HomeMy WebLinkAbout2021 0615
CITY OF THE COLONY
CITY COUNCIL AGENDA
TUESDAY, JUNE 15, 2021
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, JUNE 15, 2021 at CITY HALL and via VIDEO
CONFERENCE, 6800 MAIN ST., THE COLONY, TX, at which time the following items will be
addressed:
One or more members of the City Council may participate in this meeting remotely via videoconference.
This meeting notice and agenda are posted online at www.thecolonytx.gov.
The City Hall Council Chambers will be open for this meeting 30 minutes prior to its start but in light of
ongoing public health concerns, we encourage residents to stay home and watch proceedings online via
the City’s website www.thecolonytx.gov. Residents may also watch via Spectrum Governmental Access
Channel 16. (Please note: The City has been working closely with Spectrum on an intermittent sound
quality issue and listeners may not be able to hear the meeting thru Channel 16). If you wish to address
the City Council in person, you can do so by attending the meeting at City Hall. If you wish to have
comments added to the council minutes about issues on the Agenda, may submit their comments to the
City Secretary Office via email or on the city website
1.0 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 Items of Community Interest
2.0 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.
3.0 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 Receive a presentation and update from Next Steps The Colony. (Perez)
3.2 Receive annual update on the Volunteer Assistance and Tool Lending Programs. (Perez)
REGULAR SESSION of the CITY COUNCIL Agenda
Meeting Date: 06/15/2021
Page - 2
3.3 Discuss and provide direction to staff regarding food trucks and their hours of operation within city
limits. (Perez)
3.4 Council to provide direction to staff regarding future agenda items. (Council)
4.0 CONSENT AGENDA
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 June 1, 2021 and Special
Session meeting minutes for June 7, 2021. (Stewart)
4.2 Consider accepting board member Joe McCourry's resignation from the Hotel Development
Corporation, Local Development Corporation and Tax Increment Reinvestment Zone Number
One. (Council)
4.3 Consider accepting Danielle Mathews' resignation from the Board of Adjustment. (Council)
4.4 Consider approving an ordinance authorizing the City Manager to approve a budget amendment to
increase the approved Fiscal Year 2020-2021 Lake Parks Capital Improvement fund in the amount
of $115,000.00 for the Stewart Creek Park Boat Ramp Bypass Road project, with funding from the
Lake Park Fund. (Morgan)
4.5 Consider approving a resolution authorizing the City Manager to execute an Amendment of
Contractor’s Contract with RoeschCo Construction, Inc. for the Stewart Creek Park Boat Ramp
Bypass Road project, in the amount of $129,995.57 with funding from the Lake Parks account.
(Morgan)
5.0 REGULAR AGENDA ITEMS
5.1 Discussion and consideration of all matters incident and related to the issuance and sale of "City of
The Colony, Texas, Combination Tax and Limited Surplus Revenue Certificates of Obligation,
Series 2021", including the adoption of an ordinance authoring the issuance of such certificates of
obligation. (Miller)
6.0 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 and Section 551.087 of the Texas
Government Code to deliberate commercial or financial information the City has received from a
business prospect, and to deliberate the offer of a financial or other incentive to a business prospect
– Nebraska Furniture Mart - LMG Ventures, LLC, and TXFM, Inc.
B. Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas
Government Code regarding contemplated litigation, including commencement of Chapter 54 of
the Texas Local Government Code cause of action, concerning 7413 Water’s Edge Court.
Agenda Item No:1.5
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Mayra Sullivan
Submitting Department: City Secretary
Item Type: Miscellaneous
Agenda Section:
Subject:
Items of Community Interest
Suggested Action:
Attachments:
4
Agenda Item No:3.1
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Joe Perez
Submitting Department: General Admin
Item Type: Presentation
Agenda Section:
Subject:
Receive a presentation and update from Next Steps The Colony. (Perez)
Suggested Action:
Attachments:
5
Agenda Item No:3.2
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Joe Perez
Submitting Department: General Admin
Item Type: Presentation
Agenda Section:
Subject:
Receive annual update on the Volunteer Assistance and Tool Lending Programs. (Perez)
Suggested Action:
Attachments:
6
Agenda Item No:3.3
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Joe Perez
Submitting Department: General Admin
Item Type: Discussion
Agenda Section:
Subject:
Discuss and provide direction to staff regarding food trucks and their hours of operation within city limits.
(Perez)
Suggested Action:
Currently, if not allowed through planned development regulations or special event application, food trucks are
allowed by ordinance to operate a maximum of three hours at any given location within the city unless given
permission to extend their hours of operation by the City Manager. Recently staff has received requests from a
few food truck operators wanting to operate their business in primarily commercial/high traffic areas of the city
for longer than what is allowed by ordinance. This item is to discuss/receive direction on whether to allow
extended hours of operation for food truck operators requesting to do so outside of a PD or special event.
Attachments:
7
Agenda Item No:3.4
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Mayra Sullivan
Submitting Department: City Secretary
Item Type: Miscellaneous
Agenda Section:
Subject:
Council to provide direction to staff regarding future agenda items. (Council)
Suggested Action:
Attachments:
8
Agenda Item No:4.1
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Mayra Sullivan
Submitting Department: City Secretary
Item Type: Minutes
Agenda Section:
Subject:
Consider approving City Council Regular Session meeting minutes for June 1, 2021 and Special Session
meeting minutes for June 7, 2021. (Stewart)
Suggested Action:
Attachments:
June 1, 2021 DRAFT Minutes.docx
June 7, 2021 Board Interview Minutes DRAFT.doc
9
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
JUNE 1, 2021
The Regular Session of the City Council of the City of The Colony, Texas, was called to order
at 6:32 p.m. on the 1
st day of June 2021, at City Hall, 6800 Main Street, The Colony, Texas,
with the following roll call:
Joe McCourry, Mayor
Kirk Mikulec, Deputy Mayor Pro Tem
Richard Boyer, Mayor Pro Tem
Brian Wade, Councilmember
David Terre, Councilmember
Perry Schrag, Councilmember
Joel Marks, Councilmember
Present
Present
Present
Present
Present
Present
Present (arrived at 6:10 p.m.)
And with 7 council members present a quorum was established and the following items were
addressed in this meeting remotely via videoconference.
1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS
1.1 Call to Order
Mayor McCourry called the meeting to order at 6:32 p.m.
1.2 Invocation
Elder Wade Raper with Bethel Fellowship Church 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 Items of Community Interest
1.5.1 Receive presentation from Parks and Recreation regarding upcoming events and
activities.
Special Events Coordinator, Lindsey Stansell, provided upcoming events and
activities to the Council.
Councilmember Marks arrived at 6:41 p.m.
2.0 CITIZEN INPUT
None
10
City Council – Regular Meeting Agenda
June 1, 2021
Page| 2
3.0 WORK SESSION
3.1 Receive a presentation and update from CASA of Denton County.
Debra Jensen, Executive Director of Casa Denton County, provided an overview
on this item to Council.
3.2 Discuss options for upcoming Independence Day Parade and provide direction to
staff for future parade plans.
Director of Government Relations, Brant Shallenburger, briefed Council on this
item. Special Events Supervisor, Lindsey Stansell, reviewed activities in addition
to the Liberty by the Lake Events and the Veteran's Day Parade. Due to the
Volunteers of America Classic LPGA Tournament Ms. Stansell, presented three
options with regard to the Veteran’s Day Parade: 1) Continue with parade as
normal, 2) Move the parade to Sunday or 3) Cancel the parade.
Council provided discussion on this item and recommended staff to cancel the
parade this year but not on a permanent basis.
3.3 Council to provide direction to staff regarding future agenda items.
None
4.0 CONSENT AGENDA
Motion to approveall items from the Consent Agenda-Marks; second bySchrag,motion carried
with all ayes.
4.1 Consider approving City Council Regular Session meeting minutes for May 15,
2021.
4.2 Consider approving Council expenditures for the month of April 2021.
4.3 Consider accepting Julie Knapp’s resignation from the Board of Adjustment.
4.4 Consider accepting Donna Cole’s resignation from the Community Development
Corporation.
4.5 Consider accepting Connie Roberts, Kathleen Rainey and Joseph Fried’s
resignation from Keep The Colony Beautiful Board.
4.6 Consider accepting Detrick DeBurr and Mark Holliday’s resignation from Planning
and Zoning Commission.
11
City Council – Regular Meeting Agenda
June 1, 2021
Page| 3
4.7 Consider approving a resolution authorizing the Assistant City Manager to approve
a Storm Recovery payment to Gexa Energy for ancillary charges during the winter
storm.
RESOLUTION NO. 2021-035
4.8 Consider approving a resolution authorizing the City Manager to approve an
interlocal agreement with the City of Southlake for the purchase of goods and
services.
RESOLUTION NO. 2021-036
4.9 Consider approving a resolution authorizing the City Manager to deny CoServ Gas
Ltd's requested rate change.
RESOLUTION NO. 2021-037
4.10 Consider approving a resolution authorizing the City Manager to execute a
Construction Services Contract in the amount of $1,068,192.00 with Quality
Excavation, Ltd. for the Phase 10 Residential Street Reconstruction Project.
Director of Engineering, Ron Hartline, presented the proposed resolution to
Council.
Motion to approve- Boyer; second by Marks, motion carried with all ayes.
RESOLUTION NO. 2021-038
4.11 Consider approving a resolution authorizing the City Manager to execute a
Construction Services Contract in the amount of $130,105.95 with KDA
Contractors, Inc. for the Painter Street Cul-De-Sac Project.
RESOLUTION NO. 2021-039
4.12 Consider approving a resolution authorizing the City Manager to reject a bid in the
amount of $738,175.00 with Atkins Brothers Equipment Company, Inc. for the
Citywide Drainage Improvements Project.
RESOLUTION NO. 2021-040
5.0 REGULAR AGENDA ITEMS
12
City Council – Regular Meeting Agenda
June 1, 2021
Page| 4
Executive Session was convened at 7:35 p.m.
6.0 EXECUTIVE SESSION
6.1.A. 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).
Regular Session was reconvened at 8:17 p.m.
7.0 EXECUTIVE SESSION ACTION
7.1 A. Any action as a result of executive session regarding commercial or financial
information the city has received from a business prospect(s).
No Action
ADJOURNMENT
With there being no further business to discuss the meeting adjourned at 8:88 p.m.
APPROVED:
__________________________________
Joe McCourry, Mayor
City of The Colony
ATTEST:
_______________________________
Tina Stewart, TRMC, CMC
City Secretary
13
MINUTES OF CITY COUNCIL SPECIAL SESSION
HELD ON
JUNE 7, 2021
The Special Session of the City Council of the City of The Colony, Texas, was called to order at
6:43p.m. on the 7th day of June, 2021, at City Hall, 6800 Main Street, The Colony, Texas, with
the following roll call:
Joe McCourry Mayor Present
Kirk Mikulec Deputy Mayor Pro Tem Absent (Business)
Richard Boyer Mayor Pro Tem Present
Brian Wade Councilmember Present
David Terre Councilmember Present
Perry Schrag Councilmember Present
Joel Marks Councilmember Absent (Business)
And with five council members present a quorum was established and the following items were
addressed:
1. Call to Order – Mayor McCourry called the meeting to order at 6:43 p.m.
2. City Council to conduct interviews for appointments to the following advisory board:
Keep The Colony Beautiful and Economic Development Corporation
Executive Session was convened at 6:44 p.m.
3. Executive Session:
A. The City Council shall convene into closed executive session pursuant to Section
551.074 of the Texas Government Code to conduct interviews and to deliberate the
appointment, evaluation, reassignment, or duties of the following board members:
Economic Development Corporation
Regular Session was reconvened at 8:36 p.m.
4. Executive Session Action
A. Any action as a result of executive session regarding the appointment, evaluation,
reassignment, or duties of the following advisory boards:
Economic Development Corporation
Motion to re-appoint Dave Hicinbothem, Place 2 and Kevin Braby, Place 5 to the Economic
Development Corporation Board- Boyer; second by Wade, motion carried with all ayes.
14
5. Adjourn
And with no further business to discuss the meeting was adjourned at 8:37 p.m.
APPROVED:
________________________________
Joe McCourry, Mayor
City of The Colony
ATTEST:
____
Tina Stewart, TRMC, CMC, City Secretary
15
Agenda Item No:4.2
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Miscellaneous
Agenda Section:
Subject:
Consider accepting board member Joe McCourry's resignation from the Hotel Development Corporation, Local
Development Corporation and Tax Increment Reinvestment Zone Number One. (Council)
Suggested Action:
Attachments:
16
Agenda Item No:4.3
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Mayra Sullivan
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section:
Subject:
Consider accepting Danielle Mathews' resignation from the Board of Adjustment. (Council)
Suggested Action:
Attachments:
17
Agenda Item No:4.4
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Eve Morgan
Submitting Department: Parks & Recreation
Item Type: Ordinance
Agenda Section:
Subject:
Consider approving an ordinance authorizing the City Manager to approve a budget amendment to increase the
approved Fiscal Year 2020-2021 Lake Parks Capital Improvement fund in the amount of $115,000.00 for the
Stewart Creek Park Boat Ramp Bypass Road project, with funding from the Lake Park Fund. (Morgan)
Suggested Action:
Attachments:
CC Agenda Budget Amendment-Stewart Creek Boat Ramp Bypass Road.pdf
SCP Boat Ramp Road - Financial Summary.pdf
Ord. 2021-xxxx Lake Parks Budget Amendment.doc
18
Stewart Creek Boat Ramp Bypass Road
City Council June 15, 2021
SUBJECT
Consider approving an ordinance authorizing the City Manager to approve a budget amendment to
increase the approved Fiscal Year 2020-2021 Lake Parks Capital Improvement fund in the amount of
$115,000.00 for the Stewart Creek Park Boat Ramp Bypass Road project, with funding from the Lake
Park Fund.
RECOMMENDATION
Summary of Request:
Consider approving an ordinance authorizing the City Manager to approve a budget amendment to
increase the approved Fiscal Year 2020-2021 Lake Parks Capital Improvement fund in the amount of
$115,000.00 for the Stewart Creek Park Boat Ramp Bypass Road project. This item was submitted for
consideration in the FY2021-2022 Lake Parks budget. Staff is requesting moving this project forward six
months.
Background:
The Stewart Creek Park Boat Ramp Bypass Road was included in the 2019-2020 Lake Park Capital
Improvement budget for a milled asphalt road in the amount of $25,000.00. Further analysis of the site
determined that grading to make the transitions between the asphalt entrance road and the parking lot
smoother for long vehicles towing a boat trailer and changing the surfacing material to concrete would
provide a permanent road and improved asset to this park.
Currently for park users to retrieve their boats, they will either exit the boat ramp parking lot, re-enter
the park using the automated system or use a primitive cut-through road connecting the parking lot to
the boat ramp entrance road. The proposed bypass road will provide an improved road that eliminates
the need to re-enter the park multiple times through the automated system.
Purpose:
To increase the 2020-2021 Lake Park Capital Improvement budget for the City of The Colony, Texas by
$115,000.00 for the Stewart Creek Park Boat Ramp Bypass Road project.
Recommendations:
Staff recommends approval of a budget amendment to increase the approved fiscal year 2020-2021
Lake Park Capital Improvement budget by $115,000.00.
Suggested motion:
I move to recommend the approval of a budget amendment of $115,000.00 to increase the approved
fiscal year 2020-2021 Lake Park Capital Improvement budget for the City of The Colony, Texas for the
Stewart Creek Park Boat Ramp Bypass Road project.
19
Financial Summary:
Are budgeted funds available? ☒ Yes ☐ No Amount available: $ 25,000.00
Fund(s) Number and Account #: 720 and 696-6450-2035
Source of Funds: 2020-2021 Lake Parks Capital Improvement
Cost of recommended budget increase: $115,000.00
20
CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2021 - _____
AMENDING THE FISCAL YEAR 2020-2021 BUDGET
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, AMENDING ORDINANCE 2020-2405, ADOPTING THE
FISCAL YEAR 2020-2021 BUDGET FOR LAKE PARKS FUND OF THE
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 2020-2021 BUDGET FOR LAKE PARKS 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, Texas, is conducting business
pursuant to a budget for fiscal year 2020-2021, heretofore previously adopted by Ordinance No.
2020-2405 on the 15th day of September, 2020; 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 increase the
2020-21 Lake Parks budget by $115,000.00 for a bypass road for the boat ramp.
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 Storm Water Utility budget for the fiscal year ending September 30, 2021, heretofore
previously adopted by Ordinance 2020-2405 duly enacted by the City Council of the City of The
Colony, Texas, on the 15th day of September, 2020, be and is hereby amended as set forth herein,
21
2
which 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 2020-21 Lake Parks budget is to be increased by an amount not to exceed $115,000.00.
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.
22
3
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, THIS THE 15th DAY OF JUNE 2021.
__________________________________
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
____________________________________
Tina Stewart, TRMC, CMC, City Secretary
APPROVED AS TO FORM:
Jeff Moore, City Attorney
City of The Colony, Texas
23
Agenda Item No:4.5
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Eve Morgan
Submitting Department: Parks & Recreation
Item Type: Resolution
Agenda Section:
Subject:
Consider approving a resolution authorizing the City Manager to execute an Amendment of Contractor’s
Contract with RoeschCo Construction, Inc. for the Stewart Creek Park Boat Ramp Bypass Road project, in the
amount of $129,995.57 with funding from the Lake Parks account. (Morgan)
Suggested Action:
Attachments:
CC agenda - RoeschCo Contract Amendment .pdf
Change Order Proposal - Stewart Creek Bypass Rd.r2.pdf
Boat Ramp Bypass Road.pdf
Financial Summary.pdf
C-G Trail - SCP APS - CA#2 - Exhibit A.pdf
Res. 2021-xxx RoeschCo Construction - Stewart Creek Park Boat Ramp.docx
24
Stewart Creek Park Boat Ramp Bypass Road
City Council June 15, 2021
SUBJECT
Consider approving a resolution authorizing the City Manager to execute an Amendment of Contractor’s
Contract with RoeschCo Construction, Inc. for the Stewart Creek Park Boat Ramp Bypass Road project, in
the amount of $129,995.57 with funding from the Lake Parks account.
HISTORY
The Stewart Creek Park Boat Ramp Bypass Road project, was included in the 2019/2020 Lake Parks
budget for a milled asphalt road in the amount of in the amount of $25,000.00.
PURPOSE
With the addition of the new automated kiosk system, the need for a permanent bypass road for
boaters has become critical for ease of access for boaters retrieving their boats and reducing traffic
through the automated park entry system. This item was submitted for consideration in the FY2021-
2022 Lake Parks budget, but with construction cost increasing and shortages for materials, staff
determined that amending the contract that the City has with RoeschoCo Construction for the
Cascades/Grandscape Trail would provide an economy of scale to get this project completed quickly.
RoeschCo Construction, Inc. is under contract with the City for the construction of the
Cascades/Grandscape Trail project. The original contract amount for the Cascades/Grandscape Trail
project is $1,313,484.20. The addition of the Stewart Creek Park Boat Ramp Bypass Road project is less
than 25% of that contract.
RECOMMENDATION
Staff recommends approving a resolution authorizing the City Manager to execute an Amendment of
Contractor’s Contract with RoeschCo Construction, Inc. for the construction of the Stewart Creek Park
Boat Ramp Bypass Road project in the amount of $129,995.57 with funding from the Lake Parks
account.
25
June 9, 2021
Eve Morgan
5151 N Colony Blvd
The Colony, TX 75056
Change Order 03 Proposal
Cascades/Grandscape Trail – Stewart Creek Bypass Road
RoeschCo Construction is pleased to offer the following proposal using the limited plans and
information provided.
Base Bid Scope of Work:
• Mobilize and Barricade Work Area
• Post Small Site SWPPP Notice and contain work area runoff with Silt Fence
• Sawcut Existing Asphalt at Transitions
• Grade area for positive drainage – no import/export of material is included
• Install Approximately 903 SY concrete paving. 8” thick with #4 rebar at 24”
OCEW over compacted subgrade. Concrete to be 4,000 PSI per City Standards.
• Bypass Road will have positive drainage and no curbs. Road to be 20’ wide and
sawcut control joints into 10’ Squares. ½” Redwood Expansion joints 60’
Spacing.
• Sod will be installed and watered at disturbed areas.
• Demobilize and Cleanup upon completion.
• Subgrade Density and Concrete Cylinder testing is included.
Base Bid Price: $119,619.00
Change Order OH/P: $10,376.57
Total Change Order: $129,995.57
Exclusions:
• Any work not listed above
• Imported fill or haul-off excess dirt – must be lost on site
• Underground information is unknown – utility/electrical relocation is excluded and
would be completed by change order if required.
Thank you for this opportunity – please reach out if you have any questions.
Bryan Kayser
RoeschCo Construction, Inc.
(469)888-4135 | bk@roeschco.com
26
G
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R15'R8'R45SHEETDATE:5151 North ColonyThe Colony,Texas 75056(972) 624-3956June 9, 2021SL1.0PROJECT #Boat Ramp Bypass Road
Layout LEGENDNew ConcreteReturn LaneStripingPost and Cable FenceNORTHFeet04080PreliminaryConstructionDocuments ReleasedMay 21, 2021NOT FORCONSTRUCTION27
Financial Summary:
Are budgeted funds available? ☒ Yes ☐ No Amount available: $ 25,000.00
Fund(s) (Name and number):
Fund(s) Number and Account #: 720 and 696-6450-2035
Source of Funds: 2020-2021 Lake Parks Capital Improvement
TOTAL FUNDS AVAILABLE FOR CONTRACT AMENDMENT $ 25,000.00
Balance of funding from budget amendment: $104,995.57
Total estimated project cost:
$ 1,387,948.39 Total Amended Contract Amount
$ 129,995.57 Total Contract Amendment #2 – Boat Ramp Bypass Road
$ 1,517,943.96 Total New Contract Amount
Note:
$ 328,371.05 equals 25% of Original Contract Amount
$ 74,464.19 Contract Amendment #1 – Entry Kiosk Extra Lane
$ 129,995.57 Contract Amendment #2 – Boat Ramp Bypass Road (Current Request)
$ 204,459.76 Total Increase to original Contract
28
1 of 2
CITY OF THE COLONY
DENTON COUNTY, TEXAS
PARKS AND RECREATION DEPARTMENT
CASCADES/GRANDSCAPE TRAIL
CONTRACT AMENDMENT FORM – EXHIBIT “A”
DATE: June 9, 2021
Contract Amendment No. 2 to the Contract Dated November 17, 2020 between the City of The
Colony (Owner) and RoeschCo Construction, Inc. (Contractor) for Road and Infrastructure
associated with the Stewart Creek Bypass Road, including: mobilization, barricades, SWPPP,
demolition, grading, construction of an un-curbed bypass road, sodding, demobilization, and
testing.
Pursuant to the provisions of Section 2, Page 1-37, Article 8.13 of the Contract Documents, this
Supplemental Agreement, when fully executed, shall constitute the authority to change the work
of the project as follows, including quantities and total dollars:
Contract Amendment Explanation:
In the course of construction, the City elected to add the Stewart Creek Bypass Road Project to
this contract.
Add the Following Bid Items:
Section CA2 – Stewart Creek Bypass Road
Item
No.
Contract
Quantity
Add/Deduct
Quantity
Revised
Quantity
Unit Description and Price in
Words
Unit
Price
Additional
Cost
CA2-1 0 1 1 LS Mobilization, Site
Barricades, SWPPP,
Demolition, Grading, 8”
Thick 4,000 PSI Concrete
Paving, Sodding
Demobilization, and
Testing, work fully
performed, complete in
place for the sum of One
Hundred Twenty-Nine
Thousand Nine Hundred
Ninety-Five Dollars and
Fifty-Seven Cents per LS.
$129,995.57 $129,995.57
SUBTOTAL SECTION CA2 – STEWART CREEK BYPASS ROAD ITEMS $129,995.57
TOTAL CONTRACT AMENDMENT NO. 2 $129,995.57
Original Amount of Contract $ 1,313,484.20
Total Amount of Contract Amendment No. 1 $74,464.19
Total Amount of Contract Amendment No. 2 $129,995.57
Contract Amount after Contract Amendments $1,517,943.96
29
2 of 2
Requested Additional Number of Calendar Days to Be Considered Prior to the Final Payment
Thirty (30) Calendar Days.
The Contract Start Time and "Notice to Proceed" for this project is December 16, 2020. The
Contract End Time for the project will be no later than January 15, 2021. With approval of
Contract Amendment No. 2 the Contract End Time shall be amended to no later than July 21,
2021.
Please sign and return this contract amendment to the Engineering Department as soon as
possible so future payments may be processed.
Thank You.
City of The Colony’s offer of proposed change:
BY:
Printed Name: ________________________ Date: _______________
Title:
Contractor: RoeschCo Construction, Inc.
BY: ________________________________ Date: _______________
Printed Name:
Title:
Engineer: Halff Associates, Inc.
BY: ________________________________ Date: _______________
Printed Name: Jacob T. Hays, P.E.
Title: Project Manager
30
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2021 - _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONSTRUCTION SERVICES CONTRACT AMENDMENT
BETWEEN THE CITY OF THE COLONY AND ROESCHCO
CONSTRUCTION, INC., TO INCLUDE CONSTRUCTION OF THE
STEWART CREEK PARK BOAT RAMP BYPASS PROJECT; 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 Council of the City of The Colony, Texas has duly reviewed and
considered the Construction Services Contract Amendment between the City of The Colony, Texas
and Roeschco Construction, Inc., for the Stewart Creek Park Boat Ramp project, in the amount of
$129, 995.57 with funding from the Lake Parks account.
Section 2. That this Second Contract Amendment is found to be acceptable and in the best
interest of the City and its citizens, and the City Manager is hereby authorized to execute the Second
Amendment on behalf of the City of The Colony, Texas, with the terms and conditions as stated
therein.
Section 3.This resolution shall take effect immediately from and after its adoption and it
is so resolved.
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 15th day of June 2021.
_____________________________
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
________
Tina Stewart, TRMC, CMC, City Secretary
APPROVED AS TO FORM:
_______
Jeff Moore, City Attorney
31
Agenda Item No:5.1
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: David Cranford
Submitting Department: Finance
Item Type: Ordinance
Agenda Section:
Subject:
Discussion and consideration of all matters incident and related to the issuance and sale of "City of The Colony,
Texas, Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2021", including the
adoption of an ordinance authoring the issuance of such certificates of obligation. (Miller)
Suggested Action:
Bonds, not to exceed $9.25 million, will be sold to support various road, sidewalk, drainage and utility systems.
All projects were approved in the 2020-2021 CIP budget.
Presentation by our financial advisors Hilltop Securities.
Attachments:
Summary of Anticipated CO Issuance - 2021.pdf
Ordinance colony co 2021.docx
32
33
CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2021 -____
AN ORDINANCE authorizing the issuance of “CITY OF THE
COLONY, TEXAS, COMBINATION TAX AND LIMITED SURPLUS
REVENUE CERTIFICATES OF OBLIGATION, SERIES 2021”;
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 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 $9,250,000 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, improving and equipping the City’s waterworks and sewer
system and the acquisition of rights-of-way therefor, (iii) constructing drainage improvements and
the acquisition of equipment and rights-of-way therefor, (iv) renovating, improving and equipping
existing municipal buildings and (v) professional services rendered in connection therewith, has
been (a) duly published in The Dallas Morning News, a newspaper of general circulation in the
City of The Colony, Texas on April 23, 2021 and April 30, 2021, 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 2021” (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,
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102186145.2/10011644942
sidewalks, lighting, signage and traffic signalization incidental thereto and the acquisition of land
and rights-of-way therefor, (ii) constructing, improving and equipping the City’s waterworks and
sewer system and the acquisition of rights-of-way therefor, (iii) constructing drainage
improvements and the acquisition of equipment and rights-of-way therefor, (iv) renovating,
improving and equipping existing municipal buildings and (v) 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 June 15, 2021 (the “Certificate Date”), and shall be in
denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), and the
Certificates shall become due and payable on February 15 in each of the years and in principal
amounts (the “Stated Maturities”) and bear interest at the per annum rate(s) in accordance with
the following schedule:
Year of
Stated Maturity
Principal
Amount ($)
Interest
Rate (%)
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
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 15, 2022.
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
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102186145.2/10011644943
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.
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.
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102186145.2/10011644944
Section 4.Redemption.
(a)Optional Redemption. The Certificates maturing on or after February 15, 2031
shall be subject to redemption prior to maturity, at the option of the City, in whole or in part, in
principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot
by the Paying Agent/Registrar) on February 15, 2030 or 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 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
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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.
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.
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102186145.2/10011644946
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.
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.
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102186145.2/10011644947
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,
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
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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.
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 2021
Certificate Date:Interest Rate:Stated Maturity:CUSIP NO.
June 15, 2021 _________%February 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, 2022, 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
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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.
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, improving and equipping the City’s waterworks and
sewer system and the acquisition of rights-of-way therefor, (iii) constructing drainage
improvements and the acquisition of equipment and rights-of-way therefor, (iv) renovating,
improving and equipping existing municipal buildings and (v) 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 February 15, 2031, 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
February 15, 2030, 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.
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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
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
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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
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][Mayor Pro Tem]
COUNTERSIGNED:
___________________________________
City Secretary
(City Seal)
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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 §
§
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:)
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(Social Security or other identifying number:
)
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
____________________________________________ attorney to transfer the within Certificate
on the books kept for registration thereof, with full power of substitution in the premises.
DATED:
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 $________
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF THE COLONY, TEXAS
COMBINATION TAX AND LIMITED SURPLUS REVENUE
CERTIFICATE OF OBLIGATION
SERIES 2021
Certificate Date: June 15, 2021
Registered Owner: ______________
Principal Amount: ______ MILLION ____ HUNDRED ____ THOUSAND DOLLARS
The City of The Colony (hereinafter referred to as the “City”), a body corporate and
municipal corporation in the County of Denton, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the registered owner named above, or the
registered assigns thereof (the "Registered Owner"), the Principal Amount hereinabove stated,
on February 15 in each of the years and in principal installments in accordance with the following
schedule:
PRINCIPAL INTEREST
YEAR INSTALLMENTS ($)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
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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, 2022, 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
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 2021” 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
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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.
(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
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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.
(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 2021 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
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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:
(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
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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
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
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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
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.
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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.
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. Pursuant to a
public sale for the Certificates, the bid submitted by ______________ (herein referred to as the
“Purchasers”) is declared to be the best bid received producing the lowest true interest cost rate
to the City, and the sale of the Certificates to the Purchasers at the price of par plus premium in
the amount of $_______ is hereby determined to be in the best interests of the City and is
approved and confirmed. Delivery of the Certificates to the Purchasers shall occur as soon as
possible upon payment being made therefor in accordance with the terms of sale. The Initial
Certificate shall be registered in the name as provided in the winning bid.
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 June 15, 2021, 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.
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In any case where notice to Holders is given by mail, neither the failure to mail such notice
to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of
such notice with respect to all other Certificates. Where this Ordinance provides for notice in any
manner, such notice may be waived in writing by the Holder entitled to receive such notice, either
before or after the event with respect to which such notice is given; and, such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying
Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
Section 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.
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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.
“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
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the City receives a written opinion of counsel nationally recognized in the field of municipal bond
law to the effect that failure to comply with such covenant will not adversely affect the exemption
from federal income tax of the interest on any Certificate, the City shall comply with each of the
specific covenants in this Section.
(c)No Private Use or Private Payments. Except as permitted by Section 141 of the
Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated
Maturity of Certificates:
(1)exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Certificates, and not use or permit the use of
such Gross Proceeds (including all contractual arrangements with terms different
than those applicable to the general public) or any property acquired, constructed
or improved with such Gross Proceeds in any activity carried on by any person or
entity (including the United States or any agency, department and instrumentality
thereof) other than a state or local government, unless such use is solely as a
member of the general public; and
(2)not directly or indirectly impose or accept any charge or other
payment by any person or entity who 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.
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(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 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
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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.
(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 2021, 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
2021, 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 item 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 items
15 and 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.
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PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 15th day of June, 2021.
Joe McCourry, Mayor
City of The Colony, Texas
ATTEST:
Tina Stewart, City Secretary
City of The Colony, Texas
(City Seal)
APPROVED AS TO FORM:
Jeff Moore, City Attorney
City of The Colony, Texas
65
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
66
Agenda Item No:6.1
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Tina Stewart
Submitting Department: General Admin
Item Type: Discussion
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 and Section 551.087 of the Texas Government Code to
deliberate commercial or financial information the City has received from a business prospect, and to deliberate
the offer of a financial or other incentive to a business prospect – Nebraska Furniture Mart - LMG Ventures,
LLC, and TXFM, Inc.
B. Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas Government
Code regarding contemplated litigation, including commencement of Chapter 54 of the Texas Local
Government Code cause of action, concerning 7413 Water’s Edge Court.
C. 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:
67
Agenda Item No:7.1
CITY COUNCIL Agenda Item Report
Meeting Date: June 15, 2021
Submitted by: Tina Stewart
Submitting Department: General Admin
Item Type: Discussion
Agenda Section:
Subject:
A. Any action as a result of executive session regarding commercial or financial information the City has
received from a business prospect, and to deliberate the offer of a financial or other incentive to a business
prospect – Nebraska Furniture Mart - LMG Ventures, LLC, and TXFM, Inc.
B. Any action as a result of executive session regarding 7413 Water’s Edge Court.
C. 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:
68