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HomeMy WebLinkAbout1983-06-07 - Regular City Council27'7 MINUTES OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, HELD ON TUESDAY, JUNE 7, 1983 - 7:00 P.M. The regular meeting of the City Council of the City of Stephenville was called to order by the Mayor with the following members present: Mayor Joe F. Cummings Councilmembers: Jams L. McSwain Councilmembers: Floyd Gordon Ray Reynolds John E. Pollan David Clavton William G. Brede" and with the following members absent: Councilman G. A. Swindle and Charles Riggins. City Administrator Kurt J. Ackermann, City Secretary Joyce Pemberton, City Attorney Joseph Chandler, Director of Finance Charlene Young, Director of Public Works R. Y. Gann, Chief of Police Doug Conner, Rick Thompson, local manager of Warner -Amex Cable TV, Joseph Fisher, Carroll Lee, Billy Mobley, Ernest Gregory and others were also present. ITEM I: CONSIDER APPROVAL OF MINUTES. Councilman Reynolds moved approval of the minutes of the City Council meting held on the 3rd day of May and the 24th day of May, 1983. Councilman Pollan seconded the motion. The motion carried by the following vote: AYES: All members present voted aye. NOES: None ITEM II: RECOn EENDATIONS FROM CITY PLANNING AND ZONING COMMISSION. A. Mayor Cunnings, with the consent of the Council, set Tuesday, July 5, 1983 at 7:00 p.m. in Council Chambers at City Hall, 354 N. Belknap Street as the date, time, and place.for a public hearing to consider a request from Almeda Pack, Joyce Langford, and Sue Pack for a change of zoning, from R -2 to B -1, on Lots lb and 2a, Block 1, Frey First Addition, generally known as 511 W. Frey Street, for the purpose of establishing an antique shop on said premises. B. Mayor Cunnings submitted the name of Charles Robitaille as the replacement for Neil Hatch on the Planning & Zoning Commission. Councilman McSwain advised that he did not think Mr. Robitaille lived within the city limits. Mayor Cunnings deferred appointment until the next meeting. ITEM III: CONSIDER REQUEST FROM ERNEST GREGORY 455 LENNOX STREET TO LEASE A PORTION OF THE BELL STREET DEDICATION. Mr. Ernest Gregory addressed the Council stating that he proposed to lease a portion of the Bell Street dedication and approximately 10 feet from Billy Free which would give him sufficient front footage for the placement of a mobil home for rental purposes. After some discussion, Mayor Cummings appointed Councilmen Clayton and Pollan, along with City Administrator Kurt Ackermann as a committee to study this proposal and make their recommendations at the next council meeting. ITEM IV: HEAR COMMITTEE REPORTS: A. Virgil Rains' request to purchase a cuimciu:an isreae moveci tnat the proper p sell the designated portion of Carey Street to Mr committee. Councilman Gordon seconded the motion following vote: AYES: All members present voted aye NOES: None y Street: After some dis- cedures be implemented to Rains as recommended by the The motion carried by the 278 B. Request from Brad Allen re man Reynolds moved passage Inc. A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, RATIFYING, CONFIRMING AND APPROVING A COMMITMENT OF THE STEPHENVILLE HEALTH FACILITIES DEVELOPMENT CORPORATION TO PARTICIPATE IN THE FIN- ANCING OF A HEALTH FACILITY FOR ROCK HOUSE, INC. Council- Councilman Gordon seconded the motion. The motion carried by the following vote: AYES: All members present voted aye NOES: None Resolution in full included in minutes. C. Proposal from Warner:Amex To revise franchise renewal: Councilman Brede, . reporting for the Comnattee, advised that Warner -Amex has presented another franchise with some changes which the committee has not had time to review or discuss with the City Attorney. The committee recommends this new franchise be referred back to the committee. Mr. Jsoeph Fisher, attorney for Warner -Amex addressed the Council explaining the changes in the new franchise. After some discussion, it was the consensus of the Mayor and Council to send this new franchise to the committee for study and recommendations. V: FOR GROSS City Administrator Kurt Ackermann explained that the city may collect a 2% gross receipts tax on all legalized bingo games within the city. Should the Council so desire, an ordinance providing for collection of said gross receipts tax must be enacted. City Attorney Joseph Chandler advised the Council that only charitable institutions are licensed for this and that the statutes allow a $2,500. exemption on all gross receipts for each quarter and the Council might want to monitor the receipts for a while before enacting said ordinance. In so doing the Council would not be precluding the enactment of said ordinance in the future. Councilman Pollan suggested letting this run for six months then request an accounting from the State Comptroller at that time to see if such an ordinance would be feasible. After some discussion, it was the consensus of the Mayor and Council to table this item at this time and direct the City Administrator notify the State Comptroller's office that we would like to monitor said gross receipts on local bingo games. ITEM VI: AUTHORITY TO INVITE BIDS FOR POLICE VEHICLES After some discussion, Councilman Pollan moved that the Chief of Police be auth- orized to invite bids for two (2) 1984 police cars which are budgeted items. Councilman Brede seconded the motion. The motion carried by the following vote: AYES: All members present voted aye NOES: None There being no other business, the meeting adjourned at 7:40 p.m. ATTEST; J '—May—or — ity Xecretary 2r9 A RESOLUTION by the City Council of the City of Stephenville, Texas, ratifying, confirming and approving a commitment of the Stephenville Health Facilities Development Corporation to participate in the financing of a health facility for Rock House, Inc. WHEREAS, the Board of Directors of the Stephenville Health Facilities Development Corporation (the "Corporation ") has passed and adopted a resolution accepting an application from Rock House, Inc. (the "Company ") and agreeing to participate in the financing of a health facility to be located in the City of Stephenville, Texas, a copy of such resolution being attached hereto as Exhibit A; and WHEREAS, the Corporation has requested the City Council to ratify, confirm and approve its commitment to the Company to participate in the financing of such health facility, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS: SECTION 1: That the commitment of the Corporation to Rock House, Inc. to participate in the financing of a health facility, evidenced by the resolution of the Board of Directors of the Corporation attached hereto as Exhibit A, is hereby ratified, confirmed and approved, and said Corporation and Company may proceed with the arrangements for the financing of said Project as authorized and permitted by the Health Facilities Development Act. SECTION 2: That any bonds, or other obligations, issued as a result of said commitment of the Corporation shall not constitute a debt of the State of Texas, the City of Stephenville, Texas, or any other political corporation, subdivision or agency of the State of Texas or a pledge of the faith and credit of any of them, but any such bonds or obligations shall be payable solely from those funds derived and resulting from, any and all agreements by and between the Corporation and the Company, and all such bonds or obligations issued shall contain on their face a statement to the effect that (i) neither the State, the City nor any political subdivision or agency of the State, shall be obligated to pay the same or the interest thereon and (ii) neither the faith and credit nor the taxing power of the State, the City or any political subdivision or agency thereof is pledged to the payment of the principal of, redemption premium, if any, or interest on such bonds. . PASSED AND APPROVED, this _ day of , 19U. Ma r, City of Stephenville, aexas ATTEST: �ity ecretary, City of Stephenville, Texas (City Seal) APPLICATION OF CAROL A. BLEDSOE FOR TRANSFER OF GARBAGE COLLECTION AND DISPOSAL FRANCHISE FROM THE CITY OF STEPHENVILLE TO THE HONORABLE CITY COUNCIL OF STEPHENVILLE, TEXAS: I, CAROL A. BLEDSOE, do hereby make this application that the franchise granted by the City of Stephenville to me for garbage collection and disposal within the City of Stephenville be trans- ferred by the city to KAREN SUE PACK, NICKI BETH JONES and MELDENE ELLIOTT, as I desire to sell this business to them and desire that this franchise be assigned to them and this cannot be done without the prior written approval and consent of the City of Stephenville. Respectfully submitted this 19� day of May, 1983. (Carol A. Bledsoe) NOTICE OF INTENTION TO ISSUE CITY OF STEPHENVILLE, TEXAS, CERTIFICATES OF OBLIGATION TAKE NOTICE that the City Council of the City of Stephenville, Texas, shall convene at 3:00 o'clock p M. on the 24th•day of May, 1983, at its regular meeting place in the City Hall of said City, and, during such meeting, the Council will consider the passage of an ordinance authorizing the issuance of certificates of obligation in an amount not to exceed $ 3,700,000.00 for the purpose of paying contractual obligations to be incurred for (i) the construction of public works to the City's combined Waterworks and Sanitary Sewer System, to wit: water supply, treatment, storage and distribution facilities and (ii) professional services, such certificates to be payable from ad valorem taxes and a lien on and pledge of the net revenues of the City's combined Waterworks and Sanitary Sewer System.. The certificates are to be issued, and this notice is given, under and pursuant to the provisions of Article 2368a.1, V.A.T.C.S. — _y-✓ tyAecretary, City of Stephenville, Texas AFFIDAVIT OF PUBLICATION THE STATE OF TEXAS § § COUNTY OF ERATH § BEFORE ME, the undersigned authority, on this day personally appeared �iy /1e -?e A-h -::El who, after being b/y /m/e, duly sworn, deposes and says that (s)he is the �OO /��c �° Z° O�/� of the �U /C �rs� lii /A which is a newspaper of general circulation in the City of Stephenville, Texas, and that a true and correct copy of the "NOTICE OF INTENTION TO ISSUE CITY OF STEPHENVILLE, TEXAS, CERTIFICATES OF OBLIGATION ", hereto attached, was published in said paper on the following dates: May 6 ; 1983; and May 13 , 1983; the date of the first publication being at least fourteen (14) days prior to the date stated therein for the passage of the ordinance authorizing the issuance of the certificates of obligation. SWORN TO AND SUBSCRIBED BEFORE ME, this the /�;' day of CE 1983. NN .a-ry Pudic. State of Texas My Commission Expires: _-75'� �. (Notary Seal) OFFICIAL BID FORM MAYOR AND CITY COUNCIL CITY OF STEPHENVILLE STEPHENVILLE, TEXAS For your legally issued $3,700,000 Combined Tax and Revenue, Certificates of Obligation, Series 1983, and in accordance with your "Official Notice of Sale" and 'Official Statement ", both of which constitute a part hereof, we will pay you par plus accrued interest from date of issue to date of delivery to us, plus a cash premium of $ —0 for certificates of obligation maturing and bearing interest as follows: June 1, 1984 //. DD % June 1, 1991 11, DU % June 1, 1985 //,DO % June 1, 1992 //,Do June 1, 1986 /A00 % June 1, 1993 / /ADD June 1, 1987 //•DD % June 1, 1988 /1. DeD June 1, 1989 //• 00 % June 1, 1994 M 00 % June 1, 1995 ?,,go % June 1, 1996 q, /0 % June 1, 1990 //. Dy % June 1, 1997 9, VJ Interest cost in accordance with the above bid is: Gross Interest Cost Less: Premium NET INTEREST COST EFFECTIVE INTEREST RATE :JY,9 Cashier's Check of the American Bank, A„cri amount of $74,000 which represents our Good Faith Deposit M been made available to you prior to the opening of this bid, cordance with the terms as set forth in the "Official Notice Statement." Upon delivery of the certificates, said check s' purchase price. n , Texas, in the XXW9M9X =FWW or has and is submitted in ac- of Sale" and "Official fall be applied on the We agree to accept delivery of and make payment for the certificates at American Bank, Austin, Texas, when tendered for delivery, pursuant to the terms set forth in the "Official Notice of Sale." Respectfully submitted, Schneider, Bernet & Hickman, Inc.-- Mar (see attached list of members) Representa J.D. Buchanan Senior Vice President June 1, 1998 June 1, 1999_% June 1, 2000 % June 1, 2001 9.3 D % June 1, 2002 ,S a June 1, 2003 ,J % :JY,9 Cashier's Check of the American Bank, A„cri amount of $74,000 which represents our Good Faith Deposit M been made available to you prior to the opening of this bid, cordance with the terms as set forth in the "Official Notice Statement." Upon delivery of the certificates, said check s' purchase price. n , Texas, in the XXW9M9X =FWW or has and is submitted in ac- of Sale" and "Official fall be applied on the We agree to accept delivery of and make payment for the certificates at American Bank, Austin, Texas, when tendered for delivery, pursuant to the terms set forth in the "Official Notice of Sale." Respectfully submitted, Schneider, Bernet & Hickman, Inc.-- Mar (see attached list of members) Representa J.D. Buchanan Senior Vice President !- ACCEPTED this 24th day of May, 1983, by order of the Mayor and City Council, City of Stephenville, Texas. ATTEST: ecre ry, City of Stephenville MY W, City of-Stephenville BOND YEARS $3,700,000 CITY OF STEPHENVILLE, TEXAS COMBINED TAX and REVENUE CERTIFICATES of OBLIGATION Series 1983 ACCUMULATED YEAR AMOUNT BOND YEARS BOND YEARS YEAR 1984 30,000 30 30 1984 , 1985 10,000 20 50 1985 1986 15,000 45 95 1986 1987 25,000 100 195 1987 1988 30,000 150 345 1988 1989 35,000 210 555 1989 1990 40,000 280 835 1990 1991 45,000 360 1195 1991 1992 110,000 990 2185 1992 1993 180,000 1800 3985 1993 1994 195,000 2145 6130 1994 1995 210,000 2520 8650 1995 1996 230,000 .. 2990 11640 1996 1997 275,000 3850 15490 1997 1998 300,000 4500 19990 1998 1999 325,000 5200 25190 1999, 2000 360,000 6120 31310 2000 2001 390,000 7020 38330 2001 2002 430,000 8170 46500 2002 2003 465,000 9300 55800 2003 AVERAGE MATURITY: 15.08 YEARS $3,700,000 City of Stephenville Combination Tax and Utility System Subordinate Lien Revenue Certificates of Obligation, Series 1983 MEMBERS Schneider, Bernet & Hickman, Inc. - Manager. Blythe Eastman Paine Webber, Inc. - Jt. Manager Dean Witter Reynolds, Inc. - Jt. Manager Mercantile National Bank (Dallas) RepublicBank (Dallas) Westcap Securities, Inc. (XA5 AaB<er e 4 4/ OqIV , OFFICIAL BID FORM MAYOR AND CITY COUNCIL CITY OF STEPHENVILLE STEPHENVILLE, TEXAS For your legally issued $3,700,000 Combined Tax and Revenue, Certificates of Obligation, Series 1983, and in accordance with your "Official Notice of Sale" and "Official Statement ", both of which constitute a part hereof, we will pay you par plus accrued inter t from date.of issue to date of delivery to us, plus a cash premium of $_� , 7,.5 for certificates of obligation maturing and bearing interest as follows: y June 1, 1991 /0,73 % June 1, 1992 /0,73 % June 1, 1993 ID, 73 % June 1, 1994 1O,7S % June 1, 1995 June 1, 1984 /0,73 %% 1996 V'710 % June June 1, 1985 0,73 June 1, 2000 June 1, 1986 /0,73 2001 p, / 7 V % June 1, 1987 10,7.5 % June 1, 1988 10, T-) % June 1, 1989 10,73 1, 2003 q / 7- June 1, 1990 /0,7.J % y June 1, 1991 /0,73 % June 1, 1992 /0,73 % June 1, 1993 ID, 73 % June 1, 1994 1O,7S % June 1, 1995 ?,/a % June 1, 1996 V'710 % June 1, 1997 ?30 Interest cost in accordance with the above bid is: el lo, Gross Interest Cost $ e .Ji llo 'W o, u Less: Premium $ va , NET INTEREST COST $ EFFECTIVE INTEREST RATE O % r Cashier's Check of the IS 7, C"t! y Bank, Texas, in the amount of $74,000 which represents o r Good Faith Deposit is attached hereto or has been made available to you prior to the opening of this bid, and is submitted in ac- cordance with the terms as set forth in the "Official Notice of Sale" and "Official Statement." Upon delivery of the certificates, said check shall be applied on thb purchase price. We agree to accept delivery of and make payment for the certificates at,/&f Bank, Austin, Texas, when tendered for delivery, pursuant to the terms set forth in the " Official Notice of Sale." Respectfu }ly submit, ed, _ AA / /AS -7- 64 e, oua u /Pl c e 'U e�� � I�vius�� B y: �"4©1�6c�1 Authori d ppre tiv IN r June 1, 1998 9 D June 1, 1999 o i 9 s a June 1, 2000 G v % June 1, 2001 p, / 7 V % 7,3 June 1, 2002 June 1, 2003 q / 7- Interest cost in accordance with the above bid is: el lo, Gross Interest Cost $ e .Ji llo 'W o, u Less: Premium $ va , NET INTEREST COST $ EFFECTIVE INTEREST RATE O % r Cashier's Check of the IS 7, C"t! y Bank, Texas, in the amount of $74,000 which represents o r Good Faith Deposit is attached hereto or has been made available to you prior to the opening of this bid, and is submitted in ac- cordance with the terms as set forth in the "Official Notice of Sale" and "Official Statement." Upon delivery of the certificates, said check shall be applied on thb purchase price. We agree to accept delivery of and make payment for the certificates at,/&f Bank, Austin, Texas, when tendered for delivery, pursuant to the terms set forth in the " Official Notice of Sale." Respectfu }ly submit, ed, _ AA / /AS -7- 64 e, oua u /Pl c e 'U e�� � I�vius�� B y: �"4©1�6c�1 Authori d ppre tiv IN r ACCEPTED this 24th day of May, 1983, by order of the Mayor and City Council, City of Stephenville, Texas. ATTEST: Secretary, City of Stephenville Mayor, City of Stephenville BOND YEARS $3,700,000 CITY OF STEPHENVILLE, TEXAS COMBINED TAX and REVENUE CERTIFICATES of OBLIGATION Series 1983 ACCUMULATED YEAR AMOUNT BOND YEARS BOND YEARS YEAR 1984 30,000 30 30 1984 1985 10,000 20 50 1985 1986 15,000 45 95 1986 1987 25,000 100 195 1987 1988 30,000 150 345 1988 1989 35,000 210 555 1989 1990 40,000 280 835 1990 1991 45,000 360 1195 1991 1992 110,000 990 2185 1992 1993 180,000 1800 3985 1993 1994 195,000 2145 6130 1994 1995 210,000 2520 8650 1995 1996 230,000 2990 11640 1996 1997 275,000 3850 15490 1997 1998 300,000 4500 19990 1998 1999 325,000 5200 25190 1999 2000 360,000 6120 31310 2000 2001 390,000 7020 38330 2001 2002 430,000 8170 46500 2002 2003 465,000 9300 55800 2003 AVERAGE MATURITY: 15.08 YEARS AFFIDAVIT OF PUBLICATION THE STATE OF TEXAS § COUNTY OF ERATH § BEFORE ME, the undersigned authority, on this day personally appeared 'j-14- 4zc who, after being by me duly sworn, deposes and says that (s)he is the �oo�i� �°c°DP/` of the /J / /�C �•� /�� /` which is a newspaper of general circulation in the City of Stephenville, Texas,.and that a true and correct copy of the "NOTICE OF INTENTION TO ISSUE CITY OF'STEPHENVILLE, TEXAS, CERTIFICATES OF OBLIGATION ", hereto attached, was published in said paper on the following dates: May 6 May 13 1983; and , 1983; M the date of the first publication being at least fourteen (14) days prior to the date stated therein for the passage of the ordinance authorizing the issuance of the certificates of obligation. y SWORN TO AND SUBSCRIBED BEFORE ME, this the day of 1983. Nfi0t y Public,) State of Texas / My.Commission Expires: �� Y (Notary Seal) FILE A RESOLUTION by the City Council of the City of Stephenville, Texas, approving and authorizing publication of notice of intention to issue certificates of obligation. . WHEREAS, the City Council of the City of Stephenville, Texas, has determined that certificates of obligation should be issued under and pursuant to the provisions of Article 2368a.1, V.A.T.C.S., for the purpose of paying contractual obligations to be incurred for (i) the construction of public works to the City's combined Waterworks and Sanitary Sewer System, to wit: water supply, treatment, storage and distribution facilities and (ii) professional services; and WHEREAS, prior to the issuance of such certificates, the City Council is required to publish notice of its intention to issue the same in a newspaper of general circulation in the City, said notice stating (i) the time and place this Council tentatively proposes to pass the ordinance authorizing the issuance of the certificates, (ii) the maximum amount proposed to be issued, (iii) the purposes for which the certificates are to be issued and (iv) the manner in which the Council proposes to pay the certificates; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS: SECTION. 1: That the City Secretary is hereby authorized and directed to cause notice to be published of this Council's intention to issue certificates of obligation in an amount not to exceed $3,700 000.00 for the purpose of paying contractual obligations to be incurred for (i) the construction of public works to the City's combined Waterworks and Sanitary Sewer. System, to wit: water supply, treatment, storage and distribution facilities and (ii) professional services, such certificates to be payable from ad valorem taxes and a lien on and pledge of the net revenues of the City's combined Waterworks and Sanitary Sewer System. The notice hereby approved and authorized to be published shall read substantially in the form and content of Exhibit A hereto attached and incorporated herein by reference as a part of this resolution for all purposes. SECTION 2: That the City Secretary shall cause the aforesaid notice to be published in a newspaper of general circulation in the City, once a week for two consecutive weeks, the date of the first publication to be at least fourteen (14) days prior to the date stated therein for the passage of the ordinance authorizing the issuance of the certificates of obligation. PASSED AND APPROVED, this the 3rd day of May, 1983.' M or, "City of Stephenville, Texas Tem ;tephenville, TEST: y ecretary, City of Texas (City Seal) CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS' COUNTY OF ERATH CITY OF STEPHENVILLE 5 I, the undersigned, City Secretary of the City of Stephenville, Texas, DO HEREBY CERTIFY as follows: 1. That on the 3rd day of May, 1983, the City Council of the City of Stephenville, Texas, convened in regular session at its regular meeting place in the City Hall of said City; the duly constituted members of the Council being as follows: JOE F. CUMMINGS MAYOR RAY REYNOLDS ) JIM MCSWAIN ) G. A. SWINDLE ) JOHN POLLAN ) COUNCILMEMBERS CHARLES RIGGINS ) ELOYD GORDON ) WILLIAM G. BREDE ) DAVID CLAYTON ) and all of said persons were present at said meeting, except the following: _ Among other business considevoed s at and d e etmYnngns the attached resolution entitled: "A RESOLUTION by the City Council of the City of Stephenville, Texas, approving and authorizing publication of notice of intention to issue certificates of obligation." was introduced and submitted to the Council for passage and adoption. After presentation and due consideration of the resolution, a motion was made by David Clayton that the resolution be finally passed and adopted. The motion was seconded by William G. Brede and carried by the following vote: 4 voted "For" 2 voted "Against" 1 abstained all as shown in the official Minutes of the Council for the meeting held on the aforesaid date. 2. That the attached resolution is a true and correct copy of the original on file in the official records of the City; the duly qualified and acting members of the City` Council of said City on the date of the aforesaid meeting are those persons shown above and, according to the records of my office, advance notice of the time, place and purpose of said meeting was given to each member of the Council and that said meeting, and deliberation of the aforesaid public business, was open to the public and written notice of said meeting, including the subject of the entitled resolution,.was posted and given in advance thereof in compliance with the provisions of Article 6252 -.17, Section. 3A, V.A.T.C.S. IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City, this the 3rd day of May, 1983. - y ecretary, City of Stephenville, Texas (City Seal) AN ORDINANCE by the City Council of the City of Stephenville, Texas, authorizing the issuance of $3,700,000 "CITY OF STEPHENVILLE, TEXAS, COMBINATION TAX AND UTILITY SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 198311, dated June 1, 1983; prescribing the form of the certificates and the form of the interest coupons; providing for the payment of said certificates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a pledge of the net revenues derived from the operation of the City's Waterworks and Sanitary Sewer System; providing the terms and conditions of such certificates; and enacting other provisions incident and related to the subject and purpose of this ordinance. WHEREAS, the City Council of the City of Stephenville, Texas has determined that certificates of obligation should be issued under the provisions of Article 2368a.1, V.A.T.C.S., and sold for cash, to provide funds to pay contractual obligations to be incurred for (i) the construction of public works to the City's combined Waterworks and Sanitary Sewer System, to wit: water supply, treatment, storage and distribution facilities, and (ii) professional services; and WHEREAS, notice of intention to issue such certificates of obligation (stating the time and place the Council proposed to authorize the issuance of such certificates, the maximum amount proposed to be issued; the purpose thereof and the manner in which the Council proposed to provide for the payment of such certificates) has been published in the Stephenville Empire - Tribune, a newspaper of general circula- tion in the City of Stephenville, Texas, on May 6'a` , 1983 and May 13 , 1983, the date of the first publication being at least fourteen (14) days prior to the date stated in said notice for the passage of the ordinance authorizing the certificates; and WHEREAS, no petition of any kind or character has been filed with the City Secretary, any member of this Council or any other official of the City protesting the issuance of such certificates; and WHEREAS, the City Council hereby finds and determines that all of the certificates described in the aforesaid notice should be issued and sold at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS: SECTION 1: That, for the purpose of paying contractual obligations to be incurred for (i) the construction of public works to the City's combined Waterworks and Sanitary Sewer Sytem, to wit: water supply, treatment, storage and distribution facilities, and (ii) professional services, there . shall be and there is hereby ordered to be issued, under and by virtue of the Constitution and laws of the State of Texas, particularly Article 2368a.1, V.A.T.C.S., a series of certificates of obligation of the City of Stephenville, Texas, to be known as "CITY OF STEPHENVILLE, TEXAS, COMBINATION TAX AND UTILITY SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATES OF OBLIGATION, SERIES 1983" (the "Certificates "), in the principal sum of THREE MILLION SEVEN HUNDRED THOUSAND DOLLARS ($3,700,000), payable from ad valorem taxes and a lien on and pledge of the net revenues of the City's Waterworks and Sanitary Sewer System as hereinafter provided in this ordinance. SECTION 2: That said Certificates shall be dated June 1, 1983; shall be numbered consecutively from One (1) through Seven Hundred Forty (740); shall each be in the denomination of Five Thousand Dollars ($5,000); and shall become due and payable serially on June 1 in each of the years and bear interest at the per annum rates in accordance with the following schedule: CERTIFICATE NUMBERS (All Inclusive) YEAR AMOUNT 1 to 6 1984 $ 30,000 7 and 8 1985 10,000 9 to 11 1986 15,000 12 to 16 1987 25,000 17 to 22 1988 30,000 23 to 29 1989 35,000 30 to 37 1990 40,000 38 to 46 1991 45,000 47 to 68 1992 110,000 69 to 104 1993 180,000 105 to 143 1994 195,000 144 to 185 1995 210,000 186 to 231 1996 230,000 232 to 286 1997 275,000 287 to 346 1998 300,000 347 to 411 1999 325,000 412 to 483 2000 360,000 484 to 561 2001 390,000 562 to 647 2002 430,000 648 to 740 2003 465,000 INTEREST RATE PROVIDED, HOWEVER, the City of Stephenville, Texas, reserves the right to redeem the Certificates of this series maturing June 1, 1995, and subsequent, in whole or any part thereof, on June 1, 1994, or on any interest payment date thereafter, at the price of par and accrued interest to the date of redemption; PROVIDED, FURTHER, that at least thirty (30) days prior to a date any of said Certificates are to-be redeemed, a notice of redemption, signed by the City Secretary (specifying the serial numbers and amount of Certificates to be redeemed), shall have been filed with RepublicBank Dallas, N. A., Dallas, Texas and Stephenville Bank & Trust Co., Stephenville, Texas (the paying agents named in each of said Certificates); and if the City shall have made available on the date of redemption funds sufficient to pay the Certificates to be redeemed and accrued interest thereon, any Certificate or Certificates not presented for redemption pursuant to such notice shall cease to bear interest from and after the date so fixed for redemption. SECTION 3: That the Certificates herein authorized to be issued shall bear interest from date until paid, or the redemption thereof in accordance with the terms prescribed therefor, at the per annum rates shown above, such interest to be evidenced by proper coupons attached to each of said Certificates and said interest shall be payable on December 1, 1983, and semiannually thereafter on June 1 and December in each year. -2- SECTION 4: That both principal of and interest on this issue of Certificates shall be payable in lawful money of the United States of America, without exchange or collection charges to the owner or holder, at RepublicBank Dallas, N. A., Dallas, Texas, or, at the option of the holder, at Stephenville Bank & Trust Co., Stephenville, Texas, upon presentation and surrender of Certificates or proper coupons. SECTION 5: That the seal of said City may be impressed on each of said Certificates or, in the alternative, a facsimile of such seal may be printed on said Certificates. The Certificates and interest coupons appurtenant thereto may be executed by the imprinted facsimile signatures of the Mayor and City Secretary of the City, and execution in such manner shall have the same effect as if such Certificates and coupons had been signed by the Mayor.and City Secretary in person by their manual signatures. Inasmuch as such Certificates are required to be registered by the Comptroller of Public Accounts for the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be required to be manually subscribed to such Certificates in connection with his registration certificate to appear thereon, as hereinafter provided, all in .accordance with the provisions of Article 717j -1, V.A.T.C.S. SECTION 6: That the Certificates shall be substantially in the following form: NO. UNITED STATES OF AMERICA $5,000 STATE OF TEXAS COUNTY OF ERATH CITY OF STEPHENVILLE, TEXAS, COMBINATION TAX AND UTILITY SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION SERIES 1983 THIS IS TO CERTIFY that, FOR VALUE RECEIVED, the City of Stephenville, a municipal corporation of the State of Texas, is justly indebted to and hereby promises to pay to bearer on the FIRST DAY OF JUNE, the principal sum of FIVE THOUSAND DOLLARS ($5,000), in lawful money of the United States of America, with interest thereon from the date hereof until paid, or the redemption hereof in accordance with the terms prescribed therefor, at the rate of PER CENTUM ( %) per annum, such interest being payable on December 1, 1983, and semiannually thereafter on June 1 and December 1 in each year and evidenced by interest coupons attached hereto. BOTH PRINCIPAL AND INTEREST are payable only upon presentation and surrender of this Certificate and the interest coupons hereto attached as the same severally become due at RepublicBank Dallas, N. A., Dallas, Texas, or, at the option of the holder, at Stephenville Bank & Trust Co., Stephenville, Texas without exchange or collection charges to the owner or holder, and the bearer of this Certificate and its appurtenant interest coupons shall be, deemed the absolute owner thereof for purposes of receiving payment and all other purposes, and neither the City nor the -3- aforesaid place of payment shall be affected by any notice to the contrary. THIS CERTIFICATE is one of a series of certificates, dated June 1, 1983, numbered consecutively from One (1) through Seven Hundred Forty (740), each in the denomination of Five Thousand Dollars ($5,000), aggregating in principal amount THREE MILLION SEVEN HUNDRED THOUSAND DOLLARS ($3,700,000), issued for the purpose of paying contractual obligations incurred for (i) the construction of public works to the City's combined Waterworks and Sanitary Sewer System, to wit: water supply, treatment, storage and distribution facilities, and (ii) professional services, under and by virtue of the Constitution and laws of the State of Texas, including Article 2368a.1, V.A.T.C.S., and in accordance with an ordinance (the "Ordinance ") duly passed and adopted by the City Council of the City of Stephenville, Texas, and of record in the Minutes of said City Council. AS SPECIFIED in the Ordinance, the City of Stephenville, Texas, reserves the right to redeem the Certificates of said series maturing June 1, 1995, and subsequent, in whole or any part thereof, on June 1, 1994, or on any interest payment date thereafter, at the price of par and accrued interest to the date of redemption; PROVIDED, HOWEVER, that at least thirty (30) days prior to a date any of said Certificates are to be redeemed, a notice of redemption, signed by the City Secretary (specifying the serial numbers and amount of Certificates to be redeemed), shall have been filed with RepublicBank Dallas, N. A., Dallas, Texas, and Stephenville Bank & Trust Co., Stephenville, Texas, and if the City shall have made available on the date of redemption funds sufficient to pay the Certificates to be redeemed and accrued interest thereon, any Certificate or Certificates not presented for redemption pursuant to such notice shall cease to bear interest from and after the date so fixed for redemption. THE CERTIFICATES are payable from an ad valorem tax levied upon all taxable property within the City, within the limitations prescribed by law, and are additionally payable from and secured by a lien on and pledge of the Net Revenues (as defined in the Ordinance) of the City's Waterworks and Sanitary Sewer System; such lien and pledge being junior and subordinate to the lien and pledge securing the payment and security of the "Prior Lien Bonds" (identified and defined in the Ordinance) and which the City has reserved the right to issue. For a more complete description and identification of the sources and security for the payment of the Certificates, reference is hereby made to the Ordinance. IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the issuance of this Certificate and the series of which it is a part, is duly authorized by law; that all acts, conditions and things required to be done precedent to and in the issuance of the Certificates have been properly done, have happened and have been performed in regular and due time, form and manner as required by law; that proper provision has been made for the payment of principal of and interest on the Certificates, by the levy of a direct and continuing annual ad valorem tax against all taxable property within said City and by a pledge of the Net Revenues of the City's Waterworks and Sanitary Sewer System, as hereinabove recited, and that the total indebtedness of the City of Stephenville, Texas, including the Certificates, does not exceed any constitutional or statutory limitation. -a_ IN TESTIMONY WHEREOF, the City Council of the City of Stephenville, Texas, in accordance with the provisions of Article 717j -1, V.A.T.C.S., has caused the seal of said City to be impressed or a facsimile thereof to be printed hereon, and this Certificate and its appurtenant coupons to be executed with the imprinted facsimile signatures of the Mayor and City Secretary of said City. COUNTERSIGNED: City Secretary, City of Stephenville, Texas Mayor, City of Stephenville, Texas SECTION 7: That the form of said interest coupons shall be substantially as follows: NO. ON THE FIRST DAY OF $ *(unless the Certificate to which this coupon pertains has been redeemed in accordance with its terms,) the CITY OF STEPHENVILLE, a municipal.corporation in the County of Erath, State of Texas, hereby promises to pay to bearer the amount shown hereon in lawful money of the United States of America, upon presentation and surrender of this coupon, at RepublicBank Dallas, N. A., Dallas, Texas, or, at the option of the holder, at Stephenville Bank & Trust Co., Stephenville, Texas, without exchange or collection charges, such amount being interest due on such date on "CITY OF STEPHENVILLE, TEXAS, COMBINATION TAX AND UTILITY SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION, SERIES 198311, dated June 1, 1983, Certificate No. City Secretary Mayor SECTION 8: That the following certificate shall be printed on the back of each certificate of obligation: OFFICE OF COMPTROLLER § § REGISTER NO. STATE OF TEXAS § I HEREBY CERTIFY that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this certificate of obligation has been examined by him as required by law, and that he finds that it has been issued in conformity with the Consti- tution and laws of the State of Texas, and that it is a valid and binding obligation of the City of Stephenville, Texas, and said Certificate.has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE, at Austin, Texas, *NOTE TO PRINTER: The included only in coupons subsequent. Comptroller of Public Accounts of the State of Texas expression in parenthesis to be maturing December 1, 1994, and -5- SECTION 9: That for purposes of for clarity with respect to the issuance herein authorized, and -the levy of taxes of net revenues therefor, the following whenever the same appears herein without are defined to mean as follows: this ordinance and of the certifications and appropriation cords or terms, qualifying language, (a) The term "System" shall mean the City's Waterworks and Sanitary Sewer System, including all properties real, personal, mixed or otherwise, now owned or hereafter acquired by the City of Stephenville, Texas through purchase, construc- tion or otherwise and used in connection with said System and in anywise appertaining thereto, whether situated within or without the limits of the City. (b) The term "Net Revenues" shall mean the gross revenues of the System less the expense'of operation and maintenance, including 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 keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair any obligations payable from and secured by a lien on the net revenues of the System shall be deducted in determining "Net Revenues ". (c) The term "Certificates" shall mean the $3,700,000 "City of Stephenville, Texas, Combination Tax and Utility System Subordinate Lien Revenue Certificates of Obligation, Series 1983" authorized by this ordinance. (d) The term "Certificate Fund" shall mean the special Fund created and established under the provisions of Section 10 of this ordinance. (e) The term "Prior Lien Bonds" shall mean all bonds or other similar obligations now outstanding or hereafter issued that are payable solely from and secured by a lien on and pledge of the Net Revenues of the System; including, but not limited to, the unpaid bonds of the following issue or series, to wit: "City of Stephenville, Texas, Waterworks and Sewer System Revenue Bonds, Series 198111, dated April 1, 1981. (f) The term "Fiscal Year" shall mean the annual financial accounting period for the City now ending on September 30 of each year; provided, however, the City Council may change, by ordinance duly passed, such annual financial accounting period to end on another date if such change is found and determined to be necessary. (g) The term "Collection Date" shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. (h) The term "Additional Certificates" shall mean combination tax and revenue certificates of obligation issued hereafter under and pursuant to the provisions of Article 2368a.1, V.A.T.C.S., or similar law hereafter enacted and payable from ad valorem taxes and additionally payable from and secured by a lien on and pledge of the Net Revenues of the System on a parity with and of equal dignity with the lien and pledge securing the payment of the Certificates. SECTION 10: That, for the purpose of paying the interest on and to provide a sinking fund for the payment, redemption and retirement of the Certificates, there shall be and is hereby created a special Fund to be designated "SPECIAL CITY OF STEPHENVILLE, TEXAS, COMBINATION TAX AND UTILITY SYSTEM SUBORDINATE LIEN REVENUE CERTIFICATE OF OBLIGATION FUND ", which Fund shall be kept and maintained at the City's depository bank, and moneys deposited in said Fund shall be used for no other purpose. Proper officers of the City are hereby authorized and directed to cause to be transferred to the Paying Agent for the Certificates, from funds on deposit in the Certificate Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Certificates 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 immediately available funds to be deposited with the Paying Agent for the Certificates at the close of the fifth (5th) business day next preceding each interest and /or principal payment date for the Certificates. SECTION 11: That to provide for the payment of the debt service requirements on the Certificates, being (i) the interest on said Certificates and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said Certificates or any interest thereon shall remain outstanding and unpaid, a sufficient tax on each one hundred dollars' valuation of taxable property in said City, adequate to pay such debt service requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the debt service require - ments, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund. This governing body hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said debt service requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in considera- tion of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates herein authorized to be issued shall be determined and accomplished in the following manner: (a) Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the City Council shall determine: (1) The amount on deposit in the Certificate Fund after making adjustments for (a) the total amount of debt service requirements to become due on the Certificates and (b) the amount of Net Revenues of the System appropriated and allocated to pay such debt service requirements prior to the Collection Date for the ad valorem taxes to be levied. (2) The amount of Net Revenues appropriated and to be set aside for of the debt service requirements on between the Collection Date for the be levied and the Collection Date fo be levied during the next succeeding year. -7- if any, the payment the Certificates taxes then to r the taxes to calendar (3) The amount of debt service requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the.next succeeding calendar year. (b) The amount of taxes to be levied annually each year to pay the debt service requirements on the Certificates shall be the difference,.if any, between the amount established in paragraph (3) above and the sum total of the amounts established in paragraphs (1) and (2), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 12: The City hereby covenants and agrees that, sub— ject only to the prior lien on and pledge of the Net Revenues of the System to the payment of the principal, interest and reserve requirements of the Prior Lien Bonds and the means and methods of accumulating and maintaining all special Funds required therefor under the provisions of any ordinance and proceedings pertaining to the authorization of Prior Lien Bonds, all the Net Revenues of the System, with the exception of those in excess of the amounts required to be deposited to the Certificate Fund as hereafter provided, are hereby irrevocably, pledged to the payment and security of the Certificates and Additional Certificates, if issued; all to the extent required by the provisions of this ordinance and any ordinance hereafter adopted relating to the issuance of Additional Certificates. SECTION 13: The City hereby covenants and agrees that all revenues derived from the operation of the System shall be kept separate and apart from all other funds, accounts and moneys of the City, and shall be deposited from day to day as collected into the "System Fund" created and established in connection with the issuance of the outstanding Prior Lien Bonds identified in Section 9(e) hereof and hereby reaffirmed to be maintained during the period of time the Certificates are outstanding, and which Fund shall continue to be kept and maintained at the City's depository bank. All moneys deposited in the System Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of precedence shown, to wit: First: To the payment of the reasonable and proper expenses of maintaining and operating the System as defined herein or required by statute to be a first charge on and claim against the revenues of the System. Second: To the payment of the amounts required to be deposited in the special Funds created and established for the payment, security and benefit of Prior Lien Bonds in accordance with the terms and provisions of any ordinance authorizing the issuance of Prior Lien Bonds; and Third: To the payment of the amounts required to be deposited in the special funds and accounts created and established for the payment of the Certificates (the Certificate Fund) and Additional Certificates. Any Net Revenues in the System Fund in excess of the amounts required to fully discharge and satisfy the foregoing requirements may be used for any lawful purpose. -8- SECTION 14: The City hereby covenants and agrees to cause to be deposited in the Certificate Fund from the pledged Net Revenues of the System in the System Fund after . deduction of all payments required to be made to the special Funds or accounts created for the payment and security of the Prior Lien Bonds, an amount equal to one hundred per centum (100 %) of the amount required to fully pay the interest and principal payments on the Certificates falling due each year. Such deposits from the Net Revenue shall be made as follows: (a) Commencing on or before July 15, 1983, and on or before the fifteenth day of each month thereafter through and including November 15, 1983, an amount equal to one -fifth (1 /5) of the installment of interest to become due on the Certificates on December 1, 1983, shall be deposited in the Certificate Fund; and (b) Commencing on or before December 15, 1983, and on or before the fifteenth day of each month thereafter, an amount equal to one -sixth (1/6) of the next installment of interest to become due on the Certificates plus (i) one - twelfth of the next installment of principal to become due on the Certificates shall be deposited in the Certificate Fund. The monthly deposits to be made to the Certificate Fund, as hereinabove provided, shall be made until such time as the Certificates are no longer outstanding. Accrued interest received from the purchaser of the Certificates shall be deposited to the Certificate Fund and ad valorem taxes levied, collected and deposited in the Certificate Fund for and on behalf of this series of Certificates may be taken into consideration and reduce the amount of the deposits hereinabove provided, which would otherwise be required to be deposited in the Certificate Fund from the Net Revenues of the System. In addition, any Certificate proceeds in excess of the amount required to pay the contractual obliga- tions to be incurred (including change orders to a construction contract) shall be deposited in the Certificate Fund, which amount shall reduce the sums otherwise required to be deposited in said Fund from ad valorem taxes and the Net Revenues of the System. SECTION 15: That all moneys on deposit in the Funds for which this ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and moneys on deposit in such Funds shall be used only for the purposes permitted by this ordinance. SECTION 16: That the City covenants and agrees that while the Certificates remain outstanding, it will operate the System with all possible efficiency and maintain casualty and other insurance on the properties of the System and its operations of a kind and in such amounts customarily carried by municipal corporations in the State of Texas engaged in a similar type of business; and that it will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Texas. SECTION 17: That the City hereby covenants and agrees with the holders of the Certificates that rates and charges for water and sewer services afforded by the System will be established and maintained to provide revenues sufficient at all times to pay: (a) all operating, maintenance, depreciation, replacement, betterment and interest charges and other costs incurred in the maintenance and operation of the System. (b) All indebtedness payable from and secured by a lien on and /or pledge of all or any portion of the Net Revenues of the System to the extent- required, and the funding of all special funds or accounts created and established for the payment and security thereof, including, but not limited to, the Prior Lien Bonds and the Certificates. SECTION 18: The City further covenants and agrees that so long as any of the Certificates or any interest thereon remains outstanding and unpaid, it will keep and maintain separate and complete records and accounts per- taining to the operations of the System in which complete and correct entries shall be made of all transactions relating thereto, as provided by Article 1113, V.A.T.C.S. or other applicable law. The holder or holders of the Certificates or any duly authorized agent or agents of such holders shall have the right to inspect the System and all properties comprising the same. The City further agrees that following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of Certified Public Accountants. Copies of each annual audit shall be furnished to the Executive Director of the Municipal Advisory Council of Texas at his office in Austin, Texas, and, upon written request, to the original purchaser of any series of Certificates. SECTION 19: That in addition to all the rights and remedies provided by the,laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Certifi- cate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions or obligations set forth in this ordinance, the owner or owners of any of the Certificates shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition or obligation prescribed in this ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. SECTION 20: That the City hereby further covenants as follows: (a) That it has the lawful.power to pledge the Net Revenues of the System supporting this issue of Certificates and has lawfully exercised said powers under the Constitution and laws of the State of Texas, including said power existing under Articles 1111 et seq. and 2368a.1. -10- (b) That other than for the payment of the outstanding Prior Lien Bonds (defined in Section 9(e) hereof) and the Certificates, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System. (c) That, as long as any Certificates or any interest thereon remain outstanding, the City will not sell, lease or encumber the System or any substantial part thereof, provided that this shall riot be construed to prohibit the sale of such machinery, or other properties or equipment which has become obsolete or otherwise unsuited to the efficient operation of the System. (d) That to the extent that it legally may, the City further covenants and agrees that, so long as any of the Certificates, or any interest. thereon, is outstanding, no franchise shall be granted for the installation or operation of any competing waterworks and sanitary sewer systems other than those owned by the City, and the opera- tion of any such systems by anyone other than the City is hereby prohibited. SECTION 21: 1 That the City hereby expressly reserves the right-to hereafter issue Prior Lien Bonds payable from and secured by a lien on and pledge of the Net Revenues of the System in accordance with the ordinances and proceedings relating to the issuance of such Prior Lien Bonds and, also, reserves the right to issue Additional Certificates on a parity with the Certificates insofar as the lien on and pledge of the Net Revenues of the System is concerned. SECTION 22: That it is the intention of this governing body and accordingly hereby recognized and stipulated that the provisions, 4greements and covenants contained herein bearing upon the management and operations of the System, and the components thereof, and the administering and application of revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements and covenants contained in the ordinances authorizing the issuance of the Prior Lien Bonds, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of the Prior Lien Bonds, 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 Bonds. SECTION 23: That each of the Certificates herein authoFi�zedshall be deemed and construed to be a "security" and as such a negotiable-instrument, within the meaning of Article 8 of the Uniform Commercial Code. SEC! eAON 24- That the sale of the autho�riz to &V'Vey -I- D .4 t_ L.4 !; 7 ie- YW --r- at the price of par and accrued interest to t delivery, plus a premium of $ WaAle- , is Delivery of said Certificates shall be made t as soon as may be after the adoption of this payment therefor in accordance with the terms _11- ates herein hereby confirmed. o said purchasers ordinance, upon of sale. - SECTION 25: That the City hereby certifies and covenants that the proceeds of the Certificates are needed at this time to finance the costs of capital improvements planned by the City; based on current facts, estimates and circumstances, it is reasonably expected final disbursement of the Certificate proceeds will occur within three years from the date of the receipt thereof by the City; it is not reasonably expected the proceeds of the Certificates or moneys deposited in the interest and.sinking fund created for the payment of the Certificates will be used or invested in a manner that would cause the Certificates to be "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or published rulings pertaining thereto; and save and except for the interest and sinking fund created herein, no other funds or accounts have been established or pledged for the payment of the Certificates. Proper officers of the City charged with the responsibility in the issuance of the Certificates are hereby authorized and directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the date of the issue of the Certificates and stating whether there are any facts, estimates or circumstances which would materially change the City's current expectations, and the covenants herein made and Certificates herein authorized are for the benefit of the Aolders of the Certificates and coupons appertaining thereto and may be relied upon by the Certificate holders and bond counsel for the City. SECTION 26: That 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, and shall take and have charge and control of the Certificates to pending their approval by the Attorney General, registration by the Comptroller of Public Accounts and delivery to the purchasers thereof. SECTION 27: That the purchasers' obligation to acbept delivery of the Certificates shall be subject to their being furnished a final opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas, approving such Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Certificates. Printing of a true and correct copy of said opinion on the reverse side of each of sa-d Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary is hereby approved and authorized. SECTION 28: That CUSIP numbers may be printed on the Cer-b.ificatesheherein authorized. It is expressly provided, ao•se:, that the presence or absence of CUSIP numbers on 'the `B..'-. i.cates shall be of no significance or effect as •,ae legality thereof and neither the City nor .'c :%eys approving said Certificates as to legality are to 5e `,e: ;d .responsible for CUSIP numbers incorrectly printed on �• -�' -, SIC'- 'OY 29: That in reference to the Offic al Statement preaa:7�- i— he initial offering and sale of the Certificates herein aul'.:horized by the City, the City Council approves the form and content thereof and hereby approves the form and content of any addenda, supplement or amendment thereto; the use of such Official Statement in the reoffering of the Certificates by the above named purchaser(s) is hereby approved and authorized; and the proper officials of the -12- City are hereby authorized to execute and deliver a certificate pertaining to said Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Certificates. SECTION 30: shall take effect and be in full force and effect immediately from and after its passage, and it is so ordained. PASSED AND APPROVED, this the 24th day of May, 1983. L May , City o Stephenville, exas ATTEST: it Secretary., City of Stephenville, Texas (City Seal) -13- A