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HomeMy WebLinkAboutCC 2003-04-28 Agendas . . CITY OF NORTH RICHLAND HILLS PRE-COUNCIL AGENDA APRIL 28, 2003 - 5:45 PM For the Meeting conducted at the North Richland Hills City Hall - Pre-Council Chambers 7301 Northeast Loop 820. . NUMBER ITEM ACTION TAKEN 1. Discuss Items from Regular April 28, 2003 City Council MeetinQ (5 Minutes) Discuss Notice of Assessment of Liquidated Damages to 2. I R 2003-039 Charter Communications (15 Minutes) 3. I R 2003-041 Legislative Update (10 Minutes) Tax Exemption for Organizations Engaged Primarily in 4. I R 2003-040 Performing Charitable Functions (10 Minutes) 5. I R 2003-043 Update on Games of Texas (10 Minutes) 6. *Executive Session - The Council may enter into closed Executive Session to discuss the following: Deliberation Regarding Economic Development as Authorized by Government Code §551.086 Southern Section of North Richland Hills 7. Adjournment *Closed due to subject matter as provided by the Open Meetings Law. If any action is contemplated, it will be taken in open session. iOSTfD ""I ð..15 ö 3 Date \\'. 0 t> tJ..W'\ . Time 04/28/03 City Council Agenda Page 10f 4 C1tv Secretary a.~ ... --¥._---~-- .. . . . , . .' CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA APRIL 28, 2003 - 7:00 PM For the Meeting conducted at the North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820, at 7:00 p.m. The below listed items are placed on the Agenda for discussion and/or action. 1. Items on the consent agenda will be voted on in one motion unless a Council Member asks for separate discussion. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this Agenda, whenever it is considered necessary and legally justified under the Open Meetings Act. 3. Persons with disabilities who plan to attend this meeting and who may need assistance should contact the City Secretary's office at 817-427-6060 two working days prior to the meeting so that appropriate arrangements can be made. NUMBER ITEM ACTION TAKEN 1. Call to Order 2. Invocation - Jennv Mabrv, Public Information Director 3. Pledge - Jenny Mabry, Public Information Director 4. Special Presentations Proclamation - National Volunteer Week Proclamation Recognition - Presentation of NRH 2002 Volunteer of the Year Certificate of Commendation - Larry LaLannie Proclamation - Paws for Cause Walk-A-Thon 5. Removal of Item(s) from the Consent Agenda 04/28/03 City Council Agenda Page 20f 4 . NUMBER ITEM ACTION TAKEN 6. Consent Agenda a. Minutes of the Council Meeting April 14, 2003 PS 2003-09 b. Consideration of a Request from Sam's Real Estate Business Trust for the Approval of the Final Plat of Lot 3-R, block 6, Tapp Addition (Located in the 6200 Block of Northeast Loop 820 _ 15.597 acres) PS 2003-14 c. Consideration of a Request from Chris Benoy for the Approval of the Final Plat of Lot 1, Block 1, Milton Price Addition (Located at 8109 Newman Road - .58 acres) GN 2003-053 d. Rescheduling May 26 Council Meeting to May 27 PU 2003-024 e. Award of Bid to Sharrock Electric, Inc. in the amount of $45,333.50 for the Loop 820 at Industrial Park Boulevard Traffic Signal PU 2003-025 f. Award Annual Food Supply Contract for NRH20 to Ben E. Keith - Resolution No. 2003-043 PU 2003-026 g. Execution of Supplemental Agreement to the Professional Services Contract with Newman Jackson Bieberstein in the Amount of $90,400 for the Neighborhood Park Project - Resolution No. 2003-044 Consideration of Action on all Matters Pertaining 7. GN 2003-054 to the Award and Sale of $2,750,000 in General Obligation Bonds and Approve Ordinance No. 2702 Consideration of Action on all Matters Pertaining 8. GN 2003-055 to the Award and Sale of $3,700,000 in Tax and Waterworks and Sewer System Revenue Certificates of Obligation, Series 2003 and Approve Ordinance No. 2703 . . 04/28/03 City Council Agenda Page 30t 4 . . . e NUMBER ITEM ACTION TAKEN Consideration of a Request from Rebel 9. PS 2003-11 Properties LLC. For the Approval of the Final Plat of Iron Horse Addition Phase II (Located in the 6300 Block of Brownina Drive - 30.94 acres) Public Hearing to Consider a Zoning Ordinance 10. PZ 2003-09 Text Amendment to Section 605C Relating to Permitted Building Materials for Remodeling of Existing Non-Residential Buildings - Ordinance No. 2704 Approve Engineering Agreement with Freese 11. G N 2003-056 and Nichols, Inc. in the amount of $43,000 to develop a Water System Vulnerability Assessment in accordance with EPA Requirements - Resolution No. 2003-045 Appointments to Wholesale Water Customer 12. GN 2003-057 Advisory Committee and Wholesale Wastewater Customer Advisory Committee 13. Action on Any Item Discussed in Executive Session listed on Pre-Council AQenda 14. a) Citizens Presentation b) Information and Reports 15. Adjournment 4f:~lb3 Date \I: 00 ~ Time Cft.¡¡ Secretary B(!? ,-;tj¿¡~ .~ 04/28/03 City Council Agenda Page 40t 4 INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2003- 039 ~ Date: T Subject: April 28, 2003 Discuss Notice of Assessment of Liquidated Damages to Charter Communications Earlier this year, staff reported to the City Council the results of an audit of the Charter Communications Metroplex call centers conducted by C2 Consulting. This audit was a collaborative effort of several cities in the Metroplex. As you recall, the audit showed that adjusted service levels for "abnormal operating conditions" in each of the 6 quarters audited were not supported by Charter's records. As a result, the audit found that Charter was in non- compliance with the customer service standards outlined in the City's franchise with Charter for all of the quarters audited. The City's cable franchise includes procedures for the assessment of liquidated damages when the customer service standards are not met, and Council directed staff to proceed with the assessment of liquidated damages as outlined in the franchise. On April 18th the City Manager sent a certified letter to Charter executives assessing liquidated damages in the amount of $330,~89. This assessment includes non-compliance from the 3rd quarter of 1999 through the 4th quarter of 2002. Damages are calculated according to the franchise: $1 per subscriber for the first non-compliance, $2 per subscriber for the second non-compliance, and $3 per subscriber thereafter (see attached chart). The _tter from North Richland Hills followed a letter from the City of Fort Worth assessing iquidated damages in the amount of $2.6 million as well as letters from the cities of Denton, Hurst, Burleson, Benbrook, and Duncanville. We anticipate that the cities of Keller and South lake will send letters as well. According to the franchise, the company has 10 days to request a hearing before the City Councilor pay the damages. As of the writing of this report, staff has not received a response from Charter; however, we anticipate receiving a response prior to the meeting Monday. Charter has responded to letters sent by the other cities. All of these responses include a request for a hearing before the City Council as well as a request for an informal meeting. According to the cable franchise, the Council can either hear the matter, or appoint a hearing officer to hear the matter. Staff is recommending that the Council appoint a hearing officer so that one hearing officer can serve in the interest of all cities involved. Should you choose to appoint a hearing officer, staff will come back to you soon with a recommendation. If the Council would like to hear the matter itself, we are requesting that you set a date for the hearing at this time. The cities involved in the cable consortium plan to hold an informal meeting with Charter very soon, and staff will have more information for you at the meeting Monday. .Rr=¡:_ Paulette Hartman Assistant to the City Manager ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS . Quarter Number of Amount of Total Amount of Subscribers Damages per Damages for .. Subscriber Quarter 3ra Ouarter 1999 8,904 $1 $8,904 4tn Ouarter 1999 8,889 $2 $17,778 1 st (Juarter 2000 8,897 $3 $26,691 2na ( )uarter 2000** 8,836 $3 $26,508 3ra ( uarter 2000** 8,882 $3 $26,646 4th Quarter 2000 9,098 $3 $27,294 1 st Quarter 2001 * 9,061 $3 $27,183 2nd Quarter 2001 * 9,158 $3 $27,474 3rd Quarter 2001 * 8,562 $3 $25,686 4th Quarter 2001 * 8,188 $3 $24,564 1 st Quarter 2002 * 7,906 $3 $23,718 2na Quarter 2002* 7,717 $3 $23,151 3rd C uarter 2002 7,570 $3 $22,710 4th C uarter 2002 * * 7,394 $3 $22,182 TOTAL $330,489 *Quarter covered by Audit ** Quarter in which Charter acknowledged non-compliance . . - " INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2003-041 ~ Date April 28, 2003 T SUbi:ct: State Legislative Update Attached is a current Legislative Update for the 78th Regular Session of the Texas Legislature. At this time, we are tracking 788 city-related bills, of which, 134 are on the attached Priority list. The following is a list of points-of-interest related to the current session. · Important Dates · Monday, May 12, 2003 - Last day for house committees to report house bills and joint resolutions · Saturday, May 24,2003 - Last day for house committees to report senate bills and joint resolutions · Tuesday, May 27, 2003 - Last day for house to consider senate bills and joint resolutions, other than local or consent, on second reading · Friday, May 30, 2003 - Last day for house to consider senate amendments and last day for senate committees to report all bill~ · Monday, June 2, 2003 - Last day of 78th Regular Session; corrections only in house and senate · Sunday, June 22,2003 - Last day governor can sign or veto bills passed during the previous legislative session · Progress on major issues · Property Exemptions - there were several property tax exemption bills filed this session, however, it is "iffy" as to whether they will pass based on information from TML · Transportation - things are not looking very good in this area right now. HB 3185 was voted favorably from the House Transportation Committee on April 16th and has been sent to the Calendars Committee. If passed, this bill will seriously jeopardize funding for the Northeast Transportation Service. Letters of opposition were sent to members of the Transportation Committee and to Representative Vicki Truitt, who is a member of the Calendars Committee. Representative Bob Griggs has also been made aware of our position on this bill. · Exempting emergency management from open records - there are several bills pending regarding public information and open records with regard to security and emergency management and they all appear to be moving along nicely. · Photographic Traffic Signal Enforcement - HB 901 was reported favorably from the House Transportation Committee on March 18th and was considered in the Calendars Committee on April 22nd and has been placed on the Major State Calendar for April 25th. · House Appropriations bill, HB 1, passed the House. We are not aware of any negative impacts to cities except for cuts in public transportation funding, which we expected considering the State's current budget situation. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS Please notify Paulette Hartman or me if you have any questions on a particular bill. Staff will stay current on the latest information and notify you when action is needed to either encourage or discourage any legislation. e 7j;J~ ./ . Greg Vick Assistant City Manager e e HB 1 last Activity: General Appropriations Bill 4/7/2003 Talmadge Description: Position: Committee: Appropriations Department Effected: Budget & Research History: 4/7/2003 Voted Favorably from House Appropriations Committee as substituted 2/6/2003 Referred to House Appropriations Committee 2/6/2003 Filed e HB 46 Telecommunications Infrastructure Fund last Activity: 1/30/2003 Description: would: (1) provide that the Telecommunications Infrastructure Fund (TIF) is not subject to sunset review until September 1, 2009; (2) allow the amount in the TIF to reach a maximum amount of two billion dollars; and (3) provide that the comptroller may adjust or not impose the TIF assessment on telecommunications utilities and commercial mobile service providers if the amount in the fund exeeds certain amounts. Turner Position: Support Committee: Regulated Industries Department Effected: Library History: 1/30/2003 Referred to House Regulated Industries Committee 12/10/200 Filed 2 HB 86 Properly Tax Exemption last Activity: 3/13/2003 Description: Would freeze all city and county property taxes on homesteads of persons over the age of 65, similar to the current freeze on school district taxes McClendon Position: Strongly Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research e History: Wednesday, April 23. 2003 Page I of 50 e 3/13/2003 Left Pending in House Local Government Ways & Means Committee 2/3/2003 Referred to House Local Government Ways & Means Committee 12/10/200 Filed 2 HB 104 Property Tax Exemption Last Activity: 4/14/2003 Description: would exempt from property taxes tangible personal property, other than ·oil or gas, that is located at a site not under the control of the property owner for less than 270 days. The exemption would be similar to the current freeport exemption and would permit cities to tax these otherwise exempt goods following a public hearing. (Note: this bill would enact SJR 6, which was passed by the 2001 legislature and approved by the voters in November 2001.) Chavez Position: Support Committee: Calendars Department Effected: Budget & Research History: 4/14/2003 Sent to Calendars 4/8/2003 Voted Favorably from House Local Government Ways & Means as substitued 2/3/2003 Referred to House Local Government Ways & Means Committee 11/12/200 Filed 2 e HB 136 Property Tax Exemption for 65 Last Activity: 3/13/2003 Description: Authorize the freeze on City and County property taxes for the homesteads of persons over 65 at the option of local governing bodies. Would only become effective if HJR 16 is approved by TX voters. Position: Oppose Committee: Local Government Ways & Means Brown, F. Department Effected: Budget & Research History: 3/13/2003 Left Pending in House Local Government Ways & Means Committee 2/3/2003 Referred to House Local Government Ways & Means Committee 12/10/200 Filed 2 e Wednesday, April 23, 2003 Page 2 of 50 HB 157 Regional Mobility Authority- Bond Issuance Last Activity: 3/7/2003 Description: Would allow a regional mobility authority to issue turnpike revenue bonds Krusee Position: Support Committee: Transportation Department Effected: Budget & Research History: 417/2003 Referred to Senate Intergovernmental Relations Committee 4/2/2003 Passed to Engrossment 3/7/2003 Committee Report sent to Calendars 3/4/2003 Voted Favorably from House Transportation Committee as Substituted 2/25/2003 Left Pending in House Transportation Committee 2/6/2003 Referred to House Transportation Committee 12/10/200 Filed 2 HB 159 Trans-Texas Co"idor Condemnation of Property Krusee Last Activity: 2/6/2003 Description: Would allow TxDOT or a Regional Mobility authority to purchase or condemn real property for highway, railway or utility purpose for the Trans-Texas Corridor Position: No position Committee: Transportation Department Effected: Development History: 2/6/2003 Referred to House Transportation Committee 12/10/200 Filed 2 HB 161 Property Tax Exemption for Travel Trailers Last Activity: 2/20/2003 Description: Would make the property tax exemption for travel trailers mandatory. Would become effective only if HJR 19 is approved by TX voters Position: Strongly Oppose Committee: Local Government Ways & Means Flores Department Effected: Budget & Research History: 2/20/2003 Left Pending in House Local Government Ways & Means Committee 2/6/2003 Referred to House Local Government Ways & Means Committee 12/10/200 Filed 2 Wednesday, April 23, 2003 Page 3 of 50 HB 186 Regional Mobility Authorities Last Activity: 2/6/2003 Description: Would grant the governing body of a regional mobility authority the same powers as the Texas Transportation Commission to condem property and issue revenue bonds and to enter e into the agreement for construction, operation or expansion of a project. e Truitt e HB 164 Street Maintenance Tax Availability Last Activity: 417/2003 Description: Would provide that the local option street maintenance sales tax may be levied at either 1/8 or 1/4 of one percent Position: Support Committee: Intergovernmental Relations Department Effected: Budget & Research History: 417/2003 Referred to Senate Intergovernmental Relations Committee 3/31/2003 Passed to Engrossment 3/11/2003 Committee Report sent to Calendars 3/6/2003 Voted Favorably from House Local Government Ways & Means Committee 2/27/2003 Left Pending in House Local Government Ways & Means Committee 2/6/2003 Referred to House Local Government Ways & Means Committee 12/10/200 Filed 2 King Position: Support Committee: Transportation Department Effected: History: 2/6/2003 Referred to House Transportation Committee 12/1 0/200 Filed 2 King HB 187 Regional Mobility Authorities Last Activity: 2/6/2003 Description: Would provide that the Texas Department of Transportation may require a public or private entity that places utilities infrastructure in service, telecommunications, cable, or other communications service, electric service, or petroleum and petroleum product pipeline service. (Note: this bill is identical to HB 158 (Krusee)). Full description is not here. Position: Oppose Committee: Transportation Department Effected: Development History: Wednesday, April 23, 2003 Page 4 of 50 2/6/2003 Referred to House Transportation Committee 11/15/200 Filed 2 HB 200 Photographic Red Light Enforcement Last Activity: 2/6/2003 Berman Description: Would: (a) authorize a city to impose a civil penalty of up to $75 on the owner of a vehicle if the vehicle's license plate is photgraphed while running a red light; and (b) provide that revenue from penalties may be used only to pay for the operation of the system, traffic safety, and traffic signal awareness and education programs. Position: Support Committee: Transportation Department Effected: Police History: 2/6/2003 Referred to House Transportation Committee 11/18/200 Filed 2 HB 282 Highways Last Activity: 2/6/2003 Description: Would allow a city: (1) to place traffic control devices on any roadway, including state highway, without following the manual specifications and without TxDOT permission; and (2) to lower a speed limit on any roadway, including a state highway, without performing an engineering and traffic investigation, if the city determines that a lower speed would prevent or reduce the number of fatalities on the roadway. Position: Support Committee: Transportation Moreno Department Effected: Police History: 2/6/2003 Referred to House Transportation Committee 12/11/200 Filed 2 HB 308 Sales Tax Exemption Last Activity: 3/26/2003 Description: Would broaden the so-called "back-to-school" sales tax exemption to include school supplies, books, textbooks, and other instructional materials. Denny Position: Strongly Oppose Committee: Ways & Means Department Effected: Budget & Research History: VVednesday,ApriI23,2003 Page 5 of 50 e 3/26/2003 Left Pending in House Ways & Means Committee 3/19/2003 Scheduled for public hearing 2/6/2003 Referred to House Ways & Means Committee 12/19/200 Filed 2 HB 334 Building Code Last Activity: 4/9/2003 Description: Would require each city to: (a) adopt and enforce a rehabilation code to apply to an alteration, remodeling, enlargement, or repair of an existing structure to which the Intemational Residential Code does not apply; and (b) adopt and enforce building code to apply to the construction of a new structure to which the International Residential Code does not apply. Villareal Position: No position Committee: Land and Resource Management Department Effected: Development History: 4/9/2003 Left Pending in House Land and Resource Management Committee 2/6/2003 Referred to House Land and Resource Management Committee 117/2003 Filed HB 361 Last Activity: Sales Tax Holiday 4/2/2003 Dutton e Description: Would extend the duration of the sales tax holiday for certain clothing and shoes from 72 hours to two weeks, exempt from sales taxes the sale of school supplies during August, and allow cities to repeal the exemption on school supplies by council vote Position: Strongly Oppose Committee: Ways & Means Department Effected: Budget & Research History: 4/2/2003 Left Pending in House Ways & Means Committee 2/10/2003 Referred to House Ways & Means Committee 1/8/2003 Filed HB 378 Public Nuisance Last Activity: 4/8/2003 Description: Would allow a resident of a city to bring a lawsuit against the city to require the city to abate a public nuisance that is occuring within the city. The bill also provides that if a court finds that a public nuisance is occuring, the court may, among other things, require the city to purchase the property in order to remedy the nuisance. Dutton Position: Oppose Committee: Civil Practices e Department Effected: Administration History: Wednesday, April 23, 2003 Page 6 of 50 4/8/2003 Voted Favorably from House Civil Practices Committee as substituted 2/10/2003 Referred to House Civil Practices Committee 1/8/2003 Filed HB 390 Last Activity: Tax Increment Financing 2/10/2003 Pitts Description: Would prevent a city from deducting the value of newly taxable areas containing tax increment financing zones from its effective tax rate calculation. Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 2/10/2003 Referred to House Local Government Ways & Means Committee 1/10/2003 Filed HB 395 Property Tax Rendition Last Activity: 2/10/2003 Description: Would: (1) require rendition (reporting) of residential real property and m.ost income- producing real property; and (2) impose a penalty of ten percent of the property tax imposed for failure to file any required rendition. Merritt Position: Support Committee: Local Government Ways & Means Department Effected: Budget & Research History: 2/10/2003 Referred to House Local Government Ways & Means Committee 1/13/2003 Filed HB 397 Certificates of Obligation Last Activity: 2/26/2003 Mowery Description: Would require a city to conduct an election prior to the issuance of certificates of obligation for amounts in excess of $2 million. For other issuances, the bill would lower the petition requirement from five percent to two percent of qualified voters. (Current law requires an election only if the council receives a petition of five percent of the qualified voters.) Position: Strongly Oppose Committee: Urban Affairs Department Effected: Budget & Research History: 2/26/2003 Left Pending in House Urban Affairs Committee 2/10/2003 Referred to House Urban Affairs Committee 1/13/2003 Filed Wednesday, April 23, 2003 Page 7of50 e HB 426 State Agency Rules Last Activity: 3/24/2003 Description: Would prohibit a state agency from adopting rules that impose costs on local govemments unless the legislature specifically authorizes the rules. Position: Support Committee: State Affairs Christian Department Effected: Administration History: 3/24/2003 Voted Favorably from House State Affairs Committee 3/10/2003 Left Pending in House State Affairs Committee 2/10/2003 Referred to House State Affairs Committee 1/15/2003 Filed HB 437 Public Information Last Activity: 2/10/2003 Description: Would exempt from public disclosure information relating to emergency management or disaster planning if the disclosure of such information would compromise or interfere with implementation of an emergency management or disaster plan. Allen Position: Support Committee: State Affairs Department Effected: Police e History: 2/10/2003 Referred to House State Affairs Committee 1/16/2003 Filed HB 463 Employment Contracts Last Activity: 2/10/2003 Description: Would limit an employment contract entered into by a political subdivision, including a city, as follows: (1) the duration of the contract may not exceed the length of a councilmember's term; and (2) no severance package or agreement may be an amount that exceeds the amount of the employee's salary for 50 percent of the time remaining on the contract. Position: Oppose Committee: County Affairs Gallego Department Effected: Administration History: 3/12/2003 Scheduled for public hearing - no action taken 2/10/2003 Referred to House County Affairs Committee 1/21/2003 Filed e Wednesday, April 23, 2003 Page 8 of 50 HB 474 Property Taxes Last Activity: 3/13/2003 Description: Would: (1) lower from ten percent to five percent the maximum yearly increase in taxable value of a residential homestead (this portion of the bill would become effective only if HJR 32 is approved by Texas voters); and (2) exclude repairs from the statutory definition of improvements to property, with the result that increased homestead value due to repairs would not be taxable on certain homesteads that have increased in value more than the proposed five, percent limit. Wong Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/13/2003 Left Pending in House Local Government Ways & Means Committee 2/10/2003 Referred to House Local Government Ways & Means Committee 1/21/2003 Filed HB 526 Computer Vulnerability Report Last Activity: 2/11/2003 Description: Would allow ~he records managemel1t officer of a local government to prepare a confidential computer vulnerability report that assesses the extent to which electronically stored information is vulnerable to alteration, damage, ore erasure; and would require a records management officer who has prepared such a report to prepare a summary of the report that does not contain any compromising information and is available to the public. Smith, T. Position: Support Committee: County Affairs Department Effected: History: 2/11/2003 Referred to House County Affairs Committee 1/23/2003 Filed HB 533 Emergency Action Plans Last Activity: 2/11/2003 Description: Would exempt from the Public Information Act any information regarding an emergency action plan of a law enforcement agency or a fire fighting agency. King Position: Support Committee: Defense Affairs & State - Federal Relations Department Effected: Police History: 2/11/2003 Referred to House Defense Affairs and State-Federal Relations Committee 1/23/2003 Filed Wednesday. April 23,2003 Page 9 of 50 e e HB 589 Last Activity: Taxes 3/26/2003 Davis, Y. e Description: Would repeal sales tax exemptions, property tax exemptions, and state franchise tax exemptions. Position: No position Committee: Ways & Means Department Eff~cted: Budget & Research History: 3/26/2003 Left Pending in House Ways & Means Committee 3/19/2003. Scheduled for public hearing 2/11/2003 Referred to House Ways & Means Committee 1/28/2003 Filed Jones, J. HB 637 Industrialized Housing and Buildings Last Activity: 2/12/2003 Description: Would allow a city to regulate the location of industrialized structures, just as the city can currently regulate the location of manufactured housing. (Companion bill is SB 303 by Brimer) Position: Support Committee: Urban Affairs Department Effected: Development History: 2/12/2003 Referred to House Urban Affairs Committee 1/30/2003 Filed HB 701 Last Activity: Property Taxes 2/17/2003 Guteirrez Description: Would "freeze" city and county property taxes on the homesteads of persons over the age of 65 and disabled persons, just as current law freezes school district taxes for persons over 65. (This legislation would become effective only if HJR 38 is approved by Texas voters.) Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 2/17/2003 Referred to House Local Government Ways & Means Committee 2/4/2003 Filed Wednesday, April 23, 2003 Page 10 of 50 HB 730 Residential Construction Last Activity: 3/31/2003 Description: Would create the Texas Residential Construction Commission (TRCC) and require the TRCC to adopt rules relating to building standards for residential construction, state-sponsored inspection and dispute resolution, and approval of third-party warranty programs and inspectors. Ritter Position: Support Committee: Regulated Industries Department Effected: Development History: 3/31/2003 Voted Favorably from House Regulated Industries as substituted 3/11/2003 Left Pending in House Regulated Industries Committee 2/17/2003 Referred to House Regulated Industries Committee 2/6/2003 Filed HB 731 Reckless Driving Last Activity: 2/17/2003 Description: Would provide that reckle~s driving shall be a Class B misdemeanor. (Under current law, it is a lesser offense.) Martinez Fisc Position: Support Committee: Transportation Department Effected: Police History: 2/17/2003 Referred to House Transportation Committee 2/6/2003 Filed HB 789 Platting Last Activity: 3/10/2003 Description: Would provide that tax-exempt religious organizations are not required to prepare a plat to obtain a building permit or any other permit for developing a tract. Grusendorf Position: Oppose Committee: Land and Resource Management Department Effected: Development History: 3/10/2003 Left Pending in House Land and Resource Management Committee 2/17/2003 Referred to House Land and Resource Management Committee 2/10/2003 Filed VVednesday, April 23, 2003 Page II of 50 e HB 872 Elections Last Activity: 4/9/2003 Description: Would provide that there shall be only two uniform election dates (the first Saturday in May, and the first Tuesday after the first Monday in November), and that a city may change its election date no later than December 31, 2003. Denny Position: Oppose Committee: State Affairs Department Effected: City Secretary History: 4/9/2003 Referred to Senate State Affairs Committee 4/3/2003 Passed to Engrossment 3/17/2003 Committee Report sent to Calendars 3/12/2003 Voted Favorably from House Elections Committee 3/5/2003 Left Pending in House Elections Committee 2/18/2003 Referred to House Elections Committee 2/12/2003 Filed HB 878 Handguns Last Activity: 2/28/2003 Description: Would prevent a govemmental entity (including a city) from using the criminal trespass statute to prohibit a concealed handgun licensee from carrying a handgun onto the entity's property. e Position: Oppose Committee: Calendars Hupp Department Effected: Police History: 2/28/2003 House Criminal Jurisprudence Committee Report sent to House Calendars Committe 2/25/2003 Voted Favorably from House Criminal Jurisprudence Committee 2/18/2003 Referred to House Criminal Jurisprudence Committee 2/12/2003 Filed e Wednesday, April 23. 2003 Page 12 of 50 Last Activity: Photographic Traffic EnforcementITX Mobility Fund 3/18/2003 King HB 901 Description: Would allow a city to implement a photographic traffic enforcement system by installing cameras at traffic lights in the city; would provide that the owner of a motor vehicle is liable for a civil penalty of up to $75 if the vehicle's license plate is photographed while the vehicle is running a red light; would allow a city to contract with a private contractor for the administration and enforcement of the system so long as the contractor is not paid based on the number of citations issued; would require a city to post signs that inform drivers of the existence of the system at all entrances to the city that currently have city limit signs; would create a criminal penalty for anyone who uses the system for any purpose other than photographic traffic enforcemen; and would provide that revenue generated by the system be deposited in the Texas Mobility Fund after the city deducts administrative expenses for the operation of the system. Position: Support Committee: Transportation Department Effected: Police History: . 3/18/2003 Voted Favorably from House Transportation Committee as substituted 3/11/2003 Left Pending in House Transportation Committee .. 3/4/2003 Left Pending in House Transportation Committee 2/19/2003 Referred to House Transportation Committee 2/12/2003 Filed HB 905 Last Activity: Tax Abatement 2/19/2003 Mowery Description: Would do the following regarding tax abatements: (1) require a city to conduct an election prior to granting a tax abatement; (2) require a city to conduct an annual audit of the compliance status of each tax abatement; and (3) require the city to recapture all abated taxes if the property owner fails to comply with any term of the agreement. Position: Oppose Committee: Local Government Ways & Means Department Effected: Development History: 2/27/2003 Left Pending in House Local Government Ways & Means Committee 2/19/2003 Referred to House Local Government Ways & Means Committee 2/12/2003 Filed Wednesday, April 23, 2003 Page 13 of 50 e HB 1066 Municipal Court Technology Fee Last Activity: 4/3/2003 Description: Would repeal the statutory provision that ends the authority to collect the municipal court technology fee on September 1, 2005. Position: Support Committee: Intergovernmental Relations Goodman Department Effected: Municipal Court History: 4/3/2003 Referred to Senate Intergovernmental Relations Committee 3/28/2003 Passed to Engrossment 3/18/2003 Committee Report sent to Local and Consent Calendar 3/13/2003 Voted Favorably from House Urban Affairs Committee as substituted 3/12/2003 Left Pending in House Urban Affairs Committee 2/24/2003 Referred to House Urban Affairs Committee 2/18/2003 Filed HB 1088 Sales Tax Information Last Activity: 4/9/2003 Description: Would do the following regarding the information that cities may receive from the state comptroller regarding sales taxes remitted within the city: (1) lower from $100,000 to $25,000 the minimum amount of sales taxes remitted by a company before certain cities may receive the information; and (2) permit city councils to meet in executive session to receive or question staff about confidential sales tax information. Hill e Position: Support Committee: Local Government Ways & Means Department Effected: Administration History: 4/9/2003 Passed to Engrossment 3/28/2003 Voted Favorably from House Local Government Ways & Means Committee 3/20/2003 Scheduled for public hearing 3/10/2003 Re-referred to House Local Government Ways & Means Committee 2/24/2003 Referred to House Urban Affairs Committee 2/19/2003 Filed e Wednesday, April 23, 2003 Page 14 of 50 HB 1191 Public Information Last Activity: 4/9/2003 Description: Would provide that certain information relating to terrorism is not subject to disclosure under the Public Information Act, including information that relates to: (1) staffing requirements, tactical planning, and telephone numbers of an emergency response provider; (2) an assessment of the risk or vulnerability of persons or property, including critical infrastructure; (3) the construction or assembly of an explosive weapon or a chemical, biological, radiological, or nuclear weapon of mass destruction; (4) the details of the encryption codes or security keys for a public communications system; or (5) the details of a security system that is used to protect public or private property. Allen Position: Support Committee: Infrastructure Development and Security Department Effected: Police History: 4/9/2003 Referred to Senate Infrastructure Development and Security Committee 4/3/2003 Passed to Engrossment 3/17/2003 Voted Favorably from House State Affairs Committee as substituted 3/10/2003 Left Pending in House State Affairs Committee 2/27/2003 Referred to House State Affairs Committee 2/21/2003 Filed HB 1207 Zoning Last Activity: 4/2/2003 Description: Would allow a city to regulate the appearance or architectural style of buildings or other structures, including the types of building materials that may be used or the amount of masonry that must be contained on the exterior of the building or structure, and the appearance of years, courts, or open spaces, including the types or quantities of plants or landscaping materials required. The bill would also subject these regulations to the provisions of Chapter 245 of the Local Government Code, the permit "vesting" statute. Kuempel Position: Support Committee: Urban Affairs Department Effected: Development History: 4/2/2003 Voted Favorably from House Urban Affairs Committee as substituted 3/12/2003 Left Pending in House Urban Affairs Committee 2/27/2003 Referred to House Urban Affairs Committee 2/24/2003 Filed Wednesday, Apri123, 2003 Page 15 of 50 Geren e HB 1302 Open Government Last Activity: 3/24/2003 Description: Would: (1) allow a governmental body to hold an executive session to discuss a response to, or protection from, potential or actual threats of terrorism or vandalism to the safety, security, or integrity of a public water or sewer system; and (2) except from disclosure under the Public Information Act any information related to responses to, or protection from, potential or actual threats of terrorism or vandalism to the safety, security, or integrity of a public water or sewer system if the governmental body determines that disclosure may present a risk to the health or safety of the public. Position: Support Committee: State Affairs Department Effected: Administration History: 3/24/2003 Voted Favorably from House State Affairs Committee as sustituted 3/10/2003 Left Pending in House State Affairs Committee 3/3/2003 Referred to House State Affairs Committee 2/26/2003 Filed Krusee HB 1444 Property Tax Exemption Last Activity: 4/10/2003 Description: Would: (1) make permanent the current property tax exemption for motor vehicles leased for personal use (Note: the exemption is set to expire on December 31, 2003); and (2) repeal the legislation that permitted cities to continue taxing such leased vehicles if they adopted an e ordinance prior to January 1, 2002. e Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 4/10/2003 Voted Favorably from House Local Government Ways & Means Committee 3/5/2003 Referred to House Local Government Ways & Means Committee 2/28/2003 Filed Driver HB 1487 Licensing of Electricians Last Activity: 3/13/2003 Description: Would add the Texas Electrical Safety and Licensing Act to the Texas Occupations Code. (Companion is SB 500) Position: No position Committee: Licensing & Administrative Procedures Department Effected: Development History: Wednesday, Apri123, 2003 Page 16 of 50 3/13/2003 Left Pending in House Licensing & Administrative Procedures Committee 3/5/2003 Referred to House Licensing & Administrative Procedures Committee 2/28/2003 Filed HB 1533 Property Taxes Last Activity: 4/10/2003 Description: Would provide that property owned by a city, but located outside the city's limits, may be taxable by other taxing entities if the governing bodies of the other entities vote to tax the city property. (Note: this legislation would become effective only if H.J.R. 65 is approved by Texas voters.) Cook, R. Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 4/10/2003 Left Pending in House Local Government Ways & Means Committee 3/6/2003 Referred to House Local Government Ways & Means Committee 3/3/2003 Filed HB 1586 Public Information Last Activity: 3/24/2003 Description: Would provide that information relating to the vulnerability of utility infrastructure to disruption or damage by an intentional act of harm is confidential. (Companion bill is S.B. 647 by Wentworth.) Position: Support Committee: State Affairs Baxter· Department Effected: City Secretary History: 3/24/2003 Left Pending in House State Affairs Committee 3/6/2003 Referred to House State Affairs Committee 3/4/2003 Filed VVednesday,J\priI23,2003 Page 17 of 50 HB 1606 Financial Disclosure Last Activity: 3/17/2003 Wolens e Description: This is a wide-ranging bill that addresses ethics, political advertising, lobbying, political contributions, and more. Article 5 of the bill would resurrect a financial disclosure bill that first reared its ugly head in 2001. Article 5 would: (1 )require each mayor, each member of a municipal governing body, each municipal attorney, each city manager, and each candidate for municipal office to file an annual financial statement with the city clerk or secretary. (2) Require that the financial statement include an account of the financial activity of the covered individual (see #1 above) and the individual's spouse and children if the individual had control over that activity. (3) Require that the financial statement include all sources of income; shares of stocks owned, acquired, or sold; bonds, notes, or other paper held, acquired, or sold; any interest dividend, royalty, or rent exceeding $500; each person or institution to whom a personal debt of $1,000 or more exists; all beneficial interests in real property or businesses owned, acquired, or sold; certain gifts received; income in excess of $500 from a trust; a list of all boards of directors on which the individual serves; and more. (4) Require that financial statements be made on a form designed by the Texas Ethics Commission. (5) Provide that the statements are public records. (6) Provide that failure to file a statement is a Class B misdemeanor, which is punishable by a fine of up to $2,000, imprisonment of up to 180 days, or both. This bill would undoubtedly lead to a sharp drop in the number of citizens willing to run for municipal office, the number of current municipal office-holders willing to complete their terms, and the number of contract city attorneys who are willing to work for small cities. Position: Strongly Oppose Committee: Select Committee on Ethics Department Effected: Administration History: 3/31/2003 Left Pending in House Select Committee on Ethics e 3/17/2003 Left Pending in House Select Committee on Ethics 3/10/2003 Left Pending in House Select Committee on Ethics 3/5/2003 Referred to House Select Committee on Ethics 3/4/2003 Filed HB 1635 Telecommunications Infrastructure Fund Last Activity: 4/9/2003 Description: Would provide that the Telecommunications Infrastructure Fund (TIF) may be used only to make grants or loans to public schools or institutes of higher education. Under the bill, libraries and health care facilities would no longer be entities eligible for TIF assistance. King Position: Strongly Oppose Committee: Regulated Industries Department Effected: Budget & Research History: 4/9/2003 Left Pending in House Regulated Industries Committee 3/10/2003 Referred to House Regulated Industries Committee 3/4/2003 Filed e Wednesday, April 23, 2003 Page 18 of 50 HB 1642 Collective Bargaining Last Activity: 3/10/2003 Description: would authorize a city to Umeet and confer" (engage in collective bargaining) with a firefighter association without a petition and popular vote, as is required by current law. (Companion bill is S.B. 672 by Gallegos.) Bailey Position: Oppose Committee: Urban Affairs Department Effected: Human Resourées History: . 3/10/2003 Referred to House Urban Affairs Committee 3/4/2003 Filed HB 1643 Collective Bargaining Last Activity: 3/10/2003 Description: would authorize a city to "meet and confer" (engage in collective bargaining) with a peace officer association without a petition and popular vote, as is required by current law. (Companion bill is S.B. 562 by Gallegos.) Bailey Position: Oppose Committee: Urban Affairs Department Effected: Human Resources History: 3/10/2003 Referred to House Urban Affairs Committee 3/4/2003 Filed HB 1645 Collective Bargaining Last Activity: 3/10/2003 Description: Would allow political subdivisions, but not the state government, to engage in collective bargaining. (Note: under current law, collective bargaining, with some narrow exceptions, is prohibited for the state and local governments. This bill would repeal the prohibition for local governments.) (Companion bill is S.B. 844 by Barrientos.) Position: Oppose Committee: County Affairs Bailey Department Effected: Human Resources History: 3/10/2003 Referred to House County Affairs Committee 3/4/2003 Filed Wednesday. April 23. 2003 Page 19 of 50 e HB 1774 Police and Fire Last Activity: 3/11/2003 Description: would: (1) allow police or fire collective bargaining in every city without a petition and popular vote as is currently required; and (2) repeal the alternate promotion system in police departments covered by Chapter 143 of the Local Government Code (fire and police civil service). Bailey Position: Oppose Committee: Urban Affairs Department Effected: Human Resources History: 3/11/2003 Referred to House Urban Affairs Committee 3/5/2003 Filed HB 1780 Public Works Contracts Last Activity: 4/1/2003 Description: would require a governmental entity, including a city, to oversee mediation and other alternative dispute resolution proceedings between prime contractors and subcontractors engaged in a public works contracts with the governmental entity. Position: Oppose Committee: State Affairs Davis, Y. Department Effected: Development History: e 4/1/2003 Left Pending in House State Affairs Committee 3/11/2003 Referred to House State Affairs Committee 3/5/2003 Filed HB 1782 Property Taxes Last Activity: 3/20/2003 Hegar Description: would: (1) lower from ten percent to zero the maximum yearly increase in the taxable value of residential homesteads (Note: this legislation would become effective only if H.J.R. 69, below, is approved by Texas voters); and (2) exclude repairs, restoration, and upkeep from the statutory definition of improvements to property, with the result that increased value due to such repairs, restoration, and upkeep would not be taxable on certain homesteads. Position: Strongly Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/20/2003 Left Pending in House Local Government Ways & Means Committee 3/11/2003 Referred to House Local Government Ways & Means Committee 3/5/2003 Filed e Wednesday. Apri123. 2003 Page 20 of 50 HB 1829 Tax Increment Financing Last Activity: 3/11/2003 Description: would permit any city to exclude captured tax increment from its taxable value for effective and rollback rate calculation purposes. Under current law, only a city in a county with a population of less than 500,000 may exclude tax increment from taxable value. (Companion bill is S.B. 657 by Brimer.) Lewis Position: Support Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/11/2003 Referred to House Local Government Ways & Means Committee 3/6/2003 Filed HB 1942 Gas Utilities Last Activity: 4/8/2003 West Description: would provide incentives to encourage gas utilities to invest in new infrastructure by: (1) allowing a gas utility to adjust the monthly customer charge or initial block rate without action of the Railroad Commission (RRC) to recover the cost of a new investment in an amount up to that necessary to cover the return on investment, depreciation expense, ad valorem taxes, revenue-related taxes, and incremental federal income taxes related to the difference in the value of the invested capital; and (2) requiring a gas utility, prior to adjusting a rate, to file an annual report with the RRC describing the investment projects completed and placed in service during the preceding calendar year, the investments retired or abandoned during the preceding calendar year, and demonstrating the utility's earnings during the preceding calendar year. Position: Strongly Oppose Committee: Regulated Industries Department Effected: Finance History: 4/8/2003 Voted Favorably from House Regulated Industries Committee as substituted 3/12/2003 Referred to House Regulated Industries Committee 317/2003 Filed VVednesday, l\pril 23, 2003 Page 21 of 50 e e Goodman e HB 2088 Authorized Review Last Activity: 4/9/2003 Description: would: (1) allow a city to conduct an authorized review of a certificated telecommunications provider's (CTP) business records to ensure compliance with access line reporting requirements if commenced within 120 days after the filing of a CTP's verified report of access lines; (2) authorize the Public Utility Commission (PUC) to promulgate rules to establish uniform procedures for cities to conduct the authorized reviews of a CTP's business records; and (3) provide that the rules shall, at a minimum: (a) identify the types of records subject to review; (b) ensure the confidential and proprietary nature of the business records while allowing cities full access; (c) state that conducting an authorized review shall not be interpreted as an administrative remedy that must be exhausted before a city may initiate other legal action; (d) impose penalties for non-compliance that is revealed by the review or for failure to provide complete records during the review process; (e) require a CTP who is shown to be non-compliant by the review or who fails to provide complete records during the review process to pay all costs of the review, plus interest; and (f) allow the PUC to act as mediator of the review if agreed to by the parties. Position: Support Committee: Regulated Industries Department Effected: Development History: 4/9/2003 Left Pending in House Regulated Industries Committee 3/17/2003 Referred to House Regulated Industries Committee 3/10/2003 Filed Wilson HB 2120 Property Taxes Last Activity: 4/212003 Description: would put local appraisal districts under the control of the state comptroller and would abolish district boards of directors. Position: Oppose Committee: Ways & Means Department Effected: Administration History: 4/2/2003 Left Pending in House Ways & Means 3/17/2003 Referred to House Ways & Means Committee 3/10/2003 Filed Wednesday, April 23, 2003 Page 22 of 50 HB 2130 Permit Vesting Last Activity: 3/24/2003 Description: would remove the existing exemption to the permit vesting statute that allows a city to enact regulations designed to prevent imminent destruction of property or injury to persons, and would change that exemption to one that allows only regulations necessary to protect an area from flooding. (Note: this bill is identical to H.B. 1400, also by Kuempel). Position: Oppos.e Committee: Land and Resource Management Kuempel Department Effected: Development History: 3/24/2003 Voted Favorably from House Land and Resource Management Committee as substitl 3/17/2003 Referred to House Land and Resource Management Committee 3/10/2003 Filed HB 2179 Signs Last Activity: 4/8/2003 Description: would provide that a city that regulates signs may require the removal of an on-premise sign not later than the first anniversary of the date the business, person, or activity that the sign identifies or advertises ceases to operate on the premises on which the sign is located. (Companion bill is S.B. 656 by Brimer.) Position: Support Committee: Urban Affairs Truitt Department Effected: Development History: 4/8/2003 Voted Favorably from House Urban Affairs as substituted 3/17/2003 Referred to House Urban Affairs Committee 3/11/2003 Filed HB 2335 Electric Utilities Last Activity: 4/9/2003 Description: Cities' market power bill - limits generation capacity within zones. Turner Position: Support Committee: Regulated Industries Department Effected: Administration History: 4/9/2003 Voted Favorably from House Regulated Industries Committee 3/18/2003 Referred to House Regulated Industries Committee 3/11/2003 Filed Wednesday. April 23, 2003 Page 23 of 50 e e e HB 2336 Electric Utilities Last Activity: 3/18/2003 Description: Cities' bill related to electric utility's duties to customers. Turner Position: Support Committee: Regulated Industries Department Effected: Administration History: 3/18/2003 Referred to House Regulated Industries Committee 3/11/2003 Filed Turner HB 2337 Electric Utilities Last Activity: 3/18/2003 Description: would allow a political subdivision aggregator to make contracts for the purchase of electricity and energy services, and take any other action necessary for the purchase of electricity and energy services. Position: Support Committee: Regulated Industries Department Effected: Administration History: 3/18/2003 Referred to House Regulated Industries Committee 3/11/2003 Filed HB 2338 Electric Utilities Last Activity: 3/18/2003 Description: Cities' bill authorizing revocation of certificate for billing failures. Turner Position: Support Committee: Regulated Industries Department Effected: Budget & Research History: 3/18/2003 Referred to House Regulated Industries Committee 3/11/2003 Filed Wednesday, April 23, 2003 Page 24 of 50 HB 2339 Electric Utilities Last Activity: 3/18/2003 Description: To strengthen consumer protection and address billing and switching problems that have plagued the retail market since it opened. Provides political subdivision aggregators access to ERCOT data portal. Position: Support Committee: Regulated Industries Turner Department Effected: Finance History: 3/18/2003 Referred to House Regulated Industries Committee 3/11/2003 Filed HB 2340 Electric Deregulation Last Activity: 4/1/2003 Turner Description: Limits competitive metering to large industrial and commercial customers. Implementation expense surcharged to those classes. Position: Support Committee: Regulated Industries Department Effected: Administration History: 4/1/2003 Left Pending in House Regulated Industries Committee 3/18/2003 Referred to House Regulated Industries Committee 3/11/2003 Filed HB 2345 Zoning Last Activity: 4/10/2003 Mowery Description: would require a city's zoning commission to change the zoning of a property to a different category as requested by a landowner if, after receiving a petition of an owner of undeveloped property and holding a hearing, the landowner establishes that the zoning of the undeveloped property is of a category for which, after disregarding the landowner's property, there is a supply in the city that is sufficient to meet the needs of the city for more than the next twenty- five years. Position: Oppose Committee: Urban Affairs Department Effected: Development History: 4/10/2003 Left Pending in House Urban Affairs 3/28/2003 Referred to House Urban Affairs Committee 3/11/2003 Filed Wednesday. Apri123. 2003 Page 25 of 50 e e Solis e HB 2422 Reckless Driving Last Activity: 3/18/2003 Description: would provide that reckless driving shall be a Class B misdemeanor. (Under current law, it is a lesser offense.) (This bill is the same as H.B. 731 by Martinez Fischer and H.B. 2487 by Oliveira.) Position: Support Committee: Transportation Department Effected: Police History: 3/18/2003 Referred to House Transportation Committee 3/12/2003 Filed Oliveira HB 2487 Reckless Driving Last Activity: 3/18/2003 Description: would provide that reckless driving shall be a Class B misdemeanor. (Under current law, it is a lesser offense.) (This bill is the same as H.B. 731 by Martinez Fischer and H.B. 2422 by Solis.) Position: Support Committee: Transportation Department Effected: Police History: 3/18/2003 Referred to House Transportation Committee 3/12/2003 Filed Madden HB 2528 Electricity Aggregation Last Activity: 3/24/2003 Description: Would allow school districts to purchase electricity through a political subdivision agrregation corporation. Position: Support Committee: Public Education Department Effected: Administration History: 3/24/2003 Referred to House Public Education Committee 3/13/2003 Filed Wednesday, April 23, 2003 Page 26 of 50 HB 2615 Electric Utilities Last Activity: 3/24/2003 Description: would: (1) allow the governing body of a city that is participating in or conducting an electric ratemaking proceeding to engage rate consultants, accountants, auditors, attorneys, and engineers to assist the governing body with the litigation; and (2) require an electric utility or the affiliated retail electric provider in the ratemaking proceeding to reimburse the city for the reasonable cost of the services. Turner Position: Support Committee: Regulated Industries Department Effected: Budget & Research History: 3/24/2003 Referred to House Regulated Industries Committee 3/13/2003 Filed HB 2623 Sales Tax Rebates Last Activity: 4/212003 Description: would prevent cities from granting sales tax rebates for the purpose of persuading businesses to move all or part of their existing business from one city to another. (Companion bill is SB 1262) Hegar Position: Oppose Committee: Economic DeVelopment Department Effected: Development History: 4/2/2003 Left Pending in House Economic Development 3/24/2003 Referred to House Economic Development Committee 3/13/2003 Filed HB 2835 Economic Development Last Activity: 3/26/2003 Description: would require that any project undertaken by a 4A or 4B economic development corporation must produce a "measurable gain" in terms of new jobs created or new taxes generated. Brown, B. Position: Oppose Committee: Economic Development Department Effected: Development History: 3/26/2003 Referred to House Economic Development Committee 3/13/2003 Filed Wednesday, April 23, 2003 Page 27 of 50 e HB 2853 Court Surcharge Last Activity: 3/26/2003 Description: would impose a new one-dollar state surcharge on all Class C misdemeanor convictions in municipal court to fund a judicial integrity account in the state treasury, and would add a one- dollar filing fee to any civil action filed in a municipal court to create a state judicial integrity fund. Rodriguez Position: Oppose Committee: Judicial Affairs Department Effected: Municipal Court History: 3/26/2003 Referred to House Judicial Affairs Committee 3/13/2003 Filed HB 2912 Economic Development Last Activity: 4/9/2003 Description: would make the following changes regarding economic development corporations (EDCs): (1) limit the use of 4A and 48 sales tax proceeds to manufacturing and industrial facilities and projects; (2) repeal the authority of EDCs to engage in generalized commercial assistance, including job training; (3) repeal the authority of EDCs to spend tax proceeds on municipal buildings; anc;t (3) restrict the use of direct financial incentives to encourage a business to relocate, by limiting the use of such incentives to situations where the incentive is governed by compliance with a performance agreement. Homer Position: Oppose Committee: Economic Development e Department Effected: Development History: 4/9/2003 Voted Favorably from House Economic Development as substituted 4/2/2003 Left Pending in House Economic Development Committee 3/27/2003 Referred to House Economic Development Committee 3/13/2003 Filed HB 2946 Electric Utilities Last Activity: 3/27/2003 Description: The legislature previously defined the methodology for caluculating electric franchise fees but failed to include an escalator provision like the one provided for with telecommunications franchise fees. This bill incorporates the same statutory escalator language on sales of electricity that was previously used for telecommunications usage within a city. Goodman Position: Support Committee: Regulated Industries Department Effected: Budget & Research History: 3/27/2003 Referred to House Regulated Industries Committee 3/14/2003 Filed e Wednesday, April 23. 2003 Page 28 of 50 HB 3037 Electric Aggregation Last Activity: 3/28/2003 Description: would allow a political subdivision aggregator to negotiate for the purchase of electricity and energy services, make contracts for the purchase of electricity and energy services, and take any other action necessary to purchase electricity and energy services on behalf of the citizens of the political subdivision; but would prohibit a political subdivision from adopting an ordinance or resolution providing for automatic enrollment of citizens in aggregation services unless a majority of the qualified voters of the political subdivision vote in an election to approve the automatic enrollment. The bill provides that if the voters of the political' subdivision voting in the election approve automatic enrollment in aggregation services, the political subdivision must inform each citizen in writing that the citizen will be automatically enrolled unless the citizen expressly requests to not be enrolled. Cook Position: Support Committee: Regulated Industries Department Effected: Administration History: 3/28/2003 Referred to House Regulated Industries Committee 3/14/2003 Filed HB 3143 Streamlined Sales Tax Last Activity: 3/31/2003 Description: would enact the statutory changes called for by the multi-state Streamlined Sales Tax Agreement, and would authorize the state comptroller to formally enter into the agreement on behalf of Texas. The bill would affect cities in the following ways: (1) for goods shipped within Texas, provide that local sales taxes are sourced at the point of delivery rather than the point of origin, as current law provides; (2) provide numerous changes to the sourcing of telecommunications services, including provisions that may source telecommunications at the point where a call terminates in certain cases, as opposed to exclusive sourcing at the point of origin under current law; (3) cancel the authority of cities to opt-out of the current sales tax holiday; and (4) provide that the sourcing changes listed above will not be effective until July 1, 2004, while the remainder of the bill takes effect October 1, 2003. (Companion bill is S. B. 823 by Fraser.) Wilson Position: Strongly Oppose Committee: Ways & Means Department Effected: Budget & Research History: 4/9/2003 Left Pending in House Ways & Means 3/31/2003 Referred to House Ways & Means Committee 3/14/2003 Filed Wednesday. April 23, 2003 Page 29 of 50 HB 3154 Sales Taxes Last Activity: 3/31/2003 Bonnen e Description: would: (1) permit a city or its representative to report to the state comptroller an individual business the city believes is not properly collecting sales taxes; (2) permit the comptroller to investigate and report to the city the amount of taxes that were not collected by such a business; and (3) impose increased confidentiality requirements on cities and their representatives who receive such sales tax information. (Companion bill is S.B. 1433 by Averitt.) Position: Support Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/31/2003 Referred to House Local Government Ways & Means Committee 3/14/2003 Filed HB 3160 Collective Bargaining Last Activity: 4/9/2003 Description: would eliminate the general prohibition on a political subdivision entering into a collective bargaining agreement with a labor organization, but would retain the prohibition on the state govemment engaging in c.ollective bargaining. Capelo Position: Oppose Committee: County Affairs Department Effected: Human Resources - History: 4/9/2003 Left Pending in House County Affairs 3/31/2003 Referred to House County Affairs Committee 3/14/2003 Filed HB 3178 Unfunded Mandates Last Activity: 3/31/2003 Description: would provide that if the interagency unfunded mandates task force identifies an unfunded mandate and the legislature fails to continue the mandate, the mandate shall expire. Homer Position: Support Committee: Government Reform Department Effected: Administration History: 4/10/2003 Left Pending in House Government Reform 3/31/2003 Referred to House Government Reform Committee 3/14/2003 Filed e Wednesday, April 23. 2003 Page 30 of 50 HB 3185 Public Transportation Last Activity: 4/16/2003 Description: would require the Texas Transportation Commission to adopt rules establishing a formula for allocating funds among public transportation providers that may take into account a transportation provider's performance, the number of its riders, the need of residents in its service area for public transportation, population,population density, land area, and other factors established by the Commission. Hill Position: Oppose Committee: Transportation Department Effected: Budget & Research History: 4/16/2003 Voted Favorably from House Transportation 3/31/2003 Referred to House Transportation Committee 3/14/2003 Filed HB 3223 Property Taxes Last Activity: 3/27/2003 Bohac Description: would impose a five-percent maximum annual increase in the taxable value of all real property. (Note: this legislation would become effective only if H.J.R. 4 is approved by Texas voters.) Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/27/2003 Referred to House Local Government Ways & Means Committee 3/14/2003 Filed HB 3228 Property Taxes Last Activity: 3/27/2003 Description: would "freeze" city and county property taxes on the homesteads of disabled persons. (Note: this legislation would become effective only if H.J.R. 5 is approved by Texas voters.) Moreno, P. Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/27/2003 Referred to House Local Government Ways & Means Committee 3/14/2003 Filed Wednesday, April23, 2003 Page 31 of 50 ~:.- . Mabry e HB 3466 Public Information Last Activity: 4/1/2003 Description: would create a new exemption under the Texas Public Information Act to allow a city to protect information relating to a water system vulnerability assessment. Position: Support Committee: State Affairs Department Effected: Administration History: 4/1/2003 Referred to House State Affairs Committee 3/14/2003 Filed Raymond HB 3500 Homeland Security Fee Last Activity: 4/1/2003 Description: would impose a new homeland security fee on every corporation in the state that is subject to the state franchise tax, and would use the money generated to make grants to local police and fire departments to use for projects related to homeland security. Position: Support Committee: Ways & Means Department Effected: Police History: 4/1/2003 Referred to House Ways & Means Committee 3/14/2003 Filed Laubenberg HB 3534 Sales Taxes Last Activity: 4/16/2003 Description: would provide that "place of business of the retailer" as defined in the Tax Code shall not mean a location which contracts with a business to process invoices for the purpose of avoiding the sales tax. Position: Support Committee: Local Government Ways & Means Department Effected: Budget & Research History: 4/16/2003 Voted Favorably from House Local Government Ways & Means as substituted 4/2/2003 Referred to House Local Government Ways & Means Committee 3/14/2003 Filed Wednesday, April 23. 2003 Page 32 of 50 HJR 4 Property Taxes Last Activity: 3/27/2003 Description: would amend the Texas Constitution to authorize the legislature to impose a five-percent maximum annual increase in the taxable value of all real property. (Note: Please see H.B. 3223) Bohac Position: Oppose Committee: Local Government Ways & Means Depàrtment Effected: Budget & Research History: 3/27/2003 Referred to House Local Govemment Ways & Means 3/14/2003 Filed HJR 5 Property Taxes Last Activity: 3/27/2003 Description: would amend the Texas Constitution to "freeze" city and county property taxes on the homesteads of disabled persons. (Note: Please see H.B. 3228) Moreno, P. Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/27/2003 Referred to House Local Government Ways & Means Committee 3/14/2003 Filed HJR 12 Property Tax Exemption for Travel Trailers Last Activity: 3/31/2003 Description: Would amend the Texas Constitution to authorize the legislature to make property tax exemptions on travel trailers mandatory, rather than local option. Would also permit the exemption of school district property taxes on travel trailers. Chisum Position: Strongly Oppose Committee: Calendars Department Effected: Budget & Research History: Wednesday, April 23, 2003 Page 33 of 50 e 3/31/2003 Laid on the table subject to call 3/25/2003 Placed on Constitutional Amendments Calendar 3/20/2003 Considered in Calendars 3/11/2003 Committee Report sent to Calendars 3/6/2003 Voted Favorably from House Local Government Ways & Means Committee as substi 2/20/2003 Left Pending in House Local Government Ways & Means Committee 2/10/2003 Referred to House Local Government Ways & Means Committee 12/10/200 Filed 2 HJR 14 Property Tax Exemption - Child Care Facilities Last Activity: 3/6/2003 Description: Would amend the Texas Constitution to authorize a property tax exemption for child care facilities. The exemption would be at the option of the local governing body, or an election would be required if a petition received by 20% of the voters. Chavez Position: Strongly Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/6/2003 Left Pending in House Local Government Ways & Means Committee 2/10/2003 Referred to House Local Government Ways & Means Committee Committee 12/10/200 Filed 2 It HJR 16 Property Tax Exemption for over 65 Last Activity: 3/13/2003 Description: Would amend the TX Constitution to authorize a freeze on city and county property taxes for homesteads of persons over 65 at the option of the local governing body or by ballot or voters after 5% petition. Brown, F Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/13/2003 Left Pending in House Local Government Ways & Means Committee 2/10/2003 Referred to House Local Government Ways & Means Committee 12/10/200 Filed 2 . Wednesday, April 23, 2003 Page 34 of 50 HJR 32 Property Taxes Last Activity: 3/13/2003 Description: Would amend the Texas Constitution to authorize the legislature to impose a five percent statutory cap in annual increases in a homestead's value. (Current law authorizes a ten percent cap. See HB 474) Wong Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/13/2003 Left Pending in House Local Govemment Ways & Means Committee 2/10/2003 Referred to House Local Government Ways & Means Committee 1/21/2003 Filed HJR 38 Property Taxes Last Activity: 2/18/2003 Description: Would amend the Texas Constitution to "freeze" city and county property taxes on the homesteads of persons over the age of 65 and disabled persons. (See HB 701) Gutierrez Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 2/18/2003 Referred to House Local Government Ways & Means Committee 2/4/2003 Filed HJR 60 Property Taxes Last Activity: 3/13/2003 Description: would amend the Texas Constitution to "freeze" city and county property taxes on the homestead of a person over the age of 65. McClendon Position: Strongly Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/13/2003 Left Pending in House Local Government Ways & Means Committee 3/5/2003 Referred to House Local Government Ways & Means Committee 2/27/2003 Filed Wednesday, April 23. 2003 Page 35 of 50 . . Cook, R. e HJR 65 Property Taxes Last Activity: 4/10/2003 Description: would amend the Texas Constitution to authorize the legislature to permit the taxation of property owned by a city, but located outside the city's limits, by other taxing entities if the governing bodies of the other taxing entities vote to tax the city property. (See HB 1533) Position: Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 4/10/2003 Left Pending in House Local Government Ways & Means Committee 3/5/2003 Referred to House Local Government Ways & Means Committee 3/3/2003 Filed Hegar HJR 69 Property Taxes Last Activity: 3/20/2003 Description: would amend the Texas Constitution to authorize the legislature to allow no annual increase in a homestead's taxable value. (See HB 1782) Position: Strongly Oppose Committee: Local Government Ways & Means Department Effected: Budget & Research History: 3/20/2003 Left Pending in House Local Government Ways & Means Committee 3/12/2003 Referred to House Local Government Ways & Means Committee 3/5/2003 Filed VVednesday, April 23, 2003 Page 36 of 50 sa 11 Homeland Security Last Activity: 3/20/2003 Description: would: (1) require the governor to develop a statewide homeland security strategy to improve the state's ability to detect and deter threats, respond to homeland security emergencies, and recover from homeland security emergencies; (2) create the Critical Infrastructure Protection Council composed of state agency heads (but no local officials) to advise the governor on the development and coordination of a statewide critical infrastructure protection strategy; (3) allow the governor to appoint an advisory committee composed of representatives from local agencies or non-governmental entities to assist in the development and coordinatioR of a statewide homeland security strategy; (4) grant immunity from liability to an officer or employee of a state local agency who performs a homeland security activity; (5) grant immunity from civil liability to a state or local agency that furnishes homeland security services pursuant to an interlocal agreement; (6) require the governor's office to grant funding to state and local agencies for homeland security activities; and (7) require the Texas Department of Public Safety (DPS) to help implement the governor's homeland security strategy by serving as the state's primary entity for planning, coordinating, and integrating government communication capabilities. (This bill is identical to S.B. 869 by Shapiro.) Shapiro Position: Support Committee: Infrastructure Development and Security Department Effected: Police History: 3/20/2003 Referred to Senate Infrastructure Development and Security Committee 3/14/2003 Filed sa 124 Telecommunication Infrastructure Fund Last Activity: 1/29/2003 Description: Would: (1) provide that the Telecommunications Infrastructure Fund (TIF) is not subject to sunset review until September 1, 2009; (2) allow the amount of the TIF to reach a maximum amount of two billion dollars; (3) utilities and commercial mobile service providers if the amount in the fund exceeds certain amounts. (Companion bill is HB 46.) Shapleigh Position: Support Committee: Finance Department Effected: Information Services History: 1/29/2003 Referred to Senate Finance Committee 11/19/200 Filed 2 \ VVednesday, April 23, 2003 Page 37 of 50 sa 180 Property Taxes Last Activity: 1/30/2003 a Description: Would lower from ten percent to one percent the maximum yearly increase in taxable value of ., a residential homestead. (This legislation would become effective only if SJR 10 is approved by Texas voters.) Position: Strongly Oppose Committee: Finance Janek Department Effected: Budget & Research History: 1/30/2003 Referred to Senate Finance Committee 1/10/2003 Filed sa 181 Liability Last Activity: 1/30/2003 Description: Would provide that a person who administers emergency care in good faith is not liable for any civil damages for any act performed during the emergency no matter where the emergency care is performed, if the person is not a paid person who regularly administers care in a hospital emergency room, other health care facility, or a means of medical transport Janek Position: Support Committee: State Affairs Department Effected: Police . History: 1/30/2003 Referred to Senate State Affairs Committee 1/10/2003 Filed sa 225 Property Taxes Last Activity: 2/3/2003 Description: Would: (1) clarify that filing property renditions and reports is mandatory for taxpayers; (2) authorize the chief appraiser to seek an injunction for a property owner's failure to properly file a rendition or report; (3) exempt the first $10,000 of taxable, income-producing tangible property owned by a taxpayer, provided the taxpayer complies with all rendition and reporting requirements; (4) shift the burden of proof from the city to the taxpayer for tax protests at the appraisal review board if the taxpayer fails to properly file a property rendition or report; and (5) prevent the property owner from recovering attorney's fees following a successful court challenge of an appraisal if the the taxpayer fails to properly file a property rendition or report. Position: Support Committee: Finance Averitt Department Effected: Budget & Research History: 2/3/2003 Referred to Senate Finance Committee 1/21/2003 Filed . Wednesday, April 23, 2003 Page 38 of 50 SB 303 Last Activity: Industrialized Housing and Buildings 2/5/2003 Brimer Description: Would allow a city to regulate the location of industrialized structures, just as the city can currently regulate the location of manufactured housing. Position: Support Committee: Intergovernmental Relations Department Effected: Development History: 2/5/2003 Referred to Senate Intergovernmental Relations Committee 1/28/2003 Filed SB 325 Court Costs Last Activity: 4/9/2003 Description: Would require the state comptroller to compile a list of court fees adopted or increased during each legislative session and publish the list in the Texas Register no later than August 1 following the end of a legislative session, and would provide that any new or increased court fee would not become effective until January 1 after the effective date of the law imposing the new cost or fee. Armbrister Position: Support Committee: Finance Department Effected: Municipal Court History: 4/9/2003 Voted Favorably from Senate Finance Committee 2/6/2003 Referred to Senate Finance Committee 1/29/2003 Filed SB 341 Last Activity: Sales Tax Exemption 2/11/2003 Ellis Description: Would: (1) broaden the so-called "back-to-school" sales tax exemption to include school supplies, books, textbooks, and other instructional materials; and (2) repeal the ability of cities to opt-out of the current sales tax holiday. Position: Oppose Committee: Finance Department Effected: Budget & Research History: 2/11/2003 Referred to Senate Finance Committee 1/31/2003 Filed VVednesday,Apri123,2003 Page 39 of 50 sa 361 Highway Access Management Last Activity: 3/27/2003 . Description: Would prohibit the Texas Transportation Commission (TIC) from adopting or enforcing an order relating to highway access in a city if the rule is inconsistent with a rule adopted by that city before the effective date of the TIC's order. Position: Support Committee: Transportation Shapiro Department Effected: Polic.e History: 3/27/2003 Referred to House Transportation Committee 3/25/2003 Passed to Engrossment 3/17/2003 Voted Favorably from Senate Infrastructure Development and Security Committee as substituted 3/3/2003 Left Pending in Senate Infrastructure Development and Security Committee 2/11/2003 Referred to Senate Infrastructure Development and Security Committee 2/5/2003 Filed sa 383 Residential Construction Last Activity: 3/27/2003 Description: Would create the Texas Residential Construction Commission (TRCC) and require the TRCC to adopt rules relating to building standards for residential construction, state-sponsored inspection and dispute resolution, and approval of third-party warranty programs and inspectors. Duncan . Position: Support Committee: Business and Commerce Department Effected: Development History: 3/27/2003 Re-referred to Senate Business and Commerce Committee 2/11/2003 Referred to Senate State Affairs Committee 2/6/2003 Filed sa 420 County Development Districts Last Activity: 2/17/2003 Description: Would require, prior to creation of a CDD, proof of written notice to a city if a CDD's proposed boundaries include land in the extraterritorial jurisdicition (ET J) of the city, allow land within a city to be included in a CDD only if the city consents to the inclusion of the land in the CDD, among other things. Nelson Position: Support Committee: Intergovemmental Relations Department Effected: Development . History: Wednesday, April 23, 2003 Page 40 of 50 4/2/2003 Voted Favorably from Senate Intergovernmental Relations Committee as substituted 2/17/2003 Referred to Senate Intergovernmental Relations Committee 2/10/2003 Filed S8 458 Court Costs Last Activity: 3/27/2003 Description: Would require the state auditor's office to conduct an impacfstatement for each bill or proposed constitutional amendmentthat would impose a court cost on a criminal case or increase an existing court cost imposed in a criminal case; and would provide that the impact statement must show the total amount of court costs and fees a person would be required to pay under the proposed bill or resolution. Armbrister Position: Support Committee: Criminal Jurisprudence Department Effected: Municipal Court History: 3/27/2003 Referred to House Criminal Jurisprudence Committee 3/20/2003 Senate passed to Engrossment 3/11/2003 Voted Favorably from Senate Criminal Justice Committee as substituted 2/17/2003 Referred to Senate Criminal Justiçe Committee 2/12/2003 Filed S8 500 Licensing of Electricians Last Activity: 2/19/2003 Description: Would add the Texas Electrical Safety and Licensing Act to the Texas Occupations Code. (Companion is HB 1487) Armbrister Position: No position Committee: Business and Commerce Department Effected: Development History: 2/19/2003 Referred to Senate Business and Commerce Committee 2/14/2003 Filed S8 501 Last Activity: Handguns 4/8/2003 Armbrister Description: Would prevent a governmental entity (including a city) from using the criminal trespass statute to prohibit a concealed handgun licensee from carrying a handgun onto the entity's property. (Companion HB 878) Position: Oppose Committee: Criminal Jurisprudence Department Effected: Police History: Wednesday, April 23, 2003 Page 41 of 50 . . . 4/8/2003 Referred to House Criminal Jurisprudence Committee 4/3/2003 Passed to Engrossment 3/19/2003 Placed on intent calendar 3/11/2003 Voted Favorably from Senate Criminal Justice Committee as substituted 2/19/2003 Referred to Senate Criminal Justice Committee 2/14/2003 Filed Armbrister sa 502 Court Costs Last Activity: 2/19/2003 Description: Would: (1) consolidate the collection and remittance of all court costs and fees collected in municipal court; (2) establish a court cost of $40 for all non-jailable misdemeanors; (3) provide a uniform definition for the term "conviction" for purposes of determining when court costs and fees are due; and (4) provide for quarterly submittal of the fees. Position: Support Committee: Finance Department Effected: Municipal Court History: 2/19/2003 Referred to Senate Finance Committee 2/14/2003 Filed Wentworth sa 647 Public Information Last Activity: 2/27/2003 Description: Would provide that information relating to the vulnerability of utility infrastructure to disruption or damage by and intentional act of harm is confidential. Position: Support Committee: Infrastructure Development and Security Department Effected: Administration History: 3/27/2003 Left Pending in Senate Infrastructure Development and Security Committee 2/27/2003 Referred to Senate Infrastructure Development and Security Committee 2/21/2003 Filed Brimer sa 656 Signs Last Activity: 4/10/2003 Description: Would provide that a city that regulates signs may require the removal of an on-premise sign not later than the first anniversary of the date the business, person, or activity that the sign identifies or advertises ceases to operate on the premises on which the sign is located. Position: Support Committee: Urban Affairs Department Effected: Development History: VVednesday, April 23, 2003 Page 42 of 50 4/10/2003 Referred to House Urban Affairs Committee 4/8/2003 Passed to Engrossment 3/26/2003 Voted Favorably from Senate Intergovernmental Relations Committee as substituted 2/27/2003 Referred to Senate Intergovernmental Relations Committee 2/24/2003 Filed SB 657 . Tax Increment Financing Last Activity: 2/27/2003 Description: Would permit any city to exclude captured tax inèrement from its taxable value for effective and rollback rate calculation purposes. Under current law, only cities in counties with populations of less than 500,000 may exclude tax increment from taxable value. Brimer Position: Support Committee: Finance Department Effected: Budget & Research History: 2/27/2003 Referred to Senate Finance Committee 2/24/2003 Filed SB 660' Traffic Offenses Last Activity: 3/27/2003 Ogden Description: Would establish a maximum and a minimum fine for a person convicted of exceeding the speed limit by more than 25 miles-per-hour. The maximum fine would be $500 with the minimum fine amount set at $200. A city or county would be required to send $200 of each fine collected to the state for each of these speeding violations; and the state would use the money to fund a statewide traffic safety program. Position: Oppose Committee: Transportation Department Effected: Municipal Court History: 3/27/2003 Referred to House Transporation Committee 3/26/2003 Passed to Engrossment 3/10/2003 Voted Favorably from Senate Infrastructure Development and Security Committee 3/3/2003 Left Pending in Senate Infrastructure Development and Securtiy Committee 2/27/2003 Referred to Senate Infrastructure Development and Security Committee 2/24/2003 Filed VVednesday,ApriI23,2003 Page 43 of 50 ~ . . SB 663 State Tax on Court Fines Last Activity: 4/9/2003 Ogden . Description: Would create a new, five-dollar state tax on each court fine to be paid upon the conviction of any misdemeanor, with ten percent of the tax revenue going to fund the State Center for Transportation Safety and the remainder going to the Texas Department of Public Safety (DPS) to fund traffic enforcement in areas in which DPS determines there is a need for additional enforcement. The bill would also exclude this new tax from being consolidated with other state taxes paid on court fines in municipal court. Position: Oppose Committee: Law Enforcement Department Effected: Municipal Court History: 4/9/2003 Referred to House Law Enforcement Committee 4n/2003 Passed to Engrossment 3/19/2003 Voted Favorably from Senate Infrastructure Development and Security Committee as substituted 3/10/2003 Left Pending in Senate Infrastructure Development and Security Committee 2/27/2003 Referred to Senate Infrastructure Development and Security Committee 2/24/2003 Filed Gallegos SB 672 Collective Bargaining Last Activity: 2/27/2003 Description: Would authorize a city to "meet and confer" (engage in collective bargaining) with a fire fighter association without a petition and popular vote, as is required by current law. Position: Oppose Committee: Intergovernmental Relations Department Effected: Human Resources History: 2/27/2003 Referred to Senate Intergovernmental Relations Committee 2/24/2003 Filed West SB 687 Electricity Aggregation Last Activity: 3/3/2003 Description: Would allow school districts to purchase electricity through a political subdivision agrregation corporation. Position: Support Committee: Education Department Effected: Administration History: 3/3/2003 Referred to Senate Education Committee 2/25/2003 Filed VVednesday, Þ4Pri123, 2003 Page 44 of 50 sa 763 Open Government Last Activity: 3/27/2003 Lindsay Description: would allow a county commissioners court or city council to hold an executive session to deliberate the details, or specific occasions for implementation, of a plan for responding to an act of terrorism, and would except from disclosure any information relating to the plan. Position: Support Committee: Infrastructure Development and Security Department Effected: Administration History: 3/27/2003 Left Pending in Senate Infrastructure Development and Security Committee 3/5/2003 Referred to Senate Infrastructure Development and Security Committee 2/28/2003 Filed sa 784 Elections Dates Last Activity: 3/5/2003 Description: Would reduce the number of uniform election dates from four to two with the two new uniform election dates being the first Saturday in May and the first Tuesday after the first Monday in November, and would require that all elections, except a run-off election, must be held on one of the two uniform election dates. The bill would also require a city, if necessary, to change its election date to one of the two dates no later than December 31, 2003. Armbrister Position: Oppose Committee: State Affairs Department Effected: City Secretary History: 3/5/2003 Referred to Senate State Affairs Committee 2/28/2003 Filed sa 823 Streamlined Sales Tax Last Activity: 3/10/2003 Description: would enact the statutory changes called for by the multi-state Streamlined Sales Tax Agreement, and would authorize the state comptroller to formally enter into the agreement on behalf of Texas. The bill would affect cities in the following ways: (1) for goods shipped within Texas, provide that local sales taxes are sourced at the point of delivery rather than the point of origin, as current law provides; (2) provide numerous changes to the sourcing of telecommunications services, including provisions that may source telecommunications at the point where a call terminates in certain cases, as opposed to exclusive sourcing at the point of origin under current law; (3) cancel the authority of cities to opt-out of the current sales tax holiday; and (4) provide that the sourcing changes listed above will not be effective until July 1, 2004, while the remainder of the bill takes effect October 1 2003. Fraser Position: Strongly Oppose Committee: Finance Department Effected: Budget & Research History: Wednesday, April 23, 2003 Page 45 of 50 3/10/2003 Referred to Senate Finance Committee 3/3/2003 Filed . SB 850 Contracts and Bidding Last Activity: 417/2003 Description: would permit a city by ordinance to refuse to contract with, or accept the low bid of, persons or businesses that are indebted to the city. Position: Support Committee: County Affairs . Lindsay Department Effected: Administration History: 417/2003 Referred to House County Affairs Committee 4/3/2003 Passed to Engrossment 3/26/2003 Voted Favorably from Senate Intergovernmental Relations Committee 3/10/2003 Referred to Senate Intergovemmental Relations Committee 3/4/2003 Filed SB 872 Security/Open Government Last Activity: 3/27/2003 Wentworth Description: would: (1) provide that a govemmental body is not required to conduct an open meeting to deliberate tactical, security, or emergency procedures in a plan for preventing or responding to terrorism; or to deliberate an engineering, architectural, or similar plan or drawing if such deliberation in an open meeting could jeopardize health, safety, and security; and (2) exempt from the Public Information Act information relating to tactical, security, or emergency procedures in a plan for preventing or responding to terrorism; and information that relates to engineering, architectural, or similar plan or drawing if disclosure of such information would jeopardize health, safety, or security. . Position: Support Committee: Infrastructure Development and Security Department Effected: Administration History: 3/27/2003 Left Pending in Senate Infrastructure Development and Security Committee 3/11/2003 Referred to Senate Infrastructure Development and Security Committee 3/5/2003 Filed . Wednesday, April 23, 2003 Page 46 of 50 sa 991 Zoning Last Activity: 3/13/2003 Description: would allow a city to regulate the appearance or architectural style of buildings or other structures, including the types of building materials that may be used or the amount of masonry that must be contained on the exterior of the building or structure, and the appearance of yards, courts, or open spaces, including the types or quantities of plants or landscaping materials required. The bill would also subject these regulations to the provisions of Chapter 245 of the Local Government Code, the permit "vesting" statute. ( Companion bill is H.B. 1207 by Kuernpel.) Armbrister Position: Support Committee: Intergovernmental Relations Department Effected: Development History: 3/13/2003 Referred to Senate Intergovernmental Relations Committee 3/7/2003 Filed sa 1026 Police and Fire Last Activity: 3/17/2003 Description: would: (1) allow police or fire collective bargaining in every city without a petition and popular vote as is currently required; and (2) repeal the alternate promotion system in police departments covered by Chapter 143 of the Local Government Code (fire and police civil service). (Companion bill is H.B. 1774 by Bailey.) Position: Oppose Committee: State Affairs Gallegos Department Effected: Human Resources History: 3/17/2003 Referred to Senate State Affairs Committee 3/7/2003 Filed sa 1047 Councilmember's Legislative Actions Last Activity: 417/2003 Description: would prohibit a member of a city council from being sanctioned, penalized, or disciplined in connection with the person's practice of a licensed or regulated profession for any action the council member may have taken in a legislative capacity on the city council. Position: Support Committee: State Affairs Ellis Department Effected: Administration History: VVednesday, l4>ril 23.2003 Page 47 of 50 ~ " . . 417/2003 Referred to House State Affairs Committee 4/2/2003 Passed to Engrossment 3/24/2003 Voted Favorably from Senate State Affairs as substituted 3/17/2003 Referred to Senate State Affairs Committee 317/2003 Filed Armbrister sa 1262 Sales Tax Rebates Last Activity: 3/19/2003 Description: would prevent cities from granting sales tax rebates for the purpose of persuading businesses to move all or part of their existing business from one city to another. (Companion bill is H.B. 2623 by Hegar.) . Position: Oppose Committee: Intergovernmental Relations Department Effected: Development History: 3/19/2003 Referred to Senate Intergovernmental Relations Committee 3/12/2003 Filed Armbrister sa 1271 Gas Utilities Last Activity: 4/10/2003 Description: would provide incentives to encourage gas utilities to invest in new infrastructure by: (1) allowing a gas utility to adjust the monthly customer charge or initial block rate without action of the Railroad Commission (RRC) to recover the cost of a new investment in an amount up to that necessary to cover the return on investment, depreciation expense, ad valorem taxes, revenue-related taxes, and incremental federal income taxes related to the difference in the value of the invested capital; and (2) requiring a gas utility, prior to adjusting a rate, to file an annual report with the RRC describing the investment projects completed and placed in service during the preceding calendar year, the investments retired or abandoned during the preceding calendar year, and demonstrating the utility's earnings during the preceding calendar year. (Companion bill is H.B. 1942 by West.) Position: Strongly Oppose Committee: Natural Resources Department Effected: Finance History: 4/10/2003 Voted Favorably from Senate Natural Resources as sustituted 3/19/2003 Referred to Senate Natural Resources Committee 3/12/2003 Filed VVednesday,Apri123,2003 Page 48 of 50 sa 1326 Industrialized Housing Last Activity: 3/19/2003 Description: would authorize a city to adopt regulations regarding the location of industrialized housing or buildings, including regulations prohibiting the construction or installation of industrialized housing or buildings in a residential area. Carona Position: Support Committee: Business and Commerce Department Effected: Development History: 3/19/2003 Referred to Senate Business and Commerce Committee 3/12/2003 Filed sa 1383 Electric Deregulation Last Activity: 3/19/2003 Armbrister Description: Limits competitive metering to large industrial and commercial customers. Implementation expense surcharged to those classes. Position: Support Committee: Business and Commerce· Department Effected: Administration History: 3/19/2003 Referred to Senate Business and Commerce Committee 3/12/2003 Filed sa 1401 Telecommunications Infrastructure Fund Last Activity: 3/20/2003 Description: would: (1) abolish the telecommunications infrastructure fund (TIF) board; (2) put the TIF under the control of the state comptroller; and (3) provide that TIF proceeds may be available as general state revenue under certain budgetary conditions. Position: Oppose Committee: Finance Fraser Department Effected: Budget & Research History: 3/20/2003 Referred to Senate Finance Committee 3/13/2003 Filed VVednesday,ApriI23,2003 Page 49 of 50 SB 1766 State Agency Rules Last Activity: 3/24/2003 . Description: would prohibit a state agency from adopting rules that impose costs on local governments unless the legislature specifically authorizes the rules. (Companion bill is H.B. 426 by Christian.) Deuell Position: Support Committee: Government Organization Department Effected: Administration History: 3/24/2003 Referred to Senate Government Organization Committee 3/14/2003 Filed SB 1792 Gas Utilities Last Activity: 3/24/2003 Description: Permits cities and other parties to seek reductions to price to beat when gas prices decline. Today it is a one way street with only utilities being allowed to seek adjustments to price to beat fuel factors. Barrientos Position: Support Committee: Business and Commerce Department Effected: Budget & Research History: 3/24/2003 Referred to Senate Business and Commerce Committee . 3/14/2003 Filed Janek SJR 10 Property Taxes Last Activity: 2/6/2003 Description: Would amend the Texas Constitution to authorize the legislature to impose a statutory cap on annual increases in a homestead's value that is less than the minimum of ten percent currently allowed by the Constitution. (See SB 180) Position: Oppose Committee: Finance Department Effected: Budget & Research History: 2/6/2003 Referred to Senate Finance Committee 1/10/2003 Filed . VVednesday,ApriI23,2003 Page 50 of 50 ... INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2003-040 ~ Date: ~ Subject: April 28, 2003 Tax Exemption for Organizations Engaged Primarily in Performing Charitable Functions House Bill 1689 created a local option property tax exemption for organizations engaged primarily in charitable activities. Under House Bill 1689, individual taxing units must adopt the exemption: . By vote of the governing body; or . By majority vote at an election called by the governing body upon petition by 20 percent of the qualified voters who voted in the taxing unit's last election. The taxing unit votes to adopt the exemption for all qualified organization in its jurisdiction. It cannot "pick and choose" among those eligible for the exemption. Each taxing unit must decide its exemption policy. Any election by petition is by taxing unit, not for all taxing units in the appraisal district. If the exemption is adopted it applies not only to those organizations currently located in North Richland Hills, but also to those that may locate here in the future. The law requires the organization to be engaged primarily in performing one or more of the 20 .utOry charitable functions listed in Sec. 11.18( d) of the Tax Code. If a taxing unit adopts the mption, an organization is entitled to exemption of buildings, other real property and tangible personal property used exclusively [for the charitable fu nction listed in § 11.18( d)] by the organization or other charitable organizations. An organization may be qualified, but receive no benefit from the exemption, because either it owns no property or the appraisal district determines that the property is not used exclusively for qualifying charitable activities. An organization is required to apply for a "determination letter" from the Comptroller's office. An organization must meet all considerations as determined by the Comptroller's office before a determination letter is issued. After receipt of the determination letter, the organization files an exemption application with the chief appraiser. The chief appraiser will determine an organization's property qualification for exemption based on: authorization of exemption by one or more taxing units; receipt of Comptroller determination letter; and whether the property is used exclusively by the organization for charitable purposes. The City has received a request for the exemption from Smithfield Masonic Lodge #455. The Lodge currently pays about $350 per year to the City in property taxes. We tried to determine what other organizations could potentially file for the exemption and came up with about a half dozen. But, there could be many more than that. It is very difficult to determine how many there e ... ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS .. ; are because there is no centralized record on these types of organizations. Because of this we are not able to determine the future impact of the exemption. But, from what we found, it A:>oks like some of the organizations that fall within the charitable organization category would ~ot qualify for the exemption because they do not own taxable property. None of our neighboring cities nor the two school districts located in North Richland Hills provide this tax exemption. According to the Tarrant Appraisal District, Crowley and Everman lSD's allow the exemption as do the cities of Arlington, Crowley and River Oaks. Unless the other taxing entities in our area grant this exemption, staff does not recommend the City granting the exemption. If we are the only entity with the exemption, then there is more of a chance of charitable organizations moving to the City in order to receive the exemption. This would erode our existing tax revenue base. Council has three options: 1) Do nothing at this time; 2) Wait to see if other taxing entities in our area grant the exemption or 3) Place an item on the next Council agenda to vote on adopting the exemption. Doing nothing at this time would mean the exemption would not be available to qualifying organizations. This also would mean that a qualifying organization could petition for a vote in the next election. Staff is requesting direction from Council on whether to place an item on the next Council agenda to vote on adopting the exemption. Respectfully Submitted, . ~aren R. Bostic Managing Director of Administrative/Fiscal Services - ... , · · · Smithfield Masonic Lodge #455 P.O. Box 821413 Ft. Wo~ Texas 76182-1413 North Richland Hil~s, City Secretary P.O. Box 820609 North Richland Hills, Texas 76182-0609 To whom it may conce~ You will find attached a letter from the Texas Comptroller's Office stating that our organization qualifies for property tax exemption and the following resolution from Smithfield Masonic Lodge #455 requesting your recognition and adoption. Our application has been filed with the Tarrant Appraisal District and they will be requesting your approval soon. Resolution WHEREAS, Smithfield Masonic Lodge #455 is an integral part of this community~ and WHEREAS, Smithfield Masonic Lodge #455 has incorporated in its Bylaws a requirement to perform Charitable Work and Public Service; and WHEREAS, this Lodge and its Members have supported, and continue to support such great Masonic Charities as the Texas Scottish Rite Hospital for Children; the Shriner's Hospitals for Children; the Shriner's Burn Institutes; the Masonic Home and School for Children; the Texas Masonic Retirement Center; the Eastern Star Home for the Elderly; the Scottish Rite Dormitory for Girls in Austin; various scholarships at Richland Hills High School and Birdville High School and various Camps for the Handicapped; and WHEREAS, these and other charitable works benefit citizens across the State of Texas as well as our own community; NOW THEREFORE, BE IT RESOLVED, that the City of North Richland Hills Tax Department do hereby support Smithfield Masonic Lodge #455 in its application for exemption from Ad Valorem taxation, and recommend that Tarrant Appraisal District grant such exemption. We deeply appreciate your consideration in this matter and if you should have questions or comments, please feel free to contact us at P.O. Box 821413, Smithfield, Texas 76182 or call David Myers at 817-268-2211 during regular business hours. 5 Cc: Mayor Oscar Trevino City Manager Larry Cunningham INFORMAL REPORT TO MAYOR AND CITY COUNCIL NO.,IR 2003-043 ~ Date: ~ Subject: April 28, 2003 "2003 Games of Texas" Update The "2003 Games of Texas", sanctioned as the official state games of Texas by the United States Olympic Committee, are coming to Northeast Tarrant County in just slightly over 90 days. The "Games" will be held on July 24th - 2ih at over 20 of the finest amateur sporting venues in the country. The Cities of North Richland Hills, Grapevine, Colleyville, Hurst, Euless and Bedford have partnered to plan, promote and host the 20+ state championships that will comprise the "Games of Texas" this year. Patterned after the Olympic Games, this exciting event includes an Official Opening Ceremonies complete with a parade of athletes, musical entertainment, torch lighting and fireworks. An estimated 7 - 10,000 athletes are expected to participate and over 25,000 spectators will be filling hotel rooms, stores and restaurants throughout Northeast Tarrant County for this sports festival, the largest amateur sporting event in the state of Texas. The "2003 Games of Texas" Press Conference is scheduled for May 8th from 11 :30 - 1 :00 p.m. at the Holiday Inn D/FW Airport West with several special guest Olympians and Texas Amateur Athletic Federation Hall of Fame members to be present in support of the "Games". .taff will give a brief update on the event, planning, sponsorships and the role that North Richland Hills will be playing in the "2003 Games of Texas". Respectfully submitted, I~ ~~~¿~ Jim Browne Director of Parks & Recreation . ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS NRH C11\1 ofNort11 Ric111~",~ Hi11s l'RDClAMAT1DN WHEREAS. boss "'11b c",ts givc comp"'11io11S},ip "'11~ s},,,,rc t},c },omcs of over 5".""".""" i11bivib\.t",ls i11 thc V11itc~ St",tcs; "'11~ WHEREAS. two \.t11",lterc~ c",ts "'11~ their ldttrns c"'11pro~\.tcc 42".""" morc kittrns i11 scvrn '1c",rs "'11b two \.t11",ltercb ~ogs "'11b their P\.f1'1'1cS c"'11pro~\.tcc 67.""" morc bogs is six '1c",rs; "'11b WHEREAS. 'ð1e problem of pet ovcrpop\.tl",tio11 costs t},c t",xp"''1ers of North Ric}'l"'11b Hi11s 'ð1o\.ts"'11bs ofbo11",rs "'1111\.t",11'1 thro\.tg}, "'11im",l Scrv1CC progr"'ms tr\1i11g to copc wi'ð1 'ð1c tho\.ts"'11bs of 1.mW"'11tcb pets; "'11b WHEREAS. 'ð1e North Ric}'l"'11b Hi11s A11im",l A~Opti011 "'11b RcsC\.tc Crnter provibcs '" s",fc },,,,vrn for "'11W"'11tC~ "'11b ",b"'11bo11cb "'11im",ls "'11b thc H1.4m"'11c Divisio11 is bebic",tcb to fi11bi11g },omcs for ",11 "'bopt",blc boss "'11b c",ts i11 o\.tr c",rc; "'11b WHEREAS. vctcr111",ri"'11S. },\.tm"'11c societics "'11b 11",tiOf\",l "'11b 10c",1 "'11im",l protcctio11 orS"'11iz",tio11s ",rc world11g t05ctJ1er to rns\.trc thc "'bopti011 of 1.50" pets i11 'ð1c Mctroplcx b\.tri115 "p",ws 011 thc Bc",c}, 5"t" Birthb"''1 1''''11\1'' Abopt",'ð1ot\ "'11b Bc Ki11b to A11im",ls W cclt; "'11b WHEREAS. vctcr111",ri"'11S. },\.tm"'11c societics. 11",tiOf\",l "'11b 10c",1 "'11im",lprotcctiOf\ or5"'11iz",tio11s },,,,vc ioi11C~ together "'5",i11 to ",bvoc",tc pet ",boptiOf\s ",t 10c",1 "'11im",l s}'c1ters 011 Abopt",th011. M",'1 3. 2""3; "'11b WHEREAS. Thc Ci1\1 ofNord1 Richl"'11b Hi11s 011 M",'1 3 wi11 cc1cbr",tc "p",ws 011 thc Ue",ch 5"t" 13irthb"''1 P"'rt\t" Abopt"'tho11 with thc p",ws for 'ð1c CM~SC W",11u.tho11. NOW. THEREFORE. 1 Osc",r Trcv111o. M"''1or of thc Ci1\1 of North Ric}'l"'11b Hi11s. T ex",s bo },erctnj proc1",im M",'1 3 - ,,,. 2""2 "'5: I) "PAWS ON THE BEACH ADOPTATHON AND , î .I BE K1ND TO AN1MALS W£EK" 1N W1TNESS WHEREOf'. 1 h",vc hercm1to set m'1 },"'11b "'11b c"'\.tscb thc sc",l of thc Ci1\1 of North Ric}'l"'11b Hi11s to be ",ffixcb this the 2St" b"''1 of April 2""3. ~~~ MINUTES OF THE PRE-COUNCIL AND REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 - APRIL 14, 2003 e PRE-COUNCIL SESSION The City Council of the City of North Richland Hills, Texas met in Pre-Council session on the 14th day of April, 2003 at 6:15 p.m. in the Pre-Council Room prior to the 7:00 regular Council meeting. Present: Oscar Trevino Frank Metts, Jr. Lyle E. Welch Scott Turnage JoAnn Johnson David Whitson Joe D. Tolbert Timothy J. Welch Staff Members: Larry J. Cunningham Steve Norwood Greg Vick Karen Bostic Paulette Hartman Patricia Hutson Alicia Richardson George Staples John Pitstick Larry Koonce Mike Curtis Jenny Mabry Clay Caruthers Thomas Powell e Call to Order Mayor Mayor Pro T em Councilman Councilman Councilwoman Councilman Councilman Councilman City Manager Assistant City Manager Assistant City Manager Managing Director Administrative/Fiscal Services Assistant to City Manager City Secretary Assistant City Secretary City Attorney Director of Development Finance Director Public Works Director Communications Director Budget Manager Director of Building Services Mayor Trevino called the Pre-Council meeting to order at 6: 15 p.m. 1. Discuss items from ReQular April 14. 2003 City Council MeetinQ Agenda Item No. 10- PZ 2003-03 - Councilwoman Johnson recalled Council requesting from Mr. Huggins several years ago a Master Plan of his intended future development of the area surrounding the Huggins dealership and questioned if Mr. Huggins had provided the plan. Staff advised that the plan he provided is the plan he currently has on the ground. Councilwoman Johnson questioned if the request should be denied and a planned development requested. Councilwoman Johnson inquired as e e e e City Council Minutes April 14, 2003 Page 2 to what benefit it would be to the city and city staff to require a planned development and if such a requirement would cause a hardship on Mr. Huggins. The City Manager advised the hardship to Mr. Huggins would depend on his timeline for the construction of the facility and the delay in submitting it for a planned development. The advantage would be the ability to look at the project as a whole. Councilman Tolbert present at 6:20 p.m. Council discussed the advantages to a planned development and Staff answered Council questions concerning the number of requests presented to Council from Mr. Huggins over the past several years pertaining to his dealership and surrounding property. Council questioned if Mr. Huggins would reimburse the City for the cost of the cul-de-sac recently constructed on Susan Lee Lane. Staff advised that it had not been discussed but that it was anticipated it would be considered with either the plat or a planned development. 2. IR 2003-030 Update and Review of Plannina and Zonina Schedule In December 2002, Staff presented Council with a proposed 2003 Development Review Process Schedule. Council agreed to proceed with the new process on a trial basis and requested to review the schedule again in a few months. Mr. Pitstick reported to the Council on the progress of the Planning & Zoning schedule and the processing of the cases during the last five months. Mr. Pitstick advised that the Planning & Zoning Commission and Staff are pleased with the new schedule and will continue to move forward with the schedule. There were no questions or concerns expressed by the Council. 3. IR 2003-032 Discuss SettinQ of Date for Mav Council Meetina and Special BudQet Worksession Council discussed dates for the special budget work session. Council set the work session for Tuesday, May 20 at 5:30 p.m. Council also agreed to move the regular May 26 Council meeting to Tuesday, May 27, due to the Memorial Day Holiday. Adjournment Mayor Trevino adjourned the Pre-council meeting at 6:28 p.m. REGULAR COUNCIL MEETING 1. CALL TO ORDER e e e City Council Minutes April 14, 2003 Page 3 Mayor Trevino called the meeting to order April 14, 2003 at 7:00 p.m. ROLL CALL Present: Oscar Trevino Frank Metts, Jr. Lyle E. Welch Scott Turnage JoAnn Johnson David Whitson Joe D. Tolbert Timothy J. Welch Mayor Mayor Pro T em Councilman Councilman Councilwoman Councilman Councilman Councilman Staff: Larry J. Cunningham Steve Norwood Greg Vick Karen Bostic Patricia Hutson Alicia Richardson George Staples City Manager Assistant City Manager Assistant City Manager Managing Director Administrative/Fiscal Services City Secretary Assistant City Secretary Attorney 2. INVOCATION Assistant City Manager Greg Vick gave the invocation. 3. PLEDGE OF ALLEGIANCE Assistant City Manager Greg Vick led the pledge of allegiance. 4. SPECIAL PRESENTATIONS PROCLAMATIONS - City Council Minutes April 14, 2003 Page 4 e Councilman Turnage presented Dortha Tilley, representing Alliance for Children, and Mary Baudrau, representing S.A.V.E. Program, with proclamations proclaiming the month of April as Child Abuse Prevention Month. Councilman Whitson presented former mayor Tommy Brown and Dottie McCary with a proclamation proclaiming April 25, 2003 as 50th Celebration Day. CERTIFICATE OF RECOGNITION- Councilman Tolbert recognized and presented Police Officer Jeff Garner with a certificate of recognition. 5. REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. 6. APPROVAL OF CONSENT AGENDA ITEMS APPROVED e A. MINUTES OF THE COUNCIL MEETING MARCH 13, 2003 B. MINUTES OF THE COUNCIL MEETING MARCH 24, 2003 C. PS 2002-41 CONSIDERATION OF A REQUEST FROM NORTHEAST TARRANT BAPTIST CHURCH FOR THE APPROVAL OF THE FINAL PLAT OF NORTHEAST TARRANT BAPTIST CHURCH ADDITION (LOCATED IN THE 7000 BLOCK OF SMITHFIELD ROAD - 6.2454 ACRES) (CONTINUED FROM THE MARCH 13, 2003 CITY COUNCIL MEETING) D. PS 2003-02 CONSIDERATION OF A REQUEST FROM THE CITY OF NORTH RICHLAND HILLS PARKS DEPARTMENT FOR THE APPROVAL OF THE FINAL PLAT OF LOT 2-R, BLOCK 37 HOLIDAY NORTH ADDITION, SECTION 11 (LOCATED IN THE 5900 BLOCK OF HOLIDAY LANE - 2.41 ACRES) E. PS 2003-13 CONSIDERATION OF A REQUEST FROM WILLIAM CHRASTECKY FOR THE APPROVAL OF THE FINAL PLAT OF LOTS 1 & 2, BLOCK 1 RUMFIELD ADDITION (LOCATED IN THE 8900 BLOCK OF RUMFIELD ROAD- 2.53 ACRES) F. GN 2003-047 AUTHORIZATION TO PARTICIPATE IN THE TARRANT COUNTY CONTRACT FOR THE 2003 STREET WEDGE MILLING PROJECT e e e e City Council Minutes April 14, 2003 Page 5 G. GN 2003-048 SETTING COUNCIL MEETING DATE TO CANVASS MAY 3, 2003 ELECTION H. PU 2003-022 AUTHORIZATION TO PARTICIPATE IN THE CITY OF HURST CONTRACT FOR THE ANNUAL SLURRY SEAL APPLICATION PROGRAM I. PU 2003-023 AWARD BID FOR 2003-YEAR MODEL SELF-PROPELLED BROOM TO CONTINENTAL EQUIPMENT COMPANY IN THE AMOUNT OF $28,995 J. PW 2003-005 APPROVE AGREEMENT WITH TXDOT FOR UTILITY RELOCATIONS AT LOOP 820 AND RUFE SNOW DRIVE - RESOLUTION NO. 2003-040 K. PAY 2003-002 APPROVE FINAL PAY ESTIMATE #5 TO GREEN SCAPING IN THE AMOUNT OF $28,057.23 FOR RUMFIELD ROAD, PHASE 3 MISCELLANEOUS IMPROVEMENTS COUNCILMAN TURNAGE MOVED, SECONDED BY COUNCILMAN LYLE E. WELCH TO APPROVE THE CONSENT AGENDA. . Motion to approve carried 7-0. 7. PS 2003-07 PUBLIC HEARING TO CONSIDER A REQUEST FROM CAMBRIDGE HOMES INC. FOR THE APPROVAL OF THE FINAL PLAT OF LOTS 22-R, 23-R &24- R, BLOCK I, LOTS 24-R, 25-R, 26-R & 27R, BLOCK II, LOTS 27 -R, 28-R, 29-R & 30- R, BLOCK LL, LOTS 1-R, 2-R, 3-R, 4-R, 5-R, 6-R, 7 -R & 8-R, BLOCK NN OF THE TOWN CENTER ADDITION (LOCATED EAST OF DAVIS BOULEVARD AND SOUTH OF MID-CITIES BOULEVARD -1.969 ACRES) APPROVED Mr. Don Rakins, representing applicant, was available to answer council questions. Director of Development John Pitstick summarized item and Planning and Zoning's recommendation. Councilman Whitson asked staff what the square footage would be for the homes. Mr. Pitstick advised council the square footage would be 1350. Mayor Trevino opened the public hearing. Mayor Trevino asked if there was anyone present who wished to speak in favor of request to come forward. There being no one e e e City Council Minutes April 14, 2003 Page 6 wishing to speak Mayor Trevino asked for anyone wishing to speak in opposition. There being no one wishing to speak Mayor Trevino closed the public hearing. COUNCILMAN TURNAGE MOVED TO APPROVE PS 2003-07. COUNCILMAN LYLE E. WELCH SECONDED THE MOTION. Motion to approve carried 7-0. 8. PZ 2003-02 PUBLIC HEARING TO CONSIDER A REQUEST FROM THE STINSON DEVELOPMENT CORPORATION FOR THE APPROVAL OF A ZONING CHANGE FROM "AG" AGRICULTURAL TO "R-2" RESIDENTIAL AND "NS" NEIGHBORHOOD SERVICES IN THE 7600-7700 BLOCK OF PRECINCT LINE ROAD (10.56 AND 5.95 ACRES RESPECTIVELY) - ORDINANCE NO. 2698 APPROVED Mayor Trevino opened the public hearing. Mr. Joseph Fru, representing applicant, was available to answer council questions. Mr. Pitstick summarized item and Planning and Zoning's recommendation. Mayor Trevino asked if there was anyone present who wished to speak in favor of request to come forward. There being no one wishing to speak Mayor Trevino asked for anyone wishing to speak in opposition. There being no one wishing to speak Mayor Trevino closed the public hearing. COUNCILMAN WHITSON MOVED, SECONDED BY COUNCILMAN LYLE E. WELCH TO APPROVE PZ 2003-02, ORDINANCE No. 2698. Motion to approve carried 7-0. 9. PZ 2003-07 PUBLIC HEARING TO CONSIDER A REQUEST FROM H&H CAPITAL, LIMITED FOR THE APPROVAL OF A ZONING CHANGE FROM "C-2" COMMERCIAL TO "1-1" LIGHT INDUSTRIAL AT 5104 & 5112 COMMERCIAL DRIVE, 7723 & 7729 MAPLEWOOD AVENUE (APPROXIMATELY 1.94 ACRES) - ORDINANCE NO. 2701 APPROVED Mayor Trevino opened the public hearing. e e e City Council Minutes April 14, 2003 Page 7 Mr. Alan Hamm, applicant, summarized item stating that he would like the ability to use the property for its original intended use. When the building was constructed the C-2 district allowed industrial/warehouse-type users. The current C-2 district does not allow the same uses. Mr. Pitstick summarized item and Planning and Zoning's recommendation. Mr. Pitstick informed council that staff had concerns with some uses allowed in light industrial, but they would be handled at the staff level. Councilman Lyle E. Welch asked that consideration be given to the complaint that was lodged previously before council pertaining to trucks driving in abutting residential yards. The developer has since built a masonry wall buffering the warehouses from the residential homes. Councilman Lyle E. Welch asked that this be taken under consideration. Councilman Whitson was contacted by residents concerning Trinity Waste's schedule. There was some concern that their schedule would operate 24 hours a day. Ms. Karen Bostic, Mänaging Director, advised council that Trinity Waste is not allowed to pick up before 7:00 a.m. when business is located next to residential areas. Mayor Trevino asked if there was anyone present who wished to speak in favor of request to come forward. There being no one wishing to speak Mayor Trevino asked for anyone wishing to speak in opposition. There being no one wishing to speak Mayor Trevino closed the public hearing. MAYOR PRO TEM METTS MOVED TO APPROVE PZ 2003-07. COUNCILMAN TURNAGE SECONDED THE MOTION. Motion to approve carried 7-0. 10. PZ 2003-03 PUBLIC HEARING TO CONSIDER A REQUEST FROM RIVERCROWN INVESTMENTS ON BEHALF OF THE PROPERTY OWNERS FOR THE APPROVAL OF A ZONING CHANGE FROM "R-2" RESIDENTIAL TO "HC" HEAVY COMMERCIAL AT 4800, 4801, 4804, 4805, 4808, 4809 & 4813 SUSAN LEE DRIVE (1.35 ACRES APPROX.) - ORDINANCE NO. 2699 DENIED Mayor Trevino opened the public hearing. Mr. Ron Huggins, applicant, was available to answer council questions. e e City Council Minutes April 14, 2003 Page 8 Mr. Pitstick summarized item and Planning and Zoning's recommendation. Mr. Pitstick stated that staff has concerns with Mr. Huggins request for HC (Heavy Commercial) and that staff would support a PD (Planned Development). A PD would allow better control of the area, which staff views as a win/win situation for both Mr. Huggins and the residential property owners. There were questions and discussion by council on the desire for a master plan of the development and the benefits of the project being a planned development rather than straight zoning. Councilwoman Johnson commented that a plan was never brought before council by Mr. Huggins to show his intention for expansion. Mr. Pitstick advised that the Planning and Zoning Commission recommended approval of the request and staff recommendation is to deny or postpone the request and come back with a planned development. Mayor Trevino asked for anyone wishing to speak in favor of the request to come forward. Mayor Trevino noted for the record that Ron Huggins is in support of the request. There being no one else wishing to speak in favor Mayor Trevino asked for anyone wishing to speak in opposition to come forward. The following spoke in opposition of request. Mr. Johnnie Latham, 4825 Susan Lee Lane and Mr. Marlin Miller, 5109 Susan Lee Lane. There being no one else wishing to speak Mayor Trevino closed the public hearing. Councilman Lyle E. Welch asked if Mr. Huggins would be allowed to respond to comments. Mayor Trevino asked council to consider allowing Mr. Huggins to speak. Councilman Tim Welch said that he would like to hear Mr. Huggins comments regarding staff's recommendation of PD. Mr. Huggins said that he is requesting HC and not PD. The remainder of his property is zoned Heavy Commercial. Mr. Huggins addressed Council's comments regarding the overall plan. Mr. Huggins commented that he presented a plan at the time of his last request, but could only bring forth an overall plan as he knew it at that point in time. Since that time he has been able to acquire additional property. Mayor Trevino informed council that Councilman Tolbert asked for a PD last year when Mr. Huggins requested rezoning for acquired residential property. Councilman Tolbert's reasoning for requesting PD was to allow staff more control of what futures uses would e be allowed at this property should the property be sold. e e e City Council Minutes April 14. 2003 Page 9 COUNCILMAN LYLE E. WELCH MOVED TO APPROVE PZ 2003-03. COUNCILMAN WHITSON SECONDED THE MOTION. Councilman Tolbert mentioned that he would like to see the fees waived for the PD should Mr. Huggins submit request for a Planned Development. Councilwoman Johnson commented that the council has yet to see a plan for the development by Mr. Huggins. Councilwoman Johnson feels that this development is being piece milled and council deserves to know what is going on with property. Councilman Turnage voiced his agreement with Councilman Tolbert and Mayor Trevino. Councilman Turnage said that he would be in favor of a PD. Councilman Tim Welch said that he too believed that this property should be a PD. COUNCILMAN LYLE E. WELCH WITHDREW HIS MOTION. MAYOR PRO TEM METTS MOVED TO DENY PZ 2003-03. COUNCILMAN TOLBERT SECONDED THE MOTION. Councilman Metts mentioned that he would like the PD option. Councilman Whitson asked that Mr. Huggins address the noise pollution. Councilman Lyle E. Welch questioned if Mr. Huggins property that is currently zoned HC would be affected by a Planned Development. Mayor Trevino asked council to revisit Councilman Tolbert's request to waive the PD fee. Council concurred that the PD fee be waived. Motion to deny carried 6-1; with Councilmen Turnage, Whitson, Tolbert, Tim Welch, Mayor Pro Tem Metts and Councilwoman Johnson voting for denial and Councilman Lyle E. Welch voting against. Mayor Trevino recessed the meeting at 8:26 p.m. Mayor Trevino reconvened the meeting at 8:37 p.m. with same members present. City Council Minutes April 14, 2003 Page 10 e 11. PZ 2003-06 PUBLIC HEARING TO CONSIDER A REQUEST FROM WWCP PROPERTIES LTD. FOR THE APPROVAL OF A ZONING CHANGE FROM "AG" AGRICULTURAL TO "R-2" RESIDENTIAL IN THE 7000 BLOCK O.F EDEN ROAD (5.48 ACRES) - ORDINANCE NO. 2700 APPROVED e Mayor Trevino opened the public hearing. Mr. David Washington, applicant, was available to answer council questions. Councilman Whitson asked Mr. Washington to address his plans for tree preservation. Mr. Washington advised council that he would comply with city ordinance and that the only trees removed would be those needed for utilities. Mr. Pitstick summarized item and Planning and Zoning's recommendation. Mr. Pitstick advised council that staff received a petition from 22.7% of landowners within 200 feet of request and given that a petition was received a three-fourths vote from council is required to enact ordinance. Councilman Whitson requested Staff to comment on the tree preservation ordinance as it relates to this request. Mr. Pitstick advised that the streets and pad sites will have to be cleared and trees cleared for grading will have to be replaced either on site or through a contribution to the restoration fund. Mayor Trevino asked for comments from those in favor of request. Ms. Barbara Eckman, 7500 Eden Road and owner of the property under consideration, spoke in favor of request. There being no one else wishing to speak in favor Mayor Trevino asked for anyone wishing to speak in opposition to come forward. The following spoke in opposition of request. Mr. John Durant, 7101 Eden Road and Billy Wade Moore, 7109 Eden Road citing drainage issues, increased traffic and lowering of property values. There being no else wishing to speak Mayor Trevino closed the public hearing. Mayor Trevino asked council if they would be opposed to receiving comments from Mr. Washington regarding the drainage. Mr. Washington addressed citizens concerns regarding drainage. e e e e City Council Minutes April 14, 2003 Page 11 COUNCILMAN TIM WELCH MOVED TO APPROVE PZ 2003-06, ORDINANCE No. 2700. COUNCILMAN TURNAGE SECONDED THE MOTION. Motion to approve carried 7-0. 12. PZ 2002-23 PUBLIC HEARING TO CONSIDER AN APPEAL FROM JEFF MCKINNEY FOR THE APPROVAL OF A ZONING CHANGE FROM "C-1" COMMERCIAL TO "R- 4-D" DUPLEX AT 8023 STARNES ROAD (3.92 ACRES) - ORDINANCE NO. 2697 (DENIED BY THE PLANNING AND ZONING COMMISSION AT THEIR FEBRUARY 20, 2003 MEETING) DENIED Mayor Trevino opened the public hearing and commented that no personal attacks would be accepted. Mr. Jeff McKinney, applicant, summarized item and was available for council questions. Ms. Julia Andrew, representing applicant, was available to answer council questions. Ms. Andrew responded to comments made at the Planning and Zoning meeting regarding property values decreasing. Mr. Pitstick summarized item and Planning and Zoning's recommendation. Councilman Tolbert asked Mr. Pitstick if the rear-car entry garage would apply to this request. Mr. Pitstick advised that the rear-car entry garage applied to R-1, R-2 and R-3. Mayor Trevino reiterated statement that no negative attacks would be permitted. Mayor Trevino called for anyone wishing to speak in favor of request to come forward. There being no one wishing to speak Mayor Trevino called for anyone wishing to oppose request. Mayor Pro Tem announced that the following did not wish to speak but wanted to go on record as being opposed: Allan Fitzwater, 7409 Forrest Lane; Susan Fitzwater, 7409 Forrest Lane; Alanson Hays, 7313 Cross Keys Drive; Maria Hays, 7313 Cross Keys Drive; Michael Gonzales, 7325 Timberidge Drive; Clayton Sherley, 7404 Forrest Lane; Larry Stewart, 7804 Forrest Lane; Deborah Tamburrano, 7317 Cross Keys Drive; Myrna Moffett, 8308 Woods Lane The following citizens spoke in opposition to the request. e e e City Council Minutes April 14, 2003 Page 12 Penny Sherley, 7404 Forrest Lane; Jeff Holden, 8312 Juniper Drive; Tammy Gieder, 7428 Forest Lane; Daniel Hussey, 7328 Timberidge; Cheryln Porter (representing her father), 7337 Timberidge; Antonia Garcia, 7336 Timberidge Drive; Nancy Duncan, 7324 Forest Court; . Martha Bartram, 7400 Forrest Lane and Sue Fitzwater, 7409 Forrest Lane. There being no one else wishing to speak Mayor Trevino closed the public hearing. COUNCILMAN TOLBERT MOVED TO DENY PZ 2002-23, ORDINANCE No. 2697. COUNCILMAN TURNAGE SECONDED THE MOTION. Motion to deny carried 7-0. 13. GN 2003-049 PUBLIC HEARING FOR 29TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT Assistant to the City Manager Paulette Hartman advised council that each year the city must prepare and submit a CDBG program outlining the use of funds that were allocated to the city. This year staff is proposing that the CDBG funds be used for the reconstruction of Roberta Drive and to provide operating assistance to the Northeast Transportation Services (NETS). The United States Department of Housing and Urban Development requires a public hearing so the city can receive comments and input from citizens. Mayor Trevino opened the public hearing. Mayor Trevino asked if there was anyone present who wished to speak in favor of request to come forward. There being no one wishing to speak Mayor Trevino asked for anyone wishing to speak in opposition. There being no one wishing to speak Mayor Trevino closed the public hearing. 14. GN 2003-050 APPROVE 29TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM - RESOLUTION NO. 2003-037 APPROVED Ms. Hartman advised council that the public hearing requirement has been satisfied and now council needs to take action on Resolution No. 2003-037, which outlines the 29th year (2003/2004) CDBG program. e e City Council Minutes April 14, 2003 Page 13 e COUNCILMAN TURNAGE MOVED, SECONDED BY COUNCILMAN TIM WELCH TO APPROVE GN 2003-050. Motion to approve carried 7-0. 15. GN 2003-051 AMENDING REGISTRATION REQUIREMENTS OF RETAIL ELECTRIC PROVIDERS - ORDINANCE NO. 2695 APPROVED Assistant City Manager Greg Vick summarized item for council. COUNCILMAN WHITSON MOVED, SECONDED BY COUNCILMAN TOLBERT TO APPROVE GN 2003- 051. Motion to approve carried 7-0. 16. GN 2003-052 APPROVE RECOMMENDATION FOR NAMING OF NEIGHBORHOOD PARK LOCATED IN THE BRANDONWOOD SUBDIVISION - RESOLUTION NO. 2003-039 APPROVED Councilman Tolbert advised council that the Public Naming Facility Board met to consider names for neighborhood parks on March 24, 2003. It was the Naming Board's recommendation to name the park that is being constructed in the Brandonwood subdivision Founders Park. The Naming Board has also asked staff to prepare guidelines that could be used to allow City founders to be honored in the park. Councilman Tolbert advised council that the Naming Board also recommended names for two other elementary school park sites, which will be reviewed by the Birdville Independent School District, before being presented to the City Council. MAYOR PRO TEM METTS MOVED TO APPROVE GN 2003-052. COUNCILWOMAN JOHNSON SECONDED THE MOTION. Motion to approve carried 7-0. e e e City Council Minutes April 14, 2003 Page 14 17. PW 2003-006 APPROVE ENGINEERING AGREEMENT WITH KIM LEY-HORN ASSOCIATES IN THE AMOUNT OF $87,500 FOR THE TRAFFIC SIGNAL LIGHT COMMUNICATION 2003 PROJECT - RESOLUTION NO. 2003-041 APPROVED Public Works Director Mike Curtis summarized item for council. Mr. Curtis advised council the scope of the services include: - Design of the Spread Spectrum Radio Communication System (for 39 traffic signal lights) - Prepare the timing plans for 22 traffic signal lights by creating three "Closed Loop Systems", which will include a closed loop system for 3 major arterials COUNCILMAN TIM WELCH MOVED TO APPROVE PW 2003-006. COUNCILMAN WHITSON SECONDED THE MOTION. Motion to approve carried 7-0. 18. ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON PRE- COUNCIL AGENDA NO ACTION TAKEN None. 19. A. CITIZEN PRESENTATION None. B.INFORMATION REPORTS Councilman Tim Welch made the following announcements. The City is asking for suggestions for items to be placed in a time capsule commemorating the City's 50th Anniversary. If you have a suggestion for an item to be included, please contact Jenny Mabry by April 1 st at 817-427-6125. e e . City Council Minutes April 14, 2003 Page 15 Join us for our annual A Lotta Niqht Music concerts at Green Valley Park on Friday, April 25. The Glenn Dorsey Orchestra will be performing from 7:00-9:00 p.m. The concert is free so bring your lawn chairs and blankets for a great evening in the park. Don't forget to vote on Saturday, May 3 for Council Place 1. Polling locations will be open from 7:00 a.m. -7:00 p.m. For further information, call 817-427-6060. The annual Pet Walk-a-Thon will be held on Saturday, May 3rd. Residents can bring their animals to the Animal Adoption and Rescue Center at 9am. Animals that are seven years of age will be placed in a special drawing since they will be 50 years in dog/cat years, which is the same age as North Richland Hills! Register at the Animal Adoption and Rescue Center. April 26 Critter Connection North Hills Mall 10:00 a.m. - 6:00 p.m. 20. ADJOURMENT Mayor Trevino adjourned the meeting at 10:00 p.m. Oscar Trevino - Mayor ATTEST: Patricia Hutson - City Secretary ... .. CITY OF NORTH RICHLAND HILLS . Department: Planning & Inspections Department Council Meeting Date: 4/28/03 Subject: Consideration of a Request from Sam's Real Estate Trust Agenda Number: PS 2003-09 for the Approval of the Final Plat of Lot 3R, Block 6, Tapp Addition (Located in the 6200 block of Northeast Loop 820 - (15.597 acres). Case Summary: Sam's Club recently built a gasoline fueling station in front of their building on Loop 820. In order to regain necessary parking they have purchased the property adjacent to Staples and built additional parking. This replat will combine the Sam's lot with a new parking area adjacent to Staples into a single lot. Current Zoning: C-2 Comprehensive Plan: The Comprehensive Plan indicates retail uses for this site. The proposed use is consistent with the plan. Staff Review: The Development Review Committee has reviewed the plat and has determined that it complies with both the Zoning and Subdivision Ordinances. Attached is a memo from the Public Works Department stating that all staff concerns have been addressed. Planning and Zoning Commission Recommendation: The Planning and Zoning Commission at their meeting on, April 17, 2003, recommended approval of PS 2003-09 by a vote of 6-0. RECOMMENDATION: To Approve PS 2003-09 the Final Plat of Lot 3R, Block 6, Tapp Addition. Review Schedule: Application: 1/31/03 Final Hearing: 4/28/03 Total Review Time: 12 weeks Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other - 1 -1ca ~~ Account Number Sufficient Funds AvaIlable ....... Finance Director Department Head Signature PS 2003-09 Tapp Addition CC N A NRH PS 2003-09 TAPP ADDITION LOT 3-R, BLOCK 6 . . . .. 7. PS 2003-09 CONSIDERA TION OF A REQUEST FROM SAM'S REAL ESTATE BUSINESS TRUST FOR APPROVAL OF THE FINAL PLAT OF LOT 3-R, BLOCK 6, T APP ADDITION, LOCATED IN THE 6200 BLOCK OF NORTHEAST LOOP 820 (15.597 ACRES). APPROVED Zoning Administrator, Dave Green, summarized the case. This is an existing Sam's site on the 820 frontage road on the north side of 820. This was an out-parcel lot next door to a fueling station erected by Sam's Corporation. Up until now, this portion was not being used. When Sam's put the fueling station in, Sam's lost some parking. Sam's Corporation would like to combine lots and create one large lot to allow some additional parking. A memo from Public Works states that all issues have been addressed and staff recommends approval. Chairman Bowen asked if there were any questions or discussion. There were none and Chairman Bowen called for a motion. John Lewis, seconded by Brenda Cole, motioned to approve PS 2003-09. The motion carried unanimously (6-0). Page 4 4/17/03 P & Z Minutes NRH CITY OF NORTH RICHLAND HILLS . Public Works / Administration April 3, 2003 MEMO TO: Donna Jackson, Planner FROM: Jon Lovell, EI.T., Engineer Associate SUBJECT: TAPP ADDITION, BLK 6, LOT 3R Final Plat, PS2003-09 Public Works has reviewed the final plat submitted to this office on April 1, 2003. All previously noted issues have been addressed and the plat meets the requirements of . the Public Works Department. Sincerely, J RUgs/pwm2003-081 cc: Mike Curtis, P. E, Public Works Director Lance Barton, P.E., Assistant Public Works Director . P.O. Box 820609 " North Richland r-@s Texas 75 '82-06C9 7301 Northeast Loop 820 ... (817) 427 -640C . >= 3X. (3 ~ _. 427 -64C4 ~,.., .~,,",~';f,-"~~_ìi!.,~' _" ;;_~",.~ ' ,,;1-,', '¡-¡¡'t,,", CITY OF NORTH RICHLAND HILLS . Department: Planning & Inspections Department Council Meeting Date: 4/28/03 Subject: Consideration of a Request from Chris Benoy for the Agenda Number: PS 2003-14 Approval of the Final Plat of Lot 1, Block 1, Milton Price Addition (Located at 8109 Newman Road) - (.58 acres). Case Summary: This site is a vacant piece of property at 8109 Newman Road. The applicant is proposing to build a single family residence on the site. The site is zoned R3 and a preliminary plat was approved in March, 2003. The Comprehensive Plan indicates low density residential for this area. The proposed use is consistent with the Plan. Staff Review: The Development Review Committee has reviewed the plat and has determined that it complies with both the Zoning and Subdivision Ordinances. Attached is a memo from the Public Works Department stating that all staff concerns have been addressed. Planning and Zoning Commission Recommendation: The Planning and Zoning Commission at their meeting on, April 17, 2003, recommended approval of PS 2003-14 by a vote of 6-0. RECOMMENDATION: To Approve PS 2003-14 the Final Plat of Lot 1, Block 1, Milton Price Addition. Review Schedule: Application: 2/03/03 Final Hearing: 4/28/03 Total Review Time: 12 weeks Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget - d. 1 Other rlV ~cQ'l);ß ~ Account Number Sufficient Funds A vadaõle Department Head Signature Finance Director '" PS 2003-14- Milton Price CC ,---. -.---..--..-.- -.- -~_. "-_'_'~_"_"".....'....." N A NRH PS 2003-14 MILTON PRICE ADDITION . . . 12. PS-2003-14 CONSIDERATION OF A REQUEST FROM CHRIS BENOY FOR THE APPROVAL OF THE FINAL PLAT OF LOT 1, BLOCK 1 MILTON PRICE ADDITION LOCATED AT 8109 NEWMAN ROAD (.58 ACRES). APPROVED Zoning Administrator, Dave Green, summarized the case. This is a request for single lot subdivision and a final plat. The purpose of this plat is to build a single-family residence. The property is located on Newman Road just east of Davis Boulevard. Public Works comments state that all issues have been addressed and staff recommends approval of this final plat. Chairman Bowen asked if this property had been zoned R-3 for a long time. Mr. Green stated yes. Mr. Nehring asked if the property would still fall under the new guidelines. Mr. Green stated yes. James Laubacher, seconded by Ted Nehring, motioned to approve PS 2003-14. The motion carried unanimously (6-0). Page 9 4/17/03 P & Z Minutes NRH OTY OF NORTH RICHLAND HILLS . Public Works 1 Administration April3,2003 MEMO TO: Donna Jackson, Planner FROM: Andrea Jobe, EIT, Engineer Associate RE: MILTON PRICE ADDTION; LOT 1, BLOCK 1 Final Plat, PS 2003-001 Public Works has reviewed the Final Plat submitted to this office on February 20,2003. All of Public Works' requirements have been met. We recommend the placement on the next Planning and Zoning meeting agenda. . ~y~,~ Andrea R. Jobe, EI.T., Engi~r Associate ARJ/pwm2003-080 Cc: Lance Barton, PE, Assistant Public Works Director Dave Green, Zoning Coordinator Mark Long, PE, Owen D. Long and Associates . P.O. Box 820609 * North Richland Hills, Texas 76182-0609 7301 Northeast Loop 820 * (817) 427-6400 * Fax (817) 427-6404 CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 4/28/03 Subject: ReschedulinQ May 26 Council MeetinQ to May 27 Agenda Number: GN2003-053 The second council meeting in May falls on Memorial Day and City offices will be closed for the holiday. At the Pre-Council meeting on April 14 City Council chose to move the regularly scheduled meeting to Tuesday, May 27. RECOMMENDATION: To reschedule the City Council meeting to Tuesday, May 27. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number Sufficient Funds Ävallable ~..~ 'MIL, Department Head Signature Finance Director Page 1 of 1 CITY OF NORTH RICHLAND HILLS apartment: Public Works Council Meeting Date: 4/28/2003 Subject: Award of Bid to Sharrock Electric. Inc. in the amount of Agenda Number: PU 2003-024 $45,333.50 for the Loop 820 @ Industrial Park Boulevard Traffic Signalization This project consists of the construction of a traffic signal at the intersection of Industrial Park Boulevard and the westbound Loop 820 service road. The traffic impact analysis for the Sam'slWal-Mart development indicated that a traffic signal was warranted at the intersection. The analysis was reviewed by our traffic engineering consultant (Kimley-Horn and Associates, Inc.) and they concur with the recommendation to construct a signal. The original analysis did not, however, address the stop signs at the south side of Loop 820 bridge. Kimley-Horn analyzed the situation and recommended the stop signs for north and south bound traffic at the south side of the bridge be removed permanently. In their opinion this would improve traffic flow at all times, but especially at peak traffic times such as when church traffic is heaviest. They also recommended that a "Cross Traffic Does Not Stop" sign be added for the east bound traffic west of the bridge and a "Do Not Block Intersection" sign be added for north bound traffic on the south side of the bridge. The Texas Department of Transportation (TxDOT) supports the removal of the stop signs and the addition of the "informational" signs. . Typically, the developer will install all infrastructure improvements that relate to the proposed development. However, in this situation the traffic light is located in TxDOT right-of-way. TxDOT now requires the City to let all developer projects located in their right-of-way. This is a change in their policy from when the traffic signal at Davis Boulevard and Bridge Street (Home Town) was allowed to be installed by the developer. Wal-Mart has paid for the design of the project and has escrowed $61,420.10 with the City to cover the construction cost. The escrow amount was determined by the engineer's estimated cost of the project. A single bid was received from Sharrock Electric, Inc. in the amount of $45,333.50 for 30 calendar days construction time. Wal-mart has confirmed that a single bid is acceptable to them. Sufficient funds have been escrowed for this project and will be available after the appropriate 2002/03 Capital Improvement Project Budget revision. Recommendation: To award the bid to Sharrock Electric, Inc. in the amount of $45,333.50 for 30 calendar days for the Loop 820 @ Industrial Park Boulevard Traffic Signalization and approve revision of the 2002/03 Capital Improvement Project Budget. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number Sufficient Funds ÄvallalJle J1A =4 (~"1:" fI¡ Department Head Signature Finance Director Utility Capital Projects . Industrial Park Boulevard/Loop 820 Traffic Signal Project Number Assigned Upon Approval PROJECT DESCRIPTION & JUSTIFICATION This project will consist of a traffic signal being installed at Industrial Park Boulevard and the west bound Loop 820 Frontage Road. The project will also consist of some sign modifications on the east bound frontage road at Meadow Lakes Boulevard. The traffic signal was shown to be warranted with the completion of the Sam's store. The developer was originally going to install the traffic signal, but was informed by the Texas Department ofTransportation that the City would need to let the project since it is located in TxDOT right-of-way. PROJECT STATUS Original 2002/2003 Original 200212003 Start Date Revision End Date Revision Engineering/Design N/A N/A N/A N/A Construction N/A 5/2003 N/A 9/2003 REVISION EX PLANA TION This project was not originally placed in the budget because it is a "developer" project. The Texas Department ot Transportation has had a change in policy since the approval of the 2002/03 CIP Budget, and now require "developer" rojects constructed in the TxDOT right-of-way to be let by the City. This is a change from the policy that was in effect when developer ot Home Town was allowed to install the traffic signal at Davis Boulevard and Bridge Street. FINANCIAL DATA 2002/2003 Total Funding Source Amount to 2002/2003 Revised Remaining Project Date Adopted Budget Budget Cost Prior Funding Allocations: N/A $0 $0 $0 $0 $0 Proposed Funding Allocations: Developer Escrow 0 0 61,420 0 61,420 Total $0 $0 $61,420 $0 $61,420 Project Expenditures Engineering $0 $0 $0 $0 $0 Land/Right-of-Way 0 0 0 0 0 Construction 0 0 61,420 0 61,420 Total $0 $0 $61,420 $0 $61,420 IMPACT ON OPERATING BUDGET Nominal impact is expected. " .~ CITY OF NORTH R/CHLAND HILLS Department: Finance / Parks & Recreation Council Meeting Date: 4/28/03 Subject: Award Annual Food Supply Contract for NRH20 to Ben E. Keith Foods - Resolution No. 2003-043 Agenda Number: PU 2003-025 Request for Proposals were solicited for an annual contract to supply food items for NRH20 Water Park. Bidders were requested to submit prices on a list of specific food items as well as specific brands that were high volume sellers in the 2002 season. Attached is a breakdown of the prices submitted. Evaluation factors include brand of food item offered, price, quality, and customer service response. Staff also tested various items offered by vendors. Proposal requests were sent to the following companies: Ben E. Keith, Bassham Foods, CD Hartnett Co. and US Food Service. Three companies submitted bids and all bids were evaluated. Staff recommends the contract be awarded to Ben E. Keith Foods based on the evaluation factors listed above. Ben E. Keith Foods has an excellent reputation and provided very reliable service to NRH20 during the 1996 through 1998 and 2000 through 2002 seasons. All the brands offered by Ben E. Keith Foods meet the specifications for high quality and availability. We plan to continue to use the on-line ordering system that allows the park to take advantage of the distributor's full inventory. Recommendation: To award the annual food supply contract for NRH20 to Ben E. Keith Foods and approve Resolution No. 2003-043 authorizing the City Manager to execute the contract. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other AccountNumber 415-7519-722.63-05 SuffiC;¡t~ Ava~ ~ Budget Director ~~ÌLa.-......r-- npn::lrtmpnt .. P<=lrl ~inn<=lÌllrp (jJ Page 1 of 1 .,1 · · · RESOLUTION No. 2003-043 BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF NORTH RICH lAND HillS, TEXAS, that: Section 1 : THAT the City Manager is hereby authorized to execute the annual food supply contract with Ben E. Keith Foods for NRH20 Famiy Water Park, as the act and deed of the City. PASSED AND APPROVED this 28th day of April 2003. APPROVED: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George Staples, City Attorney APPROVED AS TO CONTENT: ~,,~ .~ ~ - Jim Browne, Director, Parks & Recreation . . . NRH20 Family Water Park 2003 Food Bid PRODUCT Ben E. Keith Total CD Hartnett Total US Food Service Total Flame Broiled Beef Steak Buraer 3 oz. 180030ACN\ $ 1,028.94 $ 769.75 $ 1,014.75 Flame Broiled Beef Steak Buraer 2 oz. 180120ACN\ $ 989.06 $ 1,077.65 $ 1,173.90 Beef Patties, 80120, 411 Ifrozen) $ 5,660.00 $ 5,960.00 $ 5,848.00 Beef Patties, 75/25, 4/1 (frozen) $ 5,668.00 $ 5,668.00 $ 5,576.00 Hotdoas all meat 6/1 $ 4,872.00 $ 5,070.00 $ 6,396.00 Bacon - Drecooked /laved out) (140811 $ 1,221.00 $ 1,579.20 $ 1,666.20 Pizza 6.4oz - (4) cheese $ 3,384.75 $ 3,519.75 $ 3,416.25 Pizza 6.4oz - DeDaeroni $ 3,413.25 $ 3,519.75 $ 3,455.25 Invisicoat 318" Reaular Skin-off French Fries $ 8,840.00 $ 10,250.00 $ 10,410.00 Soft Pretzel- SUDer 13014\ $ 581.35 $ 563.85 $ 627.20 Mesauite Skinless Chicken Breast Fillets IPTM840\ $ 446.60 $ 446.60 $ 381.90 Hot Top' Jalapeno Cheese Sauce (#05100\ - BIB $ 5,893.90 $ 5,620.20 $ 5,674.60 Sliced American Cheese $ 1,055.25 $ 1,071.00 $ 1,100.05 Old Fashioned Variety Cookies (46103) $ 360.80 $ 360.00 $ 389.00 Potato ChiD Reaular $ 534.50 $ 510.25 $ 543.00 Potato ChiD Cheetos $ 534.50 $ 510.25 $ 543.00 Potato Chin Doritos $ 534.50 $ 510.25 $ 543.00 Potato Chin Ruffles $ 534.50 $ 510.25 $ 543.00 Potato Chin Baked Lavs $ 205.15 $ 190.30 $ 208.89 Potato ChiD Ruffles - Bulk $ 396.16 $ 367.36 $ 406.72 Tortilla ChiDs - Trianale White $ 1,542.00 $ 1,785.00 $ 1,968.00 Hamburaer Buns - 4 inch $ 2,297.68 $ 2,423.52 $ 2,756.38 Hot Doc Buns - Reoular Coneys $ 2,095.00 $ 2,284.20 $ 2,784.28 PODcom - Bulk $ 25.68 $ 25.92 $ 29.26 Baked Beans $ 218.40 $ 202.30 $ 213.20 JalaDenos $ 398.80 $ 373.60 $ 319.40 Hamburoer Pickles $ 141.00 $ 131.52 $ 138.24 Potato Salad wi mustard $ 844.20 $ 787.80 $ 790.78 Ketchun lcan $ 1,077.00 $ 1,103.25 $ 1,104.00 Ketchun nackets IPPI\ $ 1,429.45 $ 1 ,482.35 $ 2,135.55 BBQ Sauce - Smokev $ 131.44 $ 144.84 $ 158.48 BBQ Sauce - Oriainal $ 120.20 $ 144.84 $ 144.68 Beef Broth $ 313.05 $ 1,174.05 $ 1,091.25 Mustard $ 240.30 $ 260.46 $ 265.68 Mustard Packets $ 1,299.00 $ 732.00 $ 585.00 Mavonnaise PC Packets $ 600.30 $ 964.80 $ 827.10 Relish Packets $ 206.40 $ 218.16 $ 207.12 Salt PC Packets $ 65.76 $ 81.96 $ 71.04 Pepper PC Packets $ 116.40 $ 108.60 $ 127.44 . . . e r PRODUCT Total Total Total Liould Veaelable Frver Oil $ 763.20 $ 551.70 $ 598.05 Cardboard Pizza Bax - 8' $ 130.20 $ 255.90 $ 297.00 12 oz Foam CUD $ 162.40 $ 148.80 $ 172.70 Tali Folded DisDenser NaDklns $ 710.80 $ 794.60 $ 788.00 Hamburner sandwich wrar>s - cushion tDil- 10.5x13 $ 588.36 $ 588.72 $ 441.30 'must sav 'Hamburaer" on baa $ - $ - $ - Cheeseburaer sandwich wraDS - cushion toil - 10.5x13 $ 1.044.10 $ 981.20 $ 441.30 'must say 'Cheeseburaer" on baa $ - $ - $ - Food TraY!!, ouarter Dound #25 $ 131.30 $ 156.80 $ 103.20 Food TraY!!, three oound #300 $ 1,127.76 $ 1,454.84 $ 957.56 Meal Kits - ForklKnlfelSaltlPeDDer/NaDkin $ 670.80 $ 1,198.40 $ 1,312.00 Straw - Jumbo WraDDed $ 601.30 $ 583.52 $ 656.60 Plastic forks IwraDDed\ - md weioht $ 205.80 $ 204.84 $ 110.52 Plastic SDDOns IwraDDed\ - md weight $ 751.50 $ 699.75 $ 414.45 1 DZ. PaDer Souffle Cun $ 286.90 $ 300.20 $ 285.80 2 oz. Translucent Plastic PDrtion CUDS (PC200) $ 141.55 $ 131.05 $ 140.00 3 1/4 DZ. Translucent Plastic Souffles CUD (P325) $ 363.60 $ 406.30 $ 357.90 4 oz Translucent Plastic Souffles CUD IP400\ $ 394.20 $ 369.00 $ 425.70 5 1/2 DZ Translucent Plastic Souffles CUD IP550\ $ 242.10 $ 478.80 $ 449.30 Embossed Gloves - Laroe $ 304.80 $ 500.40 $ 416.60 Embossed Gloves - Medium $ 228.60 $ 375.30 $ 309.00 Scourino Pads $ 61.40 $ 62.50 $ 46.95 Pink Dish SoaD $ 198.48 $ 203.64 $ 210.60 Bleach $ 101.40 $ 75.00 $ 79.90 Deareaser Cleaner $ 293.40 $ 305.70 $ 366.75 $ Please fill out completely, including vendors and units. Only submit prices for listed vendors. Contract and contract prices will be effective for one year. The following is also considered: An on-line ordering system End of the season buy backs Rebate and P.O.S. programs with vendors Samples for training and staff events 68,820.22 $ 73,330.54 $ 75,014.77 ,~" CITY OF NORTH RICHLAND HILLS Department: Parks and Recreation Council Meeting Date: 4/28/03 Subject: Execution of Supplemental Aqreement to the Professional Agenda Number: PU 2003-026 Services Contract with Newman Jackson Bieberstein in the Amount of $90,400 for the Neighborhood Park Project - Resolution No. 2003-044 The approved Master Development Plan for the Liberty Park site includes extension of culverts out-falling at the northeast corner of the park site, trail-head parking atop the culvert extension, and creation of a lake in the Calloway drainage channel. The City Council, at their February 5, 2003, meeting, directed staff to continue with the design and construction of the park to include the amenities on the south side of the tributary, and to begin the design and permitting process associated with the construction of the culvert extensions, trail-head parking and lake. The estimated costs for these amenities, as provided in the February 5,2003 Informal Report to Mayor and City Council and as discussed with Council, included the necessary design and permitting fees. These costs were shown as follows: Culvert Extensions Trail Head Parking Lake $130,000 $19,000 . $257.500 $406,500 Total Cost These costs were developed as follows: Construction Engineering Perm it Total Culvert Extensions $110,000 $10,000 $10,000 $130,000 Trail-Head Parking $17,575 $1 ,425 N/A $19,000 Lake $188.525 $11 .575 $57 .400 $257.500 $316,100 $23,000 $67,400 $406,500 Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other =-~~---.r (}J Department Head Signature Account Number 125-0000-604.79-00 Sufficient Funds Available 02-09-23-010 ~{L.-t\v.-. .,dget D;rno"" _ Finance Director /~ " Page 1 of 2 CITY OF NORTH RICHLAND HILLS Amending the professional services contract with Newman Jackson Bieberstein, Inc., for the permitting and design work associated with these amenities and amending the FY2002/2003 CIP Budget to accomplish the design and permitting is a pre-requisite to preparing the necessary construction documents for this work. The supplemental agreement, in the amount of $90,400, includes the following: 1. Design/engineering fees for the culvert extensions, parking and lake in the amount of $23,000, which represents approximately 7.3% of the construction cost. 2. Additional costs associated with the USACE, FEMA and TCEQ requirements, in the amount of $67,400 are necessary. This work includes the permit processing costs for the Nationwide 404 permit, TCEQ permit, CLOMR/LOMR processing and all application and document fees as follows: a. Nationwide 404 Permit b. TCEQ Permit c. CLOMR/LOMR d. 404 Document Fee e. TCEQ Document Fee f. CLOMR Document Fee g. LOMR Document Fee $21,000 $12,500 $25,000 $100 $1,000 $4,000 $3,800 The proposed costs associated with the permit processing work are based on hourly costs anè,1 the City will be billed for actual time involved. This project complies with City Council Goal #5, Providing Quality Parks, Open Space and Trails, providing quality of life amenities for the community. Recommendation: To execute the supplemental agreement with Newman Jackson Bieberstein in the amount of $90,400 and approve Resolution No. 2003-044 authorizing the City Manager to execute the contract, and to appropriately amend the 2002/2003 parks and Recreation Facility Development CIP Budget. CITY COUNCIL ACTION ITEM Page 2 of 2 . . . RESOLUTION No. 2003-044 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHlAND HillS, TEXAS, that: The City Manager is hereby authorized to execute the Professional Services Supplemental Agreement with Newman, Jackson, Bieberstein, Inc., for the design of additional park amenities at the Holiday/Industrial Neighborhood Park Site, and to amend the FY 2002/03 CIP Budget to reflect the expenditure, as act and deed of the City. PASSED AND APPROVED this 28th day of Apri/2003. APPROVED: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George Staples, City Attorney APPROVED AS TO CONTENT: ~ ~ ~.~ Jim Browne, Director of Parks & Recreation Parks & Recreation Capital Projects Industrial/Holiday Neighborhood Park (Liberty Park) 02-09-23-010 PROJECT DESCRIPTION & JUSTIFICATION This project provides for critical neighborhood park services in the central area of the City on 2.44 acres located at the northwest comer of Industrial and Holiday. Park amenities include a playground, picnic pavilion, concrete multi-use trail, signage, landscaping, creation of a lake, trail head parking, public art and irrigation. This park is part of the Neighborhood Park Initiative Project involving design and construction of seven new neighborhood parks throughout the City. The Calloway Trail will travel from the north to the south on the west side of the park site. The City Council awarded the professional services contract to design the park on April 22, 2002. The City Council, in January, 2000, adopted the 2000 Parks, Recreation and Open Space Master Plan which documents the citizen-surveyed top need as neighborhood park facilities. The highest ranked needs identified were playgrounds, picnic shelters, and multi-use trails, all of which are the primary amenities of this neighborhood park. This park site, which was purchased in 2001, is located in the central area of the City in Neighborhood Park Service Zone 16. This area ot the City is completely built out and this project will provide first-time park amenities to this area. The City Council awarded the professional services contract for the design of the park and preparation of the construction documents to Newman, Jackson, PROJECT STATUS Original 200212003 Original 2002/2003 Start Date Revision End Date Revision Professional Services 11/2001 n/a 06/2002 n/a Engineering/Design n/a OS/2002 nla 0512003 Construction 07/2002 0712003 0212003 0212004 REVISION EXPLANATION The City Council on February 5, 2003, concurred with allocating additional funding to the project to complete ~he amenities as shown on the Master Development Plan, which include the creation of a lake, the extension of culverts and the construction of trail-head parking atop the culvert extensions. This revision is necessary to appropriate funds for design of the additional park improvements. FINANCIAL DATA Total Funding Source Amount to Remaining Project Date Budget Cost Prior Funding Allocations: Parks & Recreation Sales Tax $350,000 $0 $0 $440,400 Total $350,000 $0 $0 $440,400 Project Expenditures Professional Services (In-House) $0 $0 $0 $0 Engineering IDesign 41,000 90,400 0 131,400 Construction 0 309,000 0 309,000 Total $41,000 $399,400 $0 $440,400 IMPACT ON OPERATING BUDGET The Park Maintenance Standards Man-Hours Workbook is integral to the practices and methods ot park maintenance management. Based on site specific data, work productivity records, and comparison with NRPA standards, man-hour requirements yield: 450 man hours - $6,750, Equipment - $264, Materials - $500, Annual Estimate - $8,514 .. CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 4/28/2003 Subject: Consideration of Action on all Matters PertaininQ to the Agenda Number: GN 2003-054 Award and Sale of $2,750,000 in General Obligation Bonds and Approve Ordinance No. 2702 Competitive bids will be received on Monday, April 28, 2003 for the sale of $2,750,000 in General Obligation Bonds for 1994 and 2003 bond election projects. Of this amount, $1,750,000 will be used for street projects, $100,000 for design of Holiday West Channel, and $900,000 for fire facility upgrades approved in the 2003 bond election. Rating conferences with Standard and Poor's and Moody's were held recently. The City received General Obligation Bond ratings from both Moody's Investors Service and Standard and Poor's. Moody's reaffirmed the rating of Aa3, and Standard and Poor's reaffirmed the AA- rating. Bids on the General Obligation Bonds will be evaluated by First Southwest, the Director of Finance and Managing Director of Administrative/Fiscal Services, and will b.e submitt~d to City Council at the regular meeting on April 28th. Upon acceptance of the best bid, it will be necessary for City Council to award the bid and to approve the ordinance as prepared by our bond counsel, Fulbright and Jaworski. The enclosed ordinance is for your consideration to be passed on Monday, April 28th. This ordinance also authorizes all the other necessary actions such as paying agent/registrar agreements. Attached is a list of the items included in this sale. Recommendation: Request the City Council to transact the following business in relation to the sale and issuance of bonds: I move to accept the bid of for the purchase of $2,750,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2003" at a true interest cost of % and adopt Ordinance 2702 authorizing the issuance of such bonds. Finance Review ~/¿../ De artment Head Signature w Account Number Sufficient Funds AvallaOle h~ Flo,"ooo;-, ~~i~e Source of Funds: Bonds (GO/Rev.) Operating Budget Other Page 1 of _ . SUMMARY 2003 DEBT ISSUES Summary 2003 General Obligation Bonds Street Improvement Projects Map Project # 1994 Bond Election - Streets: 1 Rufe Snow Drive (Glenview to Karen) $ 920,000 2 Rufe Snow (Mid-Cities to Hightower) 460,000 Subtotal 1994 Election G.O. Street Projects 1,380,000 2003 Bond Election - Streets: 3 Glenview Drive (Flory to Honey Lane) 200,000 4 Lola Drive (Scott Drive to Davis Blvd.) 100,000 5 Galway Lane (Emerald Hills to Park Entrance) 30,000 6 Flory Street (Manor Drive to Glenview Drive) 40,000 Subtotal 2003 Election G.O. Street Projects 370,000 Total G.O. Street Projects $ 1,750,000 . Drainage Improvement Projects 7 Holiday West Channel (2003 G.O.s) $ 100,000 Facility Improvement Projects 8 Fire Facility Upgrades (2003 G.O.s) $ 900,000 Total G.O.Bond Sale $ 2,750,000 Summary 2003 Certificates of Obligation 9 Multi-level Interactive Complex NRH20 Total C.O. Sale $ 2,250,000 1,450,000 $ 3,700,000 $ 6,450,000 10 Home~wnNRHUbffiry . TOTAL G.O. AND C.O. SALE . ORDINANCE NO. 2702 AN ORDINANCE authorizing the issuance of "CITY OF NORTH RICH LAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2003"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; providing for the redemption of certain outstanding bonds of the City; and resolving other matters incident and related to the issuance, sale, payment and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of an Official Statement; and providing an effective date. WHEREAS, the City Council further finds and determines that general obligation bonds in the principal amount of $2,750,000 approved and authorized to be issued at elections held September 27, 1994 and February 1, 2003, should be issued and sold at this time; a summary of the general obligation bonds authorized at said elections, the principal amount authorized, amounts heretofore issued and being issued pursuant to this ordinance and amounts remaining to be issued subsequent hereto being as follows: Date of Amount Previously Amount Unissued Election Purpose Authorized Issued Being Balance Issued . 9-27-1994 Street Improvements $20,000,000 $17,095,000 $1,380,000 $845,000 2-1-2003 Street Improvements 30,010,000 -0- 370,000 29,640,000 2-1-2003 Drainage Improvements 4,000,000 -0- 100,000 3,900,000 2-1-2003 Public Safety Facilities 1,900,000 -0- 900,000 1,000,000 2-1-2003 Animal Shelter 1,300,000 -0- -0- 1,300,000 AND WHEREAS, the Council hereby reserves and retains the right to issue the balance of unissued bonds approved at said elections in one or more installments when, in the judgment of the Council, funds are needed to accomplish the purposes for which such bonds were voted; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: . SECTION 1: Authorization - Desianation- Principal Amount- Purpose. General obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $2,750,000, to be designated and bear the title "CITY OF NORTH RICH LAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2003" (hereinafter referred to as the "Bonds"), for permanent public improvements and public purposes, to wit: $1,750,000 for street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of-way therefor, $100,000 for drainage improvements, and $900,000 for constructing and equipping public safety facilities (fire and police), including the acquisition of land therefor, in accordance with the Constitution and laws of the State of Texas, including V.T.C.A., Government Code, Chapter 1331. SECTION 2: Fullv Reaistered Obliaations - Bond Date -Authorized Denominations-Stated Maturities-Interest Rates. The Bonds shall be issued as fully registered , .. --- <-. obligations only, shall be dated April 15, 2003 (the "Bond Date"), shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") in accordance with the following schedule: Year of Principal Interest Stated Maturitv Amount Rate(s) 2004 $135,000 % 2005 135,000 % 2006 135,000 % 2007 135,000 % 2008 135,000 % 2009 135,000 % 2010 135,000 % 2011 135,000 % 2012 135,000 % 2013 135,000 % 2014 140,000 % 2015 140,000 % 2016 140,000 % 2017 140,000 % 2018 140,000 % 2019 140,000 % 2020 140,000 % 2021 140,000 % 2022 140,000 % 2023 140,000 % The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the rate(s) per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on February 15 and August 15 in each year, commencing February 15, 2004. SECTION 3: Terms of Pavment-Pavina Aaent/Reaistrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of Bank One, National Association to serve as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, transfer and exchange of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agent/ Registrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery Ordinance No. 2702 2 u__._._...__.____ · · · of the Bonds. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or the redemption thereof, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its designated offices in Columbus, Ohio (the "Designated PaymentlTransfer Office"). Interest on the Bonds shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Designated PaymentlTransfer 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 from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Bonds having Stated Maturities on and after February 15, 2014, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2013 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. At least forty-five (45) days prior to a redemption date for the Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the City. (a) Mandatorv Redemption. The Bonds having Stated Maturities of February 15, 20 , February 15, 20 and February 15, 20 (the "Term Bonds") shall be subject to mandatory Ordinance No. 2702 3 redemption in part prior to maturity at the redemption price of par and accrued interest to the date of redemption on the respective dates and in principal amounts as follows: Term Bonds due February 15, 20 Redemption Date Principal Amount Term Bonds due February 15, 20 Redemption Date Principal Amount February 15, 20 $ ,000 February 15, 20 $ ,000 Term Bonds due February 15, 20 Redemption Date Principal Amount February 15, 20 $,000 Approximately forty-five (45) days prior to each mandatory redemption date for the Term Bonds, the Paying Agent/Registrar shall select by lot the numbers of the Term Bonds within the applicable Stated Maturity to be redeemed on the next following February 15 from moneys set aside for that purpose in the Interest and Sinking Fund (as hereinafter defined). Any Term Bond not selected for prior redemption shall be paid on the date of their Stated Maturity. The principal amount of the Term Bonds for a Stated Maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the City, by the principal amount of Term Bonds of like Stated Maturity which, at least 50 days prior to the mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions set forth in paragraph(a) of this Section and not theretofore credited against a mandatory redemption requirement. (b) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bonds by $5,000 and shall select the Bonds, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (c) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the Ordinance No. 2702 4 principal amount thereof to be redeemed, shall be made at the Designated PaymentlTransfer Office of the Paying AgenURegistrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption, and has been called for redemption, and notice of redemption thereof has been duly given as hereinabove provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys sufficient for the payment of such Bond (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying AgenURegistrar. SECTION 5: Reoistration - Transfer - Exchanoe of Bonds-Predecessor Bonds. The Paying AgenURegistrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Bonds issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond may be transferred or exchanged for Bonds of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying AgenURegistrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying AgenURegistrar. Upon surrender of any Bond (other than the Initial Bond(s) referenced in Section 8 hereof) for transfer at the Designated PaymentlTransfer Office of the Paying AgenURegistrar, the Paying AgenURegistrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. . At the option of the Holder, Bonds (other than the Initial Bond(s) referenced in Section 8 hereof) may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated PaymentlTransfer Office of the Paying AgenURegistrar. Whenever any Bonds are surrendered for exchange, the Paying AgenURegistrar shall register and deliver new Bonds to the Holder requesting the exchange. . . All Bonds issued in any transfer or exchange of Bonds shall be delivered to the Holders at the Designated PaymentlTransfer Office of the Paying AgenURegistrar or sent by United States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any Ordinance No. 2702 5 mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to an assignee of a Holder any Bond called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. SECTION 6: Book-Entry Onlv Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Bonds, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system provided by The Depository Trust Company (DTC), a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representation, by and between the City and DTC (the "Depository Agreement"). Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited with DTC who shall hold said Bonds for its participants (the "DTC Participants"). While the Bonds are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the Holders of the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution - Reoistration. The Bonds shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Bond Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 1201. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 9C, manually executed by the Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration Ordinance No. 2702 6 . . . substantially in the form provided in Section 9D, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the aggregate principal amount of the Bonds with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered bonds, being one bond for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial Bond(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 9: Forms .A. Forms Generallv. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Bonds as evidenced by their execution. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. Ordinance No. 2702 7 A. Form of Definitive Bond. REGISTERED NO._ REGISTERED $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BOND, SERIES 2003 Bond Date: April 15, 2003 Interest Rate: Stated Maturity: CUSIP NO: Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Bond 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, 2004. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated PaymentlTransfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $2,750,000 (herein referred to as the "Bonds") for permanent public improvements and public purposes, to wit: $1,750,000 for street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of-way therefor, $100,000 for drainage improvements, and $900,000 for constructing and equipping public safety facilities (fire and police), including the acquisition of land therefor, under and in strict conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). Ordinance No. 2702 8 · · · The Bonds maturing on the dates hereinafter identified (the "Term Bonds") are subject to mandatory redemption prior to maturity with funds on deposit in the Interest and Sinking Fund established and maintained for the payment thereof in the Ordinance, and shall be redeemed in part prior to maturity at the price of par and accrued interest thereon to the date of redemption, and without premium, on the dates and in the principal amounts as follows: Term Bonds due February 15, 20 Redemption Date Principal Amount Term Bonds due February 15, 20 Redemption Date Principal Amount February 15, 20 $,000 $,000 February 15, 20 Term Bonds due February 15, 20 Redemption Date Principal Amount February 15, 20 $,000 The particular Term Bonds of a stated maturity to be redeemed on each redemption date shall be chosen by lot by the Paying AgenURegistrar; provided, however, that the principal amount of Term Bonds for a stated maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the City, by the principal amount of Term Bonds of like stated maturity which, at least 50 days prior to the mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying AgenURegistrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement. The Bonds maturing on and after February 15, 2014, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying AgenURegistrar), on February 15, 2013, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. At least thirty days prior to the date fixed for any redemption of Bonds, the City shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying AgenURegistrar. In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated PaymenUTransfer Office of the Paying AgenURegistrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations previded by Ordinance No. 2702 9 the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Bond redeemed in part. The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated PaymentlTransfer Office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be discharged at or prior to its maturity or redemption, and deemed to be no longer Outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated PaymentlTransfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid obligations of the City have been Ordinance No. 2702 10 '--"~-"-'---- . properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly executed under the official seal of the City as of the Bond Date. CITY OF NORTH RICH LAND HILLS, TEXAS Mayor COUNTERSIGNED: City Secretary . (SEAL) . Ordinance No. 2702 11 B. *Form of Reaistration Certificate of Comptroller of Public Accounts to appear on Initial Bondes) onlv. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) ) OF PUBLIC ACCOUNTS ) ) THE STATE OF TEXAS ) REGISTER NO. I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do not print on definitive bonds C. Form of Certificate of Paving AaenURegistrar to appear on Definitive Bonds onlv. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered under the provisions of the within-mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying AgenURegistrar. The designated offices of the Paying AgenURegistrar in Columbus, Ohio is the "Designated PaymenUTransfer Office" for this Bond. BANK ONE, NATIONAL ASSOCIATION Registration date: By Authorized Signature Ordinance No. 2702 12 . . . D. Form of Assianment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular. Signature guaranteed: E. The Initial Bond(s) shall be in the form set forth in paraaraph B of this Section. except that the form of the sinale fully reaistered Initial Bond shall be modified as follows: (i) immediately under the name of the bond the headings "Interest Rate" and "Stated Maturity" shall both be omitted. (ii) Paragraph one shall read as follows: Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: YEAR PRINCIPAL INSTALLMENTS INTEREST RATE (Information to be inserted from schedule in Section 2 hereof). (or so much principal thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid Principal Amount hereof from the Bond 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, 2004. Principal installments of this Bond are payable in the year of maturity or on Ordinance No. 2702 13 a prepayment date to the registered owner hereof by Bank One, National Association (the "Paying Agent/Registrar"), upon its presentation and surrender, at its designated offices in Columbus, Ohio (the "Designated PaymentlTransfer Office"). Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10: LeVY of Taxes. To provide for the payment of the "Debt Service Requirements" of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their payment at maturity or redemption or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and collected for and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Bonds shall be deposited to the credit of a "Special 2003 Bond Account" (the "Interest and Sinking Fund") maintained on the records of the City and deposited in a special fund maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the payment of the Bonds. Proper officers of the City are hereby authorized and directed to cause to be transferred to the Paying Agent/ Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Bonds as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each principal and interest payment date for the Bonds. SECTION 11: Mutilated-Destroved-Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the pàÿing Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, Ordinance No. 2702 14 _d_·_·~ ~._,___ . . . execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost or stolen. Every replacement Bond 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 Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Bonds. SECTION 12: Satisfaction of Obliaation of City. If the City shall payor cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. Ordinance No. 2702 15 The term "Government Securities" shall mean (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the City are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. SECTION 13: Ordinance a Contract - Amendments - Outstandina Bonds. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required to be held by Holders for consent to any such amendment, addition, or rescission. The term "Outstanding" when used in this Ordinance with respect to Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Ordinance, except: (1) those Bonds cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and (3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in Section 11 hereof. SECTION 14: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section 14, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. Ordinance No. 2702 16 .----- .-. -- _._.~ . . "Computation Date" has the meaning set forth in Section 1.148-1 (b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1 (b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1 (c) of the Regulations, of the Bonds. "Investment" has the meaning set forth in Section 1.148-1 (b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in Section 1.148-1 (b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. . "Yield" of (1) any Investment has the meaning set forth in Section 1.148- 5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (a) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. (b) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: . (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and Ordinance No. 2702 17 (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (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 Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (d) Not to Invest at HiQher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (e) Not Federallv Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (f) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (g) Rebate of Arbitraae Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. Ordinance No. 2702 18 . . . (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Interest and Sinking Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038- T or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (h) Not to Divert Arbitraae Profits. 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 earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. (i) Elections. The City hereby directs and authorizes the Mayor, City Manager, Director of Finance and City Secretary, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Ordinance No. 2702 19 ~ SECTION 15: Sale of Bonds. Pursuant to a public sale for the Bonds, the bid submitted by (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Bonds to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ , is hereby approved and confirmed. Delivery of the Bonds to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 16: Official Statement Approval. The use of the Official Statement by the Purchasers in connection with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, City Secretary, City Manager, and Director of Finance, one or more of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated April 28, 2003, in the reoffering, sale and delivery of the Bonds to the public. SECTION 17: Control and Custody of Bonds. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the initial purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Secretary, City Manager, and Director of Finance, anyone or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Bonds, including certifications as to facts, estimates, circumstances and reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of the Bonds, as may be necessary for the approval of the Attorney General, the registration by the Comptroller of Public Accounts and the delivery of the Bonds to the purchasers, and, together with the City's financial advisor, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the purchasers and the initial exchange thereof for definitive Bonds. SECTION 18: Proceeds of Sale. The proceeds of sale of the Bonds, excluding the accrued interest and premium, if any, received from the Purchasers, shall be deposited in a construction fund maintained at the City's depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments and, subject to the provisions of Section 14(h) hereof, any investment earnings realized shall be expended for such authorized projects and purposes or deposited in the Interest and Sinking Fund as shall be determined by the City Council. Accrued interest and premium, if any, received from the Purchasers as well as all surplus proceeds of sale of the Bonds, including investment earnings, remaining after completion of all authorized projects or purposes and paying or making provision for the payment of the amounts owed pursuant to Section 14(h) hereof shall be deposited to the credit of the Interest and Sinking Fund. SECTION 19: Notices to Holders-Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. Ordinance No. 2702 20 ,. . . In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 20: Cancellation. All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held by the Paying Agent/Registrar shall be returned to the City. SECTION 21: Leaal Opinion. The obligation of the Purchasers to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Bonds or an executed counterpart thereof shall accompany the global Bonds deposited with the Depository Trust Company. SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving the Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 23: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 24: Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 25: Governina Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 26: Effect of Headinas. The Section headings herein are for convenience only and shall not affect the construction hereof. Ordinance No. 2702 21 .. ..- . SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance words of the singular number shall be considered to include the plural, words of the plurai number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 28: Continuina Disclosure UndertakinQ. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (a) Annual Reports. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2003) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 16 of this Ordinance, being the information described in Exhibit B hereto. Financial statements to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available at the time the financial information and operating data must be provided, then the City shall provide unaudited financial statements for the applicable fiscal year to each NRMSIR and any SID with the financial information and operating data and will file the annual audit report when and if the same becomes available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: Ordinance No. 2702 22 I. . . (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (7) Modifications to rights of holders of the Bonds; (8) Bond calls; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds; and (11) Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (c) Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." SECTION 29: Severabilitv. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 30: Public MeetinQ. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. Ordinance No. 2702 23 SECTION 31: Effective Date. This Ordinance shall be in force and effect from and after its passage on the date shown below and it is so ordained. PASSED AND ADOPTED, this April 28, 2003. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: City Attorney (City Seal) Ordinance No. 2702 24 . . . Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 28 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix 8, but for the most recently concluded fiscal year. 2. The information in the Official Statement under Tables 1 through 6 and 8 through 15. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in paragraph 1 above - e e NllH CITY OF NORTH RICHLAND HILLS, TEXAS $2,750,000 GENERAL OBLIGATION BONDS, SERIES 2003 AND $3,700,000 TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2003 Sealed Bids Due Monday, April 28, 2003, at 11:00 AM, CDT The following ratings have been assigned: Bonds XL Capital Insured Certificates MBIA Insured Moody's Investors Service, Inc. " Aaa" " Aaa " Standard & Poor's Rating Group A Division of McGraw-Hill, Inc. "AAA" "AAA" PREPARED By: 1/ FIRST SOUTIIWFS! COMPANY Underlying Credit Rating " Aa3 II "AA_" e e - 15 APR 2003 e New Issue: North Richland Hills (City of) TX MOODY'S ASSIGNS Aa3 RATING TO THE CITY OF NORTH RICHLAND HillS [TX] $2.75 MilliON GENERAL OBLIGATION BONDS, SERIES 2003 AND $3.7 MilliON TAX AND WATERWORKS AND SEWER SYSTEM SURPLUS REVENUE CERTIFICATES OF OBLIGATION BONDS, SERIES 2003 RATING AFFIRMATION AFFECTS $61.3 MILLION IN PARITY DEBT, INCLUDING CURRENT ISSUE Municipality TX Moody's Rating ISSUE General Obligation Bonds, Series 2003 Sale Amount $2,750,000 Expected Sale Date 04/28/03 Rating Description General Obligation, Limited Tax RATING Aa3 Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation Sale Amount $3,700,000 Expected Sale Date 04/28/03 Rating Description General Obligation, Limited Tax Aa3 .Pinion NEW YORK, Apr 15, 2003 - Moody's Investors Service has assigned a Aa3 rating to the City of North Richland Hills [TX] $2.75 mDlion General Obligation Bonds, Series 2003 and $3.7 million Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003. At this time, Moody's has also affirmed the Aa3 rating on the City's $61.3 million in outstanding parity debt, including current issue. The rating reflects the City's growing assessed valuation, manageable debt level, and well- managed finances. The bonds and certificates are secured by a continuing ad valorem tax on all taxable property within the City, within the limits prescribed by law. Additionally, the Certificates ot Obligation are further secured by a limited pledge of surplus net revenues ot the City's Watel"M)rks and Sewer System. The General Obligation Bonds will be used for street drainage improvements and to pay costs ot issuance associated with the sale ot the bonds. Proceeds from the sale ot the Certificates will be used to purchase land and architectural services tor a new library, construct a multilevel complex attraction complex at NRH20, and for protessional services related to the construction of the aforementioned projects. Located in Tarrant County (Moody's ráed Aaa), the City of North Richland Hills is a residential suburb 10 miles northeast ot downtown Fort Worth (Moody's rated Aa 1), 25 miles northwest of downtown Dallas (Moody's rated Aaa), and 7 miles southwest of the Dallas-Fort Worth Intemational Airport. The City has enjoyed growth in recent years due to its location in the heart ot Tarrant County and within the Dallas/Fort Worth Metroplex. The assessed valuation increased at a five-year annual average ot 8.6%, to $2.8 billion in fiscal 2003. Despite the loss ot Foley's and Best Buy, the City continues to see relail development and recently added a Super Wal-Mart, Kroger's, and Super Target, along with several other commercial establistvnents to the assessed value. Though building permits slowed from the previous year, eight residential developments were completed last year. Approximately 15% the City's taxable jurisdiction remains undeveloped. Conservative management has enabled the City to mairiain a healthy three-year average fund balance ot 32.1 % as a percent of general fund revenues. The fIScal 2002 fund balance increased to 33.2% ot general fund revenues, of which 19.0% ot general tund revenues, or $5.7 million, is undesignated. Officials state the designated portion is tor potential infrastructure improvements that surround a shopping facility. General Fund revenues are composed of property taxes contributing 53.6%, sales taxes at 22.8%, and charges tor __ services at 12.9%. The City levies a 2% saes tax, of which 1 % is tor general purposes, %% is for economic ., development, and %% is for crirre control and prevention. From fiscal 2001 to 2002 sales tax collections decreased 5.4% to $8.3 million. Year to date collections tor fiscal year 2003 are clJTently above the prior period for fiscal year 2002, however significantly lower than the original budgeted increase of 8.9%. As a result city officials have downwardly revised projections tor the remainder ot fiscal year 2003 to a 5% increase. For fiscal 2004, sales tax is anticipated to remain at this level. Despite the shortfall in budgeted sales tax revenues, officials do not project a reduction in fund balance, and it necessary, are prepared to decrease expenditures by implementing a contingency plan that would delay the hiring ot vacant positions, reduce departmental budgets by 2%, and require directors to review and monitor expenditures. The City has historically operated at a total tax rate of $5.70 per $1,000 of assessed valuation and anticipates operating at _his level in1D the future. Despite the flat sales tax and anticipated revenue decline, Moody's believes well- ~aintained financial operations, conservative management, and willingness to implement a contingency plan enables the City to offset any near term challenges. Including these issues, the City's debt burdens are high but manageable at 2.6% direct and 5.7% overall represented as a percent ot assessed valuation; these debt burdens include sales tax revenue bonds that are supported by a %% sales tax. When removing debt that has historically been supported by water and sewer and drainage revenues, the direct and overlapping debt ratios are reduced to 2.3% and 5.5%, respectively. Birdville Independent School District Independent School District (Moody's rated Aa3) and Keller ISD (Moody's rated A3) account for approximately 92% of the City's overlapping debt. After these issues, the City has approximately $37 million in authorized but unissued debt, which it anticipåes issuing at a manageable rate over the next 7 years. The principal rate of retirement is rapid with 70% retired in ten years and all debt maturing in 21 years. KEY STATISTICS: 2003 Population: 60,100 2003 Full Valuation: $2.77 billion 2003 Full Value Per Capita: $46,095 Direct Debt Burden: 2.6%; excluding water, sewer and drainage self-supporting debt: 2.3% Overall Debt Burden: 5.7%; excluding water, sewer and drainage selt-suporting debt: 5.5% Payout ot Principal (10 years): 70% eFY 2002 Undesignated General Fund Balance: $5.7 million (19.0% ot General Fund Revenues) Analysts Sarrah Angelos Analyst Public Finance Group Moody's Investors Service Kristin Button Backup Analyst Public Finance Group Moody's Investors Service Contacts Journalists: (212) 553-0376 Research Clients: (212) 553-1653 © Copyright 2003, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, MOODY'S). All rights reserved. e I STANDARD &POOIrS ~esearch : Summary: North Richland Hills, TX; Tax Secured, General Oblgation Publication date: 24-Apr-2003 Credit Analyst: Sussan Corson, New York (1) 212-438-2014; Peter V Murphy, New York (1) 212-438-2065 II'IATlNGSDII'IECT Credit Profile $3.7 mil tax and wtrwks and swr sys surplus rev certs of oblig ser 2003 dtd 04/15/2003 due 02/15/2023 AA- Sale date: 28-APR-2003 $2.75 mil GO bnds ser 2003 dtd 04/15/2003 due 02115/2023 AA- Sale date: 28-APR-2003 AFFIRMED $2.219 mil. North Richland Hills GO rfdg & imp bnds ser 2001 dtd 04/15/2001 due 02/15/2002-2021 AAAlAA-(SPUR) $10.760 mil. North Richland Hills GO rfdg & imp bnds ser 2002 dtd 04/15/2002 due 04/15/2003-2016 2018 20202022 AAAlAA-(SPUR) $3.075 mil. North Richland Hills GO rfdg bnds ser 1997 dtd 09/01/1997 due 02115/19982002-2012 AAAlAA-(SPUR) $3.090 mil. North Richland Hills tax & wtrwks & swr sys surplus rev certs of oblig ser 2001 dtd 04/15/2001 due 02/15/2002- 2021 AAAlAA-(SPUR) $6.745 mil. North Richland Hills tax & wtrwks & swr sys surplus rev certs of oblig ser 2002 dtd 04/15/2002 due 02/15/2003- 201620192022 AAAlAA-(SPUR) .. $2.075 mil. North Richland Hills tax & wtrwrks & swr sys (Itd _ pledge) rev certs of oblig ser 2000 dtd 05/01/2000 due 02/15/2001-2020 AAAlAA-(SPUR) $3.020 mil. North Richland Hills tax and wtrworks & swr sys (Itd pledge) rev cert of oblig ser 1999 dtd 04/15/1999 due 02/15/2000-20152017 2019 AAAlAA-(SPUR) $1.813 mil. North Richland Hills wtrwks & swr sys Itd pledge rev certs ot oblig ser 1998 dtd 05/01/1998 due 02/15/1999- 2018 AAAlAA-(SPUR) OUTLOOK: STABLE AFFIRMED $2.320 mil. North Richland Hills GO bnds ser 1998 dtd 05/01/1998 due 02115/1999-2018 $1.600 mil. North Richland Hills GO bnds ser 1999 dtd 04/15/1999 due 02115/2000-2012 2015 2018 $2.440 mil. North Richland Hills GO bnds ser 2000 dtd 05/01/2000 due 02115/2001-2020 AAAlAA-(SPUR) AAAlAA-(SPUR) AAAlAA-(SPUR) . Rationale The 'AA-' rating on North Richland Hills, Texas' GO bonds and tax and waterworks and sewer system surplus revenue certificates of obligation reflects the city's: . . Access to the Dallas-Fort Worth MSA and Dallas-Fort Worth International Airport, · Above-average income levels, · Continued tax base growth and diversification, and · Strong financial position. e e e These strengths are mitigated by the city's: . Ongoing growth pressures, and . Expected future capital and debt needs. The city's tull taith and credit pledge secures the bonds. An ad valorem tax pledge and junior pledge ot net surplus revenues from the city's water and sewer system secure the certificates. North Richland Hills is about nine miles northeast of Fort Worth, Texas and 26 miles northwest of Dallas, Texas, with easy access to Dallas-Fort Worth International Airport and several major highways, including Interstate 820 and state highways 183 and 121. Population growth steadily increased over the past five years by almost 2% annually to 58,600 in 2003. Despite a growing labor force, the city's unemployment rate has remained consistently below the national level, averaging just 4.9% in 2003 compared to the national average of 6.3%. The city's income levels are above average. Median household effective buying income is at 132% and 133% of state and national levels, respectively. Market value is slightly above average at $47,000 per capita. Assessed value (A V) growth has been strong and increased by an average of 8% per year over the past five years to about $2.8 billion in 2003. A 130,000 square-foot expansion of UICI headquarters in 2002 and ongoing residential and commercial development in the city contributed to tax base growth in 2003. The 10 leading taxpayers account for a diverse 10% ot total 2003 AV. . Outlook The stable outlook reflects the expectation that despite ongoing capital needs, management will continue to maintain a good financial position. III Finances/Debt Finances. Historically, North Richland Hills' financial performance has been strong with positive net general fund operating results for the past seven years. The unreserved general fund balance was roughly $8.7 million, or 30% of operating expenditures, at fiscal year-end 2002, which was well above the city's goal of 15% of expenditures. Management expects to post another small surplus in fiscal 2003 to maintain a stable unreserved fund balance at year-end. The city has consistently received about 40% ot its revenue from property taxes with 25% coming from sales taxes and 22% trom franchise fees. The ad valorem tax rate of 57 cents per $100 of AV is average compared to other cities in the region; the rate has remained stable over the past 10 years. Debt. The overall net debt burden is a moderate 5.4% of market value and $2,400 per capita. Annual debt service requirements account for a high 23% of expenditures. Amortization, however, is rapid with about 70% of principal retired over 10 years. A 0.5% sales tax levy, which the electorate approved for community economic development, secures about $10 million of sales tax revenue bonds. In a February 2003 election, the electorate authorized $37 million of GO bonds. The bond program will finance street, drainage, and public facilities projects. Bond proceeds from the sale of the GO bonds will be primarily used to tund street and drainage projects. Certificate proceeds will finance the acquisition ot land and architectural services for a new library facility, as well as a new attraction at NRH20, the city's water park. The city expects the additional income generated by the new water park attraction to support debt service attributed to the parl<. The city does not expect to issue any additional debt within the next 12 months. Copyright © 1994-2003 Standard & Poor's. a division of The McGraw-Hili Companies. All Rights Reserved. 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Q) ~~ '€~ o~ Z Q) 4-0 - o~ þ"8 .- ..... u '§ 0'- 8¿ ~~ 5 ..... ..... oo~~ ~ 00 e e e e e e OFFICIAL STATEMENT RatiDgs: Moody's: "Aaa" S&P: "AAA" XL Capital AssuraDce IDsured - See ("BoDd IDsuraDce" aDd "Other IDformatioD - RatlDgs" hereiD) Dated April 28, 2003 NEW ISSUE - Book-EDtry-ODly In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income for federal income tax purposes under existing law, subject to the matters described under "Tax Exemption" herein, including the alternative minimum tax on corporations. THE BONDS WILL NOT BE DESIGNATED AS "OUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS 52,750,000 CITY OF NORTH RICHLAND HILLS, TEXAS (TarraDt County) GENERAL OBLlGA nON BONDS, SERIES 2003 Dated Date: April 15, 2003 Due: February 15, as shown below PAYMENT TERMS . . . Interest on the $2,750.000 City of North Richland Hills, Texas General Obligation Bonds, Series 2003 (the "Bonds") will accrue from April 15,2003 (the "Dated Date"), will be payable February IS and August IS of each year, commencing February 15,2004, and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. The definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or integral multiples thereof. No physical delivery of the Bonds will be made to the OWDers thereof. Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Bonds. See "The Bonds and Certificates - Book- Entry-Only System" herein. The initial Paying Agent/Registrar is Bank One, NA, Columbus, Ohio (see "The Bonds and Certificates - Paying AgentlRegistrar"). AUmORITY FOR ISSUANCE . . . The Bonds are issued pursuant to the Constitution and general laws of the State of Texas, (the "State") including particularly Vernon's Texas Codes Annotated ("V.T.C.A."), Texas Government Code, Chapter 1331, as amended, and are direct obligations of the City of North Richland Hills, Texas (the "City"), payable from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law, as provided in the ordinance authorizing the Bonds (the "Bond Ordinance") (see "The Bonds and Certificates - Authority for Issuance"). PURPOSE. . . Proceeds from the sale of the Bonds will be used for street improvements; drainage improvements; constructing and equipping public safety facilities (fire and police) and to pay the costs of issuance associated with the sale of the Bonds. >::~CAPITAL ASSURANCE Payment of the principal of and interest on the Bonds when due will be insured by a municipal bond iDsurance policy to be issued by XL Capital Assurance Inc. simultaneously with the delivery of the Bonds. MATURITY SCHEDULE CUSIP Prefix (\): 661836 CUSIP CUSIP Amount Maturity Rate Yield Suffix (1) Amount Maturity Rate Yield Suffix (I) $ 135.000 2004 5.000% 1.15% T97 $ 140,000 2014 3.750% 3.85% V37 135.000 2005 5.000% 1.50% U20 140,000 2015 3.750% 3.95% V45 135,000 2006 5.000% 1.80% 038 140,000 2016 4.000% 4.05% V52 135,000 2007 5.000% 2.30% U46 140,000 2017 4.000% 4.15% V60 135,000 2008 4.000% 2.64% U53 140,000 2018 4.125% 4.25% V78 135,000 2009 3.500% 2.92% U61 140,000 2019 4.250% 4.35% V86 135,000 2010 3.500% 3.22% U79 140,000 2020 4.350% 4.45% V94 135,000 2011 3.500% 3.47% U87 140,000 2021 4.400% 4.53% W28 135,000 2012 3.500% 3.61% U95 140,000 2022 4.500% 4.60% W36 135.000 2013 3.625% 3.73% V29 140,000 2023 4.500% 4.67% W44 (Accrued IDterest from April 15, 2003 to be added) (1) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by Standard and Poor's CUSIP Service Bureau, a division of the McGraw-Hili Companies, IDc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. REDEMPTION. . . The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15.2014, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15,2013, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. SEPARATE ISSUI!S . . . The Bonds are being offered by the City concurrently with the "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003" (the "Certificates"), under a common Official Statement, and such Bonds and Certificates are hereinafter sometimes referred to collectively as the "Obligations". The Bonds and Certificates are separate and distinct securities offerings being issued and sold independently except for the common Official Statement, and, while the Obligations share certain common attributes, each issue is separate from the other and should be reviewed and analyzed independently, including the type of obligation being offered, its terms for payment, the security for its payment, the rights of the holders, and other features. LEGAUTY . . . The Bonds are offered for delivery when, as and if issued and received by the Initial Purchaser and subject to the approving opinion of the Attorney General of Texas and the opinion of Fulbright & Jaworski L.L.P., Bond Counsel, Dallas, Texas (see Appendix C, "Fonn of Bond Counsel's Opinions"). DELIVERY. . . It is expected that the Bonds will be available for delivery through The Depository Trust Company on June 4, 2003. OFFICIAL STATEMENT e Dated April 28, 2003 Ratings: Moody's: "Aaa" S&P: "AAA" MBIA Insured - See ("Bond InsuraDce" and "Other Information - Ratings" herein) NEW ISSUE - Book-Entry-Only In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for federal income tax purposes under existing law, subject to the matters described under "Tax Exemption" herein, including the alternative minimum tax on corporations. THE CERTIFICATES WILL NOT BE DESIGNATED AS "OUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS $3.700.000 CITY OF NORTH RlCHLAND HILLS, TEXAS (Tarrant County) TAX AND WATERWORKS AND SEWER SYSTEM SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2003 Dated Date: April 15,2003 Due: February IS, as ,hown below PAYMENT TERMS. . . Interest on the 53,700,000 City of North Richland Hills, Texas Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003 (the "Certificates") will accrue nom April IS, 2003 (the "Dated Date"), will be payable February IS and August IS of each year, commencing February 15, 2004, and will be calculated on the basis of a 360-day year consisting of twelve 30-day months. The definitive Certificates will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the Certificates may be acquired in denominations of 55.000 or integral multiples thereof. No physical deUvery of the Certificates will be made to the owners thereof. Principal of, premium, if any, and interest on the Certificates will be payable by the Paying AgentlRegistrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Certificates. See "The Bonds and Certificates - Book-Entry-Only System" herein. The initial Paying Agent/Registrar is Bank One, NA, Columbus, Ohio (see "The Bonds and Certificates - Paying AgentlRegistrar"). AUTHORITY FOR ISSUANCE. . . The Certificates are issued pursuant to the Constitution and general laws of the State of Texas (the "State"), particularly Subchapter C of Chapter 271. Texas Local Government Code, as amended, and constitute direct obligations of the City of North Richland Hills, Texas (the "City"), payable nom a combination of (i) the levy and collection of an annual ad valorem tax. within the limits prescribed by law, on all taxable property within the City, and (ii) a pledge of surplus Net Revenues of the City's Waterworks and Sewer System as provided in the ordinance authorizing the Certificates (the "Certificate Ordinance") (see "The Bonds and Certificates - Authority for issuance"). PURPOSE. . . Proceeds nom the sale of the Certificates will be used for (i) a new library facility to be located in Hometown NRH, including the purchase of land and for architectural services, (ii) constructing a multilevel interactive complex attraction at NRH,O, and (iii) professiooal services related to the construction and fmancing of the aforementioned projects. JMBIA e Payment of the principal of and interest on the Certificates when due will be insured by a municipal bond insurance policy to be issued by MBIA Insurance Corporation simultaneously with the delivery of the Certificates. MATURITY SCHEDULE CUSIP Prefix (I): 661836 CUSIP CUSIP Amount Maturity Rate Yield SuffIX (1) Amount Maturity Rate Yield SuffIX (1) $ 135,000 2004 3.000% 1.21% W51 $ 190,000 2014 3.750% 3.82% X76 160,000 2005 3.000% 1.50% W69 190.000 2015 3.875% 3.93% X84 160,000 2006 3.000% 1. 79% W77 195,000 2016 4.000% 4.04% X92 160,000 2007 3.000% 2.24% W85 200,000 2017 4.1 00% 4.14% Y26 165,000 2008 3.000% 2,58% W93 205,000 2018 4.200% 4.24% Y34 165,000 2009 3,000% 2,88% Xl7 205,000 2019 4.300% 4.35% Y42 170,000 2010 3.150% 3.21% X35 210,000 2020 4.400% 4.43% Y59 175,000 2011 3,375% 3.46% X43 215,000 2021 4.450% 4.51% Y67 175,000 2012 5.000% 3.58% X50 220,000 2022 4.500% 4,59% Y75 180,000 2013 5,000% 3.71% X68 225,000 2023 4.625% 4.66% Y83 (Accrued Interest from April IS, 2003 to be added) (I) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by Standard and Poor's CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. REDEMPTION. . . The City reserveS the right, at its option, to redeem Certificates having stated maturities on and after February IS, 2014, in whole or in part in principal amounts of 55,000 or any integral multiple thereof, on February 15,2013, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. SEPARATE ISSUES. . . The Certificates are being offered by the City concurrently with the "City of North Richland Hills, Texas, General Obligation Bonds, Series 2003" (the "Bonds"). and such Certificates and Bonds are hereinafter sometimes referred to collectively as the "Obligations". The Certificates and Bonds are separate and distinct securities offerings being issued and sold independently except for the common Official Statement, and, while the Obligations share certain common attributes, each issue is separate nom the other and should be reviewed and analyzed independently, including the type of obligation being offered, its tenns for payment, the security for its payment, the rights of the holders, and other features. e LEGALITY. . . The Certificates are offered for delivery when, as and if issued and received by the Initial Purchaser and subject to the approving opinion of the Attorney General of Texas and the opinion of Fulbright & Jaworski L.L.P., Bond Counsel. Dallas, Texas (see Appendix C, "Fonn of Bond Counsel's Opinions"). DEUVERY. . . It is expected that the Certificates will be available for delivery through The Depository Trust Company on June 4, 2003. 3 e . . This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction to any person to whom it is unlawjùl to make such offer, solicitation or sale. No dealer, broker, salesperson or other person has been authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon. The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as the promise or guarantee of the Financial Advisor. This Official Statement contains, in part, estimates and matters of opinion which are not intended as statements offact, and no representation is made as to the correctness of such estimates and opinions, or that they will be realized The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described TABLE OF CONTENTS OFFICIAL STATEMENT SUMMARY......................... 6 CITY OFFICIALS, STAFF AND CONSULTANTS.....8 ELECTED OFFICIALS ...................................................8 SELECTED ADMINISTRATIVE STAFF.............................8 CONSULTANTS AND ADVISORS.................................... 8 INTRODUCTION ............................................................9 THE BONDS AND CERTIFICATES ............................. 9 TAX INFORMATION ...................................................14 TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT ..........................................21 TABLE 2 - TAXABLE ASSESSED VALUATIONS BY CATEGORY.. ........................ ................... ......... 22 TABLE 3 - V ALUA TION AND GENERAL OBLIGATION DEBT HISTORY................................................23 TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORy............................ ..:... ................. ....... 23 TABLE 5 - TEN LARGEST TAXPAYERS...................... 23 TABLE 6 - TAX ADEQUACy...................................... 24 TABLE 7 - ESTIMATED OVERLAPPING DEBT ............. 24 DEBT INFORMATION .................................................21 TABLE 8 - PRo-FoRMA GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS .................................21 TABLE 9 - INTEREST AND SINKING FUND BUDGET PROJECTION ...... ........... ...... ............................. 22 TABLE 10 - COMPUTATION OF SELF-SUPPORTING DEBT .............. .............. ... ....... .................... .... 22 TABLE 11 - AUTIlORIZED BUT UNISSUED GENERAL OBLIGATION BONDS........ ... ..... ................ ........ 23 TABLE 12 - OTIlER OBLIGATIONS.............................. 23 FINANCIAL INFORMATION ..................................... 24 TABLE 13 - GENERAL FUND REVENUES AND EXPENDITURES HISTORy................................ 24 TABLE 14 - MUNICIPAL SALES TAX HISTORy.......... 25 TABLE 15 - CURRENT INVESTMENTS......................... 28 TAX MATIERS............................................................. 29 OTHER INFORMATION .............................................30 RATINGS .................................................................. 30 LITIGATION.. ....................... ........... .......................... 30 REGISTRATION AND QUALIFICATION OF BONDS AND CERTIFICATES FOR SALE................................. 30 LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PuBLIC FUNDS IN TEXAS................................. 31 LEGAL MAITERS...................................................... 31 AUTIlENTICITY OF FINANCIAL DATA AND OTIlER INFORMATION................................................. 31 CONTINUING DISCLOSURE OF INFORMATION............. 32 FINANCIAL ADVISOR ................................................ 33 INITIAL PuRCHASER OF TIlE BONDS .......................... 33 INITIAL PuRCHASER OF TIlE CERTIFICATES ............... 33 CERTIFICATION OF TIlE OFFICIAL STATEMENT ..........33 APPENDICES GENERAL INFORMATION REGARDING THE CITy........ A EXCERPTS FROM TIlE ANNuAL FINANCIAL REpORT.. B FORM OF BOND COUNSEL'S OPINIONS ...................... C SPECIMEN XL Capital Assurance Inc. MUNICIPAL BOND INSURANCE POLICy.................. D SPECIMEN MBIA INSURANCE CORPORATION MUNICIPAL BOND INSURANCE POLICy.................. E The cover page hereof, this page, the appendices included herein and any addenda, supplement or amendment hereto, are part of the Official Statement. 5 e RATINGS ...................................... The Bonds are rated "Aaa" by Moody's Investors Service, Inc. ("Moody's") and "AAA" by Standard & Poor's Ratings Services, A Division of The McGraw-Hill Companies, Inc. ("S&P") through an insurance policy to be issued by XL Capital Assurance concurrently with the delivery of the Bonds. The Certificates are rated "Aaa" by Moody's and "MA" by S&P through an insurance policy to be issued by MBIA Insurance Corporation. The presently outstanding general obligation debt of the City is rated "Aa3" by Moody's and "AA-" by S&P. The City also has issues outstanding which are rated "Aaa" by Moody's and "MA" by S&P through credit enhancement in the fonn of municipal bond insurance policies (see "Other Infonnation - Ratings"). BOOK-ENTRy-ONLY SySTEM...... The definitive Bonds and Certificates will be initially registered and delivered only to Cede & Co., the nominee of DTC pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the Bonds and Certificates may be acquired in denominations of $5,000 or integral multiples thereof. No physical delivery of the Bonds and Certificates will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Bonds and Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Bonds and Certificates (see "The Bonds and Certificates - Book-Entry-Only System"). PAYMENT RECORD ...................... The City has never defaulted on the payment of its bonded indebtedness. SELECTED FINANCIAL INFORMATION Ratio G.O. Fiscal Net Per Capita General Per Tax Debt Year Estimated Taxable Net Taxable Obligation Capita to Taxable %of Ended City Assessed Assessed (G.O.) G. O. Tax Assessed Total Tax 9-30 Population Valuation (3) Valuation Tax Debt (4) Debt Valuation Collections 1999 54,850 (I) $ 1,961,955,687 $ 35,769 $ 58,140,141 $ 1.060 2.96% 99.23% e 2000 55,635 (2) 2,136,094,682 38.395 58,812,289 1,057 2.75% 98.93% 2001 57,498 (1) 2,316,964,617 40,296 58,046,282 1,010 2.51% 97.92% 2002 58,627 (I) 2,599,212,878 44,335 60,484,270 1,032 2.33% 99.06% 2003 60,100 (I) 2,770,329,398 46,095 61,334,926 (5) 1,021 2.21% 95.50% (6) (1) Estimate of City Planning Department. (2) U.S. Census. (3) As reported by the Tarrant Appraisal District on City's annual State Property Tax Reports; subject to change during the ensuing year. (4) Includes self-supporting debt. (5) Projected, includes the Bonds and Certificates. (6) Collections for partial year only, through March I, 2003. For additional infonnation regarding the City, please contact: Larry Koonce Director of Finance City of North Richland Hills P.O. Box 820609 or North Richland Hills, Texas 76182-0609 (817) 427-6167 David Medanich or Laura Alexander First Southwest Company 777 Main Street, Suite 1200 Fort Worth, Texas 76102-3123 (817) 332-9710 e 7 e OFFICIAL STATEMENT RELATING TO $2,750,000 GENERAL OBLIGATION BONDS, SERIES 2003 $3,700,000 TAX AND WATERWORKS AND SEWER SYSTEM SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2003 INTRODUCTION This Official Statement, which includes the Appendices hereto, provides certain information regarding the issuance of $2,750,000 City of North Richland Hills, Texas, General Obligation Bonds, Series 2003 (the "Bonds") and $3,700,000 City of North Richland Hills, Texas, Tax and WatelWorks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003 (the "Certificates") (collectively, the "Obligations"). The Bonds and the Certificates (collectively the "Obligations") are separate and distinct securities offerings being authorized for issuance under separate ordinances (the "Bond Ordinance" and the "Certificate Ordinance") adopted by the City Council of the City, but are being offered and sold pursuant to a common Official Statement, and while the Bonds and Certificates share certain common attributes, each issue is separate and apart from the other and should be reviewed and analyzed independently, including the kind and type of obligation being issued, its terms of payment, the security for its payment, the rights of the holders and the covenants and agreements made with respect thereto. Capitalized terms used in this Official Statement have the same meanings assigned to such terms in the Bond Ordinance and Certificate Ordinance to be adopted on the date of sale of the Bonds and Certificates (collectively, "the Ordinances"), except as othelWise indicated herein. There follow in this Official Statement descriptions of the Bonds and Certificates and certain information regarding the City and its finances. All descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Copies of such documents may be obtained from the City's Financial Advisor, First Southwest Company, Dallas, Texas. e DESCRIPTION OF THE CITY. . . The City is a political subdivision and municipal corporation of the State, duly organized and existing under the laws of the State, including the City's Home Rule Charter. The City was incorporated in 1953, and first adopted its Home Rule Charter in 1964. The City operates under a Council/Manager form of government with a City Council comprised of the Mayor and seven Councilmembers. The term of office for the Mayor and the Councilmembers is two years with the terms of the Mayor and three of the Councilmembers' terms expiring in even-numbered years and the terms of the other four Councilmembers expiring in odd-numbered years. The City Manager is the chief administrative officer for the City. Some of the services that the City provides are: public safety (police and fire protection), highways and streets, water and sanitary sewer utilities, health services, culture and recreation, public improvements, planning and zoning, and general administrative services. The 2000 Census population for the City was 55,635, with an estimated 2003 population of 60,100. The City covers . approximately 18.29 square miles. For additional information relating to the City, see "Appendix A - General Information Regarding the City." THE BONDS AND CERTIFICATES DESCRIPTION OF THE BONDS AND CERTIFICATES. . . The Bonds and Certificates are dated April 15, 2003, and mature on February IS in each of the years and in the amounts shown on the cover page and page 3 hereof. Interest will be computed on the basis of a 360-day year of twelve 30-day months, and will be payable on August IS and February IS of each year, commencing February IS, 2004. The definitive Bonds and Certificates will be issued only in fully registered form in any integral multiple of$5,000 for anyone maturity and will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to the Book-Entry-Only System described herein. No physical delivery of the Bonds and Certificates will be made to the owners thereof. Principal of, premium, if any, and interest on the Bonds and Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Bonds and Certificates. See "Book- Entry-Only System" herein. AUTHORITY FOR IsSUANCE. . . The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas, particularly V.T.C.A., Texas Government Code, Chapter 1331, as amended; and the Bond Ordinance. The Bonds represent a portion of the principal amount of bonds authorized at elections held in the City on September 27,1994 and on February 1,2003. See "Table 11 - Authorized But Unissued General Obligation Bonds" hereafter. The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter C of Chapter 271, Texas Local Government Code, as amended, and the Certificate Ordinance passed by the City Council. . 9 e The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds and Certificates (collectively the "Obligations"). The Obligations will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative ofDTC. One fully- registered security certificate will be issued for each maturity of the Bonds and Certificates, as set forth on the cover page and page 3 hereof. in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Conunercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.s. equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Conunission. More information about DTC can be found at www.dtcc.com. e Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for the Obligations on DTC's records. The ownership interest of each actual purchaser of each Obligation ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings. from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Obligations are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Obligations, except in the event that use of the book-entry system for the Obligations is discontinued. To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name ofDTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative ofDTC. The deposit of Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts such Obligations are credited, which mayor may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be govemed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, defaults, and proposed amendments to the Obligation documents. For example, Beneficial Owners of Obligations may wish to ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Obligations within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Obligations unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy). e Principal and interest payments on the Obligations will be made to Cede & Co., or such other nominee as may be requested by an authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from City or Paying Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and II e e e which has sought protection under Chapter 9. Therefore, should the City avail itself of Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary powers of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that all opinions relative to the enforceability of the Ordinances and the Bonds and Certificates are qualified with respect to the customary rights of debtors relative to their creditors. DEFEASANCE. . . The respective Ordinances provide for the defeasance of the Bonds or Certificates when the payment of the principal of and premium, if any, on the Bonds or Certificates, as the case may be, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise), is provided by irrevocably depositing with the paying agent or other authorized escrow agent, in trust (1) money sufficient to make such payment or (2) Government Obligations, certified by an independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times to insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of the paying agent for the Bonds or Certificates being defeased. The respective Ordinances provide that "Government Obligations" means (a) direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America (b) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating finn not less than AAA or its equivalent, and (c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. Upon making such deposit in the manner described, such Bonds or Certificates, as the case may be, shall no longer be deemed outstanding obligations secured by the Bond Ordinance or Certificate Ordinance, as the case may be, but will be payable only from the funds and Government Securities deposited in escrow and will not be considered debt of the City for purposes of taxation or applying any limitation on the City's ability to issue debt or for any other purpose. AMENDMENTS. . . The City may amend the Ordinances without the consent of or notice to any registered owners in any manner not detrimental to the interests of the registered owners, including the curing of any ambiguity, inconsistency, or formal defect or omission therein. In addition, the City may, with the written consent of the holders of a majority in aggregate principal amount of the Bonds and Certificates then outstanding, amend, add to, or rescind any of the provisions of the Ordinances; except that, without the consent of the registered owners of all of the Bonds or Certificates or Bonds then outstanding, no such amendment, addition or waiver to the Bond Ordinance and the Certificate Ordinance. as the case may be, may (1) change the date specified as the date on which the principal of any installment of interest on any Bond or Certificate is due payable, reduce the principal amount or the rate of interest thereon, change the place or places at or the coin or currency in which any Bonds or Certificate or interest thereon is payable, or in any other way modifY the terms of the payment of the principal of or interest on the Bonds or Certificates, (2) give any preference to any Bond or Certificate over any other Bond or Certificate, as the case may be, or (3) reduce the aggregate principal amount of the Bonds or Certificates required to be held by the owners of the Bonds or Certificates, as the case may be, for consent to any amendment, addition or waiver. (The remainder of this page left blank intentionally.) 13 e e e ratings reflect Moody's, Standard & Poor's and Fitch's current assessment of the Insurer's creditworthiness and claims- paying ability as well as the reinsurance arrangement with XLFA described under "Reinsurance" above. The above ratings are not recommendations to buy, sell or hold securities, including the Bonds and are subject to revision or withdrawal at any time by Moody's, Standard & Poor's or Fitch. Any downward revision or withdrawal of these ratings may have an adverse effect on the market price of the Bonds. The Insurer does not guaranty the market price of the Bonds nor does it guaranty that the ratings on the Bonds will not be revised or withdrawn. CAPITALIZATION OF THE INSURER Based on the audited statutory financial statements for XLCA as of December 31, 2001, XLCA had total admitted assets of $158,442,157, total liabilities of $48,899,461 and total capital and surplus of $109,542,696 detennined in accordance with statutory accounting practices prescribed or pennitted by insurance regulatory authorities ("SAP"). Based on the unaudited statutory financial statements for XLCA as of December 31, 2002 filed with the State of New York Insurance Department, XLCA has total admitted assets of $180,993,189, total liabilities of $58,685,217 and total and capital surplus of $122,307,972 determined in accordance with SAP. For further infonnation concerning XLCA and XLF A, see the financial statements of XLCA and XLF A, and the notes thereto, incorporated by reference in this Official Statement. The financial statements of XLCA and XLFA are included as exhibits to the periodic reports filed with the Securities and Exchange Commission (the "Commission") by XL Capital Ltd and may be reviewed at the EDGAR website maintained by the Commission. All financial statements of XLCA and XLF A included in, or as exhibits to, documents filed by XL Capital Ltd pursuant to Section l3(a), 13(c), 14 or l5(d) of the Securities and Exchange Act of 1934 on or prior to the date of this Official Statement, or after the date of this Official Statement but prior to tennination of the offering of the Bonds, shall be deemed incorporated by reference in this Official Statement. Except for the financial statements of XLCA and XLF A, no other infonnation contained in XL Capital Ltd's reports filed with the Commission is incorporated by reference. Copies of the statutory quarterly and annual statements filed with the State of New York Insurance Department by XLCA are available upon request to the State of New York Insurance Department. REGULATION OF THE INSURER The Insurer is regulated by the Superintendent of Insurance of the State of New York. In addition, the Insurer is subject to regulation by the insurance laws and regulations of the other jurisdictions in which it is licensed. As a financial guaranty insurance company licensed in the State of New York, the Insurer is subject to Article 69 of the New York Insurance Law, which, among other things, limits the business of each insurer to financial guaranty insurance and related lines, prescribes minimum standards of solvency, including minimum capital requirements, establishes contingency, loss and unearned premium reserve requirements, requires the maintenance of minimum surplus to policyholders and limits the aggregate amount of insurance which may be written and the maximum size of any single risk exposure which may be assumed. The Insurer is also required to file detailed annual financial statements with the New York Insurance Department and similar supervisory agencies in each of the other jurisdictions in which it is licensed:· The extent of state insurance regulation and supervision varies by jurisdiction, but New York and most other jurisdictions have laws and regulations prescribing pennitted investments and governing the payment of dividends, transactions with affiliates, mergers, consolidations, acquisitions or sales of assets and incurrence of liabilities for borrowings. THE FINANCIAL GUARANTY INSURANCE POLICIES ISSUED BY THE INSURER, INCLUDING THE [INSURANCE POLICY], ARE NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. The principal executive offices of the Insurer are located at 1221 Avenue of the Americas, New York, New York 10020 and its telephone number at this address is (212) 478-3400. 15 e e tit MBIA Information The following documents filed by the Company with the Secwities and Exchange Connnission (the "SEC") are incorporated herein by reference: (1) The Company's Annual Report on Form 10-K for the year ended December 31,2001; and (2) The Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002. Any documents filed by the Company pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act of 1934, as amended, after the date of this Official Statement and prior to the termination of the offering of the Certificates offered hereby shall be deemed to be incorporated by reference in this Official Statement and to be a part hereof. AI1y statement contained in a document incorporated or deemed to be incorporated by reference herein, or contained in this Official Statement, shall be deemed to be modified or superseded for purposes of this Official Statement to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Official Statement. The Company files annual, quarterly and special reports, infonnation statements and other information with the SEC under File No. 1-9583. Copies of the SEC filings (including (1) the Company's Annual Report on Form 10-K for the year ended December 31, 2001, and (2) the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002), are available (i) over the Internet at the SEC's web site at httD://www.sec.gov; (ii) at the SEC's public reference room in Washington D.C.; (iii) over the Internet at the Company's web site at http://www.mbia.com; and (iv) at no cost, upon request to MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504. The telephone number ofMBIA is (914) 273-4545. As of December 31,2001, MBIA had admitted assets of$8.5 billion (audited), total liabilities of$5.6 billion (audited), and total capital and surplus of $2.9 billion (audited) determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities. As of September 30, 2002, MBIA had admitted assets of $9.0 billion (unaudited), total liabilities of $5.9 billion (unaudited), and total capital and surplus of $3.1 billion (unaudited) determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities. Financial Strength Ratings ofMBIA Moody's Investors Service, Inc. rates the financial strength ofMBIA "Aaa." Standard & Poor's, a division of The McGraw-Hill Companies, Inc. rates the financial strength ofMBIA "AAA." Fitch Ratings rates the financial strength ofMBIA "AAA." Each rating ofMBIA should be evaluated independently. The ratings reflect the respective rating agency's current assessment of the creditworthiness of MBIA and its ability to pay claims on its policies of insurance. Any further explanation as to the significance of the above ratings may be obtained only from the applicable rating agency. The above ratings are not recommendations to buy, sell or hold the Certificates. and such ratings may be subject to revision or withdrawal at any time by the rating agencies. AI1y downward revision or withdrawal of any of the above ratings may have an adverse effect on the market price of the Certificates. MBIA does not guaranty the market price of the Certificates nor does it guaranty that the ratings on the Certificates will not be revised or withdrawn. DISCLOSURE OF GUARANTY FUND NONPARTlCIPATION: In the event the Insurer is unable to fulfill its contractual obligation under this policy or contract or application or certificate or evidence of coverage, the policyholder or certificateholder is not protected by an insurance guaranty fund or other solvency protection arrangement. 17 e television channel) and the City Council has otherwise complied with the legal requirements for the adoption of such tax rate. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and (2) a rate for debt service. Under the Property Tax Code, the City must annually calculate and publicize its "effective tax rate" and "rollback tax rate". If the adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine whether or not to reduce the tax rate adopted for the current year to the rollback tax rate. "Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation oflast year's taxes and new values are not included in this year's taxable values. "Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the anticipated tax collection rate. The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an additional one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year. Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation of the various defined tax rates. PROPERTY ASSESSMENT AND TAX PAYMENT. . . Property within the City is generally assessed as of January I of each year. Business inventory may, at the option of the taxpayer, be assessed as of September I. Oil and gas reserves are assessed on the basis of a valuation process which uses an average of the daily price of oil and gas for the prior year. Taxes become due October I of the same year, and become delinquent on February I of the following year. Taxpayers 65 years old or older are permitted by State law to pay taxes on homesteads in four installments with the first due on February I of each year and the final installment due on August I. PENALTIES AND INTEREST. .. Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows: e Cumulative Cumulative Month Penalty Interest Total February 6% 1% 7% March 7 2 9 April 8 3 II May 9 4 13 June 10 5 15 July 12 6 18 After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition the taxing unit may contact with an attorney for the collection of delinquent taxes and the amount of compensation as set forth in such contract may not provide for a fee that exceeds 20% of the amount of delinquent tax, penalty, and interest collected. Under certain circumstances, taxes which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the amounts due. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the bankruptcy court. In many cases post-petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the bankruptcy court. e 19 e TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT 2002/03 Market Valuation Established by Tarrant Appraisal District (excluding totally exempt property) Less Exemptions/Reductions at 100% Market Value: Residential Exemptions, Over 65 and Disabled Disabled Veterans Agricultural and Scenic Land Use Freeport Value Loss Pollution Control Loss to Prorated Absolute Exemptions & Nominal Values Abatement Value Loss $ 336,547,301 3,239,749 7,922.838 9.975,250 22,382 316,322 25,247,493 2002/03 Taxable Assessed Valuation Less Net Taxable Value in Arbitration 2002/03 Certified Net Taxable Value General Obligation Debt Payable ITom Ad Valorem Taxes (as of3/1/03) (I) General Obligation Bonds Certificates of Obligation Capital Leases - General Obligation Notes Payable The Certificates The Bonds $ 33.885,596 20,835,000 197,375 3,700,000 2.750.000 e General Obligation Debt Payable ITom Ad Valorem Taxes Less: Self - Supporting Debt (2) Golf Course - General Obligation Bonds Golf Course - Certificates of Obligation Golf Course - Capital Leases Aquatic Park - Certificates of Obligation Water and Sewer - Certificates of Obligation TIFD #1 - Certificates of Obligation Drainage - General Obligation Debt Drainage - Certificates of Obligation Reimbursements ITom Other Governments Park Development - Certificates of Obligation The Certificates - Aquatic Park The Certificates - TIFD #2 $ 3,060,664 495,000 197,375 1,869,196 546,900 636.801 4,760.810 1,125,050 240,584 1,886,216 2,250,000 1,450.000 Net General Obligation Debt Payable from Ad Valorem Taxes Interest and Sinking Fund as of 3/1/03 Ratio Net General Obligation Tax Debt to Taxable Assessed Valuation. . . . . . . . . . . . . . . . . . .. . . . . . . . . . 2003 Estimated Population - 60,100 Per Capita Taxable Assessed Valuation - $46,095 Per Capita Net General Obligation Debt Payable ITom Ad Valorem Taxes - $713 $ 3,212,860,361 383,271,335 $ 2,829,589,026 59,259,628 $ 2,770,329,398 $ 61,367.971 18,518,596 $ 42,849,375 $ 2,261,198 1.55% (I) The above statement of indebtedness does not include $9,375,000 Park and Recreation Facilities Development Corporation Sales Tax Revenue Bonds, presently outstanding, which are not Obligations of the City and which are payable solely from the receipts of a 1/2 of 1 % local sales and use tax, collected on behalf of such corporation and $2,760,000 Waterworks and Sewer System Revenue Bonds. which are payable solely from the Net Revenues of the System, as defmed in the bond ordinances authorizing such bonds. (2) General obligation debt in the amounts shown for which repayment is provided from revenues of the respective revenue systems. The amount of self-supporting debt is based on the percentages of revenue support as shown in "Table 10 - Computation of Self-Supporting Debt". It is the City's current policy to provide these payments from respective system revenues; this policy is subject to change in the future. e 21 TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT HISTORY e G.O. Ratio of Fiscal Taxable Tax Debt G.O. Tax Debt G.O. Tax Year Taxable Assessed Outstanding to Taxable Debt Ended Estimated Assessed Valuation at End Assessed Per 9-30 Population Valuation (3) Per Capita of Year (4) Valuation Capita 1999 54,850 (I) $ 1,961,955,687 $ 35,769 $ 58,140,141 2.96% $ 1,060 2000 55,635 (2) 2,136,094,682 38,395 58,812,289 2.75% 1,057 2001 57,498 (1) 2,316,964,617 40,296 58,046,282 2.51% 1,010 2002 58,627 (I) 2,599,212,878 44,335 60,484,270 2.33% 1,032 2003 60,100 (I) 2,770,329,398 46,095 61,334,926 (5) 2.21% 1,021 (1) Estimate of City Planning Department. (2) U.S. Census. (3) As reported by the Tarrant Appraisal District on City's annual State Property Tax Reports; subject to change during the ensuing year. (4) Includes self-supporting debt. (5) Projected, includes the Bonds and Certificates. e TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY Fiscal Interest Year and Ended Tax General Sinking % Current % Total 9-30 Rate Fund Fund Tax Levy Collections Collections 1999 $ 0.57000 $ 0.31510 $ 0.25490 $ 11,149,327 98.84% 99.23% 2000 0.57000 0.32422 0.24578 12,164,692 98.09% 98.93% 2001 0.57000 0.33164 0.23836 13,450,403 97.04% 97.92% 2002 0.57000 0.33531 0.23469 14,745,229 98.15% 99.06% 2003 0.57000 0.32821 0.24179 15,738,724 93.07% (1) 95.50% (I) (1) Collections for partial year only, through March 1,2003. TABLE 5 - TEN LARGEST TAXPAYERS 2002/03 % of Total Taxable Taxable Assessed Assessed Name of Taxpayer Nature of Property Valuation Valuation Wal- Mart Retail $ 45,941,918 1.66% Home Depot, Inc. Retail 40,909,913 1.48% Kimberly Clark/Tecnol, Inc. Manufacturing 31,132,574 1.12% Food Brands America, Inc. Food Manufacturer 26,111,782 0.94% Alliance Park Portfolio LLC CommerciallReal Estate 25,094,693 0.91% Five Star Ford / Pack Properties Auto Sales 23,884,599 0.86% Oncor Electric Delivery (TXU) Electric Utility 23,733,453 0.86% Mid Star PropertiesINorth Hills Mall CommerciallReal Estate 20,909.920 0.75% Meadows NRH Associates LP Real Estate 19.175,403 0.69% Haverhill Associates LP Real Estate 18,000,000 0.65% $ 274,894,255 9.92% e 23 e e e ] I jl DEBT INFORMATION ~ ~ -0 ~ ~ N .,. g ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ : ~ ~ ~ s ~ ~ ~ ~ § ~ ~ ~ ~ ~ ~ ž ~ z ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 5 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ö ..¿ .¿ 'Ii .¿ .¿ '^ .,¡ ~ M ,., Ñ Ñ Ñ Ñ ~ ~ ~ 0< -0 ~ ·F ~ 3 i ð ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ = ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ¡ z ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ !t .:!I o <:> ~.~ _~ ~ !_~ ~ ~ § ~ ~ i ~ 00 ~ ~ ~ ~ N N Ñ ~ ~ § ~ ~ É ~~¡f~ .....I en Ö .,. ~ ~ ~ ~ ~ ..,. ~ \0 Õ ..,. :! i. ~ ~ ;; ï ~ ~ ~ å ~ ~ ~~~ ~~~~S!~ : 1 J ~ ~ ~ ~ ~ ~ ~ ~ ...¡ '" .,. on r- Õ r; ~ ~ g g ~ ~ ~ ~ ~ 5 ~ å ~~~~r-- ~,.; ..,. 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I:: >->-:J "'~s:i(¡j ~~~~ ~ 0 -'f ¡ I I ð 'ª, ~ ~.s (.) .~ .~ 'õ .:õ Q.) 0,) ~ Q,)-=-= 0 o~~'€ ~~~ 8- ;a:.=:.== ~ 0,) Q,) fn .e ~ gp~ ~~~.E! 9~~.Ë ~ '" ë: ,,; N ~ '" ..; N N ..; -0 ~ ;å ..; i1ci .., ..; !:: ~ ::¿ 8" -0 ,.: '" -0 ;Q ~ § g r- ..; ~ '" ~ 8 Q ;Q Ñ ~ ~ '" § 1< N .¡, .,. g ---- -N('f"I~ '-" '-' '-" '-" e e e TABLE 11 - AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS Amount Amount Date Amount Heretofore Being Unissued Purpose Authorized Authorized Issued Issued Balance Street Improvements 9-27-94 $ 20,000,000 $ 17,775,000 $ 1,380,000 $ 845,000 Street Improvements 2-1-03 30,010,000 0 370,000 29,640,000 Drainage Improvements 2-1-03 4,000,000 0 100,000 3,900,000 Public Safety Facilities 2-1-03 1,900,000 0 900,000 1,000,000 Animal Shelter 2-1-03 1,300,000 0 0 1.300,000 $ 57,210,000 $ 17,775,000 $ 2,750,000 $ 36,685,000 ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT. .. The City does not anticipate the issuance of general obligation debt within the next twelve months. CAPITAL IMPROVEMENT PLAN The City maintains a multi-year plan for capital improvement needs. The capital improvement plan ("CIP") is part of the ongoing effort by the City to meet the needs of a growing community, while stabilizing the tax burden of the citizens of the City. The strategy includes managing the cost of capital projects, paying cash for capital projects when possible and reducing interest expense by managing the borrowing of funds. The current CIP identifies approximately $19,000,000 of expenditures over a five-year period including the 2003 sale, which the City is considering funding through the issuance of debt. A CIP is by its nature a planning tool and it is possible that new projects will be added that are not currently identified, and that some projects in the CIP will not be undertaken for various reasons. In fiscal year 1999, the City Council established a Reserve Fund for Capital Improvements to provide pay-as-you-go funding for capital improvement projects such as maintaining city facilities and inftastructure. Through fiscal year 2002 approximately $2.8 million in reserves has been funded with an estimated $550,000 to be added in fiscal year 2003. To date, funds for projects, estimated at a cost of almost $ I .545 million, have been allocated. Monies ftom the reserve are used to fund some of the less costly projects such as acquiring land, payment for architectural design service and other types of costs associated with some of the smaller projects. TABLE 12 - OTHER OBLIGATIONS The City has golf course lease-purchase agreements payable for various equipment purchases. Payments for the various leases are as follows: Fiscal Year 2002-2003 2003-2004 2004-2005 2005-2006 Principal $ 55,815 59,999 64,496 39,833 Interest $ 14,130 9,946 5,449 968 Total $ 69,945 69,945 69,945 40,801 PENSION FUND.. . The City provides pension benefits for all of its full-time employees through the Texas Municipal Retirement System ("TMRS"), a State-wide administered pension plan. The City makes annual contributions to the plan equal to the amounts accrued for pension expense. (For more detailed infonnation concerning the retirement plan, see Appendix B, "Excerpts ftom the City's Annual Financial Report".) 23 e e e TABLE 14 - MUNICIPAL SALES TAX HISTORY The City has adopted the Municipal Sales and Use Tax Act, VA TCS, Tax Code, Chapter 321, which grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the Bonds and Certificates. CoIlection and enforcement are effected through the offices of the ComptroIler of Public Accounts. State of Texas, who remits the proceeds of the tax. after deduction of a 2% service fee, to the City monthly. In August of 1992, the voters of the City approved the imposition of an additional sales and use tax of one-half of one percent (Y> of 1 %) for economic development. CoIlection for the additional tax went into effect on January I, 1993. The tax is coIlected solely for the benefit of North Richland Hills Park and Recreation Facilities Development Corporation (the "Corporation"), and may be pledged to secure payment of sales tax revenue bonds issued by the Corporation. In February of 1996, the voters approved the imposition of an additional sales and use tax of one-half of one percent (Y> of 1 %) for crime control and prevention. CoIlection for additional tax went into effect on July I, 1996. The tax is coIlected solely for the benefit of North Richland Hills Crime Control and Prevention District (the "District"), and may be pledged to secure payment for crime control and prevention programs for the District. A referendum for a ten-year continuation of the tax was approved by the voters of the District on May 5, 2001. At the conclusion of the ten-year continuation, if another referendum in not caIled, the District automatically sunsets and the sales tax levy ceases to be collected. The District established a reserve for transition and cash has been restricted to fully fund the reserve. Such cash reserves can be used to fund the crime control and prevention activities until an alternate funding source can be identified (i.e., during the transition period). Table 14, below, sets forth the amounts collected from the City's general 1% sales tax for the periods shown. Fiscal Year %of Equivalent of Ended Total Ad Valorem Ad Valorem Per 9/30 CoIlected Tax Levy Tax Rate Capita 1999 $ 7,778,899 69.77% $ 0.3965 $ 142 2000 8,406,904 69.11% 0.3936 151 2001 8,657,675 64.37% 0.3737 151 2002 8,199,566 55.61% 0.3155 140 2003 (1) 2,163,678 13.75% 0.0781 36 (I) CoIlections through March 1,2003. The sales tax breakdown for the City is as follows: Crime Control and Prevention District 0.50¢ Economic and Community Development 0.50¢ City Sales & Use Tax 1.00¢ State Sales & Use Tax 6.25t Total 8.25¢ As noted in "Table 14 - Municipal Sales Tax History," above, in comparison to the revenues produced by the City through the exercise of its ad valorem taxation powers, the City funds a large portion of its operating budget though the collection of sales taxes. Sales tax revenues typicaIly fluctuate in direct proportion to changes in general and local economic conditions, especiaIly when compared to changes in the ad valorem tax base. Sales tax revenues also tend to change more quickly than the value of property against which ad valorem taxes are levied in response to such economic changes. 25 INVESTMENTS e The City invests its investable funds in investments authorized by Texas law in accordance with investment policies approved by the City Council of the City. Both state law and the City's investment policies are subject to change. e LEGAL INVESTMENTS... Under Texas law, the City is authorized to invest in (I) obligations of the United States or its agencies and instrumentalities, (2) direct obligations of the State of Texas or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; (4) other obligation, the principal and interest of which is guaranteed or insured by or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities; (5) obligations of states, agencies. counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent; (6) bonds issued, assumed or guaranteed by the State of Israel; (7) certificates of deposit that are issued by a state or national bank domiciled in the State of Texas, a savings bank domiciled in the State of Texas, or a state or federal credit union domiciled in the State of Texas and are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in clauses (1) through (6) or in any other manner and amount provided by law for City deposits, (8) fully collateralized repurchase agreements that have a defined termination date, are fully secured by obligations described in clause (1), and are placed through a primary government securities dealer or a financial institution doing business in the State of Texas, (9) certain bankers' acceptances with the remaining term of270 days or less, if the short-term obligations of the accepting bank or its parent are rated at least A-lor P-I or the equivalent by at least one nationally recognized credit rating agency, (10) commercial paper with a stated maturity of270 days or less that is rated at least A-lor pol or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a U.S. or state bank, (11) no-load money market mutual funds registered with and regulated by the Securities and Exchange Commission that have a dollar weighted average stated maturity of 90 days or less and include in their investment objectives the maintenance of a stable net asset value of $1 for each share, and (12) no-load mutual funds registered with the Securities and Exchange Commission that have an average weighted maturity of less than two years, invest exclusively in obligations described in the this paragraph, and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent. Ifspecifically authorized in the authorizing document, bond (Certificate) proceeds may be invested in guaranteed investment contracts that have a defined termination date and are secured by obligations of the United States or its agencies and instrumentalities in an amount at least equal to the amount of bond proceeds invested under such contract, other than the prohibited obligations described in the next succeeding paragraph. The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided that the pools are rated no lower than AAA or AAAm or an equivalent by at least one nationally recognized rating service. The City may also contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds under its control for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or extend such a contract, the City must do so by order, ordinance, or resolution. The City is specificaIly prohibited from investing in: (1) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security and bears no interest; (3) collateralized mortgage obligations that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. INVESTMENT POLICIES. . . Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a list of authorized investments for City funds, maximum allowable stated maturity of any individual investment and the maximum average dollar-weighted maturity allowed for pooled fund groups. AIl City funds must be invested consistent with a formally adopted "Investment Strategy Statement" that specifically addresses each fund's investment. Each Investment Strategy Statement will describe its objectives concerning: (1) suitability of investment type, (2) preservation and safety of principal. (3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield. Under Texas law, City investments must be made "with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived." At least quarterly the investment officers of the City shall subnùt an inves1ment report detailing: (1) the inves1ment position of the City, (2) that all inves1ment officers jointly prepared and signed the report, (3) the beginning market value, any additions and changes to market value and the ending value of each pooled fund group, (4) the book value and market value of each separately listed asset at the beginning and end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or pooled fund group for which each individual inves1ment was acquired, and (7) the compliance of the investment portfolio as it relates to: (a) adopted investment strategy statements and (b) state law. No person may invest City funds without express written authority trom the City Council. e 27 TAX MATTERS e TAX EXEMPTION ... The delivery of the Bonds and Certificates is subject to the opinions of Bond Counsel to the effect that interest on such Obligations for federal income tax purposes (I) wi\l be excludable from gross income, as defined in section 61 ofthe Internal Revenue Code of 1986, as amended to the date of such opinions (the "Code"), pursuant to section 103 of the Code and existing regulations, published rulings, and court decisions, and (2) wi\l not be included in computing the alternative minimum taxable income of the owners thereof who are individuals or, except as hereinafter described, corporations. A fonn of Bond Counsel's opinions is reproduced as Appendix C. The statutes, regulations, rulings, and court decisions on which such opinion is based are subject to change. Interest on all tax-exempt obligations, including the Bonds and Certificates, owned by a corporation wi\l be included in such corporation's adjusted current earnings for tax years beginning after 1989, for purposes of calculating the alternative minimum taxable income of such corporation, other than an S corporation, a qualified mutual fund, a real estate investment trust, a real estate mortgage investment conduit, or a financial asset securitization investment trust (FASIT). A corporation's alternative minimum taxable income is the basis on which the alternative minimum tax imposed by Section 55 of the Code wi\l be computed. In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the City made in a certificate dated the date of delivery of the Bonds and Certificates pertaining to the use, expenditure, and investment of the proceeds of such Obligations and will assume continuing compliance by the City with the provisions of the Bond Ordinance and Certificate Ordinance subsequent to the issuance of the Bonds and Certificates. The respective Ordinances contain covenants by the City with respect to, among other matters, the use of the proceeds of the Obligations and the facilities financed therewith by persons other than state or local governmental units, the manner in which the proceeds ofthe Obligations are to be invested, and the reporting of certain infonnation to the United States Treasury. Failure to comply with any of these covenants would cause interest on the Obligations to be includable in the gross income of the owners thereof from date of the issuance of the Obligations. e Bond Counsel's opinion is not a guarantee of a result, but represents its legal judgment based upon its review of existing statutes, regulations, published rulings and court decisions and the representations and covenants of the Issuer described above. No ruling has been sought from the Internal Revenue Service (the "Service") with respect to the matters addressed in the opinion of Bond Counsel, and Bond Counsel's opinion is not binding on the Service. The Service has an ongoing program of auditing the tax- exempt status of the interest on municipal obligations. If an audit of the Obligations is commenced, under current procedures the Service is likely to treat the City as the "taxpayer," and the Holders would have no right to participate in the audit process. In responding to or defending an audit of the tax-exempt status of the interest on the Obligations, the City may have different or conflicting interests from the registered owners of the Obligations. Public awareness of any future audit of the Bonds or Certificates, as the case may be, could adversely affect the value and liquidity of the Obligations during the pendency of the audit, regardless of its ultimate outcome. Except as described above, Bond Courisel expresses no other opinion with respect to any other federal, state or local tax consequences under present law, or proposed legislation, resulting from the receipt or accrual of interest on, or the acquisition or disposition of, the Bonds or Certificates. Prospective purchasers of the Bonds and Certificates should be aware that the ownership of tax-exempt obligations may result in collateral federal tax consequences to, among others, financial institutions, life insurance companies, property and casualty insurance companies, certain foreign corporations doing business in the United States, S corporations with "subchapter C" earnings and profits, individual recipients of Social Security or Railroad Retirement benefits, individuals otherwise qualifying for the eamed income tax credit, owners of an interest in a F ASIT and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax-exempt obligations. Prospective purchasers should consult their own tax advisors as to the applicability of these consequences to their particular circumstances. TAX ACCOUNTING TREATMENT OF DISCOUNT AND PREMIUM ON CERTAIN OBLIGATIONS.. . The initial public offering price of certain Bonds and Certificates (the "Discount Obligations") may be less than the amount payable at their maturity. An amount equal to the difference between the initial public offering price of a Discount Obligation (assuming that a substantial amount of the Bonds or Certificates, as the case may be, of that maturity are sold to the public at such price) and the amount payable at maturity constitutes original issue discount to the initial purchaser of such Discount Obligation. A portion of such original issue discount allocable to the holding period of such Discount Obligation by the initial purchaser wi\l, upon the disposition of such Discount Obligation (including by reason of its payment at maturity), be treated as interest excludable from gross income, rather than as taxable gain, for federal income tax purposes, on the same terms and conditions as those for other interest on the Obligations described above under "TaX Exemption." Such interest is considered to be accrued actuarially in accordance with the constant interest method over the life of a Discount Obligation, taking into account the semiannual compounding of accrued interest, at the yield to maturity on such Discount Obligation and generally wi\l be allocated to an original purchaser in a different amount from the amount of the payment denominated as interest actually received by the original purchaser during the tax year. e 29 e LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS The Certificates. Section 251.051, Texas Local Government Code, provides that the Certificates are legal and authorized investments for banks, savings banks, trust companies, building and loan associations. savings and loan associations, insurance companies, fiduciaries, trustees and guardians, and for the sinking funds of municipalities, school districts, and other political subdivisions or public agencies of the State of Texas. The Certificates are eligible to secure deposits of any public funds of the state, municipalities, school districts, and other political subdivisions of the state, and are legal security for those deposits to the extent of their market value. The Bonds. Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Bonds are negotiable instruments governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized investments for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or public agencies of the State of Texas. In addition, various provisions of the Texas Finance Code provide that, subject to a prudence standard, the Bonds are legal investments for state banks, savings banks, trust companies with at least $1 million of capital, and savings and loan associations. General Considerations. For political subdivisions in Texas that have adopted investment policies and guidelines in accordance with the Public Funds Investment Act (V.T.C.A., Government Code, Chapter 2256), the Obligations may have to be assigned a rating of "A" or its equivalent as to investment quality by a national rating agency before such obligations are eligible investments for sinking funds and other public funds. The City has made no investigation of other laws, rules, regulations or investment criteria which might apply to such institutions or entities or which might limit the suitability of the Obligations for any of the foregoing purposes or limit the authority of such institutions or entities to purchase or invest in the Obligations for such purposes. The City has made no review of laws in other states to detennine whether the Obligations are legal investments for various institutions in those states. LEGAL MAITERS e The delivery of the Bonds and Certificates are subject to the approval of the Attorney General of Texas to the effect that such Obligations are valid and legally binding obligations of the City payable from sources and secured in the manner provided in the Bond Ordinance and the Certificate Ordinance and the approving legal opinion of Bond Counsel, to like effect and to the effect that the interest on such Obligations will be excludable from gross income for federal income tax purposes under Section 103(a) of the Code, subject to the matters described under "Tax Matters" herein, including the alternative minimum tax on corporations. The fonns of Bond Counsel's opinions are attached hereto in Appendix C. The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of the Obligations is contingent upon the sale and delivery of the Bonds and Certificates, as the case may be. The legal opinion of Bond Counsel will accompany the Bonds and Certificates deposited with DTC or will be printed on the definitive Obligations in the event of the discontinuance of the Book-Entry-Only System. Bond Counsel was engaged by, and only represents, the City. Except as noted below, Bond Counsel did not take part in the preparation of the Official Statement, and such finn has not assumed any respOlrsibility with respect thereto or undertaken independently to verify any of the infonnation contained herein except that in its capacity as Bond Counsel, such finn has reviewed the infonnation appearing under captions ''The Bonds and Certificates" (except under the subcaptions "Book Entry Only System" and Remedies"), "Tax Matters," "Continuing Disclosure Of Infonnation" (except under the subcaption "Compliance With Prior Undertakings"), and the subcaptions "Other Infonnation-Legal Matters" and "Other Infonnation-Iegal Investments And Eligibility To Secure Public Funds In Texas," and such finn is of the opinion that the infonnation relating to the Obligations and the legal matters contained under such captions and subcaptions is an accurate and fair description of the laws and legal issues addressed therein and, with respect to the Obligations, such infonnation confonns to the Ordinances. The various legal opinions to be delivered concurrently with the delivery of the Bonds and the Certificates express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not become an insurer or guarantor of the expression of professional judgment, of the transaction opined upon, or of the future perfonnance of the parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION The financial data and other infonnation contained herein have been obtained from City records, audited financial statements and other sources, which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further infonnation. Reference is made to original documents in all respects. e 31 e amount of the outstanding Bonds or Certificates, as the case may be, consent to the amendment or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) detennines that the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds or Certificates, as the case may be. The City may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provisions of the SEC Rule 15c2-12 or a court of final jurisdiction enters judgment that such provisions of the SEC Rule 15c2-12 are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Bonds or Certificates in the primary offering thereof. If the City so amends the agreement, it has agreed to include with the next financial infonnation and operating data provided in accordance with its agreement described above under "Annual Reports" an explanation, in narrative fonn, of the reasons for the amendment and of the impact of any change in the type of financial infonnation and operating data so provided. COMPLIANCE WITH PRIOR UNDERTAKINGS. . . The City has complied in all material respects with all continuing disclosure agreements made by it in accordance with SEC Rule 15c2-12. FINANCIAL ADVISOR First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Obligations. The Financial Advisor's fee for services rendered with respect to the sale of the Obligations is contingent upon the issuance and delivery of the Obligations. First Southwest Company may submit a bid for the Obligations, either independently or as a member of a syndicate organized to submit a bid for the Obligations. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the infonnation, covenants and representations contained in any of the legal documents with respect to the federal income tax status of the Obligations, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies. The Financial Advisor to the City has provided the following sentence for inclusion in this Official Statement. The Financial Advisor has reviewed the infonnation in this Official Statement in accordance with, and as part of, its responsibilities to the City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of such infonnation. INITIAL PURCHASER OF THE BONDS e After requesting competitive bids for the Bonds, the City accepted the bid of Citigroup Global Markets Inc. (the "Initial Purchaser") to purchase the Bonds at the interest rates shown on the cover page of the Official Statement at a price of par plus a cash premium of $401.65. The Initial Purchaser can give no assurance that any trading market will be developed for the Bonds after their sale by the City to the Initial Purchaser. The City has no control over the price at which the Bonds are subsequently sold and the initial yield at which the Bonds will be priced and reoffered will be established by and will be the responsibility of the Initial Purchaser. INITIAL PURCHASER OF THE CERTIFICATES After requesting competitive bids for the Certificates, the City accepted the bid of Southwest Securities, Inc. (the "Initial Purchaser") to purchase the Certificates at the interest rates shown on page 3 of the Official Statement at a price of par. The Initial Purchaser can give no assurance that any trading market will be developed for the Certificates after their sale by the City to the Initial Purchaser. The City has no control over the price at which the Certificates are subsequently sold and the initial yield at which the Certificates will be priced and reoffered will be established by and will be the responsibility of the Initial Purchaser. CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery ofthe Obligations, the City will furnish a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained in its Official Statement, and any addenda, supplement or amendment thereto. on the date of such Official Statement, on the date of sale of said Obligations and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data . have been obtained from sources which the City believes to be reliable and the City has no reason to believe that they are untrue in any material respect; and (d) there has been no material adverse change in the financial condition of the City since the date of the last audited financial statements of the City. e 33 e APPENDIX A GENERAL INFORMATION REGARDING THE CITY . e e . e · Major developments completed in 2002 are: United Pharmacare. a healthcare prescription administrator, leased 24,000 square feet at the Northstar I office building; Triad Financial occupied 71,000 square feet at Richland Pointe Business Center; and the City's second Super Wal-Mart was completed at 204,000 square feet. Kroger's Signature stores took 58,000 square feet fonnerly occupied by Minyard's grocery store and 48,000 square feet fonnerly occupied by Winn Dixie grocery store. The Crossing shopping center signed several new national tenants occupying approximately 15,000 square feet of space. Walgreen's built a 14,000 square foot pharmacy and drug store. Ashley's furniture leased 38,000 square feet at Richland Centre shopping center. LoneStar Antiques moved into 36,000 square feet fonnerly taken by Sears HomeLife. Approximately, 50,000 square feet fonnerly occupied by Service Merchandise was filled by a new business to NRH, Name Brand Clothing. The Wellington, a senior-living facility, was completed at 117,000 square feet. Richland Hills Church of Christ opened a 36,000 square foot teen conference center. Two public storage facilities were built at 121,000 square feet and 78,000 square feet. · Anticipated developments scheduled for the 2003 calendar year include a 174,000 square foot Super Target. Additionally, DICI, The Insurance Center, is expected to complete their second office building in the City at 128,000 square feet. DICl has also purchased an additional 18 acres for future expansion. Plans continue for a 30,000 square foot office building at HomeTown, a 287-acre master-planned, mixed-use Town Center development. Citizen's bank is building a 9,531 square foot retail center. Fort Worth Christian School is making 19,000 square feet of improvements to expand its cafeteria and build a new fine arts center. St. John's the Apostle Church is undergoing an expansion adding 12,900 square feet of classroom space and a computer lab. There are plans for a new apartment complex in the City called the Estates at NRH with 263 units. · This past year, some of the subdivisions completed were: Brandonwood II, Forest Glen East, Holiday Meadows, Richfield at the Parks, and Thombridge Phase V. At present, 730 lots are available or almost available for building new single family homes. Most of the lots are included in Fountain Ridge (168), Estates at NRH (114), HomeTown Phases I and II (195), and Glenwyck Villas (56). Available lot inventory should sustain the City for 2 Y2 years of building new single family homes. · New developments in 2002 and planned developments for 2003 are expected to add 2,350 new jobs in North Richland Hills from the following employers: Triad Financial 700; DICI 600; Super Wal-Mart 300, Super Target 300, Two Kroger's stores 300; and United Pharmacare 150. North Richland Hills' status as a "triple Freeport" City (Le., one with the Freeport exemption available through Tarrant County, the City, and the Birdville Independent School District on qualified in-transit inventories) is intended to attract manufacturers such as Tecnol and encourage their expansion. With approximately 20% - 25% of the City remaining undeveloped, North Richland Hills offers additional opportunities for commercial, industrial, and residential growth. Other factors contributing to the City's prosperity include: · A location near the center of nine of the ten largest business centers in Tarrant County. · Close proximity to new or expanding employers like Alliance Airport (9 miles), Burlington Northern's Corporate Headquarters (8 miles), Bell Helicopter (4 miles), Siecor Corporation (8 miles), AST Research (8 miles), and Haggar Manufacturing (6 miles). · The growth of existing manufacturers such as H&M Food Systems, Sealy Mattress Manufacturing, Bates Container, and Arabesque Fragrance Manufacturing. Residential platting activity continues to be strong, especially in the northern areas of the City and near the City's Iron Horse Golf Course. One of two courses with adjacent residential lots, Iron Horse attracted over 50,000 rounds of golfin 2002. MUNICIPAL SERVICES... With active involvement by the Mayor, a seven member City Council and 14 citizen boards, commissions and committees, the City strives to provide proper and effective representation. Low crime statistics are maintained by a police force consisting of 109 police officers. The City has four professionally staffed fire stations. Fully equipped to handle most emergencies, the City utilizes its own mobile intensive care ambulance system, staffed with highly-trained paramedics. QUALITY OF LIFE. . . Two privately owned and fully operational hospitals in the region offer City residents excellent health care. The City has a full service centIallibrary housing almost over 148,000 volumes with a circulation reaching nearly 672,000 annually. With over 720 acres of park land, the City offers such facilities as playgrounds, picnic areas, recreation center, a championship golf course. lighted tennis courts, football fields, softball and baseball fields, basketball courts, volleyball courts and two senior citizen centers. Families in the City are served by churches throughout the area representing many denominations. A-2 . . e MAJOR EMPLOYERS IN THE CITY Employer Birdville Independent School District UICI-The Insurance Center North Hills Hospital The City of North Richland Hills TCC - N.E. Campus· Kimberly Clark/Tecnol Division Wal-Mart KPR FoodstTyson Triad Financial Corporation Target Product School District LifelHealth Insurance Hospital/Medical Center Municipal Government Higher Education Medical Products Manufacturer Retail Sales Food Processing Automobile Financing Retail Sales Estimated Number of Employees 1,176 1,100 820 570 502 410 400 400 350 350 Source: North Central Texas Council of Governments, Local Media, City of North Richland Hills. · Split with Hurst BUILDING PERMIT INFORMATION Construction Commercial Fiscal Number Year of Units Value 1998 134 $ 80,576,845 1999 21 29,047,456 2000 66 54,733,881 2001 46 18,124,797 2002 43 34,989,928 Source: City Records. Residential Number of Units Value 345 299 351 348 277 $ 35,665,625 47,601,097 45,817,144 53,605,960 40,133,683 Total Total Units Value 479 $ 116,242,470 320 76,648,553 417 100,551,025 394 71,730,757 320 75,123,611 A-4 . APPENDIX B EXCERPTS FROM THE CITY OF NORTH RICHLAND HilLS, TEXAS ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2002 The information contained in this Appendix consists of excerpts from the City of North Richland Hills, Texas Annual Financial Report for the Year Ended September 30, 2002, and is not intended to be a complete statement of the City's financial condition. Reference is made to the complete Report for further infonnation. . e . APPENDIX C FORM OF BOND COUNSEL'S OPINIONS . e . APPENDIX D SPECIMEN XL CAPITAL ASSURANCE INC. MUNICIPAL BOND INSURANCE POLICY . e . APPENDIX E SPECIMEN MBIA INSURANCE CORPORATION MUNICIPAL BOND INSURANCE POLICY .' . · , . CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 4/28/2003 Subject: Consideration of Action on all Matters PertaininQ to the Agenda Number: GN 2003-055 Award and Sale of $3,700,000 in Tax and Waterworks and Sewer System Revenue Certificates of Obligation, Series 2003 and Approve Ordinance No. 2703 Competitive bids will be received on Monday, April 28, 2003 for the sale of $3,700,000 in Tax and Waterworks and Sewer System Revenue Certificates of Obligation for the multi- level Interactive Complex at NRH20 and the remaining land acquisition and design of the library in the Hometown area. Rating conferences with Standard and Poor's and Moody's were held recently. The City received Certificates of Obligation ratings from both Moody's Investors Service and Standard and Poor's. Moody's reaffirmed the Aa3 rating, and Standard and Poor's reaffirmed the AA- rating. Bids on the Tax and Waterworks and Sewer System Revenue Certificates of Obligation will be evaluated by First Southwest, the Director of Finance and Managing Director of Administrative/Fiscal Services and will be submitted to City Council at the regular meeting on April 28th. Upon acceptance of the best bid, it will be necessary for City Council to award the bid and to approve the ordinance as prepared by our bond counsel, Fulbright and Jaworski. The enclosed ordinance is for your consideration to be passed on Monday, April 28th. This ordinance also authorizes all the other necessary actions such as paying agent/registrar agreements. Attached is a list of the items included in this sale. Recommendation: Request the City Council to transact the following business in relation to the sale and issuance of Certificates of Obligation: I move to accept the bid of for the purchase of $3,700,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2003" at a true interest cost of _ % and adopt Ordinance 2703 authorizing the issuance of such Certificates of Obligation. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other W ~rtL~ure Account Number Sufficient Funds Available ~ I~ F;",nœ D;rector ~~~ÇJ C Manager Si natu Page 1 of _ · SUMMARY 2003 DEBT ISSUES Summary 2003 General Obligation Bonds Street Improvement Projects Map Project # 1994 Bond Election - Streets: 1 Rufe Snow Drive (Glenview to Karen) $ 920,000 2 Rufe Snow (Mid-Cities to Hightower) 460,000 Subtotal 1994 Election G.O. Street Projects 1,380,000 2003 Bond Election - Streets: 3 Glenview Drive (Flory to Honey Lane) 200,000 4 Lola Drive (Scott Drive to Davis Blvd.) 100,000 5 Galway Lane (Emerald Hills to Park Entrance) 30,000 6 Flory Street (Manor Drive to Glenview Drive) 40,000 Subtotal 2003 Election G.O. Street Projects 370,000 Total G.O. Street Projects $ 1,750,000 · Drainage Improvement Projects 7 Holiday West Channel (2003 G.O.s) $ 100,000 Facility Improvement Projects 8 Fire Facility Upgrades (2003 G.O.s) $ 900,000 Total G.O.Bond Sale $ 2,750,000 Summary 2003 Certificates of Obligation 9 Multi-level Interactive Complex NRH20 Total C.O. Sale $ 2,250,000 1,450,000 $ 3,700,000 $ 6,450,000 10 Home~wnNRHLibæry · TOTAL G.O. AND C.O. SALE . . . ORDINANCE NO. 2703 AN ORDINANCE authorizing the issuance of "CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2003"; specifying the terms and features of said certificates; providing for the payment of said certificates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a pledge of the net revenues from the operation of the City's Waterworks and Sewer System; and resolving other matters incident and relating to the issuance, payment, security, sale and delivery of said Certificates, including the approval and execution of a Paying AgenURegistrar Agreement and the approval and distribution of an Official Statement; and providing an effective date. WHEREAS, notice of the City Council's intention to issue certificates of obligation in the maximum principal amount of $3,700,000 for the purpose of paying contractual obligations to be incurred for (i) a new library facility to be located in Hometown NRH, including the purchase of land and for architectural services, (ii) park improvements, to wit: constructing a multilevel interactive complex attraction at NRH20, and (iii) professional services rendered in relation to such projects and the financing thereof; has been duly published in the Fort Worth Star Telegram, a newspaper hereby found and determined to be of general circulation in the City of North Richland Hills, Texas, on April 1, 2003 and April 8, 2003, the date the first publication of such notice being not less than fifteen (15) days prior to the tentative date stated therein for the passage of the ordinance authorizing the issuance of such certificates; and WHEREAS, no petition protesting the issuance of the certificates of obligation and bearing valid petition signatures of at least 5% of the qualified electors of the City, has been presented to or filed with the Mayor, City Secretary or any other official of the City on or prior to the date of the passage of this Ordinance; and WHEREAS, the Council hereby finds and determines that the certificates of obligation described in the aforesaid notice should be issued and sold at this time in the amount and manner as hereinafter provided; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1: Authorization. Desionation. Principal Amount. Purpose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $3,700,000, to be designated and bear the title "CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2003" (hereinafter referred to as the "Certificates"), for the purpose of paying contractual obligations to be incurred for (i) a new library facility to be located in Hometown NRH, including the purchase of land and for architectural services, (ii) park improvements, to wit: constructing a multilevel interactive complex attraction at NRH20, and (iii) professional services rendered in relation to such projects and the financing thereof; pursuant to authority conferred by and in conformity with the Constitution and laws of the State of Texas, including V.T.C.A., Local Government Code, Subchapter C of Chapter 271, as amended. SECTION 2: Fullv Reaistered Obliaations - Authorized Denominations-Stated Maturities-Date. The Certificates are issuable in fully registered form only; shall be dated April 15, 2003 (the "Certificate Date") and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity) and the Certificates shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest at the per annum rate(s) in accordance with the following schedule: Year of Principal Interest Stated Maturitv Amount Rate( s) 2004 $135,000 % 2005 160,000 % 2006 160,000 % 2007 160,000 % 2008 165,000 % 2009 165,000 % 2010 170,000 % 2011 175,000 % 2012 175,000 % 2013 180,000 % 2014 190,000 % 2015 190,000 % 2016 195,000 % 2017 200,000 % 2018 205,000 % 2019 205,000 % 2020 210,000 % 2021 215,000 % 2022 220,000 % 2023 225,000 % The Certificates shall bear interest on the unpaid principal amounts from the Certificate Date at the rate per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months), and such interest shall be payable on February 15 and August 15 of each year, commencing February 15, 2004. SECTION 3: Terms of Pavment-Pavina Aaent/Reaistrar. The principal of, premium, if any, and the interest on the Certificates, due and payable by reason of maturity, redemption, or otherwise, shall be payable only to the registered owners or holders of the Certificates (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. Ordinance No. 2703 2 . . . The selection and appointment of Bank One National Association to serve as Paying Agent/Registrar for the Certificates is hereby approved and confirmed. Books and records relating to the registration, payment, transfer and exchange of the Certificates (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agent/Registrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery of the Certificates. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Certificates are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Certificates shall be payable at the Stated Maturities or the redemption thereof only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its designated offices in Columbus, Ohio (the "Designated PaymentlTransfer Office"). Interest on the Certificates shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Designated PaymentlTransfer 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 from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Certificates having Stated Maturities on and after February 15, 2014 shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2013, or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. Ordinance No. 2703 3 At least forty-five (45) days prior to a redemption date for the Certificates (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Certificates, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Certificates shall be entered in the minutes of the governing body of the City. (b) Mandatorv Redemption. The Certificates having Stated Maturities of February 15, 20 and February 15, 20 (the "Term Certificates") shall be subject to mandatory redemption in part prior to maturity at the redemption price of par and accrued interest to the date of redemption on the respective dates and in principal amounts as follows: Term Certificates due February 15, 20 Redemption Date Principal Amount Term Certificates due February 15, 20 Redemption Date Principal Amount February 15, 20 February 15, 20 . $,000 $,000 February 15, 20 February 15, 20 $,000 $,000 Approximately forty-five (45) days prior to each mandatory redemption date for the Term Certificates, the Paying Agent/Registrar shall select by lot the numbers of the Term Certificates within the applicable Stated Maturity to be redeemed on the next following February 15 from moneys set aside for that purpose in the Certificate Fund (as hereinafter defined). Any Term Certificate not selected for prior redemption shall be paid on the date of their Stated Maturity. The principal amount of the Term Certificates for a Stated Maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the City, by the principal amount of Term Certificates of like Stated Maturity which, at least 50 days prior to the mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions set forth in paragraph(a) of this Section and not theretofore credited against a mandatory redemption requirement. (c )Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/ Registrar shall treat such Certificates as representing the number of Certificates Outstanding which is obtained by dividing the principal amount of such Certificates by $5,000 and shall select the Certificates to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Certificate to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, Ordinance No. 2703 4 . . . (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, provided moneys sufficient for the payment of such Certificate (or the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the Designated PaymentlTransfer Office of the Paying Agent/Registrar only upon presentation and surrender of the Certificates. If a Certificate is subject by its terms to prior redemption and has been called for redemption and notice of redemption has been duly given as hereinabove provided, such Certificate (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor. SECTION 5: Reoistration Transfer - Exchanoe of Certificates-Predecessor Certificates. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Certificates issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Certificate may be transferred or exchanged for Certificates of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Certificate (other than the Initial Certificate(s) authorized in Section 8 hereof) for transfer at the Designated PaymentlTransfer Office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certificates of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates (other than the Initial Certificate(s) authorized in Section 8 hereof) may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Certificates surrendered for exchange, upon surrender of the Certificates to be exchanged at the Designated PaymentlTransfer Office of the Paying Agent/ Registrar. Whenever any Certificates are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Certificates to the Holder requesting the exchange. All Certificates issued in any transfer or exchange of Certificates shall be delivered to the Holders at the Designated PaymentlTransfer Office of the Paying Agent/Registrar or sent by United States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered in such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or Ordinance No. 2703 5 exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Certificates," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Certificates" shall include any mutilated, lost, destroyed, or stolen Certificate for which a replacement Certificate has been issued, registered and delivered in lieu thereof pursuant to the provisions of Section 20 hereof and such new replacement Certificate shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. Neither the City nor the Paying Agent/ Registrar shall be required to issue or transfer to an assignee of a Holder any Certificate called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Certificate; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate called for redemption in part. SECTION 6: Book-Entry Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Certificates, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system provided by The Depository Trust Company (DTC), a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representations by and between the City and DTC (the "Depository Ag reement"). Pursuant to the Depository Agreement and the rules of DTC, the Certificates shall be deposited with DTC who shall hold said Certificates for its participants (the "DTC Participants"). While the Certificates are held by DTC under the Depository Agreement, the Holder of the Certificates on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Certificate (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Certificates or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Certificates, the City covenants and agrees with the Holders of the Certificates to cause Certificates to be printed in definitive form and issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Certificates in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Certificates shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution - Reaistration. The Certificates shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who are or were the proper Ordinance No. 2703 6 . . . officers of the City on the Certificate Date shall be deemed to be duly executed on behalf of the City, notwithstanding that one or more of the individuals executing the same shall cease to be such officer at the time of delivery of the Certificates to the initial purchaser{s) and with respect to Certificates delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 1201. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially in the form provided in Section 9C, manually executed by the Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9D, manually executed by an authorized officer, employee or representative of the Paying AgenURegistrar, and either such certificate duly signed upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified, registered and delivered. SECTION 8: Initial Certificate(s). The Certificates herein authorized shall be initially issued either (i) as a single fully registered certificate in the total principal amount of $3,700,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered certificates, being one certificate for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Certificate{s)") and, in either case, the Initial Certificate{s) shall be registered in the name of the initial purchaser{s) or the designee thereof. The Initial Certificate(s) shall be the Certificates submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser{s). Any time after the delivery of the Initial Certificate{s), the Paying AgenURegistrar, pursuant to written instructions from the initial purchaser{s), or the designee thereof, shall cancel the Initial Certificate{s) delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser{s), or the designee thereof, and such other information and documentation as the Paying AgenURegistrar may reasonably require. SECTION 9: Forms. A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying AgenURegistrar, and the form of Assignment to be printed on each of the Certificates, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Certificates, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Certificates as evidenced by their execution. Any portion of the text of any Certificates may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the certificate. Ordinance No. 2703 7 The definitive Certificates and the Initial Certificate(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Certificates as evidenced by their execution. B. Form of Certificates. REGISTERED NO._ REGISTERED $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM SURPLUS REVENUE CERTIFICATE OF OBLIGATION, SERIES 2003 Certificate Date: April 15, 2003 Interest Rate: Stated Maturity: CUSIP NO: Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Certificate 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, 2004. Principal of this Certificate is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated PaymentlTransfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor; provided, however, while this Certificate is registered to Cede & Co., the payment of principal upon a partial redemption of the principal amount hereof may be accomplished without presentation and surrender of this Certificate. Interest is payable to the registered owner of this Certificate (or one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Certificate shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United Ordinance No. 2703 8 . States of America which at the time of payment is legal tender for the payment of public and private debts. This Certificate is one of the series specified in its title issued in the aggregate principal amount of $3,700,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations to be incurred for (i) a new library facility to be located in Hometown NRH, including the purchase of land and for architectural services, (ii) park improvements, to wit: constructing a multilevel interactive complex attraction at NRH20, and (iii) professional services rendered in relation to such projects and the financing thereof; under and in strict conformity with the Constitution and laws of the State of Texas, particularly V.T.C.A., Local Government Code, Subchapter C of Chapter 271, as amended, and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). The Certificates maturing on dates hereinafter identified (the "Term Certificates") are subject to mandatory redemption prior to maturity with funds on deposit in the Certificate Fund established and maintained for the payment thereof in the Ordinance, and shall be redeemed in part prior to maturity at the price of par and accrued interest thereon to the mandatory redemption date on the respective dates and in principal amounts as follows: Term Certificates due February 15, 20 Redemption Date Principal Amount Term Certificates due February 15, 20 Redemption Date Principal Amount February 15, 20 February 15, 20 $,000 $,000 February 15, 20 February 15, 20 $,000 $,000 . The particular Term Certificates of a stated maturity to be redeemed on each redemption date shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal amount of Term Certificates for a stated maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the City, by the principal amount of Term Certificates of like stated maturity which, at least 50 days prior to the mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement. The Certificates maturing on and after February 15, 2014, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2013, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. At least thirty days prior to a redemption date, the City shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Certificate to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Certificate (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon the redemption date such Certificate (or the portion of its principal sum to be redeemed) shall become due and payable, and, if moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the . Ordinance No. 2703 9 date of redemption are held for the purpose of such payment by the Paying AgenURegistrar, interest shall cease to accrue and be payable from and after the redemption date on the principal amount redeemed. In the event a portion of the principal amount of a Certificate is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Certificate to the Designated PaymenUTransfer Office of the Paying AgenURegistrar, and a new Certificate or Certificates of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Certificate is selected for redemption, in whole or in part, the City and the Paying AgenURegistrar shall not be required to transfer such Certificate to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Certificate redeemed in part. The Certificates are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City, and, together with the Previously Issued Obligations (identified and defined in the Ordinance), are additionally payable from and secured by a lien on and pledge of the Net Revenues (as defined in the Ordinance) of the City's combined Waterworks and Sewer System (the "System"), such lien and pledge, however, being junior and subordinate to the lien on and pledge of such Net Revenues securing the payment of the "Prior Lien Obligations" (identified and defined in the Ordinance) now outstanding and hereafter issued by the City. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations without limitation as to principal amount but subject to any applicable terms, conditions or restrictions under law or otherwise. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated PaymenUTransfer Office of the Paying AgenURegistrar, and to all the provisions of which the owner or holder of this Certificate by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificates; the nature and extent of the pledge of the Net Revenues securing the payment of the Certificates; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying AgenURegistrar; the terms and provisions upon which the tax levy and the pledge of the Net Revenues and covenants made in the Ordinance may be discharged at or prior to the maturity of this Certificate, and this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated PaymenUTransfer Office of the Paying AgenURegistrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying AgenURegistrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying AgenURegistrar to the designated transferee or transferees. Ordinance No. 2703 10 . . . The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Certificate as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (Hi) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the addres~ of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Certificates as aforestated. In case any provision in this Certificate shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate 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 Certificate to be duly executed under the official seal of the City as of the Certificate Date. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor COUNTERSIGNED: City Secretary (SEAL) Ordinance No. 2703 11 C. *Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Certificate(s) only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) ) OF PUBLIC ACCOUNTS ) ) THE STATE OF TEXAS ) REGISTER NO. I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do not print on definitive Certificates D. Form of Certificate of Paying AgenURegistrar to appear on Definitive Certificates only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued and registered under the provisions of the within-mentioned Ordinance; the certificate or certificates of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying AgenURegistrar. The designated offices of the Paying AgenURegistrar located in Columbus, Ohio, is the "Designated PaymenUTransfer Office" for this Certificate. BANK ONE NATIONAL ASSOCIATION, as Paying AgenURegistrar Registration Date: By Authorized Signature Ordinance No. 2703 12 . . . E. Form of Assianment. 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 Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular. Signature guaranteed: F. The Initial Certificate(s) shall be in the form set forth in paraaraph B of this Section, except that the form of a sinale fullv reaistered Initial Certificate shall be modified as follows: (i) immediately under the name of the certificate the headings "Interest Rate _" and "Stated Maturity " shall both be omitted; (ii) paragraph one shall read as follows: Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: YEAR PRINCIPAL INSTALLMENTS INTEREST RATE (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid principal amounts hereof from the Certificate Date at the per annum rate(s) of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such Ordinance No. 2703 13 interest being payable on February 15 and August 15 of each year, commencing February 15, 2004. Principal installments of this Certificate are payable at its Stated Maturity or on a prepayment date to the registered owner hereof by Bank One National Association (the "Paying Agent/Registrar"), upon presentation and surrender, at its designated offices in Columbus, Ohio (the "Designated PaymentlTransfer Office"). Interest is payable to the registered owner of this Certificate whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date hereof and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/ Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Certificate shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10: Definitions. For purposes of this Ordinance and for clarity with respect to the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of Net Revenues therefor, the following words or terms, whenever the same appears herein without qualifying language, are defined to mean as follows: (a) The term "Additional Obligations" shall mean tax and revenue obligations hereafter issued which by their terms are payable from ad valorem taxes and additionally payable from and secured by a parity lien on and pledge of the Net Revenues of the System of equal rank and dignity with the lien and pledge securing the payment of the Previously Issued Obligations and the Certificates. (b) The term "Certificates" shall mean the $3,700,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003" authorized by this Ordinance. (c) The term "Certificate Fund" shall mean the special Fund created and established under the provisions of Section 11 of this Ordinance. (d) The term "Collection Date" shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. (e) The term "Fiscal Year" shall mean shall mean the twelve month operating period for the System ending September 30th of each year. (f) The term "Government Securities" shall mean (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the City are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that Ordinance No. 2703 14 . have been refunded and on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. (g) The term "Net Revenues" shall mean and include the gross revenues derived from the operation of the System, less reasonable expenses of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to maintain the operations and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the security of obligations payable from and secured by a lien on and pledge of the Net Revenues of the System shall be deducted in determining "Net Revenues". (h) The term "Outstanding" when used in this Ordinance with respect to Certificates means, as of the date of determination, all Certificates theretofore issued and delivered under this Ordinance, except: (1 ) those Certificates cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; . (2) those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 21 hereof; and (3) those Certificates that have been mutilated, destroyed, lost, or stolen and replacement Certificates have been registered and delivered in lieu thereof as provided in Section 20 hereof. (i) The term "Previously Issued Obligations" shall mean the outstanding (1) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2001", dated April 15, 2001, originally issued in the principal amount of $3,255,000, and (2) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2002", dated April 15, 2002, originally issued in the principal amount of $6,745,000. (j) The term "Prior Lien Obligations" shall mean (A) all revenue bonds or other obligations, now outstanding and hereafter issued, payable from and secured by a lien on and pledge of the Net Revenues of the System, including, but not limited to, the outstanding and unpaid "City of North Richland Hills, Texas, Waterworks and Sewer System Revenue Refunding Bonds, Series 1996", dated December 1, 1996; and issued in the original principal amount of $5,135,000; . (B) obligations now outstanding and hereafter issued which by the terms of this Ordinance and the ordinances authorizing their issuance have a prior right and claim on the Net Revenues of the System to the claim and right securing the payment of the Certificates, including, but not limited to, the outstanding: Ordinance No. 2703 15 (1) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1997", dated April 15, 1997, and issued in the original principal amount of $2,755,000; (2) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1998", dated May 1, 1998, and issued in the original principal amount of $8,180,000; (3) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1999", dated April 15, 1999, and issued in the original principal amount of $3,560,000; and (4) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000", dated May 1, 2000, and issued in the original principal amount of $2,315,000. (k) The term "System" shall mean the City's combined Waterworks and Sanitary Sewer System, including all present and future additions, extensions, replacements and improvements thereto, whether situated within or without the corporate limits of the City. SECTION 11: Certificate Fund. For the purpose of paying the interest on and to provide a sinking fund for the payment, redemption and retirement of the Certificates, there shall be and is hereby created a special account or fund on the books and records of the City known as the "SPECIAL SERIES 2003 TAX AND REVENUE CERTIFICATE OF OBLIGATION FUND", and all moneys deposited to the credit of such Fund shall be shall be kept and maintained in a special banking account at the City's depository bank. Authorized officials of the City are hereby authorized and directed to make withdrawals from said Fund sufficient to pay the principal of and interest on the Certificates as the same become due and payable, and, shall cause to be transferred to the Paying Agent/Registrar from moneys on deposit in the Certificate Fund an amount sufficient to pay the amount of principal and/or interest falling due on the Certificates, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar on or before the last business day next preceding each interest and principal payment date for the Certificates. Pending the transfer of funds to the Paying Agent/Registrar, money in the Certificate Fund may, at the option of the City, be invested in obligations identified in, and in accordance with the provisions of the "Public Funds Investment Act" (V.T.C.A., Government Code, Chapter 2256) relating to the investment of "bond proceeds"; provided that all such investments shall be made in such a manner that the money required to be expended from said Fund will be available at the proper time or times. All interest and income derived from deposits and investments in said Certificate Fund shall be credited to, and any losses debited to, the said Certificate Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. Ordinance No. 2703 16 . . . SECTION 12: Tax Levv. To provide for the payment of the "Debt Service Requirements" on the Certificates being (i) the interest on said Certificates and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied a sufficient tax, within the limitations prescribed by law, on each one hundred dollars' valuation of taxable property in said City, adequate to pay such Debt Service Requirements while the Certificates remain Outstanding, full allowance being made for delinquencies and costs of collection; and said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on. the Certificates shall be determined and accomplished in the following manner: (a) Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the Council shall determine: (1) The amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Net Revenues of the System appropriated and allocated to pay such Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be levied. (2) The amount of Net Revenues of the System, appropriated and to be set aside for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (3) The amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (b) The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (3) above less the sum total of the amounts established in paragraphs (1) and (2), after taking into consideration delinquencies and costs of collecting such annual taxes. Ordinance No. 2703 17 SECTION 13: Pledae of Net Revenues. The City hereby covenants and agrees that, subject to the prior lien on and pledge of the Net Revenues of the System to the payment and security of Prior Lien Obligations, all the Net Revenues of the System, with the exception of those in excess of the amounts required to be deposited to the Certificate Fund as hereafter provided, are hereby irrevocably pledged, equally and ratably, to the payment of the principal of and interest on the Previously Issued Obligations, the Certificates and Additional Obligations, if issued, and the pledge of Net Revenues of the System herein made for the payment of the Certificates shall constitute a lien on the Net Revenues of the System in accordance with the terms and provisions hereof and be valid and binding and fully perfected from and after the date of adoption of this Ordinance without physical delivery or transfer or transfer of control of the Net Revenues, the filing of this Ordinance or any other act; all as provided in Chapter 1208 of the Texas Government Code. Section 1208, Government Code, applies to the issuance of the Certificates and the pledge of the Net Revenues of the System granted by the City under this Section 13, and such pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the Certificates are Outstanding such that the pledge of the Net Revenues of the System granted by the City under this Section 13 is to be subject to the filing requirements of Chapter 9, Business & Commerce Code, then in order to preserve to the registered owners of the Certificates the perfection of the security interest in said pledge, the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. SECTION 14: System Fund. The City covenants and agrees that all Gross Revenues (excluding earnings from the investment of money held in any special funds or accounts created for the payment and security of the Prior Lien Obligations) shall be deposited as collected into a fund maintained at an official depository of the City and known on the books of the City as the "System Fund" (hereinafter called the "System Fund"). All moneys deposited to the credit of the System Fund shall be allocated, dedicated and disbursed to the extent required for the following purposes and in the order of priority shown, to wit: First: To the payment of all necessary and reasonable maintenance and operating expenses of the System as defined herein or required by statute to be a first charge on and claim against the revenues thereof. Second: To the payment of all amounts required to be deposited in the special Funds created and established for the payment, security and benefit of Prior Lien Obligations in accordance with the terms and provisions of the ordinances authorizing the issuance of Prior Lien Obligations. Third: To the payment, equally and ratably, of the Previously Issued Obligations, the Certificates and Additional Obligations. Any Net Revenues remaining in the System Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law. SECTION 15: Deposits to Certificate Fund. The City hereby covenants and agrees to cause to be deposited to the credit of the Certificate Fund prior to each principal and interest Ordinance No. 2703 18 . payment date for the Certificates from the pledged Net Revenues of the System in the System Fund, after the deduction of all payments required to be made to the special Funds or accounts created for the payment and security of the Prior Lien Obligations, an amount equal to one hundred per centum (100%) of the amount required to fully pay the interest and principal payments then due and payable on the Certificates, such deposits to pay accrued interest and maturing principal on the Certificates to be made in substantially equal monthly installments on or before the 1 st day of each month beginning on or before the 1 st day of the month following the date of delivery of the Certificates to the purchasers. The monthly deposits to the Certificate Fund, as hereinabove provided, shall be made until such time as such Fund contains an amount equal to pay the principal of and interest on the Certificates to maturity. Accrued interest received from the purchasers of the Certificates deposited to the Certificate Fund and ad valorem taxes levied, collected and deposited in the Certificate Fund for and on behalf of the Certificates may be taken into consideration and reduce the amount of the monthly deposits otherwise required to be deposited in the Certificate Fund from the Net Revenues of the System. In addition, any proceeds of sale of the Certificates in excess of the amount required to pay the contractual obligations to be incurred (including change orders to a construction contract) shall be deposited in the Certificate Fund, which amount shall reduce the sums otherwise required to be deposited in said Fund from ad valorem taxes and the Net Revenues of the System. SECTION 16: Security of Funds. All moneys on deposit in the Funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and moneys on deposit in such Funds shall be used only for the . purposes permitted by this Ordinance. SECTION 17: Special Covenants. The City hereby further covenants as follows: (a) It has the lawful power to pledge the Net Revenues of the System to the payment of the Certificates in the manner herein contemplated and has lawfully exercised such power under the Constitution and laws of the State of Texas, including said power existing under V.T.C.A, Government Code, Sections 1502.056 and 1502.058 and V.T.C.A., Local Government Code, Sections 271.041, et seq. (b) Other than for the payment of the Prior Lien Obligations, the Previously Issued Obligations, and the Certificates, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System. SECTION 18: Issuance of Prior Lien Obliaations/Additional Obliaations. The City hereby expressly reserves the right to hereafter issue Prior Lien Obligations, without limitation as to principal amount but subject to any terms, conditions or restrictions applicable thereto under law or otherwise, payable, in whole or in part, from the Net Revenues (without impairment of the obligation of contract with the Holders of the Certificates) upon such terms and conditions as the City Council may determine. Additionally, the City reserves the right to issue obligations payable, in whole or in part, from the Net Revenues of the System and, to the extent provided, secured by a lien on and pledge of the Net Revenues of equal rank and dignity with the lien and pledge securing the payment of the Previously Issued Obligations and the Certificates. . Ordinance No. 2703 19 SECTION 19: Application of Prior Lien Obliaations Covenants and Aareements. It is the intention of this governing body and accordingly hereby recognized and stipulated that the provisions, agreements and covenants contained herein bearing upon the management and operations of the System, and the administering and application of revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements and covenants contained in the ordinances authorizing the issuance of the Prior Lien Obligations, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of the Prior Lien Obligations, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance but in all respects subject to the priority of rights and benefits, if any, conferred thereby to the holders of the Prior Lien Obligations. SECTION 20: Mutilated - Destroved - Lost and Stolen Certificates. In case any Certificate shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Certificate of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Certificate, or in lieu of and in substitution for such destroyed, lost or stolen Certificate, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Certificate, 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 Certificate shall be borne by the Holder of the Certificate mutilated, or destroyed, lost or stolen. Every replacement Certificate 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 Certificates; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Certificates. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Certificates. SECTION 21: Satisfaction of Obliaation of City. If the City shall payor cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and the Net Revenues of the System and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Certificates or the principal amount(s) thereof at maturity or the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Certificates, or Ordinance No. 2703 20 . . . the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying AgenU Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying AgenU Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying AgenURegistrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying AgenURegistrar for the payment of the principal of and interest on the Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Certificates such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying AgenURegistrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. SECTION 22: Ordinance a Contract -Amendments. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Certificates then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Certificates, reduce the principal amount thereof, the redemption price, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required to be held by Holders for consent to any such amendment, addition, or rescission. SECTION 23: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section, the following terms have the following meanings: "Closing Date" means the date on which the Certificates are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1 (b) of the Regulations. Ordinance No. 2703 21 "Gross Proceeds" means any proceeds as defined in Section 1.148-1 (b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Certificates. "Investment" has the meaning set forth in Section 1.148-1 (b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and which is not acquired to carry out the governmental purposes of the Certificates. "Rebate Amount" has the meaning set forth in Section 1.148-1 (b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Certificates. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Certificates has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Certificate to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Certificate, the City shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Certificates: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who Ordinance No. 2703 22 . is treated as using Gross Proceeds of the Certificates or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Hiaher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Certificates. . (f) Not Federallv 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 Certificates to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of ArbitraQe Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. . Ordinance No. 2703 23 (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Certificates until six years after the final Computation Date. (3) As additional consideration for the purchase of the Certificates by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Interest and Sinking Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Certificates equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (i) Not to Divert ArbitraQe Profits. 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 earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection (h) of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Certificates not been relevant to either party. U) Elections. The City hereby directs and authorizes the Mayor, City Manager, or Director of Finance, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. SECTION 24: Sale of Certificates. Pursuant to a public sale for the Certificates, the bid submitted by (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Certificates to said Purchasers at the price of par and accrued interest to the date Ordinance No. 2703 24 . . . of delivery, plus a premium of $ , is hereby approved and confirmed. Delivery of the Certificates to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. Ordinance No. 2703 25 SECTION 25: Official Statement Approval. The use of the Official Statement by the Purchasers in connection with the public offering and sale of the Certificates is hereby ratified, confirmed and approved in all respects. The final Official Statement, which reflects the terms of sale, (together with such changes approved by the Mayor, City Manager, Director of Finance, or City Secretary, one or both of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated April 28, 2003, in the reoffering, sale and delivery of the Certificates to the public. SECTION 26: Proceeds of Sale. The proceeds of sale of the Certificates, excluding the accrued interest and premium, if any, received from the Purchasers, shall be deposited in a construction fund maintained at the City's depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments in accordance with the provisions of V.T.C.A., Government Code, Chapter 2256, including guaranteed investment contracts permitted by V.T.C.A., Section 2256.015 et seq., and the City's investment policies and guidelines, and any investment earnings realized may be expended for such authorized projects and purposes or deposited in the Certificate Fund as shall be determined by the City Council. Accrued interest and premium, if any, as well as all surplus proceeds of sale of the Certificates, including investment earnings, remaining after completion of all authorized projects or purposes shall be deposited to the credit of the Certificate Fund. SECTION 27: Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending the sale of the Certificates, the investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Certificates, and shall take and have charge and control of the Initial Certificate(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Manager, Director of Finance, and City Secretary, anyone or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Certificates, including a certification as to facts, estimates, circumstances and reasonable expectations pertaining to the use and expenditure and investment of the proceeds of the Certificates as may be necessary for the approval of the Attorney General and their registration by the Comptroller of Public Accounts. In addition, such officials, together with the City's financial advisor, bond counsel and the Paying AgenURegistrar, are authorized and directed to make the necessary arrangements for the delivery of the Initial Certificate(s) to the Purchasers and the initial exchange thereof for definitive Certificates. SECTION 28: Notices to Holders-Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Certificates. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such Ordinance No. 2703 26 . waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying AgenURegistrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 29: Cancellation. All Certificates surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying AgenURegistrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying AgenURegistrar and, if not already cancelled, shall be promptly cancelled by the Paying AgenURegistrar. The City may at any time deliver to the Paying AgenURegistrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly cancelled by the Paying AgenURegistrar. All cancelled Certificates held by the Paying AgenURegistrar shall be returned to the City. SECTION 30: Bond Counsel's Opinion. The Purchasers' obligation to accept delivery of the Certificates is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Dallas, Texas, approving the Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for the Certificates. An executed counterpart of said opinion shall accompany the global certificates deposited with The Depository Trust Company or a reproduction thereof shall be printed on the definitive Certificates in the event the book entry only system shall be discontinued. . SECTION 31: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Certificates shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving the Certificates as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. SECTION 32: 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 AgenURegistrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, and this Ordinance and all its provisions is intended to be and shall be for the sole and exclusive benefit of the City, the Paying AgenURegistrar and the Holders. SECTION 33: 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 34: Governina Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 35: Effect of Headinas. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 36: 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. . Ordinance No. 2703 27 SECTION 37: Severabilitv. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 38: Continuing Disclosure Undertaking. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR' means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEe" means the United States Securities and Exchange Commission. "S/O" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2003) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 25 of this Ordinance, being the information described in Exhibit B hereto. Financial statements to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available at the time the financial information and operating data must be provided, then the City shall provide unaudited financial statements for the applicable fiscal year to each NRMSIR and any SID with the financial information and operating data and will file the annual audit report when and if the same becomes available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Certificates, if such event is material within the meaning of the federal securities laws: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; Ordinance No. 2703 28 . . . (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions or events affecting the tax-exempt status of the Certificates; (7) Modifications to rights of holders of the Certificates; (8) Certificate calls; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Certificates; and (11) Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Certificate calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted underwriters to purchase or Ordinance No. 2703 29 sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Certificates. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Certificates from lawfully purchasing or selling Certificates in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (b) an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION 39: Public MeetinQ. It is officially found, determined. and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place. and subject matter of the public business to be considered at such meeting. including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 40: Effective Date. This Ordinance shall be in force and effect from and after its passage on the date shown below. PASSED AND ADOPTED, this April 28, 2003. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: City Attorney (City Seal) Ordinance No. 2703 30 . . . Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 38 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix B, but for the most recently concluded fiscal year. 2. Statement The information contained in Tables 1 through 6 and 8 through 15 in the Official Accounting Principles The accounting principles referred to in such Section are the generally accepted accounting principles as applicable to governmental units as prescribed by The Government Accounting Standards Board. ",'" CITY OF NORTH RICHLAND HILLS Department: Planning & Inspections Department Council Meeting Date: 4/28/03 Subject: Consideration of a Request from Rebel Properties LLC. Agenda Number: PS 2003-11 for the Approval of the Final Plat of Iron Horse Addition Phase II (Located in the 6300 block of Browing Drive - (30.94 acres). Case Summary: This site is a vacant piece of property in the 6300 block of Browning Drive. This 31 acre site was recently rezoned from Industrial to R2 Single Family (PZ 2002-31). The proposed plat includes a total of 101 residential lots in excess of 9,000 square feet in size. The preliminary plat was approved in February (PS 2002-50). Staff Review: The Development Review Committee has reviewed the plat and has determined that it complies with both the Zoning and Subdivision Ordinances. Attached is a memo from the Public Works Department stating that all staff concerns have been addressed. Planning and Zoning Commission Recommendation: The Planning and Zoning Commission at their meeting on, April 17, 2003, recommended approval of PS 2003-11 by a vote of 6-0. A late concern came up when City Staff questioned the need for front yard easements. The developers engineer says that Oncor now requires that electric and gas lines are to be placed in the front yards. Our subdivision ordinance states that a 7.5 foot easement is required in the rear yards but does not specify about allowing other utilities in the front yard. We have contacted representatives from Oncor and the developer for this subdivision. Oncor would like for the utility easements to be in the front yard but would work with the developer at the developers expense to move the above ground transformers to the rear. Staff is awaiting to hear from the developer regarding his ability to move the transformers to the rear of the lots. RECOMMENDATION: To Approve PS 2003-11 the Final Plat of Iron Horse Addition II. Review Schedule: Application: 2/10103 Final Hearing: 4/28/03 Total Review Time: 11 weeks Finance Review Source of Funds: Bonds (GO/Rev.) _ Operating Budget = ) Other ~ ~~ok.~ Account Number Sufficient Funds A vallable Department Head Signature Finance Director ~i~' PS 2003-11- Iron Horse II CC . . N A NRH PS 2003-11 IRON HORSE PHASE II -- . . . 10. PS 2003-11 CONSIDERATION OF A REQUEST FROM REBELPROPERTIES LLC. FOR THE APPROVAL OF THE FINAL PLAT OF IRON HORSE ADDITION PHASE II LOCATED IN THE 6300 BLOCK OF BROWNING DRIVE (30.94 ACRES). APPROVED Zoning Administrator, Dave Green, summarized the case. This area is located on the western edge of North Richland Hills bordering Haltom City and the City of Watuaga. The property is zoned R-2, which requires a minimum lot size of 9000 sq. ft. and a minimum house size of 2000 sq. ft. A memo from Public Works states that all issues have been addressed and staff recommends approval. However, an issue did come up this afternoon regarding how electricity would be provided to the lots in this subdivision. ONCOR is moving towards all services to be provided from the street versus traditionally from the back. This means that there will be large transformers in front yards, and individual risers and meters to serve each lot. This proposes an aesthetics issue. Staff has concerns regarding this proposal and would recommend that staff be allowed to put together a packet of information and come back for discussion. Regarding this plat however, staff recommends approval. Chairman Bowen asked Mark Wood, the developer, to come forward. Chairman Bowen asked if Mr. Wood was aware of this development from ONCOR. Mr. Wood stated that he was aware and would prefer to see the meters in the back instead of in the front. Chairman Bowen asked if Glenwyck Villas was set up with the meters in the front. Mr. Wood responded yes. Mr. Schopper stated that utility easements are now located in the front and back of each lot. Electricity is in the front, with cable and telephone in the back. Mr. Schopper wondered if there was any way to get rid of the rear easement. Mr. Wood stated that the City of North Richland Hills requires telephone and cable in the back. Ted Nehring, seconded by James Laubacher, motioned to approve PS 2003-11. The motion carried unanimously (6-0). Brenda Cole commented that if the City of North Richland Hills is forced to do this, then the City needs to do whatever it takes to get rid of the back easement and put all utilities in one place. Page 7 4/17/03 P & Z Minutes NRH CITY OF NORTH RJCHL~l\JD HILLS Public Works I Administration . March 20, 2003 MEMO TO: Donna Jackson, NRH Planner FROM: Andrea Jobe, EI, NRH Engineer Associate RE: IRON HORSE ADDITION PHASE 2 LOTS 1-58, BLOCK 1; LOTS 1-12, BLOCK 2; LOTS 1-12, BLOCK 3; LOTS 1-16, BLOCK 4; LOTS 1-5, BLOCK 5 Final Plat, PS 2003-11 Public Works has reviewed the Final Plat submitted to this office on March 12, 2003. All of Public Work's requirements have been met and we recommend its placement on the next Planning & Zoning meeting agenda. . ARJ/pwm2003-070 Cc: Lance Barton, PE, Assistant Public Works Director Dave Green, Zoning Coordinator Jackey Fluitt, Washington and Associates . P.O. Box 820609 * North Richland Hills, Texas 76182-0609 7301 Northeast Loop 820 * (817) 427-6400 * Fax (817) 427-6404 .. '~',';'""!',.' <"-"""",'" ";~-.~" -.-'-- .. . CITY OF NORTH RICHLAND HILLS . Department: Planning & Inspections Department Council Meeting Date: 4/28/03 Subject: Public Hearing To Consider Amending Section 605C of Agenda Number: PZ 2003-09 The Zoning Ordinance allowing alternative simulated masonry systems for specific non- residential building renovations. - Ordinance No. 2704. Case Summary: City Staff has recently received several requests for minor building renovations of retail strip centers. Under our current regulations, any renovations must conform to the 100% masonry building materials and can only have 15% alternative materials for accents. Many of the retail strip centers have been constructed of stucco or similar materials and new requests include continuation of these materials. The only alternative is to request a Special Use Permit to receive a variance from building materials. In many cases this will take up to 3 months for approval through the Planning & Zoning Commission and City Council and require extra costs with development and presentation of formal site plans. The Planning & Zoning Commission initiated discussions regarding these issues for building upgrades and renovations at a work session on April 3, 2003. It was a consensus that a draft ordinance be developed that would allow an exemption without a Special Use Permit for building renovations that do not increase the existing square footage with approval from the Building Official. The following paragraph has been drafted to be included in a proposed ordinance. . "EXEMPTION: Building renovations that do not expand the existing square footage of a non-residential building may use alternative simulated masonry systems as approved by the Building Official without a Special Use Permit as long as they offer ffnproved architectural features and do not decrease the percentage of masonry on the newly renovated building. " Planning and Zoning Commission Recommendation: The Planning and Zoning Commission at their meeting on, April 17, 2003, recommended approval of PZ 2003-09 by a vote of 6-0. RECOMMENDATION: To approve PZ 2003-09 and Ordinance No. 2704. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Oth" = ~ .~~~ . Department Head Signature Account Number Sufficient Funds Available Finance Director ~.~ "- / . - .. J I I II -: /, I "--./ 'J ,it Managec ~tu" PZ 2003-09 Building Materials CC . . . 13. PZ 2003-09 CONSIDERATION OF A ZONING ORDINANCE TEXT AMENDMENT RELATING TO PERMITTED BUILDING MATERIALS FOR COMMERCIAL REMODELING. APPROVED Director of Development, John Pitstick, explained that Staff is trying to make some changes to accommodate builders who are attempting to remodel existing retail strip centers that are 25 + years old. Some of the strip centers are made out of stucco, which under current requirements for non-residential buildings requires 100% masonry, but allows 15% alternative material on the building front. Staff is putting in an exemption that the requirements of materials, other than those specified in the masonry definition for new and used buildings, are only after a Special Use Permit is issued. There is always an opportunity for a business to come forward with an SUP provision, however, staff is exempting building renovations that don't expand the square footage of a non-residential building. The builder may use alternative simulated masonry systems as approved by the Building Official without an SUP as long as the builder offers improved architectural features and does not decrease the percentage of masonry on the newly renovated building. Staff believes this will eliminate the need for an SUP on those particular cases. Staff recommends approval for PZ 2003-09. Chairman Bowen stated that the Commission has had a couple of cases recently that this would have facilitated. Chairman Bowen believes this is a good idea. Mr. Pitstick stated that he believes this will take away all the guesswork. There will be no expansion of the square footage, architectural features must be offered, and the masonry cannot be decreased. This allows staff to approve without an SUP. Ms. Cole questioned the exemption. She read, "may use alternative simulated masonry systems as approved by the Building Official." Ms. Cole stated that the comments talk about it as using alternative masonry systems as outlined in the masonry definition. Mr. Pitstick explained that the Building Official rules on the masonry exception in the masonry definition. Mr. Laubacher stated that the Commission came to a conclusion that masonry could not be used in landscaping. Mr. Pitstick responded that this gives the staff a variance on building materials only. Staff would like to come back and discuss street landscaping especially in regards to Rufe Snow, South Grapevine Highway, and South Davis Boulevard. These are areas that are unable to get 15-ft. of landscaping area. This exemption only covers masonry requirements on buildings, not landscaping or signs. Page 104/17/03 P & Z Minutes . . . Ms. Cole stated that this is allowing the builders to use a product that the City currently does not allow without an SUP. The builders are going to continue with the material that is currently on the building. Mr. Pitstick read the definition of masonry as stated in the Zoning Ordinance Regulation book, "A combination of brick, ceramic block, stone, decorative concrete block, or masonry materials installed in a craftsman-like manner that are a minimum of 1-inch thick and imbedded in a cementious reinforced substrate. Building trim and accent areas shall not exceed 15% of any exterior wall area. Stucco, fiber reinforced cement board, reinforced EIFS or simulated masonry systems approved by the Building Official may only be used for accent areas located no closer than 8-ft. from the adjacent grade level." According to the definition, staff is allowing that to be used up to 100% as long as the builder does not decrease the masonry on the existing building. Ted Nehring, seconded by James Laubacher, motioned to approve PZ 2003-09. The motion carried unanimously (6-0). Page 11 4/17/03 P & Z Minutes . . . NOTICE OF PUBLIC HEARING OF THE CITY OF NORTH RICHLAND HILLS CITY COUNCIL Notice is hereby given to all interested persons that the City Council of North Richland Hills, Texas, will conduct a public hearing on Monday, April 28, 2003 at 7:00 P.M. in the City Council Chambers, 7301 Northeast Loop 820, North Richland Hills, Texas. The following items will be considered: PZ 2003-09 City of North Richland Hills Zoning Ordinance Text Amendment A public hearing will be held to consider an amendment to Section 60SC. of the Zoning Ordinance concerning permitted building materials used for the remodeling of existing non-residential buildings. All interested parties will be given an opportunity to appear and be heard and express their views. Please contact the Planning Department concerning any questions, at 7301 Northeast Loop 820, North Richland Hills, Texas, 76180, (817) 427-6300. . . . ORDINANCE NO. 2704 AN ORDINANCE AMENDING THE ZONING REGULATIONS OF THE CITY OF NORTH RICHLAND HILLS, TO AMEND ARTICLE 6, SUPPLEMENTARY DISTRICT REGULATIONS RELATIVE TO MASONRY REQUIREMENTS FOR RENOVATION AND REMODELING OF NON-RESIDENTIAL STRUCTURES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council has received the recommendations of the Planning and Zoning Commission concerning the matters herein dealt with, which recommendations were made after the holding of a public hearing before said Commission on such matters; and WHEREAS, notice has been published ofthe time and place of a public hearing held before the City Council concerning the changes herein made, which public hearing has been duly held; and, WHEREAS, the City Council has detennined that the amendment to the Comprehensive Zoning Ordinance herein made is in the best interest of the health, safety and general welfare of the citizens of the City of North Richland Hills; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section I: THAT the Comprehensive Zoning Ordinance of the City of North Richland Hills is hereby amended by amending Section 605C of ARTICLE 6, SUPPLEMENTARY DISTRICT REGULATIONS, as follows: "Section 605. MASONRY REQUIREMENT FOR NON-RESIDENTIAL BillLDINGS C. Materials other than those specified in the Masonry definition for new construction may be used only after the issuance of a Special Use Provision (refer to Article 5, Section 500). EXEMPTION: Building renovations that do not expand the existing square footage of a non-residential building may use alternative simulated masonry systems as approved by the Building Official without a Special Use Pennit as long as they 0 ffer improved architectural features and do not decrease the percentage of masonry on the newly renovated building." Ordinance No.2704 Page 10f3 C:IDocuments and SettingslarichardsonlLocal SettingslTemplText Change.Masonry.wpd . . . Section 2: Section 3: Section 4: It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional or otherwise invalid by the final judgment or decree of any court of competent jurisdiction, such invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such invalid phrase, clause, sentence, paragraph or section. All rights and remedies of the City are expressly saved as to any and all violations of the provisions of any ordinances affecting health and safety which have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance, but may be prosecuted until final disposition by the courts. This ordinance shall be in full force and effect immediately upon passage. AND IT IS SO ORDAINED. PASSED this 28th day of April, 2003. ATTEST: CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor Patricia Hutson, City Secretary Ordinance No. Page 2 of3 C:\Documents and Settings\arichardson\Local Settings\Temp\Text Change.Masonry.wpd . . . APPROVED AS TO FORM AND LEGALITY: George A. Staples, Attorney APPROVED AND RECOMMENDED: Department Head Ordinance No. Page 3 of3 C:IDocuments and SettingslarichardsonlLocal SettingslTemplText Change.Masonry.wpd . . ,. CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: 4/28/03 Subject: Approve EnQineerinQ AQreement with Freese and Agenda Number: GN 2003-056 Nichols, Inc. in the amount of $43,000 to develop a Water System Vulnerability Assessment per EPA Requirements - Resolution No. 2003-045 On June 12, 2002, President Bush signed a bill titled the Public Health Security and Bioterrorism Response Act (H.R. 3448 Bioterrorism Act). The EPA Water Protection Task Force is charged with implementing the provisions of the Bioterrorism Act related to drinking water. From its beginning, the overall vision of the EPA Water Protection Task Force has been to help the greatest number of drinking water systems as quickly as possible. Under the Bioterrorism Act, each community water system serving a population greater than 3,300 is required to conduct an assessment of the vulnerability of its water system to intentional acts intended to substantially disrupt the ability of the system to provide a safe and reliable supply of drinking water. The EPA's schedule for water systems to have completed its vulnerability assessment is: Population 100,000 or more 50,000 to 100,000 3,300 to 50,000 Deadline March 30, 2003 December 31, 2003 June 30, 2004 In addition, each community water system is required to prepare or revise where necessary, an emergency response plan within six months of completing its vulnerability assessment. The water system vulnerability assessment can best be defined as a study/plan that addresses the following six elements and processes. 1. Identify the important functions of the water system (i.e., treat water, store water, distribute the treated water, or any combination). 2. Identify the possible undesirable consequences/events that could negatively impact the function of the water system. This will also include defining how the undesirable events might be conducted. 3. Assess the likelihood (qualitative probability) of such events occurring from specific defined threat sources (i.e., terrorist, insider, determined vandal, casual vandal, etc. '- Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number Sufficient Funds ÄvallaDle ~ ]'\'J. ê 'f;;; . (/ . Ÿ .I'" Department Head Signature Finance Director 4. CITY OF NORTH RICHLAND HILLS The water system vulnerability assessment will determine the most critical assets (targets) in the water system and detail their inter-relationships within other assets in the system, and identifies possible consequences of undesirable events directed against these targets. , 5. The assessment will also evaluate the effectiveness of both existing and proposed protection systems. 6. Finally, the vulnerability assessment will identify the system's vulnerabilities and provide a prioritized plan for security upgrades, modifications of operational procedures, and/or policy changes to mitigate identified risks to critical assets. The Public Works Department received qualifications from 12 engineering and security firms to develop the Water System Vulnerability Assessment for the City. The list of 12 firms was reduced to 3 firms based on the number of similar projects completed and qualifications submitted. The 3 top firms were Freese and Nichols, Inc., CH2M Hill and Malcolm Pirnie. Public Works' staff checked references and discussed the project further with 2 of the firms and determined that Freese and Nichols, Inc. would be the recommendation made to Council. Freese and Nichols, Inc. is a top 500 engineering firm nationwide and are in the top 25 in Water Systems and Treatment. Freese and Nichols, Inc. have also performed more large water system vulnerability assessments in Texas than any other entity. The City used Freese and Nichols, Inc. to design the Meandering Drive 24-lnch Water Main and found their staff to be very responsive to the City's requests. They have also met all schedule deadlines. The engineering agreement will address all six elements and processes (listed above) and will also contain a clause indicating that if Freese and Nichols, Inc. do not meet their schedule they will be penalized 10% of their fee. The total design fee for the project will be $43,000. A 2002/03 Capital Project Budget revision is also being requested with this project. Public Works' staff did not include this project in the budget initially since it was believed the project could be conducted "in house". However, after staff attended some meetings/training in December 2002 on the EPA's requirements for the assessment it was determined that the City would best be served by having an experienced firm conduct the assessment. Staff also investigated the possibility of obtaining some grant money to help offset the cost of the project. We contacted the EPA and were told that there was a substantial amount of federal funds set aside to assist the large water system owners (100,000 or greater in population), but that the federal funds set aside for the smaller systems was not enough to help each system owner. Therefore, these funds were going to be used for training City staff to update the water system vulnerability studies on a every 2 to 3 year basis. Sufficient funds are available with the Capital Projects Budget revision. Recommendation: To approve Resolution No. 2003-045 and revise the 2002/03 Capital Projects Budget. CITY COUNCIL ACTION ITEM Page_of _ . . . RESOLUTION NO. 2003-045 BE IT RESOLVED by the City Council of the City of North Richland Hills, Texas, that: 1. The City Manager be, and is hereby authorized to execute the attached Agreement for Engineering Services with Freese and Nichols, Inc. for the Water System Vulnerability Assessment, as an act and deed of the City. PASSED AND APPROVED this the 28th day of April, 2003. Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO LEGALITY: George Staples, City Attorney APPROVED AS TO CONTENT: }1~;~ C.^¡5 Mike urtis, P.E., Pu lic Works Director Utility Capital Projects WA TER SYSTEM VULNERABILITY ASSESSMENT Project Number Assigned Upon Approval PROJECT DESCRIPTION & JUSTIFICATION This project will consist of conducting a Water System Vulnerability Assessment CVA) for the City's water system. The VA is required by the EPA in order for the City to comply wih the Public Health Security and Bioterrorism Response Act (H.R. 3448 Bioterrorism Act) signed by President Bush on June 12,2002. The VA will assess the vulnerability of the City's water system to intentional acts intended to substantially disrupt the ability of the system to provide a safe and reliable supply of drinking water. PROJECT STATUS Original 200212003 Original 2002/2003 Start Date Revision End Date Revision Engineering/Design N/A 5/2003 N/A 11/2003 Construction N/A N/A N/A N/A REVISION EXPLANATION This project was not included in the 2002/03 Capital Projects Budget since initially it was believed the project could be completed "in house". After further investigation into the EPA requirements it was determined that the City should hire an experienced firm for this type of project. FINANCIAL DATA 2002/2003 Total Funding Source Amount to 200212003 Revised Remaining Project Date Adopted Budget Budget Cost Prior Funding Allocations: N/A $0 $0 $0 $0 $0 Proposed Funding Allocations: Unspecified Project Savings 0 0 43,000 0 43,000 Total $0 $0 $43,000 $0 $43,000 Project Expenditures Engineering $0 $0 $43,000 $0 $43,000 Land/Right-of-Way 0 0 0 0 0 Construction 0 0 0 0 Total $0 $0 $43,000 $0 $43,000 IMPACT ON OPERATING BUDGET Nominal impact is expected. Annual Operating Impact Pro'ected CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 4/28/03 Subject: Appointments to Wholesale Water Customer Advisory Agenda Number: GN 2003-057 Committee and Wholesale Wastewater Customer Advisory Committee In July 2002, Councilman Turnage was appointed the voting member to fulfill the vacancy created by Russ Mitchell and Mike Curtis was appointed to serve as alternate. Appointments to the Wholesale Water Customer Advisory Committee and Wholesale Wastewater Customer Advisory Committee serve fiscal year terms (beginning October 1 through September 30). The term Councilman Turnage fulfilled is now expired. At this time staff is requesting that council appoint a voting member and alternate to both committees term expiring September 30, 2003. RECOMMENDATION: To appoint a voting member and alternate to the Whole Water Customer Advisory Committee and Wholesale Wastewater Customer Advisory Committee. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number Sufficient Funds Ävallable ~M~1~ Department Head Signature Finance Director Page 1 of 1 . . -) Announcements and Information April 28, 2003 Announcements-Council Member Don't forget to vote on Saturday, May 3 for Council Place 1. Polling locations will be open from 7:00 a.m. - 7:00 p.m. Early votinQ ends tomorrow, Tuesday April 29th. For further information, call 817-427-6060 or log onto our web site at www.mhtx.com The annual Pet Walk-a-Thon will be held on Saturday, May 3rd. Residents can bring their animals to the Animal Adoption and Rescue Center at 9am. Animals that are seven years of age will be placed in a special drawing since they will be 50 years in dog/cat years, which is the same age as North Richland Hills! Register at the Animal Adoption and Rescue Center. Join us for our annual A Lotta Niqht Music concerts at Green Valley Park on Friday, May 9. King Creole will be performing classic rock music from 7:00-9:00 p.m. The concert is free so bring your lawn chairs and blankets for a great evening in the park. The Library will be hosting the MasterWorks series on Tuesday, May 13th. This free concert will feature Café Noir, an eclectic instrumental ensemble. The concert begins at 7:00 p.m. NRH Library is located at 6720 NE Loop 820. For further information, call 817- 427 -6800. Information Mav 10 Critter Connection North Hills Mall 10:00 a.m. - 6:00 p.m.