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HomeMy WebLinkAboutCC 2010-05-24 AgendasCITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, May 24, 2010 5:30 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2010-040 Update on Sign Topper Program as part of Neighborhood Initiative Efforts (10 Minutes) A.3 IR 2010-042 Police Department's Implementation of Nixle Messaging Service (10 Minutes) B.0 EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.071 Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1) Hometown Urban Partners, Ltd. vs. City of North Richland Hills (No. 096-236530-09); 2) Arcadia Land Partners 25 Ltd., et al vs. City of North Richland Hills (No. 067-241297-09); 3) Venue at Hometown vs. City of North Richland Hills, et al (No. 352-237213-09) C.0 Adjournment Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in complian~ with Chapter 551, Texas Government Code on May 21, 2010 at `~ "~ a.m. ~ Secretary This facility is wheelchair accessible and accessible parking s~saces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. NRH City Council Agenda -May 24, 2010 Page 1 of 4 CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, May 24, 2010 7:00 P.M. Hard copies of the full City Council agenda information packet are accessible prior to every regularly scheduled Monday Council meeting according to the following locations and schedule: o City Hall on the day of the meeting Additionally, the agenda packet is available for download from the City's web site at www.nrhtx.com after 10 a.m. the day of every regularly scheduled Council meeting. A.0 Call to Order -Mayor Trevino A.1 Invocation -Councilman Whitson A.2 Pledge -Councilman Whitson A.3 Special Presentation(s) and Recognitions) -Yard of the Month Awards presented by Council Lombard A.4 Special Presentation(s) and Recognitions) - IR 2010-041 Distinguished Budget Presentation Award for Fiscal Year 2009/2010 A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.6 Removal of Item(s) from Consent Agenda B.0 CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. NRH City Council Agenda -May 24, 2010 Page 2 of 4 B.1 Approval of Minutes of May 10, 2010 City Council Meeting B.2 Approval of Minutes of May 17, 2010 Special City Council Meeting B.3 PU 2010-013 Renew Bid No.09-022 for Aquatic Chemicals to FSTI Inc in the Amount Not to Exceed $62,150 and Valley Solvents & Chemicals in an Amount Not to Exceed $3,780 B.4 GN 2010-038 Approve Agreement with Tarrant County Tax Assessor/Collector for the Collection of City Property Taxes -Resolution No. 2010-019. B.5 PU 2010-011 Gutermann Inc. in the amount of $68,339 for Subsurface Water Line Leak Detection Equipment C.0 PUBLIC HEARINGS No items for this category. D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing D.1 GN 2010-037 Initiate Amendments to zoning text for Town Center Zoning District E.0 PUBLIC WORKS No items for this category. F.0 GENERAL ITEMS F.1 GN 2010-033 Election of Mayor Pro Tem F.2 GN 2010-034 Discussion and Consideration of Ordinance No. 3093 Authorizing the Issuance of $5,850,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2010" and Resolving Other Matters Incident and Related Thereto F.3 GN 2010-035 Discussion and Consideration of Ordinance No. 3094 Authorizing the Issuance of $23,740,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2010" and Resolving Other Matters Incident and Related Thereto F.4 GN 2010-036 Consider All Matters Incident and Related to Providing for the Redemption of Certain Outstanding Obligations of the City of North Richland Hills, Including the Adoption of Resolution No. 2010-021 Pertaining Thereto F.5 PU 2010-012 Award of Bid No. 09-037 to Greenscaping, Inc., in the amount of $527,500.10, for Construction of the Boulevard 26 Trail NRH City Council Agenda -May 24, 2010 Page 3 of 4 G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda H.0 INFORMATION AND REPORTS H.1 Announcements -Councilman Barth H.2 A Look Through the Lens -May 2010 H.3 Adjournment All items on the agenda are for discussion and/or action. Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliancy with Chapter 551 Texas Government Code on May 21, 2010 at '~~5''~,'~~ a.m. ``mss. , Y ~s ist n Ci y Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. NRH City Council Agenda -May 24, 2010 Page 4 of 4 City of North Richland Hills City Council Work Session Meeting Agenda North Richland Hills City Hall City Council Workroom 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, May 24, 2010 5:30 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2010-040 Update on Sign Topper Program as part of Neighborhood Initiative Efforts (10 Minutes) A.3 IR 2010-042 Police Department's Implementation of Nixle Messaging Service (10 Minutes B.0 EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.071 Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1) Hometown Urban Partners, Ltd. vs. City of North Richland Hills (No. 096-236530-09); 2) Arcadia Land Partners 25 Ltd., et al vs. City of North Richland Hills (No. 067-241297-09); 3) Venue at Hometown vs. City of North Richland Hills, et al (No. 352-237213-09) C.0 Adjournment CITY OF INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2010-040 ;{ Date: May 19, 2010 ,_..____ :-_ j~;~__ __ ~~ Subject: Proposed Sign Topper Program r~ Staff will be making a presentation at the Council work session regarding the establishment of a pilot sign topper program as part of the Neighborhood Initiative Program (NIP). Other NIP programs are underway including M-NIP -minor repairs, E- NIP -emergency repairs, H-NIP -home federal funds, R-NIP -remodel and V-NIP - volunteers. Initial meetings have been held with contractors, homeowners and churches regarding participation in target area one. Previously mentioned as a subset program under the Neighborhood Initiative Program, staff is requesting Council consensus for establishing a sign topper program for target area one to recognize the unique character of neighborhoods, increase visibility of neighborhoods, encourage a sense of belonging and to complement other NIP program efforts. A key part of neighborhood participation to be eligible for sign toppers includes a commitment with registration with the City with a petition of at least 20 households with one primary and two secondary contact names. Also required is current participation or a commitment in one of the three major public safety programs including: Citizens Fire Academy (CFA), Citizens Police Academy (CPA), Community Emergency Response Team (CERT). Also required is assigning representation to assist in two of the following programs: Neighborhood Crime Watch, Neighborhood Code Ranger Program and Voluntary Neighborhood Initiative Program (V-NIP). Once a commitment is shown by the neighborhood then residents will be allowed to design a unique neighborhood logo for the sign topper with a single color on a contrasting background. White with green, blue, black or brown will be allowed. Staff is recommending that all sign toppers be manufactured, installed and maintained by the City. If all the 6 eligible neighborhoods participate in the program the sign costs would be a maximum of $9,300 which is about 8% of the NIP budget at this time. Staff will be available for questions at the Council work session. Respectfully Submitted, John Pitstick Planning & Development Director ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ Sample Sign Topper and Neighborhood Target Area Pilot NRH Sign Topper Program In conjunction with the Neighborhood Revitalization Program starting with Area 1 which includes six identified and protected neighborhoods south of Loop 820 and east of Rufe Snow. (Snow Heights, Richland Terrace. Skyline Homes, Hillview, Original Town of NRH North and Original Town of NRH South) Any proposed neighborhoods different than original subdivision names and boundaries shall be required to have at least 80 contiguous lots and a name and boundaries that represent the unique character of the neighborhood. The City of North Richland Hills shall have final approval of any proposed neighborhood names and boundaries. The purpose of the sign topper program is to; 1) their unique character, 2) Increase the visibility sense of belonging and neighborhood pride, revitalization efforts. Help neighborhoods be recognized for of a neighborhood, 3) Encourage a 4) Complement city neighborhood Program Guidelines Neighborhoods are required to register with the City of North Richland Hills through an application form. A formal neighborhood organization is encouraged but not required. A petition of at least 20 households is required with one primary contact person and at least two secondary contacts. The neighborhood organization is also required to commit to: Current participation or a commitment to participate in one of the following programs: o Citizens Fire Academy o Citizens Police Academy o Community Emergency Response Team Current participation or a commitment to participate in two of the following programs: o Neighborhood Crime Watch o Code Rangers Program o Volunteer Neighborhood Initiative Program Assign a team to assist in the design of the neighborhood symbol or logo Following completion of formal neighborhood registration, the neighborhood will be able to participate in designing a unique logo for their particular neighborhood. The sign toppers will be 9" X 24" and are required to have either white letters on a dark background or dark contrasting letters with a white background. Contrasting colors shall be limited to either green, blue, black or brown. The legend shall consist of 2.24 inch upper case letters and 1.69 inch lower case letters for the neighborhood name and a simple insignia, logo or icon for the neighborhood symbol. The NRH city logo is not permitted on the neighborhood sign toppers. The City of North Richland Hills shall have final design approval. All sign toppers will be manufactured, installed and maintained by the City. The sign toppers will be placed at key intersections, boundaries, and favorite street corners to identify the borders of the neighborhood. NRH Neighborhood Street Topper Program Application Form Name of Neighborhood: Description of unique character of Neighborhood: Primary Contact: Name Address Phone Email Secondary Contact: Name Address Phone Email Secondary Contact: Name Address Phone Email (Attach a neighborhood petition of at least 20 households requesting participation in NRH Neighborhood Street Topper Program) Current participation or commitment in one of the following programs: Citizens Fire Academy (CFA) representative, Citizens Police Academy (CPA) representative Community Emergency Response Team (CERT) representative Current participation or commitment in two of the following programs: Neighborhood Crime Watch Code Ranger representative, Voluntary Neighborhood Initiative representative, City of North Richland Hills Neighborhood Petition for Application of Sign Toppers The following citizens representing the neighborhood of hereby request designation of our neighborhood and make application to the City of North Richland Hills for installing sign toppers at key intersections, boundaries, and street corners to identify the borders of the neighborhood. We commit ourselves to working with the City of North Richland Hills to encourage a safe and attractive neighborhood. We feel that designation of our neighborhood through the installation of street sign toppers will recognize the unique character of our neighborhood and encourage a sense of belonging and neighborhood pride. We are also committed to active participation in community service programs. Name (signature) Address Phone Email INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2010-042 r, Date: May 24, 2010 . "~'~ L%.__._ -- =,.y~~-~ Subject: Police Department s Implementation of Nixle Messaging Service { The North Richland Hills Police Department is launching a new Community Information Service - Nixle -designed to deliver important and timely information to citizens in our community using the latest technology. This service will allow all those who live, work, and visit our community to receive trusted, up-to-date neighborhood-level public safety and community event notifications by web, a-mail, and cell phone. Through www.nixle.com, the Police Department will be able to send alerts to subscribers citywide or within a focused radius as little as a '/4 mile. Nixle will allow the Department to deliver messages expeditiously to citizens on the go, thus supporting and expanding our community outreach efforts. All service subscribers can stay connected to their local police department, their children's schools, and other local community agencies and organizations by simply visiting the website. However, to customize the information received, users must first establish an account and set their location preferences, making the service fit their needs. Nixle does not share or sell customers' personal information. The service is provided at no cost; however, standard text messaging rates apply for messages received. Nixle's service is built on the most secure, reliable and high-speed distribution platform, ensuring that trusted, geographically relevant information is received. Only authenticated agencies and community organizations can securely publish information, thus ensuring the message has been properly vetted. There are four types of messages: ^ Alerts (many would refer to this as an emergency type alert) ^ Advisories (less urgent need-to-know information) ^ Community Information (day-to-day neighborhood to community level information) ^ Traffic (very localized traffic information) In June, 2008 Nixle partnered with the non-profit organization NLETS, acomputer- based message switching system that links together all local, state and federal law enforcement agencies throughout the United States. Nixle's servers are all located at NLETS, providing added security from would-be-hackers. This enables local police departments nationwide to send immediate alerts and advisories using their secure police terminals. As of November, 2009 over 3,000 agencies in 49 states have adopted the service. Nixle will enable citizens and media partners of North Richland Hills to stay engaged and connected to the information that matters most to them. Respectfully Submitted, Jimmy Perdue Public Safetv Director ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. B.0 Subject: EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. B.1 Subject: Executive Session: Pursuant to Section 551.071 Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1) Hometown Urban Partners, Ltd. vs. City of North Richland Hills (No. 096-236530-09); 2) Arcadia Land Partners 25 Ltd., et al vs. City of North Richland Hills (No. 067-241297-09); 3) Venue at Hometown vs. City of North Richland Hills, et al (No. 352-237213-09)) CITY OF City of North Richland Hills City Council Regular Meeting Agenda North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, May 24, 2010 7:00 P.M. A.0 Call to Order -Mayor Trevino A.1 Invocation -Councilman Whitson A.2 Pledge -Councilman Whitson A.3 Special Presentation(s) and Recognitions) - Yard of the Month Awards presented by Council Lombard A.4 Special Presentation(s) and Recognitions) - IR 2010-041 Distinguished Budget Presentation Award for Fiscal Year 2009/2010 A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.6 Removal of Item(s) from Consent Agenda B.0 CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of May 10, 2010 City Council Meeting B.2 Approval of Minutes of May 17, 2010 Special City Council Meeting B.3 PU 2010-013 Renew Bid No.09-022 for Aquatic Chemicals to FSTI Inc in the Amount Not to Exceed $62,150 and Valley Solvents & Chemicals in an Amount Not to Exceed $3,780 B.4 GN 2010-038 Approve Agreement with Tarrant County Tax Assessor/Collector for the Collection of City Property Taxes -Resolution No. 2010-019. B.5 PU 2010-011 Gutermann Inc. in the amount of $68,339 for Subsurface Water Line Leak Detection Equipment C.0 PUBLIC HEARINGS No items for this category. D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing D.1 GN 2010-037 Initiate Amendments to zoning text for Town Center Zoning District E.0 PUBLIC WORKS No items for this category. F.0 GENERAL ITEMS F.1 GN 2010-033 Election of Mayor Pro Tem F.2 GN 2010-034 Discussion and Consideration of Ordinance No. 3093 Authorizing the Issuance of $5,850,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2010" and Resolving Other Matters Incident and Related Thereto F.3 GN 2010-035 Discussion and Consideration of Ordinance No. 3094 Authorizin the Issuance of $23,740,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2010" and Resolving Other Matters Incident and Related Thereto F.4 GN 2010-036 Consider All Matters Incident and Related to Providing for the Redemption of Certain Outstanding Obligations of the City of North Richland Hills, Including the Adoption of Resolution No. 2010-021 PertainincLThereto F.5 PU 2010-012 Award of Bid No. 09-037 to Greenscaping, Inc., in the amount of $527,500.10, for Construction of the Boulevard 26 Trail G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda H.0 INFORMATION AND REPORTS H.1 Announcements -Councilman Barth H.2 A Look Throuah the Lens - Mav 2010 H.3 Adjournment CITY OF CITY OF CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Councilman David Whitson Agenda No. A.2 Subject: Pledge -Councilman Whitson CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Holly Bullington Council Meeting Date: 5-24-2010 Agenda No. A.3 Subject: Special Presentation(s) and Recognitions) -Yard of the Month Awards presented by Council Lombard AREA 1 Asael & Rhiannon Mejia, 6607 Onyx Drive North AREA 2 Lynn Kinq, 7331 Deville AREA 3 Galen McCune, 5016 Skylark Court AREA 4 Clark Compton, 7225 Lola Drive AREA 5 Steve Wiechman, 5121 Grove Street AREA 6 Brad & Debbie Daniel, 6700 Mabell Street AREA 7 Tammy Gill, 9205 Grace Court AREA 8 Reta Vanbebber, 7508 Orange Valley Drive AREA 9 Steve & Robin Wilhite, 8332 Valley Oaks Business Landscape The Villas on Bear Creek, 8009 Davis Blvd. SmartScape Linda Hurley, 7312 Coventry Circle CITY OF INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2010-041 .,.,~',,,., Date: May 24,2010 -- -_ 1~\_::___ `~` ~~a Subject: Special Presentation(s) and Recognitions) - IR 2010-041 The Government Finance Officers Association (GFOA) awarded the City of North Richland Hills the Distinguished Budget Presentation Award for its Annual Budget for the fiscal year beginning October 1, 2009. The Budget Award is a prestigious national award presented by GFOA recognizing conformance with the highest standards for preparation of exemplary budget documents. The most recent GFOA report of results of the program indicates that of the nearly 1,200 municipalities in the State of Texas, 143 or 12% received the award. Of the nearly 36,000 cities in the United States, 1,105 or 3% received the award. The City has received a Distinguished Budget Presentation Award each of the last twenty years. Governments participating in the program submit copies of their approved budget documents for review by an impartial panel of experts. Each budget document is evaluated using a set of comprehensive criteria designed to assess how well an entity's budget document serves as: a policy document, a financial plan, an operations guide, and a communications device. The focus of the Budget Review program is on the management elements of the budget document and its effectiveness in a policy and public environment. This award represents the efforts of many others as budget preparation is a total team effort, starting with the leadership of the City Council and management, followed by the hard work of each City Department. Charles Cox, Director of Finance with the City of Farmers Branch and past President of the Government Finance Officers Association of Texas, will be at the Council meeting to present the award to the Budget Department staff. No action is required by Council. Respectfully Submitted, Mark C. Mills Budget & Research Director ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. A.5 Subject: Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. C/TY OF CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. B.0 Subject: CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. CITY OF MINUTES OF THE WORK SESSION AND REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 -MAY 10, 2010 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 10th day of May, 2010 at 6:00 p.m. in the City Council Workroom prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Scott Turnage Mayor Pro Tem, Council, Place 6 John Lewis Council, Place 1 Ken Sapp Council, Place 2 Tom Lombard Council, Place 3 Tim Barth Council, Place 4 David Whitson Council, Place 5 Tim Welch Council, Place 7 Staff Members: Mark Hindman City Manager Jared Miller Assistant City Manager Karen Bostic Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director Vickie Loftice Managing Director Patricia Hutson City Secretary Monica Solko Assistant City Secretary George Staples City Attorney Mary Peters Public Information Officer Elizabeth Reining Assistant to City Manager John Pitstick Director of Planning & Development Larry Koonce Finance Director Greg VanNieuwenhuize Assistant Public Works Director Eric Wilhite Chief Planner Mark Mills Budget Director Stephanie East Environmental Health Supervisor Chris Swartz NRH2O Park Manager Sharon Davis Park and Recreation Assistant Director Craig Hulse Economic Development Director Call to Order Mayor Trevino called the work session to order at 6:00 p.m. A.1 Discuss Items from Regular Citv Council Meeting There were no questions from the Council. Mayor Trevino clarified that for Item C.1 SUP 2010-01 the public hearing would be continued until a later date and that Staff was recommending a second item (F.1 - GN 2010-029) be postponed. A.2 IR 2010-036 Volunteer Social Transportation for Seniors Update Ms. Vickie Loftice, Managing Director, briefly updated the Council on the history of the Social Transportation for Seniors program, the program's growth and its current status. The program's purpose is to reduce senior isolation by providing transportation for leisure and social activities and is available to North Richland Hills residents over the age of 62. Rides are provided Monday through Friday within a seven mile radius of Mid-Cities and Davis Boulevard. Ms. Loftice introduced members of the Board of Directors and the program volunteers who were present. Rosa Alvarado and John Kruzel, volunteers shared with Council some of their gratifying experiences as volunteers with the program. A.3 IR 2010-037 Status Report on Capital Improvement Projects Mr. Mark Mills, Budget Director, presented a PowerPoint presentation updating Council on the status of the following capital improvement projects: • Briley Drive (Lariat to Rufe Snow) • Rufe Snow Drive (Karen to 820) • Yarmouth Avenue (Mid-Cities to Newcastle) • Odell Street Drainage Improvements • Little Bear Creek Trail / Calloway Branch Trail Development • Grand Avenue Park Plaza and Public Art There were no questions from the Council. Mayor Trevino asked for a future presentation to update the Council on the 2003 bond program projects with the update to include the approved program projects, the timeline for the projects and their completion dates and remaining projects to be completed. A.4 IR 2010-039 North Richland Hills Market Study -Status Update Mr. Craig Hulse, Economic Development Director, presented a PowerPoint presentation providing a status update on the Market Study and the preliminary findings. The preliminary findings for the five trade areas showed further research recommended for West Loop 820, Calloway Creek Commercial Area, HomeTown/Smithfield and North Tarrant. The findings of the 121/183 Gateway trade area were to recommend delay research because of transportation and access issues, the significant retail surplus in close proximity to the Northeast Mall and the need for a plan to determine redevelopment opportunity. RECESS TO REGULAR SESSION Mayor Trevino recessed the work session at 6:39 p.m. and announced that Council would convene into Regular Session and would return after Regular Session to discuss the Executive Session item. A.4a EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code Executive Session: Pursuant to Section 551.071 Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1) Hometown Urban Partners, Ltd. vs. City of North Richland Hills (No. 096-236530-09): 2) Arcadia Land Partners 25 Ltd., et al vs. City of North Richland Hills (No. 067-241297-09); 3) Venue at Hometown vs. City of North Richland Hills, et al (No. 352-237213- 0 Council convened in Executive Session following the regular council meeting. REGULAR COUNCIL MEETING A.0 CALL TO ORDER Mayor Trevino called the meeting to order May 10, 2010 at 7:00 p.m. ROLL CALL Present: Oscar Trevino Scott Turnage John Lewis Ken Sapp Tom Lombard Tim Barth David Whitson Tim Welch Mayor Mayor Pro Tem, Council, Place 1 Council, Place 2 Council, Place 3 Council, Place 4 Council, Place 5 Council, Place 7 Council, Place 6 Staff: Mark Hindman Jared Miller Karen Bostic Jimmy Perdue Mike Curtis Vickie Loftice Patricia Hutson Monica Solko George Staples City Manager Assistant City Manager Assistant City Manager Director of Public Safety Managing Director Managing Director City Secretary Assistant City Secretary Attorney A.1 INVOCATION Councilman Lombard gave the invocation. A.2 PLEDGE OF ALLEGIANCE Councilman Lombard led the pledge of allegiance. A.3 SPECIAL PRESENTATION(S) AND RECOGNITIONS) - PROCLAMATION FOR MOTORCYCLE SAFETY AND AWARENESS MONTH PRESENTED BY MAYOR PRO TEM TURNAGE Mayor Pro Tem Turnage presented a proclamation to members of the Patriots Motorcycle Club proclaiming the month of May as Motorcycle Safety and Awareness Month. A.4 SPECIAL PRESENTATION(S) AND RECOGNITIONS) - PROCLAMATION FOR NATIONAL PUBLIC WORKS WEEK PRESENTED BY COUNCILMAN WELCH Councilman Welch presented a proclamation to the Public Works Department staff for National Public Works Week. Mike Curtis, Managing Director acknowledged the Public Works staff and thanked them for all their hard work. A.5 SPECIAL PRESENTATION(S) AND RECOGNITIONS) - PROCLAMATION FOR POLICE WEEK PRESENTED BY COUNCILMAN SAPP Councilman Sapp presented a proclamation to Jimmy Perdue, Director of Public Safety for Police Week and Peace Officers Memorial Day. A.6 SPECIAL PRESENTATION(S) AND RECOGNITIONS) - BUSINESS RECOGNITION FOR EXCEPTIONAL PERFORMANCE IN FOOD SAFETY PRESENTED BY COUNCILMAN BARTH Stephanie East, Environmental Health Supervisor and Councilman Barth recognized the following for exceptional performance in food safety for the first quarter of 2010: Popeye's, 8393 Boulevard 26; Cinemark Movies 8, 7560 N.E. Loop 820; and Chicken Express, 5100 Davis Blvd. A.7 CITIZENS PRESENTATION None. A.8 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. B.0 APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF APRIL 26, 2010 CITY COUNCIL MEETING MAYOR PRO TEM TURNAGE MOVED TO APPROVE THE CONSENT AGENDA. COUNCILMAN SAPP SECONDED THE MOTION.. MOTION TO APPROVE CARRIED 7-O. PUBLIC HEARINGS C.1 SUP 2010-01 OPEN PUBLIC HEARING AND CONTINUE CONSIDERATION OF A REQUEST FROM QUIKTRIP FOR A SPECIAL USE PERMIT FOR A CONVENIENCE STORE/GAS STATION WITH NINE FUELING STATIONS OR MORE LOCATED AT THE SOUTHWEST CORNER OF NE LOOP 820 AND RUFE SNOW DRIVE (CONTINUATION FOR JUNE 14, 2010 CITY COUNCIL MEETING) PUBLIC HEARING CONTINUED TO JUNE 14, 2010 Mayor Trevino opened the public hearing and announced that the applicant is requesting the City Council to continue item C.1 (SUP 2010-01) to the City Council Meeting set for June 14, 2010. COUNCILMAN LEWIS MOVED TO CONTINUE SUP 2010-01 TO THE JUNE 14, 2010 CITY COUNCIL MEETING. COUNCILMAN LOMBARD SECONDED THE MOTION. MOTION TO CONTINUE SUR 2.010-01 CARRIED 7-D. C.2 FP 2009-09 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM J & J NRH 100, FLP TO APPROVE A FINAL PLAT CONSISTING OF LOTS 11-17, BLOCK 8 AND LOTS 7-19, BLOCK 9, THORNBRIDGE EAST PHASE IV ADDITION. ALSO INCLUDED IS A REPEAT OF LOT 7, BLOCK 8 AND LOT 5, BLOCK 9, THORNBRIDGE EAST PHASE III ADDITION INTO LOT 7R, BLOCK 8, AND LOT 5R, BLOCK 9, THORNBRIDGE EAST PHASE IV ADDITION (LOCATED IN THE 8900 BLOCK OF GLENDARA DRIVE - 6.791 ACRES.) CONTINUE Mayor Trevino opened the public hearing and called for the applicant to come forward. Mark Long, 9115 Rumfield Road, representing the applicant came forward. He was available to answer any questions the Council might have. Eric Wilhite, Chief Planner, presented the item. Item is to consider a request from J & J NRH 100, FLP (John Barfield) to plat a 6.791 acre tract for development of single family residences. A total of 22 lots are being platted in this addition with the majority being approximately 80' x 120'. Two new residential streets and an extension of the existing Glendara Drive are proposed which will form a loop configuration. Mr. Wilhite noted that a large portion of the request is for a final plat but the applicant is also replatting three lots in order to tie the subdivision into a previously subdivided area of Thornbridge. The residential replat requires the public hearing. The Planning and Zoning Commission recommended approval by a 4-0 vote. Mr. Wilhite clarified that for a residential replat the property owners within 200 feet of the subject lots within the subdivision are required to be notified. Everyone that was required to be notified by State regulations had been notified; however one of the maps included with the notification letter had more of a zoning type designation and did not properly delineate the area of replat. Staff has corrected how the replat areas are delineated on the maps. At the request of Council, Mr. Wilhite addressed the gas well drilling and its impact on the development. All 22 of the proposed lots are within 600 feet of the Morrow-Stevens gas well pad site, located to the south of the subject development. Several lots are also within 300 feet of the actual drill holes. The City's gas drilling ordinance requires the permission from the property owners of lots within this 300 feet grant permission for drilling. Based on the timing of construction and completion of street and lot infrastructure, building permits could be applied for to construct new homes prior to Chesapeake completing its drilling operations. This could effect the drilling operations at this pad site. Both the developer and Chesapeake Energy are aware of the circumstances and the provisions in the City of North Richland Hills Gas Drilling ordinance as it pertains to residential building permits occurring and how this could effect the drilling operations at the site. Mayor Trevino called for anyone wishing to speak in favor of the item to come forward. There being none, Mayor Trevino called on those opposed to come forward. The following individuals spoke in opposition to the request referring to the Little Bear Creek Ordinance and citing concerns with the protection of the Little Bear Creek corridor. Council was shown pictures of how Little Bear Creek had been adversely impacted environmentally. Steve and Laurel Morrow, 8809 Kirk Lane Mayor Pro Tem Turnage advised that the following citizens did not wish to speak but wanted to go on record as being in opposition to the request. Rick Stevens, 7132 Stonybrooke Drive Lucille Stevens, 9201 Kirk Lane Frank Ross, 8541 Neil Court Mayor Trevino closed the public hearing and called for the motion. MAYOR PRO TEM TURNAG~ MOVED TO APPROVE FP 2009-09.. Motion died for lack of a second. COUNCILMAN BARTH MOVED TO DENY FP 2009-09. COUNCILMAN LEWIS SECONDED THE MOTION. After a brief discussion, Council requested for staff to provide Council with more information on the item and to address the environmental concerns presented. City Attorney Staples advised that the motion would need to be made to continue with an extension of 30 days rather than deny and that the applicant would need to request the extension. Mr. Mark Long came forward and requested Council to extend the item for 30 days. Councilman Barth and Councilman Lewis withdrew the motion to deny. MAYOR PRO TEM TURNAGE MOVED TO GRANT THE APPLICANTS REQUEST TO CONTINUE FP 2009-09 WITH' A 30 DAY EXTENSION. COUNCILMAN SAPP SECONDED THE MOTION. MOTION TO CONTfNUE FP 2009-09 CARRIED 7-O. C.3 GN 2010-028 PUBLIC HEARING AND CONSIDERATION OF ORDINANCE READOPTING YOUTH PROGRAMS STANDARDS OF CARE -ORDINANCE NO. 3084 APPROVED Mayor Trevino opened the Public Hearing. Adrien Pekurney, Recreation Center Manager, presented the item. The item is to consider approval of an ordinance readopting the North Richland Hills Youth Programs Standards of Care. Because the Parks Department offers day camp programs for children ages five to thirteen, the City must meet day care licensing requirements or file for an exemption of the Child Care Standards and Regulations. To receive exempt status, municipalities must submit a copy of program standards, a notice of a public hearing for the program and a copy of the ordinance adopting the standards. The Park and Recreation Department's day camp program meets and in some areas exceeds many of the standards listed in the state's Child Care Standards and Regulations. All of the Standards of Care in the Parks Department's day camp policies and procedures have been in place for several years and are used in the staff training process prior to camp starting each year. The exemption application and formal adoption of the Youth Programs Standards of Care and ordinance is an annual requirement. Staff recommends approval of the ordinance following the public hearing and public input. Mayor Trevino called for anyone wishing to speak in favor or against the program. There being no one wishing to speak, Mayor Trevino closed the public hearing. COUNCILMAN LOMBARD MOVED TO APPROVE ORDINANCE NO. 3084.. COUNCILMAN EARTH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. D.0 PLANNING & DEVELOPMENT There were no items for this category. PUBLIC WORKS E.1 PW 2010-019 APPROVE ORDINANCE AMENDING SECTION 2-233 OF THE NORTH RICHLAND HILLS CODE OF ORDINANCES, AUTHORIZING THE CITY MANAGER TO EXECUTE RELEASES AND PARTIAL RELEASES OF LIENS UPON RECEIPT OF SUMS DUE -ORDINANCE NO. 3092 APPROVED Greg VanNieuwenhuize, Public Works Assistant Director, summarized the item. City Council is being asked to allow the City Manager to execute full releases of liens, and partial releases of liens on behalf of the City upon receipt of the appropriate sums secured by such liens. The current provision limits the City Manager's authority to execute releases to full releases as part of his authority to compromise the claim. There is no authority for partial releases and no reason to limit such authority if there is no compromise of the claim. Staff is recommending approval of Ordinance No. 3092 that would allow the City Manager to execute both full lien releases and partial lien releases, upon the City receiving the appropriate sums. COUNCILMAN WELCH MOVED TO APPROVE ORDINANCE NO, 3092.. COUNCILMAN WHITSON SECONDED THE MOTION.. MOTION TO APPROVE CARRIED 7-O. E.2 PW 2010-020 AWARD A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $49,900 TO BIRKHOFF, HENDRICKS & CARTER, L.L.P. FOR THE TERRY DRIVE (SUSAN LEE LANE TO NORTH RICHLAND BOULEVARD) STREET IMPROVEMENTS PROJECT (ST1003) APPROVED Greg VanNieuwenhuize, Public Works Assistant Director, summarized the item. The item is to consider the award of a professional services agreement for the Terry Drive street improvements project. The City requested Requests for Qualifications (RFQ's) in accordance with city policy and qualifications were received from 35 firms. The City's selections committee reviewed and evaluated the proposals and is recommending award of the professional service agreement to Birkhoff, Hendricks & Carter, LLP in an amount of $49,900. MAYOR PRO TEM TURNAGE MOVED TO APPROVE PW 2:010-020. COUNCILMAN LOMBARD SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. E.3 PW 2010-021 AWARD A PROFESSIONAL SERVICES AGREEMENT TO HALFF ASSOCIATES, INC. IN THE AMOUNT OF $77,000 FOR THE MACKEY DRIVE (BRILEY DRIVE TO GLENVIEW DRIVE) STREET IMPROVEMENTS PROJECT (ST0905) APPROVED Greg VanNieuwenhuize, Public Works Assistant Director, summarized the item. The item is to consider the award of a professional services agreement for the Mackey Drive street improvements project. The City requested Requests for Qualifications (RFQ's) in accordance with city policy and qualifications were received from 35 firms. The City's selections committee reviewed and evaluated the proposals and is recommending award of the professional service agreement to Halff Associates, Inc. in an amount of $77,000. COUNCILMAN SAPP MOVED TO APPROVE PW 2010-021. COUNCILMAN WELCH SECONDED THE MOTLON. MOTION TO APPROVE CARRIED 7-Q. GENERAL ITEMS F.1 GN 2010-029 DISCUSSION AND CONSIDERATION OF 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 2010 AND RESOLVING OTHER MATTERS INCIDENT AND RELATED THERETO -ORDINANCE NO. 3091 POSTPONED Larry Koonce, Finance Director, summarized the item. Due to a delay in the audit completion, there has also been a delay in the rating process. It is necessary to delay the sale of the bonds by two weeks to the May 24th meeting. This will give City officials time to meet with the rating agencies and conduct a competitive sale as planned. COUNCILMAN WHITSON MOVED TO POSTPONE GN 2010-029 TO THE MAY 24, 2010 CITY COUNCIL MEETING. COUNCILMAN BARTH SECONDED THE MOTION. MOTION TO POSTPONE GN 2010-029 CARRIED 7-0. F.2 GN 2010-027 APPROVAL OF THE NOMINATION OF COLUMBIA NORTH HILLS HOSPITAL SUBSIDIARY, L.P. TO THE OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM FOR DESIGNATION AS A TEXAS ENTERPRISE PROJECT -RESOLUTION NO. 2010-018 APPROVED Craig Hulse, Economic Development Director, summarized the item. Staff was approached by Columbia North Hills Hospital Subsidiary, L.P. (North Hills Hospital) in seeking a nomination from the City of North Richland Hills to the State of Texas for an Enterprise Project designation. The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment. To become eligible, 35% of all future employees hired must meet the Program's economically distressed residency requirement. An economically distressed location falls within a census block group that contains at least 20% of the population living at or below the poverty line. If designated as an Enterprise Project, North Hills Hospital is committing to retain all 763 jobs; of which 416 are considered full-time for purposes of the Texas Enterprise Program. The nomination of North Hills Hospital by the City of North Richland Hills for designation as a State Enterprise Project will not obligate the City to provide any incentives, nor will it have any associated costs to the City. Since there is no adverse impact to local sales and use tax revenues, in addition to North Richland Hills long term interest in the well-being of North Hills Hospital, staff is recommending that the City nominate North Hills Hospital for this program with approval of Resolution No. 2010-018. This Enterprise Project will take effect on Tuesday June 1, 2010, terminating 5 years later on Monday June 1, 2015. COUNCILMAN WELCH MOVED TO APPROVE RESOLUTION NO. 2010-018, NOMINATING NORTH HILLS HOSPITAL AS A TEXAS ENTERPRISE PROJECT. COUNCILMAN LOMBARD SECONDED THE MOTION.. MOTION TO APPROVE CARRIED 7-O. F.3 GN 2010-030 APPROVE CONTRACT WITH AMERICAN BOTTLING COMPANY FOR PARKS AND RECREATION DEPARTMENT BEVERAGE SPONSORSHIP APPROVED Chris Swartz, NRH2O Park Manager, summarized the item. The item is to consider the approval of a five year contract for the Parks and Recreation Department beverage sponsorship. The City requested proposals in accordance with city policy and proposals were received from two firms. The City staff reviewed and evaluated the proposals and is recommending the award of contract to American Bottling Company. COUNCILMAN SAPP MOVED TO APPROVE GN 2010-030. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7.0. EXECUTIVE SESSION ITEMS G.1 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA Mayor Trevino advised that Executive Session was not held during the work session due to time constraints and that Council will convene in Executive Session following the regular Council meeting. If any action is needed following Executive Session, action will be taken in the City Council Workroom in open meeting and then the Council meeting would be adjourned. INFORMATION AND REPORTS H.1 ANNOUNCEMENTS Mayor Pro Tem Turnage made the following announcements. The 4th Annual Generation Next Art Exhibit will be on display at the North Richland Hills Public Library from May 13th through May 21st. The exhibit includes art by high school students and teachers from Birdville ISD. For more information, please call 817-427- 6620. NRH2O opens for the 2010 season on Saturday, May 15th. Visit nrh2o.com for a complete park schedule and details on all of the special events planned for this summer. For more information, you can also call 817-427-6500. More than 60 local businesses are now participating in the Shop NRH program and offering exclusive discounts and coupons to local residents. To take advantage of these special offers, log on to the City's web site at www.nrhtx.com and click on the Shop NRH link. Kudos Korner -Willie Presley and Kevin Jackson, Public Works Department. A call was received from a resident complimenting Willie and Kevin on their rapid response and quick handling of a stopped up sewer line. They both did a fantastic job and kept him informed about what they were doing and why. They are excellent employees and an asset to the City, the resident said. H.2 ADJOURNMENT TO EXECUTIVE SESSION Mayor Trevino announced at 8:06 p.m. that Council would convene into Executive Session in the City Council Workroom pursuant to Section 551.071 Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1) Hometown Urban Partners, Ltd. vs. City of North Richland Hills (No. 096-236530-09); 2) Arcadia Land Partners 25 Ltd., et al vs. City of North Richland Hills (No. 067-241297-09); 3) Venue at Hometown vs. City of North Richland Hills, et al (No. 352-237213-09)). Any action needed as a result of Executive Session will be taken following the Executive Session in the City Council Workroom and the Council meeting will be adjourned in the City Council Workroom. Mayor Trevino adjourned the Executive Session at 9:00 p.m. and reconvened the regular session. EXECUTIVE SESSION ITEMS G.1 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA No action needed. ADJOURNMENT Mayor Trevino adjourned the meeting at 9:00 p.m. Oscar Trevino -Mayor ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. B.2 Subject: Approval of Minutes of May 17, 2010 Special City Council Meeting Recommendation: To approve the minutes of the May 17, 2010 Special City Council meeting. MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 -MAY 17, 2010 A.0 CALL TO ORDER Mayor Trevino called the special meeting to order May 17, 2010 at 6:00 p.m. ROLL CALL Present: Oscar Trevino Scott Turnage John Lewis Ken Sapp Tom Lombard Tim Barth David Whitson Tim Welch Staff: Mark Hindman Karen Bostic Jimmy Perdue Mike Curtis Vickie Loftice Patricia Hutson Monica Solko George Staples Mayor Mayor Pro Tem, Council, Place 1 Council, Place 2 Council, Place 3 Council, Place 4 Council, Place 5 Council, Place 7 City Manager Assistant City Manager Director of Public Safety Managing Director Managing Director City Secretary Assistant City Secretary Attorney Council, Place 6 A.1 INVOCATION Councilman Sapp gave the invocation. A.2 PLEDGE OF ALLEGIANCE Councilman Sapp led the pledge of allegiance. A.3 GN 2010-031 CANVASSING MAY 8, 2010 CITY COUNCIL ELECTION - RESOLUTION No. 2010-020 APPROVED Patricia Hutson, City Secretary, advised Council was being asked to approve Resolution No. 2010-020, approving the canvass and accepting the results of the election. Council has been provided with the official results received from the Tarrant County Elections Administrator and Resolution No. 2010-020 was revised to reflect the official results. The official results received were: Number of Votes Mayor Oscar Trevino 1,014 Citv Council -Place 2 Ken Sapp 917 City Council -Place 4 Tim Bielik 173 Tim Barth 925 City Council -Place 6 Scott Turnage 930 The following individuals were elected to office: Mayor Oscar Trevino City Council -Place 2 Ken Sapp City Council -Place 4 Tim Barth City Council -Place 6 Scott Turnage COUNCILMAN LEWIS MOVED TO APPROVE RESOLUTION NO. 2010-020 APPROVING THE CANVASS AND DECLARING THE WINNING CANDIDATES. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. A.4 GN 2010-032 OATH OF OFFICE Ceremonial oaths of office were administered to each of the newly elected officials. Ms. Karen McNeill administered the oath of office to Ken Sapp. Mr. Jerry Sorenson administered the oath of office to Tim Barth Mr. Reed Turnage administered the oath of office to Scott Turnage. Mr. Marc Trevino administered the oath of office to Oscar Trevino. A.5 ADJOURNMENT Mayor Trevino adjourned the meeting at 6:24 p.m. Oscar Trevino -Mayor ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Department: Finance/Parks Council Meeting Date: 5-24-2010 Presented by: VLoftice Agenda No. B.3 Subject: PU 2010-013 Renew Bid No.09-022 for Aquatic Chemicals to FSTI Inc in the Amount Not to Exceed $62,150 and Valley Solvents & Chemicals in an Amount Not to Exceed $3,780 Summary Council is requested to renew bids with FSTI Inc and Valley Solvents & Chemicals for sodium hypochlorite and muriatic acid which are used to treat and sanitize the water at NRH2O. The initial 2009 contract was for a period of one year and included an option to renew for three additional years. This will be the first one year renewal option of the contract. General Description This item is to renew contracts with multiple vendors to supply pool chemicals for NRH2O Family Water Park. The chemicals are used for sanitizing and balancing the approximately 925,000 gallons of treated pool water at NRH2O. In the FY 2009/2010 approved budget, Council appropriated funds for the purchase of chemicals required for pool maintenance. The chemicals are ordered and delivered on an as needed basis. Formal bids were solicited and a contract to provide these materials was approved during the May 18, 2009 Council Meeting (PU 2009-021). Sodium Muriatic Quantity (1) Hypochlorite Acid 55,000 al 2,100 al D. C. C. Inc. $1.24 $2.25 , er allon er allon FSTllnc $1.13 $2.07 . er allon er allon Simply Aquatics Inc. $1.25 $2.70 er allon er allon Valley Solvents & $1.79 $1.80 Chemicals er allon er allon The initial term of the contract was for a period of one (1) year and included an option to renew for three (3) additional twelve (12) month terms. Both vendors have agreed to extend the same contract pricing through April 30, 2011. Recommendation: To renew Bid No. 09-022 for Aquatic Chemicals to FSTI Inc in the amount not to exceed $62,150 and Valley Solvents & Chemicals in an amount not to exceed $3,780. NE#3RTH RICHLAND H 1 L L S ~it~7 ~~ l~~~i~ April 13, 2010 FSTI lnc. 6300 Bridgepoiut Pkwy Ste 2-110 Austin, TX 78730 t '~' ~" Phone: 512.278.8800 Fax: 512.278.9355 Re: RFB No. 09-022 Annual Contract for the purchase of Aquatic Chemicals (Sodium Hypochlorite) for NRHZO awarded. by Council in May of 2009. (PI12009-021) Referenced contract was for one (1.) yearwith three (3) options to renew far additional twelve (1.2) months each. The original. contract was for the period. of May 1, 2009 through Apri130, 2010, The effective dates for the first renewal. option will run from May 15, 2010 through April 30, 2011. The North Richland Hills Purchasing Department hereby extends an invitation to FSTI Inc. to accept. the first option for an additional one (1) year period for this contract as awarded on May 18, 2009. Please mark the appropriate response below and. provide your signature above your printed name. All prices must remain firm for the Option Renewal period through April 30, ~Ulil. ''ti. , ( `~ )Yes, FSTI Inc. will accept the offer to extend. the same contract pricing throughApril 30, 20'11. (_~ No, FSTI Inc. will NOT accept the offer to extend the same contract. pricing through April 30, 201 1. Please email (lataz•~lar~4~ ~~; „rf h [;~.cc~s~z) or fax you signed response to (817)427-6151 by April 23, 2010 ~ , _ ~. J ~~~. ~ie Brockway, Purchasing Ma er Nicole Perham City of North Richland Stills FSTI Inc. Rx DatelTime RPR-21-2010{WED) 09,45 P. 001 Od12112O1O 11:03 {FA>i) P.OO1 tOO1 1 t. 1 1 I~ ~1 ~ ~ 1..~ L 1 1__.j ~ 1 L i~.~ ~x~y ~f choice Aprii l3, 2010 Valley Solvents ~ Chemicals 2565 N, $. 33'~ Sheet For Worth, TX '76111 Phant: 817.831AOOY Fax: 817.$38.5269 l'te: RPB Na. 09-022 Aisniial Contract for the puroheae of Aquatic Chemicals (Murietic Aoid) for NRI~sO awarded by Council in MaY af2O09. (PV20O9.O2i) Referenced aotrtrect was for area (1) year with throe {3) optiaus rA renew far ~Iditional twelve {i2) month each, The original cordract wss fior the period of May 1, 2009 through Apri13O, ZO1O. The e~ctive dates for the first t~tciewal option wi11 can from May 1 S, 2010 through April 30, 2011. Tile North Richland Hails Purchasing Ceparrimcttt hereby extendv au invitation to Valley Solvents. to accept the first option for an additional oi~ (1) year period ,tbr lids cantraot ss awarded on May 1$, 2009. Please merit the aPPrap~m ~panse below sari provide your signature, above year printed name. All prices must retuain fetm for the. Qptian Renewal period through Apci13O, 2011. Yes, valley Solvent a-I11 accept the oPPer to.oxJond the same contract pricing through April 30, 2Ol 1. f } Na, "Va118y Solvent will NU7' accept the offer to e~ttend tlto earns oonhact pricing through Apri13O, 2011. Please email (oSL~ in ttrh coat) or ilex you signori response to (817) X127.6151 by April 23, 2010 Sincerely, t C SI~Vry,^~ ~ -r BriC A1tA City of worth Rio6ianQ fL7is 'Valley Solvents & Chemicals CITY OF NORTH R/CHLAND HILLS Department: Budget Council Meeting Date: 5-24-2010 Presented by: Mark Mills Agenda No. B.4 Subject: GN 2010-038 Approve Agreement with Tarrant County Tax Assessor/Collector for the Collection of City Property Taxes -Resolution No. 2010-019. Summary This agenda item is to request approval of an agreement with Tarrant County Tax Assessor/Collector for the collection of city property taxes. Discussion Tarrant County has been collecting property taxes for the City of North Richland Hills since October 1993. During this time, City staff has continually evaluated the performance of the Tarrant County Tax Assessor/Collector and is pleased with the County's collection performance, customer service and cost savings realized by the City. Tarrant County has submitted an agreement for collection services for calendar year 2010. A copy of the agreement is attached for Council consideration. The agreement is essentially the same as the agreements Council has approved in the past. The cost to the City is 65 cents per account, or an estimated $15,000, depending on how many new accounts are added during the year. This rate is identical to the rate for last year's agreement. In 2008, Tarrant County increased the rate from 50 cents per account. The 2008 increase was the first increase in price for service since the City entered into the agreement with the County in 1993. Approval of Resolution No. 2010-019 authorizes the City Manager to sign the agreement between Tarrant County Assessor/Collector and the City of North Richland Hills. Recommendation: Approve Resolution No. 2010-019. NCH RESOLUTION NO. 2010-019 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. THAT the City Manager be, and is hereby, authorized to execute an agreement with Tarrant County Tax Assessor/Collector to collect the ad valorem taxes of the City of North Richland Hills. PASSED AND APPROVED this the 24th day of May, 2010. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. 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If atty dait~r t=alluctta>2 iotat is leas thug arty htzxuJteei dudlass d ~ 1 ~'~7.Qti), tttc ctiwhtteacm~k'may ix ultlzlteld uutit ahe citmnlattire tats~l of fae<s co(1uc.~i ttxzhe City egtrslc nt lz'ost urtc htnui,i, I dr,tit3~s (`i I (3~.(Jl3), tyr at the 3nse uCti~ mrntth, IL R7:PDiC~S $ jC77~,,{ c) [ ' ~Ti•rs A ~~T 1 A?CT{}T? a-..ll ~'•r r 't.lr €)t~:: (_ ity 14~c ttsllotrii~ repcxt~s, txcquestcx~.~ f Y V:tliy. tic:'tCit:~ I.~::~C[ (YA~j(: L1~.1i:t~i1 :tC~St 1Vesiv Irct r,t ~'~„ s I>.{ten? r ts7~sr:'1 &4rxtktrPy 'I•a~ F:.,St Ssn a•za~ ITc"is ;; Y:~I~~ Year ~, U":r[c'~=t mr>~:~/ It>;,~.*rt 1ki;,;l C:r.lle~tti.~n Ite~ort%Smttxnar~) .~Jj${('~!921t!?n Repor, ~S~;ama.ry) t7ei't~rlurnt Tax ~ttornty I.>~x ~srzu~s P=::~1 1'a> R~~dl C.;untne lia ,tali F1 a~~LeCtirst stl'ti~- d6,rr ~i,+,-,i kclxuq; ~ht!", t~nl}~6c nvaiE~~+le h't in!<•ttr't ~~~~sa. 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I~:*.a~, TYstk:t~,~nti~~~. i~,xhrs3,.g~u(xi;as75t1 ~~i":c.tlt rti*?ctT~r'}~uEic 1 <<aa~idx,~ittc'Sjk n r?ti..h7,#~+.~,aC>aFr,c,:~' 5x7.. ,_.., r...~-... i ~... ~..-c 1. ?k~ 3: Sk~(:~ „t ?ll~~iv\I~N`_ i..i~ I. :.i_ '.ell"*_`I.k':. ' . 1 '~ ~~~' _. .;!I]}ar . I.! ~ .. 1~t'~i. :i ~:.r3i, ut ... i_. L. ~'., -.~-iC ll1 t77i* ]C'~IIY~f L. ~if~~l l:1k FS i [ ry e ', ~jltl-• ~ ~.!3VSC {^liCl~. ~:. ~ _ ~ 71'~It ~~ SLS~y"E 'C I''~~." '+L'I['u E~;i[ls'I 1~ll5 lgxcrtr~c~tat ~k:ail .x' k[n~~.c.c.~ .:. ~. _ ., ~ . ~ t, Stlr_ tt, d~r uiti-n~.:rt~.~~'.-'- ~-r ,v h~ut i~~cscr ia... r ilui A~ _ ~,a';?ta...' .u' ~, ._. r: ;' ~„ i ~.. rl rl. ..,t.'.it at t4iC pli7i' . I~t<'I~i ar.[ ~ :~t:~rdca ~ti~r ytttutar'., "~aaliYi.kiq:i ~'.I ~. ~i.. , ._.d>Lr~;~il,.,~lt~ ;ticv~,li~ttU's{t~ i~lcY. F'tie~:l?:'ci ~rza t~7C f~k'~ 73Fi.," ~ .. -;. Y - ...-... I w~; i c,a~ty, [ k%;t~, ~~. Ft17:~5PHl[I~,R11 -- 1>4F£ ~;i.~ fc~~rrx°sr~K.r~irl.~.1~e rr,~tt TaEtR.ttiTt'tl£:~"T 1` ~'t"ltt ~'t1t! l'1~'}'tlt -~'t]KT71 B,1(~I~1..3 ~1r IXII.i..1:~ T1S m.. --__.~.„m,.___ ~... I1 t T8 rr~rr:~: t°v~ r.~~;e a' cc~t;r~'r~;~ ~r•,° ~,. t,i_~~°~~rrt~r~~~~= ~.~._ ~....__ r~.a~r: r.~x~~~~:~~r c:~~~t; ~~r ra~;~a~la ,11'F`ft(l7"I,SIY.ISlUt"tIK21f' i~Yl]("U'.IL:°tt It P: ~I)111ft1["r ~fTt)t3~'!'1'Sll!'P14~~: 1?<i!'1; ~: _ _ i _ .. ., r . , - ... CITY OF NORTH RICHLAND HILLS Department: Public Works Presented by: JCates/MCurtis Council Meeting Date: 5-24-2010 Agenda No. B.5 Subject: PU 2010-011 Gutermann Inc. in the amount of $68,339 for Subsurface Water Line Leak Detection Equipment Council action requested: Award Bid/RFB 10-027 for subsurface water line leak detection equipment for the Public Works department to the lowest qualified bidder. The proposed water line leak detection equipment is part of a proactive program that staff began several years ago to locate water line leaks. For the past few years staff has spent time visibly searching isolated areas in the city to determine if there were any water main leaks. This year the program is being expanded with the purchase of equipment to help locate water line leaks that are not easily identifiable by staff. The equipment will consist of leak detection transmitters with radio frequencies which will help staff identify water lines that are leaking underground. The equipment uses high and low frequencies through sensors that pick up sounds made when a water line is leaking. The equipment also provides an image and the distance along the water main to the detected leak. Investigating the loss of unaccounted for water has always been an important operation and has become more important with the higher costs of water and added State regulations requiring cities to account for their water usage and loss. This equipment will also help the City to meet goals set forth in the City's Water Conservation Program by allowing staff to locate water line leaks earlier and therefore reducing the amount of water lost in the distribution system. Notice of the City's intent to bid was advertised in local newspapers, as required by State statute, and posted on the City's Purchasing website. Fifteen vendors were contacted and requested to participate in this process. Bid specifications were viewed on the City's website by fourteen (14) vendors. Five (5) bids were received from the following firms: WATER LEAN DETECTION EQUIPMENT RFB 10-027 THURSDAY, APRIL 9, 201010:00 A.M. Vendor Name Texas Meter 8 Device Co. Gutermann, Ine. Water Conservation Service Green Equipment Co. Subsurface Leak DeteRian, Co. Inc. UTY Description Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cast Total 3 RD 700 53,136.62 59,416.46 $4,113.00 $12,339.00 54,100.00 512,3001M1 53,997.00 511,991.011 54,OOO.DD 512,000.00 1 ZCORR Digital 50.E 50.00 $11,500.00 $11,500.00 516,495.00 516,495.00 519,995.00 519,995.00 519,995.00 519,995.00 Correlatin Lo er Sets 1 LC2500 Leak Noise 515 995 00 815,995.00 $21,500.00 $21,500.00 520,995.00 520,995.00 524,400.00 $24,400.00 524,500.00 524,500,00 Correlator 1 Training No chg. No chg. $0.00 $0.00 S1,2W.00 51,200.00 50.00 SO.CO 51,200.00 51,200.00 Total 525,411.46 $45,339.00 550,990.tb 556,6.00 556,895.00 Estimated Delivery ARO 3-4 weeks 3 weeks ARO ARO 2 weeks 4 weeks NEXT LOW: 550,990.00 LOW: Sd5,339.00 SAVINGS: 55,651.00 The Public Works Department has reviewed the submitted bids and determined that the low bid submitted by Texas Meter & Devices Co. did not meet the minimum specifications identified in the bid documents as they did not bid the digital logging equipment. Therefore their bid was not considered. The next lowest bid was from Gutermann, Inc. in the amount of $45,339.00 and did meet the required minimum specifications. The city received very good bids compared to the estimates obtained last year when the budget for this program was being prepared. Because of the favorable bids staff is also asking Council to consider the purchase of two (2) additional digital logger sets to expand the leak detection program. The bid amount for the digital logger sets is $11,500 each. If two (2) additional correlating loggers are included the additional cost would be $23,000 (2 X $11,500 = $23,000). The two additional sets of digital loggers will allow staff to expand the operation of this program by having the ability to place the digital loggers at several additional water line locations at one time. The loggers are the components that actually collect and log the data indicating whether a leak has been detected or not. If Council allows the purchase of the additional loggers the total amount awarded to Gutermann, Inc would be $45,339 (bid amount) + $23,000 (two additional logger sets) for a total amount of $68,339. The approved budget for this project (Project #UT1004 (405-8501-712.79-04)) is $100, 000. Recommendation: To award the bid amount including the purchase of two additional logger sets to Gutermann, Inc. in the amount of $68,339. k. CITY OF CITY OF CITY OF NORTH RICHLAND HILLS Department: Planning and Development Council Meeting Date: 5-24-2010 Presented by: John Pitstick Agenda No. D.1 Subject: GN 2010-037 Initiate Amendments to zoning text for Town Center Zoning District Summary: This item is being brought forward to City Council to begin the process for updating regulations within the Town Center Zoning District which includes the Home Town development. The first step in the process is to direct staff to draft updated regulations and set public hearings before the Planning & Zoning Commission and City Council on possible amendments to the Town Center zoning district. General Description: The original Town Center zoning district was created in 1998 as part of a master planned development by Arcadia Development intended to create an integrated mixed use town center with four character subzones emphasizing a transect of less urban to more urban uses on approximately 290 acres of land. A pedestrian friendly environment was to be encouraged with new street-types including alleys, on-street parking, wide sidewalks and building setbacks closer to the street. A significant part of the developer's plan included the creation of a Tax Increment Financing District (TIF #2) to finance public improvements including a recreation center, public library and county college performing arts/conference center. As Council is aware, most of the Home Town development west of the Home Town Lakes has been developed with a majority of single family detached homes and townhomes. The Venue was built in 2007 as part of the initial commercial core development including residential lofts with first floor commercial uses adjacent to the new public library and public open space (Stormy Plaza). The Home Town Regulating Plan was last updated in 2004 at the request of the Developer. Since that time the only changes to the original zoning text included the addition of a requirement for a Special Use Permit (SUP) for all new multifamily uses within the entire city (including Home Town). This change took place in 2007. The current Town Center zoning district includes a "1998" plan and regulations for urban mixed use centers. It is dated and does not include significant improvements which are contained in more recent regulations developed with the benefit of experience. Neo-traditional mixed use developments have become more popular and more detailed regulations in other cities have been developed over the past decade for these unique developments. The current Town Center Zoning, for example, does not have any provisions for `flex space" or guidelines for "work-live" uses which have been sought on recent applications. In addition the density guidelines could be clarified and bolstered. Updating the Town Center zoning district will help to achieve the original intention of a true urban mixed use development while allowing flexibility. Please see below recommendation for motion to initiate amendments to the Town Center regulations. Recommendation: To direct staff to draft updated regulations and set public hearings before the Planning & Zoning Commission and City Council on amendments to the Town Center zoning district which include but are not limited to changes for creation of density caps, clarifying mixed use building types, defining minimum building standards, clarifying required architectural elements and removing requirements for Special Use Permits for multifamily development. CITY OF CITY OF CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Subject: GN 2010-033 Election of Mayor Pro Tem Council Meeting Date: 5-24-2010 Agenda No. F.1 Summary: The Mayor Pro Tem is elected at the first regular meeting after the canvass of the election. General Description: 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. The May 24 meeting is the first regular meeting after the canvass and Council should proceed with electing a Mayor Pro Tem at this Council meeting. Recommendation: To elect a Mayor Pro Tem CITY OF NORTH R/CHLAND HILLS Department: Finance Presented by: Larry Koonce Subject: GN 2010-034 Discussion Authorizing the Issuance of $5,850,0 Obligation Bonds, Series 2010" and Thereto Council Meeting Date: 5-24-2010 Agenda No. F.2 and Consideration of Ordinance No. 3093 ~0 "City of North Richland Hills, Texas, General Resolving Other Matters Incident and Related Summary This agenda item is to discuss and gain approval for issuing General Obligation Bonds. Discussion A bond sale is scheduled for Monday, May 24, 2010. The sale will include $5,850,000 in General Obligation Bonds for street and drainage improvements approved in the 2003 bond election (see attached summary). These include improvements for Douglas Lane (Hightower to Starnes) in the amount of $950,000, $600,000 for Starnes Road (Rufe Snow to Crosstimbers), $65,000 for Terry Drive (Susan Lee to North Richland), $70,000 for Tabor Street (Rufe Snow to Steven), $500,000 for Shady Grove Road (Davis to Clay-Hibbins), $200,000 for Briley Drive (Lariat to Rufe Snow), $650,000 for Cloyce Court (Northeast Loop 820 to Maplewood), $525,000 for Colorado Boulevard (Boulevard 26 to Harwood), $540,000 Mackey Drive (Briley to Glenview), $970,000 Trinidad Drive (Rufe Snow to Holiday), $480,000 Yarmouth Avenue (Mid-Cities to Newcastle) and $300,000 for Meadowview Estates channel drainage improvements. The City received or will receive General Obligation Bond ratings from both Moody's Investors Service and Standard and Poor's. Although we have not received a rating from Moody's at the time this agenda item is being written, we should receive the rating prior to Monday night's Council meeting. Standard and Poor's has upgraded the City's credit rating from AA to AA+. The bids on the General Obligation Bonds are due to be received and opened at 11 a.m. on Monday May 24t". The bids will be tabulated, verified, and ready to present for approval at the meeting that evening. All blanks in the attached ordinance will be filled in prior to the City Council meeting on Monday. Recommendation: Accept the low bid relating to $5,850,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2010" and adopt Ordinance No. 3093 authorizing the issuance of such bonds. City of North Richland Hills 2010 Bond Sale Projects CIP Budget Project Amount Maturity Page No. Needed General Obligation Projects 2003 Band Election Street Improvement Projects 41 Douglas Lane Street Improvements (Hightower to Starnes) $ 950,000 20 Years 75 Starnes Road (Rufe Snow Drive to Crosstimbers Lane) 600,000 20 Years 79 Terry Drive (Susan Lee Lane to North Richland Boulevard) 85,000 20 Years Engineering/Design 77 Tabor Street {Rufe Snow to Steven Street) Engineering/Design 70,000 20 Years 57 Shady Grove Road Street Improvements (Davis to Clay-Hibbins} 500,000 20 Years 27 Briley Drive Street Improvements (Lariat Tr. To Rufe Snow Road) 200,000 20 Years 33 Cloyce Couft Street Improvements (Northeast Loop 820 to 650,000 20 Years Maplewood Ave.) 35 Rdi) rado Blvd. Street Improvements (Boulevard 26 to Harwood 525,000 20 Years 45 Mackey Drive Streets Improvements (Briley Or. to Glenview Dr.) 540,000 20 Years 63 Trinidad Drive Street Improvements (Rufe Snow Dr. to Holiday 000 970 20 Years Lane) , 65 Yarmouth Avenue (Mid-Cities Blvd. to Newcastle PI.) 480,000 20 Years 109 Meadowview Estates Channel Drainage Improvements 300,000 20 Years (Engineering /Design) Tota! G.O. 2003 Bond Election Projects 5,850,000 Total 2010 G.O. Bonds Budget $ 5,850,000 ORDINANCE N0.3093 AN ORDINANCE authorizing the issuance of "CITY OP' NORTH RICHLAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2010"; 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; and providing an effective date. WHEREAS, the City Council finds and determines that general obligation bonds in the principal amount of $5,850,000 approved and authorized to be issued at an election held February 1, 2003, should be issued and sold at this time; a stmlmary of the general obligation bands authorized at said election, as well as at an election held September 27, 1994, 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: Amount Date of Amount Previously Being Unissued Election _Purpoee Authorized Issued Issued Balance 9-27-1994 Street improvements $ 20,000,000 $ 19,575,000 $ 0 $ 425,000 2-1-2003 Street Improvements 30,01.0,000 10,955,000 5,850,000 13,360,000 2-1-2003 Drainage Improvements 4,000,000 1,340,000 0 2,660,000 2-1-2003 Public Safety Facilities 1,900,000 1,650,000 0 250,000 2-I-2003 Animal Shelter 1,300,000 0 0 1,300,000 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 mare installments when, in the judgment of the City Council, funds are needed to accomplish the purposes for which such bonds were voted; now, therefore, BE IT ORDAINED BY "CHE CITY COUNCIL OF THE CITY OP' NORTH RICHLAND HILLS, TEXAS: SECTION 1: Authorization -Designation -Principal Amount - Purpose. General obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $5,850,000, to be designated and bear the title "CITY OF NORTH RICHLAND I1ILhS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2010" (hereinafter referred to as the "Bonds"}, for permanent public improvements and public purposes, to wit: street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of--way therefor, in accordance with the Constitution and laws of the State of Texas, including V.T.C.A,, Government Code, Chapter 1331, as amended. 85618678.!/!0910791 SECTION 2: Fully Registered Obli ag tions -Bond Date -Authorized Denominations - Stated Maturities -Interest Rates, The Bonds shall be issued as fully registered obligations only, shall be dated May 1 S, 2010 {the `Band Date"), shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and shall become due and payable on February l5 in each of the years and in principal amounts (the "Stated Maturities") in accordance with the following schedule: Maturity Principal Interest Date Amount Rates 2011 $ 295,000 2012 295,000 2013 295,000 2014 295,000 201 S 295,000 2016 295,000 2017 295,000 20l 8 295,000 2019 295,000 2020 295,000 2021 290,000 2022 290,000 2023 290,000 2024 290,000 2025 290,000 2026 290,000 2027 290,000 2028 290,000 2029 290,000 2030 290,000 The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the rate(s) per annum shown above in this Section {calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on Febrtiuy 1 S and August 1 S in each year, commencing February 1 S, 2011, until maturity or earlier redemption. SECTION 3: "Perms of Payment - Paving A eg nt/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 Bands {hereinaRer called the "L-tolders") 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 The Bank of New York Mellon Trust Company, N.A., Dallas, Texas, to serve as Paying AgentlRegistrar for the Bonds is hereby approved and. confirmed. Books and records relating to the registration, payment, transfer and exchange of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by 83618618.1/10910791 the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agent/Registrar Agreement", substantially in the form attached hereto as Exhibit A, and. such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor or Mayor Pro Tem and City Secretary are authorized to execute and deliver such Paying Agent/Registrar Agreement in connection with the delivery of the Bonds. The City covenants to maintain and provide a Paying AgentlRegistrar at all times until the Bonds are paid and discharged, and any successor Paying Agent/Registrar shall be a commercial bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to prompfily cause a written notice thereof to he sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or on a date of earlier redemption thereof only upon presentation and surrender of the Bonds to the Paying Agent/Itegistrar at its designated offices, initially in Dallas, Texas, or, with respect to a successor Paying Agent/Registrar, at fire designated offices of such successor (the "Designated Payment/Tralisfer Office"). Interest on the Bonds shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agentl:Registrar, requested by, and at the risk and expense of, file I-Iolder. If the date f'or the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/`I'rausfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special. Record Date and of the scheduled payment date of the past due interest (which shall be 15 days ai~er 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 Molder appearing on the Sectuity Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a} Optional Redemption. The Bonds having Stated Maturities on and after February 15, 2021, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and. if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2020 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. 85618678.1/10910791 (b) Exercise of RedemLtion Option. 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 amotutt of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City #o exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the City. {c) Selection of Bonds for Reden~tion. 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,t)00 and shall select the Bonds, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date far 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 ar 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 ofmailing such. notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the I-lolder. All notices of redemption shall (i) specify the date of redemption far the Bonds, (ii) identify the Bonds to he redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii} state the redemption price, {iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption. date specified, and. the inerest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after Che redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/Registrar only upon presentation and. surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption, and has keen called. for redemption, and notice of redemption thereof has been duly given as hereinabove provided, such Bond (or the principal amoun# thereof to be redeemed} shall became 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. (e) Conditional Notice of Redem„gtian. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional. upon the receipt of such moneys by the Paying Agent/Registrar on ar prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and. effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. 85618678.1/10910791 SECTION 5: Registration -Transfer -Exchange of Bonds -Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each 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 Designated PaymentlTransfer Office of 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) referenced in Section 8 hereof) for transfer at the Designated Fayment/Transfer Office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the n~une of the designated transferee or transferees, one ar more new Bonds of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. At the option of the Holder, Bonds {other than the Initial Bond{s) referenced in Section 8 hereof) may be exchanged for ather Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated PaymentlTransfer Office of the Paying 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/12egistrar 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 tinder 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 Age>rtlRegisirar shall require payment by the Holder requesting such transfer or exchange of any tax or other govenunental 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 ar 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. 85618678.1110910791 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-Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transferlexchange 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 'Tn~st Company, a limited purpose trust company organized under the laws of the State of New York ("DTC"), 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 acid the rules of DTC, the Bonds shall be deposited with DTC who shall hold said Bonds for its participants (the "D1'C Participants"). While the Bonds are held by DTC under the Depasitory Agreement, the Nolder of the Bonds on the Security Register far 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 "Benefcial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the l~oiders 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 he. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying AgentlRegistrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution - Registration. The Bonds shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Bonds may be manual or facsimile. fonds 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. purchasers} and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Goveniment Code, Chapter 1201, as amended. No Band 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 9(c), manually executed by the Comptroller of Public Accounts of the State of'I'exas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9(d), manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed $561 $678.1/I091o791 upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8: Initial Bondfs). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the aggregate principal amount of the Bands 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 Bond(s) 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 afrer the delivery of the Initial Bond(s), the Paying Agent/Regish•ar, pursuant to written instructions from the initial ptvchaser(s}, or the designee thereof, shall cancel the Initial. Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, prn~cipal amounts and. bearing applicable interest rates for transfer and delivery to the Molders named at the addresses identified therefor; all pursuant to and. in accordance with such written instructions $om the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrarrnay reasonably require. SECTION 9: Forms. (a) Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends uid 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, engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. 8i618678.V1091079t (b) Form of Definitive Bond. REGIS"I'ERED NO. REGISTERED UN1T`EI) S"PATES OF AMERICA STATE OF 'TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BOND, SERIES 2010 Bond Date: In erest Rate: May 15, 2010 Stated Maturity: CUSIP NO: February 15, 20_ Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the 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 interest payment date next preceding the "Registration Date" of this Bond appearing below (unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless the "Registration Date" of this Bond is prior to the initial interest payment date in which case it shall bear interest 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 1 S and August 1 S in each year, commencing February 15, 20I 1, until maturity or earlier redemption. Principal of this Band is payable at its Stated Maturity or on a date of earlier redemption to the registered owner hereof, upon presentation. and surrender, at the Designated Payment/Transfer Office of the Paying AgentRegistrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced.) whose name appears on the "Security Register" maintained by the Paying AgendRegistrar 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 AgendRegistrar 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 Agentlltegistrar, requested by, and at the risk and expense of, the registered owner. 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 Paymen.t(Transfer Office of the Paying AgendRegistrar is located are authorized by law ar executive order to close, then. the date for such payment shall be the next succeeding day which is not such. a Satr~rday, 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 8561863$. U I (N)10791 date payment was due. 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 ~imount of $5,850,000 (herein referred to as the "Bands") for permanent public improvements and public purposes, to wit; 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 and after February 15, 2021, may be redeemed prior to their Stated Maturities, at the option of the City, in whale or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Mattuity by lot by the Paying Agent/Registrar), on February 15, 2020, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. At least thirty days prior to the date fixed for arty redemption of Bonds, the City shall cause a written. notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Bond (ar any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then. upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. In the event a portioct of the pritcipal 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 arnount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Uffice of the Paying Agent/Registrar, and a new Bond or Bonds of like mattuity 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. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premitun, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction RSbIR67R.I11U91U791 of any prerequisites set forth. in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been. redeemed. T'he 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 PaymendTransfer Office of the Paying Agent/Registrar, and to ali 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 there~mder; and for other ternls and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated. Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying AgendRegistrar to the designated transferee or transferees. The City and the Paying Agent/ltegistrar, and. any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled. to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date far such interest payment (a "Special Record Date") will be established by the Paying AgendRegishar, 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 steal! be 1S 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 SSb18678.1/J0910791 1a 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 Bands 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 Bands by the levy of a tax as aforestated. In case any provision in this Bond shall he invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed. by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly executed tinder the official seal of the City as of the Bond Date. CITY OF NORTH RICHLAND I-TILLS, TEXAS 'Mayor COUNTERSIGNED: City Secretary (City Seal) (c) Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Band(sl only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUN"1 S OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS ) REGIS'I'EK NO. THE STATE OF TEXAS I HEREBY CER"I'1FY 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 (SEAT,) 8561$678,VI0910791 1 1 (d) Form of Certificate of Pavi. n~ Agent/Registrar to appear on nefinitive Bonds only, REGIS"1'RATION 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 th.e Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying AgentlRegistrar in Dallas, Texas is the "Designated Payment/Transfer Office" for this Bond. THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., Dallas, Texas Registration date: By: _ Authorized Signature (c) Form of Assigtunent. ASSIGNMENT FOR. VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security ar other identifying number )the within Bond and all rights thereunder, and hereby irrevocably cotrstitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitutian in the premises. DATED: NOTICE: The signature on this assigtunent must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Bond in every particular. 856I8678,111091b791 12 (e) The Initial. Bond(s) shall be in the form set forth in paragraph (b) of this Section. except that the form of the single full registered Initial Bond shall be modified as follows: REGISTERED NO. T-1 UNITED STATES OF AA~[ERICA S"FATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BOND, SERIES 2010 Bond Date: May 15, 2010 Registered Owner: REGISTERED $5,850,000 Principal Amount: FIVE MILLION EIGHT HUNDIZID FIFTY THOUSAND 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 Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 1 S in each of the years and in principal installments in accordance with. the following schedule: MATURITY PRINCIPAL INTEREST DA1"E AMOUNT RATES (Information to be inserted from schedule in Section 2 hereof). (or so much principal thereof as shall not have been redeemed prior to maturity) and to pay interest on the unpaid Principal Amount hereof from the Bond Date at the per annum rates of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February iS and August LS in each year, commencing February 15, 2011, until maturity or earlier redemption. Principal installments of this Bond are payable on the Stated Maturity dates or an a redemption date to the registered owner hereof by "fhe Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the "Paying Agent/Registrar"), upon its presentation and surrender at its designated offices, initially in Dallas, Texas, or, with respect to a successor paying agent/registrar, at the designated office of such successor (the "Designated Payment/Transfer Office")Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying AgentlRegistrar 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 AgendRegistrar, requested by, and at the risk and expense of, the registered owner. 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 stay when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located. are authorized by law or executive order to close, then the date 85618678.1110910791 j 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. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof atad in any coin or currency of the tlnited States of America which at the time of payment is Iegal tender for the payment of public and private debts. SEC'f1UN I(l: Levy of Taxes. To provide for the payment of the "Debt Service Requirements" of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their payment at maturity or redemption or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, farm, and manner, a tax on all taxable property in the City, within the limitations prescribed by Law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Bonds shall. be at a rate From year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and collected for and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Bonds shall be deposited to the credit of a "Special 2010 Bond Account" (the "Interest and Sinking Fund") maintained an the records of the City and deposited in a special fund main ained 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. The Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance and City Secretary of the City, any one ar more of said officials, 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 artd 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 1 l: Mutilated - Destro e~Lost and Stolen Bonds. In case any Bond shall be mutilated, ar destroyed, lost or stolen, the Paying AgendRegistrar may execute and deliver a replacement Bond of like form and kenos, 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 I3ond, 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/Itegistrar of the destruction, lass ar 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 indemtuty 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. 8561867$.1!1 D910791 14 Every replacement Bond issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and. remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Bonds. SECTION 12: Satisfaction of Obligation of City. if the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of; premium, if any, and. interest nn the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amotmt(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/Kegistrar, or an authorized escrow agent, or (ii) Uovernrnent Securities shall have been irrevocably deposited in tn~st with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such. times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived ar 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 tuzder 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 AgentlRegistrar, or an authorized escrow agent, pursuant to this Section which is nat required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on die Bonds and remaining unclaimed for a period of three {3) years after the Stated Maturity or applicable redemption date of the Bonds (for which such moneys were deposited and are held in tnist 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 Agcnt/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. SSfi 18678.010910791 15 The term "Government Securities" shall mean {i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instnimentality and, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating frln 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 that, an the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. SECTION 13: Ordinance a Contract -Amendments - Outstanding Bonds. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section and in Section 28 hereof. 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, inchding the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Molders holding a majority in aggregate principal amount of the Bonds then Outstanding, amend, add to, or rescind any of -the provisions of this Ordinance; provided that, without the consent of all I-folders of Outstanding Bonds, no such amendment, addition, or rescission shall (I) extend the time or times of payment of the principal. of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price Therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, {2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate prhtcipal amount of Bonds required to be held by Flolders 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 AgenURegistrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and {3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in Section 1 I hereof. 85618678.1110910791 1( SECTION 14: Covenants to Maintain Tax-Fxempt Status. (a) Definitions. When used in this Section 14, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-I (h) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds. "Investment" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in Section 1.14$-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed #o supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1..148-5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable, The City shall not use, permit the use of, or ornit to use Gross Proceeds or any other amounts (or any property the acquisition, constntction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section bl of the Code, of the owner thereof far federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion. of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely 656 t 867$.li 10910791 1 7 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 Pa,~nts. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the Iasi Stated Maturity of Bonds; (1} exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bands, and not use or permit the use of such Gross Proceeds (including al] contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general. public; and (2} not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except do 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 persan 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 persan 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 atake-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) Nat to Invest at Higher Yield. Except to the extent permitted by section. 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the fana] Stated Maturity of the Bonds duectly 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 Cade and the Regulations and rulings thereunder, the City shall not take or omit to lake any 85618678.1110910791 1 $ action evhicb 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. "I'he City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Fonn 8038-G ar such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitraee Profits. Except to the extent otherwise provided in section 1480 of the Code and the Regulations and rulings thereunder: {1) The City shall account far 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 flee 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 Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers {defined below) a1~d the loan of the money represented thereby and in order to induce such. purchase by measures designed to instue 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 from the construction fund, the general fund, or other appropriate fund or, if permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the Interest and Sinking Fund, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f} of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required. by Section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a 856 t 8678. ] /10410791 19 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 Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection h of this Section because such transaction results in a smaller profit ar a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. (j} Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance and City Secretary, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. SECTION 15: Sale of Bonds. Pursuant to a public sale for the Bonds, the bid submitted by __...._ (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Bonds to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ , is hereby approved and confirmed. Delivery of the Bonds to the Purchasers shall. occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 16: Official Statement Approval. The use of the Preliminary Official Statement, dated May 13, 2010, by the Purchasers in connection with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, Mayor Pro Tem, City Secretary, City Manager, Assistant City Manager, and Director of 1 finance, any one or more of said officials), shall be and is hereby in all respects approved and the Ptuchasers are hereby authorized to use and. distribute said final Official Statement, dated May 24, 2010, in the reoffering, sale and delivery of the Bonds to the public. SECTION 17: Control and Custodv 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. SECTION 18: Proceeds of Sale. The proceeds of sale of the Bonds, excluding the accrued interest received from the Purchasers and amotutts to pay casts of issuance, shall be deposited in a construction fluid maintained at the City's depository bank. Pending expenditure far authorized projects and purposes, such proceeds of sale may be invested in authorized 85618678.U1041p191 20 investments, including guaranteed investment con#racts permitted by V.T.C.A., Section 2256.015 et seq.., and the City's investment policies and guidelines, and, subject to the provisions of Section 14(h) hereof, any investment earnings realized shall be expended for such authorized projects and purposes ar deposited in the Interest and Sinking Pund as shall be determined by the City Council. Accrued interest received from the Purchasers as well as all surplus proceeds of sale of the Bonds, including investment. earnings, remaining after completion of all authorized projects or purposes and paying ar making provision for the payment of the amounts owed pursuant to Section 14(h} hereof shall be deposited to the credit of the Interest and Sinking Fund. SECTION 19: Notices to Holders -Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security 12egister 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 I3alders, 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 native, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice, tirJaivers of notice by Ilolders shall he filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 20: Cancellation. All Bands surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. 'The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held by the Paying AgentlRegistrar shall be ceturncd to the City, SEC'T'ION 21: Le ag 1 Opinion. The obligation of the Purchasers to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & laworski I,.L.P., Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion or an executed counterpart thereof shall accompany the global Bonds deposited with DTC or a reproduction thereof shall be printed on the definitive Bonds in the event the book- entiy-only system is discontinued. 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 shalt 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. 8561 8678.1110910791 21 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, raider ar by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Ilolders. SECTION 24; Inconsistent Provisions. Alt 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: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of'I'exas and the United States of America. SECTION 26: Effect of Headings. The Section headings herein are for convenience only and shall not affect the constnictian. 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, 4vords of the phtral 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. SEC°I'ION 28: Continui~ 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. "Rule" means SEC Rule I Sc2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. (b) Anmrat Reports. The City shall provide annually to the MSRB (1) within six. months after the end of each fiscal year, beginning in and after 2010, financial information and operating data with respect to the City of the general type included in Official Statement and described in Exhibit B hereto, and (2) if not provided as part of such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so provided shall be prepared in accordance with. the accounting principles described in Exhibit 13 hereto, or such. other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and 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 the City changes its fiscal year, it will notify the MSRB 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 Co provide financial information and operating data pursuant to this Section. 85618678.1/10910791 22 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 available to the public on the MSRB's Internet Web site or filed with the SEC. (c) Material. Event Notices. The City shall notify the MSRB, in a timely maruzer, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: (I) Principal and imerest payment delinquencies; (2) Non-payment related def.'aults; (3} Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opizzions or events affecting the tax-exempt status of the Bonds; (7) Modifications to rights of holders of the Bonds; (8) Bond calls; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds; and (11) Rating changes. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Filin s with the MSRB. All financial information, operating data, financial statements, notices and other documents provided to the MSRB in accordance with this Section shall be provided in an electronic format. prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. (e) Limitations Disclaimers and Amendments. 'T•he 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) of this Sectio^ of any Bond calls and defeasance that cause the City to be tzo longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. 8.5618678.1 / 10410791 ~3 UNDER NO CIRCUMSTANCES SHALL `CHE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTI-I.ER PERSUN, IN CONTRACT OR TORT, FOR DAMAGES RESULTING 1N WHOLE OR IN PART FROM ANY BREACH BY THE CI"fY, WHETHER NECrLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS 5EC'CION, BUT EVERT' RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT Oll 'CORY, FOR OR ON ACCOUN"T OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORIvIANCE. No default by the City in observing or perforn~ing its obligations under this Section shall constitute a breach of or default under this Ordina~ice for purposes of any other prevision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties crf the City under federal and state securities laws. Notwithstanding anything herein to the contrary, 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, nahire, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted air underv~niter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such. amendment, as well as such changed circumstances, and {2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of dle 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 lime 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 next provided pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION' 29: Severability. If any provision of this Ordinance or the application thereof to any circtunstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been. enacted without such invalid provision. SECTION 30: Further Procedures. Any one or more of the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, and City Secretary are hereby expressly authorized, empowered and directed from time to tune and at any time to do and. perform all such acts and things and to execute, acknowledge and deliver in the name and on behalf of the City all 856I8678.Ui091079t 24 agreements, instruments, certificates or other docuuments, whether mentioned herein or not, as may be necessary ar desirable in order to carry out the terms and provisions of this Ordinance grid the issuance, sale and delivery of the Bands. In addition, prior to the delivery of the Bonds, the Mayor, Mayor Pro Tern, City Manager, Assistant City Manager, Director of Finance or Bond Counsel to the City are each hereby authorized and directed to approve any changes or corrections to this Ordinance or to any of the documents authorized and approved by this Ordinance: (i) in order to cure any ambiguity, fornlal defect, or omission in the Ordinance or such other document, or (ii) as requested by the Attorney General of the State of Texas or his representative to obtain the approval of the Bonds by the Attorney General. In the event that any officer of the City whose signature shall appear on any document shall cease to be such officer before the delivery of such document, such signature nevertheless shall be valid. and. sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 31: [Band Insurance. The Bonds have been sold with the principal. of and interest thereon being insured by .] SECTION 32: Incorporation of Findings and Determinations. The findings and determinations of the City Council captained in the preamble hereof are hereby incorporated by eeferenee and made a part of this Ordinance for all purposes as if die same were restated in full in this Section. SECTION 33: Public Meeting. It is affcially 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, a`5 amended. SF.,CTION 34: Effective Date. Tlris Ordinance shall take effect and be in full force from and after its adoption an the date shown below in accordance with V.T.C.A., Goverrunent Code, Section 1201.028, as amended. [Remainder of page leJi blank intentionally) RSb 1 R67R.1t 10910791 25 PASSED AN.D ADOP`T'ED, this May 24, 2010. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGAI,I'I'Y: Ciry Attorney (City Seal) APPROVED AS TO CON"T'EN'T': Director of Finance B SG 18G78. !/ t 0910791 S-1 EXHIBIT A I'AYTNG AGENT/REGISTRAR AGREEMENT RSG18673.1/10910791 A-] EXHIBIT B DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 28 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or tinder the headings of the Official Statement referred to) below: "I"he Ciiy's anneal financial statements. 2. The information in the Official Statement under'I'ables 1 through 5 and 7 tlu•ough 14. Accounting Principles The accounting principles referred to in such Section are generally those described in Appendix B to the Official Statement, as such principles may be changed from time #o time to comply with state law or regulation. R5618678. I / 10910791 $-1 CITY OF NORTH R/CHLAND HILLS Department: Finance Council Meeting Date: 5-24-2010 Presented by: Larry Koonce Agenda No. F.3 Subject: GN 2010-035 Discussion and Consideration of Ordinance No. 3094 Authorizing the Issuance of $23,740,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2010" and Resolving Other Matters Incident and Related Thereto Summary Discussion and request for authorization to issue Certificates of Obligation. Discussion On March 22nd, City Council authorized the City Secretary to publish by April 4, 2010 a notice in a newspaper of general circulation of the intent of the City to issue Certificates of Obligation. Notices were published in accordance with State law. The sale of $23,740,000 in Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation for the recreation center construction, utility water and wastewater projects, drainage projects, NRHzO strategic plan projects, Boulevard 26 improvements and equipment replacement (see attached summary) will be completed on May 24, 2010. The City received or will receive Certificates of Obligation ratings from both Moody's Investors Service and Standard and Poor's. Although we have not received a rating from Moody's at the time this agenda item is being written, we should receive the rating prior to Monday night's Council meeting. Standard and Poor's has upgraded the rating from AA to AA+. The Certificate of Obligation bids are due to be received and opened at 11 a.m. on Monday, May 24th. The bids will be tabulated and verified for the Monday evening meeting. The results of the Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation sale will be presented to City Council at the regular meeting Monday. All blanks in the ordinance will also be filled out prior to the City Council meeting. The City Council will be requested to approve the ordinance prepared by our bond counsel, Fulbright and Jaworski. The ordinance is enclosed for your consideration. This ordinance also authorizes all other necessary actions such as paying agent/registrar agreements. Recommendation: Accept the low bid relating to $23,740,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2010" and adopt Ordinance No. 3094 authorizing the issuance of such certificates of obligation. City of North Richland Hills 2010 Bond Sale Projects CIP Budget Project Amount Maturity Paye No. Needed Certificates of Obligation Projects Recreation Center Project Through 204 Recreation Center (TIF 2) Construction 18,800,000 2027 (life of TIF2) Subtotal C.O. Recreation Center Project 18,800,000 TIF 1 Expansion Through 237 Boulevard 26 Intersection Improvements /Utility Burial 1,000,000 2019 (life of TIF1 Expansion) Subtotal C.O. TIF 1 Expansion 1,000,000 Aquatic Park Projects 191 Food Service Building (Professional Services) 55,000 20 Years 192 New Attraction 2011 (Professional Services) 170,000 20 Years Subtotal C.O. Aquatic Park Project 225,000 Drainage Projects 89 Briarwoods Estates Improvements 1,615,000 20 Years 105 Meidelburg Court Drainage Improvements (Engineering !Design) 25,000 20 Years 91 Brookhaven Drive Improvements 220,000 20 Years 99 Odell Street Improvements 475,000 20 Years 101 Steeple Ridge tmprovements 130,000 20 Years Subtotal C.O. Drainaye Projects 2,4&5,000 City of North Richland Hills 2010 Bond Sale Projects CIP Budget Project Amount Maturity Page No. Needed Utility Capital Projects 41 Douglas Lane Street Utility Relocation (Hightower Dr. to Starnes Read) 145 Telemetric Water Meter Annual Replacement (2010) Subtotal C.O. Utility Capital Projects Capital Equipment Replacement 215 Aerial Bucket Truck Replacement Unit 604 220 Ambulance Replacement Unit 946 221 Backhoe/Loader Replacement Unit 502 Subtotal C.O. Equipment Replacement Tota12010 C.O.s 455,000 20 Years 350,000 10 Years aoS,DDo 130,OD0 10 Years 245,000 10 Years 70,000 10 Years 445,000 $ 23,740,000 ORDINANCE NO. 3094 AN ORDINANCE audiorizirrg the issuance of "CITY OF NORTH RICHI.AND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2010"; specifying the teens and features of said certificates; providing for the payment of said certificates 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 Sewer System; and resolving other matters incident and relating to the issuance, payment, security, sale and delivery of said certificates, including die approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of an Official Statement; and providing an effective date. WFIEREAS, notice of the City Council's intention to issue certificates o:f obligation in the maximum principal. amount of 523,740,000 for the purpose of paying contractual obligations to be incurred for (i} canstrtrcting, improving and equipping NRI-1z0 water park; {ii) purchasing equipment for ambulance service, including vehicles related thereto, (iii} purchasing equipment for public works department, including vehicles related thereto (iv) canst3•ucting anti improving the City ofNorth Richland Hills water and sewer system, (v) constructing and improving City of North Richland .Hills streets and drainage, (vi) constructing and equipping a new recreation center facility, and (vii) professional services rendered in relation to such projects and the financing thereof, has been duly published in the Fort YVorlh Star Telegram, a newspaper hereby found and determined. to be of general circulation in the City of North Richland Hills, Texas, on March 26, 2010 and April 2, 2010, the date of the gist publication of such notice being not less than thirty-one (31) days prior to the tentative date stated therein. for the passage of the ordinance authorizing the issuance of such certificates; and WHEREAS, the City Cauncil met on May 10, 201.0 and announced at the meeting that the consideration on the ordinance authorizing the certificates of obligation described in the aforesaid notice would be delayed to the May 24, 2010 meraing of the City Cauncil; and 1~JI-IEREAS, na petition protesting the issuance of the certificates of obligation and bearing valid petition signatures of at least 5% of the qualified electors of the City has been presented to or filed with the Mayor, City Secretary or airy other official of the City on or prior to the date of the passage cif this Ordinance; and WHEREAS, the City Cauncil hereby finds and determines that the certificates of obligation described in the aforesaid notice should be issued and sold at this time in the amount and manner as hereinafter provided; now, therefore, }3E IT ORDAINED BY THE CITY COUNCIL OF' THE CI`I•Y OF NOR.TH'RICHLAND HILLS, TEXAS: SECTION 1: Authorization, Desi,nation, Principal Amount I'u~ose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal SSG033S8.2i10910191 amount of $23,740,000, to be designated and bear the title "CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITF.,D PLEDGE) REVENCJE CERTIFICATES OF OBLIGATION, SERIES 2010" (hereinafter referred to as the "Certificates"), for the purpose of paying contractual obligations to be incurred for (ij constructing, improving attd equipping NI2HZ0 water park, (ii) purchasing equipment for ambulance service, including vehicles related thereto, (iii) purchasing equipment for public works department, including vehicles related thereto (iv) constructing and improving the City of North Richland Hills water and sewer system, (v) constn~cting and improving City of North Richland I-Tills streets and drainage, (vi} constructing and equipping a new recreation center facility, and (vii) professional services rendered in relation to such projects and the financing Checeof, pursuant to authority conferred by and in conformity with the Constitution and laws of the State of Teaas, including V.T.C.A., Local Government Code, Subchapter C of Chapter 271, as amended. SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated M.atw•ities -Date. The Certificates are issuable in firlly registered form. only; shall be dated May I5, 2010 (the "Certificate Date") and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity) and the Certificates shall become due and payable on February I S in each of the years and in principal amounts (the "Stated Maturities") and bear interest at the per annum rate(s) in accordance with the following schedule: Maturity Principal Interest ate Amount. Rate s 2011 $ 1,470,000 2012 1,470;000 2013 1,465,000 2014 1.,460,000 2015 1,460.,000 2016 1,455,000 2017 1,455,000 2018 1.,455,000 2019 ].,455,000 2020 1,340,000 2021 1,265,000 2022 1,260,000 2023 1,260,000 2024 1,255,000 2025 1,255,000 2026 1,255,000 2027 1,255,000 2028 150,000 2029 150,000 2030 1.50,000 "1'he Certificates shall bear interest on the unpaid principal amounts from the Certificate Date at the rates per annum shown above in this Section (calculated on the basis of a 360-day 8ifi1733 i8.?.110910991 year of twelve 3Q-day months), and such interest shall be payable on February 1 S and August 15 in each year, commencing February 15, 2011, until maturity or prior redemption. SECTION 3: Terms of Payment -Paying A,gent/Re~istrar, "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 "I-Iolders") appearing on the registration and transfer boolts 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 The Bank of New York. Mellon Trust Company, N.A., Dallas, Texas, to serve as Paying AgentlRegistrar 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 A.gent/Registrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor or Mayor Pro Tent and City Secretary are authorized to execute and deliver such Paying AgenURegistrar Agreement in comzection 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 AgendRegistrar shall be a commercial bank, trust company, f nancial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Itegistrar. Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice thereof to bc; 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 on a date of earlier redemption thereof only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its designated offices, initially in Dallas, 'Texas, or, with respect to a successor Paying Agent/Registrar, at the designated nffces of such successor (the "Designated Payment/Transfer Office"). Interest on the Certificates shall be paid to the Molders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment. date) and shall be paid by the Paying Agent/Registrar (i} by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Sectn•ity Register or {ii) by such other method; acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated PaymentlTransfer Office of the Paying AgentlRegistrar 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 institttions 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. R 56(1333 R.2/ t 04 l 0141 In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a nerve record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if atzd when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Certificates having Stated Maturities cxt and after February 15, 2021 shall. be sul?ject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any inteb~ral nndtiple therenf (and if within a Stated Maturity by lot by the Paying Agent/Registrar}, oft February 15, 2020, or on any date thereafter at the redemption price of par plus accrued interest to the date of redernptian.. (b) Exercise of Redemption Option. At least forty-five (45) days prior to a redemption date for the Certificates (unless a shorter notification period shall be satisfactory to tltc 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. (c) Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Certifcotes as representing the tnunber of Certificates Outstanding which is obtained by dividing the principal amount of such Certificates by $5,000 and shall select the Certificates, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d) Notice of Redem tion. 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 I-lolder 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 sa mailed shall be conclusively presumed to have been duly given irrespective of whether received by the 1-lolder. 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 o1• the principal. amotult 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 an the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, sha1.1 cease to accrue from and after the redcrnption date, and (v) specify that payment of the redemption price far the Certificates, or the principal amount thereof to be redeemed, shall. be made at the Designated Payment/Transfcr Office of the Paying AgentlRegistrar only upon presentation and surrender thereof by the Bolder. SS60i3?~3/IUIlU791 If a Certificate 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 Certificate (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue Pram and after the redemption date therefor, provided moneys sufficient for the payment of such Certificate (or of the principal arnormt thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. (e) Conditional. Notice of Redemption. With respect to any optional redemption of the Certificates, unless moneys suffrcient to pay the principal of and premium, if guy, and interest on the Certificates to be redeemed shall have been received by the Paying AgentlRegish•ar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if• sufficient moneys are not received, such notice shall be of na force and effect, the City shall not redeem such Certificates and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption i~°as given, to the effect that the Certificates have not been redeemed. SECTION 5: Registration - Transfer - 1xchange o_f Certificates - Predecessor Cetificates. The Paying Agent/Registrar shall obtain, record, ar~d 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 Haider, in person or by his duly authorized. agent, upon surrender of such Certificate to the Designated Payment/Transfer Office of the Paying AgentlRegistrar far cancellation, accompanied by a written instrument of tr~^ursfer or request for exchange duly executed by the 1-folder or by his duly authorized agent, inform satisfactory to the Paying Agent/Registrar. Upon surrender of any Certificate (other than the Initial Certificate(s) authorized in Section 8 hereof) for transfer at the Designated Payment/"lansfer Office of the Paying AgentJRegistrar, the Paying Agent/Regish•ar shall register and deliver, in the name of the designated transferee or transferees, one ar more new Certificates of authorized denominations and having Che same Stated Maturity and of a like aggregate principal amount as the Certificate or Certiticates surrendered for transfer. At the option of the Holder, Certificates (other than the Initial Certificate(s) authorized in Section 8 hereof) may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Certificates surrendered for exchange, upon surrender of the Certificates to be exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Certificates are surrendered for exchange, the Paying AgentlRegistrar shall register and deliver new Certificates to the Holder requesting the exchange. All Certificates issued in any transfer or exchange of Certificates shall bc: delivered to the lloldcrs at the Designated PaymentlTransfer Office of the Paying Agent/Registrar or sent by United States Mail, first class postage prepaid, to fire Holders, and, upon the registration and Ri60335R.~10910791 delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered in such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the I-Iolder 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 transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Certificates," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced. by the new Certificate or Certificates registered and delivered in the exchange ar transfer therefor. Additionally, the term "Predecessor Certificates" shall include any mutilated, lost, destroyed, or stolen Certificate for which a replacement Certificate has been issued, registered and delivered in lieu thereof pursuant to the provisions of Section l9 hereof and such new replacement Certificate shall be deemed to evidence the same obligation as tltc mutilated, lost; destroyed or stolen Certif rate. Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to aft assigner: 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 lintitatio^ on transferability shall not be applicable to an exchange by the Holder of the tutredeemed balance of a. Certificate called for redemption in part. SEC"PION 6: Boole-Entry-Only Transfers and "Cransactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the paytnent, attd transfer/exchange of the Certificates, the City hereby approves and authorizes the use of "Boole-Entry-Only" securities clearance, settlement and transfer system provided by The Depository "Crust Company, a limited purpose d~usi company organized under the laws of fife State of New `Iorlc ("DTC"), in accordance with fife operational arrangements referenced in the Blanket Issuer l,,etter of Representations by acrd between the City and DTC (the "Depository Agreeuent"). Ptrrsuant to the Depository Agreement and the rules of DTC, the Certificates shall be deposited with DTC who shall hold said Certificates far its participants (the "D"CC Participants"). While the Certificates are held by DTC ander the Depository Agreement, the Haider of the Certificates on the; Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of D1'C, notwithstanding the ownership of each actual purchaser or owner of each Certificate (the `Beue#icial Owners") being recorded in the rccc>rds of DTC and UTC Participants, In t}re event D`CC detennincs to discvntittue serving as securities depository for the Certificates or otherwise cc;ases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Certificates, the City covenants and agrees with the Holders of the Certificates to cause Certificates to be printed. in definitive form and provide for the Certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the 816033?8.?!10910791 (~ case may be. Thereafter, the Certificates in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying AgeaitJRegistrar 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. '171e 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 Certificate L7ate 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 ~~.T.C.A., Govenunent Code, Chapter 1201, 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 9(e}, 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 9(d), 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 $: Initial Certificate{sl. The Certificates herein authorized shall be initially issued either (i) as a single fully registered certificate in the total principal amount stated in Section I hereof with principal installments to become due and payable as provided in Section 2 hereof and numbered T-l, or (ii) as multiple (ally registered certificates, being one certificate for each year of maturity in die 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. Tare 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 Off ice 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 Auld bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to anti in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information. and documentation as the Paying Ageut/IZegistrar may reasonably require. SECTION 9: Forms. (a) Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying AgentlRegistr~u~, and the form of Assignment to be printed on each of the Certificates, shall be substantially in the 856o3358J109V0791 forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification {including identifying numbers and letters of the Committee on Uniform Securities Identification. Procedures of the American Bankers Association) and such legends and endorsements {including insurance legends in the event the Certificates, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Certif sates 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. `1"he definitive Certitic:ates and the Initial Certificate(s) shall be printed, lithographed, engraved, typewritten, photocopied or otherwise reproduced in arty other similar manner, all as determined by the officers executing such Certificates as evidenced by their execution. (b) Form,of Deftuitive Certificates. REGISTERED NO. REGISTERED S UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTI-I RICFILAND I-III.,I.,S, TEXAS, TAX AND '~VA`.CERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENt7E CER`fIFICATE OF OBLIGA`I'IUN, SERIES 2010 Certificate Date: Interest Rate: Stated Maturity: May 15, 2010 % February 15, 20_ Registered Ovvner: Principal Amount: CI.7SIP N0: 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 'T'exas, for value received, acknowledges itself indebted to and hereby promises to pay to the 12.egistered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount lrereinabove 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 interest payment date next preceding the "Registration Date" of this Certificate appearing; below (unless this Certificate bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless the "Registration Date" of this Certif sate is prior to the initial interest payment date in which. cast it shall bear interest from the Certifcate Date) at the per annum rate of interest specified. above carnputed on the basis of a 360-day year of twelve 30-day SSG0,3?S.Z11091079I months; such interest being payable nn February IS and August 15 in each year, conunencittg February 1 S, 2011; until maturity or prior redemption. Principal of this Certificate is payable at its Stated Maturity or upon its prior redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/'I'ransfer 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 ofprincipal 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 ilt the Ordinance hereinafter referenced) whose name appears nn the "Security Register" maintained by the Paying AgentlRegistrar 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 nr by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. 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 PaytnentlTransfer 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 trade on the original date payment was due. Ail payments of principal of, laremiwn, 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 ilte aggregate principal amount of $23,740,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations to be incurred for (i) constructing, improving and equipping NRH2O water park, (ii) purchasing equipnteut for ambulance service, inchding vehicles related thereto, (iii) purchasing equipment for public works department, including vehicles related thereto (iv) constructing and improving the City of North Richland Hills water and sewer system, (v) constructing and improving City of North Richland Hills streets and drainage, (vi) constructing and equipping a new recreation center facility, and (vii) professional services rendered in l~lation to such projects and the financing thereof, tinder 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 purstuutt to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). "l'he Certificates maturing on and after February 1S, 2021. may be redeemed prior to their Stated Mahu•ities, at the option of the City, in whole nr in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying flgent/Registrar), nn February 15, 2020 or on any date thereafter, at the redemption price of par, together with accrued interest to the date of•redemption. At Least thirty (30) days prior to a redemption date, the City shall cause a written notice of such redemption to be sort by United States Mail, first class postage prepaid, to the registered owners of each Certificate to he redeemed at the address shown on the Security Register and A~603353.2/10910'91 subject to the terms and provisions relating thereto contained in the Ordinance. If a Certificate (or airy portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon the redemption date such Certificate (or the portion of its principal sum to be redeemed) shall become due and payable, and, if moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the 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 Certificate is to be redeemed and the registered owner is someone other than Cede 8c Co., payment of the redemption price of such principal amount shall be made to the registered ov<mer only upon presentation and. surrender of such Certificate to the Designated Paymeni/Transfer 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 of the principal sum thereof will be issued to the registered owner, without charge. If a Certificate is selected for redemption, in whole or in part, the City and the Paying AgendRegistrar shall not be required to transfer such Certificate to an assignee of the registered owner within forty-five (45) days of the redemption date therefor; provided, however, such limitation. on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Certificate redeemed in part. With respect to any optional redemption of the Certificates, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Certificates to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying AgentlRegistrar on or prior to the date fixed for such. redemption, or upon Che satisfactial of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Certificates and the Paying Agent(Registrar shall give notice, in the manner in which the notice of redemption v~~as given, to the effect that the Certificates have not beets redeemed. 1"he 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 of the City's combined Waterworks and Sewer System (the "System"), such pledge of the Net Revenues tnr 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 the Net Revenues securing the payment of "Prior Lien Obligations" hereafter issued by ttte City. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations without limitation as to principal amount but subject to any applicable terms, conditions or restrictions under law or otherwise. Additionally, in the Ordinance, the City reserves and retains the right to issue (a) obligations payable, in whole or in part, from the Net Revenues of the System and, to the extent provided, secured by a Iicn 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 and (b) Subordinate Lion Obligations. SSGOJ35g.?/10910791 1 Q Reference is hereby made to the Ordinance, a copy of which is on file in the Designated I'ayment/Transfer Office of the Paying AgentlRegistrar, and. to all the provisions of which the owner or holder of this Certificate by the acceptance hereof hereby assents; for definitions of terms; the description of and. the nature and extent of the tax levied for the payment of the Certificates; the nature and extent of the pledge of the Net Revenues securing the payment of the principal of and interest on the Certificates; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying r'~gent/Registrar; the terms and provisions upon which the tax ievy and the pledge of the Net Revenues and covenants made in the Ordinance may be discharged at or prior to the maturity of this Certificate, and. this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and pravisions contained therein, Capitalized terms used herein and not otherwise defined 17ave the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained ul 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 Assigmnent hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Itegistrar duly executed by, the registered owner hereof, car his duly authorized agent. When a transfer on the Security Register occurs, one or snore new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amocu~t will be issued by the Paying AgentlRegistrar 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 upon its prior redemption, in whole or in part, and (iii.) on any other date as the owner for all other purposes, v~d neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary, h1 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 give (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing an 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, t•epresented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form attd manner as required by the Constitution and laws of the State of 7`exas, and the Ordinance; that the Certificates do not exceed any Constitutional ot• statutory limitation; and that due 35Fi01TS6.2!IU91f179t 1 1 provision has been made for the payment of the pr7ncipal of and interest on the Certificates as aforestated. In case any provision in this Certif cafe shall he invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be constn~ed iu accordance with and shall be governed by the laws of the State of'I`exas. IN WI"TNESS WHEREOF, die City Council of the City has caused this Certificate to be duly executed tuzder the official seal of the City as of the Certificate Date. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor COUN"1'GRSIGNED: City Secretary (City Seai) (c) Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Certificate(s) ord. REGIS'T'RATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUN'T'S OFFICE OF THE COMPI'RC}T,I,ER OF PUBLIC ACCOUNTS ) REGISTER NO. T1-IE STATE OF TEXAS 1 I-IEREBY CERTIFY that this C:ertiticate has been examined, certified as to validity and approved by the Attorney General of the State of "Texas, and duly registered by the Comptroller ol'Public Accounts of the State of Texas. WI`T'NESS my signature and seal of offieethis Comptroller of Public Accounts of the State of Texas (SkiAL) asca; ;;s.zn ae unv~ 12 (d) Form of Certificate ~f Payina AgentJRe~istrar to annear on Definitive Ceriificates only REGISTRATION CERTIFICATE OF PAYNG AGF.,NTIREGIS"1'RAR This Certificate has been duly issued and registered under the provisions of the within-mentioned Ordinance;. the cetKificate 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 AgentlRegistrar. The designated offices of the Paying AgentlRegistrar located in Dallas, Texas, ot• such offce as may be designated fot• such purpose by the Paying AgentlRegistrar or any successor to its functions, is the "Designated PaymentlTransfer Office" for this Certificate. THE BANK OF NEW YORK MELL{)N I'RUS'C COMPANY, N.A., Dallas, Texas, as Paying Agent/Registrar Registration Date; By: Authorized Signattue (e) Form of Assi nment. ASSIGNMENT FOR VAI,IlE RI3CEIVED the artdersigned hereby sells, assigns and transfers unto (Print or typewrite name, address and zip code of transferee): (Social Security or other identifying number )the within Certificate and all rights theretuader, and hereby irrevocably constitutes anti appoints attorney to transfer the within. Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Certificate in every particular. 8i6033581/10J 1079! ] 3 (~ The Initial Certificate(s) shall be in the form set forth in subsectian (b) of thin Section, exceUt that the heading and first paragraph of a sinele fully re istered Initial Certificate shall. he modified as follows: REGISTERED Nt). T-1 UNITED ST'AT'ES OF AMERICA STATE OF TEXAS CI'T'Y t)F NORTH RICHLAND DILLS, I'I;XA.S, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICA'I~, OF OBLIGATION, SERIES 2010 C:ertilicate Date: Inlay l5, 2010 Registered Owner; REGISTERED $23,740;000 Principal Amount: TW CNTY THREE M[LL,COIV SEVEN I-IUNDRED FOR'l~Y "fHQUSANI)1)t)LLARS T1te City of North Richland I-Tills (hereinafter refen~ed to as the "City"), a body corporate and municipal corporation in the County of Tatrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named dbove, or the registered assigns thereof, the Principal Amount hereinabove stated on February IS in each of the years and in principal. installments in accordance with the following schedule: MATURITY PRINCIPAL INTEREST" DATE AMOUNT RATF.,(Sl (Information to be inserted from schedule in Section 2 hereof}. (or so much thereof as shall not have been redeemed prior to maturit}~) and to pay interest on the unpaid principal. amounts hereof from the Certificate Date at the per atmum 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 l5 and August 15 in each year, commencing February 15, 20I 1, until maturity or prior redemption. Principal installments of this Certificate are payable on the Stated Maturity dates or op a redemption date to the registered owner hereof by The Bank of New York Mellon 'T'rust Company, N.A., Dallas, Texas (the "Paying Agent/Registrar"), upon its presentation and surrender at its designated offices, initially in Dallas, Texas, or, with respect to a successor paying agent/registrar, at the designated office of such successor (the "Designated PaymentlTransfer Office"). Interest is payable to the registered owner of this Certificate whose Warne appears an the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Kecord 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. If the date 856U33S8211o9l07J1 14 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 Payment/Transfer Office of the Paying AgentlRegistrar is located are authorized by law or executive ordet• to close, then the date for such payment shall he 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 shag have the same farce and effect as if made on the arigina.l date payment was due. 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 t 0: Definitians. For purposes of this Ordinance and far clarity with respect to the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of Net Revenues therefor, the fallowing words or terms, whenever the s~une appears herein without qualifying language, are defined to mean as follows: (a) T.he term "Certificate Fund" shall mean the special Fund created and established under the provisions of Sectian 11 of this Ordinance. (b) The term "Certificates" shall mean the $23,740,000 "City of North Richland 1-lills, Texas, Tax and Water4vorks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2010" authorized by this Ordinance. (c) The term "Collection Date" shall mean, when reference is being made to the levy and callection of annual ad valarem 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. Snancial acrounting period for the System ending September 30th of each year; pravided, however, the City, by ordinance, may change the Fiscal Year to anather period of not less than twelve calendar months. (e) The term "Government Securities" shall mean (i) direct noncallahle 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 o1' an agency or instrumentality of the united States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and, on the date of their acquisition ar purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA ot• 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 that, 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 teen "Gross Revenues" shall mean all 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 against landowners) of the System, including earnings and income derived fiom the investment or deposit of moneys in any special finds or accounts created and est<lblished for the S ii 03 ; 5H 211 0910791 ~ payment and security of the Prior Lien Obligations and other obligations payable solely from and secured only by a lien on and pledge of the Net Revenues. (g) The teen "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. (h) The term "Operating and Maintenance Expenses" shall mean all etu•rent expenses of operating and maintaining the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however; that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to maintain the operations and render adequate service to the Ciky and the inhabitants thereof; or such as might be necessary to meet some physical accident or condition which would otherwise impair obligations payable fi•om Net Revenues shall be deducted in determining "I~?et Revenues". Depreciation charges shall not he 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 bylaw and the provisions of such contract. (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 AgentrRegistrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Certificates fur which payment has been duly provided by the City iu accordance vt~ith the provisions of Section 20 hereof; and (3) those Certificates that have been mutilated, destroyed, last or stolen and replacement Certificates have been registered and delivered in lieu thereof as provided in Section 19 hereof. (j) The term "Previously Issued Certificates" shall mean the outstanding (i) "City of North Richland Hills, Texas, `l'ax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1999", dated April 15, 1999, originally issued in the principal amount of $3,560,000; (ii) "City of North Richland Hills, 'I"exas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000", dated May 1, 2000, originally issued in the principal amount of $2,315,000; (iii) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Cerkif"icates af• Obligation, Series 200ti", dated April 15, 2006, originally issued in the principal amount of $11,310,000; and (iv) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2007", dated April I5, 2007, arig~inally issued in the principal amount of $1,285,000. (k) The term "Prior Lien Obligations" shall mean all revenue bonds or other obligations hereafter issued payable from and secured, in whole or in part, by a lien. on and pledge of the Net Revenues of the System that is superior to the lien an and pledge of the Net 85GU33i81/1091U791 16 Revenues of the System securing the Certificates; the Previously Issued Certificates, the Subordinate Lien Obligations and any obligations having a lien on and pledge of the Net Kevenues of the System that is on an parity with. the lien on and. pledge of the Net Revenues of the System securing any of the Certificates, the Previously Issued Certificates, and the Subordinate taien Obligations. (1) The term "Subardinate Lien. Obligations" shall mean all revenue bands or aher obligations now outstanding or hereafter issued payable franc and. secured, in whole or in part, by a lien on and pledge of the Net Revenues of the System that is inferior to the lien on and pledge of the Net Revenues of the System securing the Prior Lien Obligations, the Certificates, the Previously Issued Certificates and. any obligation having a lien on and pledge of the Net Revenues of the System that is on a parity with the lien on and pledge of the Net Revenues of the Syste,n securing any of the Prior Lien Obligations, the Certificates and the Previously Issued Certificates, including, but not limited to, the outstanding (i) "City of North Richland Hills, Texas, Tax anal Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2001.", dated April 15, 2001, originally Issued in the principal amount of $3,255,000; (ii) "City of Narth Richland Hills, Texas, Tax and Waterworks and Sewer System Sut•plus Revenue Certificates of Obligation, Series 2002", dated April 15, 2002, originally issued in the principal amaunt of $6,745,000; (iii) "City of North Tichland Hills, 'T'exas, Tax and Watervorks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003", dated April 15, 2003, originally issued in the principal amount of $.1,760,000; and (iv) "City of North Richland Mills, Texas, Tax and Waterwarks and Sewer System Stu-plus Revenue Certificates of Obligation, Series 2004", dated April 15, 2004, originally issued in the principal amount of $68.5,000. (m} 1'he term "System" shall meet all properties, facilities and plants currently awned, operated and maintained by the City for the supply, treatment and transmission of treated potable water and the collection, treatment and disposal ofwater-carried. wastes, together with all future extensions, improvements, replacements and additions thereta; provided, however, that notwithstanding the foregoing; and to the extent now or hereafter authorized or permitted by la~v, 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 ar 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 cantract revenues or payments received from any other legal entity itt camtection with such facilities. SECTION 1 ] : Certiilcate Fund. For the put•}7ase of paying the interest on and to provide a sinking fitnd for the payment, redemption. and retirement of the Cet•titicates, there shall be and is hereby created a special account or fund on the boalcs and records of the City latawn as the "SPE'CIAL SERIES 2010 TAX AND REVENUE CFRTIFICAT) OF OBLIGATION FUND" (the "Certificate Fund"), and all moneys deposited to the credit of the Certificate Fund shall be shall be kept and maintained in a special banking account at a depository bank of the City. The Mayor, Mayor Pro Tern, City Manager, Assistant City Manager, Director of Finance, and City Secretary of the City, individually or jointly, are hereby authorized and directed to make &>60 ;3:8.2f I U41 b791 17 withdrawals front said Funci sufficient to pay the principal of and interest on the Certificates as the same became due and payable, and, shall cause to be transferred to the Paying Agent/Registrar from moneys an deposit in the Certificate Pttnd an amount sufficient to pay the amount of principal and/or interest fallen, due on the Certificates, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will cattle immediately available funds to be deposited with the Paying :Agent/Registrar on or before the Last business day next preceding each interest and principal payment date for the Certificates. Pending the transfer of funds to the Paying Agent/Registrar, money in the Certificate Fund may, at the option of the City, be invested in obligations identified in, andtu accordance with the provisions of the "Public Funds tnvesttnent Act" (V.T.C.A., Government Code, Chapter 2256, as amended) relating to the investment of `'bond proceeds"; provided that all such investments shall be made in such a matttter that the money required to be expended fram said Fund will be: available at the proper time or times. All interest and income derived fram deposits and investments in said Certificate Fund shall be credited to, and any losses debited ta, the said Certificate Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. SE;C"LION 12: Tax Lever. 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 fiend of 2% (whichever amount shall be the greater), there shall be and there is hereby levied a sufficient tax, within the limitations prescribed by law, on each. one hundred dollars' valuation of.' taxable property in said City, adequate to pay such Debt Service Requirements while the Certificates remain C)utstanding, frill allowance being made for delinquencies and costs of collection; and said tax shall be assessed and collected each year anct applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Funci. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fitlly sufficient to pay the said Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness. The amount oi' taxes to be provided atulually far the payment of the principal of and interest on the Certificates shall be determined attd accomplished in the following manner: (a) Prior to the date the City Council establishes the mutual tax rate and passes an orciinattce levying ad valorem taxes each year, the Council. shall determine: (1) 'I1te amount oft deposit in the Cet•tificate Fund after (a} deducting therefrom the total amount of Debt Service Requirements to become due ou Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Net Revenues of the System, together with any other lawhtlly available revenues of the City, appropriated. and allocated to pay such Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be levied. Ri6U3Ji8.2l1C~IU791 j $ (2} "C'he amount of Nei Revenues of the System, together with any other lawfully available revenues of the City, appropriated and to be set aside for the payment of the Debt Service Requirements on the Certificates between the Collection Date far the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (3) The amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (b) The amount of taxes to be levied annually each year to pay the Debt 5en~ice Requirements on the Certificates shall be the amount established in paragraph (3) above less the sum total of the amotutts established in paragraphs (1) and (2), after taking into consideration delinquencies and casts of collecting such annual taxes. SECTION 13: Limited Pledge 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 anti. 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 far 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 oi' the Certificates shall constitute a lien on the Net Revenues of the System until such time as the City shall pay all of such $],000, after which time the pledge shall cease, all in accordance with the terms and provisions hereof and 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 retards of the City. SECTION 14: System Fund. The City covenants and agrees that all Gross Revenues (excluding earnings from the investment of money held in any special funds or accounts created for the payment and security of the Prior Lien Obligations) shall be deposited. as collected into a fund maintained at an official depository of the City and known an the books of the City as the "Water and Sewer System Fund" (hereinafter called the "System Pund"). All moneys deposited to the credit of the System Fnnd shall be allocated, dedicated and disbursed to the extent required for the following purposes and in the order of priority spawn, 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: 'I'o the payment of all amounts required to be deposited in the special Funds created and established far the payment, security and benefit of Prior T-.ien Obligations in accordance with the terms and pi•avisiorts of the ordinances authorizing the issuance: of Friar Lien Obligations. 8iGU33i81i1U910791 1 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 far the payment thereof, ntay be appropriated and used for payment of'the Subordinate Lien Obligations and then for any other City ptu•pose 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 Ue at any time properly invested) shall be secured in the manner and to the fullest extent required by the lativs of Texas for the security of public funds, and moneys on deposit in such Funds shall be used only fnr the purposes permitted by this Ordinance. SEC'T'ION 16: Special Covenants. "I13e City hereby further covenants as follows: (a) It has the lawful power to pledge the Net Revenues of the System to the payment of the Certificates in the matmer herein contemplated and has lawfully exercised such power under the Constitution and laws of the State of Texas, including said power existing under V.T.C.A, Government Code, Sections 1502.056 and 1.502.058 and V:I'.C.A., Local Government Code, Sections 271.041, et sed. (b) Other than. for the payment of the Prior Lien Obligations, the Previously Issued Certificates, the Certificates and the Subordinate Lien Obligations, the Net Revenues of the System have trot in any manner been pledged to the payment of any debtor obligation of the City or of t13e System. SEC"PION 17: Issuance of Privr Lien Obligations. Additional Obli>ations and Subordinate Lien Ob1T atians. The City expressly reserves the right to hereafter issue Prior Lien Obligations, without lin~itatian as tv principal amount but subject to any terms, conditions or resh•ictions applicable thereto under law or otherwise. Prior Lien Obligativns hereafter issued may he payable, in whole or in pv-t, from the Net Revenues (witlx)ut impairment of the obligation of contract with the Holders of the Certificates) upon such terms and conditions as the City Cvuncil may determine. Additionally, the City reserves the right to issue (a) obligatiotts payable, in whole <ar 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 sectu•ing the payment of the Certificates and the Previously Issued Certificates and (b) Subordinate Lien Obligations. SECTION l8: npplication of Prior Lien Obligations Covenants and Agreements. It is the intention of this governing body and. accordingly hereby recognized and stipulated that the provisions, agreements and covenants contained herein bearing upon the management and operations of the System, and the administering and application of revenues derived from the operation thereof shall to the extent possible be harnionized with like provisions, agreements and covenants contained in the ordinances authorizing the issuance c>f the Prior Lien Obligations, and to the extent of any irreconcilable conflict between the provisions contained herein and in Si603355.2/ 10910791 20 tl~e ordinances authorizing the issuance of the Prior Lien Obligations, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance but in all respects subject to the priority of rights and benefits, if any, conferred thereby to the holders of the Prior Lien Obligations. SI/CTION 19: Mutilated, I~estroyed, Lost and Stolen Certificates. In case any Certificate shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Certificate of like form. and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Certificate, or in lieu of and in substitution for such destroyed, lost or stolen Certificate, only upon the approval of the City and after (i) the filing by the I-folder thereof with the Paying Agent/Registrar of evidence satisfactory to the 1?aying Agent/Registrar of the dcstntction, loss ar 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 tivith the preparation, execution and delivery of a replacement Certificate shall be borne by the Holder of the Certificate mutilated, or destroyed, last or stolen. );very 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 th.e destroyed, last, 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 ar stolen Certificates. SECTION 20: Satisfaction of Obligation of City. If the City shall pay or cause to be paid, ar there shall otherwise be paid to the Holders, the principal af, premium, if any, and interest on the Certificates, at the times and in the mam~er stipulated in this Ordinance, Chen the pledge of taxes levied under this Ordinance and the Net Revenues of the System and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay iu 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 Agcttt/Registrar, ar an autl~orized 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 tinges 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, ar 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 Certificates to be treated as "arbitrage bonds" 8>GO.i358.?/ 107910791 21 tivithin the meaning of Section 14$ of the Internal Revenue Code of 19$6, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying AgenURegistrar, ar an authorized escrow agent, and all income from Government Securities held intrust by the Paying Agent/Regisirar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been sa deposited shall be remitted to the City or deposited as directed by the City. furthermore, any money held by the Paying Agent/Registrar far the payment of the principal of and 'interest on the Certificates and remaining unclaimed for a pet7od of three (3) years after the Stated Maturity, or applicable redemption date, of the Certificates such ^laneys were deposited and are held in tttist to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying AgenURegistrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. SF..C"PION 2l : Ordinance a Contract -Amendments. This Ordinance shall constitute a contract with the Holders Pram time to time, he binding on the City, and shall riot be amended or repealed by the City so Iong as any Certificate remains Outstanding except as permitted in this Section and in Section 37 hereof. The City tray, 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, amend, add to, or rescind atry of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Certificates, no such amendment; addition or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Certificates, reduce the principal amount thereof, the redemption price, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required to be held by holders for consent to any such amendment, addition, or rescission. SECTION 22: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section, the fallowing terms have the following meanings: "Closing Daie" means the date on which the Certificates are ftrst 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 Clasing Date. "Computation Date" has the meaning set forth in Section. 1.14$-1(b) of the Regulations. 856033552110910701 22 "Gross Ptroeeeds" n.~eans any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Certificates. "Investment" has the meaning set Earth in. Section 1.148-1(b) of the Regulations. "Nonpurl~ose Investment" means any investment property, as defined in sectian 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and vrhich is not acquired to carry out the govermnental purposes of the Certificates. `'Rebate Amount" has the meaning set forth in Sectian 1.148-1(b) of the Regulations. "Regulations" means any proposed; temporary, or final Income fax Regulations issued pursuant to Sections 103 and l41 through 1~0 of the Code, anti 103 of the Itttc;rnal Revenue Code of 194, which are applicable to the Certificates. Any reference to any specific Regulation shall alsa mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulatian referenced. "Yield" of (1) any Investment has the meaning set Earth iu Section 1.148-5 of the Regulations and (2) the Certificates has the meaning set forth in Section 1.148-4 of the Regulatians. (b) Not to Cause Interest to Become Taxable, T•he City shall not use, permit the use ot; or omit to use Gross Proceeds or any other arnounts (or any property the acquisitian, construction or improvement of which is to be financed directly ar indirectly with Dross 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 bl of the Code, oi'the ot~-her 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 mwaicipal bond law to the effect that failut•e to comply with such covenant will not adversely affect the exetnhtion froth federal income tax of the interest an any Certificate, the City shall comply with each of the specific covenants in this Section. (c) No P;ivate [Jse or Private Payments. Except as permitted by section 141 of the Code and the Regulatians and rulings thereunder, the City shall at ail times prior to the last Stated :'Maturity of Certificates: (l) exclusively own, operate and possess all. property the acquisition, construction or improvement of which. is to be financed or refinanced directly or indirectly with Grass Proceeds of the Certificates, and. not use or permit the use of such Gross Proceeds (including all contractual arrangements with teens 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 Lfnited 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) hat directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Grass Proceeds of the Certificates or any 33GU33>S.2Jl l)`) 10791 23 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. I3xcept 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 he "loaned" to a person or entity if: (I} 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 far federal income tax purposes; (2) capacity in ox service from such property is committed to such person or entity under atake-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Procccds 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 Ili her Yield. Except to the extent permitted by section 14$ of the Code and the Regulations and rulings. thereunder, the City shall not at any time prior to the final Stated Maturity of the Certificates directly or indirectly invest CJross 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 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 Certificates to be federally guaranteed within the meaning of section 1.49(b) of the Code and the Regulations and rulings thereunder. (g) Information Renort. 1"he City shall timely file the information required by section 1.49(e} of the Code with the Secretary of the I•reasury on Form 803$-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of tlrbitrat;e Profits. Except to the extent otherwise provided in section 14$(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account foe all Gross Proceeds (including all receipts, expenditures and investments thereof) nn its books of account separately and apart tiom all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates WIth other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. 8iG0 3,58.2/ I D91 U79 r 24 (2) Not less frequently than each. Computation Date, the City shalt calculate the Ttebate Amount. in accordance with rules set forth i.n 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 (defined below) 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 construction fund, othc;r appropriate fund nr, if permitted by applicable °I'exas statute, regulation or opinion of the Attorney Ueneral of the State of Texas, the Certificate Fund, 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 Comput<tion Date as defined i.n Section 1.148-3(e)(2) of the Regulations, one hundred percent (l 00%) 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 mam~er as is or may be required by section 1.48(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 ntlings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error}, including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (i) Nat to l:~ivert Arbitrage 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 hansaction 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 relevairt to eitltee party. (j) Elections. "I'he City hereby directs and authorizes the Mayor, Mayor Pro Tem, City Adanager, Assistant City Manager, Director of Finance or City Secretary, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. 85ti03358.?J I Q910791 ~ l (k} Sale of Certificates. Pursuant to a public sale for the Certificates, the bid submitted by ~_ _ (herein referred to as the "Purchasers"} is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Certificates to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ , is hereby approved and confirmed. Delivery of the Certificates to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 23: Official Statement Approval. The use of the Preliminary Official Statement, dated May 13, 201.0, by the Purchasers in connection with the public offering and sale of the Certificates is hereby ratified, confirmed and approved in all respects. The final OFticial Statement, which reflects the terms of sale (together with such changes approved by the Mtryor, Mayor I'ro Tem, City Secretary, City Manager, Assistant City Manager and Director of 1~inance, any 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 OFfieial Statement, dated Nlay 24, 2010, in the reoffering, sale and delivery of the Certificates to the public. SECTION 24: Proceeds of Sale. The proceeds of sale of the Certificates (less accrued interest received from the Purchasers and amounts to pay costs of issuance) shall be deposited in a construction fund maintained at a depository bairlc of the City. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments in accordance with the provisions of V.T.C.A., Government Code, Chapter 2.256, as amended, including guaranteed investment contracts permitted by V.T.C.A,, Section 2256.01 ~ et seq., and the City's investment policies and guidelines, and, subject to dte provisions of Section 22(h) hereof, any investment earnings realized may be expended for such authorized projects and purposes or deposited in the Certificate b'und as shall be determined by the City Council. Accrued interest received from the Purchasers as well as any surplus proceeds of sale of the Certificates, including investment earnings on the construction fund, remaining after 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 25: Control and Custody of Certificates. "Che Mayor of the City shall be and is hereby authorized to take and have charge of all necesstuy orders and records pending the sale of the Certifica#es, the 'investigation by the Attorney General of the State of Texas; including the printing and supply of definitive Certificates, and shall take and have charge and control of the L~itial 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. SEC"PION 2h: Notices to Holders -Waiver. 1,Vherever tlus 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 nofrce to I-Iolders is given by mail, neither the faih~re to mail such notice to any particular Holders, nor any defect in any notice so mailed. shall affect the ssca:~sss znovio79i 2fi sufficiency oP 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 ar after the event tivith respect to which such notice is given, and stteh 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. SEC`I•lON 27: 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 he delivered to the Paying AgentlRegistrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time deliver to the Paying AgentlRegistrar 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 AgentlRegistrar. All cancelled Certificates held by the Paying Agent/Registrar shall be returned to the City, SECTION 28: Bond Counsel's Opinion, Tlie Purchasers' obligation. to accept delivery of the Certificates is subject to being fitrnished 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 far the Certificates. An executed counterpart of said opinion shall accompany the global certificates deposited with DTC or a reproduction thereof shall be printed on the definitive Certificates in the event the book enhy only system shall he discontinued. SECTION 29: CtJS[P 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 an the definitive Certificates. SECTION 30: 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; and this Ot•cfinance and all its provisions is intended to be and shall be for the sale and exclusive beucftt of the City, the Paying AgentlRegistrar and the Holders. SECTION 31: Inconsistent Provisions. All ordinances, orders ar 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 32: Gavernno .I~aw. 'Phis Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. 8~tiG3358.2J10910; 91 ~~ SECTION 33: Effect of 13eadines. The Section headings herein are for convenience of reference only and shall not affect the construction hereof. SECTION 34: Construction of Tenns. 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 35: Severability. If auy 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. SEC~1~•ION 36: Continuing Disclosure llnder•t~al<iu~. (a) Definitions. As used in this Section, the following terrns have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemal<ing Board. "Rule" means SEC Rule I5c2-12, as amended from time to time. "SEC"' means the IJ)uted States Securities and Exchange Commission. (b) Annual Reports. The City shall provide arnn)ally to the MSRB (1) within six months after the end of each fiscal year, beginning in and after 2010, financial information and operating data with respect to the City of the general type included in Official Statement and described in Exf~ibit Ii hereto, and (2) if not provided as part of such financial infornation and operating data, audited financial statements of the City, when and if available. Any financial statements so provided shall be prepared in accordance with the accounting principles described iu Cxhibit I3 hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to stag law or regulation, and audited, if the City connnissions an audit of such statements and the audit is completed within the period during which they must be provided. If the City changes its fiscal year, it will notify the MSRB 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 pursua~tt 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 inchuied by specific reference to any document available to the public ou the MSRB's Internet Web site or filed with the SEC. (c) Material Bvent Notices. The City shall notify 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: Principal and interest payment delinquencies; t{~50:i3S8.2/Ili9107U1 2$ 2. Nan-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; S. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Certificates; 7. Modifications to rights of holders of the Certificates; 8. Certificate calls; 9. Defeasances; L 0. Release, substittttion, or sale of property securing repayment of the C;el-tificates; and 11. Rating changes. The City shall notify the Iv1SRB, iu a timely manner, ofany failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) rilings with the MSRB. All financial information, operating data, financial statements, notices and other documents provided to the MSRB in accordance with this Section shall be provided in an electronic format prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. (e) Limitations Disclaimers and Amendments. Tl1e City shall be obligated to obsel•ve 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 t11e Rule, except that the City in ally event will give the notice required by subsection (c) of this Section of any Certificate calls and defeasance that cause the City to be no longer such an "abligated person.'' The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, Ur Clalnl 11eCe1111dCI' t0 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 dues not make any representation or warranty concerning such. information or its usefuhless to a decision to invest in or sell Certificates at any future date. 856D33>S_dI10910791 2~ UNDER NO CIRCUMSTANCES SHALL THE Cl'I"Y~ BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OP ANY CERTIFICATE OR ANY OTI-IETt PERSON, IN CONTRACT OR 'T'ORT, FUR DAMAGES RESULTING IN WI~IOLE OR IN PART PROM ANY BREACH BY THE CITY, WI-IE"I'I-IER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF' ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGI-iT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, POR OR ON ACCOtJN"1' OF ANY SUCH BREACH SHALL BE LIMI"TED TO AN AC'T'ION POR 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 oilier 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. Notwithstanding anything herein to the contrary, 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 tmderwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into iecocutt any amendments or interpretations of the Rule to the date of such intendment, 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 arnendmenC 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 1-folders and beneficial owners of the Certificates. 11te provisions of this Section may also he 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 jurisdfetion 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 lawfiilly pw•chasing 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 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 tnancial information or operating data so provided. SECTION 37: Further Procedures. Any one or more of the Mayor, Mayor Piro Tem, City Manager, Assistant City Manager, Director of Finance, and City Secretary are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and on behalf of the Crty all agreements, instruments, certificates or other dacutnents, whether mentioned herein or not, as may he necessary or desirable in order to carry out the terms and provisions of this Ordinance and the issuance, sale and delivery of the Certificates. In addition, prior to the delivery of the Certificates, the Mayor, Mayor Pro 'Tem, City Manager, Assistant City Manager, Director of Finance or Bond Counsel to the City are each hereby authorized and directed to approve any ss~,ostss.?; u~y i o7v~ 3~ changes or corrections to this Ordinance or to any of the documents authorized and approved by this Ordinance: (i) in order to cure any ambiguity, formal defect, or omission in the Ordinance or such other document, or (ii) as requested by the Attorney General. of the State of Texas or his representative to obtain the approval of the Certificates by the Attorney Geuei~il. In the event that any officer of the City whose signature shall appear on any document shall cease to be such officer before the delivery of such document, such signature nevertheless shall be valid and suffident for all purposes the same as if such officer had remained in office until. such delivery, SECTION 38: [Bond Insurance. The Certificates have been sold with the principal of and interest thereon being insured by ~_ .] SECTION 34: Inco~~oration of Findings and Determinations. The findings and determinations of the City Council contained in the preamble hereof are hereby incorporated by reference and made a part of this Ordinance far all purposes as if the same were restated in full in this Section. SECTION 40: Public Meetit~e. 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, ail as required. by V.'T.C.A., Government Code, Chapter 551, as amended. SECTION =11: Effective Date. This Ordinance shall tal<e eFTect and be in full force from. and after its adoption. nn the date shown below in accordance with V.T.C.A., Government Code, Section 1201.028, as amended. [Renzai)~der of page left Clank iz~tentivnallyJ 85603338.?!! 0910?91 3 ] PASSED AND ADOPTED, this May 24, 2010. CITY Ol~ NORTH RICi-ILAND HILLS, TEXAS Mayor ATTEST: City Secretary (City Seal) APPROVED AS TO LEGALITY: City Attorney APPROVED AS TO CONTENT: Director of f'inauce 85b033582f10910791 $-) EXHTBT"r ~ 3'AYING AGEN"I'/REGISTRAR AGREEMENT g 5~~033 sR?1l 0910791 A- I EXIiTBTT 73 i)ESCRTPTJON OF ANNUAL FiNANCiAt, INFOEtMATiON "I'he following information. is referred to in Section 37 of this Ordinance. Annuat E'inancial Statements and Operating data "I'he 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 C)ff cial Statement referred to) below: The City's amiual f nancial statements. T'he in1.'onmation in the Official Statement under Tables 1 through S and 7 through 14. Accounting Principles 'i7ie accounting principles referred to in such Section are generally those described in Appendix B to the Official Statement, as such principles may he changed from time to time to comply with state law or regulation. 85603358.2/10910791 1i_1 CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 5-24-2010 Presented by: Larry Koonce Agenda No. F.4 Subject: GN 2010-036 Consider All Matters Incident and Related to Providing for the Redemption of Certain Outstanding Obligations of the City of North Richland Hills, Including the Adoption of Resolution No. 2010-021 Pertaining Thereto Summary The City has several bond issues outstanding that are currently callable which means they can be repaid at anytime without penalty. Since there is sufficient fund balance in the debt service fund, we believe it is prudent that the City payoff $1.285 million of outstanding bonds with coupon rates ranging from 4.60% to 5.60%, ultimately saving the City $69,000 in interest expense. Discussion If the Council approves the defeasance resolution on May 24th, the City would owe the paying agent, the Bank of New York, $1,308,417 (representing $1,285,000 of redeemed principal and $23,417 of accrued interest to the payoff date) on June 29, 2010. The debt service relief, as a result of the payoff, would be $1,377,460 for a net benefit of approximately $69,000 in interest expense savings, with $877,074 of the savings coming in fiscal year 2010-11. The City is paying off liabilities that carry interest rates ranging from 4.60% to 5.60% with excess funds that are currently earning interest at rates substantially below that level. The debt service fund currently has sufficient fund balance to make the early payoff. The debt service fund balance can only be used to make debt payments. Management and staff recommend the defeasance because of the early payoff of high interest rate bonds, the ability to reduce our debt tax rate for the next three years, and the net cash flow benefit of $69,000. The attached file illustrates the savings from the cash defeasance, the bonds which will be redeemed and the next steps. Recommendation: Adopt Resolution No. 2010-021 providing for the redemption of certain outstanding obligations of the City of North Richland Hills and resolving other matters incident and related to the redemption of such obligations. 0 0 0 City of North Richland Hills - 2010 Cash Defeasance Analysis Tax-Supported Water & Sewer Aquatic TIF #1 Park Drainage Defeased Defeased Defeased Defeased Defeased Defeased Debt Service Debt Service Debt Service Debt Service Debt Service Debt Service $ 21,482 $ 888 $ 3,035 $ 1,034 $ 3,081 $ 1,935 495,135 37,508 128,195 43,674 123,178 49,384 254,976 34,799 179,156 5 950,749 $ 38,396 $ 131,230 $ 44,708 $ 126,258 $ 86,118 Bond Issue Maturity Date Par Amount Coupon Rate 1998 CO 2/15/2011 $ 305,000 4.85'Yo 1999 C;O 2/15/2011 100,000 4.60% 1999 GO 2/15/2012 100,000 4.704'0 1999 CO 2/15/2011 180,000 4.60% 1999 CO 2/15/2012 175,000 4.70% 1999 CO 2/15/2013 175,000 4.75% 2000 GO 2/15/2011 135,000 5.60% 2000 CO 2/15/2011 115,000 5.60% Total Par to be Paid Off: $ 1,285,000 Interest Due 6/29/2010: $ 23,417 Total to be Paid on 6/29/2010: $ 1,308,417 NFXT STEt'S Date Action 5/24/2010 Council Adopts Defeasance Resolution 6/29/2010 Payoff Bonds Prepared by first5outhwest 5/17/2010 RESOLUTION NO. 2010-021 A RESOLtTION providing for the redemption of certain outstanding obligations of the City of North Richland Hills, Texas; and resolving other matteas incident and related to the redemption of such obligations. 1~'HEREAS, the City of North Richland Hills, Texas (lhe "City") has issued and there is currently outstanding certain obligations more particularly described as follows (collectively, the "Redeemed Obligations"): (1) "City of North Richland Hills, "Texas, Tax and Waterworks and Se~vcr System (Limited Pledge) Revenue Certificates of Obligation, Series 1998"_ dated ~1ay 1, 1998, scheduled to mature on Febntary I5, 2011 in the principal amount of X305,000; (2) "City of North Richland I-fills, !'eras, General Obligation Bonds, Series l y<J9", dated ='~pril 15, 1999,. scheduled to mahu-e on Febl`uary 15 in each of the years 2011 and 2012, and aggregating in the principal amount of $200,000; (3) "City of North .Richland Hills, 'Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenge Certificates of Obligation, Series 1999'', dated April. 15, 1999,. scheduled to mature on I~ebnlarv 15 in each of'the years 20.11. through 2013, and aggregating in the: principal amount of $530,000; (~) "City of North Richland Hills, Texas, General Obligation Bonds, Series 2000", dated ~Iay 1, 2000, scheduled to mature on r'ebnlary 15, 2011 in the principal amount of $1.35,000; anti (5) "City of North Richland Hills, Texas, Tax artd Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000", dated ~Iay 1, 2000, schedtled to mature o^ hebruary 1.5, 20l 1 in the principal amount of Sl 15,OO0; acid ~~'fIERI?t\S, the Redeemed Obligations were authorized, issued, sold and delivered subject to the right and atrthol-ity of the City to redeem the same prior to maturity, as provided in the ordinances authorizing the issuance of the Redeemed C)bligatious and in the Redeemed Obligations; and WHEREAS, the City Council (the "Council") hereby finds and detelminas that Redeemed Obligations should be redeemed prior to their maturities on the date and in the manner hereinafter provided and in aocord;utce with the recluiremenLs prescribed thereftre and notice of redemption of such Redeemed Obligations should be approved and authorized to he given. at this time by the Council; now, therefore, BE IT R.F.,SOI.l%F.,D B~' THF., CITY COi.JNCII., OF THE CITY OF NORTH RICI-II.,ANI7 HILLS. TEYAS: SECTION 1: 1"lle obligations of those series krlowtr as (1) "City of North Richland Hills, Texas, Tax and Watarvvorks and Se~~~er System (Limited Pledge) Revenue Certificates of Obligation, Series 1998", dated ~[ay 1, 1998,. scheduled to mature on Fc;brgary 15, 2011 in the principal amount of $305,000; and SSG18GS2.1?10910?91 (2) "City of North Richland Hills; Texas, General Obligativn Bonds, Sea•ies 1999", dated April 15, 1999, scheduled iv mature on February 15 in each of the years 201.1. and 2012, and aggregating in the principal amount of $200,000: and (3) "City of North Richland Hills, Tcxas, Tax axxd ~Vatenvorks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1.999", dated ~1pri1 15, 1999, scheduled to mature on February .1.5 itx each. o1'thc years 201.1. thrvugh 20].3, and aggregating in the principal anxantt of $530,000; and (~1) "City of Nortlx Richland hills, Texas, General Obligation Bonds, Series 2000", dated fay 1, 2000, scheduled to mahtre on February 15, 201.1 in the principal amount of $135.000; artd (5) "City of North Richland Hills, Texas, T'ax arxd Walertivorks and Sewer System (L,imited Pledge) Revenue Certificates of Obligation, Series 2000", dated May 1, 2000, scleduled to mature on February 15, 2011 in tha principal arnvurtt of $115,000 shall be redeemed and the same are hereby called for cedernption on Jtuxe 29, 2010, at the price of par and accnted interest to the date of redamptiorx. The City Secretary is .herebyy authorized and directed to file a cvpy of this Resvlutivn, together with suggested forrxxs vi' nvtic~ of redemption to be sent to holders of each respective series of Redeemed Obligations. with 'C7te Bank of I~tew York Mellon Trust Company, N.A, {as successor paying agenth•egislr~ar to Bank (:)ne, 'T'exas, N.A.), in accordance with the redemptirnt provisions applicable to such Redeemed Obligativns; such suggested forms of uvtices of redemption being attached hercty as Exhibit A through Exlxibit L' and incorporated herein by reference as a. part of this Resolution for all purposes. SFC'TION 2; The City Secretary is hereby authorized and directed. to make all anangcments necessary to notify the holders of t}re Redeemed Obligations of the City's. decisive to redeem the Redeemed Obligations on the date and in the manner herein provided anal in accordance with tlxe ordinances authorizing the issuance of the Redeemed Obligations. SECTION 3: It is officiall}' fotutd, determined, and declared that the rne;etiug at which this Resolution is adapted was open to the public and public notice of the time, place, and subject matter of the pttblio business tv be considered at such erecting, itreluding this Resolution, was givelx, all as required by '~~."1'.C..~., Governutent Coda.. Chapter SS1, as amended. SL;C'I"ION ~: 'I'bis 1esolution shall be in forca and eftect front and after its passage on the date- shown belo~~. JRemaindar of pgge left blarak intendonallt~J 8,5618652.1 ! 10910? 91. PASSED AND ADOPTED, this Islay 24, 2010. CITY OF NORTH RICHLAAND HILLS. 'I'E1AS Alavor :~"I'"T'ES'T': Cit}~ Secretary APPRO~7ED AS TO L,1%CiAT.,TTY: City Attorney (City Seal) APPROVI3I:) 1S'I'O CC)N'T'L;N'I': Director of Finance 5561 R6S2.1!t OJ10?9I 5- I EYHIBIT A NOTICE OF REDEvIPTION CF"1'Y OF NOR'IT1 I2ICIIL.AND HII.~L.S,'i'I;`SAS, TAN AND ~~'ATERWORKS AND SEWER SYSTElt'I (L1MT`I'ED PLEDGE) REVENtTE CERT'IFICAT`ES Oh OBLIGA'TTON, SERIES 1998 DR'I'ED MA1' 1. 1998 NOTICE IS IIEREBl' GIVEN that the obligations of the abvve series maturing on February 1~, 2011 in the principal amount of $305,000 have bezn called for redemption on June 29, 2010 at the redatnption price of par and accrued iutarest to the data of redentptiott, such obligativns being identified as follows: Year of !'rinoipal CL~SII' Maturity Elinvunt Nutubzr 2011 $305.000 .'1LL SLCH OBLIGATIONS shall become duz and payable on Jmtz 29. 2010, and interest thereon shall cease to accrue froth and after said redemption date and payment of the redemption price of said obligations shall be paid to the registered v~vners thereof only upvu presentation and surrender of such obligations to "Ilea Bank of New York. Mellon Trust. Company, N.A., Dallas, Texas (<ts successor paving agent'rcgistrar to B<mk One, Texas, N.r1.), at its designated oi~ices at the following addresses: First Class,' Reuistered%Certif'ied Express Delivery,'Courier By Hand Only The Bank of Nzw 1''ork Mellon The Bank of New York Mellon The Bank of New Yvrk Mellon'I'rust 't'rust Crnnpauy, N.A. "Trust Company, N.A. Company, N..4- (Tlobal Cvt~torate'frust Global Cvtpvratz'I'rust C7lvbal Corporatz'Trust P. O. Box 396 11.1 Sanders Creek Pkwy. Catporate Trust V1%indow East Syracuse, NY 13057 East Syracuse, NY 13057 101 Barola}' Street, 1~` Floor East Mew York, New York 10236 THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the redemption ol`said obligations and pursuant to an ordinance adopted by the City Council of the Gity of North Richland Hills, Te?cas. THE BANK OF NEy§' YORK MELLON '1'I2US"I' COMPANY, N.A- 2001. Bryan Street, 9th Floor Dallas,'Tzxas 75201 ft.551 A6S2.1!1 t)910?91. .A-1. EYHIBIT B NOTICE OF REllEAIPTtO1\7 CITY C)F NOR'CI{ RICFIL.AND TIIL;L,S, '1.EXAS, GENERAL OBLIGATION BONDS, SERIES 1999 DATED APRIL 15, 1999 NOTICE IS HEREBY GIV"EN that the bonds of ~tfzc above series maturing on and after February 15, 2011 and aggregating in the principal amount of $200,000 have been called t'or redemption on June 29, 2010 at the redemption price of par and accrued interest la the date of redemption, such bonds being identified as follows: Year of Principal C'USIP Maturity Amount Number 2011 $100,000 2012 $100.000 ALL SiCH BONDS shall become due and payable on June 29, 201(1, azzd interest thereon shall cease to accrue from azzd a13er said redemption date and payment of the redemption price of said bonds shall be paid to the registered ownezs thereof ozily upon presentation and surrender of such bonds to "Ilia Bank of New York '~dellon "Trust Company, N.A., I)~gas, 'Cexas (as successor paying agent.-registrar to Bank Ona, Texas, N.A.), at its designated offices at the following addresses: First Classl ReaisteredlCert$°zed Exnr~s Delivery,~Courier By Hand Only The Bank. of New York Mellon. l"he Bank of New York Mellon '11~e Bank of New York Me11an 'I'zvst "fru.4t C.'ompany, N.A. Trust Company, N.A. Company, N. A. Global Corporate'1"rust ULo13al C.`,orparate'I`iuRt Global Corporate `Crust P. O. Box 396 1.11. Sanders Creek. Pl<1vy. Carporate'Crust'Window East Syracuse;, N~' 13057 East Syracuse, NY 13057 101 Barclay Street, 1"Floor East New York, New Y ork 10286 THIS NOTICE is issued and giveai pursuan to the t eams and conditions presoribc;d for the redemption of said bonds anal pursuant io an ordinance adopted by the City Council of the City of North Richltuzd Hills, Texas. THE B4NK OF NEW PORK MELLON 2001 .Bryan Street, 9th Floor Dallas. "Texas 75201 8561 R682-1 %i 0910?91 B-1. E_l'HIBIT C NOTICE OF REDEMPTION CI'Cy' (:)F~ NC)R°I"II 12ICFIL,ANt) IIIL:L.S, T>:;k AS, TA~i AND ~~~ATERR'ORKS AND SEWER SYSTEM-I (LIb~tI1'ED PLEUGE) REVENtiE CER1"II'IC~'1'I'ES Ol~ OI3LIG~11'ION, SERIES 1999 Dr~'1'Ell rlPR1L 15, 1999 NOTICE IS IIEREBY GItiEN that the obligations of the above series maturing on and after February 15, 2011 and aggregating in the principal amount of $530,000 have been called for rzdemption on June 29, 2010 at the redemption price of'paz• and acctlied uiterest to the date of redemption, such obligations being identified as fi~llotiws: Fear of I'rineipal CIJSII' Mah~rity lytnount Number toll $lso.ooo 20 l2 ~l ~s,4o(1 2013 $175.000 ALL SUCH OBLIGATIONS shall become due and payable on June 29, 2010, and interest thereon shall cease to accrue from. and after said redemption date and payment of the redemption price of said obligations shall be paid to the registered owners thereof only upon presentation and surrender of such obligations to "I'he Bank of New Fork i\Iellon `Trust Company, N.A., Dallas, Texas (as successor paying agent;registrar to Bank One, Texas, N.A.), at its designated otlices at the following addresses: First Class/ RegistercctlCcatified The Bank of New 1`ork 1Vtellon T~vst Compauy, N.A. Global Corporate Trust. P. 0.13ox 396 East Syracuse, Nl' 1x057 Exorc~ss Dclivcrv,'Courier The Bank. of New York Mellon Trust Company, N.A. Citobal Corporate Trust 11.1 Sanders Creek P1nvy. East S}~'acuse, NY 13057 By I-Iand Onty The Bank of New York Mellon Trust Compa~~y, N.A. Global Corporate'I'rust Corporate Trust V~%indow 101. I3arclav Street. 1'` Floor East New Yarl:. Nc~rv York 10236 THIS NOTICE is issued and given pursuant to the tc;nns and conditions prescribed for the redainpti.on of said obligations and pursuant to an ordinance adopted by the City Council of the City of North Richlazxl Hills, Texas. TIIE BANK OF NE\~' YORIk ~fELLON 'I7t11S"I' COMP.~~NY, N.:-l. 2001 Bryan Street, 9th F(oar Dallas, Texas 75241 8561 &652.1!1 Q97 079t C'- 1. EXHIBIT D NOTICE OF REDEI~~IPTION GI'TY OT' NOR'IT I ItICIIL,ANI) I TII:L.S, 'I'E:k A S, GENERAL OBLIGATION BONDS, SERIL^'S 2000 DATED MAY 1, 2000 NOTICE IS HEREBY GI~'F.,N that the bon. ds of the above series maturing vn Febntary 15, 2011 in the principal antoant of $135;000 have been called for redemption on June 29, 2010 at the redemption prig v.f par and accrued interest to the; date of redemption, Bach bonds being identified as follows: Year of Principal CUSIP Maturity Amount Number 2011 $135,000 AI,I, Si'CII BONDS shall become due and payable on June 29, 2010, and iatterest thereon shall cease to accrue from attd after said redemption date and payment of'the redemption price of said bonds shall be paid to the registered owners therevf rntly upon presentation and surrender of such bonds to The Bank of New York -lallvn Tnist Cvtnpany, N.:~., Dallas, Texas (as successor paying agent>registrar to I3ank. C)ne, 'T'exas, N.A.), at its designated ot~ices at the follvwing addresses: First Class; Registered%Ceititied I^xpress 1:)elivery/Courier 13y 1-Tand Onlx The Bank of Nero fork ~Sellon The Bank of New York Aicllon The Bank of New Y"ork Mellon Trust Tntst Company, N.A. Trust Company, N.A. Company, N.A. Global Corporate Trust Global Cotl~orate Ttvst Global Corporate Trust P. O. Box 396 111 Sanders Creek Pkwy. Corporate Ttvst Window Bast Syracuse, NY 13057 Tast S}Tacuse, NY 13057 101 Barclay Street, 1`` Florn~ Tact New York. New 1"m•k 1.0286 THIS NO'I'1GE is issued and given pursuant tq the terms and conditions prescribed for the redemption of said bonds and pursuant to an ordntance adopted by the City Council of the City of North Richland hills, 'Texas. THE BANK OI' NTGk~ YGRK Iti4ELLON TRLiST COMPANY, N.A. 2001 Brvan Street. 9th Flovr Dallas, Texas 75201 fi561A6S3-1!1091Q?91 ll-1 EYHIBIT E NOTICE OF REDEiv~TPTION CITY OF NOR"I'11 I2ICHL,A.ND IIILL,S, 'I`I :kAS, TA~i AND \\'ATER\VORICS AND SEWER SYSTEA~I (LIMIT'ED PLEDGE) RE\'ENLiE CERTTPICr'1'I'ES OF OBLIGATION, SERIES ZOOU DA'I'EI7 MAY 1.20100 NOTICE IS HEREBY GIVEN that. the obligations of the above series maturing on February 15, 2011. in the principal arnount oP $115,000 have been called for redemption on Jung 29, 2010 at the redemption price of par and accrued interest to tha date of redemption, such obligations being identified as follows: Year of Principal C[.?SII' Maturity F~nount Number 2011 $115,000 ALL SUCH OBLIGATIONS shall become due and payable on June 29, 2010, and interest therecm shall cease to accrue from and after said redemption date and payment of the redemption price of said obligations shall be paid to the registered. ownars thereof only upon presentation and surrender of such obligations to 71~e Bank of New fork. Mellon '!'rust Company, N.A., Dallas, Texas (eu successor paving agenL'registrar to Bank One, Texas, N.A.), at its designated otl~ices at the following addresses: First Class% Reuistered%CertiT"ied Express Delivery~Courier BY Hand Only 17ie Bank oI` New t`ork Mellon The Bank of New Y ork.141ellon The Batrk of New Yorkl~Iellan Trust 'T'rust Company, N.A. `]rust Company, N.A. C.:ompany, N.A. (:Tlobal C.'o~porate'I'rust Global Co~rorate'I'rust Global Corporate'1'rust P. O. Box 396 1 ] 1 Sanders Crc<:k Pkwy. Corporate Trust V1%indow East Syracuse, NY 13057 East Sy~.3euse, NY 13057 101 Barclay Street, Ist Floor East New York, New York 10236 THIS NOTICE is issued and given pursuant to the tetYns and conditions prescribed for the redemption o]'said obligations and pursuant to an ordinance adopted by the City Council. of the City of North Richlanrl Hills, Texas. THE BANk OF NEW YORK MELLON '1'RUS"I' COMPANY, N.A. 2001 Bryan. Street, 9th Floor Dallas, 'I zxas 15201 RS6lA6S2.]!1p510?91 F,-1 CITY OF NORTH RICHLAND HILLS Department: Parks and Recreation Presented by: Vickie Loftice Council Meeting Date: 5-24-2010 Agenda No. F.5 Subject: PU 2010-012 Award of Bid No. 09-037 to Greenscaping, Inc., in the amount of $527,500.10, for Construction of the Boulevard 26 Trail Summary This Item is to award the bid for construction of the Boulevard 26 Trail to Greenscaping, Inc., in the amount of $527,500.10. The .6 mile trail is located between the Medical Office Building and North Hills Hospital. General Description The approved Parks and Recreation Capital Improvement Program provides funding for the City's share of this .6 mile multi-use trail project, which is being funded through the American Recovery and Reinvestment Act (ARRA) administered through TxDOT. The City's share represents 20% of the total construction cost and the Federal Share represents 80% of the total construction cost. The total available funding for construction of the project is $544,086.15. The project is locally let, which requires the City to pay full compensation of the contract amount to the contractor then seek reimbursement from TxDOT for $422,000.08 which is 80% of the contract amount. Notice of the City's intent to bid was advertised in local newspapers, as required by State statute, and posted on the City's Purchasing website. Bids were received on August 31, 2009. Those bids required TxDOT review and approval prior to TxDOT authorizing the City to execute a contract for the construction of the trail. Also, the bids included additional time to achieve approval from FEMA for work being proposed within the creek channel. Twenty-six sets of plans where distributed and sixteen bids were received for the project as follows: Estrada Concrete $420,258.20 Greenscaping, Inc. $527,500.10 The Fain Group, Inc. $536,632.05 2L Construction LLC $546,264.80 Cole Construction $546,866.85 Northstar Construction $559,533.80 Encino Landscape Inc. $605,286.65 Humphrey and Morton Construction Company $614,343.15 P.E.T. Construction Inc. $642,231.46 JDC Construction $644,297.00 Linder Construction Company Inc. $659,121.90 Woodrose Company Inc. $670,837.87 Rebcon Inc. $687,085.65 Cates, Courtney and Roebuck $714,570.70 Ratech Construction DCI Contracting $732,216.07 $942,888.00 After reviewing the bids received, staff and TxDOT recommend that the low bidder, Estrada Concrete, be disqualified due to their failure to complete and submit with the bid required documentation associated with ARRA funded projects. Therefore, staff and TxDOT recommend the award of bid to the second lowest bidder, Greenscaping, Inc., which is a construction company located in North Richland Hills. Greenscaping, Inc. has successfully completed the landscaping in the Public Right of way along Grand and Hawk Avenues, as well as construction of the Clyde Zellers Park, Kay Granger Park at Mullendore Elementary School and Dick Faram Park. The specifications require construction to begin within ten days after the Notice to Proceed is issued and substantial completion is to occur within 240 consecutive days (8 months). Recommendation To Award Bid No. 09-037 to Greenscaping, Inc., in the amount of $527,500.10, for Construction of the Boulevard 26 Trail. ~ ~ ~ + ~~ i. - ~ ,~ ~ _ ~ ~, ~ ~ v~en~ 3~ ~ tin~;tf,4a y .~ ~~~jj . f fy~~ 7 s ~ ~~• •• . i '1. 3 wr;. n)1 ~~~ ~~ ~ -~ ~ -r-. 'ti .- ~`` io ` ~~- ~~ ,. ~~~~. ~6 ~. , ~ ,~ ~ ,>~• ; ~{ ~* : ~ ~~. .~ ~r ~~ '~ a"'4 Proposed alignment Boulevard 26 Hike and Bike Trail ~.,: ;. .~ a t • CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. G.0 Subject: EXECUTIVE SESSION ITEMS CITY OF CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. H.0 Subject: INFORMATION AND REPORTS CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 5-24-2010 Agenda No. H.1 Subject: Announcements -Councilman Barth Announcements City Hall and other non-emergency City offices will be closed on Monday, May 31st, for the Memorial Day Holiday. NRH2O and Iron Horse Golf Course will remain open for the holiday. Garbage and recycling will be collected as normal. The North Richland Hills Fire Department offers CPR classes each month at the Fire Administration Building. The next class is scheduled from 6 p.m. to 10 p.m. on Thursday, June 3rd. The cost is $25. To sign up or get more information, please call 817-427-6901. Dan Echols Senior Center will hold its 7th Annual Indoor Garage Sale on Friday, June 11 from 8 a.m. to 3 p.m. Items will include linens, antiques, small appliances, kitchen items and much more. The center is located at 6801 Glenview Dr. For more details, please call 817-281-9267. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. Officers Kevin Luff, Duane Ford, and Dustin Black and Dispatcher Daniel Pate, Police Department - A letter was received from a resident expressing profound gratitude to these employees for their response to a call involving a family member. She stated, "These officers are a credit to the department. They were kind, compassionate and caring along with being professional. I am happy to live in North Richland Hills and know there are officers like these here for me." CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 5-24-2010 Presented by: Agenda No. H.2 Subject: A Look Through the Lens -May 2010 In celebration of our community, we will end the May 24th City Council Meeting with a short video highlighting the beauty of North Richland Hills, as well as recent community events. Many of the photographs and images in this video were taken by members of the NRH Flickr Group, an online group where residents can share their favorite photos of the community with other online users. Some of the photos were also taken by City Staff and the Northeast Tarrant Chamber of Commerce. This video is a positive reflection of the beautiful areas and images of our City and the pride our citizens have for North Richland Hills. CITY OF