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Home My WebLink AboutCC 2000-05-08 Agendas CITY OF NORTH RICH LAND HILLS PRE-COUNCIL AGENDA MAY 8, 2000 - 6:00 PM For the Meeting conducted at the North Richland Hills City ~all - Pre-Council Chambers 7301 Northeast Loop 820. NUMBER ITEM ACTION TAKEN 1. Discuss Items from Regular May 8, 2000 City Council Meetinq (5 Minutes) 2. I R 2000-055 Discuss COG Board Nominations for 2000/2001 (5 Minutes) 3. PW 2000-14 Discuss Possible Revision to Public Works Design Manual (Agenda Item No. 15) (10 Minutes) 4. I R 2000-054 Direction for RV Ordinance (5 Minutes) 5. I R 2000-062 Millennium Celebration (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 (15 Minutes) Prospect for Commercial Development 7. Adjournment - 6:50 pm *Closed due to subject matter as provide by the Open Meetings Law. If any action is contemplated, it will be taken in open session \) (~~ftg -.......--.' Dc'!'J 1(: DD LJN\ ------ -"'-~f';;;."''-'~~-''''-'''''' A<;~ c;::JJ;~ J--- CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA MAY 8,2000 -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 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 - 3. Pledge of Allegiance North RidQe Middle School 4. Special Presentations GN 2000-043 a.) Oath of Office I R 2000-055 b.) North Richland Hill's Park & Recreation Department Finalist for the 2000 National Gold Medal Award c.) Recognition of Texas Tornado Hockey Team 5. Removal of Item(s) from the Consent Agenda aqe 6. Consent Agenda Item(s) a) Minutes of the Pre-Council Meeting April 24,2000 b) Minutes of the Council Meeting April 24, 2000 PU 2000-026 c) Authorization to Extend Annual Contract for Aquatic Chemical Supplies to Advanced Chemical Distribution - Resolution No. 2000-031 PU 2000-027 d) Award Bid for Truck with Sewer Cleaning Unit to STM Equipment in the Amount of $99,1000 G N 2000-046 e) Internet Taxation Fairness - Resolution No. 2000-034 GN 2000-053 f) Consideration of Convenant of Lot 1, Block 17, Stoneybrooke Addition - Resolution No. 2000-036 17. GN 2000-044 I Election of Mayor Pro T em I I 8. GN 2000-045 Emergency Appropriation of State Funds for Substance Abuse Programs - Resolution No. 2000-033 9. GN 2000-047 Appointment to Place 7 on the Planning & Zoning Commission & Capital Improvement Advisory Committee 10.GN 2000-048 Consideration of TXU Filing Case - Resolution No. 2000-032 11. GN 2000-049 Park & Recreation Board Recommendation for Tribute at ThornbridQe Park 12.GN 2000-050 Consideration of Action on all Matters Pertaining to the Award and Sale of $2,720,000 in General Obligation Bonds and Approve Ordinance No. 2476 City Council Agenda 5/8/00 P 3 City Council Agenda 5/8/00 Paae 4 13.GN 2000-051 Consideration of Action on all Matters Pertaining to the Award and Sale of $2,315,000 in Tax and Waterworks and Sewer System Revenue Certificates of Obligation, Series 2000 and Approve Ordinance No. 2477 14. GN 2000-052 Consider Development Agreement with RSM Investments 15. PW 2000-14 Approve Revision to the Public Works Design Manual concerning Soil Retention Blankets - Resolution No. 2000-30 16. PW 2000-15 Approve Relocation of Signs on Rufe Snow Drive 17. a) Citizens Presentation b) I nformation and Reports 18. Adjournment ~~-~~~~ Ir~~T~D D:-::e [1'. 00 {,.JAIl ------,.-~ 1"'1 (~;~~--'_.--.-<~.,--+ -_._~ ~"__M._'.._ LJ-.., , ß ____ M ~ÇY,7Æ ~ BV______________,..______,___..,__ ,_ ,..,._ _~_,,__ CITY OF NORTH RICHLAND HILLS CITY COUNCIL./CRIME CONTROL DISTRICT BOARD WORK SESSION MAY 15, 2000 - 5:00 p.m. AGENDA The City Council and the Crime Control District Board of the City of North Richland Hills will hold a joint work session on Monday, May 15, 2000 at 5:00 p.m. at the North Richland Hills City Hall in the Pre-Council Room, 7301 Northeast Loop 820, North Richland Hills, Texas. AGENDA: 1. Call to Order 2. Review Accomplishments of Crime Control District and Discuss Plans for Future 3. Review of Procedures for Receiving of Public Comments 4. Adjournment ·M.Af.l..J I~ I J ðCD _._-~,,"" ,~_,.,_», f_·~~~~=l . _....~ ~.. ~.........,..-'... ~:. ::~ ~.''':~. -.... .............-....-.."'-',..."'..-.-...".-....."... 1.-{t.) Ó .......,_.....~...~...... ~.~~. .~ -~ Aç~. ('........ .. , .. áÄ~,·~~~ NOTICE OF MEETING NOTICE is hereby given that the City Council of the City of North Richland Hills, Texas, will meet at 7:fr) o'clock P.M. on the 8th day of May, 2000, at the City Hall, 7301 N. E. Loop 820, North Richland Hills, Texas, and during such meeting will consider all matters incident and related to the issuance and sale of $2,720,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2000", dated May 1,2000 and $2,315,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000", dated May 1, 2000, including the receipt of bids therefor and the adoption of ordinances authorizing the issuance of such bonds and certificates of obligation. @ât/lb/¿{~ ~ Administrative Officer POSTED 5"-~ - eJO DÐte 1./':5 ð IJ _n/l --'~--'--'--"'"'--'----'~"--'-'~n;:~~- /Y!.! :';:::::v:ir,ry üç._~,...,=~""..",~ 0014130 L ," INFORMAL REPORT TO MAYOR AND CITY COUNCIL NO'IR 00066 ~ Date: May 8, 2000 ~. Subject: COG Board Nominations for 2000 /2001 Councilwoman JoAnn Johnson recently sent a memorandum to the Mayor and City Council expressing her interest in serving on the North Central Texas Council of Government's Board of Directors. She has also requested that this item be placed on the Pre-Council Agenda to further express her interest and request support of the Council. Attached please find Councilwoman Johnson's memorandum and the information related to the Council of Government's Board of Directors. Respectfully submitted, ~"ð- L:r; ~.-¿u~nlngham City Manager LJC/ld L L ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS TO: Mayor and Council Members Joe Tolbert, Councilman Elect FROM: JoAnn Johnson SUBJECT: COG Board DATE: April 26, 2000 The North Central Texas Council of Governments will be electing new officers and directors for 2000/2001. I would very much like to serve on the COG Board and have expressed interest in the past. With the Mayor serving on the RTC and the NLC Transportation Committee, I think that having an elected official from North Richland Hills serving on the COG Board would be very beneficial. I plan to submit my application for a position on the board to the nominating committee of COG, and would very much like your support. I have requested the City Manager to place this on our May 8th Pre-Council meeting so that I can further discuss this with you and request your support. I believe with my having served on pervious COG Committees, and as our cities voting representative at COG for the past six years I could represent our city and viewpoints very well. I look forward to discussing this with you. North Central Texas Council Of Governments TO: NCTCOG Member Governmentr A//J Pr./ Ron Harris, NCTCOG President '-J! IVV Election of Officers and Directors for 2000-2001 Executive Board DATE: April 21, 2000 FROM: SUBJECT: The Council of Governments will be electing its Officers and Directors for 2000-2001 at its General Assembly meeting that is scheduled for Thursday, June 1,2000. Local officials from member governments are invited to submit recommendations for the Board positions. We encourage an active response to this call for nominations. In 1998, the membership approved a Bylaws amendment that increased the size of the Executive Board from eleven to thirteen members and stipulated that each of these thirteen members must be a local elected official. The only director seat for which nominations are not being sought is the county seat designated for a county larger than 300,001. This is because it is currently filled by a Board officer. Enclosed are forms that we request you use to submit your recommendations. Please return your comDleted forms bv Fridav. Mav 12.2000. To assist in this process, a Nominating Committee has been appointed. I will serve as Chair of the committee and will be assisted by the following Past Presidents: Ron Harmon, Commissioner of Johnson County - President 1998-99 Elzie Odom, Mayor of Arlington - President 1997-98 Jim Jackson, Commissioner of Dallas County - President 1996-97 Jewel Woods, former Councilmember of Fort Worth - President 1995-96 Gary Slagel, Mayor of Richardson -- President 1994-95 Jim Alexander, former Councilmember of Denton - President 1991-92 John Evans, former Mayor Pro Tem of Dallas - President 1989-90 For your information, I have also included material reflecting the structure of the Executive Board, a listing of current Board members, and the telephone numbers and mailing addresses of the Nominating Committee members. If you have any questions, please contact me or one of the other members of the Nominating Committee. RH:vpj Enclosures 616 Six Flags Drive, Centerpoint Two P. O. Box 5888, Arlington, Texas 76005-5888 (817) 640-3300 FAX: 817-640-7806 <Ð recycled paper http://www.nctcog.dst.tx.us FROM: DATE: Name Title Local Government Represented Address TO: City/State/Zip Ron Harmon, NCTCOG President -- Chairman, Nominating Committee SUBJECT: Recommendation for Local Elected Official to Serve on NCTCOG's 2000-2001 Executive Board I would like to recommend the following local elected official: Name Title (Mayor, Councllmember, City Commissioner, County Judge, County Commissioner, School Board President or Member) Local Government Represented (Population) AddresslCity/State/Zip . for consideration by the Nominating Committee to serve on NCTCOG's 1999-2000 Executive Board. Additional supporting comments: (Attach a resume or additional biographical information.) - - ." ............. .... . NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS 1999-2000 EXECUTIVE BOARD OFFICERS President - Ron Harris, Collin County Judge Vice President - Mary Poss, Mayor Pro Tem of Dallas Secretarv- Treasurer - Jimmy McKenzie, Mayor Pro Tem of Hurst Past President - Ron Harmon, Commissioner of Johnson County DIRECTORS Director - Tom Vandergriff, Tarrant County Judge - Elected 1994 Director - Becky Haskin, Councilmember of Fort Worth - Appointed 1997 Director - Milburn Gravley, Mayor of Carrollton - Elected 1998 Director - Richard Rozier, Mayor of DeSoto - Elected 1998 Director - Helen Kerwin, Commissioner of Somervell County - Elected 1999 Director - Mary Washington, Mayor of Hutchins - Elected 1999 Director - James O'Neal, Councilmember of Lancaster - Elected 1999 Director - Mike Cantrell, Commissioner of Dallas County - Elected 1999 Director - Vacant - Due to Resignation NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS Executive Board Structure (According to NCTCOG Revised Bylaws) OFFICERS President (Elected by General Assembly. Must be a member of the Executive Board.) Vice President (Elected by General Assembly. Must be a member of the Executive Board.) Secretary-Treasurer (Elected by General Assembly. Must be a member of the Executive Board.) Past President (Automatic position on Executive Board.) DIRECTORS - Cateaorical Reauirements Representative of Laraest Populated City (Nominee selected by City of Dallas.) Representative of Second Laraest Populated City (Nominee selected by City of Fort Worth.) Representative of Laraest Populated County (Nominee selected by Dallas County.) Representative of Second Laraest Populated County (Nominee selected by Tarrant County.) Representative of a County with a Poculatlon of 300.001 or More Representative of a County with Population of 300.000 or Less Representative of a City with Population of 100.000 or More Two Representatives of Cities with Populations of 25.001 or More Representative of a City with Population of 25.000 or Less Two Representatives from any Member Government + An Executive Board member must be a local elected official from a member government + If a director is elected to an officer position, that director will continue to represent the category that the director was originally elected to serve. + No member government may have more than one (1) representative on the Board at any given time unless one of them is serving in the Past President position. NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS 2000-2001 NOMINATING COMMITTEE Ron Harris Chairman County Judge Collin County 210 South McDonald, Ste. 626 McKinney, Texas 75069 (817) 548-4635 -- Office Gary Slagel Mayor of Richardson 21 Bunker Hill Richardson, Texas 75080 (972) 238-4203/4208 -- City Ron Harmon Commissioner Johnson County 247 NW John Jones Burleson TX 76028 (817) 558-8200 - Office Jim R. Alexander 1412 Sandy Creek Dr. Denton, Texas 76205 (940) 898-2133 -- Office John Evans 501 Old Mill Ln. Dallas, Texas 75217 (214) 398-9741 -- Home Elzie Odom Mayor City of Arlington 1019 Byron Lane Arlington, Texas 76012-1827 (817) 459-6121 -- Office Jim Jackson Commissioner Dallas County 2311 Joe Field Rd. Dallas, Texas 75229 (214) 247-1735 -- Office Jewel Woods 6125 Wales Ct. Fort Worth, Texas 76133 (817) 294-1516 - Home INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 00 054 * Date: May 8, 2000 Subject: RVP k· d C ·10' . , ar Jng an ouncl Irectlon In the recent past a North Richland Hills' resident appealed to the City Council to enact specific regulations prohibiting the parking of Recreational Vehicles in residential neighborhoods. The citizen had pictures that illustrated their concern and asked for some Council clarification or regulations that would remedy the situation. Our current regulations do not restrict the size of any RV parked in residential neighborhoods; we allow the vehicle to be parked on the driveway. This same requirement applies to motor homes as well as boats and trailers. We do allow, if the vehicle is parked in the side yard behind a solid fence, to be parked on the grass. In 1999 the Code Enforcement Ad Hoc Committee identified the parking of RV's as an issue that needs to be considered. The parking of RV's was not listed as one of their highest priorities, but it was a priority that needed to be addressed in the future. The Ad Hoc Committee was somewhat split on the subject and recognized that both "sides" are very passionate on the issue We did poll the neighboring cities of Southlake and Grapevine and they require that if RV's are parked or stored it shall be parked within an approved driveway, or it is parked in the rear or side yards. ~/ The memo attached from Ed Dryden briefly identifies the regulations in Southlake and Grapevine. It is my understanding that the City of North Richland Hills has looked at this issue in the past and this is an issue that we would like some Council direction on or at least to give us a time frame of when to move forward on this issue. Should Council require something of this nature it may be worth considering to give the residents at least one year to comply. But again there are numerous areas in town where there is not sufficient room in the side yard to park the motor home, much le,ss pour concrete. Any direction would be helpful and Ed Dryden will. be at the Pre-Council meeting to address any specific questions. Respectfully submitted, Steve Norwood Assistant City Manager SPN/ld '-- ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS INFORMAL REPORT TO MAYOR AND CITY COUNCIL N IR 00-062 o. !* '-' Date: Subject: May 8, 2000 Millennium Celebration Recommendations As directed by City Council, a Millennium Celebration Committee was established to consider creative approaches and events to celebrate the beginning of the new millennium. The committee, consisting of 11 city employees met on two occasions to discuss and brainstorm several ideas. These ideas took form and resulted in several recommendations for Council to consider. The recommendations are intended to stimulate other ideas and for visioning what's possible. Some of the recommendations are long term goals while others could be implemented as funding is made available. The Millennium Celebration Committee will present options to the Council Monday night in a PowerPoint presentation. The Council's ideas and direction wUlbe appreciated. Respectfully Submitted, l]/ ~I ' CiJ~· .. LI.i1AW if'J I \.....,. Vickie Loftice . Assistant Director of Parks & Recreation ~ ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS INFORMAL REPORT TO MAYOR AND CITY COUNCIL N IR 00-061 o. ~ * ::::~ct: May 8, 2000 Presentation to Dr. Milano and Oaths ofOffiee After the invocation and pledge at Monday night's meeting, the following activities have been planned in recognition of Dr. Milano's service on the North Richland Hills City Council. Special Presentation to Dr. Milano · Presentation of plaque, gift and other city memorabilia to Dr. Milano'from Mayor Scoma · Comments from Dr. Milano · Comments from other Council Members Following the recognition to Dr. Milano, the oaths of office wUlbe administered to the newly elected officials as follOws: 1. Mayor Scoma · Oath administered by Rev Derwood Dubose · Comments by Mayor 2. JoAnn Johnson · Oath administered by Attorney Rex McEntire · Comments by Councilwoman Johnson 3. Joe Tolbert · Oath administered by Dr. George Tolbert · Comments by Councilman Tolbert 4. Ray Oujesky · Oath administered by Attorney Rex McEntire · Comments by Judge Oujesky Respectfully submitted, G~~ Patricia Hutson City Secretary ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5/8/2000 Subject: Oath of Office Agenda Number: GN 2000-043 The Oath of Office will be administered to each of the newly elected officials. Attorney Rex McEntire will be prepared to administer the Oath of Office; However, if you desire to have someone else administer your oath, please advise the City Secretary prior to the May 8 meeting in order for the City Secretary to provide the proper forms. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available ~Mtlit~ ~ Department Head Signature Finance Director ~~ INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 00-056 ~ Date: ~ Subject: May 8, 2000 NRH Parks & Recreation Department - 2000 Gold Medal Award Finalist The National Sporting Goods Association has announced the names of the finalists for the 2000 Gold Medal Awards Program. These awards are presented annually to communities throughout the United States for excellence in park and recreation administration and for outstanding service in cooperation with the National Sporting Goods Association (NSGA) and the National Recreation and Park Association (NRPA). NSGA's Sports Foundation is a non-profit membership organization founded to stimulate interest in the development of new recreational activities and facilities and to encourage participation in sports. It established the National Gold Medal Awards Program for park and recreation management in 1965. The finalists for 2000, in Class III (population 50,000 - 100,000) are: North Richland Hills Parks and Recreation Department - North Richland Hills, Texas Asheville Parks and Recreation Department - Asheville, North Carolina '-. Denton Parks and Recreation Department - Denton, Texas Peoria Community Services Department - Peoria, Arizona With your support and leadership, coupled with the hard work of the Park and Recreation Board and staff, North Richland Hills Parks and Recreation is proud to have been selected by our peers for a fifth year in a row as one of the top Parks and Recreation Departments in the nation! The Grand Award Winner in each clé;lSS will be selected based upon improvement, service, continuing development, extent of future planning and degree of participant involvement and acceptance by the community. Winners will be announced and honored at the NRPA Congress to be held in September. We are proud and pleased to be sharing this exciting news with you. Respectfully Submitted, ~~ Jim Browne Director of Parks & Recreation L ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS Present: Absent: MINUTES OF THE PRE-COUNCIL MEETING OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE LIBRARY BOARD ROOM, 6720 NORTHEAST LOOP 820 AND THE PRE-COUNCIL ROOM AT CITY HALL, 7301 NORTHEAST LOOP 820 - APRIL 24,2000 - 5:30 P.M. Charles Scoma JoAnn Johnson Lyle E. Welch Russell Mitchell Frank Metts, Jr. Matt Milano, Ph.D. Larry J. Cunningham Randy Shiflet Steve Norwood Greg Vick Patricia Hutson Alicia Richardson Rex McEntire Larry Koonce Paulette Hartman Mayor Mayor Pro Tem Councilman Councilman Councilman Councilman City Manager Deputy City Manager Assistant City Manager Managing Director Community Services City Secretary Assistant City Secretary Attorney Finance Director Assistant to the City Manager Don Phifer 1. Oscar Trevino, Jr. Councilman Councilman ITEM DISCUSSION ASSIGNMENT CALL TO ORDER Mayor Scoma called the meeting to order in the Library Board Room at 5:30 p.m. I R 2000-050 The Library Director reported on the activities of the NAN LIBRARY library and the automation of the library. The City COMPUTER Council participated in a demonstration of the DEMONSTRATION capabilities of the new automation system and the self-checkout service. Following the demonstration the meeting was recessed to the Pre-Council Room at City Hall. Mayor Scoma called the meeting back to order in the Pre-Council Room at 6:13 p.m. with the following additional staff present: Greg Dickens, Public Works Director, Mike Curtis, Assistant Public Works Director; Marcy Ratcliff, Zoning Administrator. Pre-Council Minutes April 24, 2000 Page 2 - ITEM DISCUSSION ASSIGNMENT DISCUSS ITEMS Agenda Item No.1 0 GN 2000-42 - In response to a NAN FROM REGULAR question from a Council member regarding the APRIL 24, 2000 language dealing with advertising on the banner, CITY COUNCIL Staff advised that the proposed language did not MEETING allow business names to be placed on the banners. Staff explained that it was felt if business names were allowed it would be hard to determine what constituted advertising. The Mayor advised that if any of the Council wanted to clarify the language, that it could be done in the motion during the regular meeting. IR 2000-051 RUFE Staff explained that several of the signs on Rufe STEVE N. SNOW DRIVE SIGN Snow will have to be relocated due to the Rufe Snow RELOCATION Widening Project and that TxDOT will only relocate the signs and not rebuild the signs. Staff explained that to comply with the Sign Ordinance, the pole signs would need to be replaced with monument signs. TxDOT has indicated that the City will be responsible for any additional cost due to the signs needing to conform to the City's sign ordinance. Staff explained that if this were a city project rather than a State project, the city would allow the signs to encroach on public right-of-way. Federal guidelines must be followed which will not allow sign encroachment into the public right of way. Staff requested Council direction on allowing the signs to be relocated and to be allowed to remain as non- conforming sings until the ownership of the property changes. After discussion, the Council was unable to arrive at a consensus and directed staff to place this item on the next Council agenda for official action. Pre-Council Minutes April 24, 2000 Page 3 ITEM DISCUSSION ASSIGNMENT ADJOURNMENT Mayor Scoma announced at 6:32 that the meeting would adjourn to Executive Session for the purpose of discussing personnel (review of Council appointed positions) as authorized by Section 551.074 of the Government Code. The Executive Session was recessed at 6:56 p.m. to the regular Council and was reconvened immediately following the regular Council meeting. Charles Scoma - Mayor ATTEST: tricia Hutson - City Secretary MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICH LAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 - APRIL 24, 2000 - 7:00 P.M. 1. CALL TO ORDER Mayor Scoma called the meeting to order April 24, 2000 at 7:01 p.m. Present: Charles Scoma JoAnn Johnson Lyle E. Welch Russell Mitchell Frank Metts, Jr. Matt Milano Absent: Don Phifer T. Oscar Trevino, Jr. Staff: Larry J. Cunningham Randy Shiflet Steve Norwood Greg Vick Patricia Hutson Alicia Richardson Rex McEntire ROLL CALL Mayor Mayor Pro T em Councilman Councilman Councilman Councilman Councilman Councilman City Manager Deputy City Manager Assistant City Manager Managing Director of Community Services City Secretary Assistant City Secretary Attorney 2. INVOCATION Councilman Milano led the invocation. 3. PLEDGE OF ALLEGIANCE 4. SPECIAL PRESENTATIONS None. 5. REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. -~"-..,.,>..._---~._,..,---------~--_.--.------ City Council Minutes Aprif 24, 2000 Page 2 6. APPROVAL OF CONSENT AGENDA ITEMS APPROVED A. MINUTES OF THE PRE-COUNCIL MEETING APRIL 10, 2000 B. MINUTES OF THE COUNCIL MEETING APRIL 10, 2000 C. AWARD OF BID FOR THE 25TH YEAR CDBG PROJECT/MARYANNA WAY AND NANCY LANE TO STABILE & WINN, INC. IN THE AMOUNT OF $220,702.55 D. APPROVE INTERLOCAL AGREEMENT WITH TARRANT COUNTY FOR THE MAINTENANCE OF NORTH TARRANT PARKWAY-RESOLUTION NO. 2000-027 Councilman Metts moved, seconded by Mayor Pro Tem Johnson to approve the consent agenda. Motion to approve carried 5-0. 7. PS 2000-12 - REQUEST OF WELCH ENGINEERING (U.S. RESTAURANT PROPERTIES) FOR A FINAL PLAT OF LOT 1, BLOCK 1, VISTA ADDITION. (PROPERTY LOCATED AT THE SOUTHEAST CORNER OF DAVIS BOULEVARD AND PRECINCT LINE ROAD AT 8612 DAVIS BOULEVARD) APPROVED Mr. Sone Cavazos, representing applicant, summarized his request. Ms. Marcy Ratcliff, Director of Planning, addressed the request as it relates to city codes and ordinances and summarized recommendations of staff and the Planning and Zoning Commission. Mayor Pro Tem Johnson moved, seconded by Councilman Milano to approve PS 2000-12. Motion to approve carried 5-0. City Council Minutes Aprif 24, 2000 Page 3 8. LRC 2000-04 - PUBLIC HEARING TO CONSIDER THE REQUEST OF TINA HARVEY FOR VARIANCES TO THE LANDSCAPE REGULATIONS, ORDINANCE NO. 2423 ON LOTS 1-8, BLOCK D, SMITHFIELD ADDITION. (PROPERTY LOCATED AT 8021 MAIN STREET) APPROVED Ms. Tina Harvey, applicant, summarized the nature of her request. Councilman Mitchell inquired if there was a sidewalk on the property. Ms. Ratcliff advised Council that sidewalks are necessary only for replats of property. Ms. Marcy Ratcliff, Director of Planning, addressed the request as it relates to city codes and ordinances and summarized recommendations of staff and the Planning and Zoning Commission. Mayor Scoma opened the public hearing and asked for anyone wishing to speak to come forward. There being no one wishing to speak, Mayor Scoma closed the public hearing. Councilman Mitchell asked Ms. Harvey if she would be willing to put in a sidewalk. Ms. Harvey advised Council that she would not put a sidewalk since she is not required. Councilman Metts moved, seconded by Councilman Welch to approve LRC 2000-04. Motion to approve carried 4-1; with Councilmen Welch, Metts, Milano and Mayor Pro Tem Johnson voting for and Councilman Mitchell voting against. 9. GN 2000-41 - PUBLIC HEARING TO CONSIDER AMENDING ORDINANCE NO. 2423, LANDSCAPE REGULATIONS RELATIVE TO LANDSCAPING REQUIREMENTS FOR NON-RESIDENTIAL USES IN RESIDENTIAL DISTRICTS - ORDINANCE NO. 2473 APPROVED Ms. Ratcliff summarized the request, stating that on April 10 City Council directed staff to draft amendments to the Landscape Ordinance requiring all development to meet the minimum standards with the exception of agricultural and single residential. Mayor Scoma opened the public hearing and asked for anyone wishing to speak to come forward. There being no one wishing to speak, Mayor Scoma closed the public hearing. City Council Minutes April 24, 2000 Page 4 Councilman Milano moved, seconded by Councilman Mitchell to approve GN 2000-41, Ordinance No. 2473. Motion to approve carried 5-0. 10. GN 2000-42 - PUBLIC HEARING TO CONSIDER AMENDING SIGN REGULATIONS, ORDINANCE NO. 2374 RELATIVE TO LIGHT POLE BANNERS _ ORDINANCE NO. 2474 AND CONSIDER AMENDING DEVELOPMENT FEE ORDINANCE NO. 2451 TO ESTABLISH A LIGHT POLE BANNER SIGN FEE _ ORDINANCE NO. 2475 APPROVED Ms. Ratcliff summarized the nature of the request, stating that Council at their 4/10/00 City Council meeting asked staff to draft amendments to the Sign Ordinance to allow seasonal light pole banners. Staff is recommending the following: · Light pole banners to be allowed with a permit for a period not to exceed 60 days · Property would be eligible for three permits in a one-year period · Single permit may allow several banners · Banners may not exceed 32 square feet in area nor extend above the maximum height of the light pole · Message on banners may only be seasonal in nature and may not directly advertise a business or sales event In addition, staff has drafted an amendment to the Development Fee Ordinance- Ordinance No. 2451 to charge a light pole banner sign permit fee of $50.00. Mayor Scoma opened the public hearing and asked for anyone wishing to speak to come forward. There being no one wishing to speak, Mayor Scoma closed the public hearing. Councilman Milano moved to approve Ordinance No. 2474, GN 2000-41 and Ordinance No. 2475 with the stipulation that Ordinance No. 2474 on Page 3, III, Section H, add the language "without the use of words describing a product, company or corporate logo". Councilman Metts seconded the motion. Councilman Mitchell asked Councilman Milano to amend his motion that there be no exception who can advertise on light pole banners including public or private. Councilman Milano denied the amendment. City Council Minutes April 24, 2000 Page 5 Motion to approve carried 4-1; with Councilmen Welch, Metts, Milano and Mayor Pro Tem Johnson voting for and Councilman Mitchell voting against. 11. GN 2000-39 - SUPPORT H.R. 1876 TO AMEND THE CLEAN AIR ACT _ RESOLUTION NO. 2000-28 APPROVED Ms. Paulette Hartman, Assistant to the City Manager, summarized GN 2000-39, Resolution No. 2000-28. Mayor Pro Tem Johnson moved, seconded by Councilman Welch to approve GN 2000-39, Resolution No. 2000-28. Motion to approve carried 5-0. 12. GN 2000-40 - ENCOURAGE CONGRESSIONAL REVIEW OF THE TRANSPORTATION EQUITY ACT OF THE 21ST CENTURY (TEA-21) RATE OF FUNDING RETURN FOR THE STATE OF TEXAS - RESOLUTION NO. 2000-29 APPROVED Ms. Hartman summarized GN 2000-40, Resolution No. 2000-29. Mayor Pro T em Johnson moved, seconded by Councilman Milano to approve GN 2000-40, Resolution No. 2000-29. Motion to approve carried 5-0. 13. (A) INFORMATION AND REPORTS The U.S. Census Bureau beginning April 18 will be going door to door in the City for those residents who have not returned their census report. If there are any questions related to the Census Bureau you can call Paulette Hartman at 427-6015. Moody's Investors has upgraded the City of North Richland Hills General Obligation and Certificates of Obligation from A 1 to AA3. The 9th Annual Business Appreciation Luncheon will be held on Tuesday, May 16, 11 :30am at BISD Fine Arts/Athletics Complex. City Council Minutes April 24, 2000 Page 6 (B) CITIZENS PRESENTATION None 14. ADJOURNMENT Mayor Scoma adjourned the meeting at 7:44 pm. Charles Scoma - Mayor ATTEST: Patricia Hutson - City Secretary CITY OF NORTH RICHLAND HILLS '--- Department: Finance ¡Parks & Recreation Department Council Meeting Date: 5/08/2000 Subject: Extend Annual Contract for Aquatic Chemical Supplies to Agenda Number: PU 2000..026 HCI Advance Chemical Distribution - Resolution No. 2000- 031 At the May 24, 1999 meeting, Council extended the contract with HCI Advance Chemical Distribution to supply aquatic chemicals for NRH20 (PU 99-26). The company has offered to extend this agreement for an additional year at the 1998 bid prices. The contract and bid specifications allow for this contract to be extended for one more year. Next year the contract will be bid. Advance Chemical has provided reliable service and technical support during the last two contract years. They have met all the daily requirements and delivery schedules for the Water Park. Recommendation: To authorize the contract extension with HCI Advance Chemical Distribution to supply aquatic chemicals for one year and approve Resolution No. 2000 _ 031 authorizing the City Manager to execute the contract. '. .'-.- " ,I . Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~ Budget Director .---. . ~ Department Head Signature 'L Page 1 of 1 !- U « a: !- z o U ...J « u co ~~N _ill_ :CCO u~ Um !-O «Z =>0 0_ «CD a:: o LL CO « l- e - co () W 0 0 0 0 0 0 n:: ãj ãj 0 0 0 ~ ~ v N &ri .... :::> 0 0 co r-- 0 ~ ~ N 0 Z Z ~ ~ ~ - ~ ..J ~ () ~ W 0 0 :J: Q 0 0 0 0 0 () CD &ri C! C! 0 ci en 0 I() ~ v ci co en N N M I() I"' 0 Z N" ~ ~ ~ Ñ n:: ~ - () n:: ~ :J: ci 0 0 0 0 I() z I() 0 0 0 ,.: 0 N 0 ex) N I() cc &ri M ~ () ~ co co ci I()" M M M "=" cc" M· tit ~ tit ci I"' ~ I"' tit - ..J « u :E 0 «I UJ 0 cc ,... :J: 0 ... 0 0 0 ..; 0 C! 0 u co ,...: cO N CD ex) "=" ~ UJ ... N M CD U cc "=" ~- ... ... en Z N ... N ... - « > 0 « , >- III l- e: III I- .Q e: III III III Z ~ .Q "t:J "t:J "t:J ~ e: e: e: ~ ::J ::J ::J :::> ° g g g 0 0 I() O. I() 0 0 0 r-- N 0 0 0 I"' N" N N N .. Z CI CI 0 ï: ~ - ¡:: '" ...J .2 e: CI c.. t:I .8 "t:J ~ .c: e: n:: u 0 ... I- ~ ... ..2 u "t:J ..c t:I 0 en ·ü ... ~ I- t:I UJ :J: ~ (J CD U 0 u E 0 E - E E ::J 2 ::J t:I ::J 2 ~ "8 ï: "8 "8 u ::J t:I en ~ en en u C) ell ¡¡j X '0 "3 '0 J:J CI ell >. III III ã. e: III 0.. 0 0.. E :¡ '0 III III :ë ~ '0" Õ r-- 0 0 :ë e: e: Z .9 III ell 0.. co '0 0 :¡ "t:J CI ell 0 "t:J ell U e: ell "~ e: x ·Ë co III U ell ä: ëu 'ã, J:J en "t:J III ::J '8 ~ "t:J III 0 () :ë C1I c.. :c: e: "" Õ "~ VI () ell aï .Q ª co "ë :g III :¡ e: ~ CI 0' 0 ... ell ..J « CD :; .c: Z I- ~ N M ~ ~"·__·"~___c__.>_._~____ RESOLUTION NO. 2000-031 BE IT RESOLVED BY THE CITY COUNCIL OF NORTH RICHLAND HILLS, TEXAS, that: 1. The City Manager is hereby authorized to execute the contract extension for aquatic chemical supplies with HCI Advance Chemical Distribution, as the act and deed of the City. PASSED AND APPROVED this 8th day of May, 2000. APPROVED: Charles Scoma Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: Re APPROVED AS TO CONTENT: Larry Koonce, Director of Finance CITY OF NORTH RICHLAND HILLS "- Department: Finance 1 Support Services Council Meeting Date: 5/08/2000 Subject: Award Bid for Truck with Sewer Cleaning Unit to STM Equipment in the Amount of $99,100 Agenda Number: PU 2000-027. In the 1999/2000 approved budget, Council appropriated funds for the purchase of a truck with a high-pressure sewer cleaning unit to be used by the Utility department. Formal bids were solicited and the results are outlined below. STM Equipment $ 99,100 JetVac Equipment $106,551 Harben, Inc. $107,232 Frontier Equipment $107,926 This equipment will replace a 1990 unit that meets the age and replacement criteria. STM Equipment met all the specifications and general conditions of the bid and can deliver the equipment in 180 days. "- Recommendation: To award the bid for a truck with a high-pressure sewer cleaning unit to STM Equipment in the amount of $99,100. Finance Review '-...- Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~~GJ De artment Head Si nature Budget Director Page 1 of CITY OF NORTH RICHLAND H/LLS .. Department: Administration Council Meeting Date: 05/08/00 Subject: Resolution SupportinQ Internet Taxation Fairness - Resolution No. 2000-034 Agenda Number: GN 2000-046 Internet taxation has become a major issue in Congress over the last several months. The submission of the report of the Advisory Commission on Electronic Commerce in April has intensified this issue. In general, this report recommends that Congress extend the current moratorium on Internet Taxation, which is set to expire October 21, 2001. Senate Bill 2255 was introduced in the United States Congress on April12, 2000 by Senator McCain. This legislation proposes to extend the moratorium by 5 years, or until the year 2006. With the introduction of this legislation, the International City Managers Association (ICMA), the National Association of Counties (NACo), and the National League of Cities (NLC) along with several other organizations of this type have sent out communications asking that the City adopt a resolution supporting e-Commerce equity and send it to our congressional delegation. The attached resolution opposes congressional action to implement the Advisory Commission on Electronic Commerce's report, supports state and local sales tax simplification, and opposes congressional efforts to expand the moratorium on Internet sales tax. If the moratorium on Internet taxation is extended, it will seriously jeopardize the ability of state and local governments to ever collect revenues on Internet sales. An extension would also foster an unlevel playing field between local retailers and Internet retailers. In addition, ICMA released information that approximately 20 states are considering model legislation to simplify state and local sales tax collection. An extension of the moratorium would serve to preempt such efforts. As you are aware, a loss of sales tax revenue to Internet sales has the potential to significantly reduce City revenues seriously affecting city services, as sales tax makes up 25% of overall revenue collected by the City and 32% of general fund monies. In addition the Crime Control District and Park Facility Development Corporation are entirely dependent on sales tax dollars. Therefore, staff recommends approval of Resolution 2000-034 supporting Internet Taxation fairness. Recommendation Approve Resolution No. 2000-034 supporting Internet Taxation Fairness. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other /J / Æ¿¡jp~ f£.iM-) Cft , Department Head Signature Budget Director Finance Director ~~re Page 1 of 2 RESOLUTION NO. 2000-034 A RESOLUTION SUPPORTING INTERNET TAXATION FAIRNESS WHEREAS, the use if new communications technologies, including the Internet, as a way to conduct the sales of goods and services is accelerating; and, WHEREAS, out-of-state vendors who conduct sales via the Internet, mail order and phone under many circumstances are not required by law to collect existing sales and use taxes imposed by state and local governments in which the purchaser resides; and, WHEREAS, the primary barrier to collecting taxes on remote sales is the Supreme Court's ruling in Quill v. North Dakota which defers to Congress, and only Congress, to authorize states to require remote vendors to collect taxes in a manner that does not unduly burden interstate commerce; and, WHEREAS, current laws create a competitive disadvantage and great inequities between merchants who sell from traditional "brick and mortar" establishments and those who sell from electronic stores; and, WHEREAS, this migration of sales to the Internet is restricting the ability of state and local governments and school districts to collect taxes which finance essential public services including but not limited to police, fire, emergency medical service, education, social services, infrastructure development, and local healthcare; and, WHEREAS, the United States Constitution reserves for the states the right to collect and impose taxes; and, WHEREAS, 45 states and the District of Columbia collect over 40 percent of overall revenue from sales taxes to fund vital public services; and, WHEREAS, the City of North Richland Hills collects over 25% of overall revenue from sales tax to fund public services including the crime control district; and, WHEREAS, a recent University of Tennessee study estimates that state sales tax revenue losses in 2003 will exceed $10 billion; and, WHEREAS, the City of North Richland Hills estimates a loss of just 2% in overall sales tax revenue would result in a loss of $1 ,331 ,002 per year which is equal to the entire budget for the Public Library; and, WHEREAS, the Advisory Commission on Electronic Commerce, established by the Internet Tax Freedom Act, failed to address, in a fair and equitable manner, the growing volume of tax-free sales transactions occurring over the Internet, which have put "brick and mortar" stores at a competitive disadvantage; and, WHEREAS, the Commission's report to Congress does not effectively address the tax losses state and local governments will experience if the Internet becomes a permanently tax-free retail market. NOW, THEREFORE BE IT RESOLVED by the Mayor and City Council of the City of North Richland Hills that: 1. The City of North Richland Hills opposes any congressional action to implement the Advisory Commission on Electronic Commerce's report proposals that would preempt state and local sovereignty, guaranteed by the 10th amendment of the United States Constitution; and, 2. The City of North Richland Hill supports simplification of state and local taxes, and urges states to move expeditiously to craft and approve model legislation; and, 3. The City of North Richland Hills opposes any congressional efforts to expand the current moratorium to cover state and local sales and use taxes; and, 4. The City of North Richland Hills opposes any efforts to extend the current moratorium unless the extension is for two years or less and is directly linked to congressional authorization to states that simplify their sales and use tax system to collect use tax on all remote transactions. PASSED AND APPROVED this 8th day of May, 2000. APPROVED: Charles Scoma - Mayor ATTEST: Patricia Hutson - City Secretary A~ A~:ORM AND LEGALITY Rex Mc ntire - Attorney for the City ,.. CITY OF NORTH R/CHLAND HILLS Department: Public Works Council Meeting Date: 05/08/00 Subject: Consideration of Covenants on Lot 1. Blk. 17, Agenda Number: GN 2000-053 Stoneybrooke Addition - Resolution No. 2000-036 A series of these covenant documents were signed with Lisa McManus on October 28, 1999. Ms. McManus was in a position to build a one family house on the lot without getting a loan só the covenants would nôt have been a deterrent' to development. However, her plans have changed and she has agreed to sell the property to Dennis R. Denson and wife, Lisa Denson, if the parties can get the covenants changed. The main issue is that Ms. McManus never built the house and the covenant stated that if she ever sold the property the new owner would be required to build a portion of Hightower. Mr. Denson (the new owner) wants the same agreement Ms. McManus had and has specific plans to build a house and not subdivide the property. Resolution No. 2000-036 authorizes a change in paragraph 5 of each covenant document, as set out in the Resolution. The change entails special development costs, which will not be endorsed if the house is built before Hightower Drive is developed, and if the property is not subdivided before Hightower Drive is constructed. The City has no plans to extend Hightower through this area. Recommendation: To approve Resolution no. 2000-036 Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~ Department Head Signature --- Finance Review Account Number Sufficient Funds AvallaDle Finance Director ~ Page 1 of RESOLUTION NO. 2000-036 WHEREAS, the City and one Lisa McManus, the owner of Lot 1, Block 17, Stoneybrooke Addition to the City of North Richland Hills, Tarrant County, Texas, executed three covenants dealing with development of said Lot 1; and WHEREAS, Lisa McManus and a proposed buyer, Dennis R. Denson, have requested that the City Council amend paragraph 5 of each covenant executed so that the property can be developed. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. The covenant documents are dated October 28, 1998, and recorded in Vol. 13523, p. 0082; Vol. 13523, p. 0083; and Vol. 13523, p. 0084 of the Deed Records of Tarrant County, Texas are hereby authorized to be amended as follows: "5. In the event that Lot 1, Block 17, Stonybrooke Addition to the City of North Richland Hills, Tarrant County, Texas, is developed by building one single family residence before the City installs Hightower Drive then, in such event, these covenants shall be null and void and the costs of street, drainage and sidewalk improvements will be collected from the owner of the property, his successors or assigns, pursuant to the assessment programs for those improvements which are in effect at the time Hightower Drive is built by the City. If however, no single family residence has been built by the time the City installs Hightower Drive or if the said Lot 1 is subdivided before these City improvements to Hightower Drive are completed then these covenants shall be in full force and effect. In the event the covenant is revived by the subdivision of the property, the development costs for the owner shall be based upon the actual costs of the improvements if they have been constructed; if they have not been constructed, the development costs shall be based upon the cost of the improvements as estimated by the City staff at the time of the application for platting to make the subdivision effective." 2. The remaining portions of each document shall remain unchanged. 3. The Mayor is authorized to execute a new covenant with Lisa McManus and Dennis R. Denson and wife, Lisa Denson, which reflects the changes authorized by this resolution. PASSED AND APPROVED this 8th day of May, 2000. APPROVED: Charles Scoma, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: APPROVED AS TO CONTENT: Resolution 2000-036 CITY OF NORTH RICHLAND HILLS " . Department: City Secret~ry Subject: Election ~f\1åyor Pro Tem Council Meeting Date: 5/8/2000 Agenda Number: GN 2000-044 The Charter states that the Mayor Pro Tem shall be selected from the seven Council Members at the'first regular meeting following the City's general election. Since this will be the first regular meeting if we had held an election on May 6, the City Council must elect a Mayor Pro Tem at this Council meeting. Recommendation: To elect a Mayor Pro Tern. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available / E:7atwt~;:fj~ Department Head Signature Finance Director CITY OF NORTH RICHLAND HILLS Department: Police Department Council Meeting Date: 05/08/00 Subject: Emergency Appropriation of State Funds for Substance Abuse Programs Agenda Number:GN 2000-045 Resolution No. 2000-33 Tarrant County Judge Tom Vandergriff wrote a letter to Mayor Scoma on April 13, 2000 asking for a Council Resolution supporting a request before the State House and Senate leadership. The request before Legislative leadership seeks an emergency appropriation of State general revenue to offset a funding shortfall at the Texas Commission on Alcohol and Drug Abuse. The funding shortfall was the result of a budget miscalculation by TCADA. The result of the shortfall was a substantial reduction in funds to some programs. Hardest hit are residential and day treatment programs for adolescents and the County's only detoxification unit. The result will be curtailment of some critical programs or severe limitation of service levels at a time when demand continues to grow. Judge Vandergriff points out, correctly, that the funding shortfall is clearly the responsibility of the state. Asking non-profit service providers to find alternative funding will pass the responsibility to local governments. Local governments will have to chose between spending local tax dollars to supplement treatment programs or prepare for greater expenses for indigent care at the county hospital. Local law enforcement will also face an added burden due to repeat alcohol and drug offenders being unable to find treatment. The Tarrant County Commissioners Court urges members of the Tarrant County Mayors' Council to encourage our legislative delegation to support the request before the House and Senate leadership to seek an emergency appropriation of State general revenue to offset the funding shortfall at TCADA. Recommendation: To pass Resolution 2000-33. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available 'M- Department Head Sign t e Finance Director ~ð~/> City Manage&gnature Page 1 of 1 RESOLUTION NO. 2000-33 'I\'HEREAS, alcohol and substance abuse is on the rise in Texas and the prevention and treatment of alcohol Id substance abuse is a serious concern to all citizens; and WHEREAS, the mission of the Texas Commission on Alcohol and Drug Abuse (TCADA) is the funding of alcohol and substance abuse prevention and treatment programs throughout the State; and WHEREAS, TCADA has experienced a shortfall in this funding through accounting errors and bad assumptions of historical spending and cash carry-forward; and WHEREAS, as a result of the shortfall, many contracted programs statewide and especially in Tarrant County will receive significantly fewer funds for the remainder of the budget year and, possibly, lesser funding again next year; and WHEREAS, as a result of these cuts, some service providers have indicated that they may have to close their doors, discontinuing vital and sometimes unique services for the citizens of Tarrant County; and WHEREAS, local governments will be forced to make up the shortfall in funding, using local tax dollars for programs that are clearly the responsibility of the State. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, THAT the City of North Richland Hills strongly encourages the Texas Legislature, through its House Appropriations Committee and Senate Finance Committee, to appropriate interim funds to fully fund TCADA for its fiscal year beginning September 1, 2000. PASSED BY THE CITY COUNCIL this 8th day of May 2000. APPROVED: Charles Scoma, Mayòr ATTEST: City Secretary S TO FORM AND P APPROVED AS TO CONTENT: CITY OF NORTH RICHLAND HILLS _ Department: City Secretary Council Meeting Date: 5/8/2000 Subject: Appointment to Place 7 on the Planning & Zoning Agenda Number: GN 2000-047 Commission & Capital Improvement Advisory Committee The position of Place 7 on the Planning and Zoning Commission and the Capital Improvement Advisory Committee is vacant due to the election of Mr. Joe Tolbert to the City Council. Councilman Trevino is recommending that Mr. Richard Davis who is currently serving as alternate on both of these boards, be appointed to fill the unexpired term of Place 7. Recommendation: To consider the appointment of Mr. Richard Davis to Place 7 on the Planning and Zoning Commission and the Capital Improvement Advisory Committee, term expiring 6/30/2001. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available Department Head Signature Finance Director / ;.' CITY OF NORTH RICHLAND HILLS Department: Administration Council Meeting Date: 05/08/00 Subject: Consideration of TXU Tariff FilinQ Case- Resolution No. 2000-032 Agenda Number: GN 2000-048 On January 25, TXU filed a tariff case closing, modifying, and deleting certain existing tariffs. The City Council acted to suspend the rate case on the 28th of February, 2000. The PUC Administrative Law Judge on this case has recommended that the case be dismissed and heard in combination with another case dealing with other retail electric competition issues. Legal counsel representing a number of cities on this matter has recommended that the Cities deny the tariff filing. Staff has attached a resolution to deny this tariff case. Recommendation: Pass Resolution No. 2000-032 denying the tariff filing. Finance Review -(YV Department Head Signature Source of Funds: Bonds (GO/Rev.) Operating Budget Other Page 1 of RESOLUTION NO. 2000-032 WHEREAS, on or about January 25, 2000 TXU Electric filed an application with the City of North Richland Hills to close, modify or delete certain retail tariffs effective March 1, 2000; and WHEREAS, the City of North Richland Hills passed Resolution No. 2000-014 at their February 28, 2000 City Council meeting suspending the effective date of TXU Electric's application until May 30, 2000; and WHEREAS, the Public Utility Commission of Texas (PUC) has determined that it lacks authority to close or delete tariffs during a statutorily imposed rate freeze; and WHEREAS, the PUC's Administrative Law Judge in charge of the Docket No. 22051, TXU Electric's application to implement its proposed tariff changes in unincorporated areas, has proposed that the PUC dismiss the Company's application. THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. The relief requested by TXU Electric be denied. 2. A copy of this resolution be sent to the local representative of TXU Electric. PASSED AND APPROVED this 8th day of May 2000. APPROVED: Charles Scoma Mayor ATTEST: City Secetary APPROVED AS TO FORM AND LEGALITY: Attorney for the City Resolution No. 2000-032 Page 2 of 2 '; CITY OF NORTH RICHLAND HILLS ""-./ Department: Parks and Recreation Council Meeting Date: 5/8/00 Subject: Park & Recreation Board Recommendation for Tribute at Thornbridge Park Agenda Number: GN 2000-049 At the April 3, 2000 Park and Recreation Board meeting, members of the Park & Recreation Board submitted a request for consideration to honor Mr. J.B. Sandlin for his contributions to North Richland Hills and Northeast Tarrant County. After considerable discussion, the board members and staff were charged with conducting further evaluation of ideas and suggestions for the appropriate tribute to this community leader. Action on this item was tabled until the May 1, 2000 Park & Recreation Board meeting to allow time for further researc~ and evaluation. Staff generated concept renderings (attached) of a pedestal monument that would have a bronze plaque with a bas-relief of Mr. Sandlin's face and text reflecting his contributions to the community. The pedestal monument could be located in a small memorial plaza along the trail within Thombridge Neighborhood Park. The Park & Recreation Board reopened discussion on this item at their May 1, 2000 meeting. Suggestions, in addition to the pedestal monument, included renaming the park in honor of J.B. Sandlin or including a bronze plaque for a future 'Wall of Fame" to possibly be incorporated into the new Town Center Recreation Center when constructed in the next couple of years. "- After considerable discussion and evaluation of the options discussed, the Board voted unanimously to recommend that City Council authorize the addition of a memorial plaza with a pedestal style monument and bronze plaque at Thombridge Neighborhood Park and/or consider inclusion of a commemorative plaque as part of the proposed idea for a "Wall of Fame" that would highlight individuals who have made significant contributions throughout the history of North Richland Hills. It has been brought!ó the attention of staff that a local bank, which Mr. Sandlin served on as a member of their Board of .Directors, may be willing to underwrite part or all of the cost of the memorial tribute. Recommendation To authorize the addition of a memorial plaza with pedestal monument honoring Mr. J.B. Sandlin at the Thornbridge Neighborhood Park and/or inclusion of a plaque in his honor at a future proposed "Wall of Fame" at the new Town Center Recreation Center to be constructed in the upcoming years. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Avai a e Budget Director '-- ~ J~~_ , Department Head Signature - / (::V' Page 1 of 1 z m m o r m G) JJ » (f) (f) (f) OJ ::J Q.. - -. ::J ~ -. 0- c: r-+ CD s: m »s: zO oJJ OJ» »r (f)'1J mr ð c m CITY OF NORTH RICHLAND HILLS )epartment: Finance Council Meeting Date: 5/8/2000 Subject: Consideration of Action on all Matters Pertaining to the Agenda Number: GN 2000-50 Award and Sale of $2,720,000 in General Obligation Bonds And Approve Ordinance No. 2476 Bids will be received on Monday, May 8, 2000 for the sale of $2,720,000 in General Obligation Bonds for projects City Council approved as part of the 2000 budget in August of last year. Rating conferences with Standard and Poor's and Moody's were held recently. We received our General Obligation Bond ratings from both Moody's Investors Service and Standard and Poor's. Moody's upgraded the rating of A 1 to 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 Deputy City Manager, and will be submitted to City Council at the regular meeting on May 8th. 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, May 8th. 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 $2,720,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2000" at a true interest cost of % and adopt Ordinance 2476 authorizing the issuance of such bonds. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available ~t~---' Dep ment Head Signature Finance Director CITY OF NORTH RICHLAND HILLS Proposed 2000 General Obligation Bond Sale Street Projects Crane Road - (Martin Rd. to Amundson Rd.) Rufe Snow Drive C - (High Lawn Terrace to Bursey Road) Laura Street - (Ash St. to Colorado Blvd.) Riviera Drive - (Redondo St. to Blaney Ave.) Tourist Drive - (Denton Hwy to Bewley St.) Total Street Projects: Drainage Projects Big Fossil Erosion - (Broadway Dr. to Bewley/Onyx Dr.) Little Bear Creek - (Cato Dr. to Little Bear Creek) Walker Branch Channel - (Jerri Jo to Harwood Rd.) North Hills Addition - Various Locations Total Drainage Projects: TOTAL PROPOSED G. O. BOND SALE $300,000 78,000 300,000 300,000 209,000 $1,187,000 $282,000 240,000 600,000 411,000 $1,533,000 $2,720,000 ORDINANCE NO. 2476 AN ORDINANCE authorizing the issuance of "CITY OF NORTH RICH LAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2000"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; 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 pertaining thereto; and providing an effective date. WHEREAS, the City Council hereby finds and determines that $2,720,000 in principal amount of general obligation bonds approved and authorized to be issued at an election held on September 27, 1994 should be issued and sold at this time; a summary of the unissued general obligation bonds authorized at said election and at an election held September 10, 1985, identifying the principal amounts authorized, amounts heretofore issued and being issued pursuant to this Ordinance and amounts remaining to be issued subsequent hereto being as follows: Total Amounts Amounts Date of Amount Heretofore Being Unissued Election Purpose Authorized Issued Issúed Balance 9-10-85 Drainage $16,870,000 $16,350,500 $ 519,500 $ -0- 9-27-94 Streets 20,000,000 14,929,500 1,185,500 3,885,000 9-27-94 Drainage 1,865,000 850,000 1,015,000 -0- AND WHEREAS, the City 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 RICH LAND 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 $2,720,000, to be designated and bear the title "CITY OF NORTH RICH LAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2000" (hereinafter referred to as the "Bonds"), for pefmanent public improvements and public purposes, to wit: $1 ,534,500 for flood control/storm sewer improvements and $1,185,500 for street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of-way therefor, in accordance with authority conferred at the aforesaid election and in conformity 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 837342.1 ,_.________'..___.__..~"~___~.__'___~_"_mm_'..__.,._~_~_ dated May 1, 2000 (the "Bond Date"), and, other than the single fully registered Initial Bond referenced in Section 8 hereof, shall be in denominations of $5,000 or any integral multiple (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") and bear interest at the rate(s) per annum in accordance with the following schedule: Year of Principal Interest Stated Maturity Amount Rate(s) 2001 $ 140,000 % 2002 140,000 % 2003 140,000 % 2004 140,000 % 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 135,000 % 2015 135,000 % 2016 135,000 % 2017 135,000 % 2018 135,000 % 2019 135,000 % 2020 135,000 % 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 I:)n 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, 2001. , SECTION 3: Terms of pavment-paving Aaent/Registrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter callectihe "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, Texas, N.A., Fort Worth, Texas to serve as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records 837342.1 -2- relating to the registration, payment, exchange and transfer of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying AgenVRegistrar, all as provided herein, in accordance with the terms and provisions of a "Paying AgenVRegistrar Agreement", substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying AgenVRegistrar and the City may prescribe. The Mayor and City Secretary of the City are hereby authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The City covenants to maintain and provide a Paying AgenVRegistrar at all times until the Bonds are paid and discharged, and any successor Paying AgenVRegistrar 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 AgenVRegistrar. Upon any change in the Paying AgenVRegistrar 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 ofthe new Paying AgenVRegistrar. 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 AgenVRegistrar at its designated offices in Westerville, Ohio (the "Designated PaymenVTransfer 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 AgenVRegistrar (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 AgenVRegistrar, 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 PaymenVTransfer Office of the Paying AgenVRegistrar 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 AgenV 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: Redemction. (a)Octional Redemction. The Bonds having Stated Maturities on and after February 15, 2011, 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 AgenVRegistrar), on February 15, 2010 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. 837342.1 -3- 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. (b) Mandatorv Redemction. The Bonds having Stélted Maturities of February 15, 20 and February 15, 20 ("Term Bonds") shall be subject to mandatory redemption 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 Redemction Date Princical Amount Term Bonds due February 15, 20 Redemction Date Princical Amount Approximately forty-five (45) days prior to each mandatory redemption date the Term Bonds are to be mandatorily redeemed, the Paying Agent/Registrar shall select by lot the numbers of the Term Bonds within the applicable Stated Maturity to be redeemed on the next following February 15 from moneys set aside for that purpose in the Interest and Sinking Fund (as hereinafter defined). Any Term Bonds 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 pursuant to the operation of such mandatory redemption provisions 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. (ç;) Selection of Bonds for Redemction. 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 rédeemed within such Stated Maturity by lot. (d) Notice of Redemction. 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 837342.1 -4- 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, (Hi) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated PaymentlTransfer Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption, and has been called for redemption, and notice of redemption thereof has been duly given 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 Agent/Registrar. SECTION 5: Reaistration - Transfer - Exchanae of Bonds-Predecessor Bonds. The Paying Agent/Registrar 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 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 Bond (other than the Initial Bond(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 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. ~t the option of the Holder, Bonds (other than the Initial Bond(s) authorized in Section 8 hereof) may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated PayméiitlTransfer Office of the Paying Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying Agent/Registrar 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 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 837342.1 -5- 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 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 helq 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 "Benefi.~ial Owners") being recorded in the records of DTC and DTC Participants. .I:' 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 837342.1 -6- 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 - Reaistration. 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 substantially in the form provided in Section 90, 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 total principal amount of $2,720,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered 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 design~e thereof, and such other information and documentation as the Paying Agent/Registrar may réàsonably 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 837342.1 -7- ,.------_.~_.-----------_._---.._---.---_..._--"------- -----..--..--------------. ---------------'".._-------------- 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. B. Form of Definitive Bond. REGISTERED NO. REGISTERED $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BOND, SERIES 2000 Bond Date: May 1, 2000 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 irtØebted 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, 2001. 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; 837342.1 -8- ^.,-~-'"-----'-~------~-~-_. . provided, however, while this Bond is registered to Cede & Co., the payment of principal upon a partial redemption of the principal amount hereof may be accomplished without presentation and surrender of this Bond. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $2,720,000 (herein referred to as the "Bonds") for permanent public improvements and public purposes, to wit: $1,534,500 for flood control/storm sewer improvements and $1,185,500 for street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of-way 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"). The Bonds maturing on 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. The Term Bonds maturing on February 15, 20 are subject to mandatory redemption on February 15, 20 and February 15, 20 in the amounts set forth in the Ordinance. The Term Bonds maturing on February 15, 20 are subject to mandatory redemption on February 15, 20 and annually thereafter on each February 15 through February 15, 20 in the amounts set forth in the Ordinance. The particular Term Bonds to be redeemed on each redemption date shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal amount of Term Bonds for a Stated Maturity required to be redeemed pursuant to the operation of such mandatory redemption provisions may be reduced, at the option of the City, by the prinçipal amount of Term Bonds of like maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the p'aying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement. The Bonds maturing on and after February 15, 2011, 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, 2010, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. 837342.1 -9- ----.-----------------,----------.--.-----..------------------------------ 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 the Bonds to be redeemed in whole or in part, 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 said redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Bond redeemed in part. The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this 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 th~ 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 Payrnéi1t/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. 837342.1 -10- · ___'.H__·__,~,~____~~____~_ The City and the Paying AgenURegistrar, 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 AgenURegistrar, 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 AgenURegistrar, 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 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. /.' 837342.1 -11- 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 RICHLAND HILLS, TEXAS COUNTERSIGNED: Mayor City Secretary (SEAL) C. *Form of Registration Certificate of Comotroller of Public Accounts to aooear on Initial Bondls) onlv. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS THE STATE OF TEXAS ( ( ( ( REGISTER NO. OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS 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) 837342.1 -12- ----.---'-~-"'..,...~-.---.,^..,---.---,.-.." -'-_·~"_..··_·_--^·_--_··--~--;-_~.~__.w_~. D. Form of Certificate of Paving Aaent/Reaistrar to appear on Definitive Bonds only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered under the provisions of the within-mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying Agent/Registrar located in Westerville, Ohio, is the "Designated Payment/Transfer Office" for this Bond. Registration Date: BANK ONE, TEXAS, N.A., Fort Worth, Texas, as Paying Agent/Registrar By Authorized Signature *NOTE TO PRINTER: Do Not Print on Definitive Bonds 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 Bond and all rights thereunder, and hereby irrevocaþly constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitl;.!tion in the premises. // DATED: Signature guaranteed: 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. 837342.1 -13- ----~-----,----~_._-_._----_.__..._..__..""..__..----_._.....~_..__...- F. The Initial Bond(s) shall be in the form set forth in caragrach B of this Section, excect that the form of the sinale fullv registered Initial Bond shall be modified as follows: (i) immediately under the name of the bond the headings "Interest Rate _" and "Stated Maturity _ " shall both be omitted. (ii) Paragraph one shall read as follows: 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 OF MATURITY 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 twl:!lve 30-day months; such interest being payable on February 15 and August 15 in each year" commencing February 15, 2001. Principal installments of this Bond are payable in the year of maturity or on a prepayment date to the registered owner hereof by Bank One, Texas, N.A., Fort Worth, Texas, upon presentation and surrender, at its designated offices in Westerville, 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 cla~s 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 c::harges to the owner hereof and in any cóin 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: Lew 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 redemption at maturity or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby 837342.1 -14- _ .~. ._.u~^.>~'"~'_.__...."-~~___,__,,_~~......~_______ 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 2000 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 Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost or stolen. Every replacement Bond issued pursuant to this Section shall be a valid and binding obligatiQn, 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 837342.1 -15- -,-_._._._----_._~,.--~-_."--_._._._._---- 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/Hegistrar, 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 dE~posited 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. The term "Government Securities", as used herein, meéinS (i) direct noncallable obligations of the Upited 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 obligrations unconditionally guaranteed or insu~~d by the agency or instrumentality and on the date of their acquisition or purchase by the City atè rated as to investment quality by a nationally recogni:zed 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 837342.1 -16- ---_._-----"--"'"~-'"'~-_._._..__..-.._-._.--"..~-~.._.."~-----_._.__._" 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 ofthe 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 tothe 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, the following terms shall have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1 (b) of the , Regulations. /.' "Gross Proceeds" means any proceeds as defined in Section 1.148-1 (b) ofthe 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. 837342.1 -17- ~~-~~-~.._~_._-------_.._-_..~.~-_._-"-"---~--_...~--- "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds I::>f the Bonds are invested and which is not acquired to carry out the govemmentéll 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 alre applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. ThE~ City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, ofthe 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. (c) No Private Use or Private Pavments. 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, çonstruction or improvement of which is to be finanœd or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), and not use or permit the use of ,.such Gross Proceeds (including all contractual arrangements with terms different ,I,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 a1ccept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the 837342.1 -18- Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds (including property financed with Gross Proceeds of the Refunded Obligations), other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at 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 ofthe Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 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 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. 837342.1 -19- ___~________~~__..___'m.____ .__._.__ (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 Elxcludability 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 c:orrect 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 Arbitraae Profits. Except to the e><:tent 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 S.tated 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 los~s than would have resulted if the transac.tion had been at arm's length and had the Yield of thE~ Bonds not been relevant to either party:" (j) Elections. The City hereby directs and authorizl~s the Mayor, City Manager, Deputy 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 Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. 837342.1 -20- .' -'-"~-'~---'~_"_~__~__h~""""___,___~_~_,_,,__,,_~___ SECTION 15: Sale of the 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: Control and Custody of Bonds. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Secretary, City Manager, Deputy 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 17: Official Statement. The use of the Preliminary Official Statement, dated April 24, 2000, in the offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects, and the City Council hereby finds that the information and data contained in said Preliminary Official Statement pertaining to the City and its financial affairs is true and correct in all material respects and no material facts have been omitted therefrom which are necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, City Secretary, City Manager or Director of Finance, one or more of said <;>fficials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated May 8, 2000, in the reoffering, sale and delivery of the Bonds to the public. ./ 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 837342.1 -21- 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 clasis 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, nE!ither 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 giv43n, 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 precede!nt 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 delivE!red 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 c:ancellation any Bonds previously certified or registered and delivered which the City may have a,cquired 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: Market Ocinion. The Purchasers' obligation to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & Jaworski, L.L.P., Dallas, Texas, approving the Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for the Bonds. 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 Bonds in the event the book entry only system shall be discontil')ued. 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 Ordilnance and all its provisions being 837342.1 -22- .-..---_.~."'~~-~'--_.,.~_.--..-...~-~~--- 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. SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 28: Severability. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 29: Continuing Disclosure Undertaking. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR' means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. ,iSEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer;: or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2000) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 17 of this Ordinance, being the information described in Exhibit B hereto. Financial statements to be provided shall be 837342.1 -23- (1) prepared in accordance with the accounting principles dlescribed 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 fimmcial 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 NHMSIR 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 operatilng 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 inclluded by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events! with respect to the Bonds, if such event is material within the meaning of the federal securities laws: 1. 2. 3. 4. 5. 6. Bonds; 7. 8. 9. 10. and Principal and interest payment delinquencies; Non-payment related defaults; Unscheduled draws on debt service reslerves reflecting financial difficulties; Unscheduled draws on credit enhancements reflecting financial difficulties; Substitution of credit or liquidity provid4~rs, or their failure to perform; Adverse tax opinions or events affe(;ting the tax-exempt status of the Modifications to rights of holders of the~ Bonds; Bond calls; Defeasances; Release, substitution, or sale of property securing repayment of the Bonds; 11 . Rating changes. The City shall notify any SID and either each NRMSIH or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subseçtion (b) of this Section by the time required by such Section. / :. .' . (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." 837342.1 -24- ..W_~"^~·__~_~,.____w~.--..,_"._......--.~__~" The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendrt;lent) of the Outstanding Bonds consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be amended from time to time or repealed by the City if ~the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Bonds from lawfully purchasing or selling Bonds in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data filed with each NRMSIR and SID pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. 837342.1 -25- SECTION 30: Public Meetina. 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 31: Effective Date. This Ordinance shall be iln full force and effect from and after its passage on the date shown below and it is so ordained. PASSED AND ADOPTED, this May 8, 2000. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: (City Seal) City Attorney ,. ./-' 837342.1 -26- - ----_._-'-~"._~-'"~-~- EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT THIS AGREEMENT entered into as of May 8,2000 (this "Agreement"), by and between the City of North Richland Hills, Texas (the "Issuer"), and Bank One Texas, N.A., Fort Worth, Texas, a national association duly organized and existing under the laws of the United States of America, (the "Bank"). RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of North Richland Hills, Texas, General Obligation Bonds, Series 2000" (the "Securities") in the aggregate principal amount of $2,720,000, which Securities are scheduled to be delivered to the initial purchasers on or about June 13, 2000; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for' and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Accointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer herebx·appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02. Comcensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of 837396.1 "~--_._-_._._-<----_._---_.---_..._.._------_.....---_.--_._----_._.,._.._---~---'----'-~.'"------ the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compeinsation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the offices of the Bank located in Westerville, Ohio at the address appearing in Section 3.01 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the goveming body of the Issuer pursuant to which the Securities are iSSUE!d, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means thEI Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the Mayor, City Manager, A:ssistant City Manager, Director of Finance, or City Secretary, anyone or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. /- "Person" means any individual, corporation, pal1nership, joint venture, association, joint stock company, trust, unincorporated organizati()n or government or any agency or political subdivision of a govemment. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been re~~istered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). 837396.1 -2- EXHIBIT A .-.'^"< '~^~'~.~"''''.~.~''----~-~-~"-,--,-,--,----- "Record Date" means the last business day of the month next preceding each interest payment date. "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Securities" means the securities defined in the recital paragraphs herein. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. ' Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01. Duties of Paving Agent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following offices: /- Bank One, Texas, N.A. Attention: Securities Transfer 235 West Schrock Road Westerville, Ohio 43081-0393 As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record Date (as defined in the Resolution). All payments of principal and/or interest on the Securities to 837396.1 -3- EXHIBIT A the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the fiduciary account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. ARTICLE FOUR REGISTRAR Section 4.01. Security Reaister - Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recordin!g the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and Bank may prescribe. The Bank represents and warrants its office in Fort Worth, Texas will at all times have immediate access to the Security Register by electronic or other means and will be capable at all times of producing a hard copy of the Security Register at its Fort Worth office for use by the Issuer. All transfer!), exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchan~le shall be duly endorsed or be accompanied by a written instrument of transfer, the signature! on which has been guaranteed by an officer of a federal or state bank or a member of the Nationall Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder :>r the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an excha!1ge or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying AgenURegistrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. 837396.1 -4- EXHIBIT A ~ _ N.._._...__.,___._______~<___,...._,~____ Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. The Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05. Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, cancel and destroy, pursuant to the Securities and Exchange Act of 1934, all Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06. Mutilated. Destroved. Lost or Stolen Securities. The Issuer hereby instructs the Bank, subject to the provisions of Section 11 of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an overissuance. In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authe,nticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. 837396.1 -5- EXHIBIT A ARTICLE FIVE THE BANK Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of tht9 opinions expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasionable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the c)wnership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counselor any opinion of counsel shall be full and complete authorization émd protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. /Section 5.03. Recitals of Issuer. The recitals contain~~d herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5.04. Mav Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwis~~ deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. 837396.1 -6- EXHIBIT A ~ _. «"^~.w~·"~,___~.~,,,~.~..._,,,"_.~.,~~,___._ Section 5.05. Monevs Held bv Bank - Fiduciarv Account/Collateralization. A fiduciary account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and disbursement of moneys received from the Issuer hereunder for the payment of the Securities, and money deposited to the credit of such account until paid to the Holders of the Securities shall be continuously collateralized by securities or obligations which qualify and are eligible under both the laws of the State of Texas and the laws of the United States of America to secure and be pledged as collateral for fiduciary accounts to the extent such money is not insured by the Federal Deposit Insurance Corporation. Payments made from such fiduciary account shall be made by check drawn on such fiduciary account unless the owner of such Securities shall, at its own expense and risk, request such other medium of payment. The Bank shall be under no liability for interest on any money received by it hereunder. Subject to the applicable unclaimed property laws of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on any Security and remaining unclaimed for three years after final maturity of the Security has become due and payable will be paid by the Bank to the Issuer, and the Holder of such Security shall thereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to such moneys shall thereupon cease. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank its directors, officers and employees, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Intercleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. Section 5.08. DTC Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. 837396.1 -7- EXHUl~T ~4 _~_.____._.___._.m~__'_____·_'__ Section 6.02. Assianment. This Agreement may not bl9 assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be !~iven or fumished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expn9ssed or not. Section 6.06. Severabilitv. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of Aareement. Nothing herein, E~xpress or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08. Entire Aareement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09. Counteroarts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and aill of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be eff~9ctive until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a :successor Paying Agent/Registrar. Furthe~nnore, the Bank and Issuer mutually agree that the effective date of an early termination of this' Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. The resigning Paying Agent/Registrar may petition any court of competent jurisdiction for the appointment of a successor Paying Agent/Registrar if ¡an instrument of acceptance by a successor Paying Agent/Registrar has not been delivered to the resigning Paying Agent/Registrar within sixty (60) days after the giving of such notice of resignation. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records 837396.1 -8- EXHIBIT A4 .. "'>---"-~·~'---""'··-"___'·"_____~n._.,,"~~~...~<.._,,"___ relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governina Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. BANK ONE, TEXAS, N.A., Fort Worth, Texas BY Title: [SEAL] Attest: Address: 500 Throckmorton Suite 802 Fort Worth, Texas 76102 Title: CITY OF NORTH RICH LAND HILLS, TEXAS BY Mayor (CITY SEAL) Attest: Address: P. O. Box 820609 North Richland Hills, Texas 76180 City ~~cretary 837396.1 -9- EXHIBIT A --------------.---------.-.---- Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 29 of' this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix B, but for the most recently concluded fiscal year. 2. The information under Tables 1 through 6 and 8 through 15. Accounting Principles The accounting principles referred to in such Section are the generally accepted accounting principles as applicable to governmental units a~) prescribed by The Government Accounting Standards Board. 837342.1 CITY OF NORTH RICHLAND HILLS i:>epartment: Finance Council Meeting Date: 5/8/2000 Subject: Consideration of Action on all Matters Pertaining to the Agenda Number. GN 2000-51 Award and Sale of $2,315,000 in Tax and Waterworks and Sewer System Revenue Certificates of Obligation, Series 2000 And approve Ordinance No. 2477 Bids will be received on Monday, May 8, 2000 for the sale of $2,315,000 in Tax and Waterworks and Sewer System Revenue Certificates of Obligation for projects City Council approved as part of the 2000 budget in August of last year. Rating conferences with Standard and Poor's and Moody's were held recently. We received our Certificates of Obligation ratings from both Moody's Investors Service and Standard and Poor's. Moody's upgraded the rating from A 1 to Aa3, 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 Deputy City Manager and will be submitted to City Council at the regular meeting on May 8th. 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 JaWDrski. The enclosed ordinance is for your consideration to be passed on Monday, May 8th. 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 $2,315,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000" at a true interest cost of _% and adopt Ordinance 2477 authorizing the issuance of such Certificates of Obligation. Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~~~_re Finance Review Account Number Sufficient Funds Available CITY OF NORTH RICHLAND HILLS Proposed 2000 Certificates of Obligation Sale Street Projects Rufe Snow Drive B - (Fair Meadows to High Lawn Terrace) Rufe Snow Drive C - (High Lawn Terrace to Bursey Road) Total Street Projects: Drainage Projects Big Fossil Erosion - (Broadway Dr. to Bewley/Onyx Dr.) Total Drainage Projects: Park Projects Park Land Acquisitions for neighborhood parks in six sites, approximately 35 acres Total Park Projects: TOTAL PROPOSED C. O. SALE $822,500 343,500 $1,166,000 $249,000 $249,000 $900,000 $900,000 $2,315,000 ORDINANCE NO. 2477 AN ORDINANCE authorizing the issuance of "CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2000"; 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 limited pledge of the net revenues from the operation of the City's Waterworks and Sanitary 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 Agent/Registrar 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 $2,315,000 for the purpose of paying contractual obligations to be incurred for (i) street improvements, including drainage and utility line relocations and the purchase of land and right-of-way, and (ii) 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 _' 2000 and April , 2000, the date of the first publication of such nòtice 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 5% or more 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 all of the certificates of obligation described in such notice should be issued and sold at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICH LAND HILLS, TEXAS:- SECTION 1: Authorization. Desianation. Princioal Amount. Puroose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $2,315,000, to be designated and bear the title "CITY OF NORTH RICH LAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2000" (hereinafter referred to as the "Certificates"), for the purpose of paying contractual obligations to be incurred for (i) street improvements, including drainage and utility line relocations and the purchase of land and right-of-way, and (ii) 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. 837380.1 SECTION 2: Fully Registered Obligations - Authorized Denominations-Stated Maturities-Date. The Certificates are issuable in fully registened form only; shall be dated May 1, 2000 (the "Certificate Date") and, other than the single fully registered Initial Certificate referenced in Section 8 hereof, 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 per annum rates in accordance with the following schedule: Year of Principal Interest Stated Maturity Amount Rate 2001 $120,000 % 2002 120,000 % 2003 120,000 % 2004 115,000 % 2005 115,000 % 2006 115,000 % 2007 115,000 % 2008 115,000 % 2009 115,000 % 2010 115,000 % 2011 115,000 % 2012 115,000 % 2013 115,000 % 2014 115,000 % 2015 115,000 % 2016 115,000 % 2017 115,000 % 2018 115,000 % 2019 115,000 % 2020 115,000 % 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). Interest on the Certificates shall be payable on February 15 and August 15 of each year, commencing February 15, 2001. SECTION 3: Terms of Payment-Pay in a Aaent/Registrclr. 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 tranSfE!r 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 p¡ayment of public and private debts, and shall be without exchange or collection charges to the Hc)lders. 837380.1 -2- The selection and appointment of Bank One, Texas, N.A., Fort Worth, Texas 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 asExhibit 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 redemption only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its designated offices in Westerville, Ohio (the "Designated Paymentrrransfer Office"). Interest on the Certificates shall be paid to the Holders whose. names appear in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Designated Paymentrrransfer 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 théreafter, 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: Redemction. (a) Octional Redemction. The Certificates having Stated Maturities on and after February 15, 2011, 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 837380.1 -3- (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2010, 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 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) Mandatory Redemction. The Certificates havingl Stated Maturities of February 15, 20 and February 15, 20 ("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 Redemction Date Princical Amount Term Certificates due February 15, 20 Redemction Date Princical Amount Approximately forty-five (45) days prior to each mandatory redemption date the Term Certificates are to be mandatorily redeemed, 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 pric:>r redemption shall be paid on the date of their Stated Maturity. The principal amount of the Term Certificates for a giv1en Stated Maturity required to be redeemed pursuant to the operation of such mandatory redemption provisions may be reduced, at the option ofthe City, by the principal amount of Term Certifi~:ates 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 pricå not exceeding the principal amount of such Term Ciertificates 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 mandatclry redemption requirement. (c) Selection of Certificates for Redemction. 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. 837380.1 -4- (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, (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 AgenURegistrar 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 PaymenUTransfer Office of the Paying AgenURegistrar 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: Reaistration - Transfer - Exchanae of Certificates-Predecessor Certificates. The Paying AgenURegistrar 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 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 a form satisfactory to the Paying AgenURegistrar. Upon surrender of any Certificate (other than the Initial Certificate(s) authorized in Section 8 hereof) for transfer at the Designated Payment/Transfer 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 Certificates of authorized denominations, 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, 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 PaymenUTransfer Office of the Paying AgenURegistrar. Whenever any 837380.1 -5- Certificates are surrendered for exchange, the Paying Agent/Hegistrar shall register and deliver new Certificates to the Holder requesting the exchange. All Certificates issued in any transfer or exchange of CE!rtificates shall be delivered to the Holders at the Designated PaymentfTransfer 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 hl9rein 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. Certificates cancelled by reason of an exchange or transfør 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 CertifiiCate 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 ~eplacement Certificate has been issued, registered and delivered in lieu thereof pursuant to the provisions of Section 19 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-Entrv Onlv 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 uSle of "Book-Entry Only" securities clearanée, settlement and transfer system provided by The DE!pository 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 Certificates shall be deposited with DTC who shall hold said Certificates for its pal1icipants (the "DTC Participants") and, 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. 837380.1 -6- In the event OTC 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 OTC 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 provide for the Certificates to be issued and delivered to OTC 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 - Registration. 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 officers of the City on the date of adoption of this Ordinance 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 the Bond Procedures Act of 1981, as amended. 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 90, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, 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 Certificatels). The Certificates herein authorized shall be initially issued either (i) as a single fully registered certificate in the total principal amount of $2,315,000 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 Agent/Registrar, 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 837380.1 -7- 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 Certifi4:ates, 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 Certificates, shall be substantially in the forms set forth in this Section with such clppropriate 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 ProcEldures 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. The Certificates, including the Initial Certificate(s), shall be typewritten, printed, lithographed, or photocopied, or produced in any other similar manner, all as determined by the officers executing such Certificates as evidenced by their exe(~ution. B. Form of Certificates. REGISTERED NO. REGISTERED $- UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWEIR SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATE OF OBLIGATION, SERIES 2000 Certificate Date: May 1, 2000 Interest Rate: Stated Maturity: CUSIP NO: Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to ciS 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 thEI Registered Owner named above, 837380.1 -8- 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, 2001. Principal of this Certificate is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor; provided, however, while this 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 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 $2,315,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations to be incurred for (i) street improvements, including drainage and utility line relocations and the purchase of land and right-of-way, and (ii) 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 date of redemption, and without premium, on the dates and in the amounts set forth in the Ordinance. Certificates maturing February 15, 20 are subject to mandatory redemption on February 15, 20 and February 15, 20 in the amounts set forth in the Ordinance. Certificates maturing February 15, 20 are subject to mandatory redemption on February 15, 20 and annually thereafter on each February 15 through February 15, 20 in the amounts set forth in the Ordinance. The particular Term Certificates of a given 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 given maturity required to be redeemed pursuant to the operation of such mandatory redemption provisions may be reduced, at the option of the City, by the principal amount of Term 837380.1 -9- Certificates of like maturity which, at least 50 days prior to a mémdatory 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 thE~reof, 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, 2011. 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, 2010, 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 postagl~ 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 suclh 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 date of redemption are held for the purpose of such payment by the Paying Agent/Registrar, 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 Cel1ificate 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 PaymentfTransfer Office of the Paying Agent/Registrar, 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 IDf 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 Agent/Registrar shall not be required to transfer such Certificate to an assignee of the registered owner within 45 days of the rE~demption date therefor; provided, however, such limitation on transferability shall not be applicabl¡e 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 from a limited pledge of the Net Revenues (as defined in the Ordinance) of the City's combined Waterworks and Sanitary Sewer System (the "System"), such pledge of the Net R,evenues for the payment of the Certificates being limited to an amount not in excess of $1 ,000 and, together with a parity pledge securing the payment of the Previously Issued Certificates, being junior and subordinate to the lien on and pledge of such Net Revenues securing the payment of '''Prior Lien Obligations" (as defined in the Ordinance) now outstanding and hereafter issued by the City. In the Ordinance, the City 837380.1 -10- 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 PaymentlTransfer Office of the Paying Agent/Registrar, 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 properties constituting the System; the Net Revenues pledged to the payment of the principal of and interest on the Certificates; the nature and extent and manner of enforcement of the pledge; 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 Agent/Registrar; the terms and provisions upon which the tax levy and the pledges, charges and covenants made therein 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 PaymentlTransfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satis~actory 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 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 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 Certificate 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 Certificates is duly authorized by law; that 837380.1 -11- all acts, conditions and things required to exist and be done plrecedent 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 Wê'~y be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be govemed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City hels caused this Certificate to be duly executed under the official seal of the City. CITY OF NORTH RICH LAND HILLS, TEXAS COUNTERSIGNED: Mayor City Secretary (SEAL) 837380.1 -12- C. *Form of Reaistration Certificate of Comptroller of Public Accounts to appear on Initial Certificatels) onlv. REGISTRATION CERTIFICATE OF COMPTROL-LER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS ( ( ( ( REGISTER NO. THE STATE OF TEXAS 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 Paving AgenURegistrar to appear on Definitive Certificates onlv. 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 Westerville, Ohio, is the "Designated PaymenUTransfer Office" for this Certificate. Registration Date: BANK ONE, TEXAS, N.A., Fort Worth, Texas, as Paying AgenURegistrar By Authorized Signature 837380.1 -13- E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transfereE~:) (Social Security or other identifying number: ) the within Bond and élll rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for re~istration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment Signature guaranteed: must corresp()nd with the name of the registered owner as it appears on the face of the within BlOnd in every particular. F. The Initial Certificate(s) shall be in the form set forth in caragràch B of this Section, excect that the form of a sinale fullv reaistered Initial Certificate shall be modified as follows: (i) immediately under the name of the certificate 1the 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 élS 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). 837380.1 -14- (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 interest being payable on February 15 and August 15 of each year, commencing February 15, 2001. Principal installments of this Certificate are payable at its Stated Maturity or on a prepayment date to the registered owner hereof by Bank One, Texas, N.A., Fort Worth, Texas (the "Paying Agent/Registrar"), upon presentation and surrender, at its designated offices in Westerville, Ohio (the "Designated Paymentrrransfer 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. That 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 "Certificates" shall mean the $2,315,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000" authorized by this Ordinance. (b) The term "Certificate Fund" shall mean the special Fund created and established under the provisions of Section 11 of this Ordinance. (c) 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. , (d) The term "Fiscal Year" shall mean the twelve month financial accounting period for the System ending September 30th of each year; provided, however, the City, by ordinance, may change the Fiscal Year to another period of not less than twelve calendar months. (e) 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 837380.1 -15- 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. (f) The term "Gross Revenues" shall mean alii income and revenues of every nature derived or received from the operation and ownership (excluding refundable meter deposits, restricted gifts and grants in aid of construction, impact fees charged developers and special assessments a!~ainst landowners) of the System, including earnings and income derived from the investment or deposit of moneys in any special funds or accounts created and established for the payment and security of the Prior Lien Obligations and other obliglations payable solely from and secured only by a lien on and pledge of the Net RI~venues. (g) The term "Operating and Maintenance Expenses" shall mean all current expenses of operating and maintaining the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the jµdgment of the City Council, reasonably and fairly exercised, are n1ecessary 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 al:cident or condition which would otherwise impair obligations payable from Net Re!venues shall be deducted in determining "Net Revenues". Depreciation charges shall not be considered Operating and Maintenance Expenses. Operating and Maintenance Expenses shall include payments under contracts for the purchase of water supply, treatment of sewage or other materials, goods or services for the System to the extent authorized by law and the provisions of such contract. (h) The term "Net Revenues" shall mean Gross, Revenues of the System, with respect to any period, after deducting the System's Operating and Maintenance Expenses during such period. (i) 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 AgenURegistrar or delivered to the Paying AgenURegistrar for cancellation; 837380.1 -16- 837380.1 (2) those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 20 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 19 hereof. ü) The term "Previously Issued Certificates" shall mean the outstanding (i) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1992", dated February 1, 1992, originally issued in the principal amount of $900,000, (ii) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1997", dated April 15, 1997, originally issued in the principal amount of $2,755,000, (iii) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1998", dated May 1, 1998, originally issued in the principal amount of $8,180,000, and (iv) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1999", dated April 15, 1999, originally issued in the principal amount of $3,865,000. . (k) The term "Prior Lien Obligations" shall mean all revenue bonds or other obligations, now outstanding and hereafter issued, payable from and secured, in whole or in part, 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 originally issued in the principal amount of $5,135,000. (I) The term "System" shall mean all properties, facilities and plants currently owned, operated and maintained by the City for the supply, treatment and transmission of treated potable water and the collection, treatment and disposal of water-carried wastes, together with all future extensions, improvements, replacements and additions thereto; provided, however, that notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term "System" shall not mean to include facilities of any kind which are declared not to be a part of the System and which are acquired or constructed by or on behalf of the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which are not Prior Lien Obligations but which are payable from and secured by other liens on and pledges of any revenues, sources or payments, not pledged to the payment of the Prior Lien Obligations including, but not limited to, special contract -17- revenues or payments received from any other legal entity in connection with such facilities. SECTION 11: Certificate Fund. That, 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 2000 TAX AND REVENUE CERTIFICATE OF OBLIGATION FUND", and all moneys deposited to the credit of such Fund shall be kept and maintained in a 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 Certificalte Fund an amount sufficient to pay the amount of principal and/or interest falling due on the Certifil::ates, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will caLise immediately available funds to be deposit~d 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 identijfred 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 inve~tments 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. SECTION 12: Tax Levv. That, 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 for the current year and each succeeding year thereafter while said Certificates or any interest thereon shall remain Outstanding, a sufficient tax on each one hundred dollars' valuation of taxable property in said City, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be asséssed and collected each year and applied to th49 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 Coundl 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. Accrued interest and premium, if any, received from the purchasers of the Certificates shall be deposited to the Certificate Fund. In addition, any surpllUs proceeds from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Fund, and 837380.1 -18- such amounts so deposited shall reduce the sums otherwise required to be deposited in said Fund from ad valorem taxes. SECTION 13: Limited 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, the Net Revenues of the System in an aggregate amount not to exceed $1,000 are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates, and the limited pledge of $1,000 of the 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 shall be on an parity in all respects with the lien on the Net Revenues securing the payment of the Previously Issued Certificates. Furthermore, such lien on and pledge of the Net Revenues securing the payment of the Certificates shall be valid and binding without further action by the City and without any filing or recording except for the filing of this Ordinance in the records of the City. SECTION 14: System Fund. The City covenants and agrees that revenues derived from the operation of the System shall be accounted for separate and apart from all other funds, accounts and moneys of the City, and all such revenues 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 "Water and Sewer System Fund" (hereinafter called the "System Fund"). All moneys deposited to the credit of the System Fund shall be allocated, appropriated and budgeted 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 Operating and Maintenance Expenses of the System as defined herein or required by statute to be a first charge on and claim against the Gross Revenues of the System, 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 limited amounts pledged to the payment of the Previously Issued Certificates and the Certificates. 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: 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. 837380.1 -19- SECTION 16: Scecial Covenants. The City hereby furiher 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 hemin 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, Gc)vernment Code, Sections 1502.56 and 1502.58 and V.T.C.A., Local Governmenlt Code, Sections 271.041, et seq. (b) Other than for the payment of the CertifiC<3tes, the Previously Issued Certificates identified in Section 100), and the Prior LiEm Obligations identified in Section 10(k) hereof, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation o,f the City or of the System. SECTION 17: Issuance of Prior Lien Obliaations. The! City 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. Prior Lien Obligations hereafter issued may be 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 Certificates and the Previously Issued Certificates. SECTION 18: Acclication of Prior Lien Obligations Covenants and Aareements. It is the intention of this governing body and accordingly hereby rec:ognized 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 Rolders of the Prior Lien Obligations. Notwithstanding the above, any change or modification affecting the application of revenues derived from the operation of the System shall not impair the obligation of contract with respect to the limited piledge of revenues herein made for the payment and security of the Certificates. SECTION 19: 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 d~~stroyed, lost or stolen Certificate, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying 837380.1 -20- 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 20: 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 (to the extent such limited pledge of Net Revenues shall not have been discharged or terminate~ by prior payment of principal of or interest on the Certificates) 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 the prin"cipal 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 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 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 837380.1 -21- Certificates, or any principal amount(s) thereof, or interest thE~reon 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 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 Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. SECTION 21: 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 conS~9nt 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 22: Covenants to Maintain Tax-ExE~mDt Status. 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 a~ainst payment therefor. "Code" means the Intemal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Dalte. "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) ofthe 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. 837380.1 -22- "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 837380.1 -23- (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 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 cn:!ates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement: or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property ,acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Higher Yield. Except to the extEmt permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shiall 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 Recort. 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 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 Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates with other money 837380.1 -24- of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (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 Certificate 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. (~) 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. G) Elections. The City hereby directs and authorizes the Mayor, City Secretary, City Manager, Deputy City Manager, and Director of Finance, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem &'37380.1 -25- 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 23: Sale of Certificates. Pursuant to a public sale for the Certificates, the bid submitted by (herein rE~ferred 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 pélr and accrued interest to the date of delivery, plus a premium of $ , is hereby approvE!d 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. SECTION 24: Official Statement The use of the Preliminary Official Statement, dated April 24, 2000, in the offering and sale of the Certificates is hereby ratified, confirmed and approved in all respects, and the City Council hereby finds that the information and data contained in said Preliminary Official Statement pertaining to thE! City and its financial affairs is true and correct in all material respects and no material facts have been omitted therefrom which are necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The final Official Statement, which refleGts the terms of sale (together with such changes approved by the Mayor, City Secretary, City Manager or Director of Finance, one or more of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated May 8,2000, in the reoffering, sale and delivery of the Certificates to the public. . SECTION 25: Proceeds of Sale. The proceeds of SalE! of the Certificates, excluding the accrued interest received from the Purchasers, shall be deposited in a construction fund maintained at the City's depository bank. Pending expendiiture for authorized projects and purposes, such proceeds of sale may be invested in authorize!d investments and, subject to the provisions of Section 22(h) hereof, any investment earnings realized shall 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 atter completion of all authorized projects or purposes and paying or making provision for thE~ payment of the amounts owed pursuant to Section 22(h) hereof shall be deposited to the credit of the Certificate Fund. SECTION 26: Control and Custodv of Proceedinas. 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 clf 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 Secretary, City Manager, Deputy 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 Certificates, including a certification as to facts, estimates, circumstances and 837380.1 -26- 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 Agent/Registrar, 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 27: 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 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 28: Cancellation. All Certificates 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 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 Agent/Registrar. All cancelled Certificates held by the Paying Agent/Registrar shall be returned to the City. SECTION 29: Market Ocinion. 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 30: 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. 837380.1 -27- SECTION 31: 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 soJe and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 32: Inconsistent Provisions. All ordinance!s, 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 33: 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 34: Effect of Headinas. The Section headin'9s herein are for convenience only and shall not affect the construction hereof. SECTION 35: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include thE~ plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 36: 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 37: Continuina 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 Rulernaking Board. "NRMSIR' means each person whom the SEe 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. 837380.1 -28- (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, 2000) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 24 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. 2. 3. 4. 5. 6. 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. Principal and interest payment delinquencies; Non-payment related defaults; Unscheduled draws on debt service reserves reflecting financial difficulties; Unscheduled draws on credit enhancements reflecting financial difficulties; Substitution of credit or liquidity providers, or their failure to perform; Adverse tax opinions or events affecting the tax-exempt status of the 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. 837380.1 -29- (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 bemefit 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 performin!g 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 tel 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 le!~al requirements, a change in law, or a change in the identity, nature, status, or type of operaUons of the City, but only if (1) the provisions of this Section, as so amended, would have permitted underwriters to purchase or 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 837380.1 -30- 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 38: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551 as amended. SECTION 39: Effective Date. This Ordinance shall be in full force and effect from and after its passage on the date shown below and it is so ordained. PASSED AND ADOPTED, this May 8, 2000. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: City Attorney (City Seal) 837380.1 -31- EXHi8'T A ~ PAYING AGENT/REGISTRAR AGREEMENT THIS AGREEMENT entered into as of May 8,2000 (this "Agreement"), by and between the City of North Richland Hills, Texas (the "Issuer"), and Bank One Texas, N.A., Fort Worth, Texas, a national association duly organized and existing under the laws of the United States of America, (the "Bank"). RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of North Richland Hills, Texas, Tax and WatelWorks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000" (the "Securities") in the aggregate principal amount of $2,315,000, which Securities are scheduled to be delivered to the initial purchasers on or about June 13, 2000; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Accointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be <responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02. Comcensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar 837399.1 for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compe!nsation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the offices of the Bank located in Westerville, Ohio at the address appearing in Section 3.01 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are iSSUE!d, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means thE! Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the Mayor, City Manager, Assistant City Manager, Director of Finance, or City Secretary, anyone or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bétnk is required or authorized to be closed. "Person" means any individual, corporation, par1nership, joint venture, association, joint stock company, trust, unincorporated organizaticln or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been re~istered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). 837399.1 -2- EXHIBIT A ~ "Record Date" means the last business day of the month next preceding each interest payment date. "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Securities" means the securities defined in the recital paragraphs herein. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01. Duties of Pavina Agent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following offices: Bank One, Texas, N.A. Attention: Securities Transfer 235 West Schrock Road Westerville, Ohio 43081-0393 As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record 837399.1 -3- EXHIBIT Ai4 Date (as defined in the Resolution). All payments of principal and/or interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the fiduciary account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. ARTICLE FOUR REGISTRAR Section 4.01. Securitv Reaister - Transfers and Exchanaes. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recordinø the names and addresses of the Holders of the Securities, the transfer, exchange and replac:ement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and Bank may prescribe. The Bank represents and warrants its office in Fort Worth, Texas will at all times have immediate access to the Security Register by electronic or other means and will be capable at all times of producing a Ihard copy of the Security Register at its Fort Worth office for use by the Issuer. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange! or transfer by the Holders thereof will be completed and new Securities delivered to the Holder air the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying Agent/Registrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. 837399.1 -4- EXHIBiT Ai" Section 4.03. Form of Securitv Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Security Holders. The Bank will proYide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. The Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05. Return of Cancelled Certificates. The Bank will; at such reasonable intervals as it determines, cancel and destroy, pursuant to the Securities and Exchange Act of 1934, all Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06. Mutilated. Destroyed. Lost or Stolen Securities. The Issuer hereby instructs the Bank, subject to the provisions of Section 19 of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an overissuance. In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. 837399.1 -5- EXHiBH A . ARTICLE FIVE THE BANK Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of th~3 opinions expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank 'Was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance elf any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory tc) it against such risks or liability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parti~3s. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counselor any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5.04. Mav Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. 837399.1 -6- EXHIB~T A'~ Section 5.05. Monevs Held bv Bank - Fiduciary Account/Collateralization. A fiduciary account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and disbursement of moneys received from the Issuer hereunder for the payment of the Securities, and money deposited to the credit of such account until paid to the Holders of the Securities shall be continuously collateralized by securities or obligations which qualify and are eligible under both the laws of the State of Texas and the laws of the United States of America to secure and be pledged as collateral for fiduciary accounts to the extent such money is not insured by the Federal Deposit Insurance Corporation. Payments made from such fiduciary account shall be made by check drawn on such fiduciary account unless the owner of such Securities shall, at its own expense and risk, request such other medium of payment. The Bank shall be under no liability for interest on any money received by it hereunder. Subject to the applicable unclaimed property laws of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on any Security and remaining unclaimed for three years after final maturity of the Security has become due and payable will be paid by the Bank to the Issuer, and the Holder of such Security shall thereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to such moneys shall thereupon cease. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank, its directors, officers and employees, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Intercleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. Section 5.08. DTC Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. 837399.1 -7- EXHIBIT A 1 Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authori.zation, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severabilitv. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of Agreement. Nothing herein, E!XpreSs or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08. Entire Aareement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09. Counteroarts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. The resigning Paying Agent/Registrar may petition any court of competent jurisdiction for the appointment of a successor Paying Agent/Registrar if an instrument of acceptance by a successor Paying Agent/Registrar has not been delivered to the resigning Paying Agent/Registrar within sixty (60) days after the giving of such notice of resignation. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records 837399.1 -8- EXHJBIT A4 relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. BANK ONE, TEXAS, N.A., Fort Worth, Texas BY Title: [SEAL] Attest: Address: 500 Throckmorton Suite 802 Fort Worth, Texas 76102 Title: CITY OF NORTH RICHLAND HILLS, TEXAS BY Mayor (CITY SEAL) Address: P. O. Box 820609 North Richland Hills, Texas 76180 Attest: City Secretary 837399.1 -9- EXH\B\T A \ Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Secticm 37 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 appEmded to the Official Statement as Appendix B, but for the most recently concluded fiscal year. 2. The information contained in Tables 1 through 6 and 8 through 15 of the Official Statement. Accounting Principles The accounting principles referred to in such Section are the generally accepted accounting principles as applicable to govemmental units as prescribed by The Government Accounting Standards Board. 837380.1 CITY OF NORTH RICHLAND HILLS Department: Administration Council Meeting Date: 05/08/00 Subject: Consider Development AQreement with RSM Investments Agenda Number: GN 2000-052 Staff will be discussing this with the Council during Executive Session. We are waiting on the agreement from the attorneys. We hope to forward it to Council possibly by Friday afternoon or at the Pre-Council meeting. We will explain all the details, commitments, plans, and financial considerations during the Executive Session Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number Sufficient Funds Available Finance Director Page 1 of CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: 5/08/00 Subject: Approve Revision to the Public Works Desion Manual Agenda Number: PW 2000-014 concerning Soil Retention Blankets - Resolution No. 2000-30 More and more earthen channels are being allowed in the City. Some are due to Federal regulations dictating the channels be constructed this way or the channels are to be a part of a planned greenbelt area. Council has shown a concern in the recent months over erosion control of these earthen channels during and after construction. The new Federal Storm Water regulations require more stringent control of erosion. Based on these reasons, staff has revised the appropriate section of the Public Works Design Manual to provide for installation of soil retention blankets on all future earthen channel slopes by development in the City. The attached resolution shows the words removed from this section of the Design Manual as crossed through and the words added as underlined. Recommendation: To approve Resolution No. 2000-30. /.' Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds AvanaDle ~v ~ Finance Director RESOLUTION NO. 2000-30 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: WHEREAS, Resolution No. 95-11 adopts the Public Works Design Manual of the City of North Richland Hills, Texas; and WHEREAS, the current Design Manual regulation dealing with Open Earthen Channels does not provide for the use of soil retention blankets; and WHEREAS, it is in the best interest of the City that soil retention blankets be used. NOW, THEREFORE, be it resolved by the City Council of the City of North Richland Hills, Texas, that: 1. Paragraph 10., c., 7. of Subsection B of Section 1-05 of the said Public Works Design Manual shall hereafter read as: "7. That, in the judgement of the Public Works Director, the appropriate use of the neighboring property or the health and safety of persons affected will not be substantially injured. Earthen channels, when approved, shall be constructed with a trapezoidal shape and a minimum bottom width of twelve (12') feet and side slopes not steeper than four (4') feet horizontal to one (1') foot vertical (5 to 1 preferred). A reinforced concrete pilot channel not less than twelve (12') feet in width or, as determined by the Public \^/orks Director, shall be constructed. The side slopes shall be smooth, free of rocks, and contain a minimum of six (6") inches of top soil. Gobi blocks, rock rubble riprap, or other such similar materials, shall be placed a minimum of four (4') feet along both sides of the pilot channel to a depth of at least two (2') feet. Size and gradation of such material shall be determined based on peak discharge velocity requirements. The pilot channel shall be constructed as approved by the Public Works Department. The easement width for an earthen channel shall extend at least twenty (20') feet beyond the top of each channel bank and shall not be cross-fenced. The top of bank areas shall remain open for maintenance purposes. After proposed earthen side slopes are cut, slopes shall be covered by grass according to the City's spocific~Jtions but no less than one 2 inch high spring per half square inch of slope and bottom. The grass shall be planted to twenty (20') foet outside the top of banks. receive the six (6") inches of topsoil. hydro mulch, and a soil retention blanket. The furnishinq and placinq of topsoil shall conform to the Texas Department of Transportation (TxDOT) Specification Item 160. The furnishinq and placinQ of hydro mulch shall meet the requirements of the North Central Texas Council of Government's (NCTCOG) Standard Specifications for Public Works Construction, Items 2.15.2 "Fertilizer", 2.15.3 "Hydro Mulch Materials", and 3.10.7 "Hydro MulchinQ". The soil retention blanket will be American Excelsior Hi-Velocity Curlex or equal as approved by the Public Works Director. The soil retention blanket will be furnished and placed in accordance with the manufacturer's recommendation. In no instance shall the placement method per the manufacturer's recommendations be less than that required in TxDOT Specification Item 169. The water surface profile (hydraulic grade line) for the one hundred (100) year frequency storm shall be shown. Maximum permissible mean velocities for the one hundred (100) year frequency discharge shall be eight (8) feet per second in partially concrete lined channels while in fully concrete lined channels, the maximum permissible mean velocities for one hundred (100) year frequency discharge shall be fifteen (15) feet per second. Special consideration should be given to outlet structures on channels where concrete lining meets earthen banks. One reinforced concrete access ramp shall be provided at all intersections of every open channel with a public street. Access ramps shall be a minimum of twelve (12') feet wide with a maximum slope of sixteen (16%) percent." 2. This amendment shall be in full force and effect upon its date of passage. PASSED AND APPROVED this the 8th day of May, 2000. Approved: ./ " Charles Scoma, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: APPROVED AS TO CONTENT: /-' .. CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: 5/08/00 PW 2000-015 Agenda Number: - Subject: Approve Sh:m Relocations on Rufe Snow Drive The City and the Texas Department of Transportation (TxDOT) are currently acquiring right-of-way along Rufe Snow Drive for the Rufe Snow Drive Widening Project. Some of the right-of-way the City and TxDOT need impact some existing business signs. There is a total of 10 signs impacted. Five of the signs currently conform to the City's Sign Ordinance and five do not. The table below identifies the 10 signs. SIGN 1 Don Pablo's 2 A lebee's 3 Chevron 4 Pa a G's 5 Pa a John's 6 Vacant Buildin 7 Chick-FiI-A 8 Hillto S uare 9 Carlson Office Park 10 Conoco TYPE Pole Pole Pole Monument Monument Pole Pole Pole Pole Pole COMMENTS Meets "Freewa Overla Zone" criteria. Meets "Freewa Overla Zone" criteria. Meets "Freewa Overla Zone" criteria. Conforms to Ci ordinance. Conforms to Ci ordinance. Will be removed when C.O. is rovided. Does not conform to Ci ordinance. Does not conform to Ci ordinance. Does not conform to Ci ordinance. Does not conform to Cit ordinance. Since signs #1 through #5 conform to the Sign Regulation Ordinance, they can be relocated (same sign, just moved) from the proposed right-of-way to another conforming location on site. Sign #6 is a pole sign located in front of a vacant building located at the northeast comer of Mid-Cities Boulevard and Rufe Snow Drive. The Sign Regulation Ordinance requires this "blank" non-conforming sign to be replaced with a conforming sign when the vacant building is occupied. Signs #7 through #10 do not conform. Section 10 of the Sign Regulation Ordinance outlines how these four signs are to be handled. Paragraph C. of Section 10 specifies that the property owner has five years to either remove or rebuild their signs to conform with the Sig'ri Ordinance after relocation due to the widening project. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds AvallaDle '- 4# Finance Director ~I CITY OF NORTH RICHLAND HILLS It would not be necessary to relocate three of the four nonconforming signs (#7, #8, #9) if the City were allowed to follow it's own design criteria and construction process. These three signs are set back far enough from the proposed pavement edge to not present a risk to the motorist. The City has allowed right-of-way encroachments similar to these in the past. However, since we are required to follow federal guidelines (which will not allow encroachments into public right-of-way), the signs will need to be moved. Staff is currently investigating if there are any exceptions to the federal guidelines. The City will also be responsible for the additional cost associated with requiring the four nonconforming signs to be replaced with conforming signs. It is estimated that there will be an approximate cost increase of $140,000 to replace the signs. The Sign Ordinance allows property owners with nonconforming signs to keep their existing signs as long as the ownership of the property does not change. When the property with the nonconforming sign is sold, the sign (at that time) will need to be rebuilt to conform with the Sign Ordinance. Because of the circumstances mentioned above, staff feels the four signs could be relocated (same sign, just moved) and be allowed to remain until the ownership of the property changes. Recommendation: To allow the impacted nonconforming signs along Rufe Snow Drive to be relocated to an approved location on site and to remain until the ownership of the property changes or the type of business changes. /.' CITY COUNCIL ACTION ITEM Page_of _ ... I '1 COIiBS JU) Ñ 'TO~r 2R S. fY SÑO~ If 3 # JR ,., 1.'7=- . '" Q '" '" 9 i :::> Q '" ~ 16 . 5..2gQ1 . 5 2.7$411 . . LUIH. }. 10..20 . ~" \~~~~ J.¡,4·"tùR"~~8 þ.....1 N E LOOP 820 FOP-V S'f:\P- F~~g~. ~ 12.1114 . 1 3 .. " \I 12 J .. 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Announcements Tuesday May 16th 11:30 AM - 1 :00 PM ~ 9th Annual Business Appreciation Luncheon Birdville Fine Arts Complex Call 427-6090 for information Saturday May 20th 10:00 AM to 6:00 PM ~ NRH20 opens For information call 427-6500 2. Information ~ Corporate Challenge 2000 Tennis Billiards Volleyball 5k Run May 7th May 8th & 9th May 11th May 13th For information call Bob Hagin at 427-6602 ~ Registration for Summer Recreation Programs has started Call the Recreation Center at 427-6600 for more information ~ The City Council will hold a special work session Monday May 15th beginning at 5:30 PM