Contract
Amount to the credit of the Escrow Fund and hold such funds for
application and disbursement for the purposes and in the manner
prescribed in this Agreement .
SECTION 2 . 03 . Escrow Fund Characterization. (a) The
Escrow Agent shall hold such Aggregate Contract Amount,
together with income, profits and interest realized from
investing such funds, at all times as a special and separate
trust fund wholly segregated from other moneys and securities
on deposit with the Escrow Agent; shall never commingle the
funds held in the Escrow Fund with other moneys or securities
of the Escrow Agent; and shall hold and dispose of the assets
therein only as set forth herein. Nothing herein contained
shall be construed as requiring the Escrow Agent to keep the
identical moneys, or any part thereof, in said Escrow Fund, if
it is impractical, but moneys of an equal amount, except to the
extent such are represented by the Authorized Investments ,
shall always be maintained on deposit in the Escrow Fund by the
Escrow Agent, as trustee; and a special account evidencing such
facts shall at all times be maintained on the books of the
Escrow Agent .
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(b) Legal ownership of or title to all funds or the
Authorized Investments deposited or held for the account of the
Escrow Fund shall be in the Contracting Parties to the
Contracts with equitable or beneficial ownership or title
vested in the vendors or sellers of the Property, and such
legal and beneficial owners as their respective interests may
be determined shall be entitled to a preferred claim and shall
have a first lien upon such funds and Authorized Investments in
the Escrow Fund until paid out , used and applied in accordance
with this Agreement . The funds and Authorized Investments
received by the Escrow Agent under this Agreement shall not be
considered as a banking deposit and the Escrow Agent and the
City shall have no right or title with respect thereto, except
as otherwise provided herein.
SECTION 2 . 04 . Escrow Fund Security. The Escrow Agent
shall continuously secure the monies in the Escrow Fund not
invested in Authorized Investments by a pledge of direct
obligations of the United States of America, in the par or face
amount at least equal to the amount of such uninvested monies
and to the extent such money is not insured by the Federal
Deposit Insurance Corporation. Such securities shall be
deposited with the Escrow Agent or, with the approval of the
City, may be held in safekeeping and custody by a third party
banking institution or trust company.
SECTION 2 . 05 . Escrow Fund Withdrawal . (a) The
Aggregate Contract Amount , together with the income, earnings
and receipts thereon from Authorized Investments, held in the
Escrow Fund shall be disbursed or withdrawn only for one of the
following purposes : (i) the payment of the acquisition or
purchase price of Property, (ii) the payment of fees and costs
incurred in connection with the execution and delivery of the
Contracts or (iii) deposited to the credit of the Sinking Fund
for the payment of the Contracts, and only upon receipt of a
written requisition from an Authorized Representative in
substantially the form and substance of Exhibit B attached
hereto, duly executed and completed in all respects . The
Escrow Agent shall retain on file copies of such written
requisitions for which a disbursement or withdrawal of funds is
made. The Aggregate Contract Amount, together with the income,
earnings and interest received from Authorized Investments,
shall not be subject to checks, drafts or warrants drawn by the
City.
(b) The City shall have the right to make additions or
changes to the items of Property identified in Exhibit A
attached hereto whenever the City Council of the City deems
such additions or changes are necessary and appropriate and
that the costs of acquiring or purchasing such additional or
substituted Property will not cause a shortage of funds in the
-4-
37
Escrow Fund for any items of Property in process of being
acquired or purchased and the payment of which is dependent
upon having sufficient funds in the Escrow Fund. Prior to a
disbursement or withdrawal of funds from the Escrow Fund to pay
for an item of Property not listed or identified in Exhibit A,
a certified copy of a resolution or order by the City Council
of the City making the findings and determinations noted above
and approving the purchase or acquisition of such additional or
substituted Property shall be filed with the Escrow Agent ,
together with the written requisition from an Authorized
Representative required in subparagraph (a) above of this
section. Any substituted Property or additional Property shall
be "Personal Property" within the meaning of, and as defined
in, the Public Property Finance Act .
SECTION 2 . 06 . Escrow Fund Authorized Investments . All
money held by the Escrow Agent pursuant to this Agreement shall
be deposited or invested only in Authorized Investments and
only at the direction of the Authorized Representative of the
City. The City intends that such funds shall be invested in
Authorized Investments so as to obtain the highest yield
practicable, having due regard for the maintenance of the
tax-exempt status of interest on the Contracts from federal
income taxes, the safety of such funds and the date when such
funds will be required for uses and purposes specified in this
Agreement . The City shall direct any investments made by the
Escrow Agent by letter from an Authorized Representative,-.
All interest and other income received from the
investment of moneys held in the Escrow Fund shall be retained
in the Escrow Fund until disbursed or withdrawn in accordance
with Section 2 . 05 hereof .
The Escrow Agent shall not be liable for any loss
resulting from the making or disposition of any investment
pursuant to this section, and any such losses shall be charged
to the Escrow Fund.
ARTICLE III
RECORDS AND REPORTS
SECTION 3 . 01 . Records . The Escrow Agent will keep
books of record and account in which complete and correct
entries shall be made of all transactions relating to the
receipts, disbursements, allocations and application of the
money and Authorized Investments deposited to the Escrow Fund
and all proceeds thereof, and such books shall be available for
inspection at reasonable hours and under reasonable conditions
by the City and the Contracting Parties to the Contracts .
-5-
SECTION 3 . 02 . Reports . While this Agreement remains in
effect , the Escrow Agent annually shall prepare and send to the
City a written report summarizing all transactions relating to
the Escrow Fund during the preceding year, together with a
detailed statement of all Authorized Investments and the cash
balance on deposit in the Escrow Fund as of the end of such
period.
ARTICLE IV
CONCERNING THE ESCROW AGENT
SECTION 4 . 01 . Representations . The Escrow Agent hereby
represents that it has all necessary power and authority to
enter into this Agreement and undertake the obligations and
responsibilities imposed upon it herein, and that it will carry
out all of its obligations hereunder .
SECTION 4 . 02 . Limitation on Liability. The Escrow
Agent makes no representations as to the value, conditions or
sufficiency of the Escrow Fund, or any part thereof, or as to
the title of the City thereto, or as to the security afforded
thereby or hereby, and the Escrow Agent shall not incur
liability or responsibility in respect to any of such matters .
It is the intention of the parties hereto that the
Escrow Agent shall never be required to use or advance its own
funds or otherwise incur personal financial liability in the
performance of any of its duties or the exercise of any of its
rights and powers hereunder.
The Escrow Agent shall not be liable for any action
taken or neglected to be taken by it in good faith in any
exercise of reasonable care and believed by it to be within the
discretion or power conferred upon it by this Agreement, nor
shall the Escrow Agent be responsible for the consequences of
any error of judgment; and the Escrow Agent shall not be
answerable except for its own action, neglect or default, nor
for any loss unless the same shall have been through its
negligence or want of good faith.
Unless it is specifically otherwise provided herein, the
Escrow Agent has no duty to determine or inquire into the
happening or occurrence of any event or contingency or the
performance or failure of performance of the City with respect
to arrangements or contracts with others, with the Escrow
Agent ' s sole duty hereunder being to safeguard the Escrow Fund,
to dispose of and deliver the same in accordance with this
Agreement . If, however, the Escrow Agent is called upon by the
terms of this Agreement to determine the occurrence of any
-6-
event or contingency, the Escrow Agent shall be obligated, in
making such determination, only to exercise reasonable care and
diligence, and in event of error in making such determination
the Escrow Agent shall be liable only for its own misconduct or
its negligence. In determining the occurrence of any such
event or contingency the Escrow Agent may request from the City
or any other person such reasonable additional evidence as the
Escrow Agent in its discretion may deem necessary to determine
any fact relating to the occurrence of such event or
contingency, and in this connection may make inquiries of, and
consult with, among others , the City at any time.
SECTION 4 . 03 . Rights of Interpleader . In the event of
any disagreement or controversy hereunder or if conflicting
demands or notices are made upon the Escrow Agent growing out
of or relating to this Agreement or in the event that the
Escrow Agent in good faith is in doubt as to what action should
be taken hereunder , the City expressly agrees and consents that
the Escrow Agent shall have the absolute right at its election
to :
(a) Withhold and stop all further
proceedings in, and performance of, this Agreement
with respect to the issue in question and of all
instructions received hereunder in regard to such
issue; and
(b) File a suit in interpleader and obtain
an order from a court of appropriate jurisdiction
requiring all persons involved to interplead and
litigate in such court their several claims and
rights among themselves .
SECTION 4 . 04 . Successor Escrow Agent . If at any time
the Escrow Agent or its legal successor or successors should be
unable, through operation of law or otherwise, to act as escrow
agent hereunder, or if its property or affairs shall be taken
under the control of any state or federal court or
administrative body because of insolvency or bankruptcy or for
any other reason, a vacancy shall forthwith exist in the office
of the Escrow Agent hereunder . In such event the City, by
appropriate action, promptly shall appoint an Escrow Agent to
fill such vacancy. If no successor escrow agent shall have
been appointed by the City within 60 days, a successor may be
appointed by the Contracting Parties to Contracts representing
at least 51% of unpaid Aggregate Contract Amount by an
instrument or instruments in writing filed with the City,
signed by such Contracting Parties or by their duly authorized
attorneys-in-fact . If, in a proper case, no appointment of a
successor escrow agent shall be made pursuant to the foregoing
provisions of this section within three months after a vacancy
-7-
O
shall have occurred, the Contracting Party to any Contract may
apply to any court of competent jurisdiction to appoint a
successor escrow agent. Such court may thereupon, after such
notice, if any, as it may deem proper, prescribe and appoint a
successor escrow agent .
Any successor escrow agent shall be a corporation
organized and doing business under the laws of the United
States or the State of Texas, authorized under such laws to
exercise corporate trust powers, having its principal office
and place of business in the State of Texas , having a combined
capital and surplus of at least $5, 000, 000 and subject to the
supervision or examination by Federal or State authority.
Any successor escrow agent shall execute, acknowledge
and deliver to the City and the Escrow Agent an instrument
accepting such appointment hereunder, and the Escrow Agent
shall execute and deliver an instrument transferring to such
successor escrow agent , subject to the terms of this Agreement,
all the rights, powers and trusts of the Escrow Agent
hereunder . Upon the request of any such successor escrow
agent, the City shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming
to such successor escrow agent all such rights , powers and
duties .
ARTICLE V
MISCELLANEOUS
SECTION 5 . 01 . Notice. Any notice, authorization,
request, or demand required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given
when mailed by registered or certified mail, postage prepaid
addressed to the City or the Escrow Agent as follows :
CITY:
City of Wylie, Texas
P. O. Box 428
Wylie, Texas 75098
Attention: Director of Finance
ESCROW AGENT:
First State Bank
P. O. Box 160
Wylie, Texas 75098
Attention:
-8-
the United States Post Office registered or certified mail
receipt showing delivery of the aforesaid shall be conclusive
evidence of the date and fact of delivery. Any party hereto
may change the address to which notices are to be delivered by
giving to the other parties not less than ten ( 10) days prior
notice thereof .
SECTION 5 . 02 . Termination of Responsibilities . Upon
the taking of all the actions as described herein by the Escrow
Agent, the Escrow Agent shall have no further obligation or
responsibilities hereunder to the City, the Contracting Parties
to the Contracts or to any other person or persons in
connection with this Agreement .
SECTION 5 . 03 . Binding Agreement . This Agreement shall
be binding upon the City and the Escrow Agent and their
respective successors and legal representatives , and shall
inure solely to the benefit of the Contracting Parties to the
Contracts, the City, the Escrow Agent and their respective
successors, assigns and legal representatives .
SECTION 5 . 04 . Severability. In case any one or more of
the provisions contained in this Agreement shall for any reason
be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not
affect any other provisions of this Agreement, but this
Agreement shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein.
SECTION 5 . 05 . Texas Law Governs . This Agreement shall
be governed exclusively by the provisions hereof and by the
applicable laws of the State of Texas .
SECTION 5 . 06 . Time of the Essence. Time shall be of
the essence in the performance of obligations from time to time
imposed upon the Escrow Agent by this Agreement .
SECTION 5 . 07 . Amendments . This Agreement shall not be
amended except to cure any ambiguity or formal defect or
omission in this Agreement . No amendment shall be effective
unless the same shall be in writing and signed by the parties
thereto. No such amendment shall adversely affect the rights
of the Contracting Parties to the Contracts .
SECTION 5 . 08 . Counterparts . This Agreement may be
executed in several counterparts, all or any of which shall be
regarded for all purposes as one original and shall constitute
and be but one and the same instrument .
-9-
f Qt
IN WITNESS WHEREOF, the parties hereto have each caused
this Agreement to be executed by their duly authorized officers
and their corporate seals to be hereunto affixed and attested
as of the date first above written.
EXECUTED as of the date first written above.
CITY OF WYLIE, TEXAS
By
Mayor
ATTEST:
City Secretary
(SEAL)
FIRST STATE BANK,
Wylie, Texas
By
Title:
ATTEST:
Title:
(SEAL)
-10-
EXHIBIT "A"
LIST OF PROPERTY
Number of Items to be Description of Estimated
Purchased or Acquired Property Cost
1 Bomag Street Reconditioner $275, 000
1 Backhoe 40, 000
1 Motor Grader 40, 000
1 Sewer Pump Truck 38 , 000
EXHIBIT "B"
Payment Request Form No .
To : Escrow Agent
As Escrow Agent , you are hereby requested to pay from
the Escrow Fund established by the Special Escrow Deposit
Agreement , dated as of March 15 , 1988 between the City of
Wylie, Texas (the "City" ) and the Escrow Agent (the "Escrow
Agent" ) to the person, corporation or other entity designated
below as Payee, being someone other than an employee or officer
of the City, the sum set forth below such designation. The
City, acting by and through its Authorized Representative,
hereby certifies that [check one or more as appropriate] :
[ ] such amount represents [full] [partial] payment
for an item of "Property" (as defined in the
Escrow Agreement) being
and such item of Property [has not
been] [has been] the subject of prior Payment
Request Forms [Nos . ] . Attached
hereto, unless supplied with a previous Payment
Request, is a copy of the invoice, winning bid
form or contract relating to the purchase or
acquisition of such Property.
[ ] such amount represents a cost incurred in
connection with the execution and delivery of the
Contracts (as defined in the Special Escrow
Deposit Agreement) .
[ ] such amounts represents the unexpended balance of
the funds held in the Escrow Fund not needed for
the payment of the costs of acquiring or
purchasing Property and should be transferred to
the Sinking Fund established by the Ordinance.
Payee :
Address :
Amount :
Dated
CITY OF WYLIE, TEXAS
Authorized Representative
Staff Report to Mayor and City Council
DATE: SUBJECT: NO:
3-3-88 Plumbing Code Amendment Ordinance
The attached Ordinance amends the existing
Uniform Plumbing Code to provide eight (8)
water conserving parameters for all plumbing
fixtures within the City of Wylie. This
ordinance amendment is a requirement of the
Texas Water Development Board that must be met
before they will release any bond funds for
infrastructure improvements.
ORIGINATING DEPT.HEAD DISPOSITION BY COUNCIL
Ron Homeyer, P.E. , Asst. City Engineer
FOR ADD.INFO. CONTACT: OTHER:
Ron Homeyer, P.E. , Asst. City Engineer
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS,
AMENDING ORDINANCE 75-4, THE PLUMBING
ORDINANCE BY AMENDING SECTION 3 BY ADDING
THERETO A NEW PARAGRAPH (I ) IN ORDER
TO PROVIDE A WATER CONSERVATION PROGRAM.
PROVIDING A REPEALING CLAUSE; PROVIDING
A SEVERABILITY CLAUSE; PROVIDING
PENALTIES FOR VIOLATION OF THIS
ORDINANCE NOT TO EXCEED THE SUM OF
FIVE HUNDRED DOLLARS ($500.00) FOR EACH
OFFENSE; AND DECLARING AN EFFECTIVE DATE.
WHEREAS; in order to comply with state agency requirements it
is necessary to enact a water conservation plan,
therefore;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS:
SECTION 1 Ordinance 75-4 , Section 3 , is hereby amended by
adding thereto a new paragraph (I ) so that Section 3
paragraph (I ) reads as follows:
(I ) In order to provide a water conservation
program the following limitations shall be
mandatory:
1 . Tank-type toilets No more than 3 .5 gallons
per flush
2 . Flush valve toilets No more than 3.0 gallons
per flush
3 . Tank-type urinals No more than 3 .0 gallons
per flush
4 . Shower heads No more than 3 .0 gallons
per minute
5 . Lavatory and kitchen No more than 2 .75 gallons
faucets per minute
6. All hot water lines Insulated
7 . Swimming pools New pools must have re-
circulating filtration
equipment
SECTION 2 That all ordinances of the City in conflict with the
provisions of this ordinance be, and the same are
hereby, repealed and all other ordinances of the
City not in conflict with provisions of this
ordinance shall remain in full force and effect.
SECTION 3 Should any paragraph, sentence, subdivision, clause,
phrase or section of this ordinance by 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 of provision thereof other
than the part so decided to be invalid , illegal or
unconstitutional and shall not affect the validity
of the remaining portions of this ordinance.
SECTION 4 Any person, firm or corporation violating any of the
provisions or terms of this ordinance shall be
subject to a fine not to exceed the sum of Five
Hundred Dollars ($500 .00) for each offense, and each
day such violation shall continue to exist shall
constitute a separate offense.
SECTION 5 This ordinance shall take effect immediately from
and after its passage and publication of its
caption, as the law in such cases provides.
DULY PASSED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS,
THIS THE 8TH DAY OF MARCH, 1988 .
CHUCK TRIMBLE, MAYOR
ATTEST :
CAROLYN JONES, CITY SECRETARY
Staff Report to Mayor and City Council
DATE: SUBJECT: DROUGHT CONTINGENCY PLAN AND NO: r
3-3-88 TRIGGER CONDITIONS ✓�j
A drought contingency plan has been prepared by
CH2M Hill and the City of Wylie Staff for your
approval . This is the same plan that was present
to Council in December, 1987 . The Texas Water
Development Board has made this a requirement for
all municipalities who secure bond funds through
their program.
We developed the trigger conditions for the
drought contingency plan with the help of the
North Texas Municipal Water District because we
purchase our potable water from them on a
wholesale basis. They have provided us with the
necessary parameters for the trigger conditions as
set forth in the letter from Mr . Carl Reihn to Mr .
John Pitstick dated October 21 , 1987 and attached
hereto.
The Texas Water Development Board has approved
the drought contingency plan that was submitted by
CH2M Hill and the City staff .
ORIGINATING DEPT.HEAD DISPOSITION BY COUNCIL
Ron Homeyer, P.E. ,Asst. City Engineer
FOR ADD.INFO. CONTACT: OTHER:
Ron Homeyer, P.E. , Asst. City Engineer
6
TEXAS w Ol � .
._ _
February 24, 1988
Mr. Ron Homeyer
Assistant City Manager
City of Wylie
P.O. Box 428
Wylie, Texas 75098
Dear Mr. Haneyer:
Re: City of Wylie Water Conservation and Drought Contingency Plan
The Texas Water Development Board (TWDB) has reviewed the City of Wylie's
revised water conservation and drought contingency plan and draft plan
adoption documents submitted with your January 29, 1988, letter.
Based on rev-iew of the plan and adoption documents, the conservation staff has
determined that the City's plan has been revised to incorporate the revision
recommendations of the Board's September 29, 1987, review letter. However,
the draft water conservation and drought contingency program ordinance sub-
mitted with the revised plan requires one modification before it is adopted.
The ordinance needs to be revised to clearly state that enforcement of the
ordinance and the penalties for non-campliance apply only (a) to the mandatory
water use restrictions contained in the drought contingency plan and (b) when
the restrictions are formally initiated by the City.
After the ordinance is revised, the City should (1) pass the plumbing code
ordinance and water conservation and drought contingency program ordinance,
(2) adopt the revised plan, and (3) submit the final adopted plan and
ordinances to the Board for final program approval.
If you have any questions concerning the revision recommendations or the
adoption procedures, you may contact Mr. Bill Hoffman or Mr. Stephen Dayton at
(512) 463-7926.
Sincerely,
Herbert W. Grubb
Director of Planning
cc: Mr. Robert J. Morrison, P.E.
Mr. Carl W. Riehn
P-t) Box 13231 Capitol Station • Austin,Texas 7 17 1 1-3231 • Area _:ode 51_' -163-7`s47
171)0 N. Congress Avenue
ti
OCT 22 I9E N./
r
�.w
NORTH TEXAS MUNICIPAL WATER DISTRICT
P.O.DRAWER C
WYLIE,TEXAS 750913
PHONE !VC.4/1h405 REGIONAL SERVICE THROUGH UNITY
October 21 , 1987
Mr. John Pitstick
City Manager
City of Wylie
P. 0. Box 428
Wylie, Texas 75098
RE: City of Wylie Conservation Program
Dear Mr. Pitstick:
At your request I have reviewed NTMWD plans for water restrictions
during drought conditions. The NTMWD plan for emergency control
of consumptive use of water compares lake elevation, projected
use, weather conditions, and time of year to determine when
restrictive controls will be applied to municipal customers.
Notice will be provided each municipal customer of impending
restrictions at least thirty days prior to implementation.
The Board of Directors of the NTMWD will make the final deter-
minations on restrictive measures based on the above factors.
The trigger will be lake elevation for consideration of restric-
tions. These are as follows:
Lake Elevation Status Restriction
492-480 MSL Normal None
480-472 MSL Mild 0-10%
472-465 MSL Moderate 10-20%
465-453 MSL Severe 20-50%
7
Mr. John Pitstick
City Manager
City of Wylie
?. O. Box 428
Wylie. Texas 75098
October 21 . 1987 Page Two
The NTMWD would assist each community in maintaining communication
with their citizens on the status of the situation and projected
future effects. All NTMWD municipalities would be restricted
in the same percentages based upon their annual minimums for
the current year.
Should you have any questions or need additional information
please do not hesitate to contact my office.
Sincerely,
CARL W. RIEHN
Executive Director
CWR:md
cc: Robert J. Morrison
CH2M Hill
2,t
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ADOPTING A WATER
CONSERVATION AND DROUGHT CONTINGENCY PROGRAM; PROVIDING FOR THE
REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR A PENALTY OF FINE NOT TO EXCEED THE SUM OF FIVE HUNDRED
DOLLARS ($500.00) FOR EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, it is necessary that a Water Conservation and Drought Contingency
Program be adopted by the City of Wylie; and
WHEREAS, such a program has been formally submitted to the Texas Water
Development Board for approval in connection with a utility system capital improvements
program to expand and upgrade wastewater treatment plant capacity, wastewater
collection system, and water distribution and storage facilities; and
WHEREAS, the City Council of the City of Wylie believes that it is in the best
interest of the City of Wylie to adopt such program; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS:
SECTION 1.
That the Wylie Water Conservation and Drought Contingency Program attached
hereto as Exhibit "A" and made part hereof for all purposes be, and the same is hereby,
adopted as the official policy of the City.
SECTION 2.
That all ordinances of the City in conflict with the provisions of this ordinance
be, and the same are hereby, repealed and all other ordinances of the City not in
conflict with the provisions of this ordinance shall remain in full force and effect.
SECTION 3.
Should any paragraph, sentence, subdivision, 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 so declared to be invalid, illegal or unconstitutional.
SECTION 4.
Any person, firm or corporation violating any of the provisions of the mandatory
water use restrictions which have been formally initiated by the City and contained in
7J
the Wylie Water Conservation and Drought Contingency Program as adopted hereby shall
be deemed guilty of a misdemeanor and, upon conviction in the Municipal Court of the
City of Wylie, Texas, shall be punished by a fine not to exceed the sum of Five Hundred
Dollars ($500.00) for each offense, and each and every day any such violation shall
continue shall be deemed to constitute a separate offense.
SECTION 5.
This ordinance shall take effect immediately from and after its passage and the
publication of the caption, as the law and charter in such cases provide.
DULY PASSED by the City Council of the City of Wylie, Texas, on the
day of , 1988.
APPROVED:
MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
---)4s
CIT ATTORNEY
InfoRmAL
REpoRts
�s
Informal Report to Mayor and City Council
SUBJECT: Na
CITY OF WYLIE SPRING AUCTION 3-4-88 /
CITY AUCTION
DATE : April 16, 1988 2 : 30 P.M.
(Saturday Afternoon)
PLACE: Old Police Bldg. & Parking Lot
The auction of city equipment that will be
disposed is scheduled that Saturday afternoon. A
list of equipment, cars and other items is being
assembled.
Date: March 1, 1988
To: John Pitstick - City Manager
From: Kay Daniel - Librarian
Re: Library Statistics for Month of February 1988
Circulation:
Date February 1988 Total: 976 ( Average 49 per day)
Open 4 Hours each Day)
Adult Circulation 337 Juvenile Circulation 356
Paper Backs 179 Large Prints Books 8
Inter Library Loan 1 Videos 84
Reference Questions 61 7-Day Reserve 9
Projector 1 Camera 1
Registration:
New Cards Issued 81
Cards Issued to Date 5995
Respectifull /
lay el, Librarian
Vy I;
CITY OF WYLIE
2001 HWY 78 N—P.O.BOX 428
WYLIE,TEXAS 75098
March 3. 1988
Mr. Richard Bos o,a-:--1 . E.
Asst. Public.-Works Director
210 McDonald
McKinney. Texas 75069
RE: County Street Construction Program
Dear Mr. Boston:
The Wylie City Council would like to request a cost estimate
from you for the County to reconstruct the following
roadways :
ALANIS STREET
From Century Business (200 ft west of Martinez Ln)
to South Ballard (Old Sasche Road )
EAST BROWN STREET
From North Ballard (FM 2174) to State Highway 78
EUBANKS LANE (CR 389)
From State Highway 78 to E. Brown Street (Old 78)
KREYMER LANE
From State Highway 78 to E. Brown Street (Old 78)
SOUTH BALLARD (OLD SASCHE ROAD)
From Stone Road (FM 544 East) to South City Limits
Council would like to have these roadways considered for the
County' s 1988/89 fiscal year budget. If there is anything
which I can do to expedite this matter please contact me at
214-442-2236.
Sincerely.
,t7
Ron Homeyer , P. E.
Asst. City Engineer
RH/rh
cc : Clarence Daugherty, Collin County Public Works Director
John Pitstick, City Manager
<<: ity Council
ANIMAL CONTROL MONTHLY REPORT
_642:fteliee __HI kV--
:THIS I LAST ; % :SAME 110. ; '/. ;THIS VP. I LAST YR. I
MONTH :MONTH I +/•- :LAST W. : +/- :TO GATE :TO DATE : +i-
TOTAL CALLS ' y/ - -
ANIMALS PICKED UP LIVE ; : I ,
:IMPOUDED) , 3 S ,
ANIMALS DIED IN KENNEL ; ---0-- :
ANIMALS PICKED UP DEAD : ,r ; I ; ; ,
ANIMAL BITE REPORTS ; I ; ,
Nsk) ANIMAL OBSERVATIONS ; / ,
ANIMALS TAKEN TO ;
GARLAND HUMANE SOCIETY ; ; ' ,
,
,
ANIMALS CLAIMED BY OWNER l Z
,
ANIMALS ADOPTED y I ,
CASH RECEIPTS ; /y>> ;
REGISTRATIONS ,
CITATIONS ISSUED ; Z ; I I ,
PREPARED ElY-
DATE:_y _L_.--•----•----•--•--
Tom Wood, Consultant
Star Rt. 1A, Box 70B • Dripping Springs. Texas 78620
(512) 858-4592
March 1, 1988
Mr. John Pitstick, City Manager
CITY OF WYLIE
P. O. Box 428
Wylie, Texas 75098
;4 s
Dear Mr. Pitstick:
Thank you for everything while I was there last week. This
letter details the specific steps that Wylie can take to reduce
its key rate and to possibly correct its fire record.
I recommend that Wylie:
1. Attract as many more volunteers as possible to the
fire department, thus delaying the time when paid
men will become necessary.
2. Assign a city employee to continually monitor paid
claims charged to the fire record. In the meantime,
make every effort to investigate paid claims reported
for the past five or six years.
3. Make a survey of wood shingle roofs. Mr. Gayler
already has the forms to use.
4. Require by ordinance that old, unused electrical
wiring be removed when electricians make repairs in
existing structures. In similar vein, remodelers
should restore firms and draft stops.
5. Continue your current program of enforcing construction
and fire safety codes. An important part of this is
the removal of substandard buildings.
6. Year by year, replace a few blocks of substandard pipe
and hydrants in the water distribution system. The
deficiencies here cause the heaviest key rate penalties.
In detail, these specific steps can reduce your key rate to
29c or less, which would put all homeowner policies in a lower
cost bracket. Commercial policies will also cost less.
?°10
Mr. John Pitstick
City of Wylie
March 1, 1988
p 2
As to the first recommendation (more volunteer firemen) ,
the city can avoid the heavy expense of a paid department.
Except in the case in which the city does not have enough
volunteers to satisfactorily protect the city, paid fire
departments are not cost effective. That is, they cost more
than they save in insurance costs. It is true that a paid
fire department can bring down the key rate and thus make the
city more attractive to prospective businesses. But volunteer
departments can do this too in many cases. If Wylie can reduce
its charged fire losses (see Recommendation No. 2) enough to
bring down the five year loss/premium ratio to 35% or less,
Item 9 on the key rate analysis will be .02 instead of .03.
Item 7 would be .08 or .09 instead of .10, if 15 or 10, res-
pectively, volunteers are certified by the Firemens and Fire
Marshals' Association of Texas. Thus, 2 or 3c in current key
rate charges can be attributed to the loss/premium ratio. The
City of Pasadena, with about 120,000 people, has always had an
all-volunteer department and it has a loss/premium ratio about
the same as Houston' s, with an all-paid department. Pasadena
has a key rate of 29 , Houston has 22 .
Wylie' s fire record will have a 5% penalty starting May 1st
instead of the current neutral record. Every fire insurance
policy will cost 5% more, other things being equal. Apparently,
a heavy loss prior to 1984 has caused the fire record to drop
from a 15% credit in 1984 to a 5% penalty in 1988. Paid claims
were $5,185 in 1985, $46,705 in 1986 and $82,109 in 1987. Every
loss charged to your fire record going back to 1982 should be
examined to determine if it was inside the city limits. Those
that were not should be stricken from the record. This one move
can possibly reduce fire policy costs more than anything else
you do. Additionally, if the loss/premium ratio is corrected
to 35% or less, key rate benefits will follow.
The wood shingle roof count, if it shows less than a 15%
incidence, can eliminate 34 in key rate charges.
As to current structural conditions, good housekeeping can
remove some causes of fire and fire spread, and also present a
much better impression to Insurance Board inspectors.
Water system deficiencies cost by far the largest amount of
money to correct. I don't see how putting the older 50,000 gal-
lon elevated tank back into service would be cost effective or
beneficial. Its overflow elevation is so far below that of the
new tank that high service pumps would continue to recycle as
Mr. John Pitstick
City of Wylie
March 1, 1988
p 3
they do now. Your happiest choice, if you can do it, will be
to sell it and make the property it' s on more valuable. The
city, as it puts in new pipe and hydrants in developing parts
of town, will slowly dilute the deficiencies in the distri-
bution system. Another tactic is to replace two or three blocks
of substandard pipe per year, spreading the cost over several
years. Were it not for water system deficiencies, Wylie could
have a 21 key rate now, even without correcting the fire record.
These complete my recommendations. It may be well to correct
your fire record and make the roof survey before asking the
Insurance Board to inspect. There' s not much you can do with the
water system to prepare.
I enclose the pumper test results. Chief Allen wants them
for his records. Thank you for the opportunity to serve Wylie.
= Yours truly,
TW-t
Encl: Pumper test results Tom Wood, Consultant
Statement for Professional
Services
Tom Wood, Consultant
Star Rt. IA. Box 70B • Dripping Springs. Texas 78620
(512) 858-4592
TESTS PERFORMED ON WYLIE FIRE DEPARTMENT PUMPERS
Monday, February 22, 1988 -
21/2�� V
Truck Size Layout NEP Test P Noz. Pitot GPM Remarks
1982 GMC 750 1 - 50' 250 50% P 12 75 578 Eng Choked
Boardman 1- 50' 250 50% V 11/2 100 667
2- 50' 200 70% P 1.75 95 886
2- 50' 200 70% V 1.75 65 732 heavy gat
2 -50' 150 100% V 1.75 85 838 mod gating
1978 750 2- 50' 150 100% V 1.75 75 787 mod gating
Chev. 1- 50' 200 70% V 12 120 730
FMC 1- 50' 250 50% V 1.375 145 674 slight gat
1- 50' 250 50% P 1.375 145 674 slight gat
1980 750 1- 50' 250 50% SS 1.375 115 600
Chev.
E-1 1- 50'
1-100' 200 70% SS 12 135 775
1- 50'
1-100 150 100% SS 1.75 110 954
V Volume, or parallel impellers
P Pressure, or series impellers
SS Single state pump
NEP Net engine pressure, psi
I certify that I conducted these tests on Monday, February 22, 1988
in Wylie, Texas with Fire Chief Larry Allen, and that these are the
results. All machines passed their tests.
/ 0-7) 1 WCrz' /
Tom Wood, Consultant