HomeMy WebLinkAbout2020 0505CITY OF THE COLONY
CITY COUNCIL AGENDA
TUESDAY, MAY 5, 2020
6:30 PM
TO ALL INTERESTED PERSONS
Notice is hereby given of a REGULAR SESSION of the CITY COUNCIL of the City of The Colony,
Texas to be held at 6:30 PM on TUESDAY, MAY 5, 2020 at CITY HALL and via VIDEO
CONFERENCE, 6800 MAIN ST., THE COLONY, TX, at which time the following items will be
addressed:
1 ROUTINE ANNOUNCEMENTS, RECOGNITIONS AND PROCLAMATIONS
1.1 Call to Order
1.2 Invocation
1.3 Pledge of Allegiance to the United States Flag
1.4 Salute to the Texas Flag
1.5 Acknowledge Denton County's National Day of Prayer. (Council)
1.6 Proclamation acknowledging May 10-16, 2020 as Police Week. (Council)
1.7 Proclamation: Motorcycle Safety and Awareness Month. (Council)
1.8 Proclamation: National Bike Month. (Council)
1.9 Items of Community Interest
2 CITIZEN INPUT
This portion of the meeting is to allow up to five (5) minutes per speaker with a maximum of
thirty (30) minutes for items not posted on the current agenda. The council may not discuss these
items, but may respond with factual data or policy information, or place the item on a future
agenda. Those wishing to speak shall submit a Request Form to the City Secretary.
3 WORK SESSION
The Work Session is for the purpose of exchanging information regarding public business or
policy. No action is taken on Work Session items. Citizen input will not be heard during this
portion of the agenda.
3.1 Discuss and provide direction to staff regarding the phased opening of city facilities and the upcoming
Fourth of July event. (Powell)
3.2 Council to provide direction to staff regarding future agenda items. (Council)
4 CONSENT AGENDA
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REGULAR SESSION of the CITY COUNCIL Agenda
Meeting Date: 05/05/2020
Page - 2
The Consent Agenda contains items which are routine in nature and will be acted upon in one
motion. Items may be removed from this agenda for separate discussion by a Council member.
4.1 Consider approving City Council Regular Session meeting minutes for April 21, 2020. (Stewart)
4.2 Consider and act on an ordinance authorizing the issuance of the City's Combination Tax and Limited
Surplus Revenue Certificates of Obligation, Series 2020, levying a tax and pledging certain surplus
revenue of the City's water and sewer system for payment of certificates, and approving the execution of
agreements in connection therewith. (Cranford)
4.3 Consider and act on an ordinance authorizing the issuance of the City's General Obligation Refunding
Bonds, Series 2020 to refund 2010 and 2010A COs, levying a tax for the payment of the bonds, and
approving the execution of agreements in connection therewith. (Cranford)
4.4 Consider approving a resolution authorizing the City Manager to award bids for the annual mowing
services of water production and waste water to High Quality Landscaping and Bright View
Landscaping, respectfully. (Arthur)
4.5 Consider approving an ordinance to authorize a budget amendment to General Fund-CIP budget and
transfer $380,000.00 from the Office Creek Headwall Repair at Paige Rd. project to the Office Creek
Stream Bank Protection at Creek Hollow Drive project. (Hartline)
4.6 Consider approving a resolution authorizing the City Manager to execute a contract amendment in the
amount of $ 148,489.28 with Knight Erosion Control for the Office Creek Stream Bank Stabilization
project. (Hartline)
4.7 Consider approving an Electric Line Easement and Right-of-Way Agreement by and between Denton
County Electric Cooperative, Inc., d/b/a CoServ Electric, The Colony Economic Development
Corporation, The Colony Community Development Corporation, and The Colony Local Development
Corporation concerning a 15’ CoServ Electric Easement on 0.411 acres of land in the Thomas West
Survey, Abstract No. 1344, City of The Colony, Denton County, Texas. (Maurina).
4.8 Consider approving an Electric Line Easement and Right-of-Way Agreement by and between Denton
County Electric Cooperative, Inc., d/b/a CoServ Electric, The Colony Community Development
Corporation, and The Colony Local Development Corporation concerning a 20’ CoServ Electric
Easement on 0.477 acres of land in the Thomas West Survey, Abstract No. 1344, City of The Colony,
Denton County, Texas. (Maurina).
4.9 Consider approving a Trail Easement with The Colony Local Development Corporation concerning a
0.6051 acres of land in the B.B.B. & C.R.R. Co. Survey, Abstract No. 174, City of The Colony,
Denton County, Texas. (Morgan)
5 REGULAR AGENDA ITEMS
5.1 Conduct a public hearing, discuss and consider an ordinance amending Planned Development-16
District (PD-16), to permit and provide development standards for off-premises/billboard signage
located at 5733 SH 121 within Lot 5A, Block A (Village at 121 shopping center) within the Planned
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REGULAR SESSION of the CITY COUNCIL Agenda
Meeting Date: 05/05/2020
Page - 3
Development-16 District and the Gateway Overlay District. (Williams)
6 EXECUTIVE SESSION
6.1 A. Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas
Government Code to seek legal advice from the city attorney regarding pending or contemplated
litigation - Appeal of Brazos Electric Power Cooperative, Inc., PUC Docket No. 45175 and City of
The Colony, Texas v. Brazos Electric Power Cooperative, Inc. matter, Cause No. 16-06424-16, and
related agreement with Lonzar Delaware, Inc, a Delaware corporation.
B. Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas
Government Code to seek legal advice from the city attorney regarding drainage impact fee
reimbursement issue – JNC Properties LLC and Flournoy Development Company, LLC matters.
C. Council shall convene into a closed executive session pursuant to Section 551.072 of the Texas
Government Code to deliberate the purchase, exchange, lease, or value of real property.
D. Council shall convene into a closed executive session pursuant to Section 551.087 of the Texas
Government Code regarding commercial or financial information the city has received from a business
prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s).
7 EXECUTIVE SESSION ACTION
7.1 A. Any action as a result of executive session regarding pending or contemplated litigation - Appeal of
Brazos Electric Power Cooperative, Inc., PUC Docket No. 45175 and City of The Colony, Texas v.
Brazos Electric Power Cooperative, Inc. matter, Cause No. 16-06424-16, and related agreement with
Lonzar Delaware, Inc, a Delaware corporation.
B. Any action as a result of executive session regarding drainage impact fee reimbursement issue – JNC
Properties LLC and Flournoy Development Company, LLC matters.
C. Any action as a result of executive session regarding the purchase, exchange, lease, or value of real
property.
D. Any action as a result of executive session regarding commercial or financial information the city has
received from a business prospect(s).
EXECUTIVE SESSION NOTICE
Pursuant to the Texas Open Meeting Act, Government Code Chapter 551 one or more of the
above items may be considered in executive session closed to the public, including but not limited
to consultation with attorney pursuant to Texas Government Code Section 551.071 arising out of
the attorney’s ethical duty to advise the city concerning legal issues arising from an agenda item.
Any decision held on such matter will be taken or conducted in open session following the
conclusion of the executive session.
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REGULAR SESSION of the CITY COUNCIL Agenda
Meeting Date: 05/05/2020
Page - 4
ADJOURNMENT
Persons with disabilities who plan to attend this meeting who may need auxiliary aids such as
interpreters for persons who are deaf or hearing impaired, readers or, large print are requested to
contact the City Secretary’s Office, at 972-624-3105 at least two (2) working days prior to the
meeting so that appropriate arrangements can be made.
CERTIFICATION
I hereby certify that above notice of meeting was posted outside the front door of City Hall by
5:00 p.m. on the ___ day of __________, 2017.
____________________________________
Tina Stewart, TRMC, City Secretary
4
Agenda Item No:1.5
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Proclamation
Agenda Section:
Subject:
Acknowledge Denton County's National Day of Prayer. (Council)
Suggested Action:
Attachments:
Denton County National Day of Prayer Letter.docx
5
Greetings!
May 7th marks the 69th Annual National Day of Prayer. As you well know, COVID19 has
immersed our nation in circumstances beyond our control, and we most likely will not be able to
conduct our observances as usual. Knowing we need God’s wisdom, strength, protection and
guidance more than ever, we will still observe this day, just not in the same way we have in the
past.
The theme for this year’s observance is “Pray God’s Glory Across the Earth,”very fitting for
such a time as this. Our prayer is “for the earth to be filled with the knowledge of the Lord as the
waters cover the sea.”This is a wake-up call for America as we recognize just how temporary
and fragile life is; the things on which we stake our security can vanish in an instant. However,
we are given the assurance in Hebrews 6:19 that in Christ Jesus “we have this hope as an anchor
for the soul, firm and secure.”
We have been in personal contact with the National Day of Prayer Task Force leaders in
Colorado Springs to seek their advice. They have cancelled the public national observance in
Washington, D.C. on May 7th with plans to live-stream, but details are very fluid at this point.
When information becomes available, we will send it to you. We encourage you to make this
information available to your constituents, family and friends. Although we may not be able to
assemble in groups, we can all be lifting our prayers as one voice to the throne of grace on that
day.
The Denton County event, which is usually held on the Denton County Courthouse-on-the-
Square, has been cancelled.However, we are putting together a special event which will be
available on our website the entire day on May 7th.
In Christ’s love,
Dorothy Smith, Coordinator
Cheryle Wright, Asst. Coordinator
Facebook: Denton County National Day of Prayer
Website: www.dentoncountyndp.com
Email: dentoncountyndp@gmail.com
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Agenda Item No:1.6
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Announcement
Agenda Section:
Subject:
Proclamation acknowledging May 10-16, 2020 as Police Week. (Council)
Suggested Action:
Attachments:
Police Week 2020 Proclamation.doc
7
MAYORAL PROCLAMATION
WHEREAS, there are approximately 900,000 law enforcement officers
serving in communities across the United States, including the dedicated members
of the The Colony Police Department;
WHEREAS, since the first recorded death in 1786, more than 21,000 law
enforcement officers in the United States have made the ultimate sacrifice and been
killed in the line of duty;
WHEREAS,the names of these dedicated public servants are engraved on
the walls of the National Law Enforcement Officers Memorial in Washington,
D.C.;
WHEREAS, 307 new names of fallen heroes are being added to the National
Law Enforcement Officers Memorial this spring, including 135 officers killed in
2020;
WHEREAS, the name of our own fallen police officer, Sergeant David
Fitzpatrick will be one of those names;
WHEREAS, the Virtual Candlelight Vigil is part of National Police Week,
which takes place this year on May 14th through the 20th;
WHEREAS, May 15th is designated as National Peace Officers Memorial
Day, in honor of all fallen officers and their families and U.S. flags should be flown
at half-staff;
NOW, THEREFORE, I, Joe McCourry, Mayor of The Colony, do hereby
proclaim May 10-16th, 2020 as Police Week in The Colony, and publicly salute the
service of law enforcement officers in our community and in communities across
the nation.
SIGNED AND SEALED this 5th day of May, 2020.
__________________________________
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
_____________________________
Tina Stewart, City Secretary
8
Agenda Item No:1.7
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Proclamation
Agenda Section:
Subject:
Proclamation: Motorcycle Safety and Awareness Month. (Council)
Suggested Action:
Prepare 3 proclamations for the following clubs just in case they show up:
Road Dogs Motorcycle Club
Dickweed Motorcycle Club
Six Skulls Motorcycle Club
Attachments:
Motorcyle Awareness Proclamation.doc
9
MAYORAL PROCLAMATION
WHEREAS,today’s society is finding more citizens involved in
motorcycling on the roads of our country; and
WHEREAS,motorcyclists are roughly unprotected and much
more likely to be injured or killed in a crash than other vehicle
drivers; and
WHEREAS,campaigns have helped inform riders and
motorists alike on motorcycle safety issues to reduce motorcycle
related risks, injuries, and most of all fatalities, through a
comprehensive approach to motorcycle safety; and
WHEREAS,it is the responsibility of all who put themselves
behind the wheel to become aware of motorcyclists, regarding them
with the same respect as any other vehicle traveling the highways of
this country; and it is the responsibility of riders and motorists alike
to obey all traffic laws and safety rules; and
WHEREAS,urging all of our community to become aware of
the inherent danger involved in operating a motorcycle, and for
riders and motorists alike to give each other the mutual respect they
deserve.
NOW, THEREFORE, I, Joe McCourry, Mayor of The
Colony, Texas, do hereby proclaim the month of May, 2020 as:
MOTORCYCLE SAFETY and AWARENESS MONTH
SIGNED and SEALED this 5
th day of May, 2020.
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
Tina Stewart, City Secretary
10
Agenda Item No:1.8
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Eve Morgan
Submitting Department: Parks & Recreation
Item Type: Proclamation
Agenda Section:
Subject:
Proclamation: National Bike Month. (Council)
Suggested Action:
Due to Covid-19, Bike to Work Week has been rescheduled for September 21-27, 2020 and Bike to Work Day
has been rescheduled to September 22, 2020. The League of American Bicyclists are still promoting May as
National Bike Month with the branding, "May is STILL Bike Month" and are encouraging people to bike "There" as
appropriate while adhering to proper social distancing standards.
Attachments:
2020 National_Bike_Month.doc
11
MAYORAL PROCLAMATION
WHEREAS,the bicycle is a viable and environmentally sound form of transportation
and an excellent form of recreation and fitness; and
WHEREAS,many citizens of The Colony will experience the joys of bicycling through
educational programs, club and charity rides, commuting and trail events, safety promotion, or
just getting out and going for a ride; and
WHEREAS,The Colony encourages bicycling activities on its bike trails along
thoroughfares, and at Stewart Creek Park, the Shoreline Trail, Hidden Cove Park, The Tribute
Nature Trail, the Park Loop Trail and many other locations that attract cyclists from around the
region and nation; and
WHEREAS,these bicycling activities and attractions have a positive impact on The
Colony’s economy and tourism industry, and stimulate economic development by making the
city attractive to businesses and citizens who enjoy the out of doors and healthy lifestyles; and
WHEREAS,the education of bicyclists and motorists, creating bicycle-friendly
communities has been shown to improve citizens' health, well-being, and quality of life, boosts
community spirit, improves traffic safety, and reduces pollution and congestion; and
WHEREAS,May has been declared National Bike Month for each of the last 64 years,
and is so again in 2020; and
WHEREAS,the League of American Bicyclists, BikeTexas, bicycle clubs, schools,
parks and recreation departments, police departments, hospitals, companies and civic groups
throughout the state and our community will be promoting bicycling as a leisure and fitness
activity, as well as an environmentally-friendly alternative to the automobile during the month
of May; and
WHEREAS,Biking has become an even more important and needed method of family
recreation during the recent pandemic, allowing for exercise and social distancing when other
opportunities didn’t exist; and
WHEREAS,The Colony City Council recognizes the significance and value of bicycle
activities and the role they play in enhancing the overall quality of life of our community,
NOW, THEREFORE,I, Joe McCourry, Mayor of the City of The Colony hereby
recognize the month of May as National Bike Month.
SIGNED AND SEALED this 5th day of May, 2020.
___________________________
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
___________________________
Tina Stewart, City Secretary
12
Agenda Item No:3.1
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: David Swain
Submitting Department: Parks & Recreation
Item Type: Discussion
Agenda Section:
Subject:
Discuss and provide direction to staff regarding the phased opening of city facilities and the upcoming Fourth of
July event. (Powell)
Suggested Action:
Attachments:
13
Agenda Item No:3.2
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Miscellaneous
Agenda Section:
Subject:
Council to provide direction to staff regarding future agenda items. (Council)
Suggested Action:
Attachments:
14
Agenda Item No:4.1
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Minutes
Agenda Section:
Subject:
Consider approving City Council Regular Session meeting minutes for April 21, 2020. (Stewart)
Suggested Action:
Attachments:
April 21, 2020 DRAFT Minutes.docx
15
1 These items are strictly public service announcements. Expressions of thanks, congratulations or condolences; information
regarding holiday schedules; honorary recognition of city officials, employees or other citizens; reminders about upcoming
events sponsored by the City or other entity that are scheduled to be attended by a city official or city employee. No action
will be taken and no direction will be given regarding these items.
MINUTES OF THE CITY COUNCIL REGULAR SESSION
HELD ON
APRIL 21, 2020
The Regular Session of the City Council of the City of The Colony, Texas, was called to order
at 6:30 p.m. on the 21
st day of April, 2020, at City Hall, 6800 Main Street, The Colony, Texas,
with the following roll call:
Joe McCourry, Mayor
Kirk Mikulec, Councilmember
Richard Boyer, Deputy Mayor Pro Tem
Brian Wade, Councilmember
David Terre, Mayor Pro Tem
Perry Schrag, Councilmember
Joel Marks, Councilmember
Present
Present
Present
Present
Present
Present
Present
And with 7 council members present a quorum was established and the following items were
addressed:
1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS
1.1 Call to Order
Mayor McCourry called the meeting to order at 6:30 p.m.
1.2 Invocation
Mayor Pro Tem David Terre delivered the invocation.
1.3 Pledge of Allegiance to the United States Flag
The Pledge of Allegiance to the United States Flag was recited.
1.4 Salute to the Texas Flag
Salute to the Texas Flag was recited.
1.5 Proclamation: Child Abuse Awareness Month
Mayor McCourry proclaimed the month of April as "Child Abuse Awareness
Month".
1.6 Items of Community Interest
Mayor provided statistics related to the corona virus pandemic for Denton County
and the state of Texas. Mayor stated that as of April 24, 2020, retail shops will be
able to reopen under strict conditions specified in Governor Greg Abbott's
executive order. Mayor acknowledged the citizens in our community for following
guidelines in order to reopen the economy and support local businesses. Mayor
specifically thanked individuals in the community who provided personal protective
equipment not only for hospitals or first responders but for the neighbors and
friends throughout the community.
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City Council – Regular Meeting Agenda
April 21, 2020
Page| 2
Councilman Terre recognized Denton County Judge Andy Eads for announcing the
opening of the three golf courses here in The Colony.
2.0 CITIZEN INPUT
D. Roger Servey, 6525 Westway Drive, submitted online public comment concerning future
agenda item for the May 5, 2020 meeting. Missing sidewalk segments at Stewart's
Peninsula, Pecan Crossing and Stewart Boulevard. Presented on behalf of the 700+
homeowners in the community.
3.0 WORK SESSION
3.1 Council to provide direction to staff regarding future agenda items.
None
4.0 CONSENT AGENDA
Motion to approve all items from the Consent Agenda with the exception of Agenda Item No.
4.4- Mikulec; second by Boyer, motion carried with all ayes.
4.1 Consider approving City Council Regular Session meeting minutes for April 7,
2020.
4.2 Consider approving Council expenditures for the month of February and March
2020.
4.3 Consider approving a resolution authorizing the City Manager to deny Oncor
Electric Delivery Company LLC's requested rate change.
RESOLUTION NO. 2020-019
***ITEM MOVED FOR SEPARATE CONSIDERATION***
4.4 Discussion and approve actions to include adjustments on extension of disaster
declaration due to the Coronavirus (COVID-19) as authorized by Section 418.108
of the Texas Government Code.
Council provided discussion on this item.
Motion to approve adjustments on the extension of the disaster declaration as written and will
follow any subsequent issued orders by Denton County- Schrag; second by Mikulec, motion
carried with all ayes.
ORDINANCE NO. 2020-2394
17
City Council – Regular Meeting Agenda
April 21, 2020
Page| 3
5.0 REGULAR AGENDA ITEMS
5.1 Discuss and consider making a nomination by resolution for a candidate to serve
on the Denco Area 9-1-1 District Board of Managers for a two-year term beginning
October 1, 2020.
Mayor McCourry nominated Councilman David Terre as a candidate to serve on
the Denco 9-1-1 District Board of Managers.
Motion to approve- Schrag; second by Marks, motion carried with all ayes with the exception
of Councilman Boyer abstaining due to being disconnected from the meeting.
RESOLUTION NO. 2020 – 020
Executive Session was convened at 6:55 p.m.
6.0 EXECUTIVE SESSION
6.1 Council shall convene into a closed executive session pursuant to Section 551.072
of the Texas Government Code to deliberate the purchase, exchange, lease, or value
of real property.
Regular Session was reconvened at 7:29 p.m.
7.0 EXECUTIVE SESSION ACTION
7.1 Any action as a result of executive session regarding the purchase, exchange, lease,
or value of real property.
Motion to approve the revised real estate sales agreement according to the terms discussed in
Executive Session- Boyer; second by Mikulec, motion carried with all ayes.
ADJOURNMENT
With there being no further business to discuss the meeting was adjourned at 7:30 p.m.
APPROVED:
________________________________
Joe McCourry, Mayor
City of The Colony
ATTEST:
_______________________________
Tina Stewart, TRMC
City Secretary
18
Agenda Item No:4.2
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: David Cranford
Submitting Department: Finance
Item Type: Ordinance
Agenda Section:
Subject:
Consider and act on an ordinance authorizing the issuance of the City's Combination Tax and Limited Surplus
Revenue Certificates of Obligation, Series 2020, levying a tax and pledging certain surplus revenue of the City's
water and sewer system for payment of certificates, and approving the execution of agreements in connection
therewith. (Cranford)
Suggested Action:
Bonds, not to exceed $15.5 million, will be sold to support Phase II of the Waste Water Treatment Plant ($11.4
million) and street reconstruction ($5.1 million). Both projects were approved in the 2019-2020 CIP budget.
Attachments:
Ord. 2020-xxxx Series 2020 Bonds.docx
19
CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2020 -______
AN ORDINANCE authorizing the issuance of “CITY OF THE
COLONY, TEXAS, COMBINATION TAX AND LIMITED SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 2020”;
providing for the payment of said certificates of obligation by the
levy of an ad valorem tax upon all taxable property within the City
and a limited surplus pledge of the City’s waterworks and sewer
system; specifying the terms and conditions of such certificates of
obligation; resolving other matters incident and relating to the
issuance, payment, security, sale, and delivery of said certificates
of obligation, including the approval and execution of a Paying
Agent/Registrar Agreement and a Purchase Contract, and the
approval and distribution of a Preliminary Official Statement and an
Official Statement; and providing an effective date.
WHEREAS, notice of the City Council’s intention to issue certificates of obligation in the
maximum principal amount of $15,250,000 for the purpose of paying contractual obligations to be
incurred for (i) constructing, improving and renovating streets, alleys, culverts and bridges,
including drainage and erosion control, landscaping, screening walls, curbs, gutters, sidewalks,
lighting, signage and traffic signalization incidental thereto and the acquisition of land and rights-
of-way therefor, (ii) constructing waterworks and sewer system improvements, and
(iii) professional services rendered in connection therewith, has been (a) duly published in the
Denton Record-Chronicle, a newspaper of general circulation in the City of The Colony, Texas on
March 13, 2020, and March 20, 2020, the date the first publication of such notice being not less
than forty-six (46) days prior to the tentative date stated therein for the passage of the ordinance
authorizing the issuance of such certificates and (b) duly published continuously on the City’s
website for at least forty-five (45) days before the tentative date stated therein for the passage of
the ordinance authorizing the issuance of such certificates; and
WHEREAS, no petition protesting the issuance of the certificates of obligation described
in the aforesaid notice, signed by at least 5% of the qualified electors of the City, has been
presented to or filed with the City Secretary on or prior to the date of the passage of this
Ordinance; and
WHEREAS, the City Council hereby finds and determines that $__________ principal
amount of the certificates of obligation described in such notice should be authorized at this time;
now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS:
Section 1.Authorization - Designation - Principal Amount - Purpose. Certificates
of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal
amount of $______________, to be designated and bear the title “CITY OF THE COLONY,
TEXAS, COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2020” (hereinafter referred to as the “Certificates”), for the purpose of
paying contractual obligations to be incurred for (i) constructing, improving and renovating streets,
alleys, culverts and bridges, including drainage and erosion control, landscaping, screening walls,
curbs, gutters, sidewalks, lighting, signage and traffic signalization incidental thereto and the
20
99514088.4/10011110052
acquisition of land and rights-of-way therefor, (ii) constructing waterworks and sewer system
improvements, and (iii) professional services rendered in connection therewith, all in accordance
with the authority conferred by, and in conformity with, the Constitution and laws of the State of
Texas, including Texas Local Government Code, Subchapter C of Chapter 271, as amended.
Section 2.Fully Registered Obligations - Certificate Date - Authorized
Denominations - Stated Maturities - Interest Rates. The Certificates are issued as fully
registered obligations only, shall be dated May 1, 2020 (the “Certificate Date”), and shall be in
denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), and the
Certificates shall become due and payable on August 15 in each of the years and in principal
amounts (the “Stated Maturities”) and bear interest at the per annum rate(s) in accordance with
the following schedule:
Year of
Stated Maturity
Principal
Amount ($)
Interest
Rate (%)
The Certificates shall bear interest on the unpaid principal amounts from the date of the
initial delivery of the Certificates at the rate(s) per annum shown above (calculated on the basis
of a 360-day year consisting of twelve 30-day months) and shall be payable on February 15 and
August 15 in each year until maturity or prior redemption, commencing February 51, 2021.
Section 3.Terms of Payment - Paying Agent/Registrar. The principal of, premium,
if any, and the interest on the Certificates, due and payable by reason of maturity, redemption or
otherwise, shall be payable only to the registered owners or holders of the Certificates (hereinafter
called the “Holders”) appearing on the registration and transfer books maintained by the Paying
Agent/Registrar. Such payments shall be payable, without exchange or collection charges, to the
Holder 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.
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99514088.4/10011110053
The selection and appointment of U.S. Bank National Association, Dallas, Texas, to serve
as Paying Agent/Registrar for the Certificates is hereby approved and confirmed. Books and
records relating to the registration, payment, transfer and exchange of the Certificates (the
“Security Register”) shall at all times be kept and maintained on behalf of the City by the Paying
Agent/Registrar, as provided herein and in accordance with the terms and provisions of a “Paying
Agent/Registrar Agreement”, substantially in the form attached hereto 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 Certificates. The City covenants
to maintain and provide a Paying Agent/Registrar at all times until the Certificates are paid and
discharged; and, any successor Paying Agent/Registrar shall be a commercial bank, trust
company, financial institution, or other entity duly qualified and legally authorized to serve in such
capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the
Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice
thereof to be sent to each Holder by United States mail, first-class, postage prepaid; which notice
shall also give the address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Certificates, shall be payable at the Stated
Maturities or upon prior redemption thereof only upon presentation and surrender of the
Certificates to the Paying Agent/Registrar at its designated offices, initially in St. Paul, Minnesota,
or, with respect to a successor Paying Agent/Registrar, at the designated offices of such
successor (the “Designated Payment/Transfer Office”). Interest on the Certificates shall be paid
only to the Holders whose names appear in the Security Register at the close of business on the
Record Date (the last business day of the month next preceding the interest payment date) and
shall be paid by the Paying Agent/Registrar (i) by check sent by United States Mail, first-class,
postage prepaid, to the address of the registered owner recorded in the Security Register or (ii)
by such other method, acceptable to the Paying Agent/Registrar, requested by and at the risk and
expense of the Holder. If the date for the payment of the principal of or interest on the Certificates
shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where
the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized
by law or executive order to close, then the date for such payment shall be the next succeeding
day which is not such a Saturday, Sunday, legal holiday, or day when such 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 non-payment 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 fifteen (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
Registrar 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 maturing on or after August 15, 2030
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 August 15, 2029 or any date thereafter, at the redemption price
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of par plus accrued interest from the most recent interest payment date on which interest has
been paid or duly provided for to the date of redemption.
At least forty-five (45) days prior to an optional redemption date for the Certificates (unless
a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall
notify the Paying Agent/Registrar of the decision to redeem Certificates, the principal amount of
each Stated Maturity to be optionally redeemed, and the date of redemption.
(b) Selection of Certificates for Redemption. If less than all Outstanding Certificates
of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar
shall treat such Certificates as representing the number of Certificates Outstanding, which is
obtained by dividing the principal amount of such Certificates by $5,000, and shall select the
Certificates, or principal amount thereof, to be redeemed within such Stated Maturity by lot.
(c) Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Certificates, a notice of redemption shall be sent by United States Mail, first-class, postage
prepaid, in the name of the City and at the City’s expense, to each Holder of a Certificate to be
redeemed in whole or in part at the address of the Holder appearing on the Security Register at
the close of business on the business day next preceding the date of mailing such notice, and
any notice of redemption so mailed shall be conclusively presumed to have been duly given
irrespective of whether received by the Holder.
All notices of redemption shall: (i) specify the date of redemption for the Certificates,
(ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to
be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price,
(iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall
become due and payable on the redemption date specified, and the interest thereon, or on the
portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the
redemption date, and (v) specify that payment of the redemption price for the Certificates, or the
principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer
Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder.
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 from and after the specified redemption date; provided moneys sufficient
for the payment of such Certificate (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.
(d) Conditional Notice of Redemption. 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 may, at the
option of the City, be 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 or such prerequisites
are not satisfied, 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 was given, to the effect that the Certificates have not been redeemed.
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Section 5.Registration - Transfer - Exchange of Certificates - Predecessor
Certificates. A Security Register relating to the registration, payment, and transfer or exchange
of the Certificates shall at all times be kept and maintained by the City at the Designated
Payment/Transfer Office of the Paying Agent/Registrar, as provided herein and in accordance
with the provisions of an agreement with the Paying Agent/Registrar and such rules and
regulations as the Paying Agent/Registrar and the City may prescribe. The Paying
Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address
of each Holder of the Certificates issued under and pursuant to the provisions of this Ordinance.
Any Certificate may, in accordance with its terms and the terms hereof, be transferred or
exchanged for Certificates of other authorized denominations by the Holder, in person or by his
duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar at the
Designated Payment/Transfer Office 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 the surrender for transfer of any Certificate (other than the Initial Certificate(s)
authorized in Section 8 hereof) at the Designated Payment/Transfer Office of the Paying
Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Certificates, executed on behalf of, and
furnished by, the City, of authorized denominations and having the same Stated Maturity and of
a like aggregate principal amount as the Certificate or Certificates surrendered for transfer.
At the option of the Holder, Certificates (other than the Initial Certificate(s) authorized in
Section 8 hereof) may be exchanged for other Certificates of authorized denominations and
having the same Stated Maturity, bearing the same rate of interest, and of like aggregate principal
amount as the Certificates surrendered for exchange upon the surrender of the Certificates to be
exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever
any Certificates are so surrendered for exchange, the Paying Agent/Registrar shall register and
deliver new Certificates, executed on behalf of, and furnished by the City, to the Holder requesting
the exchange.
All Certificates issued upon any transfer or exchange of Certificates shall be delivered to
the Holders at the Designated Payment/Transfer Office of the Paying Agent/Registrar, or sent by
United States mail, first-class, postage prepaid, to the Holder and, upon the registration and
delivery thereof, the same shall be valid obligations of the City, evidencing the same obligation to
pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered in
such transfer or exchange.
All transfers or exchanges of Certificates pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or
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 under this Section are hereby
defined to be “Predecessor Certificates,” evidencing all or a portion, as the case may be, of the
same obligation to pay evidenced by the new Certificate or Certificates registered and delivered
in the exchange or transfer therefor. Additionally, the term “Predecessor Certificates” shall include
any Certificate registered and delivered pursuant to Section 23 hereof in lieu of a mutilated, lost,
destroyed, or stolen Certificate which shall be deemed to evidence the same obligation as the
mutilated, lost, destroyed, or stolen Certificate.
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Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer or
exchange any Certificate called for redemption, in whole or in part, within forty-five (45) days of
the date fixed for the redemption of such Certificate; provided, however, such limitation on
transferability shall not be applicable to an exchange by the Holder of the unredeemed balance
of a Certificate called for redemption in part.
Section 6.Book-Entry-Only Transfers and Transactions. Notwithstanding the
provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange
of the Certificates, the City hereby approves and authorizes the use of “Book-Entry-Only”
securities clearance, settlement and transfer system provided by The Depository Trust Company
(“DTC”), a limited purpose trust company organized under the laws of the State of New York, in
accordance with the operational arrangements referenced in the Blanket Issuer Letter of
Representations by and between the City and DTC (the “Depository Agreement”).
Pursuant to the Depository Agreement and the rules of DTC, the Certificates shall be
deposited with DTC who shall hold said Certificates for its participants (the “DTC Participants”).
While the Certificates are held by DTC under the Depository Agreement, the Holder of the
Certificates on the Security Register for all purposes, including payment and notices, shall be
Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or
owner of each Certificate (the “Beneficial Owners”) being recorded in the records of DTC and
DTC Participants.
In the event DTC determines to discontinue serving as securities depository for the
Certificates or otherwise ceases to provide book-entry clearance and settlement of securities
transactions in general or the City decides to discontinue the use of the system of book-entry-only
transfers through DTC, the City covenants and agrees with the Holders of the Certificates to cause
Certificates to be printed in definitive form and issued and delivered to DTC Participants and
Beneficial Owners, as the case may be. Thereafter, the Certificates in definitive form shall be
assigned, transferred and exchanged on the Security Register maintained by the Paying
Agent/Registrar and payment of such Certificates shall be made in accordance with the provisions
of Sections 3, 4 and 5 hereof.
Section 7.Execution - Registration. The Certificates shall be executed on behalf of
the City by the Mayor or the Mayor Pro Tem under its seal reproduced or impressed thereon and
countersigned by the City Secretary. The signatures of said officers and the seal of the City on
the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile
signatures of said individuals who are or were the proper officers of the City on the Certificate
Date shall be deemed to be duly executed on behalf of the City, notwithstanding that one or more
of such individuals shall cease to hold such offices 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 Texas Government 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 as set forth in the form provided in Section 9C, manually executed by
the Comptroller of Public Accounts of the State of Texas or his duly authorized agent, or a
certificate of registration substantially as set forth in the form provided in Section 9D, manually
executed by an authorized officer, employee, or representative of the Paying Agent/Registrar,
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and either such certificate duly signed upon any Certificate shall be conclusive evidence, and the
only evidence, that such Certificate has been duly certified, registered, and delivered.
Section 8.Initial Certificate(s). The Certificates herein authorized shall be initially
issued either (i) as a single fully registered certificate in the total principal amount of this series
with principal installments to become due and payable as provided in Section 2 and numbered T-
1 or, alternatively, (ii) as multiple fully registered certificates, being one certificate for each year of
maturity in the applicable principal amount and denomination and to be numbered consecutively
from T-1 and upward (hereinafter called the “Initial Certificate(s)”) and, in either case, the Initial
Certificate(s) shall be registered in the name of the initial purchaser(s) or the designee thereof.
The Initial Certificate(s) shall be the Certificate(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 after the
delivery of the Initial Certificate(s), the Paying Agent/Registrar, pursuant to written instructions
from the initial purchaser(s), or the designee thereof, shall cancel the Initial Certificate(s) delivered
hereunder and exchange therefor definitive Certificates of authorized denominations, Stated
Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the
Holders named at the addresses identified therefor; all pursuant to and in accordance with such
written instructions from the initial purchaser(s), or the designee thereof, and such other
information and documentation as the Paying Agent/Registrar may reasonably require.
Section 9.Forms.
A.Forms Generally. The Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Certificate of Registration of the Paying
Agent/Registrar, and the form of Assignment to be printed on each of the Certificates, shall be
substantially in the forms set forth in this Section with such appropriate insertions, omissions,
substitutions, and other variations as are permitted or required by this Ordinance and may have
such letters, numbers, or other marks of identification (including identifying numbers and letters
of the Committee on Uniform Securities Identification Procedures of the American Bankers
Association) and such legends and endorsements (including insurance legends in the event the
Certificates, or any maturities thereof, are purchased with insurance and any reproduction of an
opinion of counsel) thereon as may, consistently herewith, be established by the City or
determined by the officers executing such Certificates as evidenced by their execution thereof.
Any portion of the text of any Certificate may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Certificate.
The definitive Certificates and the Initial Certificate(s) shall be printed, lithographed,
engraved, typewritten, photocopied, or otherwise reproduced in any other similar manner, all as
determined by the officers executing such Certificates as evidenced by their execution thereof.
The City may provide (i) for issuance of one fully registered Certificate for the Stated
Maturity in the aggregate principal amount of such Stated Maturity and (ii) for registration of such
Certificate in the name of a securities depository, or the nominee thereof. While any Certificate
is registered in the name of a securities depository or its nominee, references herein and in the
Certificates to the holder or owner of such Certificate shall mean the securities depository or its
nominee and shall not mean any other person.
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B.Form of Definitive Certificates.
REGISTERED REGISTERED
NO. ____$__________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND LIMITED SURPLUS REVENUE
CERTIFICATE OF OBLIGATION
SERIES 2020
Certificate Date:Interest Rate:Stated Maturity:CUSIP NO.
May 1, 2020 _________%August 15, 20___________
Registered Owner:
Principal Amount:DOLLARS
The City of The Colony (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the County of Denton, 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 "Registered Owner"), on the Stated Maturity date specified above,
the Principal Amount stated above (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 Certificate is prior to the initial
interest payment date in which case it shall bear interest from the date of the initial delivery of the
Certificates) at the per annum rate of interest specified above computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on February 15 and August 15 in
each year, commencing February 15, 2021, until maturity or prior redemption. Principal of this
Certificate shall be payable at its Stated Maturity or on a redemption date to the Registered Owner
hereof upon presentation and surrender at the designated offices of the Paying Agent/Registrar
executing the registration certificate appearing hereon, or its successor (the “Designated
Payment/Transfer Office”). Interest shall be payable to the registered owner of this Certificate (or
of one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced)
whose name appears on the “Security Register” maintained by the Paying Agent/Registrar at the
close of business on the “Record Date”, which is the last business day of the month next preceding
each interest payment date and interest shall be paid by the Paying Agent/Registrar by check
sent by United States mail, first-class, postage prepaid, to the address of the registered owner,
recorded in the Security Register or by such other method acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments
of principal of, premium, if any, and interest on this Certificate shall be 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. 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 Payment/Transfer Office of the Paying Agent/Registrar is located are authorized
by law or executive order to close, then the date for such payment shall be the next succeeding
day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions
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99514088.4/10011110059
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.
This Certificate is one of the series specified in its title issued in the aggregate principal
amount of $____________ (herein referred to as the “Certificates”) for the purpose of paying
contractual obligations to be incurred for (i) constructing, improving and renovating streets, alleys,
culverts and bridges, including drainage and erosion control, landscaping, screening walls, curbs,
gutters, sidewalks, lighting, signage and traffic signalization incidental thereto and the acquisition
of land and rights-of-way therefor, (ii) constructing waterworks and sewer system improvements,
and (iii) professional services rendered in connection therewith, pursuant to authority conferred
by and in conformity with the Constitution and laws of the State of Texas, particularly Texas Local
Government Code, Subchapter C of Chapter 271, as amended, and pursuant to an ordinance
adopted by the City Council of the City (hereinafter referred to as the “Ordinance”).
The Certificates maturing on and after August 15, 2030, may be redeemed prior to their
Stated 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
August 15, 2029, or on any date thereafter, at the redemption price of par plus 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 sent by United States Mail, first-class, postage prepaid, to the registered
owners of each Certificate to be redeemed at the address shown on the Security Register and
subject to the terms and provisions relating thereto contained in the Ordinance. If a Certificate
(or any portion of its principal sum) shall have been duly called for redemption and notice of such
redemption duly given, then upon the redemption date such Certificate (or the portion of its
principal sum to be redeemed) shall become due and payable, and interest thereon shall cease
to accrue from and after the redemption date; provided, 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.
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 may, at the option of the City, be 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 or such prerequisites are not satisfied, 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 was given, to
the effect that the Certificates have not been redeemed.
In the event a portion of the principal amount of a Certificate is to be redeemed and the
registered owner is someone other than Cede & Co., payment of the redemption price of such
principal amount shall be made to the registered owner only upon presentation and surrender of
such Certificate to the Designated Payment/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 Agent/Registrar shall not be required to transfer such Certificate
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to an assignee of the registered owner within forty-five (45) days of the redemption date; provided,
however, such limitation on transferability shall not be applicable to an exchange by the registered
owner of the unredeemed balance of a Certificate redeemed in part.
The Certificates are payable from the proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property in the City and are additionally payable
from and secured by a lien on and limited pledge of the Surplus Revenues (as described in the
Ordinance) of the City’s waterworks and sewer system (the “System”), such lien and pledge,
however, being junior and subordinate to the lien on and pledge of the Net Revenues (as defined
in the Ordinance) of the System securing the payment of the Prior Lien Obligations (as defined in
the Ordinance) currently outstanding or as may hereafter be issued by the City. In the Ordinance,
the City reserves and retains the right to issue Prior Lien Obligations without limitation as to
principal amount but subject to any applicable terms, conditions or restrictions under law or
otherwise as well as the right to issue additional obligations payable from the same sources as
the Certificates and equally and ratably secured by a parity lien on and pledge of the Surplus
Revenues of the System.
Reference is hereby made to the Ordinance, a copy of which is on file in the Designated
Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the
registered owner by the acceptance hereof hereby assents, for definitions of terms; the
description of and the nature and extent of the tax levied for the payment of the Certificates; the
properties constituting the System; the Net Revenues pledged to the payment of the principal of
and interest on the Certificates; the nature, extent, and manner of enforcement of the pledge; the
terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon
which the Ordinance may be amended or supplemented with or without the consent of the
registered owners; the rights, duties, and obligations of the City and the Paying Agent/Registrar;
the terms and provisions upon which the tax levy and the liens, pledges, charges, and covenants
made therein may be discharged at or prior to the maturity of this Certificate, and this Certificate
deemed to be no longer Outstanding; and, for the other terms and provisions thereof. Capitalized
terms used herein have the meanings assigned in the Ordinance.
This Certificate, subject to certain limitations contained in the Ordinance, may be
transferred on the Security Register only upon its presentation and surrender at 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 Certificates of
the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of
the same aggregate principal amount will be issued by the Paying Agent/Registrar to the
designated transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, may treat the registered
owner hereof whose name appears on the Security Register (i) on the Record Date as the owner
entitled to the payment of the interest hereon, (ii) on the date of surrender of this Certificate as
the owner entitled to the payment of the 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,
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 a non-payment 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
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scheduled payment date of the past due interest (which shall be fifteen (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 registered owner 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 covenanted that the City is a duly organized
and legally existing municipal corporation under and by virtue of the Constitution and laws of the
State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts,
conditions, and things required to exist and be done precedent to and in the issuance of the
Certificates to render the same lawful and valid obligations of the City have been properly done,
have happened, and have been performed in regular and due time, form, and manner as required
by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not
exceed any constitutional or statutory limitation; and that due provision has been made for the
payment of the principal of and interest on the Certificates by the levy of a tax and a limited pledge
of and lien on the Surplus Revenues of the System as stated above. In case any provision in this
Certificate or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality,
and enforceability of the remaining provisions and applications shall not in any way be affected
or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be
construed in accordance with and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has caused this Certificate to be
duly executed under the official seal of the City as of the Certificate Date.
CITY OF THE COLONY, TEXAS
__________________________________
[Mayor]
COUNTERSIGNED:
___________________________________
City Secretary
(City Seal)
C.Form of Registration Certificate of Comptroller of Public Accounts to Appear
on Initial Certificate(s) Only.
REGISTRATION CERTIFICATE OF
THE COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER §
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99514088.4/100111100512
§
OF PUBLIC ACCOUNTS §REGISTER NO.
§
THE STATE OF TEXAS §
I HEREBY CERTIFY that this Certificate has been examined, certified as to validity,
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ____________________________.
_________________________________
Comptroller of Public Accounts
of the State of Texas
(Seal)
D.Form of Registration Certificate of Paying Agent/Registrar to Appear on
Definitive Certificates Only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Certificate has been duly issued and registered under the provisions of the within -
mentioned Ordinance; the certificate or certificates of the above entitled and designated series
originally delivered having been approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts, as shown by the records of the Paying
Agent/Registrar.
The office of the Paying Agent/Registrar in St. Paul, Minnesota, is the Designated
Payment/Transfer Office for this Certificate.
U.S. BANK NATIONAL ASSOCIATION,
as Paying Agent/Registrar
Registered this date:
By:
Authorized Signature
E.Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print
or typewrite name, address, and zip code of transferee:)
(Social Security or other identifying number:
)
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________________________________________ attorney to transfer the within Certificate
on the books kept for registration thereof, with full power of substitution in the premises.
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99514088.4/100111100513
DATED:
Signature guaranteed:
NOTICE: The signature on this assignment
must correspond with the name of the
registered owner as it appears on the face
of the within Certificate in every particular.
F.The Initial Certificate(s) shall be in the form set forth in paragraph (B) of this
Section, except that the form of a single, fully-registered Certificate shall be modified as
follows:
Heading and first paragraph shall be modified as follows:
REGISTERED REGISTERED
NO. T-1 $___________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND LIMITED SURPLUS REVENUE
CERTIFICATE OF OBLIGATION
SERIES 2020
Certificate Date: May 1, 2020
Registered Owner: SAMCO CAPITAL MARKETS, INC.
Principal Amount: _______________________ DOLLARS
The City of The Colony (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the County of Denton, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the registered owner named above, or the
registered assigns thereof (the "Registered Owner"), the Principal Amount hereinabove stated,
on August 15 in each of the years and in principal installments in accordance with the following
schedule:
PRINCIPAL INTEREST
YEAR INSTALLMENTS ($)RATE (%)
(Information to be inserted from 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 date of the initial delivery of the
Certificates at the per annum rates of interest specified above computed on the basis of a 360-
day year of twelve 30-day months; such interest being payable on February 15 and August 15 in
each year, commencing February 15, 2021, until maturity or prior redemption. Principal
installments of this Certificate are payable on the Stated Maturity dates or on a redemption date
to the registered owner hereof by U.S. Bank National Association, Dallas, Texas (the “Paying
Agent/Registrar”), upon its presentation and surrender at its designated offices, initially in St. Paul,
Minnesota, or, with respect to a successor paying agent/registrar, at the designated office of such
successor (the “Designated Payment/Transfer Office”). Interest shall be payable to the registered
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owner of this Certificate whose name appears on the “Security Register” maintained by the Paying
Agent/Registrar at the close of business on the “Record Date”, which is the last business day of
the month next preceding the interest payment date hereof and interest shall be paid by the
Paying Agent/Registrar by check sent by United States mail, first-class, postage prepaid, to the
address of the registered owner recorded in the Security Register or by such other method,
acceptable to the Paying Agent/Registrar, requested by and at the risk and expense of the
registered owner. All payments of principal of, premium, if any, and interest on this Certificate
shall be 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. 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 Payment/Transfer Office of the Paying
Agent/Registrar is located are authorized by law or executive order to close, then the date for
such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day when such 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.
Section 10. Definitions. For purposes of this Ordinance and for clarity with respect to
the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of
Surplus Revenues therefor, the following definitions are provided:
(a) The term “Additional Obligations” shall mean tax and revenue obligations hereafter
issued which by their terms are payable from ad valorem taxes and additionally payable from and
secured by a lien on and pledge of the Surplus Revenues of the System of equal rank and dignity
with the lien and pledge securing the payment of the Certificates.
(b) The term “Certificates” shall mean the $____________ “City of The Colony, Texas,
Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2020” authorized
by this Ordinance.
(c) The term “Certificate Account” shall mean the special account created and
established under the provisions of Section 11 of this Ordinance.
(d) The term “Collection Date” shall mean, when reference is being made to the levy
and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year
by the City become delinquent.
(e) The term “Fiscal Year” shall mean the twelve month operating period ending on
September 30th of each year unless otherwise designated by the City.
(f) The term “Government Securities” shall mean (i) direct noncallable obligations of
the United States of America, including obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an
agency or instrumentality of the United States, including obligations unconditionally guaranteed
or insured by the agency or instrumentality and, on the date of their acquisition or purchase by
the City, are rated as to investment quality by a nationally recognized investment rating firm not
less than AAA or its equivalent, (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 and (iv) any other then
authorized securities or obligations that may be used to defease obligations such as the
Certificates under the then applicable laws of the State of Texas.
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(g) The term “Net Revenues” shall mean all income, revenues and receipts of every
nature derived from and received by virtue of the operation of the System (including interest
income and earnings received from the investment of moneys in the special funds or accounts
created by this ordinance or ordinances authorizing the issuance of additional bonds), after
deducting and paying, and making provision for the payment of, current expenses of maintenance
and operation thereof, including all salaries, labor, materials, repairs and extensions necessary
to render efficient service; provided, however, that only such expenses for 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 Net Revenues of the System shall be deducted in determining “Net
Revenues”. Contractual payments for the purchase of water or the treatment of sewage shall be
maintenance and operating expenses of the System to the extent provided in the contract incurred
therefor and as may be authorized by statute. Depreciation shall never be considered as an
expense of operation and maintenance.
(h) The term “Outstanding” when used in this Ordinance with respect to Certificates
means, as of the date of determination, all Certificates theretofore issued and delivered under this
Ordinance, except:
(1) those Certificates theretofore canceled by the Paying Agent/Registrar or
delivered to the Paying Agent/Registrar for cancellation;
(2) those Certificates for which payment has been duly provided by the City
in accordance with the provisions of Section 25 hereof by the irrevocable deposit with the
Paying Agent/Registrar, or an authorized escrow agent, of money or Government
Securities, or both, in the amount necessary to fully pay the principal of, premium, if any,
and interest thereon to maturity; and
(3) those Certificates that have been mutilated, destroyed, lost, or stolen and
for which (i) replacement Certificates have been registered and delivered in lieu thereof or
(ii) have been paid, all as provided in Section 23 hereof.
(i) Reserved.
(j) The term “Prior Lien Obligations” shall mean all bonds or other obligations now
outstanding and hereafter issued that are payable from and secured by a lien on and pledge of
all or any part of the Net Revenues of the System, including but not limited to, (i) all bonds
hereafter issued to refund any part of the aforesaid bonds or other obligations listed in this
definition if the same are made payable from and secured by a lien on and pledge of the Net
Revenues of the System, and (ii) any obligations hereafter issued on a parity (insofar as the
revenues of the System are concerned) with such Prior Lien Obligations or refunding bonds
issued to refund such obligations if the same are made payable from and secured by a lien on
and pledge of the Net Revenues of the System.
(k) The term “Surplus Revenues” shall mean available Net Revenues of the System
remaining after the payment of all debt service, reserve and other requirements in connection with
the City’s revenue bonds or other obligations, now or hereafter outstanding, including but not
limited to the Prior Lien Obligations, which are payable from all or any part of such Net Revenues.
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(l) The term “System” shall mean the City’s existing waterworks and sewer system,
including all properties (real, personal or mixed and tangible or intangible) owned, operated,
maintained and vested in the City for the supply, treatment and distribution of treated water for
domestic, commercial, industrial and other uses, and the collection and treatment of water carried
wastes, and future additions, extensions, replacements and improvements thereto.
Section 11. Certificate Account. For the purpose of paying the interest on and to
provide a sinking fund for the payment and retirement of the Certificates, there shall be and is
hereby created a special fund or account to be designated “SPECIAL 2020 COMBINATION TAX
AND LIMITED SURPLUS REVENUE CERTIFICATE OF OBLIGATION ACCOUNT” (the
“Certificate Account”), which fund or account shall be maintained on the records of the City and
deposited in a special fund maintained at an official depository of the City’s funds, and moneys
deposited in said fund or account shall be used for no other purpose. The Mayor, Mayor Pro
Tem, City Manager, Director of Finance and City Secretary, any one or more of said officials of
the City, are hereby authorized and directed to make withdrawals from said fund or account
sufficient to pay the principal of and interest on the Certificates as the same become due and
payable, and, shall cause to be transferred to the Paying Agent/Registrar from moneys on deposit
in the Certificate Account (on or prior to a principal and/or interest payment date) an amount
sufficient to pay the amount of principal and/or interest falling due on the Certificates.
Pending the transfer of funds to the Paying Agent/Registrar, money in the Certificate
Account may, at the option of the City, invested in investments authorized by the Public Funds
Investment Act, Texas Government Code, Chapter 2256, as amended, and the City’s investment
policy; provided that all such deposits and investments shall be made in such a manner that the
money required to be expended from said Certificate Account will be available at the proper time
or times. All interest and income derived from deposits and investments in the Certificate Account
shall be credited to, and any losses debited to, such account. All investments in the Certificate
Account shall be sold promptly when necessary to prevent any default in connection with the
Certificates.
Section 12. Tax Levy. 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, within the limitations prescribed by law, for the current year
and each succeeding year thereafter while said Certificates or any interest thereon shall remain
Outstanding, a sufficient tax on each one hundred dollars’ valuation of taxable property in said
City, adequate to pay such Debt Service Requirements, full allowance being made for
delinquencies and costs of collection; said tax shall be assessed and collected each year and
applied to the payment of the Debt Service Requirements, and the same shall not be diverted to
any other purpose. The taxes so levied and collected shall be paid into the Certificate Account.
The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully
sufficient to pay the said Debt Service Requirements, it having been determined that the existing
and available taxing authority of the City for such purpose is adequate to permit a legally sufficient
tax in consideration of all other outstanding indebtedness.
The amount of taxes to be provided annually for the payment of the principal of and interest
on the Certificates shall be determined and accomplished in the following manner:
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:
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(1) The amount on deposit in the Certificate Account after (a) deducting
therefrom the total amount of Debt Service Requirements to become due on Certificates
prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto
the amount of the Net Revenues of the System appropriated and allocated to pay such
Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be
levied.
(2) The amount of Surplus Revenues and any other lawfully available revenues
which are appropriated and to be set aside during such fiscal year for the payment of the
Debt Service Requirements on the Certificates between the Collection Date for the taxes
then to be levied and the Collection Date for the taxes to be levied during the next
succeeding fiscal 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.
The amount of taxes to be levied annually each year to pay the Debt Service
Requirements on the Certificates shall be the amount established in paragraph (3) above less the
sum total of the amounts established in paragraphs (1) and (2), after taking into consideration
delinquencies and costs of collecting such annual taxes.
Section 13. Pledge of Revenues. The City hereby covenants and agrees that, subject
to the prior lien on and pledge of the Net Revenues to the payment and security of the Prior Lien
Obligations, the Surplus Revenues are hereby irrevocably pledged to the payment of the principal
of and interest on the Certificates, and the pledge of Surplus Revenues herein made for the
payment of the Certificates shall be limited to $1,000 and shall constitute a lien on the Surplus
Revenues until such time as the City shall pay all of such $1,000, after which time the pledge
shall cease, all in accordance with the terms and provisions hereof and be valid and binding and
fully perfected from and after the date of adoption of this Ordinance without physical delivery or
transfer or transfer of control of the Surplus Revenues, the filing of this Ordinance or any other
act; all as provided in Texas Government Code, Chapter 1208, as amended (“Chapter 1208”).
Chapter 1208 applies to the issuance of the Certificates and the pledge of the Surplus
Revenues of the System granted by the City under this Section 13, and such pledge is therefore
valid, effective and perfected. If Texas law is amended at any time while the Certificates are
Outstanding such that the pledge of the Surplus Revenues of the System granted by the City
under this Section 13 is to be subject to the filing requirements of Texas Business and Commerce
Code, Chapter 9, as amended, then in order to preserve to the registered owners of the
Certificates the perfection of the security interest in said pledge, the City agrees to take such
measures as it determines are reasonable and necessary under Texas law to comply with the
applicable provisions of Texas Business and Commerce Code, Chapter 9, as amended, and
enable a filing to perfect the security interest in said pledge to occur.
Section 14. Revenue Fund. 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 as collected into the “City of The Colony,
Texas, Water and Sewer System Revenue Bonds Revenue Fund” (heretofore created and
established in the connection with the issuance of outstanding Prior Lien Obligations and
hereinafter called the “Revenue Fund”). All moneys deposited in the Revenue Fund shall be
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pledged and appropriated to the extent required for the following purposes and in the order of
priority shown, to wit:
First: To the payment of the reasonable and proper maintenance and operation expenses
of the System as defined herein or required by statute or ordinances authorizing the Prior
Lien Obligations to be a first charge on and claim against the revenues of the System.
Second: To the payment of all amounts required to be deposited in the special funds
created and established for the payment, security and benefit of Prior Lien Obligations in
accordance with the terms and provisions of the ordinances authorizing the issuance of
Prior Lien Obligations.
Third: To the payment of the limited amounts required to be deposited in the special funds
and accounts created and established for the payment of the Certificates and Additional
Obligations.
Any Net Revenues remaining in the Revenue Fund after satisfying the foregoing
payments, or making adequate and sufficient provision for the payment thereof, may be
appropriated and used for any other City purpose now or hereafter permitted by law.
Section 15. Deposits to Certificate Account. The City agrees to cause to be
deposited in the Certificate Account prior to a principal and interest payment date for the
Certificates from the Surplus Revenues in the Revenue Fund, after the deduction of all payments
required to be made to the special Funds or accounts created for the payment and security of the
Prior Lien Obligations, or from ad valorem taxes or other lawfully available funds, as applicable,
any amounts budgeted to be paid from the Certificate Account in such Fiscal Year.
Accrued interest and premium, if any, received from the purchaser of the Certificates shall
be deposited to the Certificate Account. In addition, any surplus proceeds from the sale of the
Certificates not expended for authorized purposes shall be deposited in the Certificate Account,
and such amounts so deposited shall reduce the sums otherwise required to be deposited in said
Certificate Account.
Section 16. Security of Funds. All moneys on deposit in the Funds for which this
Ordinance makes provision (except any portion thereof as may be at any time properly invested)
shall be secured in the manner and to the fullest extent required by the laws of Texas for the
security of public funds, and moneys on deposit in such Funds shall be used only for the purposes
permitted by this Ordinance.
Section 17. Remedies in Event of Default. 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 Certificate Account, or (b) defaults
in the observance or performance of any other of the covenants, conditions, or obligations set
forth in this Ordinance, any Holder 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
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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 18. Special Covenants. The City hereby covenants as follows:
(i) That it has the lawful power to pledge the Surplus Revenues 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 Texas Local
Government Code, Subchapter C of Chapter 271, as amended, and Texas Government
Code, Chapter 1502, as amended.
(ii) That other than for the payment of the outstanding Prior Lien Obligations
and the Certificates, the Net Revenues are not pledged to the payment of any debt or
obligation of the City or of the System.
(iii) That other than for the payment of the outstanding Certificates, the Surplus
Revenues are not pledged to the payment of any debt or obligation of the City or of the
System.
(iv)That, as long as any Certificates or any interest thereon remain
Outstanding, and the pledge of the Surplus Revenues has not been fully satisfied, the City
will not sell, lease, or encumber the System or any substantial part thereof, provided that
this covenant shall not 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.
(v) The City recognizes that the purchasers and owners of the Certificates will
have accepted them on, and paid a price which reflects, the understanding that interest
thereon is excludable from federal income taxation under laws in force at the time the
Certificates shall have been delivered. In this connection the City covenants to take no
action or fail to take any action, which action or failure to act may render the interest on
any of such Certificates subject to federal income taxation, particularly pursuant to Section
103 of the Internal Revenue Code of 1986, as amended (the “Code”), nor shall the City
take any action or fail to take any action, which action or failure to act, would have the
effect of causing the income derived by the City from the System to become subject to
federal income taxation in the hands of the City, whether or not provision shall have been
made for the payment of such Certificates.
Section 19. Issuance of Additional Obligations. The City hereby expressly reserves
the right to hereafter issue Prior Lien Obligations and Additional Obligations without limitation as
to principal amount but subject to any terms, conditions or restrictions applicable thereto under
law or otherwise.
Additional Prior Lien Obligations and Additional Obligations, if issued, may be payable, in
whole or in part, from Net Revenues (without impairment of the obligation of contract with the
holders of Certificates) upon such terms and conditions as the City Council may determine.
Additional Obligations, if issued and payable, in whole or in part, from Surplus Revenues (as
defined in the same or similar terms as the term Surplus Revenues is defined in this Ordinance),
shall not in any event be construed as payable from the Surplus Revenues required by this
Ordinance to be budgeted and appropriated for the payment of the Certificates and interest
thereon.
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It is the intention of this governing body and accordingly hereby recognized and stipulated
that the provisions, agreements and covenants contained herein bearing upon the management
and operations of the System, and the administering and application of revenues derived from
the operation thereof, shall to the extent possible be harmonized with like provisions, agreements
and covenants contained in the ordinances authorizing the issuance of the Prior Lien Obligations,
and to the extent of any irreconcilable conflict between the provisions contained herein and in the
ordinances authorizing the issuance of the Prior Lien Obligations, the provisions, agreements and
covenants contained therein shall prevail to the extent of such conflict and be applicable to this
Ordinance but in all respects subject to the priority of rights and benefits, if any, conferred thereby
to the holders of the Prior Lien Obligations.
Section 20. Sale of the Certificates – Official Statement Approval. The Certificates
authorized by this Ordinance are hereby sold by the City to SAMCO Capital Markets, Inc.,
Raymond James & Associates, Inc. and Robert W. Baird & Co. Incorporated (herein referred to
as the “Purchasers”) in accordance with the Purchase Contract, dated May __, 2020 (the
“Purchase Contract”), attached hereto as Exhibit B and incorporated herein by reference as a
part of this Ordinance for all purposes. The Mayor or Mayor Pro Tem is hereby authorized and
directed to execute said Purchase Contract for and on behalf of the City and as the act and deed
of this Council, and in regard to the approval and execution of the Purchase Contract, the Council
hereby finds, determines and declares that the terms of the sale are in the best interests of the
City and the representations, warranties and agreements of the City contained in the Purchase
Contract are true and correct in all material respects and shall be honored and performed by the
City.
Furthermore, the use of the Preliminary Official Statement by the Purchasers in connection
with the public offering and sale of the Certificates is hereby ratified, confirmed and approved in
all respects and such Preliminary Official Statement is hereby deemed "final" as of its date within
the meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 under the Securities and
Exchange Act of 1934, as amended. The final Official Statement, which reflects the terms of sale
(together with such changes approved by the Mayor, Mayor Pro Tem, City Manager, Director of
Finance or City Secretary, 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 Official
Statement, dated May __, 2020, in the reoffering, sale and delivery of the Certificates to the public.
The Mayor or Mayor Pro Tem and City Secretary are further authorized to execute and deliver for
and on behalf of the City copies of said Official Statement in final form as may be required by the
Purchasers, and such final Official Statement in the form and content executed by said officials
shall be deemed to be approved by the Council and constitute the Official Statement authorized
for distribution and use by the Purchasers.
Section 21. Notices to Owners - 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 on the Security Register at the close of business on the business day
next preceding the mailing of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such notice
to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of
such notice with respect to all other Certificates. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder entitled to receive such notice, either
before or after the event with respect to which such notice is given; and, such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying
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Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
Section 22. Cancellation. All Certificates surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be
promptly canceled by it; and, if surrendered to the City, shall be delivered to the Paying
Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying
Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation
any Certificates previously certified or registered and delivered which the City may have acquired
in any manner whatsoever, and all Certificates so delivered shall be promptly canceled by the
Paying Agent/Registrar. All canceled Certificates held by the Paying Agent/Registrar shall be
returned to the City.
Section 23. Mutilated, Destroyed, Lost, and Stolen Certificates. If (a) any mutilated
Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying
Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any
Certificate, and (b) there is delivered to the City and the Paying Agent/Registrar such security or
indemnity as may be required to save each of them harmless, then, in the absence of notice to
the City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide
purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate,
a new Certificate of the same Stated Maturity and of like tenor and principal amount, bearing a
number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about
to become due and payable, the City in its discretion may, instead of issuing a new Certificate,
pay such Certificate.
Upon the issuance of any new Certificate under this Section, the City may require payment
by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation
thereto and any other expenses (including the fees and expenses of the Paying Agent/Registrar)
connected therewith.
Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City, whether
or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other
Outstanding Certificates.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Certificates.
Section 24. Covenants to Maintain Tax-Exempt Status of Interest on the
Certificates.
(a) Definitions. When used in this Section, the following terms shall have the following
meanings:
“Closing Date” means the date on which the Certificates are first
authenticated and delivered to the initial purchasers against payment therefor.
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“Code” means the Internal Revenue Code of 1986, as amended by all
legislation, if any, effective on or before the Closing Date.
“Computation Date” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of
the Regulations, and any replacement proceeds as defined in Section 1.148-1(c)
of the Regulations, of the Certificates.
“Investment” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Nonpurpose Investment” means any investment property, as defined in
Section 148(b) of the Code, in which Gross Proceeds of the Certificates are
invested and which is not acquired to carry out the governmental purposes of the
Certificates.
“Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Regulations” means any proposed, temporary, or final Income Tax
Regulations issued pursuant to Sections 103 and 141 through 150 of the Code,
and 103 of the Internal Revenue Code of 1954, which are applicable to the
Certificates. Any reference to any specific Regulation shall also mean, as
appropriate, any proposed, temporary or final Income Tax Regulation designed to
supplement, amend or replace the specific Regulation referenced.
“Yield” of
(1)any Investment has the meaning set forth in Section 1.148-5 of the
Regulations; and
(2)the Certificates has the meaning set forth in Section 1.148-4 of the
Regulations.
(b) Not to Cause Interest to Become Taxable. The City shall not use, permit the
use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed directly or indirectly with Gross Proceeds)
in a manner which if made or omitted, respectively, would cause the interest on any Certificate to
become includable in the gross income, as defined in Section 61 of the Code, of the owner thereof
for federal income tax purposes. Without limiting the generality of the foregoing, unless and until
the City receives a written opinion of counsel nationally recognized in the field of municipal bond
law to the effect that failure to comply with such covenant will not adversely affect the exemption
from federal income tax of the interest on any Certificate, the City shall comply with each of the
specific covenants in this Section.
(c) No Private Use or Private Payments. Except as permitted by Section 141 of
the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last
Stated Maturity of Certificates:
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(1)exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Certificates, and not use or permit the use of
such Gross Proceeds (including all contractual arrangements with terms different
than those applicable to the general public) or any property acquired, constructed
or improved with such Gross Proceeds in any activity carried on by any person or
entity (including the United States or any agency, department and instrumentality
thereof) other than a state or local government, unless such use is solely as a
member of the general public; and
(2)not directly or indirectly impose or accept any charge or other
payment by any person or entity who is treated as using Gross Proceeds of the
Certificates or any property the acquisition, construction or improvement of which
is to be financed or refinanced directly or indirectly with such Gross Proceeds,
other than taxes of general application within the City or interest earned on
investments acquired with such Gross Proceeds pending application for their
intended purposes.
(d) No Private Loan. Except to the extent permitted by Section 141 of the Code and
the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates
to make or finance loans to any person or entity other than a state or local government. For
purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a
person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is
sold or leased to such person or entity in a transaction which creates a debt for federal income
tax purposes; (2) capacity in or service from such property is committed to such person or entity
under a take or pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens
and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or
improved with such Gross Proceeds are otherwise transferred in a transaction which is the
economic equivalent of a loan.
(e) Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of
the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the
final Stated Maturity of the Certificates directly or indirectly invest Gross Proceeds in any
Investment (or use Gross Proceeds to replace money so invested), if as a result of such
investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or
with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of
the Certificates.
(f) Not 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 149(b) of the Code and the Regulations and rulings thereunder.
(g) Information Report. The City shall timely file the information required by Section
149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in
such place as the Secretary may prescribe.
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(h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section
148(f) of the Code and the Regulations and rulings thereunder:
(1)The City shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and
apart from all other funds (and receipts, expenditures and investments thereof) and
shall retain all records of accounting for at least six years after the day on which
the last outstanding Certificate is discharged. However, to the extent permitted by
law, the City may commingle Gross Proceeds of the Certificates with other money
of the City, provided that the City separately accounts for each receipt and
expenditure of Gross Proceeds and the obligations acquired therewith.
(2)Not less frequently than each Computation Date, the City shall
calculate the Rebate Amount in accordance with rules set forth in Section 148(f)
of the Code and the Regulations and rulings thereunder. The City shall maintain
such calculations with its official transcript of proceedings relating to the issuance
of the Certificates until six years after the final Computation Date.
(3)As additional consideration for the purchase of the Certificates by
the Purchasers and the loan of the money represented thereby and in order to
induce such purchase by measures designed to insure the excludability of the
interest thereon from the gross income of the owners thereof for federal income
tax purposes, the City shall pay to the United States out of the Certificate Account
or its general fund, as permitted by applicable Texas statute, regulation or opinion
of the Attorney General of the State of Texas, the amount that when added to the
future value of previous rebate payments made for the Certificates equals (i) in the
case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the
Regulations, one hundred percent (100%) of the Rebate Amount on such date;
and (ii) in the case of any other Computation Date, ninety percent (90%) of the
Rebate Amount on such date. In all cases, the rebate payments shall be made at
the times, in the installments, to the place and in the manner as is or may be
required by Section 148(f) of the Code and the Regulations and rulings thereunder,
and shall be accompanied by Form 8038-T or such other forms and information as
is or may be required by Section 148(f) of the Code and the Regulations and rulings
thereunder.
(4)The City shall exercise reasonable diligence to assure that no errors
are made in the calculations and payments required by paragraphs (2) and (3),
and if an error is made, to discover and promptly correct such error within a
reasonable amount of time thereafter (and in all events within one hundred eighty
(180) days after discovery of the error), including payment to the United States of
any additional Rebate Amount owed to it, interest thereon, and any penalty
imposed under Section 1.148-3(h) of the Regulations.
(i) Not to Divert 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 transaction that
reduces the amount required to be paid to the United States pursuant to subsection (h) of this
Section because such transaction results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm’s length and had the Yield of the Certificates not been
relevant to either party.
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(j) Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem,
City Manager, and Director of Finance, either or any combination of them, to make elections
permitted or required pursuant to the provisions of the Code or the Regulations, as they deem
necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption
or similar or other appropriate certificate, form or document.
Section 25. Satisfaction of Obligations 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
on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge
of taxes levied and the lien on and pledge of the Net Revenues 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.
The 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 (a) money sufficient
to pay in full such Certificates or the principal amount(s) thereof at maturity or the redemption date
therefor, together with all interest due thereon, shall have been irrevocably deposited with and
held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (b) Government
Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an
authorized escrow agent, which Government Securities have been certified by an independent
accounting or consulting firm to mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the principal of and interest on such
Certificates, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly
given or waived or if irrevocable arrangements therefor have been made) the redemption date
thereof. The City covenants that no deposit of moneys or Government Securities will be made
under this Section and no use made of any such deposit which would cause the Certificates to be
treated as “arbitrage bonds” within the meaning of Section 148 of the Code or regulations adopted
pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar, and all income from
Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Certificates, or any
principal amount(s) thereof, or interest thereon with respect to which such moneys have been so
deposited shall be remitted to the City or deposited as directed by the City. Furthermore, upon
the City’s request, the Paying Agent/Registrar shall remit to the city along with a written receipt,
any moneys deposited and held in trust by the Paying Agent/Registrar for the payment of the
principal of and interest on the Certificates which remain unclaimed for a period of three (3) years
after being so deposited and held on the Stated Maturity or applicable redemption date on the
Certificates. Notwithstanding the above and foregoing, any remittance of funds from the Paying
Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State
of Texas.
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Section 26. Proceeds of Sale. The proceeds of sale of the Certificates, excluding the
amounts to pay costs of issuance, shall be deposited in a construction fund maintained at the
City’s depository bank. Pending expenditure for authorized projects and purposes, such proceeds
of sale may be invested in authorized investments in accordance with the provisions of Texas
Government Code, Chapter 2256, as amended, including guaranteed investment contracts and
the City’s investment policies and guidelines, and any investment earnings realized may be
expended for such authorized projects and purposes or deposited in the Certificate Account as
shall be determined by the City Council. All surplus proceeds of sale of the Certificates, including
investment earnings, remaining after completion of all authorized projects or purposes shall be
deposited to the credit of the Certificate Account.
Section 27. Ordinance a Contract - Amendments. The provisions of this Ordinance
shall constitute a contract with the Holders; and, the City shall not amend or repeal any of the
provisions of this Ordinance so long as any Certificate remains Outstanding except as permitted
in this Section and 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, including the curing of any ambiguity, inconsistency, or formal
defect or omission herein. In addition, with the written consent of the registered owner or owners
holding a majority in aggregate principal amount of the Certificates then Outstanding affected
thereby, the City may amend, add to, or rescind any of the provisions of this Ordinance; provided
that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition
or rescission shall: (1) extend the time or times of payment of the principal of, premium, if any,
and interest on the Certificates, reduce the principal amount thereof, the redemption price
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 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 28. Continuing Disclosure Undertaking.
(a) Definitions. As used in this Section, the following terms have the meanings
ascribed to such terms below:
“Financial Obligation” means a (a) debt obligation; (b) derivative instrument
entered into in connection with, or pledged as security or a source of payment for,
an existing or planned debt obligation; or (c) guarantee of a debt obligation or any
such derivative instrument; provided that “financial obligation” shall not include
municipal securities (as defined in the Securities Exchange Act of 1934, as
amended) as to which a final official statement (as defined in the Rule) has been
provided to the MSRB consistent with the Rule.
“MSRB” means the Municipal Securities Rulemaking Board.
“Rule” means SEC Rule 15c2-12, as amended from time to time.
“SEC” means the United States Securities and Exchange Commission.
(b) Annual Reports.
The City shall provide annually to the MSRB (1) within six months after the end of each
fiscal year ending in or after 2020, financial information and operating data with respect to the
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City of the general type of information contained in Tables 1 through 5 and 7 through 14 in the
Official Statement, and (2) within twelve months after the end of each fiscal year ending in or after
2020, audited financial statements of the City. Any financial statements so provided shall be
prepared in accordance with the accounting principles described in described in Appendix B to
the Official Statement, 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 audited financial statements are not available within 12 months after the end of any
fiscal year, the City will provide unaudited financial statements within such twelve month period,
and audited financial statements when and if such audited financial statements become available.
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 pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may
be set forth in full in one or more documents or may be included by specific reference to any
document available to the public on the MSRB’s Internet Web site or filed with the SEC.
(c) Notice of Certain Events.
The City shall provide notice of any of the following events with respect to the Certificates
to the MSRB in a timely manner and not more than 10 business days after occurrence of the
event:
1.Principal and interest payment delinquencies;
2.Non-payment related defaults, if material;
3.Unscheduled draws on debt service reserves reflecting financial
difficulties;
4.Unscheduled draws on credit enhancements reflecting financial
difficulties;
5.Substitution of credit or liquidity providers, or their failure to perform;
6.Adverse tax opinions, the issuance by the Internal Revenue Service
of proposed or final determinations of taxability, Notices of
Proposed Issue (IRS Form 5701-TEB), or other material notices or
determinations with respect to the tax status of the Certificates, or
other material events affecting the tax status of the Certificates;
7.Modifications to rights of holders of the Certificates, if material;
8.Certificate calls, if material, and tender offers;
9.Defeasances;
10.Release, substitution, or sale of property securing repayment of the
Certificates, if material;
11.Rating changes;
12.Bankruptcy, insolvency, receivership, or similar event of the City,
which shall occur as described below;
13.The consummation of a merger, consolidation, or acquisition
involving the City or the sale of all or substantially all of its assets,
other than in the ordinary course of business, the entry into of a
definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material;
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14.Appointment of a successor or additional trustee or the change of
name of a trustee, if material;
15.Incurrence of a Financial Obligation of the City, if material, or
agreement to covenants, events of default, remedies, priority rights,
or other similar terms of a Financial Obligation of the City, any of
which affect security holders, if material; and
16.Default, event of acceleration, termination event, modification of
terms, or other similar events under the terms of a Financial
Obligation of the City, any of which reflect financial difficulties.
For these purposes, (a) any event described in the immediately preceding subsection
(c)12 is considered to occur when any of the following occur: the appointment of a receiver, fiscal
agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or
in any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the City and (b) the City intends the words used in the immediately preceding
subsections (c)(15) and (c)(16) in this Section to have the same meanings as when they are used
in the Rule, as evidenced by SEC Release No. 34-83885, dated August 20, 2018.
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) Filings 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.
The City shall be obligated to observe and perform the covenants specified in this Section
for so long as, but only for so long as, the City remains an “obligated person” with respect to the
Certificates within the meaning of the Rule, except that the City in any event will give the notice
required by subsection (c) of this Section of any Certificate calls and defeasance that cause the
City to be no longer such an “obligated person.”
The provisions of this Section are for the sole benefit of the Holders and beneficial owners
of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any
legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to
provide only the financial information, operating data, financial statements, and notices which it
has expressly agreed to provide pursuant to this Section and does not hereby undertake to
provide any other information that may be relevant or material to a complete presentation of the
City’s financial results, condition, or prospects or hereby undertake to update any information
provided in accordance with this Section or otherwise, except as expressly provided herein. The
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City does not make any representation or warranty concerning such information or its usefulness
to a decision to invest in or sell Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR
BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR
TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE
CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON,
IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE
LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
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 underwriter to purchase or sell Certificates in the primary offering of the Certificates
in compliance with the Rule, taking into account any amendments or interpretations of the Rule
to the date of such amendment, as well as such changed circumstances, and (2) either (a) the
Holders of a majority in aggregate principal amount (or any greater amount required by any other
provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates
consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally
recognized bond counsel) determines that such amendment will not materially impair the interests
of the Holders and beneficial owners of the Certificates. The provisions of this Section may also
be amended from time to time or repealed by the City if the SEC amends or repeals the applicable
provisions of the Rule or a court of final 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 an
underwriter of the initial public offering of the Certificates from lawfully purchasing or selling
Certificates in such offering. If the City so amends the provisions of this Section, it shall include
with any amended financial information or operating data next provided 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. Control and Custody of Certificates. The Mayor of the City shall be and
is hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas, including the printing and supply of
definitive Certificates, and shall take and have charge and control of the Initial Certificate(s)
pending the approval thereof by the Attorney General, the registration thereof by the Comptroller
of Public Accounts, and the delivery thereof to the Purchaser.
Section 30. Further Procedures. Any one or more of the Mayor, Mayor Pro Tem, 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 City all agreements,
instruments, certificates or other documents, whether mentioned herein or not, as may be
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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 initial delivery of the
Certificates, the Mayor, Mayor Pro Tem, 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, formal defect or omission in this 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 General and if such officer or counsel determines that
such changes are consistent with the intent and purpose of this Ordinance, which determination
shall be final. 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. Bond Counsel’s Opinion. The Purchaser’s obligation to accept delivery
of the Certificates is subject to being furnished a final opinion of Norton Rose Fulbright US LLP,
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. A true and correct
reproduction of said opinion is hereby authorized to be printed on the definitive Certificates or an
executed counterpart thereof shall accompany the global Certificates deposited with DTC. The
City Council confirms the continuation of the engagement of Norton Rose Fulbright US LLP as
the City's bond counsel.
Section 32. CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Certificates shall be of no significance or effect as regards the legality
thereof and neither the City nor the attorneys approving said Certificates as to legality are to be
held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates.
Section 33. 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. This Ordinance in its entirety is intended to be and is for the sole and
exclusive benefit of the City, the Paying Agent/Registrar, and the Holders.
Section 34. Inconsistent Provisions. Except as provided in Section 19 hereof, all
ordinances, orders, or resolutions, or parts thereof, which are in conflict or inconsistent with any
provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions
of this Ordinance shall be and remain controlling as to the matters contained herein.
Section 35. Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural number
shall be considered to include the singular, and words of the masculine, feminine or neuter gender
shall be considered to include the other genders.
Section 36. Incorporation 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 for all purposes as if the same were restated in full
in this Section.
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Section 37. Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
Section 38. Effect of Headings. The Section headings herein are for convenience of
reference only and shall not affect the construction hereof.
Section 39. Severability. If any provision of this Ordinance or the application thereof
to any circumstance shall be held to be invalid, the remainder of this Ordinance or the application
thereof to other circumstances shall nevertheless be valid, and this governing body hereby
declares that this Ordinance would have been enacted without such invalid provision.
Section 40. Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Texas Government Code, Chapter 551, as amended.
Section 41. Effective Date. This Ordinance shall take effect and be in force from and
after its passage and approval in accordance with the provisions of Texas Government Code,
Section 1201.028, as amended.
[The remainder of this page is intentionally left blank]
50
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 5th day of May, 2020.
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
Tina Stewart, TRMC, City Secretary
City of The Colony, Texas
(City Seal)
APPROVED AS TO FORM:
Jeff Moore, City Attorney
City of The Colony, Texas
51
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
52
EXHIBIT B
PURCHASE CONTRACT
53
Agenda Item No:4.3
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: David Cranford
Submitting Department: Finance
Item Type: Ordinance
Agenda Section:
Subject:
Consider and act on an ordinance authorizing the issuance of the City's General Obligation Refunding Bonds,
Series 2020 to refund 2010 and 2010A COs, levying a tax for the payment of the bonds, and approving the
execution of agreements in connection therewith. (Cranford)
Suggested Action:
Both COs are callable and carry a 4% coupon rate. Expected total interest saving is a little over $1 million or
about $90k a year.
Attachments:
2020 CO Refunding Summary - 2.24.20.pdf
Ord. 2020-xxxx Refunded Bonds 2010 Series.docx
54
55
CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2020 -______
AN ORDINANCE authorizing the issuance of “CITY OF THE COLONY, TEXAS,
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2020”;
specifying the terms and features of said bonds; levying a continuing direct
annual ad valorem tax for the payment of said bonds; providing for the
redemption of certain outstanding obligations of the City; and resolving
other matters incident and related to the issuance, sale, payment and
delivery of said bonds, including the approval and execution of a Paying
Agent/Registrar Agreement, a Purchase Contract and an Escrow
Agreement and the approval and distribution of a Preliminary Official
Statement and an Official Statement; and providing an effective date.
WHEREAS, the City Council (the “Council”) of the City of The Colony, Texas (the “City”)
has heretofore issued, sold, and delivered, and there is currently outstanding obligations of the
following issues or series (collectively, the “Refunded Obligations”):
(a)"City of The Colony, Texas Combination Tax and Limited Surplus Revenue
Certificates of Obligation, Series 2010," dated February 15, 2010,
scheduled to mature on August 15 in each of the years 2021 through 2028,
inclusive, and 2030, and aggregating in the principal amount of $8,100,000
(the “Series 2010 Refunded Certificates”);
(b)"City of The Colony, Texas Combination Tax and Limited Surplus Revenue
Certificates of Obligation, Series 2010-A," dated September 15, 2010,
scheduled to mature on August 15 in each of the years 2021, 2022, 2024,
2026, 2028 and 2030, and aggregating in the principal amount of
$1,475,000 (the “Series 2010A Refunded Certificates”);
WHEREAS, pursuant to the provisions of Texas Government Code, Chapter 1207, as
amended, the Council is authorized to issue refunding bonds and deposit the proceeds of sale
directly with the place of payment for the Refunded Obligations, or other authorized depository,
and such deposit, when made in accordance with said statute, shall constitute the making of firm
banking and financial arrangements for the discharge and final payment of the Refunded
Obligations; and
WHEREAS, the Council hereby finds and determines that the Refunded Obligations
should be refunded at this time, and such refunding will result in the City saving approximately
$_______ in debt service payments on such indebtedness and further provide net present value
savings of approximately $_________; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, 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 $__________ to be designated and bear the title “CITY OF THE COLONY,
TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2020” (hereinafter referred to
as the “Bonds”), for the purpose of providing funds for the discharge and final payment of certain
outstanding obligations of the City (identified in the preamble hereof and referred to as the
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“Refunded Obligations”) and to pay costs of issuance, in accordance with the Constitution and
laws of the State of Texas, including Texas Government Code, Chapter 1207, as amended.
SECTION 2: Fully Registered Obligations - Bond Date - Authorized Denominations-
Stated Maturities - Interest Rates. The Bonds shall be issued as fully registered obligations only,
shall be dated May 1, 2020 (the “Bond Date”), shall be in denominations of $5,000 or any integral
multiple (within a Stated Maturity) thereof, and shall become due and payable on August 15 in
each of the years and in the principal amounts (the “Stated Maturities”) and bear interest at the
rate(s) per annum in accordance with the following schedule:
Year of
Stated Maturity
Principal
Amount ($)
Interest
Rate (%)
The Bonds shall bear interest on the unpaid principal amounts from the date of initial
delivery of the Bonds at the rate(s) per annum shown above in this Section (calculated on the
basis of a 360-day year consisting of twelve 30-day months). Interest on the Bonds shall be
payable on February 15 and August 15 in each year, commencing August 15, 2020, until maturity
or prior redemption.
SECTION 3: Terms of Payment - Paying Agent/Registrar. The principal of, premium,
if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or
otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter
called the “Holders”) appearing on the registration and transfer books maintained by the Paying
Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public and private debts,
and shall be without exchange or collection charges to the Holders.
The selection and appointment of U.S. Bank National Association, Dallas, Texas, to serve
as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records
relating to the registration, payment, transfer and exchange of the Bonds (the “Security Register”)
shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as
provided herein and in accordance with the terms and provisions of a “Paying Agent/Registrar
Agreement,” substantially in the form attached hereto as Exhibit A, and such reasonable rules
and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor 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 Agent/Registrar 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 57
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services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the
Bonds, the City agrees to promptly cause a written notice thereof to be sent to each Holder by
United States mail, first-class, postage prepaid, which notice shall also give the address of the
new Paying Agent/Registrar.
Principal of and premium, if any, on the Bonds, shall be payable at the Stated Maturities
or upon prior redemption thereof only upon presentation and surrender of the Bonds to the Paying
Agent/Registrar at its designated offices, initially in St. Paul, Minnesota, or, with respect to a
successor Paying Agent/Registrar, at the designated offices of such successor (the “Designated
Payment/Transfer Office”). Interest on the Bonds shall be paid to the Holders whose names
appear in the Security Register at the close of business on the Record Date (the last business
day of the month next preceding each interest payment date) and shall be paid by the Paying
Agent/Registrar (i) by check sent by United States mail, first-class, postage prepaid, to the
address of the Holder recorded in the Security Register or (ii) by such other method, acceptable
to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the
date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a
legal holiday, or a day when banking institutions in the city where the Designated
Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which
is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are
authorized to close; and payment on such date shall have the same force and effect as if made
on the original date payment was due.
In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a “Special Record Date”) will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (which shall be 15 days after the Special Record Date) shall
be sent at least five (5) business days prior to the Special Record Date by United States mail,
first-class, postage prepaid, to the address of each Holder appearing on the Security Register at
the close of business on the last business day next preceding the date of mailing of such notice.
SECTION 4: Redemption.
(a) Optional Redemption. The Bonds maturing on August 15, 2030, 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 August 15, 2029, or on any date thereafter, at the redemption price of par
plus accrued interest from the most recent interest payment date on which interest has been paid
or duly provided for to the date of redemption.
At least forty-five (45) days prior to an optional redemption date for the Bonds (unless a
shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify
the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated
Maturity to be optionally redeemed, and the date of redemption therefor.
(b) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the
same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall
treat such Bonds as representing the number of Bonds Outstanding, which is obtained by dividing
the principal amount of such Bonds by $5,000, and shall select the Bonds, or principal amount
thereof, to be redeemed within such Stated Maturity by lot.
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(c) Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Bonds, a notice of redemption shall be sent by United States Mail, first-class, postage
prepaid, in the name of the City and at the City’s expense, to each Holder of a Bond to be
redeemed in whole or in part at the address of the Holder appearing on the Security Register at
the close of business on the business day next preceding the date of mailing such notice, and
any notice of redemption so mailed shall be conclusively presumed to have been duly given
irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify
the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed,
the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the
Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and
payable on the redemption date specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue from and after the redemption
date, and (v) specify that payment of the redemption price for the Bonds, or the 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 been called for redemption and notice of redemption
thereof has been duly given as hereinabove provided, such Bond (or the principal amount thereof
to be redeemed) shall become due and payable and interest thereon shall cease to accrue from
and after the redemption date therefor; provided moneys sufficient for the payment of such Bond
(or of the principal amount thereof to be redeemed) at the then applicable redemption price are
held for the purpose of such payment by the Paying Agent/Registrar.
(d) Conditional Notice of Redemption. 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 may, at the option of
the City, be 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 or such prerequisites are
not satisfied, 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.
SECTION 5: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. A
Security Register relating to the registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the Designated Payment/Transfer Office
of the Paying Agent/Registrar, as provided herein and in accordance with the provisions of an
agreement with the Paying Agent/Registrar and such rules and regulations as the Paying
Agent/Registrar and the City may prescribe. The Paying Agent/Registrar shall obtain, record, and
maintain in the Security Register the name and address of each Holder of the Bonds issued under
and pursuant to the provisions of this Ordinance. Any Bond may, in accordance with its terms
and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations
by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the
Paying Agent/Registrar at the Designated Payment/Transfer Office 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 Payment/Transfer Office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, 59
99823322.4/10011110055
one or more new Bonds of authorized denominations and having the same Stated Maturity and
of a like aggregate principal amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds (other than the Initial Bond(s) referenced in Section 8
hereof) may be exchanged for other Bonds of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the
Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the
Designated Payment/Transfer 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 Payment/Transfer Office of the Paying Agent/Registrar or sent by United States
Mail, first-class, postage prepaid to the Holders, and, upon the registration and delivery thereof,
the same shall be the valid obligations of the City, evidencing the same obligation to pay, and
entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or
exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or
exchange of any tax or other governmental charges required to be paid with respect to such
transfer or exchange.
Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof
are hereby defined to be “Predecessor Bonds,” evidencing all or a portion, as the case may be,
of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in
the exchange or transfer therefor. Additionally, the term “Predecessor Bonds” shall include any
mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued,
registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such
new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost,
destroyed, or stolen Bond.
Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer or
exchange 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 transfer/exchange
of the Bonds, the City hereby approves and authorizes the use of “Book-Entry-Only” securities
clearance, settlement and transfer system provided by The Depository Trust Company, 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 Representations, by
and between the City and DTC (the “Depository Agreement”).
Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited
with DTC who shall hold said Bonds for its participants (the “DTC Participants”). While the Bonds
are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security
Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of
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DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the
“Beneficial Owners”) being recorded in the records of DTC and DTC Participants.
In the event DTC determines to discontinue serving as securities depository for the Bonds
or otherwise ceases to provide book-entry clearance and settlement of securities transactions in
general or the City decides to discontinue the use of the system of book-entry-only transfers
through DTC, the City covenants and agrees with the Holders of the Bonds to cause Bonds to be
printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC
Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form
shall be assigned, transferred and exchanged on the Security Register maintained by the Paying
Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of
Sections 3, 4 and 5 hereof.
SECTION 7: Execution - Registration. The Bonds shall be executed on behalf of the
City by the Mayor or Mayor Pro Tem under its seal reproduced or impressed thereon and
countersigned by the City Secretary. The signature of said officers on the Bonds may be manual
or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the
proper officers of the City on the Bond Date shall be deemed to be duly executed on behalf of the
City, notwithstanding that one or more of the individuals shall cease to hold such offices at the
time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in
subsequent exchanges and transfers, all as authorized and provided in Texas Government Code,
Chapter 1201, as amended.
No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Bond either a certificate of registration
substantially in the form provided in Section 9(c), 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 Bond shall be conclusive evidence, and the only evidence, that such Bond has been
duly certified, registered, and delivered.
SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued
either (i) as a single fully registered bond in the aggregate principal amount stated in Section 1
hereof 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 after the delivery of the Initial Bond(s),
the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the
designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor
definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing
applicable interest rates for transfer and delivery to the Holders named at the addresses identified
therefor; all pursuant to and in accordance with such written instructions from the initial
purchaser(s), or the designee thereof, and such other information and documentation as the
Paying Agent/Registrar may reasonably require.
SECTION 9: Forms.
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(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 and
endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are
purchased with insurance and any reproduction of an opinion of counsel) thereon as may,
consistently herewith, be established by the City or determined by the officers executing such
Bonds as evidenced by their execution. Any portion of the text of any Bonds may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the Bond.
The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, 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.
(b) Form of Definitive Bond.
REGISTERED
NO. ___
REGISTERED
$___________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF THE COLONY, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 2020
Bond Date:
May 1, 2020
Interest Rate:
_______%
Stated Maturity:
August 15, 20__
CUSIP No.:
__________
Registered Owner:
Principal Amount:
The City of The Colony (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the County of Denton, 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 “Registered Owner”), 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 date of initial delivery of the Bonds) 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 August 15 and February 15 in each year,
commencing August 15, 2020, until maturity or prior redemption. Principal of this Bond shall be
payable at its Stated Maturity or upon prior redemption to the registered owner hereof upon
presentation and surrender at the Designated Payment/Transfer Office of the Paying
Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest
is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined 62
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in the Ordinance hereinafter referenced) whose name appears on the “Security Register”
maintained by the Paying Agent/Registrar at the close of business on the “Record Date”, which
is the last business day of the month next preceding each interest payment date, and interest
shall be paid by the Paying Agent/Registrar by check sent by 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 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 Payment/Transfer Office of the Paying Agent/Registrar is located are
authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such 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
and in any coin or currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts.
This Bond is one of the series specified in its title issued in the aggregate principal amount
of $____________ (herein referred to as the “Bonds”) for the purpose of providing funds for the
discharge and final payment of certain outstanding obligations of the City and to pay costs of
issuance, under and in strict conformity with the Constitution and laws of the State of Texas,
including Texas Government Code, Chapter 1207, as amended, and pursuant to an Ordinance
adopted by the City Council of the City (herein referred to as the “Ordinance”).
The Bonds maturing on August 15, 2030, may be redeemed prior to their Stated 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 August 15, 2029,
or on any date thereafter, at the redemption price of par plus accrued interest to the date of
redemption.
At least thirty days prior to the date fixed for any redemption of Bonds, the City shall cause
a written notice of such redemption to be sent by United States Mail, first-class, postage prepaid,
to the registered owners of each Bond to be redeemed at the address shown on the Security
Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a
Bond (or any portion of its principal sum) shall have been duly called for redemption and notice
of such redemption duly given, then upon such redemption date such Bond (or the portion of its
principal sum to be redeemed) shall become due and payable, and interest thereon shall cease
to accrue from and after the redemption date therefor; provided moneys for the payment of the
redemption price and the interest on the principal amount to be redeemed to the date of
redemption are held for the purpose of such payment by the Paying Agent/Registrar.
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 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 or such prerequisites are not satisfied, 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.
In the event a portion of the principal amount of a Bond is to be redeemed and the
registered owner is someone other than Cede & Co., payment of the redemption price of such 63
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principal amount shall be made to the registered owner only upon presentation and surrender of
such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new
Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the
Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the
registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the
City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of
the registered owner within 45 days of the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an exchange by the registered owner of the
unredeemed balance of a Bond redeemed in part.
The Bonds are payable from the proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to
the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying
Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or
supplemented with or without the consent of the Holders; the rights, duties, and obligations of the
City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be
discharged at or prior to its maturity or redemption, and deemed to be no longer Outstanding
thereunder; and for other terms and provisions contained therein. Capitalized terms used herein
have 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 Agent/Registrar to the designated
transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered
owner whose name appears on the Security Register (i) on the Record Date as the owner entitled
to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to
payment of principal hereof at its Stated Maturity, or upon its prior redemption, in whole or in part,
and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying
Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of
nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new
record date for such interest payment (a “Special Record Date”) will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the
City. Notice of the Special Record Date and of the scheduled payment date of the past due
interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States mail, first-class, postage prepaid,
to the address of each Holder appearing on the Security Register at the close of business on the
last business day next preceding the date of mailing of such notice.
It is hereby certified, recited, represented and declared that the City is a duly organized
and legally existing municipal corporation under and by virtue of the Constitution and laws of the
State of Texas; that the issuance of the Bonds is duly authorized by law; that all acts, conditions
and things required to exist and be done precedent to and in the issuance of the Bonds to render
the same lawful and valid obligations of the City have been properly done, have happened and 64
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have been performed in regular and due time, form and manner as required by the Constitution
and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any
Constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision
in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby. The terms and
provisions of this Bond and the Ordinance shall be construed in accordance with and shall be
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly
executed under the official seal of the City as of the Bond Date.
CITY OF THE COLONY, TEXAS
____________________________________
[Mayor]
COUNTERSIGNED:
___________________________________
City Secretary
(City Seal)
(c) Form of Registration Certificate of Comptroller of Public Accounts to appear on
Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER )
OF PUBLIC ACCOUNTS )REGISTER NO. _____________
THE STATE OF TEXAS )
I HEREBY CERTIFY that this Bond has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this __________________________.
Comptroller of Public Accounts
of the State of Texas
(SEAL)
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99823322.4/100111100511
(d) Form of Certificate of Paying Agent/Registrar to appear on Definitive Bonds only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered under the provisions of the within-
mentioned Ordinance; the bond or bonds of the above entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar.
The designated office of the Paying Agent/Registrar in St. Paul, Minnesota is the
“Designated Payment/Transfer Office” for this Bond.
U.S. Bank National Association, Dallas, Texas,
as Paying Agent/Registrar
Registration date:
By:
Authorized Signature
(e) Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print
or typewrite name, address, and zip code of transferee):
(Social Security or other identifying number ____________________________) the within
Bond and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for registration thereof, with full power of
substitution in the premises.
DATED:
Signature guaranteed:
NOTICE: The signature on this
assignment must correspond with the
name of the registered owner as it
appears on the face of the within Bond
in every particular.
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(f) The Initial Bond(s) shall be in the form set forth in paragraph (b) of this Section,
except that the form of the single fully registered Initial Bond shall be modified as follows:
Heading and first paragraph shall read as follows:
REGISTERED
NO. T-1
REGISTERED
$________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF THE COLONY, TEXAS
GENERAL OBLIGATION REFUNDING BOND
SERIES 2020
Bond Date: May 1, 2020
Registered Owner:SAMCO CAPITAL MARKETS, INC.
Principal Amount:____________________ DOLLARS
The City of The Colony (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the County of Denton, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the registered owner named above, or the
registered assigns thereof (the “Registered Owner”), the Principal Amount hereinabove stated on
August 15 in each of the years and in the principal installments in accordance with the following
schedule:
STATED
MATURITY
PRINCIPAL
INSTALLMENTS ($)
INTEREST
RATE (%)
(Information to be inserted from schedule in Section 2 hereof)
(or so much principal thereof as shall not have been redeemed prior to maturity) and to pay
interest on the unpaid Principal Amount hereof from the date of initial delivery of the Bonds at the
per annum rates of interest specified above computed on the basis of a 360-day year of twelve
30-day months; such interest being payable on February 15 and August 15 in each year,
commencing August 15, 2020, until maturity or prior redemption. Principal installments of this
Bond are payable on the Stated Maturity dates or on a redemption date to the registered owner
hereof by U.S. Bank National Association, Dallas, Texas (the “Paying Agent/Registrar”), upon its
presentation and surrender at its designated offices, initially in St. Paul, Minnesota, 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 Agent/Registrar by check
sent by 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
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 Payment/Transfer
Office of the Paying Agent/Registrar is located are authorized by law or executive order to close,
then the date for such payment shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day when such 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 67
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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.
SECTION 10: Levy of Taxes. To provide for the payment of the “Debt Service
Requirements” of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their
payment at maturity or redemption or a sinking fund of 2% (whichever amount is the greater),
there is hereby levied, and there shall be annually assessed and collected in due time, form, and
manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such
tax hereby levied on each one hundred dollars’ valuation of taxable property in the City for the
Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and
sufficient to provide funds each year to pay the principal of and interest on said Bonds while
Outstanding; full allowance being made for delinquencies and costs of collection; separate books
and records relating to the receipt and disbursement of taxes levied, assessed and collected for
and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds
are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on
the Bonds shall be deposited to the credit of a “Special 2020 Bond Account” (the “Interest and
Sinking Fund”) maintained on the records of the City and deposited in a special fund maintained
at an official depository of the City’s funds; and such tax hereby levied, and to be assessed and
collected annually, is hereby pledged to the payment of the Bonds.
The Mayor, Mayor Pro Tem, City Manager, City Secretary and Director of Finance of the
City, individually or jointly, are hereby authorized and directed to cause to be transferred to the
Paying Agent/Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund,
amounts sufficient to fully pay and discharge promptly each installment of interest and principal
of the Bonds as the same accrues or matures or comes due by reason of redemption prior to
maturity; such transfers of funds to be made in such manner as will cause collected funds to be
deposited with the Paying Agent/Registrar on or before each principal and interest payment date
for the Bonds.
The City has sufficient current funds available and such funds are hereby appropriated to
make the payments to become due on the Bonds on August 15, 2020, and the Mayor, Mayor Pro
Tem, City Manager, Director of Finance and City Secretary of the City, individually or jointly, are
hereby authorized and directed to transfer and deposit in the Interest and Sinking Fund such
amount of current funds which will be sufficient to pay the amounts to become due on the Bonds
on August 15, 2020.
SECTION 11: Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall
be mutilated, destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a
replacement Bond of like form and tenor, and in the same denomination and bearing a number
not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in
lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the
City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence
satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of
the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of
indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar
harmless. All expenses and charges associated with such indemnity and with the preparation,
execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated,
destroyed, lost or stolen.
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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
on the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of
taxes levied under this Ordinance and all covenants, agreements, and other obligations of the
City to the Holders shall thereupon cease, terminate, and be discharged and satisfied.
Bonds or any principal amount(s) thereof shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when (i) money sufficient to pay in
full such Bonds or the principal amount(s) thereof at maturity or to the redemption date thereof,
together with all interest due thereon, shall have been irrevocably deposited with and held in trust
by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow
agent, which Government Securities have been certified by an independent accounting or
consulting 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, on and
prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if
irrevocable arrangements therefor 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 will be made of any such deposit which would cause the Bonds to be treated as
“arbitrage bonds” within the meaning of Section 148 of the Internal Revenue Code of 1986, as
amended, or regulations adopted pursuant thereto.
Any moneys so deposited with the Paying Agent/Registrar, or an authorized escrow agent,
and all income from Government Securities held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, pursuant to this Section which is not required for the payment of the
Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys
have been so deposited shall be remitted to the City or deposited as directed by the City.
Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of
and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated
Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held
in trust to pay shall, upon the request of the City be remitted to the City against a written receipt
therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying
Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State
of Texas.
The term “Government Securities”, as used herein, shall mean (i) direct noncallable
obligations of the United States of America, including obligations the principal of and interest on
which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations
of an agency or instrumentality of the United States, including obligations unconditionally
guaranteed or insured by the agency or instrumentality and, on the date of their acquisition or
purchase by the City, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent, (iii) noncallable obligations of a state or an agency 69
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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 and (iv) any other
then authorized securities or obligations that may be used to defease obligations such as the
Bonds under the then applicable laws of the State of Texas.
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, including the curing of any ambiguity,
inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of
Holders holding a majority in aggregate principal amount of the Bonds then Outstanding, amend,
add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all
Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the
time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce
the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in
any other way modify the terms of payment of the principal of, premium, if any, or interest on the
Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate
principal amount of Bonds required to be held by Holders for consent to any such amendment,
addition, or rescission.
The term “Outstanding” when used in this Ordinance with respect to Bonds means, as of
the date of determination, all Bonds theretofore issued and delivered under this Ordinance,
except:
(1) those Bonds cancelled by the Paying Agent/Registrar or delivered
to the Paying Agent/Registrar for cancellation;
(2) those Bonds deemed to be duly paid by the City in accordance with
the provisions of Section 12 hereof; and
(3) those mutilated, destroyed, lost, or stolen Bonds which have been
replaced with Bonds registered and delivered in lieu thereof as provided in
Section 11 hereof.
SECTION 14: Covenants to Maintain Tax-Exempt Status.
(a) Definitions. When used in this Section, 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 1.148-1(b) of the
Regulations.
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“Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of
the Regulations, and any replacement proceeds as defined in Section 1.148-1(c)
of the Regulations, of the Bonds.
“Investment” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Nonpurpose Investment” means any investment property, as defined in
Section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested
and which is not acquired to carry out the governmental purposes of the Bonds.
“Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the
Regulations.
“Regulations” means any proposed, temporary, or final Income Tax
Regulations issued pursuant to Sections 103 and 141 through 150 of the Code,
and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds.
Any reference to any specific Regulation shall also mean, as appropriate, any
proposed, temporary or final Income Tax Regulation designed to supplement,
amend or replace the specific Regulation referenced.
“Yield” of (1) any Investment has the meaning set forth in Section 1.148-5
of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-
4 of the Regulations.
(b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed directly or indirectly with Gross Proceeds)
in a manner which if made or omitted, respectively, would cause the interest on any Bond to
become includable in the gross income, as defined in Section 61 of the Code, of the owner thereof
for federal income tax purposes. Without limiting the generality of the foregoing, unless and until
the City receives a written opinion of counsel nationally recognized in the field of municipal bond
law to the effect that failure to comply with such covenant will not adversely affect the exemption
from federal income tax of the interest on any Bond, the City shall comply with each of the specific
covenants in this Section.
(c) No Private Use or Private Payments. Except as permitted by Section 141 of the
Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated
Maturity of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds (including property financed with
Gross Proceeds of the Refunded Obligations), and not use or permit the use of
such Gross Proceeds (including all contractual arrangements with terms different
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
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(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 (including
property financed with Gross Proceeds of the Refunded Obligations), other than
taxes of general application within the City or interest earned on investments
acquired with such Gross Proceeds pending application for their intended
purposes.
(d) No Private Loan. Except to the extent permitted by Section 141 of the Code and
the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to
make or finance loans to any person or entity other than a state or local government. For
purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a
person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is
sold or leased to such person or entity in a transaction which creates a debt for federal income
tax purposes; (2) capacity in or service from such property is committed to such person or entity
under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens
and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or
improved with such Gross Proceeds are otherwise transferred in a transaction which is the
economic equivalent of a loan.
(e) Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of
the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the
final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment
(or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield
from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced
thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds.
(f) Not Federally Guaranteed. Except to the extent permitted by Section 149(b) of
the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any
action which would cause the Bonds to be federally guaranteed within the meaning of Section
149(b) of the Code and the Regulations and rulings thereunder.
(g) Information Report. The City shall timely file the information required by Section
149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in
such place as the Secretary may prescribe.
(h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section
148(f) of the Code and the Regulations and rulings thereunder:
(1) The City shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and
apart from all other funds (and receipts, expenditures and investments thereof) and
shall retain all records of accounting for at least six years after the day on which
the last outstanding Bond is discharged. However, to the extent permitted by law,
the City may commingle Gross Proceeds of the Bonds with other money of the
City, provided that the City separately accounts for each receipt and expenditure
of Gross Proceeds and the obligations acquired therewith.
(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 72
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such calculations with its official transcript of proceedings relating to the issuance
of the Bonds until six years after the final Computation Date.
(3) As additional consideration for the purchase of the Bonds by the
Purchasers and the loan of the money represented thereby and in order to induce
such purchase by measures designed to insure the excludability of the interest
thereon from the gross income of the owners thereof for federal income tax
purposes, the City shall pay to the United States out of its general fund, 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
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 or a larger loss than would have resulted if
the transaction had been at arm’s length and had the Yield of the Bonds not been relevant to
either party.
(j) Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem,
City Manager and Director of Finance, either or any combination of them, 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.
(k) Bonds Not Hedge Bonds. (1) At the time the original obligations being refunded
by the Bonds were issued, the City reasonably expected to spend at least 85% of the spendable
proceeds of such obligations within three years after such obligations were issued and (2) not
more than 50% of the proceeds of the original obligations being refunded by the Bonds were
invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4
years or more.
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(l) Current Refunding of the Refunded Obligations. The Bonds are a current refunding
of the Refunded Obligations in that the Refunded Obligations are to be paid and redeemed in full
within 90 days of the delivery date of the Bonds.
SECTION 15: Sale of Bonds – Official Statement Approval. The Bonds authorized by
this Ordinance are hereby sold by the City to SAMCO Capital Markets, Inc., Raymond James &
Associates, Inc. and Robert W. Baird & Co. Incorporated (herein referred to as the “Purchasers”)
in accordance with the Purchase Contract, dated May __, 2020 (the “Purchase Contract”),
attached hereto as Exhibit B and incorporated herein by reference as a part of this Ordinance for
all purposes. The Mayor or Mayor Pro Tem is hereby authorized and directed to execute said
Purchase Contract for and on behalf of the City and as the act and deed of this Council, and in
regard to the approval and execution of the Purchase Contract, the Council hereby finds,
determines and declares that the terms of the sale are in the best interests of the City and the
representations, warranties and agreements of the City contained in the Purchase Contract are
true and correct in all material respects and shall be honored and performed by the City.
Furthermore, the use of the Preliminary Official Statement by the Purchasers in connection
with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all
respects and such Preliminary Official Statement is hereby deemed "final" as of its date within the
meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 under the Securities and
Exchange Act of 1934, as amended. The final Official Statement, which reflects the terms of sale
(together with such changes approved by the Mayor, Mayor Pro Tem, City Manager, Director of
Finance or City Secretary, 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 Official
Statement, dated May __, 2020, in the reoffering, sale and delivery of the Bonds to the public.
The Mayor or Mayor Pro Tem and City Secretary are further authorized to execute and deliver for
and on behalf of the City copies of said Official Statement in final form as may be required by the
Purchasers, and such final Official Statement in the form and content executed by said officials
shall be deemed to be approved by the Council and constitute the Official Statement authorized
for distribution and use by the Purchasers.
SECTION 16: Control and Custody of Bonds. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas, including the printing and supply of
definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the
approval thereof by the Attorney General, the registration thereof by the Comptroller of Public
Accounts and the delivery thereof to the Purchasers.
SECTION 17: Proceeds of Sale. Immediately following the delivery of the Bonds, the
proceeds of sale (less those proceeds of sale designated to pay costs of issuance) shall be
deposited with the Escrow Agent (as defined in Section 18 hereof) for application and
disbursement in accordance with the provisions of the Escrow Agreement (as defined in Section
18 hereof). The proceeds of sale of the Bonds not so deposited with the Escrow Agent for the
refunding of the Refunded Bonds shall be disbursed for payment of costs of issuance or deposited
in the Interest and Sinking Fund for the Bonds. Such proceeds may be invested in authorized
investments and any investment earnings realized may be (with respect to the accrued interest
received from the Purchasers, if any) deposited in the Interest and Sinking Fund as shall be
determined by the Council.
Additionally, on or immediately prior to the date of the delivery of the Bonds to the
Purchaser, the Director of Finance or other appropriate City official shall cause to be transferred
in immediately available funds to the Escrow Agent from moneys on deposit in the interest and 74
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sinking fund maintained for the payment of the Refunded Obligations the sum of $______ to
accomplish the refunding.
SECTION 18: Escrow Agreement Approval and Execution; Redemption of Refunded
Obligations.
(a) The Escrow Agreement (the “Escrow Agreement”) by and between the City and
U.S. Bank National Association, Dallas, Texas (the “Escrow Agent”), attached hereto as Exhibit
C and incorporated herein by reference as a part of this Ordinance for all purposes, is hereby
approved as to form and content, and such Escrow Agreement in substantially the form and
substance attached hereto, together with such changes or revisions as may be necessary to
accomplish the refunding or benefit the City, is hereby authorized to be executed by the Mayor or
Mayor Pro Tem, and City Secretary for and on behalf of the City and as the act and deed of this
Council; and such Escrow Agreement as executed by said officials shall be deemed approved by
the Council and constitute the Escrow Agreement herein approved.
(b) Furthermore, appropriate officials of the City in cooperation with the Escrow Agent
are hereby authorized and directed to make the necessary arrangements on the day of delivery
of the Bonds to the Purchasers for the purchase of any federal securities referenced in the Escrow
Agreement and the delivery thereof to the Escrow Agent and for deposit of certain proceeds of
sale of the Bonds and any federal securities to the credit of the “SPECIAL 2020 CITY OF THE
COLONY, TEXAS, GENERAL OBLIGATION REFUNDING BOND ESCROW FUND” (the
“Escrow Fund”), including the execution of subscription forms for the purchase and issuance of
any “United States Treasury Securities State and Local Government Series”; all as contemplated
and provided in Texas Government Code, Chapter 1207, as amended, this Ordinance and the
Escrow Agreement.
(c) The Series 2010 Refunded Certificates shall be redeemed and the same are
hereby called for redemption on August 15, 2020, at the price of par and accrued interest to the
date of redemption. The City Secretary is hereby authorized and directed to file a copy of this
Ordinance, together with a suggested form of notice of redemption to be sent to holders of the
Series 2010 Refunded Certificates, with U.S. Bank National Association, Dallas, Texas in
accordance with the redemption provisions applicable to such obligations; such suggested form
of notice of redemption being attached hereto as Exhibit D-1 and incorporated herein by
reference as a part of this Ordinance for all purposes.
(d) The Series 2010A Refunded Certificates shall be redeemed and the same are
hereby called for redemption on August 15, 2020, at the price of par and accrued interest to the
date of redemption. The City Secretary is hereby authorized and directed to file a copy of this
Ordinance, together with a suggested form of notice of redemption to be sent to holders of the
Series 2010A Refunded Certificates, with U.S. Bank National Association, Dallas, Texas in
accordance with the redemption provisions applicable to such obligations; such suggested form
of notice of redemption being attached hereto as Exhibit D-2 and incorporated herein by
reference as a part of this Ordinance for all purposes.
(e) The redemption of the Refunded Obligations described above being associated
with the refunding of such Refunded Obligations, the approval, authorization and arrangements
herein given and provided for the redemption of such Refunded Obligations on the redemption
date designated therefor and in the manner provided shall be irrevocable upon the issuance and
delivery of the Bonds; and the City Secretary is hereby authorized and directed to make all
arrangements necessary to notify the holders of such Refunded Obligations of the City’s decision
to redeem such Refunded Obligations on the date and in the manner herein provided and in 75
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accordance with the ordinances authorizing the issuance of such Refunded Obligations and this
Ordinance.
SECTION 19: Notices to Holders - Waiver. Wherever this Ordinance provides for
notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States mail, first-class, postage prepaid, to the
address of each Holder appearing in the Security Register at the close of business on the
business day next preceding the mailing of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such notice
to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of
such notice with respect to all other Bonds. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder entitled to receive such notice, either
before or after the event with respect to which such notice is given, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying
Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
SECTION 20: Cancellation. All Bonds surrendered for payment, transfer, exchange,
or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it
and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time
deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered
and delivered which the City may have acquired in any manner whatsoever, and all Bonds so
delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held
by the Paying Agent/Registrar shall be returned to the City.
SECTION 21: Legal Opinion. The obligation of the Purchasers to accept delivery of
the Bonds is subject to being furnished a final legal opinion of Norton Rose Fulbright US LLP
approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of
delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby
authorized to be printed on or attached to the definitive Bonds or an executed counterpart thereof
shall accompany the global Bonds deposited with DTC. The Council confirms the continuation of
the engagement of Norton Rose Fulbright US LLP as the City's bond counsel.
SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof
and neither the City nor attorneys approving the Bonds as to legality are to be held responsible
for CUSIP numbers incorrectly printed or typed on the definitive Bonds.
SECTION 23: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied,
is intended or shall be construed to confer upon any person other than the City, the Paying
Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by
reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar
and the Holders.
SECTION 24: Inconsistent Provisions. All ordinances, orders or resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.76
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SECTION 25: Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 26: Effect of Headings. The section headings herein are for convenience
of reference only and shall not affect the construction hereof.
SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural number
shall be considered to include the singular, and words of the masculine, feminine or neuter gender
shall be considered to include the other genders.
SECTION 28: Continuing Disclosure Undertaking.
(a) Definitions. As used in this Section, the following terms have the meanings
ascribed to such terms below:
“Financial Obligation” means a (a) debt obligation; (b) derivative instrument
entered into in connection with, or pledged as security or a source of payment for,
an existing or planned debt obligation; or (c) guarantee of a debt obligation or any
such derivative instrument; provided that “financial obligation” shall not include
municipal securities (as defined in the Securities Exchange Act of 1934, as
amended) as to which a final official statement (as defined in the Rule) has been
provided to the MSRB consistent with the Rule.
“MSRB” means the Municipal Securities Rulemaking Board.
“Rule” means SEC Rule 15c2-12, as amended from time to time.
“SEC” means the United States Securities and Exchange Commission.
(b) Annual Reports. The City shall provide annually to the MSRB (1) within six months
after the end of each fiscal year, beginning in or after 2020, financial information and operating
data with respect to the City of the general type included in Tables 1 through 5 and 7 through 14
in the Official Statement, and (2) within twelve months after the end of each fiscal year ending in
or after 2020, audited financial statements of the City. Any financial statements so provided shall
be prepared in accordance with the accounting principles described in Appendix B to the Official
Statement, 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
audited financial statements are not available within twelve months after the end of any fiscal
year, the City will provide unaudited financial statements within such twelve month period, and
audited financial statements when and if such audited financial statements become available.
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 pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may
be set forth in full in one or more documents or may be included by specific reference to any
document available to the public on the MSRB’s Internet Web site or filed with the SEC.
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(c) Notice of Certain Events. The City shall provide notice of any of the following
events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business
days after occurrence of the event:
1.Principal and interest payment delinquencies;
2.Non-payment related defaults, if material;
3.Unscheduled draws on debt service reserves reflecting financial difficulties;
4.Unscheduled draws on credit enhancements reflecting financial difficulties;
5.Substitution of credit or liquidity providers, or their failure to perform;
6.Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-
TEB), or other material notices or determinations with respect to the tax status of
the Bonds, or other material events affecting the tax status of the Bonds;
7.Modifications to rights of holders of the Bonds, if material;
8.Bond calls, if material, and tender offers;
9.Defeasances;
10.Release, substitution, or sale of property securing repayment of the Bonds, if
material;
11.Rating changes;
12.Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur
as described below;
13.The consummation of a merger, consolidation, or acquisition involving the City or
the sale of all or substantially all of its assets, other than in the ordinary course of
business, the entry into of a definitive agreement to undertake such an action or
the termination of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material;
14.Appointment of a successor or additional trustee or the change of name of a
trustee, if material;
15.Incurrence of a Financial Obligation of the City, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a
Financial Obligation of the City, any of which affect security holders, if material;
and
16.Default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a Financial Obligation of the City, any of which
reflect financial difficulties.
For these purposes, (a) any event described in the immediately preceding subsection
(c)12 is considered to occur when any of the following occur: the appointment of a receiver, fiscal
agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or
in any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the City and (b) the City intends the words used in the immediately preceding
subsections (c)(15) and (c)(16) in this Section to have the same meanings as when they are used
in the Rule, as evidenced by SEC Release No. 34-83885, dated August 20, 2018.
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.78
99823322.4/100111100524
(d) Filings 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. The City shall be obligated to observe
and perform the covenants specified in this Section while, but only while, the City remains an
“obligated person” with respect to the Bonds within the meaning of the Rule, except that the City
in any event will give the notice required by subsection (c) hereof of any Bond calls and
defeasance that cause the City to be no longer such an “obligated person.”
The provisions of this Section are for the sole benefit of the Holders and beneficial owners
of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal
or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide
only the financial information, operating data, financial statements, and notices which it has
expressly agreed to provide pursuant to this Section and does not hereby undertake to provide
any other information that may be relevant or material to a complete presentation of the City’s
financial results, condition, or prospects or hereby undertake to update any information provided
in accordance with this Section or otherwise, except as expressly provided herein. The City does
not make any representation or warranty concerning such information or its usefulness to a
decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR
BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT,
FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY,
WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON,
IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE
LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
Notwithstanding anything to the contrary in this Ordinance, the provisions of this Section
may be amended by the City from time to time to adapt to changed circumstances resulting from
a change in legal requirements, a change in law, or a change in the identity, nature, status, or
type of operations of the City, but only if (1) the provisions of this Section, as so amended, would
have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in
compliance with the Rule, taking into account any amendments or interpretations of the Rule to
the date of such amendment, as well as such changed circumstances, and (2) either (a) the
Holders of a majority in aggregate principal amount (or any greater amount required by any other
provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds
consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally
recognized bond counsel) determines that such amendment will not materially impair the interests
of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be
amended from time to time or repealed by the City if the SEC amends or repeals the applicable
provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid,
but only if and to the extent that reservation of the City’s right to do so would not prevent an 79
99823322.4/100111100525
underwriter 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 circumstance shall be held to be invalid, the remainder of this Ordinance and the application
thereof to other circumstances shall nevertheless be valid, and this 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, 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 City all
agreements, instruments, certificates or other documents, whether mentioned herein or not, as
may be necessary or desirable in order to carry out the terms and provisions of this Ordinance
and the issuance, sale and delivery of the Bonds. In addition, prior to the delivery of the Bonds,
the Mayor, Mayor Pro Tem, 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, formal defect, or omission in this 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 and if such officer or counsel determines that such
changes are consistent with the intent and purpose of this Ordinance, which determination shall
be final. 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: Incorporation of Findings and Determinations. The findings and
determinations of the Council contained in the preamble hereof are hereby incorporated by
reference and made a part of this Ordinance for all purposes as if the same were restated in full
in this Section.
SECTION 32: Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Texas Government Code, Chapter 551, as amended.
SECTION 33: Effective Date. In accordance with the provisions of Texas Government
Code, Section 1201.028, as amended, this Ordinance shall be in force and effect from and after
its passage on the date shown below and it is so ordained.
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80
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 5th day of May, 2020.
.
CITY OF THE COLONY, TEXAS
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
Tina Stewart, TRMC, City Secretary
City of The Colony, Texas
(City Seal)
APPROVED AS TO FORM:
___________________________________
Jeff Moore, City Attorney
City of The Colony, Texas
81
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
82
EXHIBIT B
PURCHASE CONTRACT
83
EXHIBIT C
ESCROW AGREEMENT
84
EXHIBIT D-1
NOTICE OF REDEMPTION
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND LIMITED SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 2010
Dated: February 15, 2010
NOTICE IS HEREBY GIVEN that the certificates of obligation of the above series maturing
on and after August 15, 2021, and aggregating in the principal amount of $8,100,000, have been
called for redemption on August 15, 2020 at the redemption price of par and accrued interest to
the date of redemption, such certificates being identified as follows:
Year of
Maturity
Principal
Amount ($)
CUSIP
Number
2021 670,000 19624KHN4
2022 705,000 19624KHP9
2023 730,000 19624KHQ7
2024 760,000 19624KHR5
2025 785,000 19624KHS3
2026 820,000 19624KHT1
2027 855,000 19624KHU8
2028 890,000 19624KHV6
***
2030 1,885,000 19624KHW4
ALL SUCH CERTIFICATES OF OBLIGATION shall become due and payable on August
15, 2020, and interest thereon shall cease to accrue from and after said redemption date and
payment of the redemption price of said certificates of obligation shall be paid to the registered
owners of the certificates of obligation only upon presentation and surrender thereof to Regions
Bank, 201 Milan Parkway, 2nd Floor, Birmingham, AL 35211, Attention: Corporate Trust
Operations.
THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the
redemption of said certificates and pursuant to an ordinance by the City Council of the City of The
Colony, Texas.
REGIONS BANK
3773 Richmond Avenue, Suite 1100,
Houston, Texas 77046
85
EXHIBIT D-2
NOTICE OF REDEMPTION
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2010-A
Dated: September 15, 2010
NOTICE IS HEREBY GIVEN that the certificates of obligation of the above series maturing
on and after August 15, 2021, and aggregating in the principal amount of $1,475,000, have been
called for redemption on August 15, 2020 at the redemption price of par and accrued interest to
the date of redemption, such certificates being identified as follows:
Year of
Maturity
Principal
Amount ($)
CUSIP
Number
2021 125,000 19624KJZ5
2022 130,000 19624KKA8
***
2024 270,000 19624KJV4
***
2026 295,000 19624KJW2
***
2028 315,000 19624KJX0
***
2030 340,000 19624KJY8
ALL SUCH CERTIFICATES OF OBLIGATION shall become due and payable on August
15, 2020, and interest thereon shall cease to accrue from and after said redemption date and
payment of the redemption price of said certificates of obligation shall be paid to the registered
owners of the certificates of obligation only upon presentation and surrender thereof to Regions
Bank, 201 Milan Parkway, 2nd Floor, Birmingham, AL 35211, Attention: Corporate Trust
Operations.
THIS NOTICE is issued and given pursuant to the terms and conditions prescribed for the
redemption of said certificates and pursuant to an ordinance by the City Council of the City of The
Colony, Texas.
REGIONS BANK
3773 Richmond Avenue, Suite 1100,
Houston, Texas 77046
86
Agenda Item No:4.4
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: David Cranford
Submitting Department: Public Works/Water Distribution
Item Type: Resolution
Agenda Section:
Subject:
Consider approving a resolution authorizing the City Manager to award bids for the annual mowing services of
water production and waste water to High Quality Landscaping and Bright View Landscaping, respectfully.
(Arthur)
Suggested Action:
Mowing services for Water Production and Waste Water were bid separately. High Quality was the low bidder
for the Water Production areas and Bright View for the Waste Water areas.
Attachments:
Copy of Bid Tally sheet (002).pdf
BID SPECIFICATIONS AND FORMS.pdf
Res. 2020-xxx Mowing Services.doc
87
Bid Item 1 Bid Item 2 Bid Item 3 lowest
Company
Bright View 1,882.07$ 740.16$ 24,992.20$ 27,614.43$
Perfect Finish Land 8,666.00$ 1,830.00$ 21,400.00$ 31,896.00$
High Quality 1,580.00$ 800.00$ 21,880.00$ 24,260.00$
Grant Leighton 4,460.00$ 3,800.00$ 27,225.00$ 35,485.00$
WCD ENT LLC 5,075.00$ 600.00$ 31,334.00$ 37,009.00$
SLM Landscape 7,650.00$ 6,000.00$ 34,120.00$ 47,770.00$
Green Pastures 6,782.00$ 948.76$ 25,313.70$ 33,044.46$
Lake hill Environmental 2,687.00$ 616.00$ 116,400.00$ 119,703.00$
AJ Contracting 85,500.00$ 5,400.00$ 121,800.00$ 212,700.00$
Bright View 3,458.50$ 246.72$ 16,755.25$ 20,460.47$
Perfect Finish Land 5,205.00$ 110.00$ 15,750.00$ 21,065.00$
High Quality 1,780.00$ 400.00$ 31,485.00$ 33,665.00$
Grant Leighton ASSCTS 6,050.00$ 1,140.00$ 23,595.00$ 30,785.00$
WCD ENT LLC 5,535.00$ 300.00$ 38,575.00$ 44,410.00$
SLM Landscape 10,640.00$ 800.00$ 26,700.00$ 38,140.00$
Green Pastures 8,688.00$ 364.64$ 53,520.64$ 62,573.28$
Lake hill Environmental 1,697.00$ 88.00$ 54,180.00$ 55,965.00$
AJ Contracting 108,000.00$ 1,800.00$ 154,200.00$ 264,000.00$
Wastewater
Water Production
88
89
MOWING AND LANDSCAPING MAINTENANCE
FOR THE
WATER PRODUCTION AND WASTEWATER
DEPARTMENT
BID NUMBER: 66-20-11_MOWING & LANDSCAPING
SERVICES
DOCUMENTS ARE DUE TO THE PURCHASING DEPARTMENT BY:
2:00 P.M., (CST) WEDNESDAY, April 15, 2020
Late Bids will not be accepted
MAYOR
JOE MCCOURRY
MAYOR PRO TEM
KIRK MIKULEC
CITY COUNCIL
RICHARD BOYER BRIAN WADE
DAVID TERRE PERRY SCHRAG
JOEL MARKS
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P a g e 2 | 24
INVITATION FOR BIDS
BID NUMBER 66-20-11 Mowing & Landscaping Services DATE: March 13, 2020
The City of The Colony, Purchasing Department, will accept bids for mowing and landscaping services until
2:00 p.m., local time, Wednesday, April 15, 2020. Bids must be submitted through the Bidsync web site
located at http://www.bidsync.com. There is no fee for registering or bidding on this project through
Bidsync. The City has the option to renew the bid for three-(3) additional one (1) year periods.
Bid results will be available online on the BidSync website, Wednesday April 15, 2020.
Specifications, bid proposal forms and instructions to bidders may be downloaded from the Bidsync web
site noted above or from the office of the Purchasing Agent at the City Hall address listed above. The City
is not responsible for any vendor's costs associated with the preparation of the bid. Any addenda will be
posted on the Bidsync web site and bidders may download them. Registered bidders will be sent
notification of the addenda the same day they are posted. Therefore, it is very i mportant that bidders
register with Bidsync whether or not they are planning to place their bids online or hand -deliver them.
Any bids received after the time listed above, regardless of the mode of delivery, shall be deemed non-
responsive. All bidders may access bid results on BidSync.
Any questions regarding the bid process or procedures should be directed to Alice Pitts at (972) 624-3145.
Any questions on the specifications should be submitted through the website www.bidsync.com.
The City of The Colony reserves the right to reject any or all bids, in whole or in part, to waive any
informality in any bid, and to accept the bid which, in its discretion, is in the best interest of the City of
The Colony.
Sincerely,
Alice Pitts
Accounting Manager
City of The Colony
PUBLICATION DATES: March 20 and March 27, 2020
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INSTRUCTIONS TO BIDDERS
1. INSTRUCTIONS: These instructions apply to all bids/quotations and become a part of
the terms and conditions of any bid or quotation submitted.
2. MAKE-MODEL: Items must be the best and latest model available of the type specified.
Please quote as listed or equal. If item offered is other than as specified, bidder must
indicate make, model and part number of the pro duct quoted. Complete catalog or
brochure showing in detail the item offered must accompany the bid, if available.
3. SPLIT-AWARD: The City of The Colony reserves the right to award a separate contract
to separate vendors for each item/group or to award one contract for an entire bid.
4. LOCAL PREFERENCE, the City Council has the right to award to the local bidder if it is
within five (5%) percent of the low non-local bidder if they decide, in writing, that the local
bidder offers the best combination of contract price and additional economic development
opportunities for the local government. This pertains only to the purchase of real property
or personal property not affixed to real property.
5. PRICING: Price(s) quoted must be held firm for ninety (90) days to allow for evaluation
unless otherwise noted in the bid document.
6. F.O.B./DAMAGE: Quotations shall be bid F.O.B. Inside Delivery, Designated Facility,
The Colony, Texas, and shall include all delivery and packaging costs. The City of The
Colony assumes no liability for goods delivered in damaged or unacceptable condition.
The successful bidder shall handle all claims with carriers, and in case of damaged
goods, shall ship replacement goods immediately upon notification by the City of
damage.
7. INVOICES: Invoices must be emailed by the successful bidder, to the attention of to
jarthur@thecolonytx.gov or dstovall@thecolonytx.gov.
8. TERMS: The terms and conditions of the bid will be considered when evaluating for
award. The City will compute and consider prompt payment discounts, if any, offered by
a bidder in determining the low bid.
9. TAXES: The City of The Colony is exempt from Federal Manufacturer’s Excise, and
State Sales taxes. TAX MUST NOT BE INCLUDED IN THE BID. Tax exemption
certificates will be executed by the City and furnished upon request.
10. SPECIFICATIONS-SAMPLES: Any catalog, brand name, or manufacturer’s reference in
the Request for Bid/Quotation is descriptive and NOT restrictive, and is used to indicate
type and quality level desired for comparison unless otherwise noted. Bids on brands of
like nature and quality will be considered unless specifically excluded. If bidding on other
than reference, bid must certify article offered is equivalent to specifications. Samples, if
required, shall be furnished free of expense to the City. SAMPLES SHOULD NOT BE
FURNISHED UNLESS REQUESTED.
11. DELIVERY PROMISE – PENALTIES: Bids/Quotations MUST show the number of
calendar days required to place the materials in the possession of the City. DO NOT
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P a g e 4 | 24
quote shipping dates. Consistent failure of a bidder to meet his delivery promises without
valid reason may be cause for removal from the bidder’s list. When delivery d elays can
be foreseen, the bidder shall give prior notice to the Purchasing Office which shall have
the right to extend the delivery due date if reasons for the delay appear acceptable.
Default in promised delivery, without acceptable reasons, or failure t o meet
specifications, authorizes the Purchasing Office to purchase the goods elsewhere, and
charge any increase in cost and handling to the defaulting bidder.
12. PACKAGING: Unless otherwise indicated, items will be new, unused, and in first class
condition in containers suitable for damage-free delivery and storage.
13. DELIVERY TIMES: Deliveries will be acceptable only during normal working hours at the
designated City facility.
14. PATENT RIGHTS: The Vendor agrees to indemnify and hold the City harmless from any
and all claims involving patent right infringement or copyrights on goods supplied.
15. EVALUATION: Response to the specifications in the bid is of primary importance in
determining the lowest responsible bid.
16. FUNDING: The City of The Colony is a home-rule municipal government operated and
funded on an October 1 to September 30 fiscal year. Accordingly, the City reserves the
right to terminate, without liability to the City any contract for which funding is no longer
available.
17. ASSIGNMENT: The successful bidder shall not sell, assign, transfer or convey this
contract in whole or in part, without the prior written consent of the City.
18. AUDIT: The City of The Colony reserves the right to audit the records and performance
of the successful bidder during the term of the contract and for three (3) years after the
contract is completed.
19. PROTESTS: All protests regarding the bid solicitation process must be submitted in
writing to the City Purchasing Agent within five (5) working days following the opening of
the bids. This includes all protests relating to advertising of bid notices, deadlines, bid
opening, and all other related procedures under the Local Government Code, as well as
any protest relocating to alleged improprieties with the bidding process. This li mitation
does not include protests relating to staff recommendations as to award of this bid.
Protests relating to staff recommendations may be directed to the City Council by
contacting the City Secretary. All staff recommendations may be made available for
public review prior to consideration by the City Council. Failure to protest within the
allotted time shall constitute a waiver of any protest.
20. NO BID: If bidder does not wish to bid at this time but wishes to remain on the bidder’s
list for this product/service, please submit a “NO BID” by the time and at the same
location as stated for the bid opening. If response is not received in the form of a “BID” or
a “NO BID” for three (3) consecutive requests for bids/quotes, the bidder shall be
removed from the bidder’s list. If, however, you choose to “NO BID” this product and/or
service and wish to remain on the bidder’s list for other commodities and/or services, 93
P a g e 5 | 24
please state what particular products and/or services under which you wish to be
classified. The City of The Colony is very conscious and extremely appreciative of the
time and effort you have expended to submit the bid. We would appreciate you indicating
on your “NO BID” response any requirements of this bid request which may have
influenced your decision.
21. WITHDRAWAL OF BIDS: A bid may not be withdrawn or canceled by the bidder for a
period of ninety (90) days following the date designated for the receipt of the bids, and
bidder so agrees upon submittal of their bid.
22. CHANGE ORDERS: No oral statement of any person shall modify or otherwise change,
or affect the terms, conditions or specifications stated in the resulting contract. All
change orders to the contract will be made in writing by the City of The Colony.
23. ADDENDA: Any interpretations, corrections or changes to this Invitation for
Bid/Proposal/Quote and specifications will be made by ADDENDA. Sole authority to
issue addenda shall be vested in the City of The Colony.
24. MINIMUM STANDARDS FOR RESPONSIBLE BIDDERS: The bid award shall follow the
criteria of Best Value as stated in Section 252.043 of the Texas Local Government Code.
A prospective bidder must affirmatively demonstrate bidder’s responsibility. A
prospective bidder must meet the following requirements:
a. The purchase price;
b. The reputation of the bidder and of the bidder’s goods or services;
c. The quality of the bidder’s goods or services;
d. The extent to which the goods or services meet the City’s needs;
e. The bidder’s past relationship with the municipality;
f. The impact on the ability of the municipality to comply with laws and rules
relating; to contracting with historically underutilized businesses and non-profit
organizations employing persons with disabilities;
g. The total long-term cost to the municipality to acquire the bidder’s goo ds or
services; and
h. Any relevant criteria specifically listed in the request for bids or proposals.
25. BIDDER SHALL PROVIDE with this bid response, all documentation required. Failure to
provide this information may result in rejection of the bid.
26. SUCCESSFUL BIDDER SHALL defend, indemnify and save harmless the City of The
Colony and all its officers, agents and employees who are participating in this contract
from all suits, actions, or other claims of any character, name and description brought for
or on account of any injuries or damages received or sustained by any person, persons,
or property on account of any negligent act or fault of the successful bidder, or of any
agent, employee, subcontractor or supplier in the execution of, or performance under,
any contract which may result from the contract award. Successful bidder shall pay any
94
P a g e 6 | 24
judgment cost which may be obtained against the City of The Colony and participating
entities growing out of such injury or damages.
27. TERMINATION FOR DEFAULT: The City of The Colony reserves the right to enforce
the performance of this contract in any manner prescribed by law or deemed to be in the
best interest of the City in the event of breach or default of this contract. The City
reserves the right to terminate the contract immediately in the event the successful bidder
fails to (1) meet delivery schedules, or (2) otherwise fails to perform in accordance with
these specifications. Breach of contract or default authorizes the City to award to another
bidder, purchase elsewhere and charge the full increase in cost and handling to the
defaulting successful bidder.
28. TESTING: Testing may be performed at the request of the City without expense to the
City.
29. REMEDIES: The successful bidder and the City of The Colony agree that each party
have all rights, duties, and remedies available as stated in the Uniform Commercial
Code.
30. VENUE: This agreement will be governed and construed according to the laws of the
State of Texas.
31. SILENCE OF SPECIFICATIONS: The apparent silence of these specifications as to any
detail or to the omission from it of a detailed description concerning any point, shall be
regarded as meaning that only the best commercial products and practices are to prevail.
All interpretations of the specifications in this bid shall be made on the basis of this
statement.
32. QUANTITIES shown are approximate and may vary according to the requirements of the
City of The Colony throughout the contract period.
33. INTERLOCAL AGREEMENT: Successful bidder agrees to extend prices and terms to
all entities who have entered into or will enter into joint Purchasing Interlocal Cooperation
Agreements with the City of The Colony,
34. VENDOR hereby assigns to purchaser any and all claims for overcharges associated
with this contract which arise under the antitrust laws of the United States 15 USCA
Section et.seq. and which arise under the antitrust laws of the State of Texas, Tex. Bus.
Un. Com. Code, Section 15.01 et. seq.
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NON-COLLUSION STATEMENT
The undersigned affirms that they are duly authorized to execute this contract, that this
company, corporation, firm, partnership or individual has not prepared this bid in collusion
with any other Bidder, and that the contents of this bid as to prices, terms or conditions of
said bid have not been communicated by the undersigned nor by any employee or agent to
any other person engaged in this type of business prior to the official opening of this bid.
Vendor:
Address:
City, State, Zip Code:
Phone:
Fax:
Authorized Rep. (Name):
Signature of Authorized Rep.:
Position with Company:
E-Mail (if available)
EXCEPTIONS (IF ANY) FROM BID SPECIFICATIONS:
Signature of vendor doing business with governmental entity required Date
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97
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STATE RECIPROCAL REQUIREMENT
The city of the colony, as a governmental agency of the state of Texas, may not award
a contract for general construction, supplies, materials, or equipment to a non-resident
bidder unless the non-resident's bid is lower than the lowest bid submitted by a
responsible Texas resident bidder by the same amount that a Texas resident bidder
would be required to underbid a non-resident bidder to obtain a comparable contract in
the state in which the non-resident's principal place of business is located (article 601g
v.t.c.s.). Bidder shall answer all the following questions by encircling the appropriate
response or completing the blank provided.
1. Is your principal place of business in the state of Texas?
YES \ NO
If the answer to question 1 is "yes" no further information is necessary; if "no",
please indicate which state your principal place of business is located?
2. Does that state favor resident bidders (bidders in your state) by some dollar
increment or percentage?
YES \ NO
If "yes", what is that dollar increment or percentage?
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BID AFFIDAVIT*
The undersigned certifies that the bid prices contained in this bid have been carefully reviewed
and are submitted as correct and final. Bidder further certifies and agrees to furnish any and/or
all commodities upon which prices are extended at the price offered, and upon the conditions
contained in the Specifications of the Invitation to Bid. The period of acceptance of this bid will
be 90 calendar days from the date of the bid opening. (Period of acceptance will be ninety (90)
calendar days unless otherwise indicated by Bidder.)
STATE OF TEXAS COUNTY OF
BEFORE ME, the undersigned authority, a Notary Public in and for the State of TEXAS, on this
day personally appeared
who after being by me
Name
duly sworn, did depose and say:
"I, am a duly authorized office/agent for
Name
and have been duly authorized to execute the
Name of Firm
foregoing on behalf of the said
Name of Firm
I hereby certify that the foregoing bid has not been prepared in collusion with any other Bidder
or individual(s) engaged in the same line of business prior to the official opening of this bid.
Further, I certify that the Bidder is not now, nor has been for the past six (6) months, directly or
indirectly concerned in any pool, agreement or combination thereof, to control the price of
services/commodities bid on, or to influence any individual(s) to bid or not to bid thereon."
Name and Address of Bidder:
Telephone:
by:
Title: Signature: __________________________________________
SUBSCRIBED AND SWORN to before me by the above named
__________________________
on this the __________________ day of ________________________________________.
Notary Public in and for the State of TEXAS
_______________________________________________
*If submitting through BidSync – submit as an attachment with notary seal and signatures.
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If BIDDER IS:
An Individual
By________________________________________________________________ (Seal)
(Individual's Name)
doing business as ______________________________________________________________
Business address _____________________________________________________________
______________________________________________ Phone No. _____________________
A Partnership
By (Seal)
(Firm Name)
(General Partner)
Business address
Phone No.
A Corporation
By
(Corporation Name)
(State of Incorporation)
By
(Name of person authorized to sign)
(Title)
(Corporate Seal)
Attest________________________________________________________________________
(Secretary)
Business address
Phone No.
A Joint Venture
By__________________________________________________________________________
(Name) (Address)
By ___
(Name) (Address)
(Each joint venture must sign. The manner of signing for each individual, partnership and
corporation that is a partner to the joint venture should be in the manner indicated above.)
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CITY OF THE COLONY
SPECIFICATIONS AND REQUIREMENTS FOR LANDSCAPING MAINTENANCE
OF WATER PRODUCTION AND WASTEWATER FACILITIES
Section 1 – Bid Items 1, 2, and 3
Bidder will bid each Department and Bid Item as a separate Bid. City may award bids to
multiple bidders to get the most cost effective price for each bid item.
1. Bid Item 1:
A-1: Pre and Post Emergent Weed Control. Service Period Will begin March
1st 2020 and end Feb 28, 2021. Weed and Grass Control Hardscape Areas
Service Period Will begin March 1st 2020 and end Feb 28, 2021.
Cost:_____________
B-1: Pre and Post Emergent Weed Control. Service Period Will begin March
1st 2020 and end Feb 28, 2021. Weed and Grass Control Hardscape Areas
Service Period Will begin March 1st 2020 and end Feb 28, 2021.
Cost:_____________
2. Bid Item 2:
A-2: Mulch for Open Beds and around Trees and shrubs.
Cost:_____________
B-2: Mulch for Open Beds and around Trees and shrubs.
Cost:_____________
3. Bid Item 3:
A-3: Lawn Care Services Bid pricing, submit on a per Service basis. Service
Period Will begin March 1, 2020 and end November 30, 2020.
Cost:_____________
B-3: Lawn Care Services Bid pricing, submit on a per Service basis. Service
Period Will begin March 1, 2020 and end November 30, 2020.
Cost:_____________
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Section: 2 - Departments and Locations included in the bi d:
A. Water Production Bid Sites
1. Office Creek Pump Station, at 4180 Main St.
2. Pump Station #1, at 5033 Clover Valley
3. Pump Station #2, at 6908 Main Street
4. Pump Station #3, at 5572 N. Colony Blvd. (behind Fire Station)
5. Elevated Storage Tank #2, 5260 N. Colony Blvd.
6. Elevated Storage Tank #3, at 5704 Chesapeake Dr.
7. Wynnwood Pump Station, at 3989 Lebanon
B. Wastewater Bid Sites
1. Eastvale – Located at 4501 North Shore
2. Wynnewood Lift Station – Located at 3422 Millbank
3. Waters Edge – Located at 7277A Waters Edge Dr.
4. Iola – Located on Iola Ave. across the street (North) from 4233
Iola Ave.
5. Cottonwood – Located next to (South) 6005 Cypress Cove.
6. Master Lift Station #1 – Located at 6001 Main St.
7. Ridgepointe – Located at 3700 Overlook Ct.
8. Squires – Located at 7816 Underwood.
9. Austin Ranch – Entrance located at 5701 Plano Parkway.
10. Main WWTP – Located at 7500 Forrest Dr.
Note: (Refer Sections 4 and 9 for requirements for each site)
Section 3 - Requirements of Bidder
1. A visual inspection of winning bidder’s equipment may be required before the City
acceptance bid to assure all equipment can reliably and effectively preform services
required per this contract.
2. Bidder must employee qualified and trained employees, who are regularly supervised
and trained to perform their job correctly and safely.
3. Crew Supervisor and Foreman must be able to communicate in English, and be able to
read and complete in writing site access forms in English.
4. Winning bidder must follow all security procedures for access to all sites. These
procedures are subject to change at any time, and the bidders will be notified.
5. Any herbicide chemicals used shall be approved for use around potable water supplies
and storage facilities, with Contractor furnishing documentation of such before use.
6. Winning bidder will setup a mowing schedule with the city so each site is cut and
trimmed on the same day of each week. Multiple days may be requires to complete all
location but no more than three days per week will be allowed.
a. Mowing schedules are to be coordinated with and approved by city
reprehensive
7. Herbicide Treatments shall be applied by trained and certified staff under the direct
onsite supervision of a licensed applicator.
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Section 4 - Service Expectation
1. Trash and debris shall be picked up and removed from site before each mowing service,
as well as when cleaning and weeding landscape beds. Trash and debris shall be hauled
away and disposed of by the Contractor.
2. Fence lines, structures, meter boxes, valve boxes and turf along hardscape edges shall
be trimmed with a nylon line trimmer at each service. Curbs, sidewalks and driveways
shall be edged with a stick edger at each service to maintain a well-maintained
appearance.
a. No weed/grass killer shall be applied along fence lines, drive or walkways, tanks
or other structure perimeters unless written permission is given by the
department supervisor.
3. Clippings and debris must be blown off or removed by other means from the following
areas; streets, alleys, driveways, parking areas, curbs and walkways. Clipping may be
blow back onto original property. Excessive amounts of clipping shall be collected and
hauled away and disposed of by Contractor.
a. No clipping or other debris shall be blown or placed on to adjacent property or
properties.
b. Contractor will be responsible for taking care of neighboring customers
complaints and repairing any damaged property at contractor’s expense. In
addition, the city may terminate contract if complaints are ongoing or
contractor is not willing to resolve issues with customers.
4. Finished grass cutting height shall be no more or less than 3” at all facilities.
5. Volunteer trees (weed trees) growing near building in fences lines or near other facility
structures shall be pulled or cut down immediately.
6. Herbicide treatments of turf and open beds. Herbicides shall be applied to Turf areas to
target, stop or eliminate the seasonal growth of volunteer vegetation (weeds) growing
during different seasonal periods of the years use both pre and post emergent weed
control.
7. Hardscape herbicide treatments shall be applied to target, stop or eliminate the
seasonal growth of volunteer vegetation (weeds) growing during different periods of the
season. Use weed and grass killer in these areas.
Section 5 - Frequency of Services
1. Weather permitting; Lawn Care Services for each location will occur weekly or by-
weekly according number of application to be performed and per the service schedule.
a. During period’s drought or water restriction, the number of lawn care services
per location will be reduced due to slower growth of vegetation.
b. During inclement weather, the scheduled service day may be adjusted to
accommodate the services of contractor, with the consent of the city’s
representative.
c. Mowing schedules may also to be adjusted during dry periods and end of
seasons when grass is not growing as fast.
i. Contractor will only be compensated for each location serviced if a
location is missed due to fault of the contractor your their staff or one
of the conditions listed above prohibit service there will be no payment
for service not rendered.
2. All trees on and around the property shall be trimmed in late fall so that the lowest
branch is no lower than eight feet above the ground or three feet above the top of a
fence. 103
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3. Ornamental Hedges and shrubs shall be trimmed at least once per month during the
growing season.
4. Weed control hand weeding and chemical weed control shall be performed on a
scheduled basis throughout the contract period.
5. Fertilizers shall be performed on a scheduled basis throughout the contract period.
6. Hardwood Mulch shall be added twice per season in late spring and early fall.
Section 6 - Damage to Facilities
Damage caused by Contractor or employees of Contractor, to any structure, fixture or
equipment shall be reported immediately to the Pump Station Operator at Office Creek Pump
Station, 4180 Main Street. The phone number is (972) 624-4433. If damage is determined to
need immediate repairs, the Contractor will be notified and repairs will be made by the
contractor or city staff. Certain repairs may require outside companies proficient in repairs
such as plumbing, electrical, etc. All such repairs will be made at the Contractor’s expense.
The City reserves the right to determine if outside professional trades will be needed to make
repairs.
Section 7 - Invoicing for Work Performed
All invoices shall show the Contractor’s company name and billing address, the beginning and
ending dates of the invoice period, the project name, the description of the work performed and
the Purchase Order Number. Work will be inspected on a weekly basis by city staff to insure
proper invoicing. Invoices shall be emailed monthly to the following email address:
E-Mail: jarthur@thecolonytx.gov,
CC: dstovall@thecolonytx.gov
Refer any questions related to this contract to Jimmy Arthur, Water Production Department
Supervisor at (972) 624-4431.
Section 8 - Site Access Procedures
Contractor will need to complete a Pre-Authorized Site Access Form, listing all employees or
sub-contractor that need have access to our sites. The Contractor is limited to a maximum of ten
employees that can be listed. Each time the Contractor, needs access they must fill out a Site
Access Request Form kept at 4180 Main St. Office Creek Pump Station. The Operator on duty at
Office Creek Pump Station will check ID’s and names against the Pre-Authorized Site Access List.
The Contractor will be assigned a remote (Key Fob) and key for gates. The Key Fob and key must
be returned to Office Creek Pump Station at the end of each day by 5pm.
NOTE: Failure to return the Key Fob and key could result in the Contractor being charged for the
replacement and/or reprogramming of all gates that the Key Fob operated locks . Charges may
also be filed for theft of City property.
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Section: 9 - Lawn Care Services performed Per Location
Bid A: WATER PRODUCTION FACILITIES:
Pump Station #1: 5033 Clover Valley
Cut, trim and edge site inside/outside fence along between all turf and
hardscape surfaces
Cut areas outside of fence on south side of property from fence to curb along
Clover Valley Drive, West fence line between fence and alley, North fence line
between fence and alley, East fence line cut a three foot width from edge of
fence.
Pump Station #2: 6012 Main Street
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut areas outside of fence on south side of property from fence to Alley, West
fence line between fence and Street, North fence line between fence and
street, East fence line from carwash pavement between fence and ally.
Pump Station #3: 5572 N. Colony Blvd. (behind Fire Station)
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Mow three feet width around the entire perimeter of the outer fence line.
Notes: Exclude these areas from cutting and trimming:
o The exterior side of the Public Works Dept. Compound.
Located in front of the perimeter fence outside Pump
station gate.
o AT&T Property a small fenced compound on the West
side of the Pump Station.
Note: Site is under construction for expansion, work to be performed
in accessible areas only, accessible areas will change with construction
needs)
Elevated Storage Tank #2: 5260 N. Colony Blvd
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut areas outside of fence, south from walkway street, N. Colony Blvd., east side
from bedding to curb on Pruitt Drive, north fence line between fence and alley.
Trim shrubs and trees.
Apply weed control to irrigated turf areas.
Apply mulch to beds.
Notes: (Fenced in compounds on the Northside along alley are not to be
include in the scope of work.) (Weed Control pre & post emergent, and
fertilizers are to be applies only to grass areas outside of fence along
North Colony and Pruitt Drive.)
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Elevated Storage Tank #3: 5704 Chesapeake Drive
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside fence on Southside from fence to the curb along Chesapeake Drive.
Northside from fence to concrete alley.
Trim Trees.
Apply mulch around base of trees.
Apply weed control to the south to turf area outside of the fence on Southside
and hardscape surfaces.
Trim trees.
Wynnwood Pump Station: 3989 Lebanon
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Mow three feet out from the perimeter of the Northside fence line.
Cut a three-foot wide strip along the west side driveway around light poles from
the gate to the street and the driveway entrance eastside.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Office Creek Pump Station: 4180 Main Street
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut entire outside of fence, west side from fence to curb on Main Street, south
side from fence to property line at the tree line, cut east side from fence to Bus
lot fence.
Trim Trees.
Trim hedges/bushes.
Apply weed control to only to areas outside of western fence out to FM 423 and
hardscape surfaces.
Apply mulch around base of trees and beds along west fence line. Do not apply
mulch to trees along FM 423.
Bid B: WASTEWATER FACILITIES:
Wynnewood Lift Station – Located at 3422 Millbank
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
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Eastvale – Located at 4501 North Shore
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Waters Edge – Located at 7277A Waters Edge Dr.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Iola – Located on Iola Ave. across the street (North) from 4233 Iola Ave.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Cottonwood – Located next to (South) 6005 Cypress Cove.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Master Lift Station #1 – Located at 6001 Main St.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
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Ridgepointe – Located at 3700 Overlook Ct.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Squires – Located at 7816 Underwood.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Austin Ranch – Entrance located at 5701 Plano Parkway.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Cut outside from fence to approx. three foot width around site.
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
No Mulch
Main WWTP – Located at 7500 Forrest Dr.
Cut, trim and edge site inside/outside fence along entire fence line, around all
structures, concrete pads, valves, vaults, piping. Stick edge between all turf and
hardscape surfaces
Trim Trees.
Trim hedges/bushes.
Apply weed control to entire site and hardscape surfaces.
Apply mulch around tree rings open beds.
Note: Site is under construction for expansion, work to be performed in
accessible areas only, accessible areas will change with construction needs)
108
A: Lawn Maintenance Bid for Water Production Facilities
Bid Item A-1 Bid Item A-2 Bid Item A-3
Site: Site Location
Bid Price
per
Application
of Pre and
Post
emergent
Weed
Control for
Turf and
Bedding
Areas
Multiply by
Number of
Application
per year.
Multiply by
Number of
Application
Total Cost
per
location
Bid Price
Per
Application
of Weed
and Grass
Control
Hardscape
Areas
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
Bid Price
Per
Application
of Fertilizer
Turf Area
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
Bid Price
Per
Application
of Mulch
for Open or
Closed
Beds
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
"Bid Price
Per Lawn
care Service
Mowing,
Line trim,
edging
blowing etc.
For Each
location"
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
1
"Office Creek Pump
Station, 4180 Main
St."
7 6 4 2
32
2 "Pump Station #1, at
5033 Clover Valley" N/A 6 N/A N/A 25
3 "Pump Station #2, at
6908 Main Street" N/A 6 N/A N/A 25
4
"Pump Station #3, at
5572 N. Colony Blvd.
(behind Fire Station)"
N/A 6 N/A N/A
25
5
"Elevated Storage
Tank #2, 5260 North
Colony Blvd. "
7 6 4 2
32
6
"Elevated Storage
Tank #3, at 5704
Chesapeake Dr."
7 6 4 2
32
7
"Wynnwood Pump
Station, at 3989
Lebanon West
Lebanon Road."
7 6 4 N/A
32
Total Cost: Total Cost: Total Cost: Total Cost:
109
B: Lawn Maintenance Bid for Wastewater Facilities
Bid Item B-1 Bid Item B-2 Bid Item B-3
Site: Site Location
Bid Price per
Application
of Pre and
Post
Emergent
Weed
Control for
Turf and
Bedding
Areas
Multiply by
Number of
Application
per year.
Multiply by
Number of
Application
Total Cost
per
location
Bid Price
Per
Application
of Weed
and Grass
Control
Hardscape
Areas
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
Bid Price
Per
Application
of
Fertilizer
Turf Area
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
Bid Price
Per
Application
of Mulch
for Open
or Closed
Beds
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
"Bid Price
Per Lawn
care Service
Mowing,
Line trim,
edging
blowing etc.
For Each
location"
Number of
Application
Multiply by
Number of
Application
Total Cost
per
location
1 Wynnewood Lift Station –
Located at 3422 Millbank 7 6 N/A N/A 25
2 Eastvale – Located at 4501
North Shore 7 6 N/A N/A 25
3 Waters Edge – Located at
7277A Waters Edge Dr. 7 6 N/A N/A 25
4
Iola – Located on Iola Ave.
across the street (North)
from 4233 Iola Ave.
7 6 N/A N/A 25
5
Cottonwood – Located
next to (South) 6005
Cypress Cove.
7 6 N/A N/A 25
6 Master Lift Station #1 –
Located at 6001 Main St. 7 6 N/A N/A 25
7 Ridgepointe – Located at
3700 Overlook Ct. 7 6 N/A N/A 25
8 Squires – Located at 7816
Underwood. 7 6 N/A N/A 25
9
Austin Ranch – Entrance
located at 5701 Plano
Parkway.
7 6 N/A N/A 25
10 Main WWTP – Located at
7500 Forrest Dr. 7 6 N/A 2 32
Total Cost: Total Cost: Total Cost: Total Cost: Total Cost:
110
INSURANCE REQUIREMENTS
CONTRACTOR’S LIABILITY INSURANCE: Without limiting any of the other obligations of
liabilities of the CONTRACTOR, the CONTRACTOR AND EACH SUBCONTRACTOR, at their own
expense, shall, during the term of the contract, purchase and maintain the hereinafter
stipulated minimum insurance with companies duly authorized to do business in the State of
Texas and satisfactory to the OWNER. Certificates of each policy, together with a statement by
the issuing company to the extent that said policy shall not be cancelled without 30 days prior
notice being given the OWNER, shall be delivered to the OWNER, before any work is started:
a) Worker’s Compensation only as required by Texas law, with the policy endorsed to
provide a waiver of subrogation as to the OWNER; Employer’s Liability Insurance of not
less than $100,000.00 for each accident.
b) Comprehensive general liability insurance, including independent contractor’s liability,
completed operations and contractual liability, covering, but not limited to the liability
assumed under the indemnification provisions of this contract, fully insuring
CONTRACTOR’S (or subcontractor’s) liability for injury to or death of OWNER’S
employees and third parties, extended to include personal injury liability coverage, and
for damage to property of third parties, with the following limits for each occurrence:
Injury or Death $1,000,000.00
Property Damage $ 500,000.00
The policy shall include broad form property damage coverage extended to apply to
completed operations, XCU exclusions removed. The completed operations coverage
must be maintained for a minimum of one year after completion and acceptance of the
work, with evidence of same filed with OWNER. Where work is being performed in
connection with an existing facility owned or leased by the OWNER, THE POLICY SHALL
INCLUDE FIRE LEGAL LIABILITY OF NOT LESS THAN $100,000.00 PER OCCURRENCE.
c) Comprehensive automobile and truck liability insurance, covering owned, hired and
non-owned vehicles, with minimum limits of $1,000,000.00, each occurrence, for bodily
injury and $500,000.00, each occurrence, for property damage, such insurance to
include coverage for loading and unloading hazards.
1.1 OWNER’S PROTECTIVE LIABILITY INSURANCE: In addition to the insurance described
above, the CONTRACTOR shall obtain, pay for and maintain at all times during the
prosecution of the work under this contract, an OWNER’S protective liability insurance
policy naming the OWNER and the Engineer as insureds for property damage and bodily
injury, including death, which may arise in the contract. Coverage shall be on an
“occurrence” basis, and the policy shall be issued by the same insurance company that
carries the CONTRACTOR’S liability insurance. Limits of liability shall be as follows:
Bodily Injury $1,000,000.00 per occurrence
Property Damage $ 500,000.00 per occurrence
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P a g e 1 | 24
1.2 POLICY ENDORSEMENTS AND SPECIAL CONDITIONS: Each insurance policy to be
furnished by CONTRACTOR shall include the following conditions by endorsement to the policy:
a) Each policy shall require that 30 days prior to the cancellation or any material
change in coverage, a notice thereof shall be given to the OWNER by certified mail;
b) The term “OWNER” shall include all authorities, boards, bureaus, commissions,
divisions, departments and office of the OWNER and the individual members,
employees and agents thereof in their official capacities, and/or while acting on
behalf of the OWNER; and
c) The policy phrase "other insurance” shall not apply to the OWNER where the
OWNER is an additional insured on the policy.
Concerning insurance to be furnished by CONTRACTOR, it is a condition precedent to
acceptability thereof that:
a) Any policy submitted shall not be subject to limitations, conditions or restrictions
deemed inconsistent with the intent of the insurance requirements to be fulfilled by
the CONTRACTOR. The OWNER’S decision hereon shall be final; and
b) All policies are to be written through companies duly authorized to transact that
class of insurance in the State of Texas.
CONTRACTOR agrees to the following
a) CONTRACTOR hereby waives subrogation rights for loss or damage to the extent
same are covered by insurance. Insurers shall have no right of recovery or
subrogation against the OWNER, it being the intention that the insurance policies
shall protect all parties to the contract and be primary coverage for all losses
covered by the policies;
b) Companies issuing the insurance policies and CONTRACTOR shall have no recourse
against the OWNER for payment of any premiums or assessments for any
deductibles, as all such premiums and deductibles are the sole responsibility and
risk of the CONTRACTOR.
c) Approval, disapproval or failure to act by the OWNER regarding any insurance
supplied by the CONTRACTOR (or any subcontractors) shall not relieve the
CONTRACTOR of full responsibility or liability for damages and accidents set forth in
or denial of liability by the insurance company exonerate the CONTRACTOR from
liability; and
d) No special payments shall be made for any insurance that the CONTRACTOR and
subcontractors are required to carry; all are included in the contract price and the
contract unity prices.
Any of such insurance policies required under this section may be written in combination with
any of the others, where legally permitted, but none of the specified limits may be lowered
thereby.
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P a g e 2 | 24
BID FORM
PROJECT IDENTIFICATION: Name of Bid Project
in the City of The Colony
BID # 66-20-11-Mowing & Landscaping
BID OF:
(NAME OF FIRM)
THIS BID IS SUBMITTED TO: City of The Colony (hereinafter called OWNER)
c/o Purchasing Agent
6800 Main Street
The Colony, Texas 75056-1133
CITY OF THE COLONY BID NO.:
1. The undersigned BIDDER proposes and agrees, if this Bid is accepted, to enter into an
agreement with OWNER in the form included in the Contract Documents to perform and
furnish all Work as specified or indicated in the Contract Documents for the Contract Price
and within the Contract Time indicated in this Bid and in accordance with the other terms
and conditions of the Contract Documents.
2. BIDDER accepts all of the terms and conditions of the Advertisement or Notice to Bidders
and Instructions to Bidders. This Bid will remain subject to acceptance for ninety (90) days
after the day of Bid opening. BIDDER will sign and submit the Agreement with other
documents required by the Bidding Requirements in an expeditious manner as not to delay
the project. The time for the preparation of the contract documents, insurance and
bonding is included in the total project time. The City agrees to execute the contracts
within three (3) days following receipt of adequate documents from the Contractor. No
extension of the contract time shall be allowed for failure to complete contract documents.
Work shall not be allowed to commence until contract documents are executed by both
parties.
3. In submitting this Bid, BIDDER represents, as more fully set forth in the Agreement, that:
a) BIDDER has examined copies of all the Bidding Documents and of the following
Addenda (receipt of all which is hereby acknowledged):
No: __________ __________ __________
Date: __________ __________ __________
Rec'd: __________ __________ __________
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CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2020-_______
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS,
AWARDING BIDS FOR ANNUAL MOWING SERVICES OF
WATER PRODUCTION TO HIGH QUALITY LANDSCAPING
AND MOWING SERVICES OF WASTE WATER TO BRIGHT
VIEW LANDSCAPING AS SPECIFIED IN THE ATTACHED
EXHIBIT “A”BID SUMMARY;AND PROVIDING AN
EFFECTIVE DATE
WHEREAS,the annual seasonal mowing services surrounding pump stations,
storage tanks, and lift stations is needed throughout the city; and
WHEREAS,bids were received and evaluated with a bidder selected for Water
Production projects and a separate bidder selected for Waste Water projects; and
WHEREAS,budgets for Water Production and Waste Water contains funding for
maintenance and seasonal mowing services.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS, THAT:
Section 1.As identified in Exhibit “A” the annual seasonal mowing
surrounding Water Production facilities is to be awarded to High Quality Landscaping for
$24,260 and annual mowing surrounding Waste Water facilities be awarded to Bright
View Landscaping for $20,460.47.
Section 2.The City Manager or his designee is authorized to issue
appropriate purchase orders(s) in accordance with the bid awarded.
Section 3.This resolution shall take effect immediately from and after its
passage.
PASSED AND APPROVED by the City Council of the City of The Colony, Texas,
this 5th day of May, 2020.
Joe McCourry, Mayor
ATTEST:
Tina Stewart, TRMC, City Secretary
114
APPROVED AS TO FORM:
Jeff Moore, City Attorney
115
Agenda Item No:4.5
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Robert Kotasek
Submitting Department: Engineering
Item Type: Ordinance
Agenda Section:
Subject:
Consider approving an ordinance to authorize a budget amendment to General Fund-CIP budget and transfer
$380,000.00 from the Office Creek Headwall Repair at Paige Rd. project to the Office Creek Stream Bank
Protection at Creek Hollow Drive project. (Hartline)
Suggested Action:
Summary of Request: Consider approval of an ordinance to approve a budget amendment to General Fund-CIP
budget and transfer $ 380,000.00 from the Office Creek Headwall Repair at Paige Rd. project to the Office
Creek Stream Bank Protection at Creek Hollow Drive project.
Background:
During an inspection of Office Creek performed by city staff in 2017, cracks were observed on the headwalls
and sidewalk along Paige Rd. and adjacent to Memorial Dr. To prevent the possibility of headwall and/or box
culvert failures, staff identified a Capital Improvement project to repair the headwalls at this location. A budget
of $ 380,000.00 was approved in the 2017-2018 General Fund-CIP budget for the design and construction
services to replace the headwalls.
After having an Engineer evaluate the headwalls later that year, it was determined that the headwalls are stable
and the cracks observed are not affecting the structural integrity of the walls. The headwalls are stable enough
to postpone repairs in this area so that another high priority stormwater project can be completed using this
funding. Staff is requesting that $ 380,000.00 be transferred from this project and be re-allocated to the Office
Creek Stream Bank Protection at Creek Hollow project.
The Office Creek Stream Bank project was previously approved by City Council and the contractor, Knight
Erosion Control, is currently installing R-Rap walls behind homes on Office Creek. The work also includes
installing reinforced concrete for the construction of a stream bed grade control structure, installing reinforced
concrete to protect the existing retaining wall footing and installing grouted rock riprap to protect the newly
graded slopes.
Due to numerous heavy rainfall events that have occurred this year and following a 100-year rainfall event that
occurred on March 13, 2020, the water levels in the Office Creek channel has risen to extremely high levels,
eroded the banks of the stream and saturated the bank soils . Shortly after the 100 year storm event, a slope
failure occurred on the channel wall that impacted the channel slope and part of a resident’s yard who lives at
4104 Creek Hollow Drive. Staff visited the site and deemed this failure and collapse as an emergency repair
situation. See attached photos showing this failure and collapse area.
Staff and the design engineer have determined that a design change is necessary due to the slope failure and a
Gravity Wall will be needed to support the R-Rap adjacent to the homeowner’s yard. Additional soil excavation,
drying, compaction and soil haul off will also be necessary due to the failure. A new fence will also be needed
along the back of the resident’s property. The emergency repairs needed to remove dirt from the stream and
116
temporary repairs to the resident’s yard have been completed. The engineer has also completed the design
plans for the new wall and the design was submitted to the contractor to price the work necessary based on the
new design.
The cost for the Contract Amendment to install this new Gravity/R-Rap wall and repair the slope failures is $
148,489.28. To fund the Contract Amendment, staff requests the $ 380,000.00 be transferred from the Office
Creek Headwall Repair at Paige Road project to the Office Creek Stream Bank Protection at Creek Hollow
Drive project. All remaining funds that are not used will be placed back into Fund 895 at the completion of the
project.
Recommendations:
Staff recommends approval of a budget amendment to the General Fund-CIP budget to transfer $ 380,000.00
from the Office Creek Headwall Repair at Paige project to the Office Creek Stream Bank Protection at Creek
Hollow Drive project.
Suggested motion:
I move to recommend an ordinance to approve a budget amendment to the General Fund-CIP budget to
transfer $ 380,000.00 from the Office Creek Headwall Repair at Paige Rd. project to the Office Creek Stream
Bank Protection at Creek Hollow Drive project.
Attachments:
Financial Summary
Photo 1 Failure and collapse area.
Photo 2 Failure and collapse area.
Photo 3 Failure and collapse area
Ord. 2020-xxxx BUDGET AMENDMENT General Fund-CIP.doc
117
FINANCIAL SUMMARY:
Are budgeted funds available: Yes No Budget Amendment Transfer Requested $380,000.00
Fund(s) number and Account #: 895
Source of Funds: General Fund-CIP
Cost of recommended budget transfer: $380,000.00
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119
120
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CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2020 -_______
AMENDING THE FISCAL YEAR 2019-2020 BUDGET
AN ORDINANCE AMENDING ORDINANCE 2019-2373, ADOPTING THE
FISCAL YEAR 2019-2020 BUDGET FOR THE GENERAL FUND-CIP OF
CITY OF THE COLONY, TEXAS BY REALIGNING BUDGETS AS SET
FORTH HEREIN; PROVIDING FOR INCORPORATION OF PREMISES;
PROVIDING FOR THE ADOPTION OF THIS ORDINANCE AMENDING
THE FISCAL YEAR 2019-2020 BUDGET FOR THE GENERAL FUND-CIP
OF THE CITY OF THE COLONY; PROVIDING THAT THIS ORDINANCE
SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING FOR A SAVINGS CLAUSE; AND
NAMING AN EFFECTIVE DATE.
WHEREAS, the Council of the City of The Colony is conducting business pursuant to a budget
for fiscal year 2019-2020, heretofore previously adopted by Ordinance No. 2019-2373 on the 17
th
day of September, 2019; and
WHEREAS, Section 102.010 of the Texas Local Government Code authorizes the governing
body of a municipality to make changes in the budget for municipal purposes; and
WHEREAS, the City of The Colony finds it in the best interest of the City to transfer, with in the
General Fund-CIP Fund, $380,000 from the Office Creek Headwall Repair at Paige Rd. project to
the Office Creek Stream Bank Protection at Creek Hollow Drive project.
WHEREAS, the City Council has reviewed the budget and has determined that a valid municipal
purpose is served by such budget increases and reallocation of funds.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS:
SECTION 1.
INCORPORATION OF PREMISES
The above and foregoing premises are incorporated into the body of this Ordinance as if
copied herein in their entirety.
SECTION 2.
AMENDMENT AND ADOPTION
That the General Fund-CIP budget for the fiscal year ending September 30, 2020 heretofore
previously adopted by Ordinance 2019-2373 duly enacted by the City Council of the City of The
Colony on the 17th day of September, 2019, be and is hereby amended as set forth herein, which
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2
amendment is hereby, in all respects, finally approved and adopted as so changed; and the same
shall be hereby filed with the City Secretary of the City of The Colony.
SECTION 3.
BUDGET INCREASES
That the 2019-2020 General Fund-CIP budget be amended by transferring $380,000 from Office
Creek Headwall Repair at Paige Rd. project to the Office Creek Stream Bank Protection at Creek
Hollow Drive project.
SECTION 4.
CUMULATIVE CLAUSE
This Ordinance shall be cumulative of all provisions of Ordinances of the City of The Colony,
Texas except where the provisions of this Ordinance are in direct conflict with the provisions of
such Ordinances, in which event the conflicting provisions of such Ordinances are hereby
repealed.
SECTION 5.
SEVERABILITY CLAUSE
It is hereby declared to be the intention of the City Council of The City of The Colony that the
phrases, clauses, sentences, paragraphs, and sections of this Ordinance are severable, and if any
phrase, clause, sentence, paragraph, or section of this Ordinance should be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such
unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, or
sections of this Ordinance, since the same would have been enacted by the City Council without
incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph,
or section.
SECTION 6.
SAVINGS CLAUSE
All rights and remedies of the City of The Colony are expressly saved as to any and all violations
of the provisions of any Ordinances affecting budgets, budget approval or adoption, which have
accrued at the time of the effective date of this Ordinance; and, as to such accrued violations and
all pending litigation, both civil and criminal, whether pending in court or not, under such
Ordinances, same shall not be affected by this Ordinance but may be prosecuted until final
disposition by the courts.
SECTION 7.
EFFECTIVE DATE
This Ordinance shall be in full force and effect from and after its date of passage.
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3
PASSED AND APPROVED by the City Council of the City of The Colony, Texas,
this 5th day of May, 2020.
__________________________________
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
__________________________________
Tina Stewart, TRMC, City Secretary
APPROVED AS TO FORM:
Jeff Moore, City Attorney
City of The Colony, Texas
124
Agenda Item No:4.6
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Robert Kotasek
Submitting Department: Engineering
Item Type: Resolution
Agenda Section:
Subject:
Consider approving a resolution authorizing the City Manager to execute a contract amendment in the amount
of $ 148,489.28 with Knight Erosion Control for the Office Creek Stream Bank Stabilization project. (Hartline)
Suggested Action:
Summary of Request:
Consider approval of a resolution authorizing the City Manager to execute a Contract Amendment in the amount
of $ 148,489.28 with Knight Erosion Control (KEC) for the Office Creek Stream Bank Stabilization project.
Background:
The Office Creek Stream Bank project was previously approved by City Council and Knight Erosion Control is
currently installing R-Rap walls behind homes on Office Creek. The work also includes installing reinforced
concrete for the construction of a streambed grade control structure, installing reinforced concrete to protect
the existing retaining wall footing and installing grouted rock riprap to protect the newly graded slopes.
Due to numerous heavy rainfall events that have occurred this year and following a 100-year rainfall event that
occurred on March 13, 2020, the water levels in the Office Creek channel have risen to extremely high levels,
eroded the banks of the stream and saturated the bank soils . Shortly after the 100-year storm event, a slope
failure occurred on the channel wall that impacted the channel slope and part of a resident’s yard who lives at
4104 Creek Hollow Drive. Staff visited the site and deemed this failure and collapse as an emergency repair
situation. See attached photos showing this failure and collapse area.
Staff and the design engineer have determined that a design change is necessary due to the slope failure and a
Gravity Wall will be needed to support the R-Rap adjacent to the homeowner’s yard. Additional soil excavation,
drying, compaction and soil haul off will also be necessary due to the failure. A new fence will also be needed
along the back of the resident’s property. The emergency repairs needed to remove dirt from the stream and
temporary repairs to the resident’s yard have been completed. The engineer has completed the design plans
for this new wall and the new design was submitted to the contractor to price the work required based on the
new design.
The cost for the Contract Amendment to install this new Gravity/R-Rap wall and repair the slope failure is $
148,489.28. The existing construction services contract is for $ 544,061.00 and with this contract amendment,
the total funding will be increased to $ 692,550.28.
Recommendations:
Staff recommends approval of a Contract Amendment in the amount of $ 148,489.28 with Knight Erosion
Control for the Office Creek Stream Bank Stabilization project.
Suggested motion: 125
I move to recommend a resolution to approve a Contract Amendment in the amount of $ 148,489.28 with Knight
Erosion Control for the Office Creek Stream Bank Stabilization project.
Attachments:
Financial Summary
Photo 1 Failure and collapse area
Photo 2 Failure and collapse area
Photo 3 Failure and collapse area
Contract Amendment #1
Res. 2020-xxx Contract Amendment - Knight Erosion Control.docx
126
FINANCIAL SUMMARY:
Are budgeted funds available: Yes Amount budgeted/available: $1,027,681.00
Fund(s) number and Account #: 895
Source of Funds: General-CIP Fund
Cost of recommended Contract Amendment: $ 148,489.28
Total estimated project cost:
$ 544,061.00 Construction Contract Already authorized Yes No
$ 148,489.28 Construction Contract Amendment Already authorized Yes No
$ 692,550.28 Total estimated costs
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133
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CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2020-_______
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONSTRUCTION SERVICES CONTRACT AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF THE COLONY AND KEC
RETAINING WALLS & CONSTRUCTION, INC., DBA KNIGHT
EROSION CONTROL, FOR THE OFFICE CREEK STREAM BANK
STABILIZATION PROJECT, WHICH IS ATTACHED HERETO AND
INCORPORATED HEREIN AS EXHIBIT “A”; AND PROVIDING AN
EFFECTIVE DATE.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS, THAT:
Section 1.That the City Manager of the City of The Colony, Texas, is hereby authorized
and empowered to execute acontractamendment in the amount of $148,489.28to the Construction
Services Contract entered into on August 20, 2019, with KEC Retaining Walls & Construction,
Inc., for the Office Creek Stream Bank Stabilization project.
Section 2.That a true and correct copy of the amendment is attached hereto and
incorporated herein as Exhibit “A”.
Section 3.This resolution shall take effect immediately from and after its passage.
PASSED AND APPROVED by the City Council of the City of The Colony, Texas, this 5th
day of May, 2020.
_____________________________
ATTEST:Joe McCourry, Mayor
City of The Colony, Texas
Tina Stewart, TRMC, City Secretary
APPROVED AS TO FORM:
Jeff Moore, City Attorney
136
Agenda Item No:4.7
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Tod Maurina
Submitting Department: General Admin
Item Type: Discussion
Agenda Section:
Subject:
Consider approving an Electric Line Easement and Right-of-Way Agreement by and between Denton County
Electric Cooperative, Inc., d/b/a CoServ Electric, The Colony Economic Development Corporation, The Colony
Community Development Corporation, and The Colony Local Development Corporation concerning a 15’
CoServ Electric Easement on 0.411 acres of land in the Thomas West Survey, Abstract No. 1344, City of The
Colony, Denton County, Texas. (Maurina).
Suggested Action:
Attachments:
CoServ 15' Electric Easement - LDC.pdf
137
138
139
140
141
142
143
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Agenda Item No:4.8
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Mayra Sullivan
Submitting Department: General Admin
Item Type: Discussion
Agenda Section:
Subject:
Consider approving an Electric Line Easement and Right-of-Way Agreement by and between Denton County
Electric Cooperative, Inc., d/b/a CoServ Electric, The Colony Community Development Corporation, and The
Colony Local Development Corporation concerning a 20’ CoServ Electric Easement on 0.477 acres of land in
the Thomas West Survey, Abstract No. 1344, City of The Colony, Denton County, Texas. (Maurina).
Suggested Action:
Attachments:
CoServ 20' Electrical Easement - LDC.pdf
146
147
148
149
150
151
152
153
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Agenda Item No:4.9
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Mayra Sullivan
Submitting Department: Parks & Recreation
Item Type: Discussion
Agenda Section:
Subject:
Consider approving a Trail Easement with The Colony Local Development Corporation concerning a 0.6051
acres of land in the B.B.B. & C.R.R. Co. Survey, Abstract No. 174, City of The Colony, Denton County, Texas.
(Morgan)
Suggested Action:
Attachments:
PARD Trail Easement - LDC.pdf
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159
160
161
162
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164
Agenda Item No:5.1
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Isaac Williams
Submitting Department: Engineering
Item Type: Ordinance
Agenda Section:
Subject:
Conduct a public hearing, discuss and consider an ordinance amending Planned Development-16 District
(PD-16), to permit and provide development standards for off-premises/billboard signage located at 5733 SH
121 within Lot 5A, Block A (Village at 121 shopping center) within the Planned Development-16 District and the
Gateway Overlay District. (Williams)
Suggested Action:
Please see the attached staff report, drawings, maps and illustrations for detailed land use, site layout and staff
recommendations.
Attachments:
Staff Report PDA Billboards.doc
PDA19-0002.pdf
Amending PD Ordinance exhibits only final.pdf
Development Agreement for Billboard Site.doc
Ord. 2020-xxxx PD16 Village Billboard Signage.docx
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CITY COUNCIL REPORT
AGENDA DATE:April 7, 2020
DEPARTMENT:Development Services Department
SUBJECT –PDA19-0002 Planned Development 16 Amendment (Off-Premises/Billboard Sign)
Conduct a public hearing, discuss and consider an ordinance amending Planned Development-16
District (PD-16), to permit and provide development standards for off-premises/billboard signage
located at 5733 SH 121 within Lot 5A, Block A (Village at 121 shopping center) within the Planned
Development-16 District and the Gateway Overlay District.
OWNER/ENGINEER
Owner:Ron Aveneri Dallas, Texas
Applicant:L. Lynn Kadleck Plano, Texas
EXISTING CONDITION OF PROPERTY
Planned Development 16 is an approximately 260-acre zoning district bound by SH 121 to the
South, Memorial Drive to the North, Paige Road to the West and the BNSF Railroad to the East.
The PD is divided into Tracts A, B, C, D and E with land uses permitted within the Business Park
(BP) and General Retail (GR) district. The area is mostly developed with some vacant areas left
within Tracts B, D and E.
The subject site is located within Tract D between South Colony Boulevard and Morning Star
Drive. This tract contains the Village at 121 commercial development, which features restaurants,
retail and office establishments, in all, approximately 23 acres under single ownership within the
district.
PROPOSED REQUEST
Originally PD-16 zoning was adopted in 1999. Since then, several amendments have been approved
for this PD allowing specific design standards and land use updates.
This text amendment is to allow an approximately 672 square foot digital off-premise/billboard sign
on Lot 5A, Block A which is located in Tract D specifically within the frontage of 5733 SH121.
The proposed amendment contains development standards applicable to the development of the
sign. However no other land use amendments are proposed at this time, and the site will still allow
commercial land uses as outlined in the PD-16 Ordinance. The applicant has indicated that the
intent of the signage will be to offer additional on-premises messaging for establishments within the
Village at 121 development in addition to off-premises messaging for establishments elsewhere
within the City.
BACKGROUND
The original Planned Development-16 (Ordinance 99-1129) and subsequent amendments are silent
on signage regulations for the site, thus the citywide signage regulations prevail.
Section 6-263 Definitions identifies the following as a billboard:
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“An off-premises sign that directs attention to a business, commodity, service, or
entertainment conducted, sold, or offered at a location other than the premises on
which the sign is located.”
Section 6-258 lists billboard sign types, as defined above, as prohibited within the City. Texas
Department of Transportation (TxDot) map records reflect the nearest sign (north of SH 121) to the
proposed location is approximately 2,700 feet to the east near the City limit line and SH 121
(located within the city limits of Frisco).
Currently the City has three billboard sign- two permitted with the creation of a unified
development site (Planned Development-25 a.k.a. Grandscape south of the subject site). A third
sign is considered non-conforming and existed prior to the current prohibition of billboard signs.
A billboard at the proposed location had previously been contemplated, however no formal action
was taken to permit the sign type. As proposed, the amendment is intended to update the existing
planned development ordinance to specifically permit the billboard at the specific location reflected
within the exhibits of the amending ordinance.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The applicants request was originally scheduled for the November 26th Planning Commission
meeting, but ultimately heard on December 10, 2019. At that time the Planning Commission
approved a motion to leave the public hearing open until the January 14, 2020 meeting to allow the
applicant and staff to further evaluate and reconsider the proposed sign location (additional time to
address the location was granted by the Planning Commission to the March 10, 2020 Planning
Commission meeting). No further notification was required as the public hearing remained open.
On March 10, 2020 The Planning and Zoning Commission voted 7-0 to recommend approval with
conditions the amendments to Planned Development-16 to permit and provide development
standards for off-premises/billboard signage located at 5733 SH 121 within Lot 5A, Block A
(Village at 121 shopping center). Specifically, the Commission the recommends the conditions to
establish a sign use development agreement that would outline use of PSAs, the City of the Colony
events, and the appropriation of City messaging [equal to prime advertisers].
CONSIDERATIONS
1. The proposed amendment reflects the approximately 672 square-foot digital sign contains a
maximum height of 42.5 feet and sign area dimension of 48 feet (wide) by 14 feet (tall). The
support will consist of a single pole clad in brick consistent with the color and style present
on the primary building façade and the existing on-premises pylon sign to the west.
The proposed amendment provides a site plan reflecting the location of the proposed
billboard. The location is within a landscaped island at the easternmost of three SH 121
access points to the site (midway between the South Colony Drive Diverging Diamond
Interchange (DDI) and Morning Star Drive). As reflected the billboard will be oriented
perpendicular to the Service Road, extending to the north over an existing drive aisle.
2. The applicant provided an updated narrative and supporting illustrations and pictures
reflecting the evaluation and reconsideration of the proposed location. The applicant
indicates that other locations within the site were evaluated as options for the proposed
signage. The locations include an adjacent landscape island north and across the access aisle
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from the current location. Another location is an area behind the primary building. Staff met
the applicant onsite to discuss the proposed locations and conducted a drive around the site
for spatial reference. The applicant expressed that the location behind the primary building
is a “non-starter” as there would be no functional visibility of the sign messaging, and would
thus garner little to no interest from clients. The second location offers more visibility than
the rear location, but certainly less than the originally proposed location. Additionally the
proposed sign location is consistent with other freestanding signage spacing along the SH
121 Service Road.
Given further spatial evaluation from the original submittal, visibility from the west is
encumbered by the Diverging Diamond Interchange (DDI), and offers only a marginal
amount of additional messaging to the site. Westbound visibility from SH 121 is limited due
to the varied elevations of the roadway. Staff observed optimal visibility generally occurs
just beyond the South Colony Boulevard NTTA toll plaza near Morning Star Drive.
Therefore when coupled with the existing freestanding signage, the additional signage does
not appear to offer an overabundance or excessive amount of messaging from the site.
NOTIFICATION
A notice of public hearing was published in the local newspaper on November 15, 2019 a minimum
of 10 (ten) days prior to the public hearing. In addition, Zoning Ordinance also requires notification
of property owners located within 200 feet of the subject property a minimum of ten (10) days prior
to the public hearing. Public hearing notices were mailed to adjacent property owners on
November 15, 2019 for the Planning and Zoning Commission meeting; notices for the City Council
were published on March 20, 2020. No responses either for or against the Planned Development
Amendment were received as of printing of this packet.
OPTIONS
1. Approve as submitted.
2. Approve with conditions.
3. Deny.
4. Postpone consideration.
5. Table item.
DEVELOPMENT REVIEW COMMITTEE REVIEW
Staff has no objection to the request as proposed for a Planned Development Amendment to allow a
billboard on Lot 5A, Block A with the conditions as set forth by the Planning and Zoning
Commission.
ATTACHMENTS
1. Location Map
2. Proposed Amending Ordinance and exhibits
3. Written Narrative
4. Photos
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This map was generated by G IS data provided by The C olony GIS Department. The City of The Colony does not guarantee the correctness oraccuracy of any f eatures on t his map. T hes e digital products ar e for llus tration purposes only and are not s uitable for site-s pecific dec is ion making. /Pro je ct N o . PDA 1 9-0 00 2 - Pro j ec t Name: PD 16 Village at 121
Subj ec t Are a
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PD 16 Vil lage at 121
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Offic e D istr ict 1
Pl anned Development
Shopping C enter
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Tow nhom e
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Development Agreement for Off-Premises Billboard
STATE OF TEXAS §DEVELOPMENT AGREEMENT FOR
§FOR OFF-PREMISES BILLBOARD
COUNTY OF DENTON §
This Development Agreement for Off-Premises Billboard (“Agreement”) is entered into
this ______ day of ___________, 2020, by and among TMGN 121, LLC, (“Owner”), and the
City of The Colony, Texas (“City”). Owner and the City are sometimes referred herein together
as the “Parties” and individually as a “Party.”
Recitals:
1.This Agreement is made to facilitate the development in the City of a billboard on
approximately 560 square feet of land owned by TMGN 121, LLC, which land and planned
billboard are shown on Exhibit A attached hereto (hereinafter referred to as “Billboard Site”), as
approved by the City for PD-16 for application No. PDA19-0002.
2.In consideration of the matters provided for in this Agreement, Owner will
construct a billboard on the Billboard Site and will license and allow the City the use of said
billboard in accordance with this Agreement.
NOW, THEREFORE, for and in consideration of the above and foregoing premises, the
benefits to each of the Parties from this Agreement, and other good and valuable consideration,
the sufficiency of which is hereby acknowledged and agreed, Owner and the City do hereby
agree as follows:
Section 1.Incorporation of Premises. The above and foregoing Recitals are true
and correct and are incorporated herein and made a part hereof for all purposes.
Section 2.Effective Date. This Agreement shall be effective as of the date of
execution of this Agreement by the last of the Parties to do so (“Effective Date”).
Section 3.Term. This Agreement shall remain in full force and effect from the
Effective Date until terminated by the mutual agreement of all of the Parties in writing, or until the
billboard is no longer in place and operating, whichever shall first occur (“Term”).
Section 4.Development Agreements.Owner and the City agree as follows:
A.The City is granted a license by Owner to have displayed upon the billboard on
the Billboard Site depicted in Exhibit A, attached hereto, as stated in this
Agreement. Such Billboard Site shall be maintained and operated by Owner and
the City shall have no obligations regarding maintenance and operation of the
Billboard Site in any manner.
B.City shall have the right, at no cost to the City, to use ten percent (10%) of all
LED Display rotation time ("City Display Time") for advertising slots on the LED
Displays and to place public service messages on the LED Displays. Owner
agrees to schedule City Display Time during the same times of day as for
Owner’s prime advertisers and not only during the night from 10:00 p.m. to 5:00 174
Development Agreement for Off-Premises Billboard
a.m. City agrees that its messages on the LED Displays shall be City-sponsored
public service announcement messages. City agrees that City Display Time shall
not be used by or sold to any third parties who are not City-affiliated
governmental entities. City shall also have the right to post during City Display
Time emergency public messages, amber alert messages and silver alert messages
on the LED Displays for a reasonable period of time or as otherwise required by
law,
Section 5.Miscellaneous.
A.This Agreement and any dispute arising out of or relating to this Agreement shall
be governed by and construed in accordance with the laws of the State of Texas, without reference
to its conflict of law rules. In the event of any dispute or action under this Agreement, venue for
any and all disputes or actions shall be instituted and maintained in Denton County, Texas.
B.It is acknowledged and agreed by the Parties that the terms hereof are not
intended to and shall not be deemed to create a partnership, joint venture, joint enterprise, or
other relationship between or among the Parties.
C.In the event any one or more of the provisions contained in this Agreement shall
for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect other provisions, and it is the intention of the
Parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or
unenforceable, a provision shall be added to this Agreement which is legal, valid and enforceable
and is as similar in terms as possible to the provision found to be illegal, invalid or
unenforceable.
D.The rights and remedies provided by this Agreement are cumulative and the use
of any one right or remedy by either Party shall not preclude or waive its right to use any or all
other remedies. Said rights and remedies are given in addition to any other rights the Parties may
have by law, statute, ordinance, or otherwise. The failure by any Party to exercise any right,
power, or option given to it by this Agreement, or to insist upon strict compliance with the terms
of this Agreement, shall not constitute a waiver of the terms and conditions of this Agreement
with respect to any other or subsequent breach thereof, nor a waiver by such Party of its rights at
any time thereafter to require exact and strict compliance with all the terms hereof. Any rights
and remedies any Party may have with respect to the other Party arising out of this Agreement
shall survive the cancellation, expiration or termination of this Agreement, except as otherwise
expressly set forth herein.
E.All exhibits to this Agreement are incorporated herein by reference for all
purposes wherever reference is made to the same.
F.Any of the representations, warranties, covenants, and obligations of the Parties,
as well as any rights and benefits of the Parties, pertaining to a period of time following the
termination or expiration of this Agreement shall survive termination or expiration.
G.This Agreement is made subject to the existing provisions of the Charter of the
City of The Colony, its present rules, regulations, procedures and ordinances, and all applicable
laws, rules, and regulations of the State of Texas and the United States.175
Development Agreement for Off-Premises Billboard
H.The undersigned officers and/or agents of the Parties hereto are the properly
authorized persons and have the necessary authority to execute this Agreement on behalf of the
Parties hereto.
I.This Agreement may be only amended or altered by written instrument signed by
the Owner and the City.
J.Neither Party shall have the right to assign or transfer this Agreement, in whole or in
part, without the previous written permission of the other Party.
K.The headings and captions used in this Agreement are for the convenience of the
Parties only and shall not in any way define, limit or describe the scope or intent of any
provisions of this Agreement.
L.This Agreement is the entire agreement between the Parties with respect to the
subject matters covered in this Agreement. There are no other collateral oral or written
agreements between the Parties that in any manner relates to the subject matter of this
Agreement, except as provided or referenced in this Agreement.
M.The parties to this Agreement agree that the City is not contracting for, or
promising to, approve any zoning change application or any plat application, and that the City
retains its complete lawful discretion to approve or deny any zoning change and/or plat
application based on the level of discretion provided the City by law for the particular decision
under consideration. Nothing in this Agreement is or should be considered or construed as
contract zoning or the bargaining away of the City’s governmental discretion.
EXECUTED by the Parties on the dates set forth below, to be effective as of the date
first written above.
TMGN 121, LLC
By:
[name]
Date:
CITY OF THE COLONY, TEXAS
By:
City Manager
Date:
ATTEST:
By:
City Secretary
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Development Agreement for Off-Premises Billboard
EXHIBIT “A”
Billboard Site Plan
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CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2020 -________
AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AMENDING PLANNED
DEVELOPMENT 16 ORDINANCE NO. 991129, BY ALLOWING AN OFF PREMISES
FREE STANDING BILLBOARD TO BE LOCATED ON LOT 5A, BLOCK A, VILLAGE
AT 121 ADDITION, MORE SPECIFICALLY SHOWN ON EXHIBIT B, ATTACHED
HERETO AND INCORPORATED HEREIN; PROVIDING A SEVERABILITY
CLAUSE; PROVING A SAVINS CLAUSE; PROVIDING A PENALTH OF A FINE NOT
TO EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH AND EVERY
OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 211.006(a) of the Texas Local Government Code requires the City
of the Colony, Texas, to publish notice of a public hearing concerning a zoning amendment before
the 15th day before the date of the public hearing; and
WHEREAS,Appendix A, Section 24-101(d) of the Code of Ordinances of the City of The
Colony, Texas, provides the following, “A public hearing shall be held by city council before
adopting any proposed amendment, supplement or change. Notice of such hearing shall be given
per the publication policy of the city, stating the time and place of such hearing, and shall be
published a minimum of 15 days prior to the date of the public hearing;”and
WHEREAS,the Planning and Zoning Commission and the City Council of the City of the
Colony, Texas, in compliance with the laws of the State of Texas, and the Code of Ordinances of
the City of The Colony, Texas, have given the requisite notices by publication and otherwise, and
have held due hearings and afforded a full and fair hearing to all property owners generally and to
all persons interested, and the City Council of the City of The Colony, Texas, is of the opinion and
finds that said changes should be granted, and that the Code of Ordinances should be amended.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS:
SECTION 1.The findings set forth above are incorporated into the body of this Ordinance
as if fully set forth herein.
SECTION 2.That an Off Premises Billboard shall be permitted on the property described
on Exhibit A attached hereto, with the Development Standards indicated on Exhibit B attached
hereto, and at the location in accordance with the plan attached hereto as Exhibit C;
SECTION 3.If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance, or application thereto any persons or circumstances is held invalid or unconstitutional
by a Court of Competent jurisdiction, such holding shall not affect the validity of the remaining
portions of his Ordinance; and the City Council hereby declares it would have passed such
remaining portions of this Ordinance despite such invalidity, which remaining portions shall
remain in full force and effect.
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SECTION 4.That all provisions of the ordinances of the City of The Colony, Texas, in
conflict with the provisions of this ordinance by, and the same are hereby amended, repealed, and
all other provisions of the ordinances of the City not in conflict with the provisions of this
ordinance shall remain in force and effect.
SECTION 5.Any person, firm, or corporation violating any of the provisions of this
ordinance shall be deemed guilty of a misdemeanor and. Upon conviction in the municipal court
of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Two
Thousand Dollars ($2,000.00) for each offense. Every day a violation occurs shall constitute a
separate offense.
SECTION 6.This Ordinance shall become effective from and after its date of passage in
accordance with law.
PASSED AND APPROVED by the City Council of the City of The Colony, Texas,
this 5th day of May, 2020.
Joe McCourry, Mayor
ATTEST:
Tina Stewart, City Secretary
APPROVED AS TO FORM:
Jeff Moore, City Attorney
179
Agenda Item No:6.1
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Mayra Sullivan
Submitting Department: City Secretary
Item Type: Miscellaneous
Agenda Section:
Subject:
A. Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas Government
Code to seek legal advice from the city attorney regarding pending or contemplated litigation - Appeal of Brazos
Electric Power Cooperative, Inc., PUC Docket No. 45175 and City of The Colony, Texas v. Brazos Electric
Power Cooperative, Inc. matter, Cause No. 16-06424-16, and related agreement with Lonzar Delaware, Inc, a
Delaware corporation.
B. Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas Government
Code to seek legal advice from the city attorney regarding drainage impact fee reimbursement issue – JNC
Properties LLC and Flournoy Development Company, LLC matters.
C. Council shall convene into a closed executive session pursuant to Section 551.072 of the Texas
Government Code to deliberate the purchase, exchange, lease, or value of real property.
D. Council shall convene into a closed executive session pursuant to Section 551.087 of the Texas
Government Code regarding commercial or financial information the city has received from a business
prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s).
Suggested Action:
Attachments:
180
Agenda Item No:7.1
CITY COUNCIL Agenda Item Report
Meeting Date: May 5, 2020
Submitted by: Mayra Sullivan
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section:
Subject:
A. Any action as a result of executive session regarding pending or contemplated litigation - Appeal of Brazos
Electric Power Cooperative, Inc., PUC Docket No. 45175 and City of The Colony, Texas v. Brazos Electric
Power Cooperative, Inc. matter, Cause No. 16-06424-16, and related agreement with Lonzar Delaware, Inc, a
Delaware corporation.
B. Any action as a result of executive session regarding drainage impact fee reimbursement issue – JNC
Properties LLC and Flournoy Development Company, LLC matters.
C. Any action as a result of executive session regarding the purchase, exchange, lease, or value of real
property.
D. Any action as a result of executive session regarding commercial or financial information the city has
received from a business prospect(s).
Suggested Action:
Attachments:
181