HomeMy WebLinkAbout04/26/2012 - Regular Agenda Packet - City CouncilTable of Contents
Agenda 4
Consent No. 2a - Minutes
Coversheet revised 9
April 12 Workshop 10
April 12 Regular Meeting 14
Consent No. 2b - Debt Reimbursement Resolution for Dexter
Drive Sidewalks
Coversheet revised 18
Resolution 19
Consent No. 2c - Debt Reimbursement Resolution for State
Highway 30/Copperfield Signal and Intersection Modifications
Coversheet revised 22
Resolution 23
Consent No. 2d - 2009 Homeland Security Grant Adjustment
Notice
Coversheet revised 26
Resolution 27
Consent No. 2e - University Dr and Copperfield Pkwy Signal
Advanced Funding Agreement
Coversheet revised 29
AFA 30
Map 36
Consent No. 2f - TAMUS Easement Agreement Renewal Olsen
Road at George Bush Drive
Coversheet revised 37
Easement Agreement 38
Consent No. 2g - Rock Prairie Road East Widening Design and
ROW Project (ST0417) Real Estate Contract – Rice / Parcel
Nos. 5a and 5b
Coversheet revised 46
Location Map 47
Consent No. 2h - Sale of a Home at 4214 Cripple Creek
Coversheet revised 48
Sales Contract 49
Location Map 58
Resolution 59
Consent No. 2i - Purchase Exemption request for the Reynolds
Company
Coversheet revised 60
FY-12 Estimate 61
Consent No. 2j -City Wide Landscape Maintenance Contract
Renewals
Coversheet revised 62
Renewal Letters 64
Change Orders 74
1
Consent No. 2k - Pad-Mounted Distribution Transformers Re-
Award of Line Item #2
Coversheet revised 77
Corrected Tabulation 78
Consent No. 2L - East Side Sewer Service Design Contract
Award
Coversheet revised 84
Map 85
Consent No. 2m - Medical Waste Hauling Franchise with Waste
Management Healthcare Solutions, Inc.
Coversheet revised 86
Consent No. 2n - Interlocal Agreement Between Brazos County,
The City of College Station, and the City of Bryan for the 2012
Byrne Justice Assistance Grant (JAG) Program Award.
Coversheet revised 87
Interlocal Agreement 88
Regular No. 1 - Public Hearing on the Old Arrington Road Right-
of-Way Abandonment
Coversheet revised 95
Map 1 96
Map 2 97
Ordinance 98
Ordinance Exhibit 110
Regular No. 2 - Public Hearing on Rezoning for 2849 Barron
Road
Coversheet revised 113
Background 117
Maps 118
Ordinance 121
Draft P&Z Minutes 127
Regular No. 3 - Public Hearing on Rezoning for Foster Avenue
Apartments
Coversheet revised 129
Background 134
Map 135
Ordinance 137
Draft P&Z Minutes 145
Regular No. 4 - Public Hearing on Rezoning for 3182 Holleman
Drive South
Coversheet revised 147
Background 149
Maps 150
Ordinance 152
Draft P&Z minutes 158
Regular No. 5 - Public Hearing on Rezoning for The Barracks II
Coversheet revised 160
Background 166
2
Photos & Maps 168
Ordinance 170
Draft P&Z Minutes 176
Regular No. 6 - Public Hearing on Mobile Food Vendor
Ordinance Revision
Coversheet revised 178
Redline Ordinance 179
Ordinance 186
Stakeholder Comments 194
Regular No. 7 - Public Hearing on Northgate Outdoor Dining
and Entertainment
Coversheet revised 196
Redline Code of Ordinances Chapter 12, Section 5.6 198
Redline Code of Ordinances Chapter 1, Section 13 199
Redline Code of Ordinance Chapter 4, Section 4 201
Ordinances 202
Regular No. 8 - Consider Ordinance Issuing General Obligation
Improvement and Refunding Bonds
Coversheet revised 216
GO and Refunding Ordinance 218
GO and Refunding Debt Issuance 2012 257
Regular No. 9 - Consider Ordinance Issuing Certificates of
Obligation
Coversheet revised 258
CO Ordinance 260
CO Debt Issuance 2012 298
3
Mayor
Nancy Berry
Mayor Pro Tem
Dave Ruesink
City Manager
David Neeley
Council members
Blanche Brick
Jess Fields
Karl Mooney
Katy-Marie Lyles
Julie M. Schultz
Agenda
College Station City Council
Regular Meeting
Thursday, April 26,2012 at 7:00 PM
City Hall Council Chamber, 1101 Texas Avenue
College Station, Texas
1. Pledge of Allegiance, Invocation, Consider absence request.
Presentations:
Presentation of proclamation proclaiming May as Motorcycle Safety and Awareness Month.
Presentation, possible action, and discussion proclaiming Pediatric Stroke Awareness Month.
Hear Visitors: A citizen may address the City Council on any item which does not appear on the posted
Agenda. Registration forms are available in the lobby and at the desk of the City Secretary. This form should
be completed and delivered to the City Secretary by 5:30 pm. Please limit remarks to three minutes. A timer
alarm will sound after 2 112 minutes to signal thirty seconds remaining to conclude your remarks. The City
Council will receive the information, ask staff to look into the matter, or place the issue on a future agenda.
Topics of operational concerns shall be directed to the City Manager. Comments should not personally attack
other speakers, Council or staff.
Consent Agenda
Individuals who wish to address the City Council on a consent or regular agenda item not posted as a public
hearing shall register with the City Secretary prior to the Mayor's reading of the agenda item. Registration
forms are available in the lobby and at the desk of the City Secretary. The Mayor will recognize individuals
who wish to come forward to speak for or against the item. The speaker will state their name and address for
the record and allowed three minutes. A timer will sound at 2 112 minutes to signal thirty seconds remaining for
remarks.
2. Presentation, possible action and discussion of consent agenda items which consists of ministerial or
"housekeeping" items required by law. Items may be removed from the consent agenda by majority vote of the
Council.
a. Presentation, possible action, and discussion of minutes for:
April 12,2012 Workshop
April 12,2012 Regular Council Meeting
City Council Regular Meeting Page 2
Thursday, April 26,20 12
b. Presentation, possible action, and discussion regarding approval of a resolution declaring intention to
reimburse certain expenditures with proceeds from debt for the Dexter Drive Sidewalk project.
c. Presentation, possible action, and discussion regarding approval of a resolution declaring intention to
reimburse certain expenditures with proceeds from debt for the State Highway 30lCopperfield Signal and
Intersection Modifications project.
d. Presentation, possible action and discussion regarding the approval of a resolution accepting from the
Texas Division of Emergency Management (TDEM) the 2009 Homeland Security Grant Adjustment
Notice (GAN).
e. Presentation, possible action, and discussion on an Advanced Funding Agreement (AFA) with the Texas
Department of Transportation (TxDOT) to powdercoat new signal poles at the intersection of University
Drive and Copperfield as part of TxDOTYs project to widen University Drive from SH 6 to FM 158. The
estimated cost of the City's participation is not to exceed $4,000.
f. Presentation, possible action, and discussion on an easement agreement renewal with the Texas A&M
University System for the purpose of operating and maintaining a traffic signal at Olsen Road and George
Bush Drive.
g. Presentation, possible action, and discussion regarding approval of a real estate contract between the City
of College Station (Buyer) and Britt Rice (Seller) in the amount of $60,448.00 for the purchase of right-of-
way (2.377 acres) and a public utility easement (1.058 acres) needed for the Rock Prairie Road East
Widening Design and Right-of-way Project.
h. Presentation, possible action, and discussion regarding a Resolution approving a real estate contract
approving a bid received in response to ITB #12-053 for the sale of City property at 4214 Cripple Creek,
an affordable home.
i. Presentation, possible action and discussion to authorize expenditure of funds for FY-12, items exempt
from competitive bidding as described in Texas Local Government Code chapter 252.022, to purchase
SCADA equipment from the Reynolds Company, not to exceed $1 00,000.
Presentation, possible action, and discussion regarding approval of renewals of landscape maintenance
contracts to multiple vendors, and approval of change orders to add additional sites to the contracts, to
Green Teams for $266,629.22, to Rainbow Gardens for $90,252.00, to Landscape USA for $50,205.00, to
Roots for $12,240.00, and to ProGreen for $81,728.00, in a total amount of $508,434.22.
k. Presentation, possible action and discussion regarding the cancellation of award, of fifteen (15) 50 KVA
Padmount Transformers, in the amount of $3 1,650.00 to Texas Electric Cooperatives, and approval of
new award to HD Supply Utilities in the amount of $3 1,755.00.
1. Presentation, possible action, and discussion regarding a design contract with Jones & Carter, Inc., in the
amount of $204,000, for design of the East Side Sewer Service Project.
m.Presentation, possible action and discussion on the third and final of three readings of a non-exclusive
franchise agreement with Waste Management Health Care Solutions, Inc. for the purpose of collecting and
disposing treated and untreated medical waste from various health care related facilities.
City Council Regular Meeting Page 3
Thursday, April 26,20 12
n. Presentation, possible action, and discussion on an inter-local agreement (ILA) with Brazos County and
the City of Bryan for the purpose of application and acceptance of a U.S. Department of Justice, 2012
Justice Assistance Grant (JAG).
Regular Agenda
Individuals who wish to address the City Council on a regular agenda item not posted as a public hearing
shall register with the City Secretary prior to the Mayor's reading of the agenda item. The Mayor will
recognize you to come forward to speak for or against the item. The speaker will state their name and address
for the record and allowed three minutes. A timer will sound at 2 112 minutes to signal thirty seconds remaining
for remarks.
Individuals who wish to address the City Council on an item posted as a public hearing shall register with the
City Secretary prior to the Mayor's announcement to open the public hearing. The Mayor will recognize
individuals who wish to come forward to speak for or against the item. The speaker will state their name and
address for the record and allowed three minutes. A timer alarm will sound at 2 112 minutes to signal thirty
seconds remaining to conclude remarks. After a public hearing is closed, there shall be no additional public
comments. If Council needs additional information from the general public, some limited comments may be
allowed at the discretion of the Mayor.
If an individual does not wish to address the City Council, but still wishes to be recorded in the official minutes
as being in support or opposition to an agenda item, the individual may complete the registration form provided
in the lobby by providing the name, address, and comments about a city related subject. These comments will
be referred to the City Council and City Manager.
1. Public Hearing, presentation, possible action, and discussion approving an ordinance vacating and
abandoning a 1.18 Acre portion of Old Arrington Road Right-of-way, extending 1,000 feet, more or
less, from the northwest comer of a 5.53 acre tract in the SW Robertson League, A-202 recorded in
Volume 8361, Page 279 to the northwest corner of a 2.445 acre tract in the SW Robertson League, A-
202 recorded in Volume 9338, Page 178 of the Official Records of Brazos County, Texas.
2. Public Hearing, presentation, possible action, and discussion on a Rezoning from PDD Planned
Development District to PDD Planned Development District, for a rezoning from PDD to PDD for 3.19
acres located at 2849 Barron Road, generally located at the comer of Barron Road and SH 40, North of
the Sonoma Subdivision.
3. Public Hearing, presentation, possible action, and discussion regarding a zoning amendment request
from R-6 High-Density Multi-Family Residential to PDD Planned Development District for 0.73 acre on
Lots 9 and 10, Block 3 of the College Hills Estates Subdivision located at 1024 and 1026 Foster Avenue,
generally located at the intersection of Foster Avenue and Francis Drive.
4. Public Hearing, presentation, possible action, and discussion regarding an ordinance amending Chapter
12, "Unified Development Ordinance," Section 4.2, "Official Zoning Map," of the Code of Ordinances
of the City Of College Station for 5.379 acres within University Heights Subdivision Phase 5 located at
3 182 Holleman Drive South, generally located north of Las Palomas Subdivision.
5. Public Hearing, presentation, possible action, and discussion regarding an ordinance amending Chapter
12, "Unified Development Ordinance," Section 4.2, "Official Zoning Map," of the Code of Ordinances
of the City Of College Station for 108.88 acres located at 3100 Haupt Road, generally located between
Old Wellborn Road and Holleman Drive South, North of the Buena Vida Subdivision.
City Council Regular Meeting
Thursday, April 26,2012
Page 4
6. Public Hearing, presentation, possible action, and discussion regarding an amendment to the Code of
Ordinances, Chapter 4 "Business Regulations," related to Mobile Food Vendors.
7. Public Hearing, presentation, possible action, and discussion regarding an ordinance amending Chapter
12, "Unified Development Ordinance", Section 5.6 "Design Districts", B "Northgate Districts", 13 "
Outside Storage And Display Standards", of the Code of Ordinances of the City of College Station.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Chapter 4, "Business Regulations" By adding Section 21 "Northgate Outdoor Dining And
Entertainment", to the Code of Ordinances of the City of College Station.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Chapter 1, "General Provisions" By Amending Section 13 "Alcoholic Beverages", B. "Possession
And Consumption Of Alcoholic Beverages In Northgate Central Business District", of the Code of
Ordinances of the City of College Station.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Chapter 4, "Business Regulations" By Amending Section 4 "Carnivals, Circuses, Menageries,
Sideshows, Concession, And Special Events", of the Code of Ordinances of the City of College
Station.
8. Presentation, possible action and discussion on an ordinance authorizing the issuance and sale of up to
$38,000,000 in "City of College Station, Texas General Obligation Improvement and Refunding Bonds,
Series 2012"; delegating the authority to certain City Officials to execute certain documents relating to
the sale of the Bonds; approving and authorizing instruments and other procedures relating to said
bonds; and enacting other provisions relating to the subject.
9. Presentation, possible action and discussion on an ordinance authorizing the issuance and sale of up to
$17,400,000 in "City of College Station, Texas Certificates of Obligation, Series 20 12"; delegating the
authority to certain City Officials to execute certain documents relating to the sale of the certificates;
approving and authorizing instruments and procedures relating to the certificates; and enacting other
provisions relating to the subject.
10. Adjourn.
If litigation issues arise to the posted subject matter of this Council Meeting an executive session will be held.
APPROVED:
Notice is hereby given that a Regular Meeting of the City Council of the City of College Station, Texas will be
held on the Thursday, April 26, 2012 at 7:00 PM at the City Hall Council Chambers, 1101 Texas Avenue,
College Station, Texas. The following subjects will be discussed, to wit: See Agenda.
y of April, 2012 at 5.00 p.m.
City Council Regular Meeting Page 5
Thursday, April 26,2012
I, the undersigned, do hereby certify that the above Notice of Meeting of the Governing Body of the City of
College Station, Texas, is a true and correct copy of said Notice and that I posted a true and correct copy of said
notice on the bulletin board at City Hall, 1 10 1 Texas Avenue, in College Station, Texas, and the City's website,
www.cstx.~ov . The Agenda and Notice are readily accessible to the general public at all times. Said Notice
and Agenda were posted on April 20, 2012 at 5:00 p.m. and remained so posted continuously for at least 72
hours proceeding the scheduled time of said meeting.
This public notice was removed from the official posting board at the College Station City Hall on the following
date and time: by
Dated this day of ,2012 By
Subscribed and sworn to before me on this the day of ,2012.
Notary Public - Brazos County, Texas My commission expires:
The building is wheelchair accessible. Handicap parking spaces are available. Any request for sign interpretive service must be made
48 hours before the meeting. To make arrangements call (979) 764-3517 or (TDD) 1-800-735-2989. Agendas may be viewed on
www.cstx.~ov . Council meetings are broadcast live on Cable Access Channel 19.
April 26, 2012
City Council Consent Agenda Item No. 2a
City Council Minutes
To: David Neeley, City Manager
From: Sherry Mashburn, City Secretary
Agenda Caption: Presentation, possible action, and discussion of minutes for:
· April 12, 2012 Workshop
· April 12, 2012 Regular Council Meeting
Attachments:
· April 12, 2012 Workshop
· April 12, 2012 Regular Council Meeting
9
WKSHP041212 Minutes Page 1
MINUTES OF THE CITY COUNCIL WORKSHOP
CITY OF COLLEGE STATION
APRIL 12, 2012
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
Nancy Berry, Mayor
Council:
Blanche Brick
Jess Fields
Karl Mooney
Katy-Marie Lyles
Julie Schultz
Dave Ruesink
City Staff:
David Neeley, City Manager
Kathy Merrill, Deputy City Manager
Frank Simpson, Deputy City Manager
Carla Robinson, City Attorney
Sherry Mashburn, City Secretary
Tanya McNutt, Deputy City Secretary
1. Call to Order and Announce a Quorum is Present
With a quorum present, the Workshop of the College Station City Council was called to order by
Mayor Nancy Berry at 5:00 p.m. on Thursday, April 12, 2012 in the Council Chambers of the
City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77842.
2. Executive Session
In accordance with the Texas Government Code §551.071-Consultation with Attorney and
§551.087-Economic Incentive Negotiation, the College Station City Council convened into
Executive Session at 5:00 p.m. on Thursday, April 12, 2012 in order to continue discussing
matters pertaining to:
A. Consultation with Attorney to seek advice regarding pending or contemplated litigation; to
wit:
10
WKSHP041212 Minutes Page 2
· City of Bryan's application with TCEQ for water & sewer permits in Westside/Highway
60 area, near Brushy Water Supply Corporation to decertify City of College Station and
certify City of Bryan
· Chavers et a1 v. Tyrone Morrow et al, No. 10-20792; Chavers v. Randall Hall et al, Case
No. 10 CV-3922
· College Station v. Star Insurance Co., Civil Action No. 4:11-CV-02023
· Shirley Maguire and Holly Maguire vs. City of College Station, Cause No. 11-0025 16-
CV-272, in the 272nd District Court of Brazos County, Texas
· Tracy Lynn Sheets, City of College Station (Intervener) v. Get Lucky, L.L.C. d/b/a Lux
Nightclub and Alex Taylor Ford
B. Consultation with Attorney to seek legal advice; to wit:
· Legal issues related to abandonment of right-of-way in the Northgate area
C. Deliberation on economic development negotiations; to wit:
· Behavioral healthcare facility
The Executive Session adjourned at 6:05 p.m. on Thursday, April 12, 2012.
3. Take action, if any, on Executive Session.
No action was required from Executive Session.
4. Presentation of Proclamation declaring April 14-20, 2012 as Money Week Brazos
Valley.
The Mayor and Council presented Ken Fogle, United Way Board President, with a proclamation
declaring April 14-20 as Money Week Brazos Valley.
5. Presentation, possible action, and discussion on items listed on the consent agenda.
No items were pulled for additional clarification. Councilmember Fields stated he wanted to pull
item 2j for a separate vote.
6. Presentation, possible action, and discussion relating to receiving the annual audit
reports and Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
September 30, 2011.
Jeff Kersten, Executive Director of Fiscal Services, presented the CAFR for FY 11. He reported
that our net assets $410,669,001 with a $7,937,360 increase from last year. Unrestricted net
assets are $62,908,795 and restricted net assets are $27,153,738. Most of our net assets are
capital assets ($320,606,468). Ingram Wallis & Co. is the City’s external auditor. Mr. Wallis
commended staff for their assistance in getting the audit done. Their opinion is unqualified, the
highest level of assurance. They presented the report to the Audit Committee on March 26, and
the Audit Committee recommends Council accept the reports and CAFR.
11
WKSHP041212 Minutes Page 3
MOTION: Upon a motion made by Councilmember Fields and a second by Councilmember
Mooney, the City Council voted seven (7) for and none (0) opposed, to accept the annual audit
report and CAFR. The motion carried unanimously.
7. Presentation, possible action, and discussion regarding changing the date of the May 10th
Council Meeting to Monday, May 14th.
Council consensus was to move the meeting to Monday, May 14, at the regular times.
8. Council Calendar
· April 13 Emerging Technologies Building Dedication Ceremony at the Corner of
North Bizzell Street and University Drive, 2:00 p.m.
· April 13 Mosbacher Institute presents Robert W. Pease, President CEO, Motiva
Enterprises at Annenberg Presidential Conference Center, 4:00 p.m.
· April 13 Citizen Fire Academy Alumni Annual picnic, Veterans Park - American
Pavilion 6:00 pm
· April 19 BCS Chamber of Commerce - Business After Hours at Vineyard Court -
1500 George Bush Drive, 5:30 p.m.
· April 19 P&Z Workshop Meeting in Council Chambers at 6:00 p.m. (Jess Fields,
Liaison)
· April 26 City Council Executive/Workshop/Regular Meeting at 5:00, 6:00 and 7:00
p.m.
Council reviewed the Council calendar.
9. Presentation, possible action, and discussion on future agenda items: a Council Member
may inquire about a subject for which notice has not been given. A statement of specific
factual information or the recitation of existing policy may be given. Any deliberation shall
be limited to a proposal to place the subject on an agenda for a subsequent meeting.
Councilmember Fields asked to revisit the tree ordinance. There was no consensus.
10. Discussion, review and possible action regarding the following meetings: Animal
Shelter Board, Arts Council of the Brazos Valley, Arts Council Sub-committee, Audit
Committee, Bicycle, Pedestrian, and Greenways Advisory Board, Brazos County Health
Dept., Brazos Valley Council of Governments, Brazos Valley Wide Area Communications
Task Force, BVSWMA, BVWACS, Cemetery Committee, Code Review Committee,
Convention & Visitors Bureau, Design Review Board, Historic Preservation Committee,
Interfaith Dialogue Association, Intergovernmental Committee, Joint Neighborhood
Parking Taskforce, Joint Relief Funding Review Committee, Landmark Commission,
Library Board, Metropolitan Planning Organization, National League of Cities, Outside
Agency Funding Review, Parks and Recreation Board, Planning and Zoning Commission,
Research Valley Partnership. Regional Transportation Committee for Council of
Governments, Signature Event Task Force, Sister City Association, TAMU Student Senate,
Texas Municipal League, Transportation Committee, Zoning Board of Adjustments.
12
WKSHP041212 Minutes Page 4
Mayor Berry reported there was a COG meeting this week. Senator Kay Bailey Hutchison was
the speaker.
Councilmember Lyles reported on the Brazos County Health Department.
Councilmember Ruesink reported on a student visit from Japan for Sister Cities. They are also
firming up the trip to Salamanca in May.
11. Adjournment
MOTION: There being no further business, Mayor Berry adjourned the workshop of the
College Station City Council at 6:50 p.m. on Thursday, April 12, 2012.
________________________
Nancy Berry, Mayor
ATTEST:
_______________________
Sherry Mashburn, City Secretary
13
RM041212 Minutes Page 1
MINUTES OF THE REGULAR CITY COUNCIL MEETING
CITY OF COLLEGE STATION
APRIL 12, 2012
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
Nancy Berry
Council:
Blanche Brick
Jess Fields
Karl Mooney
Katy-Marie Lyles
Julie Schultz
Dave Ruesink
City Staff:
David Neeley, City Manager
Kathy Merrill, Deputy City Manager
Frank Simpson, Deputy City Manager
Carla Robinson, City Attorney
Sherry Mashburn, City Secretary
Tanya McNutt, Deputy City Secretary
Call to Order and Announce a Quorum is Present
With a quorum present, the Regular Meeting of the College Station City Council was called to
order by Mayor Nancy Berry at 7:01 p.m. on Thursday, April 12, 2012 in the Council Chambers
of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77842.
1. Pledge of Allegiance, Invocation, consider absence request.
Citizen Comments
Gary Ives, 3943 Blue Jay Court, reported that his homeowners association voted to dedicate their
Lick Creek drainage area to the City for the purpose of building the Lick Creek Greenway Trail
through their neighborhood. The results of the vote were 58.8% favoring the route through the
creek area, and 41.2% along the street rights-of-way. He noted over 86% of the 196
homeowners voted. He stated the Board is empowered to convey this land to the City for this
purpose, and they have the mandate from the membership to do so. He also noted the vote is
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RM041212 Minutes Page 2
under challenge by 20 concerned homeowners in Small Claims Court. The Board looks forward
to working with City staff on a mutually acceptable conditional dedication agreement that would
address everyone’s concerns.
Olivia Tannery, 104 George Bush, presented the CAN program (Checkpoints At Northgate).
The purpose of the program is to provide safe transportation during late night hours to make it a
safer environment for students and community.
Melissa Smith, 614 Holleman, reported on Carpool, founded in 1999. Carpool is a non-profit,
judgment-free way home. Last year, Carpool provided 199,000 safe rides home for all students.
CONSENT AGENDA
2a. Presentation, possible action, and discussion of minutes for:
· March 22, 2012 Executive Session
· March 22, 2012 Workshop and Regular Council Meeting
2b. Presentation, possible action and discussion on Resolution 04-12-12-2b, approving a
Construction Contract (12-145) to Kieschnick General Contractors, in the amount of
$129,945.00 for the Fleet Wash Rack Improvements Project.
2c. Presentation, possible action, and discussion regarding Resolution 04-12-12-2c,
approving a construction contract with Brazos Paving, Inc., in the amount of $182,629.35,
for the construction of the College Main Street from the city limit line to 80 feet south of
Spruce Street.
2d. Presentation, possible action and discussion on the Renewal of Electric Annual
Construction Contract #10-121, Bid #10-31, with H&B Construction for $884,737.98 and
approval of Resolution 04-12-12-2d, declaring intention to reimburse certain expenditures
with proceeds from debt.
2e. Presentation, possible action and discussion on Resolution 04-12-12-2e, modifying the
public engagement process for transportation capital improvement projects.
2f. Presentation, possible action, and discussion regarding award of contract for Janitorial
Supplies. This is a contract with ProSTAR Industries in the amount of $58,654.66.
2g. Presentation, possible action and discussion on the second of three readings of a non-
exclusive franchise agreement with Waste Management Health Care Solutions, Inc. for the
purpose of collecting and disposing treated and untreated medical waste from various
health care related facilities.
2h. Presentation, possible action, and discussion to approve the amendment to the original
contract with First Southwest Company in an amount not to exceed $175,000 for financial
advisory services.
15
RM041212 Minutes Page 3
2i. Presentation, possible action and discussion on a bid award for the purchase of various
pad-mounted distribution transformers maintained in inventory to HD Supply Utilities
$43,692; Texas Electric Cooperatives $31,650; and Wesco $15,153 for a total of$90,495.00.
2j. Presentation, possible action, and discussion regarding the addition of clarifying
language to the Reconstruction Program guidelines.
Item 2j was pulled for a separate vote.
MOTION: Upon a motion made by Councilmember Lyles and a second by Councilmember
Schultz, the City Council voted seven (7) for and none (0) opposed, to approve the Consent
Agenda, less item 2j. The motion carried unanimously.
(2j)MOTION: Upon a motion made by Councilmember Mooney and a second by
Councilmember Lyles, the City Council voted six (6) for and one (1) opposed, with
Councilmember Fields voting against, to approve the addition of clarifying language to the
Reconstruction Program guidelines. The motion carried.
REGULAR AGENDA
1. Public Hearing, presentation, possible action, and discussion approving Ordinance
2012-3401, vacating and abandoning:
• 0.58 acre portion of a variable width public utility easement, which is located on
portions of Lots 2, 3 and 4 of the Century Hill Development Subdivision,
• 0.19 acre, 20-foot wide public utility easement, which is located on portions of Lots
1 and 2 of the Century Hill Development Subdivision,
• 0.08 acre portion of a 20-foot wide public utility easement, which is located on a
portion of Lot 7 of the Century Hill Development Subdivision, and
• 1,652 square foot portion of a 10-foot wide public waterline easement, which is
located on a portion of Lot 7 of the Century Hill Development Subdivision
At approximately 7:12 p.m. Mayor Berry opened the Public Hearing.
Manuel Gonzalez, 1506 Andover Court, signed up, but did not speak at this time.
Joe Schultz, 2730 Longmire, signed up, but did not speak at this time.
There being no further comments, the Public Hearing was closed at 7:12 p.m.
MOTION: Upon a motion made by Councilmember Mooney and a second by Councilmember
Lyles, the City Council voted six (6) for and none (0) opposed, with Councilmember Schultz
recusing herself, to adopt Ordinance 2012-3401, vacating and abandoning 0.58 acre portion of a
variable width public utility easement, which is located on portions of Lots 2, 3 and 4 of the
Century Hill Development Subdivision; a 0.19 acre, 20-foot wide public utility easement, which
is located on portions of Lots 1 and 2 of the Century Hill Development Subdivision; a 0.08 acre
portion of a 20-foot wide public utility easement, which is located on a portion of Lot 7 of the
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RM041212 Minutes Page 4
Century Hill Development Subdivision; and a 1,652 square foot portion of a 10-foot wide public
waterline easement, which is located on a portion of Lot 7 of the Century Hill Development
Subdivision. The motion carried.
2. Presentation, possible action, and discussion regarding approval of the Owner
Agreement for the Home Reconstruction Loan Program activity at 1017 Fairview.
MOTION: Upon a motion made by Councilmember Lyles and a second by Councilmember
Schultz, the City Council voted six (6) for and one (1) opposed, with Councilmember Fields
voting against, to approve the Owner Agreement for the Home Reconstruction Loan Program
activity at 1017 Fairview. The motion carried.
3. Adjournment.
MOTION: There being no further business, Mayor Berry adjourned the Regular Meeting of the
City Council at 7:24 p.m. on Thursday, April 12, 2012.
________________________
Nancy Berry, Mayor
ATTEST:
___________________________
Sherry Mashburn, City Secretary
17
April 26, 2012
Consent Agenda Item No. 2b
Debt Reimbursement Resolution for
Dexter Drive Sidewalks
To: David Neeley, City Manager
From: Jeff Kersten, Executive Director, Business Services
Agenda Caption: Presentation, possible action, and discussion regarding approval of a
resolution declaring intention to reimburse certain expenditures with proceeds from debt for
the Dexter Drive Sidewalk project.
Recommendation(s): Staff recommends approval of the resolution declaring intention
to reimburse certain expenditures with proceeds from debt.
Summary: The Dexter Drive Sidewalk project will be completed using sidewalk funds
authorized as part of the 2008 General Obligation Bond program. It is anticipated that the
project cost will be $200,000. The sidewalks will be along the west side of Dexter Drive from
Park Place south to Winding Road.
It is anticipated that long term debt will be issued for this project. An engineering contract
for this project has been approved by the City Manager and expenses on this project have
begun. On projects for which the expenditures will occur prior to the debt issue, a resolution
declaring intention to reimburse certain expenditures with proceeds from debt must be
adopted within 60 days of expenditure on the project.
Budget & Financial Summary: The “Resolution Declaring Intention to Reimburse
Certain Expenditures with Proceeds from Debt” is necessary for this item because the long
term debt has not been issued for the project. This debt is scheduled to be issued later this
fiscal year.
Attachments:
1. Resolution Declaring Intention to Reimburse Certain Expenditures with
Proceeds from Debt
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19
20
21
April 26, 2012
Consent Agenda Item No. 2c
Debt Reimbursement Resolution for
State Highway 30/Copperfield Signal and Intersection Modifications
To: David Neeley, City Manager
From: Jeff Kersten, Executive Director, Business Services
Agenda Caption: Presentation, possible action, and discussion regarding approval of a
resolution declaring intention to reimburse certain expenditures with proceeds from debt for
the State Highway 30/Copperfield Signal and Intersection Modifications project.
Recommendation(s): Staff recommends approval of the resolution declaring intention
to reimburse certain expenditures with proceeds from debt.
Summary: The State Highway 30/Copperfield Signal and Intersection Modifications
project will be completed using traffic signal funds authorized as part of the 2003 and 2008
General Obligation Bond programs. It is anticipated that the project cost will be $777,000.
It is anticipated that long term debt will be issued for this project. An engineering contract
for this project has been approved by the City Manager and expenses on this project have
begun. On projects for which the expenditures will occur prior to the debt issue, a resolution
declaring intention to reimburse certain expenditures with proceeds from debt must be
adopted within 60 days of expenditure on the project.
Budget & Financial Summary: The “Resolution Declaring Intention to Reimburse
Certain Expenditures with Proceeds from Debt” is necessary for this item because a portion
of the long term debt has not been issued for the project. This debt is scheduled to be
issued later this fiscal year.
Attachments:
1. Resolution Declaring Intention to Reimburse Certain Expenditures with
Proceeds from Debt
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23
24
25
April 26, 2012
Consent Agenda Item No. 2d
2009 Homeland Security Grant Adjustment Notice
To: David Neeley, City Manager
From: Robert Alley, Fire Chief
Agenda Caption: Presentation, possible action and discussion regarding the approval of a
resolution accepting from the Texas Division of Emergency Management (TDEM) the 2009
Homeland Security Grant Adjustment Notice (GAN).
Recommendation(s): Staff recommends acceptance of the grant adjustment notice from
Texas Division of Emergency Management.
Summary: The City of College Station has been awarded the 2009 Homeland Security
program grant of $82,000.00 through TDEM. The city has expended $81,973.50 on
equipment for the Fire and Police Departments. The remaining $26.50 will be returned to
the State Administrating Agency for redistribution.
Budget & Financial Summary: This is an equipment grant and the City of College Station
has no matching funds committed.
Attachments:
2009 Homeland Security Grant Adjustment Notice
Resolution Number:___________________
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27
28
April 26, 2012
Consent Agenda Item No 2e
University Dr and Copperfield Pkwy Signal
Advanced Funding Agreement
To: David Neeley, City Manager
From: Chuck Gilman, P.E., PMP, Public Works Director
Agenda Caption: Presentation, possible action, and discussion on an Advanced Funding
Agreement (AFA) with the Texas Department of Transportation (TxDOT) to powdercoat new
signal poles at the intersection of University Drive and Copperfield as part of TxDOT’s
project to widen University Drive from SH 6 to FM 158. The estimated cost of the City’s
participation is not to exceed $4,000.
Relationship to Strategic Goals: Diverse Growing Economy – Plan for and invest in
infrastructure, facilities, services, and personnel, and equipment necessary to meet project
needs and opportunities
Recommendation(s): Staff recommends approval of the AFA
Summary: The Texas Department of Transportation (TxDOT) is developing plans to widen
University Drive (FM 60) from SH 6 to FM 158 from an existing 2-lane undivided highway to
a 4-lane roadway with a raised median. As part of the widening project, a new signal at the
intersection of University Drive and Copperfield will be installed. For over a decade, the City
has installed or participated with TxDOT to install bronze powdercoated traffic signal poles
for an improved appearance of the infrastructure. Participation in this Advanced Funding
Agreement with TxDOT will continue the uniform appearance of the traffic signals
throughout the City.
Budget & Financial Summary: Funds for the City’s costs ($4,000) associated with this
project are available in the Public Works Traffic Operation budget.
Attachments:
1. Advanced Funding Agreement (AFA)
2. Map
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30
31
32
33
34
35
FM 60 and Copperfield Pkwy Intersection
S
H 6Un iversity Drive (FM 60)Copperfield Pkwy
Harvey Road (SH 30)36
April 26, 2012
Consent Agenda Item No. 2f
TAMUS Easement Agreement Renewal
Olsen Road at George Bush Drive
To: David Neeley, City Manager
From: Chuck Gilman, P.E., PMP, Public Works Director
Agenda Caption: Presentation, possible action, and discussion on an easement agreement
renewal with the Texas A&M University System for the purpose of operating and maintaining
a traffic signal at Olsen Road and George Bush Drive.
Relationship to Strategic Goals: Improving Mobility – Maintain and rehabilitate system to
avoid costly replacement
Recommendation(s): Staff recommends approval of the agreement
Summary: This agreement renews a previously approved between the Texas A&M
University System and the City of College Station for an easement to operate and maintain
a traffic signal at the intersection of Olsen Road and George Bush Drive.
Budget & Financial Summary: There are no budget or financial impacts associated with
the passage of this agreement.
Attachments:
1. Easement Agreement
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38
39
40
41
42
43
44
45
April 26, 2012
Consent Agenda Item No. 2g
Rock Prairie Road East Widening Design and ROW Project (ST0417)
Real Estate Contract – Rice / Parcel Nos. 5a and 5b
To: David Neeley, City Manager
From: Chuck Gilman, P.E., PMP, Public Works Director
Agenda Caption: Presentation, possible action, and discussion regarding approval of a real
estate contract between the City of College Station (Buyer) and Britt Rice (Seller) in the
amount of $60,448.00 for the purchase of right-of-way (2.377 acres) and a public utility
easement (1.058 acres) needed for the Rock Prairie Road East Widening Design and Right-
of-Way Project.
Relationship to Strategic Goals: Improving Mobility – Plan for infrastructure necessary to
meet projected growth and physical development. Provide complete streets that
accommodate vehicles, bicyclists, and pedestrians.
Recommendation(s): Staff recommends approval of the contract which will authorize
the Mayor to execute the contract and the City Attorney to complete the transaction.
Summary: On June 10, 2010, City Council authorized the acquisition of right-of-way and
utility easements along Rock Prairie Road East from SH 6 to William D. Fitch as part of the
Rock Prairie Road East Widening Design and ROW Project. The project includes the design
and right-of-way acquisition for the future widening of Rock Prairie Road East. The property
to be acquired is located along Rock Prairie Road East, between the State Highway 6
Frontage Road and Bird Pond Road. The right-of-way to be acquired for the road widening
includes 2.377 acres of land and the adjacent public utility easement includes 1.058 acres of
land.
The purchase price of $60,448.00 is a negotiated amount based on an appraisal completed
by the City’s Land Agent, Mark McAuliffe, a State Certified Real Estate Appraiser. A
settlement agreement was reached with the landowner for the appraised value of
$53,196.00 plus additional damages in the amount of $7,252.00 to compensate for
specialized fencing to maintain the current use of the property (grazing exotic animals).
Staff feels that the settlement amount is fair compensation for the right-of-way and
easement acquisition plus damages.
Budget & Financial Summary: The purchase price for the property to be acquired is
$60,448. Additional funds in the amount of approximately $1,000 will be required for
closing costs. The total current budget for the Rock Prairie Road East Widening Design and
ROW Project is $2,969,000. Funding for this project is from the 2003 general obligation
bond authorization. Funds in the amount of $1,407,918 have been expended or committed
to date, leaving a balance of $1,561,082 for remaining design, right-of-way purchases and
related expenses. This project budget is for design and land acquisition only. Funds for
construction are not currently budgeted.
Attachments:
1. Location Map
2. Real Estate Contract – Available in City Secretary’s Office
46
47
April 26, 2012
Consent Agenda Item No. 2h
Sale of a Home at 4214 Cripple Creek
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A Executive Director - Planning & Development Services
Agenda Caption: Presentation, possible action, and discussion regarding a Resolution approving a real
estate contract approving a bid received in response to ITB #12-053 for the sale of City property at 4214
Cripple Creek, an affordable home.
Relationship to Strategic Goals: Financially Sustainable City, Core Services and Infrastructure, and
Neighborhood Integrity
Recommendation(s): Staff recommends approval for the Mayor to sign the resolution, contract, and
deed transferring this property to the eligible bidder.
Summary: On March 27, 2012 staff released an Invitation to Bid for the sale of City property located at
4214 Cripple Creek to individuals, households, or families at or below 80% of the area median income.
Staff evaluated the bid submitted as of the April 10, 2012 deadline and this bid accomplishes the principal
requirement of selling this property to an individual, household, or family at or below 80% of the area
median income. This requirement is mandated by the U.S. Department of Housing and Urban
Development.
Staff, therefore, recommends approval of the currently held bid for sale of City property located at 4214
Cripple Creek.
Budget & Financial Summary: The subject property at 4214 Cripple Creek was constructed in 2010
utilizing HOME Investment Partnership Program grant funds in the amount of $149,335. The minimum
bid specified in the Invitation to Bid #12-053 was $149,900.00, the appraised value of the property. The
bid currently held bid is for $149,900.
Attachments:
Attachment 1: Resolution
Attachment 2: Real Estate Contract
Attachment 3: Location Map
48
49
50
51
52
53
54
55
56
57
4214 Cripple CreekCreek Meadows Subdivision
ROYDER ROAD
L
OWRY MEADOW
L
ANECREEK MEADOW BOULEVARD NORTH4214 Cripple Creek Location Map
58
59
April 26, 2012
Consent Agenda Item No. 2i
Purchase Exemption request for the Reynolds Company
To: David Neeley, City Manager
From: David Coleman, Director of Water Services
Agenda Caption: Presentation, possible action and discussion to authorize
expenditure of funds for FY-12, items exempt from competitive bidding as described
in Texas Local Government Code chapter 252.022, to purchase SCADA equipment
from the Reynolds Company, not to exceed $100,000.
Relationship to Strategic Goals: Financially sustainable city providing response to
core services and infrastructure.
Recommendation: Staff recommends approval of the purchase request.
Summary: In general, purchases are exempt from competitive bidding in
accordance with Local Government Code 252.022 (a)(7)(A); other purchases greater
than $50,000 available from one source. In specific, the Reynolds Company
purchases are available from only one source and thereby exempt from competitive
bidding in accordance with LGC 252.022 (a)(7)(D); captive replacement parts or
components for equipment, computer software and hardware maintenance and
equipment lease and maintenance.
The Water Services Department’s Supervisory Control and Data Acquisition (SCADA)
system monitors and helps operate the Water and Wastewater systems efficiently,
with minimal staff and within all regulatory requirements. In 2008, we requested
proposals from automation companies, and selected Allen Bradley as the sole
manufacturer to update our hardware/software and provide the best value to our
utilities. The use of one manufacturer is done to ensure all system components are
compatible, software programming is identical and that outside training and
inventory needs are minimized. The Reynolds Company is the exclusive distributor
for Allen Bradley products in the College Station area.
Whenever possible, we purchase Allen Bradley equipment directly from the
manufacturer by using the Federal GSA Purchasing Contract 70. However, not all
items necessary to complete the SCADA installations and replacements are available
on this contract. This fact requires the City to purchase the compatible equipment
from the authorized distributor, The Reynolds Company, and an estimate of annual
purchases is attached. Staff recommends approval of this purchase request, not to
exceed $100,000 to allow us to comply with Purchasing Policy and keep the SCADA
systems operating effectively.
Budget & Financial Summary: Funds are available in the appropriate areas of the
Water and Wastewater Funds for these purchases.
Attachment:
FY-12 Estimate
60
WELL 5 MOTOR SOFT STARTER PROJECT
Qty Catalog Number Description List Ea Net Ea Ext Net Ea (USD)
1 150-F625NBEB
SMC-Flex, Solid State Controller, Open, 625 A, 500 Hp @ 460V AC, Input Volt.: 200...480V,
Control Volt.: 100...120V AC, Pump Control Option 16,495.32$ 16,495.32$ 16,495.32$
1 20-HIM-A3 Hand Held Human Interface Modules - LCD Display, Full Numeric Keypad 186.85$ 186.85$ 186.85$
1 20-COMM-D Communication Modules - (IP30/Type 1), DeviceNet™353.50$ 353.50$ 353.50$
1 199-LG1 Terminal Lug Kit, #4..500 MCM AWG 25 mm2..240 mm2 127.26$ 127.26$ 127.26$
1 20-HIM-C3S
Human Interface Module Interface Cables - LCD Display, Full Numeric Keypad (includes 3 m
cable)292.90$ 292.90$ 292.90$
LCWWTP & NEW LIFT STATIONS
151606-XLS240E
1606-XLS240E: Performance Power Supply, 24-48V DC, 240 W, 120/240V AC / 110-300V
DC Input Voltage 575.70$ 575.70$ 8,635.50$
200 1492-J4 IEC 1-Circuit Feed-Through Block, 4mm² max. wire, Gray,Pkg. Qty. of 100 1.17$ 1.17$ 234.00$
6 1492-PD3263
1492 Power Block, Power Distribution Block, 3-Pole, Aluminum, 2 Openings Line Side, 6
Openings Load Side, 350 Amps 93.62$ 93.62$ 561.72$
6 1492-PBC2 Power Block Cover 6.75$ 6.75$ 40.50$
100700-HK32A24-4 700-HK General Purpose Slim Line Relay, 8 Amp Contact, DPDT, 24V 50/60Hz, Pilot Light 20.45$ 20.45$ 2,045.00$
100700-HN122
Mini 8-Blade Base Socket, Screw Terminals, Guarded Touch Safe Terminal Construction
(Pkg. Qty. 10)13.23$ 13.23$ 1,323.00$
40 1492-CJJ6-10 Screw Center Jumper, 6 mm Center to Center, 10 Pole, Yellow, Pkg. Qty. of 20 6.14$ 6.14$ 245.60$
HENSEL PARK & LUTHER STREET LIFT STATION PROJECT
4 1768 / 1769 CompactLogix System Group Selection
4 1769-L32E EtherNet Processor, 750 Kbyte Memory 2,969.40$ 2,969.40$ 11,877.60$
4 1769-SDN DeviceNet Scanner 835.27$ 835.27$ 3,341.08$
4 1769-PB4 Power Supply 24VDC Input 4A @ 5VDC 2A @ 24VDC 451.47$ 451.47$ 1,805.88$
4 1769-IF4I 4 Channnel Analog Current/Voltage Isolated Input Module 905.97$ 905.97$ 3,623.88$
4 1769-IQ16 16 Point 24 VDC Sinking/Sourcing Input Module 240.38$ 240.38$ 961.52$
4 1769-OB8 8 Point High Power 24VDC Output Module 252.50$ 252.50$ 1,010.00$
4 1769-ECR Right End Cap/Terminator 33.93$ 33.93$ 135.72$
4 1784-SD1 Industrial SD card 99.00$ 99.00$ 396.00$
4 1783-MS10T Stratix 8000 Ethernet Switch 10 Port Managed 2,110.00$ 2,110.00$ 8,440.00$
4 1783-SFP1GLX Stratix Fiber SFP, 1000Mbit over single-mode fiber 1,060.50$ 1,060.50$ 4,242.00$
Subtotal 66,374.83$
12 % Contigency 7,964.98$
Total 74,339.81$
already expensed this FY 24,000.00$
Total expected expenses with The Reynolds Company for this FY 98,339.81$
61
April 26, 2012
Consent Agenda Item No. 2j
City Wide Landscape Maintenance Contract Renewals
To: David Neeley, City Manager
From: Chuck Gilman, P.E., PMP, Public Works Director
Agenda Caption: Presentation, possible action, and discussion regarding approval of
renewals of landscape maintenance contracts to multiple vendors, and approval of change
orders to add additional sites to the contracts, to Green Teams for $266,629.22, to Rainbow
Gardens for $90,252.00, to Landscape USA for $50,205.00, to Roots for $12,240.00, and
to ProGreen for $81,728.00, in a total amount of $508,434.22.
Relationship to Strategic Goals: Financially Sustainable City Providing Response to Core
Services and Infrastructure – Spending taxpayer money efficiently.
Recommendation(s): Approval of the renewals and change orders.
Summary: In 2011, staff solicited proposals for all of the City’s landscape maintenance
needs (except regional parks and athletic fields). After receipt of the proposals, five
contractors were chosen to provide services in five categories.
These annual contracts expire on April 30, 2012. The City provides the option of a
maximum of two renewals of a contract upon agreement of both the City and the Contractor
with a maximum of an 8% increase in the cost of the contract. All five contractors have
returned signed agreements of the first renewal for one year. One of the five contractors,
Green Teams, Inc., has requested an increase of 3%. The other four contractors did not
request increases.
As several sites need to be added to the contracts, Staff also requests change orders to add
these sites to the applicable category.
Renewal Letters were requested from the current contractors for continuation of landscape
maintenance services into the 2012-2013 season. Change orders for additional sites are
also requested. The following is a summary of the recommendation for renewal and change
orders:
Original Previous 2011 2012 Renewal 2012
Vendor P.O. Contract $ Change Order Increase Total Renewal
Green Teams 110708 $240,974.00 $0 (3%) $7,229.22 $ 248,203.22
Rainbow Garden 110739 $ 84,342.00 $5,910.00 $0.00 $ 90,252.00
Landscape USA 110693 $ 50,205.00 $0 $0.00 $ 50,205.00
Roots 110709 $ 12,240.00 $0 $0.00 $ 12,240.00
ProGreen 110711 $ 65,493.00 $0 $0.00 $ 65,493.00
62
Total Change Order Requested Final
New 2102 Percent (2011 & 2012) Contract Amounts with
Vendor Change Order (25% max) All C.O.s and Renewals
Green Teams $18,426.00 7.65% $ 266,629.22
Rainbow Garden $0.00 7.01% $ 90,252.00
Landscape USA $7,380.00 14.7% $ 57,585.00
Roots $0.00 0% $ 12,240.00
ProGreen $16,235.00 24.8% $ 81,728.00
TOTAL: $508,434.22
Budget & Financial Summary: Budgeted ground maintenance of customer departments
will fund the contracted maintenance operations.
Attachments:
1. Renewal Letter – Green Teams
2. Renewal Letter – Landscape USA
3. Renewal Letter – Rainbow Gardens
4. Renewal Letter – Roots
5. Renewal Letter – Pro-Green Landscape
6. Change Order – Green Teams
7. Change Order – Landscape USA
8. Change Order – ProGreen
63
64
65
66
67
68
69
70
71
72
73
74
75
76
April 26, 2012
Consent Agenda Item No. 2k
Pad-Mounted Distribution Transformers
Re-Award of Line Item #2
To: David Neeley, City Manager
From: Jeff Kersten, Executive Director Business Services
Agenda Caption: Presentation, possible action and discussion regarding the cancellation
of award, of fifteen (15) 50 KVA Padmount Transformers, in the amount of $31,650.00 to
Texas Electric Cooperatives, and approval of new award to HD Supply Utilities in the amount
of $31,755.00.
Recommendation(s): Staff recommends that line item 2, fifteen (15) 50 KVA
Padmount Transformers be awarded to the next lowest bidder, HD Supply in the amount of
$31,755.00.
Summary: On April 12, 2012 Council approved the award of line item 2 of Bid #12-050
for Padmounted Distribution Transformers, to Texas Electric Cooperatives in the amount of
$31,650.00. After council award, during the process of issuing purchase orders, it was
discovered that Texas Electric Cooperatives had included an exception to liquidated
damages in a location that was separate from their bid proposal. By taking exception to the
liquidated damages, per the bid documents, Texas Electric Cooperative’s bid was subject to
a five (5) percent unit price increase.
After including the five (5) percent price increase Texas Electric Cooperatives was no longer
the lowest bidder. The next lowest bidder was HD Supply Utilities, in the amount of
$31,755.00. This will increase the total amount of award from $90,495.00 to $90,600.00.
Budget & Financial Summary: Six (6) sealed bids were received and opened on March
22, 2012. Funds are budgeted and available in the Electrical Fund. Various projects may be
expensed as supplies are pulled from inventory and issued.
Attachments: Revised Bid Tabulation #12-050
77
Order Quantity:6
INVENTORY #:285-086-00031
HD Supply #1 GE Prolec $1,934.00 $11,604.00 $2,416.06 8
HD Supply #2 Cental Maloney $1,771.00 $10,626.00 $2,260.24 10
HD Supply #3 ERMCO $1,843.00 $11,058.00 $2,337.84 8-10
KBS #1 Cooper $2,364.00 $14,184.00 $2,848.60 16-18
KBS #2 ERMCO $1,829.00 $10,974.00 $2,323.84 8-10
Priester-Mell & Nicholson Cental Maloney $1,776.00 $10,656.00 $2,265.24 10
Techline #1 Howard $1,814.00 $10,884.00 $2,302.59 8-10
Techline #2 Howard $1,825.00 $10,950.00 $2,309.04 10-12
TEC #1 GE $1,945.00 $11,670.00 $2,427.06 7
TEC #2 ERMCO $1,804.00 $10,824.00 $2,298.84 8-10
Wesco #1 ABB $1,866.00 $11,196.00 $2,381.00 8-10
Wesco #1 ABB $1,997.00 $11,982.00 $2,494.75 10-12
Low Bid
ITEM NUMBER: 1
Total Owning
Cost (TOC)
DELIVERY
(weeks)
ITEM DESCRIPTION: 25 KVA Padmount Transformer 240/120
BIDDER MANUFACTURER UNIT PRICE EXTENDED
PRICE
78
Order Quantity:15
INVENTORY #:285-086-00032
HD Supply #1 GE Prolec $2,164.00 $32,460.00 $2,998.09 8
HD Supply #2 Central Maloney $2,117.00 $31,755.00 $2,939.85 10
HD Supply #3 ERMCO $2,156.00 $32,340.00 $2,982.26 8-10
KBS #1 Cooper $2,845.00 $42,675.00 $3,677.93 16-18
KBS #2 ERMCO $2,162.00 $32,430.00 $2,988.26 8-10
Priester-Mell & Nicholson Central Maloney $2,123.00 $31,845.00 $2,945.85 10
Techline #1 Howard $2,186.00 $32,790.00 $2,997.31 8-10
Techline #2 Howard $2,258.00 $33,870.00 $3,015.34 10-12
TEC #1 GE $2,123.00 $31,845.00 $2,957.09 7
TEC #2 ERMCO $2,215.50 $33,232.50 $3,041.76 8-10
Wesco #1 ABB $2,215.50 $33,232.50 $3,091.24 8-10
Wesco #2 ABB $2,642.00 $39,630.00 $3,287.27 10-12
Low bid
Wesco #1 originally had tying low bid of $2110 but took exception to "liquidated damages and shipping liquidated damages".
Per bid specifications, 5% was added to the unit cost and recalculated to $2215.50. TOC was recalculated to $3091.24.
TEC #2 originally had tying low bid of $2110 but took exception to "liquidated damages and shipping liquidated damages".
Per bid specifications, 5% was added to the unit cost and recalculated to $2215.50. TOC was recalculated to $3041.76.
Total Owning
Cost (TOC)
DELIVERY
(weeks)
ITEM NUMBER : 2
ITEM DESCRIPTION: 50 KVA Padmount Transformer 240/120
BIDDER MANUFACTURER UNIT PRICE EXTENDED
PRICE
79
Order Quantity:6
INVENTORY #:285-086-00033
HD Supply #1 GE Prolec $2,676.00 $16,056.00 $3,785.47 8
HD Supply #2 Central Maloney $2,513.00 $15,078.00 $3,662.96 10
HD Supply #3 No bid $0.00 $0.00 $0.00 0
KBS #1 Cooper $3,208.00 $19,248.00 $4,325.24 22-24
KBS #2 ERMCO $2,648.00 $15,888.00 $3,790.82 8-10
Priester-Mell & Nicholson Central Maloney $2,520.00 $15,120.00 $3,669.96 8
Techline #1 Howard $2,835.00 $17,010.00 $3,930.08 8-10
Techline #2 Howard $2,904.00 $17,424.00 $3,903.51 10-12
TEC #1 GE $2,590.00 $15,540.00 $3,699.47 7
TEC #2 ERMCO $2,613.00 $15,678.00 $3,755.82 8-10
Wesco #1 ABB $2,574.60 $15,447.60 $3,812.39 8-10
Wesco #2 ABB $2,843.00 $17,058.00 $4,013.18 10-12
Low bid
Wesco #1 originally had low bid of $2452 but took exception to "liquidated damages and shipping liquidated damages".
Per bid specifications, 5% was added to the unit cost and recalculated to $2574.60. TOC was recalculated to $3812.69.
Total Owning
Cost (TOC)
DELIVERY
(weeks)
ITEM NUMBER : 3
ITEM DESCRIPTION: 75 KVA Padmount Transformer 240/120
BIDDER MANUFACTURER UNIT PRICE EXTENDED
PRICE
80
Order Quantity:6
INVENTORY #:285-086-00034
HD Supply #1 GE Prolec $3,108.00 $18,648.00 $4,479.48 8
HD Supply #2 Central Maloney $2,998.00 $17,988.00 $4,328.08 10
HD Supply #3 ERMCO $3,206.00 $19,236.00 $4,567.54 8-10
KBS #1 Cooper $3,516.00 $21,096.00 $4,878.10 22-24
KBS #2 ERMCO $3,181.00 $19,086.00 $4,542.54 8-10
Priester-Mell & Nicholson Central Maloney $3,006.00 $18,036.00 $4,336.08 10
Techline #1 Howard $3,320.00 $19,920.00 $4,662.46 8-10
Techline #2 Howard $3,350.00 $20,100.00 $4,491.09 10-12
TEC #1 GE $3,035.00 $18,210.00 $4,401.21 7
TEC #2 ERMCO $3,140.00 $18,840.00 $4,501.54 8-10
Wesco #1 ABB $3,073.35 $18,440.10 $4,516.98 8-10
Wesco #2 ABB $3,455.00 $20,730.00 $4,601.44 10-12
Low bid
Wesco #1 originally had low bid of $2927 but took exception to "liquidated damages and shipping liquidated damages".
Per bid specifications, 5% was added to the unit cost and recalculated to $3073.35. TOC was recalculated to $4516.98.
Total Owning
Cost (TOC)
DELIVERY
(weeks)
ITEM NUMBER : 4
ITEM DESCRIPTION: 100 KVA Padmount Transformer 240/120
BIDDER MANUFACTURER UNIT PRICE EXTENDED
PRICE
81
Order Quantity:3
INVENTORY #:285-086-00036
HD Supply #1 No bid $0.00 $0.00 $0.00 0
HD Supply #2 Central Maloney $5,708.00 $17,124.00 $8,595.14 10
HD Supply #3 ERMCO $6,145.00 $18,435.00 $9,215.07 8-10
KBS #1 No bid $0.00 $0.00 $0.00 0
KBS #2 ERMCO $6,096.00 $18,288.00 $9,166.07 8-10
Priester Mell & Nicholson Central Maloney $5,723.00 $17,169.00 $8,610.14 10
Techline #1 Howard $6,715.00 $20,145.00 $9,666.91 8-10
Techline #2 Howard $6,920.00 $20,760.00 $9,392.15 10-12
TEC #1 No bid $0.00 $0.00 $0.00 0
TEC #2 ERMCO $6,015.00 $18,045.00 $9,085.07 7-10
Wesco #1 ABB $5,051.00 $15,153.00 $8,092.13 8-10
Wesco #2 ABB $5,985.00 $17,955.00 $8,732.50 10-12
Low bid
Total Owning
Cost (TOC)
DELIVERY
(weeks)
ITEM NUMBER : 5
ITEM DESCRIPTION: 250 KVA Padmount Transformer 240/120
BIDDER MANUFACTURER UNIT PRICE EXTENDED
PRICE
82
SUMMARY
Vendor Manufacturer Quantity Unit Price Total Delivery
Item #1
25 KVA Padmount Transformer 240/120 HD Supply Central Maloney 6 $1,771 $10,626 10 weeks
Inventory #285-086-00031
Item #2
50 KVA Padmount Transformer 240/120 HD Supply Central Maloney 15 $2,117 $31,755 8-10 weeks
Inventory #285-086-00032
Item #3
75 KVA Padmount Transformer 240/120 HD Supply Central Maloney 6 $2,513 $15,078 10 weeks
Inventory #285-086-00033
Item #4
100 KVA Padmount Transformer 240/120 HD Supply Central Maloney 6 $2,998 $17,988 10 weeks
Inventory #285-086-00034
Total HD Supply $75,447
Item #5
250 KVA Padmount Transformer 240/120 Wesco ABB 3 $5,051 $15,153 8-10 weeks
Inventory #285-086-00036
Total Wesco $15,153
83
April 26, 2012
Consent Agenda Item No. 2L
East Side Sewer Service Design Contract Award
To: David Neeley, City Manager
From: Chuck Gilman, P.E., PMP, Public Works Director
Agenda Caption: Presentation, possible action, and discussion regarding a design contract
with Jones & Carter, Inc., in the amount of $204,000, for design of the East Side Sewer
Service Project.
Relationship to Strategic Goals: Financially Sustainable City Providing Response to Core
Services and Infrastructure – The infrastructure will provide sewer service and support
development within our CCN.
Recommendation(s): Staff recommends award of the professional services contract
to Jones & Carter, Inc. in the amount of $204,000.
Summary: Design and construction phase services for the East Side Sewer Service Project
arises out of the Interlocal Cooperation and Joint Development Agreement between the City
of College Station and the City of Bryan and relates to the sanitary sewer Certificate of
Convenience and Necessity (CCN) swap. As part of the CCN swap, the East Side Project will
provide sewer service to the service area within the City of Bryan corporate limits.
The project includes construction of approximately 3,100 linear feet of new gravity sewer, a
lift station, and approximately 3,800 linear feet of force main to serve properties along SH
30 southeast of the intersection with FM 158. Approximately 2,500 linear feet of existing
sanitary sewer along SH 30 in the College Station corporate limits will also be upsized in
order to convey flows to the Carters Creek Wastewater Treatment Plant.
Budget & Financial Summary: Funds in the amount of $1,538,000 are currently budgeted
for this project in the Wastewater Capital Improvement Projects Fund. The City of College
Station will be reimbursed by the City of Bryan for half of the project cost.
Attachments:
1. Non Standard Form of Architects & Engineering Professional Services Contract (On
File in the City Secretary’s Office)
2. Project Map
84
FM 158
VISTA LNPAMELA LANE
±
0 500 1,00 0 1,50 0 2,000250
Feet1 in = 60 0 ft
LegendForce Main
Lift Station
Gravity Sewer
SH 30
HARVEY ROADEAST SIDE SEWER SERVICE (WF1382208)
85
April 26, 2012
Consent Agenda Item No. 2m
Medical Waste Hauling Franchise
with Waste Management Health Care Solutions, Inc.
To: David Neeley, City Manager
From: Jason Stuebe, Assistant to the City Manager
Agenda Caption: Presentation, possible action and discussion on the third and final of
three readings of a non-exclusive franchise agreement with Waste Management Health Care
Solutions, Inc. for the purpose of collecting and disposing treated and untreated medical
waste from various health care related facilities.
Recommendation(s): Staff recommends approval.
Summary: Section 120 of the City Charter states that “The City of College Station shall
have the power by ordinance to grant any franchise or right mentioned in the preceding
sections hereof, which ordinance, however, shall not be passed finally until it shall have
been read at three (3) separate regular meetings of the City Council.” The second reading
was approved at the April 12, 2012 Council Meeting.
This proposed non-exclusive five (5) year franchise agreement allows for the collection,
hauling, and disposal of treated and untreated medical waste from various health care
facilities within the city limits. The disposal of medical waste, a State mandated service,
was privatized in 2005 because untreated medical waste cannot be depositing in any
BVSWMA landfill. Staff maintains that continuing this practice is the most cost-effective
way to offer this service to our community.
This is the first Franchise sought by Waste Management, Inc. for this service. Once
approved, it will be the second active non-exclusive franchise granted to provide Medical
Waste disposal services.
Budget & Financial Summary: The franchisee agrees and shall pay to the City five
percent (5%) of the franchisee’s monthly gross delivery and hauling revenues generated
from the collection services provided for in the Franchise Agreement.
Attachments:
1. Franchise Ordinance is on file with the City Secretary
86
April 26, 2012
Consent Agenda Item No. 2n
Justice Assistance Grant (JAG) Inter-local Agreement
To: David Neeley, City Manager
From: Jeff Capps, Chief of Police
Agenda Caption: Presentation, possible action, and discussion on an inter-local agreement
(ILA) with Brazos County and the City of Bryan for the purpose of application and
acceptance of a U.S. Department of Justice, 2012 Justice Assistance Grant (JAG).
Relationship to Strategic Goals: Financially Sustainable City
Recommendation(s): Staff recommends Council approval.
Summary: This Edward Byrne Memorial Justice Assistance Grant (JAG) Program is the
primary provider of federal criminal justice funding to state and local jurisdictions and fund
all components of the criminal justice system. JAG funded projects may address crime
through the provision of services directly to individuals and /or communities by improving
the effectiveness and efficiency of criminal justice systems, processes and procedures.
College Station Police Department intends to utilize this funding for the purpose of
supporting local initiatives, technical assistance, training, equipment, supplies and
information technology projects in support of our community-oriented mission.
Budget & Financial Summary: This 2012 JAG allocation for Brazos County is $55,643.
This amount is based upon a statutory JAG formula that considers the jurisdiction’s share of
state population and reported part 1 violent crime statistics. The grant has no match
requirement.
Individual recommended allocations designated by the Department of Justice are: Brazos
County- $0; Bryan- $39,472; College Station- $16,171 for a total of $55,643. Brazos
County has been certified as a disparate jurisdiction. As such, all jurisdictions must enter
into an Inter-Local Agreement to specify an award distribution to each unit of local
government in a manner that will address disparity and furthermore, must apply for funding
jointly.
College Station and Bryan Police Departments have agreed to provide 15% of their
recommended funding to Brazos County Sheriff’s office in an effort to address disparity.
After providing 15% to the Brazos County Sheriff’s office, the allocations are as follows:
Brazos County - $8,346.45; Bryan - $33,551.20; College Station - $13,745.35 for a total of
$55,643.
Bryan Police Department will serve as the administering agency.
Attachments:
1. Inter-local Agreement
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90
91
92
93
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April 26, 2012
Regular Agenda Item No. 1
Old Arrington Road Right-of-Way Abandonment
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director - Planning & Development Services
Agenda Caption: Public Hearing, presentation, possible action, and discussion approving
an ordinance vacating and abandoning a 1.18 Acre portion of Old Arrington Road Right-of-
Way, extending 1,000 feet, more or less, from the northwest corner of a 5.53 acre tract in
the SW Robertson League, A-202 recorded in Volume 8361, Page 279 to the northwest
corner of a 2.445 acre tract in the SW Robertson League, A-202 recorded in Volume 9338,
Page 178 of the Official Records of Brazos County, Texas.
Relationship to Strategic Initiatives: N/A
Recommendation(s): Staff recommends approval of the ordinance.
Summary: This proposed abandonment of a portion of old Arrington Road as presented
in the ordinance proposes to vacate and abandon both improved and unimproved portions
along the length of property owned by Brazos Texas Land Development, LLC. Because of
currently existing utilities and because of the future need for placement of water facilities
within this old right-of-way, the ordinance requires dedication of a public utility easement by
separate instrument before abandonment may occur. Also, the ordinance requires
turnarounds and signage where the paved portion will end to address safety concerns.
Budget & Financial Summary: N/A
Attachments:
1. Attachment 1 - Vicinity Map
2. Attachment 2 - Location Map
3. Attachment 3 - Ordinance
Ordinance Exhibit "A"
Ordinance Exhibit “B”
4. Attachment 4 - Application for Abandonment (On file at the City Engineer’s Office)
95
96
97
98
99
EXHIBIT A TO ORDINANCE NO. __________
100
EXHIBIT A TO ORDINANCE NO. __________
101
EXHIBIT A TO ORDINANCE NO. __________
102
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O:5 easements/brazos texas land development/pue-2012-1.18 acre/public utility easement – 1.18 acre tract 02/01/2012
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE
A NATURAL PERSON, YOU MAY REMOVE OR STRIKE
ANY OR ALL OF THE FOLLOWING INFORMATION FROM
ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN
REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN
THE PUBLIC RECORDS: YOUR SOCIAL SECURITY
NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
PUBLIC UTILITY EASEMENT
DATE: ________________________, 2012
GRANTORS AND GRANTORS’ MAILING ADDRESSES: (including County)
BRAZOS TEXAS LAND WELLBORN SPECIAL UTILITY
DEVELOPMENT, LLC, DISTRICT OF BRAZOS COUNTY
A Texas Limited Liability Company P.O. Box 250
1203 University Drive East Brazos County
Brazos County Wellborn, Texas 77881
College Station, Texas 77840
GRANTEE: CITY OF COLLEGE STATION, TEXAS
GRANTEE'S MAILING ADDRESS: P. O. Box 9962
(including County) Brazos County
College Station, Texas 77842
CONSIDERATION: Ten Dollars ($10.00) and other good and valuable consideration.
PROPERTY:
All that certain tract or parcel of land containing 1.18 acres, more or less, lying
and being situated in the Augustus Babille Survey, Abstract No. 75, and the S. W.
Robertson League, Abstract No. 202, College Station, Brazos County, Texas; said
tract being a portion of Old Arrington Road and appearing to be a portion of the
remainder of a called 100 acre tract as described by a deed to Milton D. Williams
EXHIBIT B TO ORDINANCE NO. __________
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O:5 easements/brazos texas land development/pue-2012-1.18 acre/public utility easement – 1.18 acre tract 03/13/2012
recorded in Volume 277, Page 389 of the Deed Records of Brazos County, Texas,
and a portion of the remainder of a called 185.2 acre tract as described by a deed
to J. H. Binney and Lloyd D. Smith recorded in Volume 103, Page 444 of the
Deed Records of Brazos County, Texas; said 1.18 acre tract being more
particularly described by metes and bounds on Exhibit "A" attached hereto and
made a part hereof for all intents and purposes.
This conveyance shall grant the rights herein specified only as to that portion of the above-
described Property more particularly described on the attached Exhibit "A" known as the
"Easement Area," and any additional area outside the Easement Area necessary to install and
attach equipment, guy wires, and anchors necessary and incident to the uses of the Easement
Area to erect, construct, install, and thereafter use, operate, inspect, repair, maintain, reconstruct,
modify and remove the following:
Electric transmission and distribution lines;
Water lines and sanitary sewer lines, connecting lines,
access facilities, and related equipment;
Storm sewers and collection facilities;
Television, telephone, and communications lines;
Drainage ditches, drainage pipes and all other
drainage structures, surface and subsurface;
upon, over, and across the said Property as described and any ways, streets, roads, or alleys
abutting same; and to cut, trim, and control the growth of trees and other vegetation on and in the
Easement Area or on adjoining property of Grantors, which might interfere with or threaten the
operation and maintenance of any public utility equipment, accessories, or operations. It being
understood and agreed that any and all equipment and facilities placed upon said Property shall
remain the property of Grantee.
Grantors hereby expressly acknowledge that they are the owners of this property.
Grantors expressly subordinate all rights of surface use, incident to the mineral estate owned by
Grantors, to the above-described uses of said surface by Grantee. Grantors will provide Grantee
with the names and addresses of all lenders, if any, and agrees to lender's subordinations on
behalf of Grantee, if any.
RESERVATIONS AND RESTRICTIONS: NONE
TO HAVE AND TO HOLD, the rights and interests herein described unto the CITY OF
COLLEGE STATION, TEXAS, and its successors and assigns, forever, and Grantors do hereby
bind themselves and their respective successors and assigns to warrant and forever defend, all
and singular, these rights and interests unto the CITY OF COLLEGE STATION, TEXAS, and its
EXHIBIT B TO ORDINANCE NO. __________
104
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O:5 easements/brazos texas land development/pue-2012-1.18 acre/public utility easement – 1.18 acre tract 03/13/2012
successors and assigns, against every person whomsoever lawfully claiming, or to claim same, or
any part thereof.
BRAZOS TEXAS LAND DEVELOPMENT, LLC,
A Texas Limited Liability Company
By:_______________________________________
Salim M. Ismail, Partner and Director
WELLBORN SPECIAL UTILITY DISTRICT
OF BRAZOS COUNTY
By:_______________________________________
Printed Name:______________________________
Title:_____________________________________
APPROVED AS TO FORM.
THIS DOCUMENT MAY NOT
BE CHANGED WITHOUT
RE-SUBMISSION FOR APPROVAL.
____________________________
City Attorney
EXHIBIT B TO ORDINANCE NO. __________
105
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O:5 easements/brazos texas land development/pue-2012-1.18 acre/public utility easement – 1.18 acre tract 03/13/2012
THE STATE OF TEXAS
ACKNOWLEDGMENT
COUNTY OF BRAZOS
This instrument was acknowledged before me on this ______ day of ________________, 2012,
by SALIM M. ISMAIL, Partner and Director of BRAZOS TEXAS LAND DEVELOPMENT,
LLC, a Texas Limited Liability Company, on behalf of said BRAZOS TEXAS LAND
DEVELOPMENT, LLC, a Texas Limited Liability Company.
____________________________________
Notary Public in and for the State of Texas
THE STATE OF TEXAS
ACKNOWLEDGMENT
COUNTY OF BRAZOS
This instrument was acknowledged before me on this ______ day of ________________, 2012,
by ____________________________, _________________ of WELLBORN SPECIAL
UTILITY DISTRICT OF BRAZOS COUNTY, on behalf of said WELLBORN SPECIAL
UTILITY DISTRICT OF BRAZOS COUNTY.
____________________________________
Notary Public in and for the State of Texas
PREPARED IN THE OFFICE OF: AFTER RECORDING, RETURN TO:
City of College Station City of College Station
Legal Department Legal Department
P.O. Box 9960 P.O. Box 9960
College Station, TX 77842-9960 College Station, TX 77842-9960
EXHIBIT B TO ORDINANCE NO. __________
106
EXHIBIT A
EXHIBIT B TO ORDINANCE NO. __________
107
EXHIBIT A
EXHIBIT B TO ORDINANCE NO. __________
108
EXHIBIT A
EXHIBIT B TO ORDINANCE NO. __________
109
Exhibit A - Abandonment Limits
Page 1 of 3110
Exhibit A - Abandonment Limits
Page 2 of 3111
Exhibit A - Abandonment Limits
Page 3 of 3112
April 26, 2012
Regular Agenda Item No. 2
Rezoning for 2849 Barron Road
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services
Agenda Caption: Public Hhearing, presentation, possible action, and discussion on an
ordinance amending Chapter 12, “Unified Development Ordinance,” Section 4.2, “Official Zoning
Map,” of the Code of Ordinances of the City of College Station for a rezoning from PDD to PDD
on 3.19 acres located at 2849 Barron Road, generally located at the corner of Barron Road and
SH 40, North of the Sonoma Subdivision.
Relationship to Strategic Goals: Core Services and Infrastructure, Diverse Growing
Economy
Recommendation(s): The Planning and Zoning Commission considered this item at their April
5, 2012 meeting and recommended that the rezoning be granted and that the requirement for
the applicant to construct the multi-use path be waived, but require the use of a Public Access
Easement inside of the Public Utility Easement to accommodate future construction of the multi-
use path (4-3) with a recommendation of approval of the rezoning request (7-0). Staff had
recommended approval of the rezoning but denial of the request to not construct the multi-use
path as required by the UDO.
Summary: The amendment will change the zoning on 3.19 acres from PDD Planned
Development District to PDD Planned Development District. The proposed PDD rezoning
request is an amendment to the existing PDD zoning in order to reorient buildings, adjust
building sizes and to seek a waiver to the multi-use path requirement along SH 40.
The Unified Development Ordinance provides the following review criteria for zoning map
amendments:
REVIEW CRITERIA
1. Consistency with the Comprehensive Plan: The Comprehensive Plan in this area calls
for Suburban Commercial. This designation is intended for “concentrations of commercial
activities that cater primarily to nearby residents versus the larger community or region.” As
a result, design of these structures are intended to be compatible in size, roof type and
pitch, architecture, and lot coverage with the surrounding single-family residential uses.
The current zoning of the property is PDD, Planned Development District with a base C-3,
Light Commercial zoning. The proposed rezoning is adjusting the layout from the previously
approved PDD Concept Plan, with no additional uses being proposed.
2. Compatibility with the present zoning and conforming uses of nearby property and
with the character of the neighborhood: The uses requested for the PDD are those
allowed under the C-3 zoning designation, with the addition of drive-thrus that are presently
excluded in C-3 districts. Given the proposed layout of the Concept Plan, drive-thrus could
not be accommodated on the site without a revised rezoning and Concept Plan. The
proposed uses are compatible with the surrounding R-1 zoned properties. A 15-foot buffer
yard with a 6-foot wall is being provided along the property line of the R-1 properties. This is
the minimum buffer requirement for commercial uses against single-family and would be the
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standard buffer required were this to develop in a C-1 or C-3 district where such uses are
allowed.
3. Suitability of the property affected by the amendment for uses permitted by the
district that would be made applicable by the proposed amendment: The property is
located at the intersection of a minor arterial and a highway. This is a suitable location for a
small scale commercial development that could serve the existing Sonoma and Southern
Trace residential subdivisions, other existing larger lot residential in the area, as well as
future residential planned for in the area.
4. Suitability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment: The size
and location of the property is suitable for light commercial uses. With its proximity to single-
family lots, the uses allowed under the C-3 Light Commercial zoning district are suitable for
this property.
5. Marketability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment: The
property is currently marketable for small scale commercial and office uses. The purpose of
the request is to reorient the buildings on the site and adjust the building square footages.
6. Availability of water, wastewater, stormwater, and transportation facilities generally
suitable and adequate for the proposed use: The subject tract is located adjacent to an
18-inch water main along Barron and a 24-inch water main along SH 40. The subject tract is
located adjacent to an 8-inch sanitary sewer main which is located near the northeast
property corner. The subject tract is located adjacent to and may take access to either
Barron Road (Minor Arterial) and/or SH 40 (Freeway); however, access to SH 40 will require
TxDOT approval and permitting. TxDOT has indicated in their comments that a deceleration
lane would be required for a driveway along SH 40.
Construction of the Barron Road widening has been completed and this minor arterial is
capable of carrying up to 30,000 daily trips.
The subject tract is located in the Spring Creek Drainage Basin. There is no FEMA
regulated Special Flood Hazard Area located on this tract. Development of this tract will be
required to meet the City’s Storm Water Design Guidelines. The subject tract is located in
the Spring Creek Sanitary Sewer Impact Fee Area.
CONCEPT PLAN REVIEW CRITERIA
1. The proposal will constitute an environment of sustained stability and will be in
harmony with the character of the surrounding area: The rural character in the area has
been changing with the construction of the new College Station ISD High School, continued
build out of the Sonoma Subdivision, and future planned single-family residential across
Barron Road. The proposed concept plan revises the previously approved concept plan and
would provide suburban commercial uses for the existing and proposed residential in the
area.
Changes from the previously approved concept plan include reorientation of buildings,
adjustment of building sizes and a request for a waiver to the multi-use path requirement
along SH 40.
114
2. The proposal is in conformity with the policies, goals, and objectives of the
Comprehensive Plan, and any subsequently adopted Plans, and will be consistent
with the intent and purpose of this Section: The proposed uses are in conformance with
the Comprehensive Plan goals and policies to provide neighborhood-focused retail in
proximity to residential areas. The proposal includes buildings that incorporate residential
components such as covered porches, single windows, and the use of timber and glass as
architectural accents.
3. The proposal is compatible with existing or permitted uses on abutting sites and will
not adversely affect adjacent development: The proposed layout meets the minimum
buffer standards between commercial and residential uses. This buffer consists of 15-foot
buffer yard and a 6-foot masonry wall. But given the proximity to single-family homes, there
should be greater consideration for reconfiguration to decrease the impact it will have on the
existing and future residential uses on the surrounding lots.
4. Every dwelling unit need not front on a public street but shall have access to a public
street directly or via a court, walkway, public area, or area owned by a homeowners
association: All structures in the concept plan front on either SH 40 or Barron Road.
5. The development includes provision of adequate public improvements, including, but
not limited to, parks, schools, and other public facilities: No public open space is being
dedicated with this proposal. The concept plan does incorporate a detention area for
stormwater management on the east side of the property. No parkland dedication is required
for commercial projects, and no voluntary dedications are proposed. The applicant has
requested a waiver to the multi-use path requirement along SH 40. This multi-use path is
identified on the Bicycle, Pedestrian and Greenways Master Plan and is planned to extend
along SH 40 from SH6 to FM 2154. Staff is not supportive of the waiver request as it is vital
to provide the multi-use path when the property develops so that adequate room is given
and that the future multi-use path connection is not lost.
6. The development will not be detrimental to the public health, safety, welfare, or
materially injurious to properties or improvements in the vicinity: Staff does not believe
that the improvements will be materially injurious to properties in the vicinity. Although, it
may have an impact on the resale value of homes directly adjacent to the commercial site.
7. The development will not adversely affect the safety and convenience of vehicular
bicycle, or pedestrian circulation in the vicinity, including traffic reasonably expected
to be generated by the proposed use and other uses reasonably anticipated in the
area considering existing zoning and land uses in the area: The proposed development
was not required to submit a traffic impact analysis because it did not generate enough
traffic to surpass the 150 vehicles per the peak hour threshold. This development will take
access on SH 40 and on Barron Road.
Construction on Barron Road has been recently completed. With this construction, Barron
Road has been upgraded from a two-lane rural collector to a four-lane minor arterial to
include bike lanes and sidewalks on both sides of the street. The Barron Road project also
included a traffic signal at the intersection of Barron Road and SH 40. This development will
not affect the safety and convenience of vehicular, bicycle and pedestrian circulation on
Barron Road.
The driveway accessing SH 40 will include the extension of the right turn lane to Barron
Road, this will in effect create a right turn deceleration lane onto the proposed driveway.
115
This requirement was at the direction of TxDOT and will be part of the permitting process.
This development will not affect the safety and convenience of vehicular, bicycle and
pedestrian circulation on SH 40.
Budget & Financial Summary: N/A
Attachments:
1. Background Information
2. Aerial & Small Area Map (SAM)
3. Draft Planning & Zoning Commission Minutes – April 5, 2012
4. Ordinance
116
NOTIFICATIONS
Advertised Commission Hearing Date: April 5, 2012
Advertised Council Hearing Dates: April 26, 2012
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
Sonoma Homeowners Association
Property owner notices mailed: 34
Contacts in support: None at the time of Staff Report
Contacts in opposition: None at the time of Staff Report
Inquiry contacts: 1
ADJACENT LAND USES
Direction Comprehensive Plan Zoning Land Use
North
(across Barron Rd)
Minor Arterial /
Suburban Commercial
A-O, Agricultural Open Single-family
South General Suburban R-1, Single-Family
Residential
Single-family
East General Suburban R-1, Single-Family
Residential
Single-family
West
(across SH 40) Highway /
Suburban Commercial
C-3, Light-Commercial Single-family
DEVELOPMENT HISTORY
Annexation: 1995
Zoning: A-O, Agricultural Open to C-3, Light Commercial (2006)
C-3, Light Commercial to PDD, Planned Development (2008)
Final Plat: Unplatted
Site development: Vacant
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April 5, 2012 P&Z Regular Meeting Minutes Page 1 of 2
MINUTES
PLANNING & ZONING COMMISSION
Regular Meeting
April 5, 2012, 7:00 p.m.
City Hall Council Chambers
College Station, Texas
COMMISSIONERS PRESENT: Mike Ashfield, Craig Hall, Bo Miles, Jodi Warner, Jim
Ross, James Benham, and Jerome Rektorik
COMMISSIONERS ABSENT: None
CITY COUNCIL MEMBERS PRESENT: Jess Fields
CITY STAFF PRESENT: Bob Cowell, Lance Simms, Alan Gibbs, Carol Cotter, Jason
Schubert, Teresa Rogers, Venessa Garza, Joe Guerra, Erika Bridges, Mary Ann Powell, Matt
Robinson, Lauren Hovde, Brittany Caldwell, and Carrie McHugh
1. Call meeting to order
Chairman Ashfield called the meeting to order at 7:00 p.m.
2. Public hearing, presentation, possible action, and discussion on a Rezoning from PDD
Planned Development District to PDD Planned Development District, for 3.19 acres
located at 2849 Barron Road, generally located at the corner of Barron Road and SH 40,
North of the Sonoma Subdivision. Case #12-00500041 (MR) (Note: Final action on
this item is scheduled for the April 26, 2012 City Council Meeting - subject to
change)
Senior Planner Robinson presented the rezoning and recommended approval with the
condition that the request of the waiver to the multi-use path be removed.
There was general discussion amongst the Commission regarding the multi-use path.
Greenways Program Manager Garza stated that this project is not one that the City
currently has funding for.
Jesse Durden, applicant, gave an overview of the project and stated the reason for the
waiver request is because the multi-use path connects to nowhere, there are safety
concerns, and the location of the path is not feasible.
Ms. Garza explained to the Commission why the path was included on the Bike,
Pedestrian, and Greenways Master Plan map.
There was general discussion amongst the applicant and the Commission regarding the
multi-use path.
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April 5, 2012 P&Z Regular Meeting Minutes Page 2 of 2
Joe Schultz, applicant’s engineer, said that the applicant is not against the multi-use path
being built, but they do not feel it is appropriate to be built at this time since it will not
connect to another multi-use path.
Commissioner Benham suggested not requiring the construction of the multi-use path by
the applicant, but requiring the applicant to set aside land for the City to build the multi-
use path when the funds were available.
Chairman Ashfield opened the public hearing.
Sherry Ellison, representing the Bicycle, Pedestrian, and Greenways Advisory Board,
said that the Board reviewed the waiver and felt that it was important that the multi-use
path be built.
Chairman Ashfield closed the public hearing.
There was general discussion amongst the Commission regarding the multi-use path.
Commissioner Benham motioned to recommend that the waiver be granted that
waives the requirement for the applicant to construct the multi-use path, but
require the use of a Public Access Easement inside of the Public Utility Easement.
Commissioner Miles seconded the motion, motion passed (4-3). Chairman Ashfield
and Commissioners Warner and Ross were in opposition.
Commissioner Warner motioned to recommend approval of the rezoning.
Commissioner Rektorik seconded the motion, motion passed (7-0).
The meeting was adjourned at 9:40 p.m.
Approved: Attest:
______________________________ ________________________________
Mike Ashfield, Chairman Brittany Caldwell, Admin. Support Specialist
Planning & Zoning Commission Planning & Development Services
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April 26, 2012
Regular Agenda Item No. 3
Rezoning for Foster Avenue Apartments
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services
Agenda Caption: Public hearing, presentation, possible action, and discussion regarding an
ordinance amending Chapter 12, “Unified Development Ordinance,” Section 4.2, “Official Zoning
Map,” of the Code of Ordinances of the City of College Station for a rezoning from R-6 to PDD
for 0.73 acre on Lots 9 and 10, Block 3 of the College Hills Estates Subdivision located at 1024
and 1026 Foster Avenue, generally located at the intersection of Foster Avenue and Francis
Drive.
Relationship to Strategic Goals: Core Services and Infrastructure, Neighborhood Integrity,
Diverse Growing Economy, Sustainable City
Recommendation(s): The Planning and Zoning Commission considered this item at their April
5, 2012 meeting and voted 6-0 to recommended approval of the rezoning request. Staff also
recommended approval.
Summary: The amendment will change the zoning on 0.73 acre from R-6 High-Density Multi-
Family Residential to PDD Planned Development District This request is to use the PDD
Planned Development District to strive toward the creation of an Urban environment for a multi-
family development, while seeking compatibility with the existing residential neighborhood.
The Unified Development Ordinance provides the following review criteria for zoning map
amendments:
REVIEW CRITERIA
1. Consistency with the Comprehensive Plan: The proposed zoning is consistent with the
Urban Redevelopment land use designation found in the Comprehensive Plan Future Land
Use and Character Map. The designation language of the Community Character Chapter
states that such a designation should be used to accommodate intense development activity
including townhouses, duplexes, and high-density apartments. As part of the
Redevelopment designation, the Comprehensive Plan requires careful site planning and
building design to complement the existing neighborhood. The Eastgate Neighborhood Plan
specifies that there is a need to “promote redevelopment around the perimeter of the
neighborhood that meets community needs and is complimentary to the neighborhood.” The
Plan also describes that the purpose of a PDD Planned Development District is to promote
and encourage innovative development that is sensitive to surrounding land uses. In
addition, the Plan discusses increasing the density in the core or College Station to reduce
pressure on greenfield development for apartments and other student-oriented rentals
toward the fringe of the City.
2. Compatibility with the present zoning and conforming uses of nearby property and
with the character of the neighborhood: Most of the properties that abut Foster Avenue
on the east and west side, including the subject lots, are zoned R-6 High-Density Multi-
Family. The properties along this portion of the west side of Foster Avenue are designated
as Urban Redevelopment in the Comprehensive Plan Land Use and Character Map. As
described above, this designation specifically promotes multi-family development. The east
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side of Foster Avenue is designated as Neighborhood Conservation. The lot directly across
Foster Avenue from the subject lots is zoned R-1 Single-Family Residential. This indicates
the City and resident’s desire for the character and integrity of the neighborhood to be
continued in the current or an improved fashion. Redevelopment activity proposed along
the west side of Foster Avenue must taken into consideration the existing neighborhood and
special attention is required to ensure compatibility between the different land uses and
densities.
3. Suitability of the property affected by the amendment for uses permitted by the
district that would be made applicable by the proposed amendment: The Unified
Development Ordinance states that dense multi-family development should occur within
close proximity to the Texas A&M University campus. Being located across from campus
and within the first block off of Texas Avenue, the intensity of development in this location is
anticipated to be higher. This is contrasted by the need for appropriate development that
abuts the existing single-family neighborhood. The proposed PDD Planned Development
District allows for the density which is appropriate for the location while incorporating
additional elements, discussed in the later portion of this report, that increase the
compatibility with the neighborhood.
4. Suitability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment: The PDD
Planned Development District will allow for the development of high-density multi-family
housing. The same use is permitted under the current R-6 High-Density Multi-Family zoning
district. The existing use on the property is an apartment complex developed at 12.3 units
per acre.
5. Marketability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment: The current
zoning district of R-6 High-Density Multi-Family allows for a viable use that has been in
operation for several decades. The apartment building currently has 9 units. As visible from
the number of registered rental units in the Eastgate neighborhood, there is a market for
student rentals in this area due to the convenient distance to campus. The marketability is
increased by the proposed PDD Planned Development District, due to the requested
meritorious modifications, because of a higher achievable unit count than with a R-6 High-
Density Multi-Family district.
6. Availability of water, wastewater, stormwater, and transportation facilities generally
suitable and adequate for the proposed use: There are existing 2-inch, 6-inch, and 8-
inch water lines available to serve this property. At site development, further analysis of
existing water line capacity will be required and improvements to the existing water system
may be necessary to support domestic and fire flow demands. There is also an existing 12-
inch sanitary sewer line along Foster Ave. which may provide service to this site. Drainage
is mainly to the south within the Wolf Pen Creek Drainage Basin. Drainage and other public
infrastructure improvements required with site development shall be designed and
constructed in accordance with the BCS Unified Design Guidelines. Existing infrastructure,
with the possible exception of the current water system, appears to be adequate for the
proposed use. The proposed development will be allowed a single point of access from
Foster Avenue.
REVIEW OF CONCEPT PLAN
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The applicant has provided the following information related to the purpose and intent of the
proposed zoning district:
“To provide a sustainable, pedestrian and bicycle-friendly multi-family
development that responds to demands for the College Station community and
that meets the intent of the Comprehensive Plan and the Eastgate Neighborhood
Plan. The PDD zoning will encourage responsible redevelopment of the site in a
manner that is compatible with the existing character of the Eastgate
neighborhood and one that sets the tone for future redevelopment nearby.”
Base Zoning and Meritorious Modifications
The applicant is proposing to develop using the R-6 High-Density Multi-Family zoning
classification standards for the requested PDD. At the time of site plan, the project will need to
meet all applicable site development standards of the UDO for the R-6 High-Density Multi-
Family zoning classification, except where meritorious modifications are granted with the PDD
zoning. The applicant is requesting the following meritorious modifications:
1. UDO Section 5.2 “Residential Dimensional Standards”:
A reduction in the building setbacks will promote an Urban environment and allows the parking
to be placed in a less obtrusive locations to enable the development to be more compatible with
the neighborhood.
Standard R-6 Dimension Requested Dimension
Front Setback (Foster) 15 feet 10 feet
Street Side Setback (Francis) 15 feet 10 feet
Rear Setback (Chili’s) 20 feet 1.5 feet
2. UDO Section 7.2.I “Number of Off-Street Parking Spaces Required”
The number of parking spaces required by the Unified Development Ordinance is determined by
the number of bedrooms per dwelling unit and the size of said bedrooms. The applicant is
requesting to supply 75% of the parking requirement found in Section 7.2.I of the Unified
Development Ordinance. The development will consist primarily of 1-bedroom and 2-bedroom
units which require additional parking per bedroom than 3-bedroom or 4-bedroom units. The
reduction in parking allows the development to achieve a high number of units while reducing
the visibility of cars.
The Unified Development Ordinance provides the following review criteria for PDD
Concept Plans:
1. The proposal will constitute an environment of sustained stability and will be in
harmony with the character of the surrounding area: An increase in density on the subject
property will broaden the housing choices for renters in the Eastgate Area. By placing the
development within close proximity to campus, the resident dependency on vehicles to access
the University will decrease. Residents may instead utilize alternative means of transportation
such as biking and walking. In addition, the College Hills Estates Homeowners Association was
consulted on the site layout and building design. The tallest portion of the building will be
located at the core, defined as 30 feet from the abutting rights-of-way, of the lot and will be a
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maximum of 50-feet in height (four stories). The perimeter of the building will be a maximum of
35-feet in height (three stories).
2. The proposal is in conformity with the policies, goals, and objectives of the
Comprehensive Plan, and any subsequently adopted Plans, and will be consistent with
the intent and purpose of this Section: The Concept Plan reflects the policies, goals and
objectives of the Comprehensive Plan as it relates to land use and character, connectivity, and
neighborhood integrity. The Urban designation in the Comprehensive Plan Future Land Use
Map is intended for areas that include multi-family residential housing, as proposed with this
PDD. The Bicycle, Pedestrian, Greenways Master Plan is being followed with the proposed
sidewalks along Foster Avenue and Francis Drive. Bicycle parking facilities are also proposed
at a ratio of one space per bedroom which is not a requirement for multi-family development. In
addition, several components are proposed to promote and protect neighborhood integrity.
a) Utilize architectural materials of hardi-board and brick to mimic existing architecture.
b) Provide one bicycle parking space per bedroom.
c) Limit apartment signage to the low-profile option.
d) Provide 8-foot wide sidewalks along Foster Avenue and Francis Drive.
3. The proposal is compatible with existing or permitted uses on abutting sites and will
not adversely affect adjacent development: The redevelopment of this tract will encourage
future development within the area designated as Redevelopment in the Comprehensive Plan
Future Land Use and Character Map. There is a potential to relieve some rental pressure from
the area designated as Neighborhood Conservation, which could encourage a potential
increase in owner-occupied units within the Eastgate neighborhood by providing alternative
rental options in the area.
The lessened parking requirement and the location of parking to the side and rear of the
building will reduce the visible impact of a parking lot on the adjacent land uses and pass-by
traffic.
4. Every dwelling unit need not front on a public street but shall have access to a public
street directly or via a court, walkway, public area, or area owned by a homeowners
association: The development will have a single point of access to Foster Avenue. Sidewalks
will be provided along Foster Avenue and Francis Drive.
5. The development includes provision of adequate public improvements, including, but
not limited to, parks, schools, and other public facilities: New public infrastructure is limited
to the addition of 8-foot wide sidewalks along both Foster Avenue and Francis Drive within the
bounds of the subject property.
6. The development will not be detrimental to the public health, safety, welfare, or
materially injurious to properties or improvements in the vicinity: The proposed
development has the potential of promoting public health by encourage walking and bicycling as
a means of transportation among its residents. This encouragement is in the form of ample
bicycle parking, and the addition of sidewalks along Foster Avenue and Francis Drive.
7. The development will not adversely affect the safety and convenience of vehicular,
bicycle, or pedestrian circulation in the vicinity, including traffic reasonably expected to
be generated by the proposed use and other uses reasonably anticipated in the area
considering existing zoning and land uses in the area: The intent of providing walking and
bicycle facilities within the property is to reduce the number of vehicular trips necessary for
residents. The availability of campus, retail shopping, and dining within a close proximity of the
site helps alternative means of transportation more likely.
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Budget & Financial Summary: N/A
Attachments:
1. Background Information
2. Aerial & Small Area Map (SAM)
3. Draft Planning & Zoning Commission Minutes – April 5, 2012
4. Ordinance
133
NOTIFICATIONS
Advertised Commission Hearing Date: April 5, 2012
Advertised Council Hearing Dates: April 26, 2012
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
College Hills Estates Homeowners Association was consulted during the creation
of the proposed zoning district. The Association had the opportunity to comment
on the architecture of the building and layout of the site.
Property owner notices mailed: 15
Contacts in support: None.
Contacts in opposition: Two, both calls were in general opposition to the density
which is allowed by right under the existing R-6 High-
Density Multi-Family Residential zoning.
Inquiry contacts: One for a general inquiry of what the project involved.
ADJACENT LAND USES
Direction Comprehensive Plan Zoning Land Use
East Neighborhood
Conservation
R-1 Single-Family Residential and
R-6 High-Density Multi-Family
Single-family
residential
West Urban and
Redevelopment
C-1 General Commercial Chili’s Restaurant
South Urban and
Redevelopment
R-1 Single-Family Residential and
C-1 General Commercial
College Station
City Hall
North Urban and
Redevelopment
R-6 High-Density Multi-Family vacant
DEVELOPMENT HISTORY
Annexation: March 1939
Zoning: R-1 Single-Family Residential
R-6 High Density Multi-Family
Final Plat: College Hills Subdivision
Site development: The site is currently developed with three housing structures including
one-single-family house and two apartment buildings.
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April 5, 2012 P&Z Regular Meeting Minutes Page 1 of 2
MINUTES
PLANNING & ZONING COMMISSION
Regular Meeting
April 5, 2012, 7:00 p.m.
City Hall Council Chambers
College Station, Texas
COMMISSIONERS PRESENT: Mike Ashfield, Craig Hall, Bo Miles, Jodi Warner, Jim
Ross, James Benham, and Jerome Rektorik
COMMISSIONERS ABSENT: None
CITY COUNCIL MEMBERS PRESENT: Jess Fields
CITY STAFF PRESENT: Bob Cowell, Lance Simms, Alan Gibbs, Carol Cotter, Jason
Schubert, Teresa Rogers, Venessa Garza, Joe Guerra, Erika Bridges, Mary Ann Powell, Matt
Robinson, Lauren Hovde, Brittany Caldwell, and Carrie McHugh
1. Call meeting to order
Chairman Ashfield called the meeting to order at 7:00 p.m.
Regular Agenda
2. Public hearing, presentation, possible action, and discussion regarding a zoning
amendment request from R-6 High-Density Multi-Family Residential to PDD Planned
Development District for 0.73 acres on Lots 9 and 10, Block 3 of the College Hills
Estates Subdivision located at 1024 and 1026 Foster Avenue, generally located at the
intersection of Foster Avenue and Francis Drive. Case # 11-00500135 (LH) (Note:
Final action on this item is scheduled for the April 26, 2012 City Council Meeting -
subject to change)
Staff Planner Hovde presented the rezoning and recommended approval.
There was general discussion amongst the Commission regarding the rezoning and
parking within the development.
Clint Cooper, Caldwell Company, stated that there would be more than one parking space
per bedroom provided.
Jesse Durden, CapRock Texas, stated that the proposed use is the same as the current
zoning and matches the Comprehensive Plan and the Eastgate Plan. He said that the plan
is to do more one and two bedroom units.
Chairman Ashfield opened the public hearing.
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April 5, 2012 P&Z Regular Meeting Minutes Page 2 of 2
Harriette Andreadis, 200 Francis Drive, College Station, Texas, expressed concern about
there not being enough parking provided and also inquired about the timeline for the
project.
Mr. Cooper said that the development should be complete by the Fall of 2013.
Chairman Ashfield closed the public hearing.
There was general discussion amongst the Commission regarding parking.
Commissioner Benham motioned to recommend approval of the rezoning with the
meritorious modifications, including the front and side street setbacks of ten feet
and a 75 percent parking requirement. Commissioner Hall seconded the motion,
motion passed (7-0).
The meeting was adjourned at 9:40 p.m.
Approved: Attest:
______________________________ ________________________________
Mike Ashfield, Chairman Brittany Caldwell, Admin. Support Specialist
Planning & Zoning Commission Planning & Development Services
146
April 26, 2012
Regular Agenda Item No. 4
Rezoning for 3182 Holleman Drive South
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services
Agenda Caption: Public Hearing, presentation, possible action, and discussion regarding
an ordinance amending Chapter 12, “Unified Development Ordinance,” Section 4.2, “Official
Zoning Map,” of the Code of Ordinances of the City Of College Station for a rezoning from A-O
to R-4 for 5.379 acres within University Heights Subdivision Phase 5 located at 3182 Holleman
Drive South, generally located north of Las Palomas Subdivision.
Relationship to Strategic Goals: Core Services and Infrastructure, Diverse Growing
Economy
Recommendation(s): The Planning and Zoning Commission considered this item at their April
5, 2012 meeting and voted 6-0 to recommend approval of the rezoning request. Staff also
recommended approval.
Summary: The request is for a zoning amendment for 5.379 from A-O Agricultural-Open to R-4
Multi-Family Residential. The zoning request is for the remaining portion of the University
Heights Subdivision that was not included in the 2008 rezoning of the subdivision.
The Unified Development Ordinance provides the following review criteria for zoning map
amendments:
REVIEW CRITERIA
1. Consistency with the Comprehensive Plan:
The R-4 Multi-Family Residential zoning request is consistent with the Future Land Use and
Character Map that designates this property as Urban. An Urban land use designation is for
areas intended for intense development activities such as townhomes, duplexes, and
apartments, all of which are allowed in the R-4 zoning district. The subject tract and all
abutting properties are designated as Urban on the Comprehensive Plan Future Land Use
and Character Map. In addition, the subject tract is bordered on the east side by Holleman
Drive South, designated as a future 4-Lane Major Collector, though it is currently built as a
2-lane rural roadway.
2. Compatibility with the present zoning and conforming uses of nearby property and
with the character of the neighborhood:
Surrounding development includes future townhouse and detached single-family, existing
duplex housing, and several existing single-family residential uses. The property
immediately south of the subject tract is designated as Urban, and is currently developed as
Las Palomas Subdivision, a duplex development.
The land use to the east (across Holleman Drive South) is vacant property and a single-
family house with an A-O Agricultural-Open zoning. To the south, the Las Palomas duplex
subdivision is also zoned A-O Agricultural-Open. The property to the west, was zoned R-4
Multi-Family Residential in 2008 at the same time the property north of the subject tract was
zoned R-3 Townhouse. Also in the area are duplexes along Cain Road and future
townhouses as part of the planned Barracks development. In general, the zoning request is
compatible with the existing and planned developments in the area.
147
The proposed R-4 zoning district, which allows townhomes, duplexes, and apartments, will
allow a maximum of 20 dwelling units per acre. This will expand the abutting R-4 zoning in
the preliminary platted University Oaks Subdivision.
3. Suitability of the property affected by the amendment for uses permitted by the
district that would be made applicable by the proposed amendment:
The suitability of the proposed R-4 zoning linked to the surrounding land uses being of a
similar nature, both multi-family and duplex housing. The surrounding area is anticipated to
have development for student and rental housing, which is consistent with the plans for this
portion of the University Heights Subdivision.
4. Suitability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment:
The current zoning of the property, A-O Agricultural-Open, is not suitable for the subject
tract. It is not in compliance with the Comprehensive Plan land use designation of Urban,
and is not compatible with the surrounding zoning districts. Due to its size, the subject tract
development is limited to one single-family residential lot or a variety of agricultural related
land uses. This type of development is not suitable for the property due to the intensity of
the adjacent land uses.
5. Marketability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment:
The marketability of the subject tract is broad due to its location and access to Holleman
Drive South. Development in the immediate vicinity ranges from an estate scale to multi-
family residential. Staff does not believe the marketability of the subject tract is limited to
multi-family residential, but is aware that an A-O Agricultural-Open zoning is not a viable
zoning for the development of the subject tract due to its size and surrounding uses.
6. Availability of water, wastewater, stormwater, and transportation facilities generally
suitable and adequate for the proposed use:
The subject tract is located within the Wellborn Special Utility District water service area.
Future platting and development of the tract will have to provide adequate fire flow to
support the proposed use.
The subject tract is located just north of a 12-inch sanitary sewer main as it crosses
Holleman Drive South and heads east, this line gravity flows into the Bee Creek Trunk Line.
This respective trunk line's sub-basin currently serves many developments along Harvey
Mitchell Parkway, from areas east of Wellborn Road, to the Carters Creek Wastewater
Treatment Plant. Much of the existing trunk line was constructed in 1973 and was shown to
have several surcharging line segments in the 2011 HDR Sanitary Sewer Collection System
Master Plan Update. The City is currently in the process of initializing a Capital Improvement
Project in anticipation of the ultimate build-out demand anticipated for the subject sewer
shed area. The subject tract is not located within a FEMA regulated Special Flood Hazard
Area. Development of the subject tract requires mitigation of post development flows and
follows the BCS Storm Water Design Guidelines. The subject tract is located adjacent
to Holleman Drive, a 4-Lane Major Collector - Suburban Context, on the City's Thoroughfare
Plan. The tract is also located adjacent to Kenyon Drive and the future extension of Los
Portales Drive, both of which are local streets.
Budget & Financial Summary: N/A
Attachments:
1. Background Information
2. Aerial & Small Area Map (SAM)
3. Draft Planning & Zoning Commission Minutes – April 5, 2012
4. Ordinance
148
NOTIFICATIONS
Advertised Commission Hearing Date: April 5, 2012
Advertised Council Hearing Dates: April 26, 2012
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
None
Property owner notices mailed: 22
Contacts in support: None
Contacts in opposition: None
Inquiry contacts: None
ADJACENT LAND USES
Direction Comprehensive Plan Zoning Land Use
North Urban R-3 Townhouse townhouses (under
construction)
South Urban A-O Agricultural-Open Las Palomas
Subdivision
(duplexes)
East Urban A-O Agricultural-Open Vacant and single-
family residential
West Urban R-4 Multi-Family Vacant and
stormwater detention
DEVELOPMENT HISTORY
Annexation: March 2008
Zoning: A-O Agricultural-Open upon Annexation
Preliminary Plan: A Preliminary Plan for the University Heights Subdivision was
approved in 2011. A Preliminary Plat was originally approved on
the subject property for Oakland Ridge Subdivision in 2007.
Final Plat: This phase of University Height has not been final platted.
Site development: Vacant.
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April 5, 2012 P&Z Regular Meeting Minutes Page 1 of 2
MINUTES
PLANNING & ZONING COMMISSION
Regular Meeting
April 5, 2012, 7:00 p.m.
City Hall Council Chambers
College Station, Texas
COMMISSIONERS PRESENT: Mike Ashfield, Craig Hall, Bo Miles, Jodi Warner, Jim
Ross, James Benham, and Jerome Rektorik
COMMISSIONERS ABSENT: None
CITY COUNCIL MEMBERS PRESENT: Jess Fields
CITY STAFF PRESENT: Bob Cowell, Lance Simms, Alan Gibbs, Carol Cotter, Jason
Schubert, Teresa Rogers, Venessa Garza, Joe Guerra, Erika Bridges, Mary Ann Powell, Matt
Robinson, Lauren Hovde, Brittany Caldwell, and Carrie McHugh
1. Call meeting to order
Chairman Ashfield called the meeting to order at 7:00 p.m.
Regular Agenda
2. Public hearing, presentation, possible action, and discussion regarding a zoning
amendment request from A-O Agricultural-Open to R-4 Multi-Family Residential for
5.379 acres within University Heights Subdivision Phase 5 located at 3182 Holleman
Drive South, generally located north of Las Palomas Subdivision. Case # 12-00500030
(LH) (Note: Final action on this item is scheduled for the April 26, 2012 City
Council Meeting - subject to change)
Staff Planner Hovde presented the rezoning and recommended approval.
There was no discussion regarding the item.
Joe Schultz, applicant, stated that he was available for questions and said that the
previous developer tried to rezone this piece of property commercial.
Chairman Ashfield opened the public hearing.
No one spoke during the public hearing.
Chairman Ashfield closed the public hearing.
Commissioner Miles motioned to recommend approval of the rezoning.
Commissioner Rektorik seconded the motion, motion passed (7-0).
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April 5, 2012 P&Z Regular Meeting Minutes Page 2 of 2
The meeting was adjourned at 9:40 p.m.
Approved: Attest:
______________________________ ________________________________
Mike Ashfield, Chairman Brittany Caldwell, Admin. Support Specialist
Planning & Zoning Commission Planning & Development Services
159
April 26, 2012
Regular Agenda Item No. 5
Rezoning for The Barracks II
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services
Agenda Caption: Public Hearing, presentation, possible action, and discussion regarding
an ordinance amending Chapter 12, “Unified Development Ordinance,” Section 4.2, “Official
Zoning Map,” of the Code of Ordinances of the City Of College Station for a rezoning from PDD
to PDD for 108.88 acres located at 3100 Haupt Road, generally located between Old Wellborn
Road and Holleman Drive South, North of the Buena Vida Subdivision.
Relationship to Strategic Goals: Core Services and Infrastructure, Diverse Growing
Economy
Recommendation(s): The Planning and Zoning Commission considered this item at their April
5, 2012 meeting and recommend approval of the rezoning and to accept the water park and
commercial amusement use, but limit the water park to having two, two tower cable systems
with a recommendation of approval of the request (7-0).
Summary: The amendment will change the zoning on 108.88 acres from PDD Planned
Development District to PDD Planned Development District to add an additional land use. The
proposed rezoning is an amendment to the previously approved PDD zoning to add additional
uses. Staff recommends approval of the rezoning with the condition that the commercial
amusement/water recreation uses are removed from the concept plan and the list of permitted
uses
The Unified Development Ordinance provides the following review criteria for zoning map
amendments:
REVIEW CRITERIA
1. Consistency with the Comprehensive Plan:
2. Compatibility with the present zoning and conforming uses of nearby property and
with the character of the neighborhood:
3. Suitability of the property affected by the amendment for uses permitted by the
district that would be made applicable by the proposed amendment:
4. Suitability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment:
5. Marketability of the property affected by the amendment for uses permitted by the
district applicable to the property at the time of the proposed amendment:
The Comprehensive Plan designates the subject property as General Suburban and is located
in Growth Area 5. It states that the area between Cain Road and Rock Prairie Road should be
used for General Suburban activities, including high-density single-family lots (minimum 5,000
160
square feet), townhomes, duplexes, as well as suburban or neighborhood commercial and office
uses.
The property is currently zoned PDD Planned Development District, allowing for a mixture of
single-family residences, offices and commercial development. Residential uses are capped at
a proposed density of 8.45 units per acre and will continue the type of residential development
immediately to the south of the subject property, which are zoned and developed for single-
family residences and townhomes. These properties include The Barracks, a townhome
development, as well as the Williamsgate and Buena Vida subdivisions that are zoned R-1
Single-Family Residential.
Commercial uses are primarily proposed to be located along Old Wellborn Road, which is
parallel to the existing railroad tracks. Through the PDD, additional controls are being applied
that address issues related to architectural design, size, scale, and buffering as well other
specific items.
Additional uses beyond what are currently allowed under the C-3 Neighborhood Commercial
designation were approved with the original rezoning. These uses include a shooting range-
indoor, car wash, commercial garden/greenhouse/landscape maintenance, commercial
amusement, office and retail sales/service with storage areas being greater than 50% of the
space, and self-storage allowing the storage of equipment, materials, recreational vehicles, or
boats in buildings with at least three enclosed sides. As mentioned previously, additional
standards have been included to address issues of design, size, scale and buffering.
Additionally, a couple of the proposed uses are presently allowed to some degree under a
general C-3 Neighborhood Commercial zoning district. This includes commercial amusement,
which is allowed under a Conditional Use Permit, and self-storage without the storage of
equipment and vehicles outside.
The proposed revised PDD zoning includes the addition of commercial amusement uses and
water recreation activities that include a commercial wakeboard ski facility, administrative
offices, a maximum 3,500 square foot restaurant, and retail sales related to the wakeboard
facility. The applicant has stated that the proposed additional uses are to increase the
marketability of the property. A landscaped buffer between the recreation center and property to
the north is proposed and includes plantings that shall provide 100% opacity to a height of at
least 8-feet. Lighting will be in accordance with the Unified Development Standards. The
proposed hours of operation for the wakeboard ski facility are from no earlier than 8 a.m. to 10
p.m.
6. Availability of water, wastewater, storm water, and transportation facilities
generally suitable and adequate for the proposed use:
The subject tract is located in Wellborn Water’s service area. Future development of the tract
will have to meet the City’s minimum fire flow requirements. The subject tract is located adjacent
to a 12-inch sanitary sewer main which runs along the south and east property boundaries. The
tract is located in the Steeplechase Sanitary Sewer Impact Fee Area that gravity flows into the
Bee Creek Trunk Line. This respective trunk line’s sub-basin currently serves many
developments along FM2818, from areas east of Wellborn Road, to the Carters Creek
Wastewater Treatment Plant. Much of the existing trunk line was constructed in 1973 and was
shown to have several surcharging line segments in the 2011 HDR Sanitary Sewer Collection
System Master Plan Update. The City is currently in the process of initializing a capital
improvement project entitled the ‘Bee Creek Relief Line’ that will install a larger diameter gravity
line to increase the system capacity of the overall sub-basin in order to accept the ultimate
build-out demand anticipated in this respective area. This trunk line capacity increase is
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necessary to proactively prevent surcharge events, possible fines from TCEQ, and customer
service disruptions. Preliminary analysis of this area has identified that the existing sanitary
sewer capacity can support the increased sanitary sewer demand from the proposed
development, however, future demands in this respective sub-basin will need to be evaluated as
development occurs.
The subject tract is in the Bee Creek Tributary “B” drainage basin. The subject tract is not
located within a FEMA regulated Special Flood Hazard Area per FEMA FIRM panel 182C.
Future development of the tract will have to meet the requirements of the City Storm Water
Design Guidelines. The subject tract is located adjacent to Old Wellborn Road (local) to the east
and Holleman Drive West (4 Lane Major Collector – Suburban Context) to the west. Three
future thoroughfares bi-sect the property: Deacon Drive (2-Lane Major Collector – Urban
Context), General Parkway (2-Lane Minor Collector – Suburban/Urban Context) & Towers
Parkway a 2-Lane Minor Collector – Suburban/Urban Context adjacent to the school district
owned property.
REVIEW OF CONCEPT PLAN
Modifications from the previously approved concept plan include the addition of uses,
rearrangement of streets/alleys and the addition of a waterway/drainage easement. Additional
uses consist of commercial amusement with water recreation activities, that includes a
commercial wakeboard ski facility, administrative offices, a maximum 3,500 square foot
restaurant, and retail sales related to the wakeboard facility.
The applicant has provided the following information related to the purpose and intent of the
proposed zoning district:
“The Barracks II Subdivision was previously granted PDD Zoning to develop a
residential community for students in the 18-30 year age range. The planned
development includes a mixture of housing options and commercial businesses that
cater to the student population. The intent has not changed. This rezoning request
merely adds another allowable use to the existing PDD Zoning. The Recreation Center
and ski facility are intended to enhance the marketability of this mixed use development
to buyers in the target demographic.”
In accordance with this purpose statement, the Concept Plan includes a mixture of residential,
commercial and office uses. Commercial uses are proposed primarily along Old Wellborn Road,
with an additional commercial tract located at the future intersection of Deacon Drive and
Holleman Drive South. These areas will be limited to C-3 Neighborhood Commercial uses, with
additional allowed uses consisting of a shooting range –indoor, car wash, commercial
garden/greenhouse/landscaping, commercial amusement, office and retail sales/service with
storage areas being greater than 50%, and self-storage allowing equipment, materials,
recreational vehicles and boats in a building enclosed on three sides. These uses would be
limited to commercial tracts 2, 3 and 4, which are located along Old Wellborn Road.
Additionally, commercial tract 4 is the only commercial tract where self-storage units would be
permitted. As proposed, restaurants would not be a permitted use in Commercial Tracts 2
through 4. All commercial structures will be required to be in compliance with the Non-
Residential Architectural Standards as well as being compatible in size, roof type and pitch,
materials, and architecture with the surrounding residential uses. A recreation center that
includes a Wake Board Ski Park is proposed to utilize two of the three detention ponds that are
necessary to serve the development. The recreation center, which includes offices, a pro shop,
a 3,500 square foot restaurant and other amenities, will be required to meet all UDO
requirements.
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Residential uses consisting of single-family detached residences and townhomes are proposed
for the remainder of the site. Residential density is proposed at a max of 8.45 dwelling units per
acre. The townhomes are proposed to be located around a 1.62 acre park at the center of the
development with an additional 2.25 acres of park land located around the perimeter of the
townhomes. Single-family detached residences are proposed to be located nearest the school
district owned property, located along Holleman Drive South that could potentially be the
location of a new school.
As mentioned previously, the layout of the development has changed some from the previously
approved concept plan. Layout changes have been made in order to incorporate an open
waterway/drainage easement through the center of the development. This waterway/drainage
easement is in response to correspondence between the developer and the US Army Corp of
Engineers as the developer is proposing to preserve additional stretches of the existing natural
channel. As a result, a number of townhome units have been removed and the layout now has
more townhomes taking direct access to local streets as opposed to access via alleys.
At time of site plan and plat, the project will need to meet all applicable standards required by
the UDO except those discussed below. Staff is currently undertaking an effort to create new
zoning districts to implement the different character areas envisioned by the Comprehensive
Plan. In the absence of a defined General Suburban zoning district, the applicant and staff have
negotiated through various standards to seek to attain a general suburban style that is
appropriate for this portion of the City, while seeking to retain flexibility for both parties.
Base Zoning and Meritorious Modifications
The existing zoning was approved with the following base zoning and meritorious modifications
listed below. There are no new modifications being requested with the rezoning amendment.
The applicant has proposed to utilize R-1 Single-Family Residential; R-3 Townhouse; and C-3
Light Commercial as the base, underlying zoning districts for standards not identified in the
PDD. At the time of site plan and plat, the project will need to meet all applicable site,
architectural and platting standards required by the Unified Development Ordinance except
where meritorious modifications are granted with the PDD zoning. The applicant has requested
the following meritorious modifications:
1. Section 6.3 “Specific Use Standards”
The applicant has requested that the following uses be permitted within the Commercial
Tracts shown on the concept plan in addition to the uses currently allowed under the C-3
zoning district:
· Shooting Range – Indoor
· Car Wash
· Commercial garden/greenhouse/landscape maintenance
· Commercial Amusement
· Office and retail sales/services with storage areas being greater than 50% of the
space (i.e., office/warehouse with overhead doors)
· Self-storage – equipment, materials, recreational vehicles, or boats in buildings
with at least three enclosed sides
2. Section 5.2. “Residential Dimensional Standards” of the Unified Development
Ordinance
The applicant has proposed the following modified setback requirements (UDO
requirements are in parentheses):
Use R-1 R-3
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Min. Front Setback 20’ (25’) 20’ (25’)
Min. Side Setback 5’ (7.5’) 5’ (7.5’)
The applicant states that the purpose is to allow slightly larger buildings and slightly more
units within the same space, while maintaining a density that is compatible with the
Comprehensive Plan.
3. Section 5.4 “Non-Residential Dimensional Standards”
The applicant has requested that the minimum rear setback for self storage structures
adjacent to a public alley be five feet. Current UDO requirements for commercial buildings
located within a C-3 zoning district is 15 feet. The applicant’s justification is that the alley will
have a 24-foot right-of-way that provides adequate separation distance and that the rear
wall of these units will have no openings or vehicular or pedestrian traffic on that side of the
storage facility. Additionally, the intent is to utilize the rear wall of the self-storage building to
act as the buffer wall between land uses as requested in modification number 5 listed below.
4. Section 7.6 “Buffer Standards” of the Unified Development Ordinance
The applicant is requesting the ability to count the rear wall of a self-storage building that is
adjacent to an alley serving residential units as meeting the buffering requirement for
commercial uses abutting single-family uses. The wall height would be a maximum of 15
feet and constructed of stone. The applicant’s justification is that the maximum height for a
buffer wall is 8-feet and that the buffer requirements produce a 15-foot buffer yard that
would be hidden from view.
5. Section 7.4 “Signs”
The applicant is requesting that Commercial Tracts 2, 3, and 4 each be permitted to erect a
freestanding sign that is no taller than 20 feet in height. Current, UDO requirements limit
signage in C-3 zoning districts to low profile signs, which are a max of 4 feet in height and
60 square feet in area. The applicant’s justification for the request is that the commercial
tracts are situated next to elevated railroad tracks and that the view to the commercial
businesses will be obstructed from view.
6. Section 8.2 “Blocks” of the Unified Development Ordinance
a) The applicant is requesting that block lengths of up to 1000 feet be permitted on
designated single-family and townhome blocks. Specifically, these blocks are noted as
SF Block 4, SF Block 9, and TH Block 7. Current UDO requirements limit block lengths
to 900 feet in areas designated as General Suburban. The applicant’s justification for the
longer block lengths is to limit the number of street connections between single-family
and townhome areas in an effort to eliminate the occurrence of townhome residents
parking in front of single-family homes. A 15-foot wide common area is proposed along
TH Block 7 to allow for future pedestrian traffic through the block.
b) The applicant is requesting a 1250-foot block length along Deacon Drive for the Ski Park
(WBP Block 1). The Ski Park is comprised of two ponds that serve as detention areas.
Combined with the third detention area adjacent to Commercial Tract 2, these ponds are
necessary to accommodate the drainage needs for the development and are located at
the point where the natural drainage system exits the site. With the proposal to utilize
two of these ponds as a Ski Park, a long block without an intermediate break in it is
necessary.
7. Section 8.2.E.6 “Dead-End Streets” and Section 8.2.F “Alleys” of the Unified
Development Ordinance
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The applicant is requesting that dead end streets in residential areas (single-family and
townhome) be allowed to extend a maximum of 100 feet in length and that the dead-end
alley adjacent to Commercial Tract 4 be allowed to extend to the property line
(approximately 110 feet). Current subdivision requirements limit dead-end streets and dead-
end alleys to 100 feet in length or the depth of one lot, whichever is less. This affects the
areas near Commercial Tract 1 and the Ski Park as the proposed lot width of the townhome
lots are 30 feet wide along the right-of-way. Additionally, the alley adjacent to Commercial
Tract 4 exceeds 100 feet in width, which is longer than the proposed townhome lot width. In
this instance it would leave a small strip of privately-owned land between the alley and the
property line. In both instances, future extension of the street/alley would be sought when
the adjoining properties developed.
8. Section 6.3.Q “Specific Use Standards – Storage (Self-Service)” of the Unified
Development Ordinance
The applicant is requesting that accessory uses of an office and living quarters be allowed in
the self-storage facility. Each of these uses would be limited to no more than 1000 square
feet in size. Additionally, the selling, renting, leasing of trucks or trailers would not be
permitted. Current UDO requirements prohibit accessory uses for self-storage businesses
located within a C-3 zoning designation. The applicant’s justification is that due to the large
concentration of townhomes, they anticipate moving to be a common occurrence and that
the need for the sale of related materials for moving and extended hours may be needed.
9. Section 7.5 “Landscaping” and Section 7.8 “Drainage and Stormwater Management”
The applicant is requesting that the landscaping requirements for the Ski Park development
be limited to the building, parking and amenity areas of the Ski Park. The ponds themselves
would be removed from the landscaping point calculations, but would still be subject to
streetscaping requirements along the rights-of-way. UDO requirements for landscaping point
calculations are based on the overall size of the site and require that detention ponds be
incorporated into the landscape design. Given that the majority of the Ski Park area is
comprised of the ponds, it would be difficult, if not impossible to meet the landscaping
requirements.
10. Section 8.2.E.4 “Adequate Street Access”
The applicant is requesting that a Remote Emergency Access be permitted to serve as a
connection to the requirement that when there are more than 30 lots to be served by
external street connections, a minimum of two connections to external paved public streets
be provided. Current UDO subdivision requirements state that the Commission may allow a
Remote Emergency Access when the development is being phased or when the constraints
of the land prevent the provision of a second street connection. The applicant is requesting
this modification in an effort to phase subsequent streets accordingly. The requirement for
two street connections to external paved public streets would still be required when 100 or
more lots are served.
Budget & Financial Summary: N/A
Attachments:
1. Background Information
2. Aerial & Small Area Map (SAM)
3. Draft Planning & Zoning Commission Minutes – April 5, 2012
4. Ordinance
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NOTIFICATIONS
Advertised Commission Hearing Date: February 16, 2012
Advertised Council Hearing Dates: March 8, 2012
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
Barracks at Rock Prairie Owner’s Association
Property owner notices mailed: 26
Contacts in support: None at time of staff report
Contacts in opposition: 1
Inquiry contacts: None at time of staff report
ADJACENT LAND USES
Direction Comprehensive Plan Zoning Land Use
North Urban – Growth Area 5 A-O Agricultural Open Vacant
South General Suburban –
Growth Area 5
R-1 Single-Family
Residential; R-3
Townhouse; A-O
Agricultural Open
Vacant, townhomes
(The Barracks), single-
family residences
(Williamsgate
Subdivision and future
Buena Vida
Subdivision)
East 6-lane major arterial on
Thoroughfare Plan
Old Wellborn Road,
Railroad tracks and FM
2154
West General Suburban –
Growth Area 5, Major
Collector on
Thoroughfare Plan
A-O Agricultural Open Vacant, Holleman Drive
South
DEVELOPMENT HISTORY
Annexation: 2002
Zoning: A-O Agricultural Open upon annexation (2002)
A-O Agricultural Open to PDD Planned Development District (2011)
Final Plat: Barracks II Section 100 (2012)
Site development: The first phase of the development is currently under construction.
ZONING HISTORY
In June 2011, the property was rezoned from A-O Agricultural Open to PDD Planned Development
District and included a mix of commercial and single-family attached (townhome) and single-family
detached residences. The original proposal included a wake board ski facility within two of the detention
pond areas. At the Planning & Zoning Commission and City Council meetings concerns were expressed
about the proposed wake board facilities, specifically regarding light, noise, buffers and whether the use
was appropriate for the area. City Council approved the rezoning with the condition that the wakeboard
use be removed. Since that time, a Preliminary Plan has been approved for the development along with a
Final Plat for the first phase of the development.
The developer is requesting the rezoning amendment to provide additional uses, which include a
recreational center with a commercial wake board ski facility, administrative offices, a maximum 3,500
square foot restaurant, and retail sales related to the wakeboard facility. Additionally, the rezoning revises
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the original approved layout to incorporate an open waterway/drainage easement through the center of
the development, which results in the loss of townhomes from the original proposal and some
rearrangement of streets and alleys. Some aspects of the site layout modifications are due in part to
correspondence between the developer and the US Army Corp of Engineers, as the developer is
proposing to preserve additional stretches of the existing natural channel.
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April 5, 2012 P&Z Regular Meeting Minutes Page 1 of 2
MINUTES
PLANNING & ZONING COMMISSION
Regular Meeting
April 5, 2012, 7:00 p.m.
City Hall Council Chambers
College Station, Texas
COMMISSIONERS PRESENT: Mike Ashfield, Craig Hall, Bo Miles, Jodi Warner, Jim
Ross, James Benham, and Jerome Rektorik
COMMISSIONERS ABSENT: None
CITY COUNCIL MEMBERS PRESENT: Jess Fields
CITY STAFF PRESENT: Bob Cowell, Lance Simms, Alan Gibbs, Carol Cotter, Jason
Schubert, Teresa Rogers, Venessa Garza, Joe Guerra, Erika Bridges, Mary Ann Powell, Matt
Robinson, Lauren Hovde, Brittany Caldwell, and Carrie McHugh
1. Call meeting to order
Chairman Ashfield called the meeting to order at 7:00 p.m.
Regular Agenda
2. Public hearing, presentation, possible action, and discussion on a Rezoning from PDD
Planned Development District to PDD Planned Development District to add an additional
use, for 108.88 acres located at 3100 Haupt Road, generally located between Old
Wellborn Road and Holleman Drive South, North of the Buena Vida Subdivision. Case
#12-00500006 (MR) (Note: Final action on this item is scheduled for the April 26,
2012 City Council Meeting - subject to change)
Senior Planner Robinson presented the rezoning and recommended approval with the
condition that the commercial amusement/water recreation uses are removed from the
concept plan and the list of permitted uses.
Heath Phillips, applicant, reviewed the project and the changes that were being requested.
Chairman Ashfield opened the public hearing.
Ken Tripp, 1393 Seamist, College Station, Texas, stated that there are flooding issues on
Cain Road and requested that something be done to prevent flooding in the future.
City Councilman Fields clarified what happened at the City Council meeting when the
item was heard the first time.
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April 5, 2012 P&Z Regular Meeting Minutes Page 2 of 2
Kent Laza, applicant’s engineer, stated that the development had not increased the
stormwater flow. He said that there is a detention pond on the property that is working
properly.
City Engineer Gibbs stated that the drainage had been designed to meet City standards
and the City does not believe that this development is contributing to the existing
problem of flooding on Cain Road.
There was general discussion amongst the Commission regarding drainage.
Charles Rutledge, 3033 Cain Road, College Station, Texas, opposed the rezoning due to
flooding concerns on Cain Road.
Hartzel Elkins, mentioned the corner of Cain and Old Wellborn Road and stated that the
drainage has gotten worse since houses have been built along Rock Prairie Road.
Chairman Ashfield closed the public hearing.
There was general discussion amongst the Commission regarding the rezoning.
Chairman Ashfield reopened the public hearing.
Chuck Ellison stated that he represents the Barger Trust that owns the property to the
north and said that they are still in the process of trying to work through an agreement
with the applicant.
Chairman Ashfield closed the public hearing.
Commissioner Miles motioned to recommend approval of the rezoning and to
accept the water park and commercial amusement use, but limit the water park to
having two, two tower cable systems. Commissioner Warner seconded the motion.
There was general discussion amongst the Commission regarding the rezoning.
The motion passed (7-0).
The meeting was adjourned at 9:40 p.m.
Approved: Attest:
______________________________ ________________________________
Mike Ashfield, Chairman Brittany Caldwell, Admin. Support Specialist
Planning & Zoning Commission Planning & Development Services
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April 26, 2012
Regular Agenda Item No. 6
Mobile Food Vendor Ordinance Revisions
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services
Agenda Caption: Public Hearing, presentation, possible action, and discussion regarding
an ordinance amending Chapter 4, “Business Regulations” By Amending Section 20 “Mobile
Food Vendors”, of the Code of Ordinances of the City of College Station.
Relationship to Strategic Goals: Core Services and Infrastructure, Diverse Growing Economy
Summary: The Code of Ordinances, Chapter 4 “Business Regulations,” was expanded by
Council action on February 24, 2011 to include Section 20 “Mobile Food Vending”. This
ordinance allows permitted Mobile Food Vendors to operate legally in College Station
continuously throughout the year. Prior to this amendment, City ordinance restricted such
vending to the Itinerant Vendor permitting process which allows mobile sales for a maximum of
twenty-one (21) days per year. At the time of adoption, City Council directed Staff to revisit the
ordinance after one year to evaluate possible revisions.
Since the ordinance adoption in 2011, twelve Mobile Food Vendors have submitted applications
and have been approved to operate. Time and application have enabled City Staff and
permitted Vendors an opportunity to discover pieces of the ordinance that may be improved.
The following is a brief summary of the revisions proposed with this ordinance amendment:
1. Each mobile unit will require a separate permit. This was due to the number of requests
to have multiple units on a single permit application.
2. Language is being revised for better clarification on what on-street sales are permitted.
3. The required buffer to Food Service Establishment is being reduced from 300 feet to 100
feet. This was in an attempt to lessen the number of possible conflicts for Mobile Food
Vendors.
4. Hours of operation per location is being changed from everyday for three hours per visit
to five hours per visit. This is to allow a greater presence while the Mobile Food Vendor
operates in a location.
5. An exemption to ordinance requirements is proposed for the sale of fresh produce. This
is to encourage this type of sales activities, and reduce the cost associated with it.
During the review process, two stakeholder groups were engaged. The first involved a meeting
with currently permitted vendors and representatives from the City and Brazos County Health
Department to identify areas that needed attention. The second involved the re-engagement of
the 2011 stakeholder group that consisted of restaurant operators and interested parties. Both
groups were given the opportunity to review the ordinance prior to Council hearing.
Communication from these groups is attached.
Attachments:
1. Redlined Code of Ordinances Chapter 4 “Business Regulations” Section 20 ‘Mobile Food
Vendors”
2. Chapter 4 “Business Regulations” Section 20 ‘Mobile Food Vendors” Ordinance
3. Stakeholder letters
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EXHIBIT “A”
That CHAPTER 4, “BUSINESS REGULATIONS” be amended BY ADDING SECTION 20
“MOBILE FOOD VENDORS”, be added to the Code of Ordinances of the City of College
Station, Texas and is to read as follows:
SECTION 20 MOBILE FOOD VENDORS
A. DEFINITIONS
(1) Edible Goods shall include, but are not limited to:
(a) Prepackaged food including, but not limited candy, beverages, and ice cream.
(b) Prepared food including, but not limited to hot dogs, deserts, and pizza.
(c) On-site prepared food including, but not limited to shaved ice, sandwiches, and
tacos)
(2) Food Service Establishment shall mean businesses that Sell Edible Goods and have
been inspected and approved by the Brazos County Health Department, including
commercial kitchens and commissaries, and shall specifically exclude accessory or self-
serve retail food sales.
(3) Mobile shall mean the state of being in active, but not necessarily continuous, movement.
(4) Mobile Food Vendors shall mean any business which Sells Edible Goods from a non-
Stationary Location within the City of College Station. The term shall include, but not be
limited to:
(a) Mobile food trucks: A self-contained motorized unit Selling items defined as
Edible Goods.
(b) Concessions carts: Mobile vending units that must be moved by non-motorized
means
(c) Concession trailers: A vending unit which is pulled by a motorized unit and has
no power to move on its own.
(5) Non-refrigerated shall mean Edible Goods that are not required to be kept at a
temperature below forty-one (41) degrees Fahrenheit according to the federal Food and
Drug Administration and the Texas Food Establishment Rules.
(6) Sell shall mean the act of exchanging a good for a profit or in return for a donation.
(7) Stationary Location shall mean the position of the Mobile Food Vendor when not in
motion and addressing the public for the purpose of sales.
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B. PERMIT AND APPLICATION
(1) Permit - Every Mobile Food Vendor shall have a permit issued by the City of College
Station Planning and Development Services Department to conduct business in the City.
(2) Application- An applicant shall apply for a permit on a form promulgated by the City of
College Station Planning and Development Services Department.
(3) The application shall be processed through the following method:
(a) Application submitted to the City of College Station,
(b) Application shall be reviewed by designated City Staff,
(c) City Staff shall inform the Brazos County Health Department when the application
is eligible for approval by the City,
(d) Brazos County Health Department may then accept an application from a Mobile
Food Vendor,
(e) Following notification from the City, Brazos County Health department may issue
a permit when their application is eligible for approval,
(f) Applicant shall submit their Brazos County Health Department permit to City of
College Station
(g) The City of College Station may then, and only then, approve a Mobile Food
Vendor permit.
(3) Permit Form - A complete application shall require the following information from the
applicant to be considered:
(a) Name of applicant,
(b) Legal name of business or entity,
(c) State of Incorporation or filing of a partnership or articles of association,
(d) If applicable, Copy of Chapter or Articles of Incorporation and current listing of
directors, partners, or principles (publicly traded companies are exempted),
(e) Sales tax number with a copy of sales tax permit,
(f) Signed permission from the private property owner,
(g) Name, phone number, and driver’s license number of business owner,
(h) Contact name and phone number for Mobile food vending unit while in route,
(i) Copy of permits to do business in Texas for foreign companies,
(j) Description of product being sold,
(k) Description of attached signage,
(l) Vehicle Identification Number and description of Mobile food vending unit,
(m)
(n) A signed affidavit under oath with photo identification that each individual
applicant:
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(i) Has no unpaid civil judgments against him or her in any State or U.S.
possession which arise from a business activity which would have been
covered by this Section if in effect at the time in the jurisdiction where such
judgments are of record.
(ii) A statement of all convictions in any state, the United States or U.S.
possession within the last ten (10) years.
(o) A bond in the sum of not less than One Thousand and No/100 ($1,000.00)
Dollars, executed by the Mobile Food Vendor with two or more good and
sufficient sureties satisfactory to the Finance Director, which bond shall be
payable to the Mayor of the City of College Station, and his successors in office,
for the use and benefit of any person or persons entitled thereto, and conditioned
that the principal and sureties will pay all damages to persons caused by or arising
from or growing out of any action of the Mobile Food Vendor while conducting
business in the City of College Station, Texas. The bond shall remain in full force
and effect for the entire duration of the permit provided herein and for two full
years after such permit expires. The bond shall not be required for the sale of
goods in interstate commerce.
(p) Copy of the Brazos County Health Department permit issued to the Food Service
Establishment.
(q) Copy of written permission to utilize the private facilities of the Food Service
Establishment.
(4) Permit Fee
(a) The application for a Mobile Food Vendor permit shall be $500.00. Each Mobile
Food Vendor Unit shall be permitted separately.
(b) Mobile Food Vendor permits shall be valid for one (1) year from the date of
permit issuance.
(c) Upon renewal the applicant must provide a new application, payment of a
$250.00 renewal fee, and new permitting documentation upon permit renewal.
The applicant must submit the application and renewal fee within thirty (30) days
after expiration of the permit or must reapply as a new applicant.
(d) Concession carts shall apply under a reduced fee of $250 for initial application,
and $125 for a renewal.
(5) Permit Denial - A permit may be denied where:
(a) An applicant is found to have an unpaid civil judgment(s) against him which
relates to the duties and responsibilities of the permitted occupation which shall
be determined by the nature and the amount of the judgment, the relationship of
the judgment to the purpose of the permit and the extent that the permit would
allow someone to engage in further activity that would lead to unsatisfied civil
judgments, or
(b) An applicant has been convicted of a crime which directly relates to the duties and
responsibilities of the licensed occupation which shall be determined by the
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nature and seriousness of the crime, the relationship of the crime to the purpose of
the permit and the extent that the permit would allow someone to engage in
further criminal activity, or;
(c) The required information is incomplete or incorrect or shows that a person is not
otherwise entitled to conduct business as a Mobile Food Vendor.
(d) The opportunity to reissue a permit has been denied due to previous violations as
described in this Section.
(6) Display of Permit - Every permit, including those from the City of College Station and
Brazos County Health Department, shall be displayed at all times in a
conspicuous place where it can be read by the general public on the Mobile Food
Vendor’s truck, concession cart, or concession trailer.
(7) Permit Revocation or Suspension
(a) A permit may be revoked upon conviction of any offense committed by an
individual operating as a Mobile Food Vendor in the City of College Station
while engaged in the permitted business, or if a final conviction occurs or is found
to have existed at the time of application, or if civil judgments, as set forth above,
are placed or found of record against an applicant. A permit may be suspended in
the event of pending charges of a crime, as set forth above, upon a magistrate's
determination of probable cause in connection with such charges.
(b) A permit may be revoked for non-conformity to the application location
specifications or requirements as well as to non-conformity to an approved
location plan or diagram.
(c) Any employee working for an applicant permitted as an employer under this
Section above may be denied the right to solicit under such permit, or such rights
may be suspended or terminated, under the same circumstances and procedures
which apply to the holder of the permit. Revocation or suspension of an
employer's permit terminates all employee permits.
(d) A permit may be suspended or revoked for not complying with the requirements
of this Section, or any other ordinances, or laws.
(8) Appeal of Permit Revocation, Suspension, or Denial
(a) The notice of revocation, suspension, or denial of a permit shall include the
procedure for appealing the suspension, revocation, or denial.
(b) If a City official revokes, suspends or denies a Mobile Food Vendor permit, the
holder or applicant of the permit which has been revoked, suspended, or denied
shall have the right of appeal to the City of College Station Planning and
Development Services Director or designee by submitting an appeal in writing to
the Director within ten (10) business days of the revocation, suspension, or denial.
(c) Pending action on the appeal, a permit which has been revoked or suspended shall
be considered revoked or suspended.
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(d) If a written appeal is not submitted within ten (10) business day of revocation,
suspension, or denial, or if the appeal is denied, the permit shall hence be
considered revoked, suspended, or denied.
(9) Reapplication After Revocation, Suspension, or Denial of Permit
If a Mobile Food Vendor or applicant is not in compliance with this section or any other
ordinances, laws, or the approved vendor application, the following actions will be taken:
(a) 1st violation- A warning may be issued, or the permit may be revoked or
suspended and the vendor may become ineligible for new or reissued permit for
three (3) months.
(b) 2nd violation- Permit will be revoke and the vendor may become ineligible for
new or reissued permit for three (3) months.
(c) 3rd violation- Permit will be revoke and the vendor will become ineligible for new
or reissued permit for one (1) year.
(d) If an applicant’s permit has been denied and the appeal is denied the applicant
may not reapply for three (3) months.
C. ZONING AND LOCATION RESTRICTIONS
(1) Distance Regulations
(a) No Mobile Food Vendor shall conduct business within any single-family
residential or agricultural zoning district, including townhouse districts, but may
be located in such districts when serving and within one hundred (100) feet to a
property with an active building permit or located within a public park facility.
(b) A Mobile Food Vendor may not be located within one hundred (100) feet of the
primary entrance of an open and operating fixed-location Food Service
Establishments outside of Northgate. This buffer may be reduced upon receiving
written permission from said establishments.
(c) Northgate Only- A Mobile Food Vendor may not be located within one hundred
(100) feet of an existing business lawfully operating as a restaurant as defined by
the Unified Development Ordinance within Northgate. This buffer may be
reduced upon written permission from said restaurants.
(2) A Mobile Food Vendor shall not conduct sales at a Stationary Location:
a) For a duration exceeding five (5) hours per location for more than two (2) consecutive
days.
b) Northgate Only - For a duration exceeding three (3) hours per location, except from
10:00 pm to 2:00 am in the NG-1 Northgate Core zoning district.
c) For a duration exceeding thirty (30) minutes on any public street designated on the City
of College Station’s Thoroughfare Plan as a Minor Collector or lesser.
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d) On any public street designated on the City of College Station’s Thoroughfare Plan as a
Major Collector or greater.
e) In congested areas where the operation impedes vehicular or pedestrian traffic.
f) In a designated bike lane.
g) Between the hours of 2:00 am and 5:00 am.
(3) Northgate and Wolf Pen Creek District
(a) Concession carts, permitted as a Mobile Food Vendor, may be located only within
the Northgate zoning districts and Wolf Pen Creek district when operating at a
mixed-use development. Carts must be positioned as to not disrupt pedestrian
traffic and must maintain an abutting five-foot (5) clear space.
(b) A Mobile Food Vendor may not be located within twenty (20) feet of another
Mobile Food Vendor.
(4) Location Regulations
(a) No Mobile Food Vendor shall locate on any private property without written
permission to do so and must comply if asked to leave by the property owner or
City official. A copy of the written permission to operate in a specific location,
signed by the private property owner, shall be kept within the Mobile vending unit
at all times.
(b) No person shall distribute, deposit, place, throw, scatter or cast any commercial
handbill in or upon any motor vehicle without permission of the owner.
(c) No person shall distribute, deposit, place, throw, scatter or cast any commercial
handbill upon any premises if requested by the property owner or City official not
to do so, or if there is placed near or at the entrance thereof a sign bearing the
words "no advertisement".
(d) No person shall Sell or offer for sale any item upon any premises if requested by
the property owner or City official not to do so, or if there is placed at or near the
entrance thereof a sign bearing the words "no peddlers or vendors", "no
trespassing", or "no solicitors."
D. MOBILE FOOD VENDOR REQUIREMENTS
The following regulations shall apply to Mobile Food Vendors within any zoning district:
(1) Each unit shall be equipped with a portable trash receptacle, and shall be responsible for
proper disposal of solid waste and waste water in the sanitation facility legally accessed
by the Food Service Establishment. All disturbed areas must be cleaned following each
stop at a minimum of twenty (20) feet of the sales location.
(2) Continuous music or repetitive sounds shall not project from the Mobile unit.
(3) A five-foot (5) clear space can be maintained around the Mobile food vending unit.
(4) The Mobile unit will be subject to inspection upon permit application through the
Building Division of the Planning and Development Services Department and the Fire
Marshal, and may be subject to random inspection and upon reissuance of the permit.
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(5) No sales are allowed within public park facilities while park concession units are
operating.
(6) A “No Smoking” sign must be posted next to the order window or area.
(7) A tagged fire extinguisher shall be kept accessible as directed by the City of College
Station Fire Marshal or designee.
(8) An extinguishing vent hood, Type 1 or other if approved by the City of College Station
Fire Marshal, shall be required when the cooking process produces grease laden particles
within the Mobile unit. Said hood shall require testing in the presence of a College
Station Fire Marshal designee.
E. OFFENSES AND REGULATIONS
(1) It shall be unlawful for any individual as the agent or employee of another regulated
under this Section to Sell Edible Goods in the City unless its principal or employer has
received a permit under this Section.
(2) A permit issued under this Section is not transferable.
(3) It shall be unlawful for an individual to Sell Edible Goods while displaying a valid permit
issued by the City of College Station in the name of another individual, organization, or
entity.
(4) It shall be unlawful for any individual directly or through an agent or employee to Sell
goods within the corporate limits of the City after the expiration of the permit issued by
the City of College Station under this Section.
(5) It shall be unlawful for an individual directly or through an agent or employee to
misrepresent on the permit affidavit any acts that are regulated under this Section.
(6) It shall be unlawful for any individual directly or through his agents or employees to
represent that the issuance of a permit by the City of College Station constitutes the
City’s endorsement or approval of the product for sale.
(7) It shall be unlawful to operate a Mobile Food Vendor operation that is not in compliance
with the Texas Food Establishment Rules as amended from time to time.
(8) A Mobile Food Vendor permit may only be granted to a business that is associated with a
Food Service Establishment, as defined by this ordinance, unless the Mobile Food
Vendor is not required to obtain a permit from the Brazos County Health Department
(9) A violation of this Section is a Class C misdemeanor and shall be punished by a fine
pursuant to the General Penalty set out in Chapter 1, Section 5, of this Code of
Ordinances.
F. EXEMPTIONS
Individuals Selling only Non-Refrigerated farm products in an unrefined state shall be
considered as a Mobile Food Vendor, as defined by this ordinance, but shall be exempt from the
requirements of this Section.
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Stakeholder Communication after April 12, 2012
Lauren,
Thank you for working so hard on revising our current regulation. I am so thankful for some
positive changes. I was talking with Mr. Craig Hall and shared the concern on "Out of Town"
vendors coming into town to set up under the "I-Vendor" permit. We thought putting a 300ft
buffer on Out of Town Vendor under the "i-vendor" permit would be a possible solution for Brick
& Mortar restaurateurs who fear all of these food trucks from Houston may try to come into town
during the SEC Ball games. Just a thought.
Hopefully the existing Food Truck Operators have been behaving good and will continue to
behave good so we can make a positive changes to the regulation and for the food loving
community.
Thank you again for proposing the revision. We really appreciate it.
Chef Tai
Hi Lauren, thanks for the update. I still question why there needs to be a distance requirement.
The city obviously allows food establishments to exist side by side. Can you please tell
me(sorry if you already did)what is the reasoning behind this? (other than the obvious which is
that existing places don't want the competition). I will still not be able to have a vendor at Notes-
n-Quotes and that would be a perfect spot for one. Lots of foot traffic at a big intersection, a
grassy area for a cart and even for seating. The sad thing about Veritas being at Citibank is that
there are no tables to sit at. I would prefer the ordinance to drop altogether the distance
requirement. Thanks for soliciting my input. I really appreciate it.
Sara Lyford
Notes-n-Quotes
Hi Lauren,
I appreciate you keeping us in the loop on the ordinance. I have spoken to a number of
restaurateurs regarding the 300 to 100 foot change. They are worried this could have a potential
impact on our businesses from upstarts that may not be as sensitive as the existing mobile food
truck operators are at considering where to park for business. Is there a compelling reason for
the change? We want to be as cooperative as possible to any legitimate competition in this
market. But freestanding restaurants have a huge investment in this wonderful community and
would like to be able to protect that investment without unbridled interference.
Thanks for your consideration,
John Welsh
Lauren, I have an issue with section C,2,A. I believe extending the time from three hours to five
hours is beneficial to several of us. I believe the limiting it to two consecutive days is not. In my
business, my customers expect me to be at the same location every day around the same time.
If this is changed in the ordinance, it will be harder for people to keep up with where I am. I
request that this be dropped from the ordinance. If being in the same spot every day becomes
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an issue, I suggest we address this at a later time for possible addition of this clause. Thanks
for your help.
Jeff Harris
Owner
Frost Bites Shaved Ice
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April 26, 2012
Regular Agenda Item No. 7
Northgate Outdoor Dining and Entertainment
To: David Neeley, City Manager
From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services
Agenda Caption: Public Hearing, presentation, possible action, and discussion regarding
an ordinance amending Chapter 12, “Unified Development Ordinance”, Section 5.6 “Design
Districts”, B “Northgate Districts”, 13 “ Outside Storage And Display Standards”, of the Code of
Ordinances of the City of College Station.
· Public Hearing, presentation, possible action, and discussion regarding an ordinance
amending Chapter 4, “Business Regulations” By adding Section 21 “Northgate Outdoor
Dining And Entertainment”, to the Code of Ordinances of the City of College Station.
· Public Hearing, presentation, possible action, and discussion regarding an ordinance
amending Chapter 1, “General Provisions” By Amending Section 13 “Alcoholic
Beverages”, B. “Possession And Consumption Of Alcoholic Beverages In Northgate
Central Business District”, of the Code of Ordinances of the City of College Station.
· Public Hearing, presentation, possible action, and discussion regarding an ordinance
amending Chapter 4, “Business Regulations” By Amending Section 4 “Carnivals,
Circuses, Menageries, Sideshows, Concession, And Special Events”, of the Code of
Ordinances of the City of College Station.
Relationship to Strategic Goals: Core Services and Infrastructure, Diverse Growing
Economy
Recommendation(s): The Planning and Zoning Commission considered the amendment To
Code of Ordinances Chapter 12 “Unified Development Ordinance” Section 5.6.B “Northgate
Districts (NG)” during their April 19 th meeting and recommended approval (7-0).
Summary: As part of the University Drive and College Main pedestrian improvements currently
under construction in the Northgate District, the City of College Station entered into negotiations
with the Northgate business owners and Northgate District Association during early 2011 to
acquire necessary construction easements along the affected rights-of-way. Several business
owners were interested in the opportunity to create a sidewalk dining and entertainment
opportunity that would include the consumption of alcohol adjacent to their structure to
accommodate the pedestrian activity. In response to this request, Staff is proposing four
amendments to the Code of Ordinances to offer an outdoor dining and entertainment option. A
brief summary of each amendment is provided below.
Code of Ordinances Chapter 12, “Unified Development Ordinance”, Section 5.6 “Design
Districts”, B “Northgate Districts”, 13 “ Outside Storage and Display Standards”:
This ordinance amendment includes the removal of the location limitation of outdoor sales and
display for businesses permitted through Code of Ordinance Chapter 4 “Business Regulations”
Section 21 “Northgate Outdoor Dining and Entertainment.”
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Code of Ordinances Chapter 4, “Business Regulations” Section 21 “Northgate Outdoor
Dining and Entertainment”:
This ordinance creates the opportunity for businesses with frontage along College Main,
University Drive, and Patricia Street Promenade to extend specific business operations into the
public sidewalks. Business opportunities will be dependent on the time of day, being either
Peak or Non-Peak Period. This means that a business adjacent to College Main may be
permitted to use the space between its façade and a twenty-six foot (26’) wide fire lane during
Peak or Non-Peak Periods. Businesses adjacent to University Drive may use the area between
their building façade and a ten foot (10’) sidewalk during Non-Peak Periods only. Buildings with
frontage on the Promenade may use the space between their property line and a minimum
thirteen foot (13’) clear zone measured between the property line and the edge of the pavilion
supports during Non-Peak Periods only. This clear zone is in addition to the remainder of the
Promenade Pedestrian area. The space available to businesses is referred to as Permitted
Area within the proposed ordinance. The fee associated with the Peak Period permit is $350.00
plus $2.00 per square feet of Permitted Area, as defined by the ordinance.
Code of Ordinances Chapter 1, “General Provisions” Section 13 “Alcoholic Beverages”,
B. “Possession and Consumption Of Alcoholic Beverages in Northgate Central Business
District”:
This ordinance amendment includes the exemption of businesses permitted through Code of
Ordinance Chapter 4 “Business Regulations” Section 21 “Northgate Outdoor Dining and
Entertainment.” This will allow business operating under this ordinance to serve alcoholic
beverages outside of their building but within their Permitted Area.
Code of Ordinances Chapter 4 “Business Regulations” Section 4 “Carnivals, Circuses,
Menageries, Sideshows, Concession, and Special Events”:
This ordinance amendment includes the removal of the limitation on the number of days a
Special Event may be operated for businesses permitted through Code of Ordinance Chapter 4
“Business Regulations” Section 21 “Northgate Outdoor Dining and Entertainment.”
Attachments:
1. Redlined Code of Ordinances Chapter 12, “Unified Development Ordinance”, Section 5.6
“Design Districts”, B “Northgate Districts”, 13 “ Outside Storage and Display Standards”
2. Code of Ordinances Chapter 12, “Unified Development Ordinance”, Section 5.6 “Design
Districts”, B “Northgate Districts”, 13 “ Outside Storage and Display Standards” Ordinance
3. Chapter 4 “Business Regulations” Section 21 “Northgate Outdoor Dining and Entertainment”
Ordinance
4. Redlined Code of Ordinances Chapter 1, “General Provisions” Section 13 “Alcoholic
Beverages”, B. “Possession and Consumption Of Alcoholic Beverages in Northgate Central
Business District”:
5. Code of Ordinances Chapter 1, “General Provisions” Section 13 “Alcoholic Beverages”, B.
“Possession and Consumption of Alcoholic Beverages in Northgate Central Business District”
Ordinance
6. Redlined Code of Ordinances Chapter 4 “Business Regulations” Section 4 “Carnivals,
Circuses, Menageries, Sideshows, Concession, and Special Events”
7. Code of Ordinances Chapter 4 “Business Regulations” Section 4 “Carnivals, Circuses,
Menageries, Sideshows, Concession, and Special Events” Ordinance
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Section 5.6.B.13. Outside Storage and Display Standards
The following standards are in lieu of Section 7.11 Outdoor Storage and Display.
a) Outdoor storage of materials or commodities is prohibited.
b) Temporary or portable buildings of any kind are prohibited except during construction of
site-planned facilities.
c) Outside sales/outside display areas shall be located within five (5) feet of a required
entrance façade and shall only be located in front of the property/business that is selling
the item(s), with the exception of businesses permitted through Code of Ordinance
Chapter 4 “Business Regulations” Section 21 “Northgate Outdoor Dining and
Entertainment”. A four-foot minimum clear space on sidewalks shall be maintained.
d) All merchandise and/or seasonal items used for outside sales or display shall be moved
indoors at the end of business each day.
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B. POSESSION AND CONSUMPTION OF ALCOHOLIC BEVERAGES IN
NORTHGATE CENTRAL BUSINESS DISTRICT.
(1) Regulations Related to Alcohol.
(a) Public Safety. On October 21, 2004, the City Council adopted and declared that
open containers and public consumption in the Northgate Central Business
District was a risk to the health and safety of the citizens of the City.
(b) TABC Order. On December 20, 2004, the Texas Alcoholic Beverage
Commission granted an order giving the City the authority to approve an
ordinance regulating open containers and public consumption of alcoholic
beverages in the Northgate Central Business District.
(c) Permit for Consumption. On April 26, 2012, the City Council established a
process for a business of the Northgate Central Business District to obtain a
permit for its customers to publicly consume alcoholic beverages in a specifically
defined and permitted public space.
(d) District Defined. The Northgate Central Business District is hereby defined as
the area set out on the attached map that was approved by the Texas Alcoholic
Beverage Commission Order of December 20, 2004.
(2) Public Consumption and Possession
In the Northgate Central Business District, it shall be unlawful to possess an open container or
publicly consume an alcoholic beverage.(3)This ordinance shall not be applicable to buildings
not owned or controlled by the City of College Station, residential structures, or licensed
premises located in the Northgate Central Business District or the possession of open containers
or consumption of alcoholic beverages in motor vehicles.
(4) Exceptions.
(a) Non-City Property. This ordinance shall not be applicable to buildings not owned
or controlled by the City of College Station, residential structures, or licensed
premises located in the Northgate Central Business District or the possession of
open containers or consumption of alcoholic beverages in motor vehicles.
(b) Permitted Areas. This ordinance shall not apply to:
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(i) Special Events Permits granted pursuant to Chapter 4 “Business
Regulations”, Section 4 “Special Events” of the Code of Ordinances of the
City of College Station, or
(ii) Permitted Areas granted pursuant to Chapter 4 “Business Regulations”,
Section 21 “Northgate Outdoor Dining and Entertainment” of the Code of
Ordinances of the City of College Station.
(5) If a person possesses or has in his or her possession an open container specifically made for
the purpose of containing an alcoholic beverage or is labeled as containing an alcoholic
beverage, it shall be presumed that any content therein is an alcoholic beverage.
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CHAPTER 4 BUSINESS REGULATIONS
SECTION 4 CARNIVALS, CIRCUSES, MENAGERIES, SIDESHOWS, COCESSION,
AND SPECIAL EVENTS
C. Fifteen-day operation.
No event shall be operated under a permit authorized herein for more than the greater of fifteen
(15) calendar days or one hundred fifty (150) hours during a calendar year, with the exception of
businesses permitted through Code of Ordinance Chapter 4 “Business Regulations” Section 21
“Northgate Outdoor Dining and Entertainment”. Operation of such an event for more than the
referenced length of time shall be considered a permanent business for which site plan approval
is required under the City of College Station Unified Development Ordinance. If the event is not
operated on consecutive calendar days, an inspection as provided under subsection H. herein
shall be required each time before the event resumes.
D. Northgate Central Business District.
An event in the Northgate Central Business District providing for alcohol sales and/or
consumption shall have a valid permit or license to sell or serve alcoholic beverages issued by
the Texas Alcoholic Beverage Commission.
An event in the Northgate Central Business District involving the sale and/or consumption of
alcohol shall not be operated under a permit authorized herein for more than three (3)
consecutive days.
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April 26, 2012
Regular Agenda Item No. 8
Consider Ordinance Issuing General Obligation Improvement and Refunding Bonds
To: David Neeley, City Manager
From: Jeff Kersten, Executive Director of Business Services
Agenda Caption: Presentation, possible action and discussion on an ordinance
authorizing the issuance and sale of up to $38,000,000 in “City of College Station, Texas
General Obligation Improvement and Refunding Bonds, Series 2012”; delegating the
authority to certain City Officials to execute certain documents relating to the sale of the
Bonds; approving and authorizing instruments and other procedures relating to said bonds;
and enacting other provisions relating to the subject.
Relationship to Strategic Goals: Financially Sustainable City, and Providing Core Services
and Infrastructure.
Recommendation(s): Council move to approve the ordinance authorizing the issuance
and sale of up to $38,000,000 in “General Obligation Improvement and Refunding Bonds,
Series 2012”; delegating the authority to certain City Officials to execute certain documents
relating to the sale of the Bonds; approving and authorizing instruments and other
procedures relating to said bonds; and enacting other provisions relating to the subject.
Summary: The City has the opportunity to refund a portion of its General Obligation and
Utility Revenue Bonds in order to achieve savings due to lower interest rates that are
currently available. The City's Financial Advisor, Drew Masterson with First Southwest
Company has presented the City with an opportunity to issue refunding bonds for several of
our outstanding General Obligation and Utility Revenue Bond issues. Refunding is issuing
new debt to replace and pay off existing debt. Refunding can be done for a number of
reasons; however, most often are used to accrue a savings against the current debt.
The bonds that are proposed to be refunded are:
Certificates of Obligation, Series 2003A $ 480,000
Utility System Revenue Bonds, Series 2003A $ 2,985,000
General Obligation Bonds, Series 2003 $ 2,960,000
Utility System Revenue Bonds, Series 2003 $ 1,800,000
Certificates of Obligation, Series 2004 $ 5,965,000
General Obligation Bonds, Series 2004 $ 4,680,000
Certificates of Obligation, Series 2005 $ 2,320,000
General Obligation Bonds, Series 2005 $ 3,580,000
Utility System Revenue Bonds, Series 2005 $ 5,530,000
$30,300,000
The City Council's Finance and Budgetary Policies allow for the City to "refund" debt when
there is a net present value savings of at least 5%. The opportunity that is currently before
the City Council will save the City approximately 7.51% over the remaining life of the
issues. The net present value savings includes the debt issuance costs. If this ordinance
is approved, the City Council will be delegating to the Mayor, City Manager and
the Executive Director of Business Services the authority to effect the refunding
and the bond sale when the net present value savings on the refunding achieves at
least the 5% threshold through October 26, 2012. Currently, the net present
value savings is above the 5% threshold, however, if the net present value
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savings should fall below the 5%, this will provide an opportunity to reach the 5%
threshold over the next 6 months in order to generate as much savings as possible
for the City.
Refundings are typically done as negotiated sales rather than our normal bidding process.
In a negotiated sale, a consortium of investment firms is selected with one firm named as
the managing partner for the sale. The sale is negotiated and pricing is verified against
pricing for similar instruments within a few days of the actual sale date to make sure that
the City is getting good pricing for its debt.
The City Council is authorized to approve the issuance of General Obligation Improvement
Bonds which have been authorized by a vote of the citizens. The Citizens approved a total
of $38,405,000 on November 4, 2003 and $76,950,000 on November 4, 2008. By
approving the ordinance, the Council will issue the remaining $440,000 from the 2003
authorization and $3,995,000 from the 2008 authorization. This is the fourth bond sale
from the 2008 bond authorization. The 2008 authorization provides for a 7 year capital plan.
The City of College Station typically issues debt to fund various capital projects identified
and approved as a part of the annual budget. This particular debt issue is planned to
provide resources for street and transportation projects, sidewalk improvements, hike and
bike trails, and parks and park facilities improvements and oversize participation.
Budget & Financial Summary: Based on current estimates, the refunding will reduce the
overall cost of the refunded bonds by at least 7.51% over the remaining life of the existing
bonds. Total net present value savings will be at least $2,274,035. The average annual
savings will range between $209,229 and $215.253 per year. The savings will help the City
by providing an additional margin that Council may choose to use for projects not currently
funded by an identified source.
Staff reviewed the impact of the general obligation improvement bonds will have on City's
ability to meet debt service requirements and the effect they may have on the ad valorem
tax rate. The recommendation to move forward with this issue will not impact the ad
valorem tax rate.
Attachments:
1. Ordinance
2. Preliminary Official Statement – A copy will be place in the City Secretary’s Office
3. Debt Issuance 2012.
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ORDINANCE NO. _____
AUTHORIZING THE ISSUANCE OF UP TO $38,000,000 IN PRINCIPAL
AMOUNT OF "CITY OF COLLEGE STATION, TEXAS GENERAL
OBLIGATION IMPROVEMENT AND REFUNDING BONDS, SERIES 2012";
DELEGATING THE AUTHORITY TO CERTAIN CITY OFFICIALS TO
EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE
BONDS; APPROVING AND AUTHORIZING INSTRUMENTS AND
PROCEDURES RELATING TO SAID BONDS; AND ENACTING OTHER
PROVISIONS RELATING TO THE SUBJECT
WHEREAS, it is deemed advisable and to be in the best interest of the City of College
Station (the "City") that certain bonds authorized at elections previously held in the City be
combined in a single issue and sold at this time, the dates of election, amount of bonds
authorized thereat, purpose, amount of bonds previously sold, and the amount now to be sold
being as follows as may be modified by the Pricing Officer (defined below):
DATE OF
ELECTION
AMOUNT
AUTHORIZED PURPOSE
AMOUNT
PREVIOUSLY
SOLD
AMOUNT
ISSUED
HEREIN
November 4, 2003 $17,980,000 Street & transportation improvements $17,540,000 $440,000
November 4, 2003 7,610,000 Municipal complex improvements 3,955,000 0
November 4, 2008 48,785,000 Street & transportation improvements 12,540,000 3,820,000
November 4, 2008 8,385,000 City library improvements 0 0
November 4, 2008 12,790,000 Park & recreation improvements 3,665,000 $175,000
Total $95,550,000 $37,700,000 $4,435,000__
WHEREAS, this City Council finds and determines that it is necessary and proper to
order the issuance, sale and delivery of such voted bonds;
WHEREAS, the City has previously issued, and there are presently outstanding, revenue
bonds of the City secured by a pledge of revenues derived by the City from the ownership and
operation of the City's Utility System (consisting of the City's combined municipal electric light
and power, waterworks and sewer system), and general obligation bonds and certificates of
obligation which are secured by the full faith and credit of the City and a pledge by the City to
levy ad valorem taxes sufficient to pay principal of and interest on the bonds and certificates of
obligation as they become due and a pledge of surplus revenues of the Utility System to further
secure the certificates of obligation;
WHEREAS, the City now desires to refund all or part of the outstanding revenue bonds,
general obligation bonds and certificates of obligation described in Schedule I attached hereto
and incorporated herein (collectively, the "Eligible Obligations"), and those Eligible Obligations
designated by the Pricing Officer, as defined below, to be refunded are herein referred to as the
"Refunded Obligations";
WHEREAS, Chapter 1207, Texas Government Code, authorizes the City to issue
refunding bonds and to deposit the proceeds from the sale thereof, together with any other
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2
available funds or resources, directly with a paying agent for the Refunded Obligations or a trust
company or commercial bank that does not act as a depository for the City and is named in these
proceedings, and such deposit, if made before the payment dates of the Refunded Obligations,
shall constitute the making of firm banking and financial arrangements for the discharge and
final payment of the Refunded Obligations;
WHEREAS, Chapter 1207, Texas Government Code, further authorizes the City to enter
into an escrow or similar agreement with such paying agent for the Refunded Obligations or trust
company or commercial bank with respect to the safekeeping, investment, reinvestment,
administration and disposition of any such deposit, upon such terms and conditions as the City
and such paying agent or trust company or commercial bank may agree;
WHEREAS, the City Council hereby finds and declares a public purpose and it is in the
best interests of the City to refund the Refunded Obligations in order to achieve a debt service
savings, with such savings, among other information and terms to be included in the Purchase
Agreement described in Section 18 of this Ordinance to be executed by the Pricing Officer
(hereinafter designated), all in accordance with the provisions of Section 1207.007, Texas
Government Code;
WHEREAS, all the Refunded Obligations mature or are subject to redemption prior to
maturity within 20 years of the date of the bonds hereinafter authorized;
WHEREAS, the City is an "Issuer" within the meaning of Section 1371.001(4)(P), Texas
Government Code, having (i) a principal amount of at least $100 million in outstanding long-
term indebtedness, in long-term indebtedness proposed to be issued, or in a combination of
outstanding or proposed long-term indebtedness and (ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the four highest rating categories for
long-term debt instruments by a nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form of credit enhancement entered
into in connection with the obligation;
WHEREAS, the bonds hereinafter authorized to be issued were voted and are to be
issued, sold and delivered pursuant to the general laws of the State of Texas, including Texas
Government Code Chapters 1207, 1331 and 1371, as amended, and the City's Home Rule
Charter; and
WHEREAS, it is officially found, determined, and declared that the meeting at which this
Ordinance has been adopted was open to the public and public notice of the time, place and
subject matter of the public business to be considered and acted upon at said meeting, including
this Ordinance, was given, all as required by the applicable provisions of Texas Government
Code Chapter 551;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
Section 1. AUTHORIZATION OF BONDS. That said City's General Obligation
Improvement and Refunding Bonds, to be designated the "City of College Station, Texas
General Obligation Improvement and Refunding Bonds, Series 2012", are hereby authorized to
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be issued and delivered in the principal amount not to exceed $38,000,000 for the purpose of (i)
refunding the Refunded Obligations; (ii) acquiring property and making improvements for public
purposes in said City, to wit: street improvements, park and park facilities improvements, and the
payment of fiscal, engineering and legal fees incurred in connection therewith all in accordance
with and subject to the election propositions authorizing such bonds; and (iii) to pay the costs
incurred in connection with the issuance of the Bonds (collectively, the "Projects").
Section 2. DELEGATION TO PRICING OFFICER.
(a) As authorized by Sections 1207.007 and 1371.053, Texas Government Code, as
amended, the Mayor, the City Manager and the Executive Director of Business Services of the
City (each the "Pricing Officer") are each hereby authorized to act severally on behalf of the City
in selling and delivering the Bonds, carrying out the other procedures specified in this Ordinance,
including, determining the date of the Bonds, any additional or different designation or title by
which the Bonds shall be known, whether the Bond shall be sold and delivered in one or more
series and the date and sale and delivery of each such series, the price at which the Bonds will be
sold, the years in which the Bonds will mature, the principal amount to mature in each of such
years, the rate of interest to be borne by each such maturity, the interest payment and record
dates, the price and terms upon and at which the Bonds shall be subject to redemption prior to
maturity at the option of the City, as well as any mandatory sinking fund redemption provisions,
and all other matters relating to the issuance, sale, and delivery of the Bonds and obtaining
municipal insurance for all or any portion of the Bonds and providing for the terms and
provisions thereof applicable to the Bonds, all of which shall be specified in the Pricing
Certificate; provided that:
(i) the aggregate original principal amount of the Bonds shall not exceed
$38,000,000, with no more than $33,000,000 of such amount to be issued for the
purposes described in Section 1(i) and (iii) hereof, and no more than $5,000,000 of such
amount issued for the purposes described in Section 1(ii) and (iii) hereof;
(ii) the true interest cost of the Bonds shall not exceed 3.250% per annum;
(iii) the refunding must produce present value debt service savings of at least
5.000%, net of any City contribution;
(iv) the net effective interest rate on the Bonds shall not exceed the maximum
rate set forth in Chapter 1204, Texas Government Code, as amended;
(v) the final maturity of the Bonds shall not exceed February 15, 2032;
(vi) the delegation made hereby shall expire if not exercised by the Pricing
Officer on or prior to October 26, 2012; and
(vii) on or prior to delivery, the Bonds shall be rated by a nationally recognized
rating agency for municipal securities in one of the four highest categories for long-term
obligations.
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(b) In establishing the aggregate principal amount of the Bonds, the Pricing Officer
shall establish an amount not exceeding the amount authorized in Subsection (a) of this Section,
which shall be sufficient in amount to provide for the purposes for which the Bonds are
authorized and to pay costs of issuing the Bonds. The Bonds shall be sold with and subject to
such terms as set forth in the Purchase Agreement as described in Section 18 herein.
Section 3. CHARACTERISTICS OF THE BONDS. (a) The City shall keep or cause to
be kept at the corporate trust office in Dallas, Texas (the "Designated Trust Office") of The Bank
of New York Mellon Trust Company, N.A., or such other bank, trust company, financial
institution, or other agency named in accordance with the provisions of (g) below (the "Paying
Agent/Registrar"), books or records for the registration and transfer of the Bonds (the
"Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar
and transfer agent to keep such books or records and make such transfers and registrations under
such reasonable regulations as the City and Paying Agent/Registrar may prescribe; and the
Paying Agent/Registrar shall make such transfers and registrations as herein provided. It shall be
the duty of the Paying Agent/Registrar to obtain from the registered owner and record in the
Registration Books the address of the registered owner of each Bond to which payments with
respect to the Bonds shall be mailed, as herein provided. The City or its designee shall have the
right to inspect the Registration Books during regular business hours of the Paying
Agent/Registrar at its Designated Trust Office, but otherwise the Paying Agent/Registrar shall
keep the Registration Books confidential and, unless otherwise required by law, shall not permit
their inspection by any other entity. Registration of each Bond may be transferred in the
Registration Books only upon presentation and surrender thereof to the Paying Agent/Registrar
at its Designated Trust Office for transfer of registration and cancellation, together with proper
written instruments of assignment, in form and with guarantee of signatures satisfactory to the
Paying Agent/Registrar, evidencing the assignment of such Bond, or any portion thereof in any
Authorized Denomination, to the assignee or assignees thereof, and the right of such assignee or
assignees to have such Bond or any such portion thereof registered in the name of such assignee
or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new
substitute Bond or Bonds shall be issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Bond shall be registered in the Registration Books
at any time shall be treated as the absolute owner thereof for all purposes of this Ordinance,
whether or not such Bond shall be overdue, and the City and the Paying Agent/Registrar shall
not be affected by any notice to the contrary; and payment of, or on account of, the principal of,
premium, if any, and interest on any such Bond shall be made only to such registered owner. All
such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond
to the extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying
agent for paying the principal of and interest on the Bonds, and to act as its agent to exchange or
replace Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper
records of all payments made by the City and the Paying Agent/Registrar with respect to the
Bonds, and of all exchanges thereof, and all replacements thereof, as provided in this Ordinance.
(d) Each Bond may be exchanged for fully registered Bonds in the manner set forth
herein. Each Bond issued and delivered pursuant to this Ordinance may, upon surrender thereof
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at the Designated Trust Office of the Paying Agent/Registrar, together with a written request
therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their
duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the
Paying Agent/Registrar, at the option of the registered owner or such assignee or assignees, as
appropriate, be exchanged for fully registered Bonds, without interest coupons, in the form
prescribed in the FORM OF BOND, in an Authorized Denomination (subject to the requirement
hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested
in writing by such registered owner or such assignee or assignees, in an aggregate principal
amount equal to the principal amount of any Bond or Bonds so surrendered, and payable to the
appropriate registered owner, assignee, or assignees, as the case may be. If any Bond or portion
thereof is assigned and transferred, each Bond issued in exchange therefor shall have the same
principal maturity date and bear interest at the same rate as the Bond for which it is being
exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each
other Bond. The Paying Agent/Registrar shall exchange or replace Bonds as provided herein,
and each fully registered Bond or Bonds delivered in exchange for or replacement of any Bond
or portion thereof as permitted or required by any provision of this Ordinance shall constitute
one of the Bonds for all purposes of this Ordinance, and may again be exchanged or replaced. It
is specifically provided, however, that any Bond delivered in exchange for or replacement of
another Bond prior to the first scheduled interest payment date on the Bonds (as stated on the
face thereof) shall be dated the same date as such Bond, but each substitute Bond so delivered on
or after such first scheduled interest payment date shall be dated as of the interest payment date
preceding the date on which such substitute Bond is delivered, unless such substitute Bond is
delivered on an interest payment date, in which case it shall be dated as of such date of delivery;
provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond
for which it is being exchanged has not been paid, then such substitute Bond shall be dated as of
the date to which such interest has been paid in full. On each substitute Bond issued in exchange
for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed
thereon a Paying Agent/Registrar's Authentication Certificate, in the form hereinafter set forth in
the FORM OF BOND (the "Authentication Certificate"). An authorized representative of the
Paying Agent/Registrar shall, before the delivery of any such substitute Bond, date such
substitute Bond in the manner set forth above, and manually sign and date the Authentication
Certificate, and no such substitute Bond shall be deemed to be issued or outstanding unless the
Authentication Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all
Bonds surrendered for exchange or replacement. No additional ordinances, orders, or resolutions
need be passed or adopted by the City Council or any other body or person so as to accomplish
the foregoing exchange or replacement of any Bonds or portion thereof, and the Paying
Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Bond in
the manner prescribed herein. Pursuant to Chapter 1206, Texas Government Code, the duty of
exchange or replacement of any Bonds as aforesaid is hereby imposed upon the Paying
Agent/Registrar, and, upon the execution of Authentication Certificate, the exchanged or
replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the
same effect as the Bonds which originally were delivered pursuant to this Ordinance, approved
by the Attorney General, and registered by the Comptroller of Public Accounts. Neither the City
nor the Paying Agent/Registrar shall be required to transfer or exchange any Bond so selected for
redemption, in whole or in part, within 45 calendar days of the date fixed for redemption;
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provided, however, such limitation of transfer shall not be applicable to an exchange by the
registered owner of the uncalled principal of a Bond.
(e) All Bonds issued in exchange or replacement of any other Bond or portion
thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of
and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be
redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be
exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and
(vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the
manner required or indicated, in the FORM OF BOND.
(f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees
and charges for making transfers of Bonds, but the registered owner of any Bond requesting such
transfer shall pay any taxes or other governmental charges required to be paid with respect
thereto. The registered owner of any Bonds requesting any exchange shall pay the Paying
Agent/Registrar's reasonable and standard or customary fees and charges for exchanging any
such Bond or portion thereof, together with any taxes or governmental charges required to be
paid with respect thereto, all as a condition precedent to the exercise of such privilege of
exchange, except, however, that in the case of the exchange of an assigned and transferred Bond
or Bonds or any portion or portions thereof in an Authorized Denomination, as provided in this
Ordinance, such fees and charges will be paid by the City. In addition, the City hereby
covenants with the registered owners of the Bonds that it will (i) pay the reasonable and standard
or customary fees and charges of the Paying Agent/Registrar for its services with respect to the
payment of the principal of and interest on Bonds, when due, and (ii) pay the fees and charges of
the Paying Agent/Registrar for services with respect to the transfer or registration of Bonds
solely to the extent above provided, and with respect to the exchange of Bonds solely to the
extent above provided.
(g) The City covenants with the registered owners of the Bonds that at all times while
the Bonds are outstanding the City will provide a competent and legally qualified bank, trust
company, financial institution, or other agency to act as and perform the services of Paying
Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be
one entity. The City reserves the right to, and may, at its option, change the Paying
Agent/Registrar upon not less than 60 days written notice to the Paying Agent/Registrar. In the
event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger,
acquisition, or other method) should resign or otherwise cease to act as such, the City covenants
that it will promptly appoint a competent and legally qualified national or state banking
institution which shall be a corporation organized and doing business under the laws of the
United States of America or of any state, authorized under such laws to exercise trust powers,
subject to supervision or examination by federal or state authority, and whose qualifications
substantially are similar to the previous Paying Agent/Registrar to act as Paying Agent/Registrar
under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying
Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof),
along with all other pertinent books and records relating to the Bonds, to the new Paying
Agent/Registrar designated and appointed by the City. Upon any change in the Paying
Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new
Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class
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postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By
accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to
have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be
delivered to each Paying Agent/Registrar.
Section 4. FORM OF BONDS. The form of the Bonds, including the form of the
Authentication Certificate, the form of Assignment and the form of Registration Certificate of
the Comptroller of Public Accounts of the State of Texas to be attached to the Bonds initially
issued and delivered pursuant to this Ordinance, shall be in substantially the form as set forth in
Exhibit A to this Ordinance, with such appropriate variations, omissions, or insertions as are
permitted or required by this Ordinance, and with the FORM OF BOND to be modified pursuant
to, and completed with information set forth in the Pricing Certificate. The printer of the Bonds
is hereby authorized to print on the Bonds (i) the form of bond counsel's opinion relating to the
Bonds, and (ii) an appropriate statement of insurance furnished by a municipal bond insurance
company providing municipal bond insurance, if any, covering all or any part of the Bonds.
Section 5. DEFINITIONS. That the term "Authorized Denomination" shall mean a
denomination of $5,000 of principal amount of a Bond or any integral multiple thereof; the term
"Bonds" shall mean the City of College Station, Texas General Obligation Improvement and
Refunding Bonds, Series 2012; the term "Business Day" means a Saturday, Sunday, a legal
holiday, or a day on which banking institutions in the City are authorized by law or executive
order to close; the term "MSRB" means the Municipal Securities Rulemaking Board; the term
"Rule" means SEC Rule 15c2 12, as amended from time to time; and the term "SEC" means the
United States Securities and Exchange Commission.
Section 6. LEVY OF TAX; INTEREST AND SINKING FUND.
(a) That a special fund or account, to be designated the "City of College Station,
Texas Series 2012 Improvement and Refunding Bond Interest and Sinking Fund" (the "Interest
and Sinking Fund") is hereby created and shall be established and maintained by the City. The
Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of
the City, and shall be used only for paying the interest on and principal of the Bonds. All ad
valorem taxes levied and collected for and on account of the Bonds shall be deposited, as
collected, to the credit of the Interest and Sinking Fund. During each year while any of the
Bonds are outstanding and unpaid, the governing body of the City shall compute and ascertain
the rate and amount of ad valorem tax, based on the latest approved tax rolls of the City, with full
allowances being made for tax delinquencies and the cost of tax collections, which will be
sufficient to raise and produce the money required to pay the interest on the Bonds as such
interest comes due, and to provide a sinking fund to pay the principal (including mandatory
sinking fund redemption payments, if any) of the Bonds as such principal matures or comes due
through operation of the mandatory sinking fund redemption, if any, but never less than 2% of
the original amount of the Bonds as a sinking fund each year. The rate and amount of ad
valorem tax is hereby ordered to be levied against all taxable property in the City for each year
while any of the Bonds is outstanding and unpaid, and the ad valorem tax shall be assessed and
collected each such year and deposited to the credit of the Interest and Sinking Fund. Ad
valorem taxes necessary to pay the interest on and principal of the Bonds, as such interest comes
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due and such principal matures, are hereby pledged for such payment, within the limit prescribed
by law.
(b) There shall be appropriated from the General Fund of the City for deposit into the
Interest and Sinking Fund moneys as may be necessary to pay the principal and interest
payments on the Bonds scheduled to occur on or before August 15, 2012.
Section 7. TRANSFER. That the City shall do any and all things necessary to
accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to
pay such items of principal and interest due on the Bonds.
Section 8. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this
Ordinance shall be secured in the manner and to the fullest extent permitted or required by law
for the security of public funds, and such Interest and Sinking Fund shall be used only for the
purposes and in the manner permitted or required by this Ordinance.
Section 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS.
(a) Replacement Bonds. That in the event any outstanding Bond is damaged,
mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed,
executed, and delivered, a new Bond of the same principal amount, maturity, and interest rate, as
the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the
manner hereinafter provided.
(b) Application for Replacement Bonds. That application for replacement of
damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner
thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the
registered owner applying for a replacement Bond shall furnish to the City and to the Paying
Agent/Registrar such security or indemnity as may be required by them to save each of them
harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or
destruction of a Bond, the registered owner shall furnish to the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as
the case may be. In every case of damage or mutilation of a Bond, the registered owner shall
surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated.
(c) No Default Occurred. That notwithstanding the foregoing provisions of this
Section, in the event any such Bond shall have matured, and no default has occurred which is
then continuing in the payment of the principal of, redemption premium, if any, or interest on the
Bond, the City may authorize the payment of the same (without surrender thereof except in the
case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security
or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Bonds. That prior to the issuance of any
replacement Bond, the Paying Agent/Registrar shall charge the registered owner of such Bond
with all legal, printing, and other expenses in connection therewith. Every replacement Bond
issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen,
or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or
destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to
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all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly
issued under this Ordinance.
(e) Authority for Issuing Replacement Bonds. That in accordance with Section
1201.067, Texas Government Code, this Section of this Ordinance shall constitute authority for
the issuance of any such replacement Bond without necessity of further action by the City or any
other body or person, and the duty of the replacement of such Bonds is hereby authorized and
imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and
deliver such Bonds in the form and manner and with the effect, as provided in Section 5(d) of
this Ordinance for Bonds issued in conversion and exchange of other Bonds.
Section 10. FEDERAL INCOME TAX MATTERS. That the City covenants to refrain
from any action which would adversely affect, or to take such action as to ensure, the treatment
of the Bonds as obligations described in section 103 of the Code, the interest on which is not
includable in the "gross income" of the holder for purposes of federal income taxation. In
furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10 percent of the proceeds of the
Bonds (less amounts deposited to a reserve fund, if any) are used for any "private business use,"
as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are so
used, that amounts, whether or not received by the City, with respect to such private business
use, do not, under the terms of this Ordinance or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than 10 percent of the debt service on the
Bonds, in contravention of section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds five percent of the proceeds of the Bonds (less
amounts deposited into a reserve fund, if any) then the amount in excess of five percent is used
for a "private business use" which is "related" and not "disproportionate", within the meaning of
section 141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or five percent of the proceeds of the Bonds (less amounts deposited into a reserve
fund, if any) is directly or indirectly used to finance loans to persons, other than state or local
governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Bonds being
treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(e) to refrain from taking any action that would result in the Bonds being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the Bonds, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Bonds, other than investment property acquired with –
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(1) proceeds of the Bonds invested for a reasonable temporary period until
such proceeds are needed for the purpose for which the Bonds are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement fund
to the extent such amounts do not exceed 10 percent of the proceeds of the Bonds;
(g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as
proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable,
section 149(d) of the Code (relating to advance refundings); and
(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of
the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the United
States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of
the amount then required to be paid as a result of Excess Earnings under section 148(f) of the
Code.
For purposes of the foregoing (a) and (b), the City understands that the term "proceeds" includes
"disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding
bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the
date of issuance of the Bonds. It is the understanding of the City that the covenants contained
herein are intended to assure compliance with the Code and any regulations or rulings
promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that
regulations or rulings are hereafter promulgated which modify or expand provisions of the Code,
as applicable to the Bonds, the City will not be required to comply with any covenant contained
herein to the extent that such failure to comply, in the opinion of nationally-recognized bond
counsel, will not adversely affect the exemption from federal income taxation of interest on the
Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter
promulgated which impose additional requirements which are applicable to the Bonds, the City
agrees to comply with the additional requirements to the extent necessary, in the opinion of
nationally-recognized bond counsel, to preserve the exemption from federal income taxation of
interest on the Bonds under section 103 of the Code. In furtherance of such intention, the City
hereby authorizes and directs the Mayor, the City Manager, any Assistant City Manager and the
Executive Director of Business Services to execute any documents, certificates or reports
required by the Code, and to make such elections on behalf of the City which may be permitted
by the Code as are consistent with the purpose for the issuance of the Bonds.
In order to facilitate compliance with clause (h) above, a "Rebate Fund" is hereby
established by the City for the sole benefit of the United States of America, and such Fund shall
not be subject to the claim of any other person, including without limitation the bondholders.
The Rebate Fund is established for the additional purpose of compliance with section 148 of the
Code.
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Section 11. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. That the City covenants to account for the expenditure of proceeds from the sale of
the Bonds and any investment earnings thereon to be used for the purposes described in Section
1 of this Ordinance (such purpose referred to in this Section and Section 12 as a "Project") on its
books and records by allocating proceeds to expenditures within 18 months of the later of the
date that (a) the expenditure on a Project is made or (b) such Project is completed. The
foregoing notwithstanding, the City shall not expend such proceeds or investment earnings more
than 60 days after the earlier of (a) the fifth anniversary of the date of delivery of the Bonds or
(b) the date the Bonds are retired, unless the City obtains an opinion of nationally-recognized
bond counsel substantially to the effect that such expenditure will not adversely affect the tax-
exempt status of the Bonds. For purposes hereof, the City shall not be obligated to comply with
this covenant if it obtains an opinion that such failure to comply will not adversely affect the
excludability for federal income tax purposes from gross income of the interest.
Section 12. DISPOSITION OF PROJECT. That the City covenants that the property
constituting a Project will not be sold or otherwise disposed in a transaction resulting in the
receipt by the City of cash or other compensation, unless the City obtains an opinion of
nationally-recognized bond counsel substantially to the effect that such sale or other disposition
will not adversely affect the tax-exempt status of the Bonds. For purposes of the foregoing, the
portion of the property comprising personal property and disposed in the ordinary course shall
not be treated as a transaction resulting in the receipt of cash or other compensation. For
purposes hereof, the City shall not be obligated to comply with this covenant if it obtains an
opinion that such failure to comply will not adversely affect the excludability for federal income
tax purposes from gross income of the interest.
Section 13. PROCEDURES TO MONITOR COMPLIANCE WITH TAX
COVENANTS. The City hereby adopts the procedures attached hereto as Exhibit B as a means
of monitoring compliance with the federal tax covenants made by the City herein.
Section 14. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS. That the
Executive Director of Business Services of the City is hereby authorized to have control of the
Bonds initially issued and delivered hereunder and all necessary records and proceedings
pertaining to the Bonds pending their delivery and their investigation, examination, and approval
by the Attorney General of the State of Texas, and their registration by the Comptroller of Public
Accounts of the State of Texas. Upon registration of the Bonds said Comptroller of Public
Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the
Comptroller's Registration Certificate attached to such Bonds, and the seal of said Comptroller
shall be impressed, or placed in facsimile, on such certificate. The Bonds thus registered shall
remain in the custody of the Executive Director of Business Services (or the designee thereof)
until delivered to the Underwriter (as defined in Section 18 of this Ordinance).
Section 15. DTC REGISTRATION. That the Bonds initially shall be issued and
delivered in such manner that no physical distribution of the Bonds will be made to the public,
and The Depository Trust Company ("DTC"), New York, New York, initially will act as
depository for the Bonds. DTC has represented that it is a limited purpose trust company
incorporated under the laws of the State of New York, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
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"clearing agency" registered under Section 17A of the Securities Exchange Act of 1934, as
amended, and the City accepts, but in no way verifies, such representations. The Bonds initially
authorized by this Ordinance shall be delivered to and registered in the name of CEDE & CO.,
the nominee of DTC. It is expected that DTC will hold the Bonds on behalf of the Underwriter
and its participants. So long as each Bond is registered in the name of CEDE & CO., the Paying
Agent/Registrar shall treat and deal with DTC the same in all respects as if it were the actual and
beneficial owner thereof. It is expected that DTC will maintain a book-entry system which will
identify ownership of the Bonds in Authorized Denominations, with transfers of ownership being
effected on the records of DTC and its participants pursuant to rules and regulations established
by them, and that the Bonds initially deposited with DTC shall be immobilized and not be further
exchanged for substitute Bonds except as hereinafter provided. The City is not responsible or
liable for any functions of DTC, will not be responsible for paying any fees or charges with
respect to its services, will not be responsible or liable for maintaining, supervising, or reviewing
the records of DTC or its participants, or protecting any interests or rights of the beneficial
owners of the Bonds. It shall be the duty of the DTC Participants, as defined in the Official
Statement herein approved, to make all arrangements with DTC to establish this book-entry
system, the beneficial ownership of the Bonds, and the method of paying the fees and charges of
DTC. The City does not represent, nor does it in any way covenant that the initial book-entry
system established with DTC will be maintained in the future. Notwithstanding the initial
establishment of the foregoing book-entry system with DTC, if for any reason any of the
originally delivered Bonds is duly filed with the Paying Agent/Registrar with proper request for
transfer and substitution, as provided for in this Ordinance, substitute Bonds will be duly
delivered as provided in this Ordinance, and there will be no assurance or representation that any
book-entry system will be maintained for such Bonds. In connection with the initial
establishment of the foregoing book-entry system with DTC, the City heretofore has executed a
"Blanket Letter of Representations" prepared by DTC in order to implement the book-entry
system described above.
Section 16. CONTINUING DISCLOSURE OBLIGATION.
(a) Annual Reports. (i) The City shall provide annually to the MSRB, in an
electronic format as prescribed by the MSRB, within six months after the end of each fiscal year
ending in or after 2012, financial information and operating data with respect to the City of the
general type included in the final Official Statement authorized by Section 18 of this Ordinance,
being the information described in Exhibit C hereto. Any financial statements so to be provided
shall be (1) prepared in accordance with the accounting principles described in Exhibit C, or such
other accounting principles as the City may be required to employ from time to time pursuant to
state law or regulation, and (2) audited, if the City commissions an audit of such statements and
the audit is completed within the period during which they must be provided. If the audit of such
financial statements is not complete within such period, then the City shall provide unaudited
financial statements by the required time, and shall provide audited financial statements for the
applicable fiscal year to the MSRB, when and if the audit report on such statements become
available.
(ii) 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
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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 that is available to the public on the MSRB's internet
website or filed with the SEC. All documents provided to the MSRB pursuant to this
Section shall be accompanied by identifying information as prescribed by the MSRB.
(b) Event Notices. The City shall notify the MSRB in an electronic format as
prescribed by the MSRB, in a timely manner (but not in excess of ten Business Days after the
occurrence of the event) of any of the following events with respect to the Bonds:
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 or the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701–TEB) or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting the
tax status of the Bonds;
7. Modifications to rights of Bondholders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Bonds,
if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of an obligated
person (which 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,
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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);
13. The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry
into a definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than pursuant
to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
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 subsection.
(c) Limitations, Disclaimers, and Amendments. (i) 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 Bonds within the meaning of the
Rule, except that the City in any event will give notice of any deposit made in accordance with
this Ordinance or applicable law that causes Bonds no longer to be outstanding.
(ii) The provisions of this Section are for the sole benefit of the registered
owners and beneficial owners of the Bonds, and nothing in this Section, express or
implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder
to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Section and does not hereby undertake to provide any other information
that may be relevant or material to a complete presentation of the City's financial results,
condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City
does not make any representation or warranty concerning such information or its
usefulness to a decision to invest in or sell Bonds at any future date.
(iii) UNDER NO CIRCUMSTANCE SHALL THE CITY BE LIABLE TO
THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY
OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN
WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER
NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY
SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY
SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR
SPECIFIC PERFORMANCE.
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(iv) No default by the City in observing or performing its obligations under
this Section shall comprise 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.
(v) Should the Rule be amended to obligate the City to make filings with or
provide notices to entities other than the MSRB, the City hereby agrees to undertake such
obligation with respect to the Bonds in accordance with the Rule as amended. The
provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or
a change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to
purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule,
taking into account any amendments or interpretations of the Rule since such offering as
well as such changed circumstances and (2) either (a) the registered owners of a majority
in aggregate principal amount (or any greater amount required by any other provision of
this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to
such amendment or (b) a person that is unaffiliated with the City (such as nationally
recognized bond counsel) determined that such amendment will not materially impair the
interest of the registered owners and beneficial owners of the Bonds. If the City so
amends the provisions of this Section, it shall include with any amended financial
information or operating data next provided in accordance with subsection (b) of this
Section an explanation, in narrative form, of the reason for the amendment and of the
impact of any change in the type of financial information or operating data so provided.
The City may also amend or repeal the provisions of this continuing disclosure agreement
if the SEC amends or repeals the applicable provision of the Rule or a court of final
jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and
to the extent that the provisions of this sentence would not prevent an underwriter from
lawfully purchasing or selling Bonds in the primary offering of the Bonds.
(d) Procedures to Monitor Compliance with Continuing Disclosure Covenants. The
City hereby adopts the procedures attached hereto as Exhibit B as a means of monitoring
compliance with the continuing disclosure covenants made by the City herein.
Section 17. DEFEASANCE. (a) Deemed Paid. Any Bond and the interest thereon shall
be deemed to be paid, retired and no longer outstanding (a "Defeased Bond") within the meaning
of this Ordinance, except to the extent provided in subsection (e) of this Section, when payment
of the principal of such Bond, plus interest thereon to the due date (whether such due date be by
reason of maturity or otherwise) either (i) shall have been made or caused to be made in
accordance with the terms thereof, or (ii) shall have been provided for on or before such due date
by irrevocably depositing with or making available to the Paying Agent/Registrar in accordance
with an escrow agreement or other instrument (the "Future Escrow Agreement") for such
payment (1) lawful money of the United States of America sufficient to make such payment or
(2) Defeasance Securities that mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money to provide for
such payment, and when proper arrangements have been made by the City with the Paying
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Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due
and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as
aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or
entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this
Ordinance, and such principal and interest shall be payable solely from such money or
Defeasance Securities.
(b) Investments. Any moneys so deposited with the Paying Agent/Registrar may at
the written direction of the City be invested in Defeasance Securities, maturing in the amounts
and times as hereinbefore set forth, and all income from such Defeasance Securities received by
the Paying Agent/Registrar that is not required for the payment of the Bonds and interest thereon,
with respect to which such money has been so deposited, shall be turned over to the City, or
deposited as directed in writing by the City. Any Future Escrow Agreement pursuant to which
the money and/or Defeasance Securities are held for the payment of Defeased Bonds may
contain provisions permitting the investment or reinvestment of such moneys in Defeasance
Securities or the substitution of other Defeasance Securities upon the satisfaction of the
requirements specified in subsection (a)(i) or (ii) above. All income from such Defeasance
Securities received by the Paying Agent/Registrar which is not required for the payment of the
Defeased Securities, with respect to which such money has been so deposited, shall be remitted
to the City or deposited as directed in writing by the City.
(c) Selection of Defeased Bonds. In the event that the City elects to defease less than
all of the principal amount of Bonds of a maturity, the Paying Agent/Registrar shall select, or
cause to be selected, such amount of Bonds by such random method as it deems fair and
appropriate.
(d) Defeasance Securities. The term "Defeasance Securities" means (i) direct,
noncallable obligations of the United States of America, including obligations that are
unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an
agency or instrumentality of the United States, including obligations that are unconditionally
guaranteed or insured by the agency or instrumentality and that, on the date the governing body
of the City adopts or approves the proceedings authorizing the issuance of refunding bonds, 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 the governing body of the City adopts or approves the proceedings authorizing the issuance
of refunding bonds, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent and (iv) any securities and obligations now or
hereafter authorized by State law that are eligible to refund, retire or otherwise discharge
obligations such as the Bonds.
(e) Continuing Duty of Paying Agent/Registrar. Until all Bonds defeased under this
Section of this Ordinance shall become due and payable, the Paying Agent/Registrar for such
Bonds shall perform the services of Paying Agent/Registrar for such Bonds the same as if they
had not been defeased, and the City shall make proper arrangements to provide and pay for such
services.
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Section 18. SALE OF BONDS; OFFICIAL STATEMENT. (a) The Bonds shall be sold
and delivered subject to the provisions of Section 1 and Section 2 hereof through a negotiated
sale and pursuant to the terms and provisions of a purchase contract (the "Purchase Agreement"),
the terms and provisions of which are to be determined by the Pricing Officer in accordance with
Section 2 hereof, and in which the purchaser or purchasers of the Bonds (the "Underwriter")
shall be designated. The Pricing Officer is hereby authorized to execute and deliver the Purchase
Agreement for an on behalf of the City. The Bonds shall initially be registered in the name of
the Underwriter or its designee.
(b) The City hereby approves the form and content of the draft preliminary official
statement relating to the Bonds in the form attached hereto as Exhibit D and any addenda,
supplement or amendment thereto, and approves the distribution of such preliminary official
statement in the reoffering of the Bonds by the Underwriter in final form, with such changes
therein or additions thereto as the Pricing Officer executing the same may deem advisable. The
Pricing Officer is hereby authorized, in the name and on behalf of the City, to approve,
distribute, and deliver a final preliminary official statement and a final official statement relating
to the Bonds to be used by the Underwriter in the marketing of the Bonds.
(c) The Pricing Officer is authorized, in connection with effecting the sale of the
Bonds, to obtain from a municipal bond insurance company so designated in the Purchase
Agreement (the "Insurer") a municipal bond insurance policy (the "Insurance Policy") in support
of the Bonds. To that end, should the Pricing Officer exercise such authority and commit the
City to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in effect,
the requirements of the Insurer relating to the issuance of the Insurance Policy as set forth in the
Pricing Certificate are incorporated by reference into this Ordinance and made a part hereof for
all purposes, notwithstanding any other provision of this Ordinance to the contrary. The Pricing
Officer shall have the authority to execute any documents to effect the issuance of the Insurance
Policy by the Insurer.
(d) The Mayor and Mayor Pro Tem, the City Manager, the Executive Director of
Business Services and City Secretary, shall be and they 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 under the corporate seal and on
behalf of the City a Paying Agent/Registrar Agreement with the Paying Agent/Registrar and all
other instruments, whether or not herein mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Ordinance, the Pricing Certificate, the Bonds, the sale
of the Bonds, any Purchase Agreement and the Official Statement. In case any officer whose
signature shall appear on any Bond shall cease to be such officer before the delivery of such
Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if
such officer had remained in office until such delivery.
Section 19. FURTHER PROCEDURES. That the Mayor, the City Secretary, the City
Manager, the Executive Director of Business Services of the City, any Assistant City Manager,
and all other officers, employees, and agents of the City, and each of them, shall be and they 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
under the corporate seal and on behalf of the City all such instruments, whether or not herein
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mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this
Ordinance, and the sale and delivery of the Bonds and fixing all details in connection therewith.
The City Council hereby authorizes the payment of the fee of the Office of the Attorney General
of the State of Texas for the examination of the proceedings relating to the issuance of the
Bonds, in the amount determined in accordance with the provisions of Section 1202.004, Texas
Government Code.
Section 20. CONSTRUCTION FUND; USE OF PROCEEDS.
(a) The City hereby creates and establishes and shall maintain on the books of the
City a separate fund to be entitled the "Series 2012 Bond Construction Fund" (the "Construction
Fund") for use by the City for payment of all lawful costs associated with the acquisition and
construction of the projects described in the preambles to this Ordinance.
(b) The proceeds from the sale of the Bonds shall be deposited, on the date of closing,
in the manner described in a letter of instructions prepared by the City or on behalf of the City by
the City's financial advisor. The foregoing notwithstanding, proceeds representing accrued
interest on the Bonds shall be deposited to the credit of the Interest and Sinking Fund. Any
amounts remaining after completion of the improvements described in Section 1 hereof shall be
transferred FIRST to the Rebate Fund, to the extent required by Section 10 hereof, and
THEREAFTER to the Interest and Sinking Fund.
Section 21. INTEREST EARNINGS. That the interest earnings derived from the
investment of proceeds from the sale of the Bonds may be used along with other proceeds for the
construction of the permanent improvements set forth in Section 1 hereof for which the Bonds
are issued; provided that after completion of such permanent improvements, if any of such
interest earnings remain on hand, such interest earnings shall be deposited in the Interest and
Sinking Fund. It is further provided, however, that any interest earnings on proceeds which are
required to be rebated to the United States of America pursuant to this Ordinance hereof in order
to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as
interest earnings for the purposes of this Section.
Section 22. APPROVAL OF ESCROW AGREEMENT AND TRANSFER OF FUNDS.
In furtherance of authority granted by Section 1207.007(b), Texas Government Code, the Pricing
Officer is further authorized to enter into and execute on behalf of the City with the escrow agent
named therein, an escrow or similar agreement, in the form and substance as shall be approved
by the Pricing Officer, which agreement will provide for the payment in full of the Refunded
Obligations. In addition, the Pricing Officer is authorized to purchase such securities, to execute
such subscriptions for the purchase of the Escrowed Securities, (as defined in the agreement), if
any, and to authorize such contributions to the escrow fund as provided in the agreement.
Section 23. REDEMPTION OF REFUNDED OBLIGATIONS.
(a) The City hereby directs that certain of the Refunded Obligations be called for
redemption on the dates and as set forth in the Escrow Agreement. Each of such Refunded
Obligations shall be redeemed at the redemption price of par plus accrued interest. The Pricing
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Officer is hereby authorized and directed to issue or cause to be issued the Notices of
Redemption of the Refunded Obligations.
(b) In addition, the paying agent/registrars for the Refunded Obligations are hereby
directed to provide the appropriate notices of redemption and defeasance as specified by the
ordinances authorizing the issuance of the Refunded Obligations and are hereby directed to make
appropriate arrangements so that the Refunded Obligations may be redeemed on their
redemption dates. The Refunded Obligations shall be presented for redemption at the paying
agent/registrars therefore, and shall not bear interest after the date fixed for redemption.
(c) The source of funds for payment of the principal of and interest on the Refunded
Obligations on their redemption date shall be from the funds placed in escrow with the Escrow
Agent, pursuant to the Escrow Agreement approved in Section 22 of this Ordinance.
Section 24. DEFAULT AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of
this Ordinance is hereby declared to be an Event of Default:
(i) the failure to make payment of the principal of or interest on any of the
Bonds when the same becomes due and payable; or
(ii) default in the performance or observance of any other covenant,
agreement or obligation of the City, the failure to perform which materially, adversely
affects the rights of the registered owners of the Bonds, including, but not limited to, their
prospect or ability to be repaid in accordance with this Ordinance, and the continuation
thereof for a period of 60 days after notice of such default is given by any registered
owner to the City.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any
registered owner or an authorized representative thereof, including, but not limited to, a
trustee or trustees therefor, may proceed against the City, or any official, officer or
employee of the City in their official capacity, for the purpose of protecting and enforcing
the rights of the registered owners under this Ordinance, by mandamus or other suit,
action or special proceeding in equity or at law, in any court of competent jurisdiction,
for any relief permitted by law, including the specific performance of any covenant or
agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or
in violation of any right of the registered owners hereunder or any combination of such
remedies.
(ii) It is provided that all such proceedings shall be instituted and maintained
for the equal benefit of all registered owners of Bonds then outstanding.
(c) Remedies Not Exclusive.
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(i) No remedy herein conferred or reserved is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be cumulative
and shall be in addition to every other remedy given hereunder or under the Bonds or
now or hereafter existing at law or in equity; provided, however, that notwithstanding any
other provision of this Ordinance, the right to accelerate the debt evidenced by the Bonds
shall not be available as a remedy under this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be
deemed a waiver of any other available remedy.
(iii) By accepting the delivery of a Bond authorized under this Ordinance, such
registered owner agrees that the certifications required to effectuate any covenants or
representations contained in this Ordinance do not and shall never constitute or give rise
to a personal or pecuniary liability or charge against the officers, employees or members
of the City or the City Council.
(iv) None of the members of the City Council, nor any other official or officer,
agent, or employee of the City, shall be charged personally by the registered owners with
any liability, or be held personally liable to the registered owners under any term or
provision of this Ordinance, or because of any Event of Default or alleged Event of
Default under this Ordinance.
Section 25. MISCELLANEOUS PROVISIONS. (a) Preamble. The preamble to this
Ordinance is incorporated by reference and made a part hereof for all purposes.
(b) Titles Not Restrictive. That the titles assigned to the various sections of this
Ordinance are for convenience only and shall not be considered restrictive of the subject matter
of any section or of any part of this Ordinance.
(c) Rules of Construction. The words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Ordinance as a whole and not to any particular Section or
other subdivision. Except where the context otherwise requires, terms defined in this Ordinance
to impart the singular number shall be considered to include the plural number and vice versa.
References to any named person means that party and its successors and assigns. References to
any constitutional, statutory or regulatory provision means such provision as it exists on the date
this Ordinance is adopted by the City and any future amendments thereto or successor provisions
thereof. Any reference to "FORM OF BOND" shall refer to the form of the Bonds set forth in
Exhibit A to this Ordinance. Any reference to the payment of principal in this Ordinance shall
be deemed to include the payment of any mandatory sinking fund redemption payments as may
be described herein.
(d) Inconsistent Provisions. All ordinances, orders and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed
and declared to be inapplicable, and the provisions of this Ordinance shall be and remain
controlling as to the matters prescribed herein.
(e) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or
provision of this Ordinance or the application thereof to any person or circumstance shall be held
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to be invalid, the remainder of this Ordinance shall nevertheless be valid and the City hereby
declares that this Ordinance would have been enacted without such invalid word, phrase, clause,
paragraph, sentence, part, portion, or provisions.
(f) Governing Law. This Ordinance shall be construed and enforced in accordance
with the laws of the State of Texas.
(g) Open Meeting. The City officially finds and determines that the meeting at which
this Ordinance is adopted was open to the public; and that public notice of the time, place, and
purpose of such meeting was given, all as required by Chapter 551, Texas Government Code.
(h) Application of Chapter 1208, Government Code. Chapter 1208, Texas
Government Code, applies to the issuance of the Bonds and the pledge of ad valorem taxes
granted by the City under Section 6, and such pledge is therefore valid, effective, and perfected.
If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the
pledge of the ad valorem taxes granted by the City is to be subject to the filing requirements of
Chapter 9, Texas Business & Commerce Code, then in order to preserve to the Registered
Owners of the Bonds the perfection of the security interest in said pledge, the City agrees to take
such measures as it determines are reasonable and necessary under Texas law to comply with the
applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing to
perfect the security interest in said pledge to occur.
(i) Immediate Effect. In accordance with the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall be effective immediately upon its adoption by the City
Council.
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238
Ordinance
City of College Station, Texas
Certificates of Obligation, Series 2012
SIGNATURE PAGE
PASSED, APPROVED AND EFFECTIVE THIS __________, 2012.
City Secretary, City of College Station, Texas Mayor, City of College Station, Texas
(CITY SEAL)
APPROVED:
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
Bond Counsel
239
Schedule I-1
SCHEDULE I
ELIGIBLE OBLIGATIONS
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A-1
EXHIBIT A
FORM OF BOND
NO. _____ UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
GENERAL OBLIGATION IMPROVEMENT AND
REFUNDING BOND, SERIES 2012
$___________
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
% ________, 2012
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF COLLEGE
STATION, TEXAS, in Brazos County (the "City"), being a political subdivision of the State of
Texas, hereby promises to pay to _____________, or to the registered assignee hereof (either
being hereinafter called the "registered owner") the principal amount of
________________________ DOLLARS
and to pay interest thereon (calculated on the basis of a 360-day year of twelve 30-day months),
from the Original Issue Date specified above, to the Maturity Date specified above, or the date of
its redemption prior to scheduled maturity, at the interest rate per annum specified above, with
said interest payable on _________, 2012, and semiannually on each August 15 and February 15
thereafter until maturity or prior redemption; except that if this Bond is required to be
authenticated and the date of its authentication is later than February 15, 2012, such interest is
payable semiannually on each August 15 and February 15 following such date.
THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of
the United States of America, without exchange or collection charges. At maturity or
redemption prior to maturity, the principal of this Bond shall be paid to the registered owner
hereof upon presentation and surrender of this Bond at the designated corporate trust office in
Dallas, Texas (the "Designated Trust Office") of The Bank of New York Mellon Trust Company,
N.A., which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond
shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest
payment date by check, dated as of such interest payment date, drawn by the Paying
Agent/Registrar on, and payable solely from, funds of the City required by the ordinance
authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying
Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent by the
Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest
payment date, to the registered owner hereof, at its address as it appeared on the last business day
of the month preceding each such date (the "Record Date") on the Registration Books kept by the
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A-2
Paying Agent/Registrar, as hereinafter described. Any accrued interest due at maturity as
provided herein shall be paid to the registered owner upon presentation and surrender of this
Bond for payment at the Designated Trust Office of the Paying Agent/Registrar. The City
covenants with the registered owner of this Bond that on or before each principal and interest
payment date for this Bond it will make available to the Paying Agent/Registrar, from the
"Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for
the payment, in immediately available funds, of all principal of and interest on the Bonds, when
due.
IN THE EVENT OF NON-PAYMENT of interest on a scheduled payment date, and for
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 ("Special Payment Date", which shall be 15 days after the
Special Record Date) shall be sent at least five business days prior to the Special Record Date by
United States mail, first-class postage prepaid, to the address of each registered owner of a Bond
appearing on the Registration Books kept by the Paying Agent/Registrar at the close of business
on the last business day next preceding the date of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Bond shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Designated Trust 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 on which 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 BOND is one of a Series of Bonds dated as of ________, 2012, authorized in
accordance with the Constitution and laws of the State of Texas in the principal amount of
$_________, for the purpose of paying contractual obligations to be incurred by the City, to-wit,
the construction of improvements as described in the Bond Ordinance, and the payment of fiscal,
engineering and legal fees incurred in connection therewith.
ON FEBRUARY 15, ____, or on any date thereafter, the Bonds of this Series maturing
on February 15, ____ and thereafter may be redeemed prior to their scheduled maturities, at the
option of the City, in whole, or in part, at par and accrued interest to the date fixed for
redemption. The years of maturity of the Bonds called for redemption at the option of the City
prior to stated maturity shall be selected by the City. The Bonds or portions thereof redeemed
within a maturity shall be selected by lot or other method by the Paying Agent/Registrar;
provided, that during any period in which ownership of the Bonds is determined only by a book
entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity
and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity and
bearing such interest rate shall be selected in accordance with the arrangements between the City
and the securities depository.
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AT LEAST 30 days prior to the date fixed for any such redemption, a written notice of
such redemption shall be given to the registered owner of each Bond or a portion thereof being
called for redemption by depositing such notice in the United States mail, first-class postage
prepaid, addressed to each such registered owner at his address shown on the Registration Books
of the Paying Agent/Registrar. By the date fixed for any such redemption due provision shall be
made by the City with the Paying Agent/Registrar for the payment of the required redemption
price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest
thereon to the date fixed for redemption. If such notice of redemption is given, and if due
provision for such payment is made, all as provided above, this Bond, or the portion hereof
which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled
maturity, and shall not bear interest after the date fixed for its redemption, and shall not be
regarded as being outstanding except for the right of the registered owner to receive the
redemption price plus accrued interest to the date fixed for redemption from the Paying
Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of principal of this Bond or any portion
hereof. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same
maturity date, bearing interest at the same rate, in Authorized Denominations, at the written
request of the registered owner, and in aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation,
at the expense of the City, all as provided in the Ordinance.
ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without
interest coupons, in Authorized Denominations. As provided in the Bond Ordinance, this Bond
may, at the request of the registered owner or the assignee or assignees hereof, be assigned,
transferred, and exchanged for a like aggregate principal amount of fully registered Bonds,
without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as
the case may be, having the same maturity date, and bearing interest at the same rate, in
Authorized Denominations as requested in writing by the appropriate registered owner, assignee,
or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar at its
Designated Trust Office for cancellation, all in accordance with the form and procedures set
forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this
Bond must be presented and surrendered to the Paying Agent/Registrar at its Designated Trust
Office, together with proper instruments of assignment, in form and with guarantee of signatures
satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or
portions hereof in an Authorized Denomination to the assignee or assignees in whose name or
names this Bond or any such portion or portions hereof is or are to be transferred and registered.
The form of Assignment printed or endorsed on this Bond may be executed by the registered
owner to evidence the assignment hereof, but such method is not exclusive, and other
instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence
the assignment of this Bond or any portion or portions hereof from time to time by the registered
owner. The foregoing notwithstanding, in the case of the exchange of an assigned and
transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the
Paying Agent/Registrar will be paid by the City. The one requesting such exchange shall pay the
Paying Agent/Registrar's reasonable standard or customary fees and charges for exchanging any
Bond or portion thereof. In any circumstance, any taxes or governmental charges required to be
paid with respect thereto shall be paid by the one requesting such assignment, transfer, or
exchange as a condition precedent to the exercise of such privilege. In any circumstance, neither
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the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days before the day of the first mailing
of a notice of redemption of Bonds and ending at the close of business on the day of such
mailing, or (2) to transfer or exchange any Bonds so selected for redemption when such
redemption is scheduled to occur within 45 calendar days.
WHENEVER the beneficial ownership of this Bond is determined by a book entry at a
securities depository for the Bonds, the foregoing requirements of holding, delivering or
transferring this Bond shall be modified to require the appropriate person or entity to meet the
requirements of the securities depository as to registering or transferring the book entry to
produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the City,
resigns, or otherwise ceases to act as such, the City has covenanted in the Bond Ordinance that it
promptly will appoint a competent and legally qualified substitute therefor, and promptly will
cause written notice thereof to be mailed to the registered owners of the Bonds.
IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly
authorized, issued, and delivered; that all acts, conditions, and things required or proper to be
performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this
Bond have been performed, existed, and been done in accordance with law; that this Bond is a
direct obligation of said City, issued on the full faith and credit thereof; and that in accordance
with the terms of the Bond Ordinance, annual ad valorem taxes sufficient to provide for the
payment of the interest on and principal of this Bond, as such interest comes due and such
principal matures, have been levied and ordered to be levied against all taxable property in said
City, and have been pledged for such payment, within the limit prescribed by law.
BY BECOMING the registered owner of this Bond, the registered owner thereby
acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such
terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for
inspection in the official minutes and records of the City, and agrees that the terms and
provisions of this Bond and the Bond Ordinance constitute a contract between each registered
owner hereof and the City.
IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile
signature of the Mayor of the City, attested by the manual or facsimile signature of the City
Secretary, and the official seal of the City has been duly affixed to, or impressed, or placed in
facsimile, on this Bond.
xxxxx xxxxx
City Secretary, City of College Station, Texas Mayor, City of College Station, Texas
(SEAL)
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FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been issued under the provisions of the
proceedings adopted by the City as described in the text of this Bond; and that this Bond has
been issued in exchange for or replacement of a Bond of an issue which originally was approved
by the Attorney General of the State of Texas and registered by the Comptroller of Public
Accounts of the State of Texas.
Dated: _______________ The Bank of New York Mellon
Trust Company, N.A.
Paying Agent/Registrar
By:
Authorized Representative
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*FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE BONDS UPON INITIAL DELIVERY THEREOF
COMPTROLLER'S CERTIFICATE
OFFICE OF COMPTROLLER §
REGISTER NO. ________
STATE OF TEXAS §
I hereby certify that there is on file and of record in my office a certificate of the Attorney
General of the State of Texas to the effect that this Bond has been examined by him as required
by law, and that he finds that it has been issued in conformity with the Constitution and laws of
the State of Texas, and that it is a valid and binding obligation of the City of College Station,
Texas, payable in the manner provided by and in the ordinance authorizing same, and said Bond
has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas this ___________________.
__________________________________________
Comptroller of Public Accounts of
the State of Texas
(SEAL)
NOTE: *to accompany initial Bonds only.
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FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto:
Please insert Social Security or Taxpayer Identification Number of Transferee
Please print or type name and address, including zip code of Transferee
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints:
____________________________________, attorney, to register the transfer of the within Bond
on the books kept for registration thereof, with full power of substitution in the premises.
Dated: __________________.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed
by an eligible guarantor institution
participating in a securities transfer
association recognized signature guarantee
program.
NOTICE: The signature above must
correspond with the name of the registered
owner as it appears upon the front of this
Bond in every particular, without alteration
or enlargement or any change whatsoever.
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EXHIBIT B
. PROCEDURES REGARDING COMPLIANCE WITH FEDERAL TAX AND
CONTINUING DISCLOSURE COVENANTS
This Exhibit is intended to assist the City of College Station (the "City") in complying
with the federal income tax covenants and securities disclosure covenants as they apply to the
issuance of tax-exempt debt securities such as the General Obligation Improvement and
Refunding Bonds (the "Obligations"). These procedures should be read together with any
federal tax certifications, bond covenants, letters or memoranda from bond counsel and any
attachments thereto (collectively, the "Closing Documents"). Failure to comply with federal
guidelines could have serious consequences for investors, the City and its officials.
These procedures shall apply to the Obligations, until they are superseded by a
change in circumstances at which time the City's bond counsel will propose new procedures to
be adopted.
I. FEDERAL TAX LAW
1. Arbitrage Compliance.
Arbitrage refers to the difference between the interest paid on tax-exempt Obligations and
the interest earned by investing the proceeds of tax-exempt Obligations in higher-yielding
investments. Such higher-yielding investments could take the form of loans, securities, real
property, personal property, or other investments that could yield a profit to the City. Federal
income tax laws generally restrict the ability to earn arbitrage utilizing the proceeds of tax-
exempt Obligations. Generally, any profit from investing Obligation proceeds at a yield above
the yield paid on the Obligations belongs to the federal government and must be rebated to the
federal government. If the City fails to comply federal tax guidelines, Obligations could be
deemed to be “arbitrage bonds” by the Internal Revenue Service (the “IRS”), which would
expose the City to monetary liability from the City’s investors.
The arbitrage yield on the Obligations is set forth on the IRS Form 8038-G.
The Executive Director of Business Services and the City Treasurer (including such other
employees of the City who report to such officers) (collectively, the "Responsible Person") will
review the Closing Documents periodically (at least once a year) to ascertain if an exception to
arbitrage compliance applies.
a. Procedures applicable to the Obligation. The Responsible Person shall undertake
the following procedures.
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i. If the City plans to spend funds currently on hand for a future project with
the intent to later repay such funds from a debt issue, the Responsible
Person shall contact Bond Counsel to obtain advice regarding a
reimbursement resolution. The Responsible Person shall maintain any
official action of the City (such as a reimbursement resolution) stating the
City's intent to reimburse with the proceeds of the Obligations any amount
expended prior to the Issue Date for the acquisition, renovation or
construction of the Project.
ii. The Responsible Person shall ensure that the applicable information return
(e.g., U.S. Internal Revenue Service ("IRS") Form 8038-G, 8038-GC, or
any successor forms) is timely filed with the IRS.
iii. If proceeds of the Obligations are to be invested in interest-earning
investments, assure that, unless excepted from rebate and yield restriction
under section 148(f) of the Code, excess investment earnings are
computed and paid to the U.S. government at such time and in such
manner as directed by the IRS (i) at least every 5 years after the Issue Date
and (ii) within 30 days after the date the Obligations are retired. If
proceeds of the Obligations are to be invested in interest-earning
investments, the Responsible Person should contact the City's arbitrage
consultant regarding such matters.
iv. The Responsible Person shall monitor all amounts deposited into a sinking
fund or funds pledged (directly or indirectly) to the payment of the
Obligations, such as the Interest and Sinking Fund (the "I&S Fund"), to
assure that the maximum amount invested within such applicable fund at a
yield higher than the yield on the Obligations does not exceed an amount
equal to the debt service on the Obligations in the succeeding 12 month
period plus a carryover amount equal to one-twelfth of the principal and
interest payable on the Obligations for the immediately preceding 12-
month period.
NOTE: the purpose of the I&S Fund is to achieve a proper
matching of revenues with principal and interest payments within
each fiscal year. The I&S Fund should be used a mechanism for
payment of current debt service and not as a long-term investment
fund for debt service many years in the future.
v. The Responsible Person shall ensure that no more than 50% of the
proceeds of the Obligations are invested in an investment with a
guaranteed yield for 4 years or more.
b. With respect to the investment and expenditure of the proceeds of the Obligations
that are issued to finance public improvements or to acquire land or personal
property, the Responsible Person shall undertake the following.
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i. The Responsible Person shall instruct the persons who are primarily
responsible for the construction, renovation or acquisition of the facilities
financed with Obligations (the “Project”) that the Project must (i) proceed
with due diligence toward completion and that (ii) binding contracts for
the expenditure of at least 5% of the proceeds of the Obligations will be
entered into within six (6) months of the date of closing of the Obligations
(the “Issue Date”). The Responsible Person shall monitor that the above
requirements are satisfied.
ii. The Responsible Person shall monitor that at least 85% of the proceeds of
the Obligations to be used for the construction, renovation or acquisition
of the Project are expended within three years of the Issue Date.
iii. The Responsible Person shall monitor investment of proceeds of the
Obligations and restrict the yield of the investments to the yield on the
Obligations after three years of the Issue Date.
iv. To the extent that there are any unspent proceeds of the Obligations at the
time the Obligations are later refunded, or if there are unspent proceeds of
the Obligations that are being refunded by a new issuance of Obligations,
the Responsible Person shall continue monitoring the expenditure of such
unspent proceeds to ensure compliance with federal tax law with respect
to both the refunded Obligations and any Obligations being issued for
refunding purposes, and shall contact Bond Counsel as necessary.
c. Procedures applicable to Escrow Accounts for the Obligations. In addition to the
foregoing, with respect to the proceeds of the Obligations deposited to the escrow
fund to be administered pursuant to the terms of an escrow agreement, the
Responsible Person shall undertake the following.
i. The Responsible Person shall review invoices, reports and other
notifications from the escrow agent to ensure compliance with the
applicable provisions of the escrow agreement, including with respect to
reinvestment of cash balances.
ii. The Responsible Person shall contact the escrow agent on the date of
redemption of obligations being refunded to ensure that they were
redeemed.
iii. The Responsible Person shall monitor any unspent proceeds of the
refunded obligations to ensure that the yield on any investments applicable
to such proceeds are invested at the yield on the applicable obligations or
otherwise applied (see Closing Documents).
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B. Private Business Use.
Generally, the proceeds of tax-exempt Obligations may not inure to the benefit of entities
other than state or local governments (“private business use”). Private business use occurs
whenever Obligation proceeds are used to benefit any entity other than a state or local
government, including nonprofit corporations and the federal government.
A series of Obligations may lose their tax-exempt status if: (i) more than 10% of the
proceeds of the Obligations are to be used for any private business use and the payment of the
principal or interest on more than 10% of the proceeds of the Obligations is secured by or
payable from property used for a private business use, or (ii) the amount of proceeds of the
Obligations used to make loans to borrowers other than state and local governments exceeds the
lesser of 5% of the proceeds or $15 million.
With respect to the use of the facilities financed or refinanced with the proceeds of the
Obligations, the Responsible Person shall undertake the following to ensure the Obligations do
not violate private business use tests.
a. The Responsible Person shall develop procedures or a “tracking system” to
identify, log and record all property financed with tax-exempt debt and identify
the issue of Obligations used to finance such property.
b. The Responsible Person shall monitor and record the date on which the Project is
substantially complete and available to be used for the purpose intended.
c. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has any contractual
right (such as a lease, research contract, naming rights agreement, purchase
contract, management agreement or other service agreement) with respect to any
portion of the Project.
d. Before entering into any private business use arrangement that involves the use of
the Project, the Responsible Person must obtain a description of the proposed
private business use arrangement and determine whether such arrangement, if put
into effect, will be consistent with the restrictions on private business use of the
Project. In connection with the evaluation of any proposed private business use
arrangement, the Responsible Person should consult with Bond Counsel to
discuss whether such arrangement, if put into effect, will be consistent with the
restrictions on private business use of the Project, and, if not, whether any
“remedial action” permitted under federal guidelines may be taken as a means of
enabling such private business use without adversely affecting the tax-exempt
status of the Obligations.
e. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
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City, the agents of the City or members of the general public has a right to use the
output of the Project (e.g., water, gas, electricity, capacity) on any basis other than
standard rates and charges.
f. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, has a naming right
for the Project or any other contractual right granting an intangible benefit.
g. Prior to any sale of property owned by the City (real or personal), the Responsible
Person must confirm whether such property was financed with tax-exempt debt,
and if so, determine whether the proposed disposition of the property could
impact the tax-exempt status of the series of Obligations that financed the
acquisition of such property.
h. The Responsible Person shall take any action necessary to remediate any failure
to maintain compliance with the covenants contained in the ordinance authorizing
the issuance of the applicable series of Obligations.
C. Record Retention.
The Responsible Person will maintain or cause to be maintained all records relating to the
investment and expenditure of the proceeds of the Obligations and the use of the Project financed
or refinanced thereby for a period ending three (3) years after the complete extinguishment of the
Obligations. If any portion of the Obligations is refunded with the proceeds of another series of
Obligations, such records shall be maintained until the three (3) years after the refunding
Obligations mature or are otherwise paid off. Such records can be maintained in paper or
electronic format.
For purposes of these procedures, the Memorandum of Bond Counsel dated December 1,
2011 styled "Certain Federal Income Tax Considerations for Record Retention – Record
Management Program and Periodic Compliance Review" in incorporated herein and should be
reviewed periodically, at least once per year, by the Responsible Person.
D. Responsible Person & Continuity.
Each Responsible Person shall receive appropriate training regarding the City’s
accounting system, contract intake system, facilities management and other systems necessary to
track the investment and expenditure of the proceeds and the use of the facilities financed with
the proceeds of the Obligations. The foregoing notwithstanding, the Responsible Person is
authorized and instructed to retain such experienced advisors and agents as may be necessary to
carry out the purposes of these instructions.
Prior to cessation of employment with the City, the Responsible Person should identify
their successor to maintain compliance with these procedures.
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II. FEDERAL SECURITIES LAW
Obligations, whether taxable or tax-exempt, sold in a public offering in an amount of
$1 million or more are subject to Rule 15c2-12 (the “Rule”) of the United States Securities and
Exchange Commission (the “SEC”). Additionally, the City may have covenanted to comply
with the Rule even with respect to Obligations that would otherwise be exempt from the Rule
(e.g., Obligations sold in a private placement or Obligations sold in an amount less than
$1 million). Pursuant to the Rule, the City is required to make annual filings of certain
information, as well as make filings upon the occurrence of certain specified events. All filings
must be made with the Municipal Securities Rulemaking Board (the “MSRB”) through its
Electronic Municipal Market Access System (“EMMA”) at emma.msrb.org.
A. Annual Filings.
The City must file the information listed below with EMMA within six (6) months of
each fiscal year end for so long as the respective series of Obligations remains outstanding. The
City’s fiscal year ends on September 30 of each year. Therefore, the City must provide updated
information by March 31 of the subsequent year. If audited financial statements are not available
by February 28, the City must provide unaudited financial information by such date and provide
audited financial statements when such statements become available. The City must file each of
the following items with EMMA:
(1) The City’s audited financial statements; and
(2) An update of the financial tables included in the Official Statement used in
connection with the Obligations as described under the caption "Continuing
Disclosure of Information". The information should be from the most recent
fiscal year end.
The Responsible Person must compile, prepare and make such filings within the required
time, or, alternatively, contract with a third-party, such as the City’s financial advisor, to make
such filings on the City’s behalf.
B. Notices of Specified Events.
The City must provide notice of any of the following events with respect to the
Obligations to the MSRB in a timely manner (but not in excess of ten business days after the
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;
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(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the IRS 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 Obligations, or other
material events affecting the tax status of the Obligations;
(7) Modifications to rights of Obligation holders, if material;
(8) Obligations calls (includes redemptions and other early payments), if material,
and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Obligations, if
material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership or similar event of the City;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material;
(14) Appointment of a successor or additional paying agent or the change of name of a
paying agent, if material; and
(15) In a timely manner, notice of a failure of the City to make the required annual
filings listed in Subsection II(A) above.
The Responsible Person should review this list at regular intervals to determine whether
any event has occurred that may require a filing with EMMA.
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EXHIBIT C
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 16 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified below (and included in the Appendix
or under the headings of the Official Statement referred to):
1. The "Annual Financial Report" for the most recently concluded fiscal year.
2. The information included in the Official Statement under the following tables, but
for the most recently concluded fiscal year: Tables 1 through 6, 8 through 20.
Accounting Principles
The accounting principles referred to in such Section are the accounting principles
described in the notes to the financial statements referred to in paragraph 1 described above, as
such principles may be changed from time to time to comply with state law or regulation.
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EXHIBIT D
PRELIMINARY OFFICIAL STATEMENT
256
2012 Proposed Bond Issue
General Obligation Bonds
2003 General Obligation Bonds Amount
Streets and Transportation
Oversize Participation 440,000$
Streets and Transportation Projects Total 440,000$
2003 General Obligation Bond Total 440,000$
2008 General Obligation Bonds
Streets and Transportation
Penberthy Extension 500,000$
Traffic Signals 650,000
Bird Bond Road Rehabilitation *423,000
Rock Prairie Road Bridge Widening Design *567,000
Health Science Center Parkway *500,000
Lincoln Sidewalks 200,000
Rock Prairie Road West Right of Way 630,000
Lick Creek Hike and Bike Trail 100,000
University Drive Pedestrian Improvements Ph II 250,000
Streets and Transportation Projects Total 3,820,000$
Parks
Lick Creek Park Trail Completion 100,000$
Lincoln Center Addition 75,000
Parks Projects Total 175,000$
2008 General Obligation Bond Total 3,995,000$
New General Obligation Bond Total 4,435,000$
Proposed Refunding 30,300,000$
General Obligation Bonds and Refunding Total 34,735,000$
*From remaining Barron Road Widening authorization.
257
April 26, 2012
Regular Agenda Item No. 9
Consider Ordinance Issuing Certificates of Obligation
To: David Neeley, City Manager
From: Jeff Kersten, Executive Director of Business Services
Agenda Caption: Presentation, possible action and discussion on an ordinance
authorizing the issuance and sale of up to $17,400,000 in “City of College Station, Texas
Certificates of Obligation, Series 2012”; delegating the authority to certain City Officials to
execute certain documents relating to the sale of the certificates; approving and authorizing
instruments and procedures relating to the certificates; and enacting other provisions
relating to the subject.
Relationship to Strategic Goals: Financially Sustainable City, and Providing Core Services
and Infrastructure.
Recommendation(s): Council move to approve the attached ordinance authorizing
the issuance of Certificates of Obligation, Series 2012; delegating the authority to certain
City Officials to execute certain documents relating to the sale of the certificates; approving
and authorizing instruments and procedures relating to the certificates; and enacting other
provisions relating to the subject.
Summary: The City Council is authorized to approve the issuance of Certificates of
Obligation (CO’s) after approving a resolution directing notice to be published of the intent
to issue the CO’s. On March 22, 2012 Council approved a resolution directing staff to
advertise the issuance of CO’s. On March 25th and April 1st such notice was published.
The City of College Station typically issues debt to fund various capital projects identified
and approved as a part of the annual budget. The City primarily uses three types of debt
instruments to fulfill those requirements:
1. General Obligation Bonds (GOB’s) are based on the full faith and credit of the City
and are paid primarily through the debt service portion of the ad valorem tax
rate. GOBs are authorized by the voters and therefore the notice is provided in
the election process.
2. Utility Revenue Bonds (URB’s) are backed by the revenues of the City's various
utilities and are issued as a business activity. These are typically only issued for
utility capital projects.
3. Certificates of Obligation (CO’s) normally include at least one additional revenue
stream such as utility revenues, but are considered to be much like GOBs and
therefore normally receive a rating similar to GOB’s. Our policy for issuing CO's
allows more flexibility in their issue than GOB’s, particularly when other revenues
are anticipated to assist in debt service.
It is at the recommendation of the City’s Financial Advisor, Mr. Drew Masterson with First
Southwest and Company, that the City issue Certificates of Obligation for utility projects
rather than Utility Revenue Bonds.
This particular issue will provide resources for electric, water and wastewater
improvements, and debt issuance costs totaling $17,300,000.
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If this ordinance is approved, the City Council will be delegating to the Mayor, City
Manager and the Executive Director of Business Services the authority to effect
the sale of the certificates through October 26, 2012.
Budget & Financial Summary: Staff reviewed the impact of the Certificates have on the
City's ability to meet debt service requirements and the effect they may have on the ad
valorem tax rate and utility rates. The recommendation to move forward with this issue will
not affect the ad valorem tax rate or the utility rates.
Attachments:
1. Ordinance
2. Preliminary Official Statement (Available in City Secretary Office)
3. Debt Issuance 2012.
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ORDINANCE NO. _____
AUTHORIZING THE ISSUANCE OF UP TO $17,400,000 IN PRINCIPAL
AMOUNT OF "CITY OF COLLEGE STATION, TEXAS CERTIFICATES OF
OBLIGATION, SERIES 2012"; DELEGATING THE AUTHORITY TO
CERTAIN CITY OFFICIALS TO EXECUTE CERTAIN DOCUMENTS
RELATING TO THE SALE OF THE CERTIFICATES; APPROVING AND
AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING TO SAID
CERTIFICATES; AND ENACTING OTHER PROVISIONS RELATING TO
THE SUBJECT
WHEREAS, on March 22, 2012, the City Council of the City of College Station (the
"City") passed a resolution authorizing and directing notice of its intention to issue the
Certificates of Obligation herein authorized, to be published in a newspaper as required by
Section 271.049 of the Texas Local Government Code;
WHEREAS, said notice was published in the Bryan-College Station Eagle, a
"newspaper" of the type described in Section 2051.044, Texas Government Code, as required by
said Section 271.049 of the Texas Local Government Code, on March 25, 2012 and April 1,
2012;
WHEREAS, said notice provided that the ordinance authorizing the Certificates of
Obligation may authorize an authorized officer of the City to effect the sale and delivery of the
Certificates of Obligation on a date or dates subsequent to the adoption of the ordinance;
WHEREAS, no petition, signed by at least 5% of the qualified electors of said City as
permitted by said Section 271.049 of the Texas Local Government Code protesting the issuance
of such Certificates of Obligation, has been filed;
WHEREAS, the City is an "Issuer" within the meaning of Section 1371.001(4)(P), Texas
Government Code, having (i) a principal amount of at least $100 million in outstanding long-
term indebtedness, in long-term indebtedness proposed to be issued, or a combination of
outstanding or proposed long-term indebtedness and (ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the four highest rating categories for
long-term debt instruments by a nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form of credit enhancement entered
into in connection with the obligation;
WHEREAS, the Certificates of Obligation hereinafter authorized are to be issued and
delivered pursuant to Subchapter C of Chapter 271 of the Texas Local Government Code and
Chapter 1371, Texas Government Code and the City's Home Rule Charter; and
WHEREAS, it is officially found, determined, and declared that the meeting at which this
Ordinance has been adopted was open to the public and public notice of the time, place and
subject matter of the public business to be considered and acted upon at said meeting, including
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this Ordinance, was given, all as required by the applicable provisions of Texas Government
Code, Chapter 551;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
Section 1. AUTHORIZATION OF CERTIFICATES OF OBLIGATION. That said
City's Certificates of Obligation, to be designated the "City of College Station, Texas Certificates
of Obligation, Series 2012", are hereby authorized to be issued and delivered in the principal
amount not to exceed $17,400,000 for (i) the purpose of paying contractual obligations to be
incurred by the City, to-wit, the construction of improvements and extensions to the City’s
combined waterworks, sewer and electric systems; and the payment of fiscal, engineering and
legal fees incurred in connection therewith and (ii) to pay the costs of issuance of the
Certificates.
Section 2. DELEGATION TO PRICING OFFICER.
(a) As authorized by Section 1371.053, Texas Government Code, the Mayor, the City
Manager and the Executive Director of Business Services of the City (each the "Pricing Officer")
are each hereby authorized to act severally on behalf of the City in selling and delivering the
Certificates, carrying out the other procedures specified in this Ordinance, including, determining
the date of the Certificates, any additional or different designation or title by which the
Certificates shall be known, whether the Certificate shall be sold and delivered in one or more
series and the date and sale and delivery of each such series, the price at which the Certificates
will be sold, the years in which the Certificates will mature, the principal amount to mature in
each of such years, the rate of interest to be borne by each such maturity, the interest payment
and record dates, the price and terms upon and at which the Certificates shall be subject to
redemption prior to maturity at the option of the City, as well as any mandatory sinking fund
redemption provisions, and all other matters relating to the issuance, sale, and delivery of the
Certificates and obtaining municipal insurance for all or any portion of the Certificates and
providing for the terms and provisions thereof applicable to the Certificates, all of which shall be
specified in the Pricing Certificate; provided that:
(i) the aggregate principal amount of the Certificates shall not exceed
$17,400,000;
(ii) the true interest cost of the Certificates shall not exceed 4.250% per
annum;
(iii) the net effective interest rate on the Certificates shall not exceed the
maximum rate set forth in Chapter 1204, Texas Government Code, as amended;
(iv) the final maturity of the Certificates shall not exceed February 15, 2032;
(v) the delegation made hereby shall expire if not exercised by the Pricing
Officer on or prior to October 26, 2012; and
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(vi) on or prior to delivery, the Certificates shall be rated by a nationally
recognized rating agency for municipal securities in one of the four highest categories for
long-term obligations.
(b) In establishing the aggregate principal amount of the Certificates, the Pricing
Officer shall establish an amount that, when combined with premium used for purposes other
than the payment of costs of issuance, does not exceed the amount authorized in Subsection (a)
hereof, which shall be sufficient in amount to provide for the purposes for which the Certificates
are authorized and to pay costs of issuing the Certificates. The Certificates shall be sold with and
subject to such terms as set forth in the Purchase Agreement as described in Section 19 herein.
Section 3. CHARACTERISTICS OF THE CERTIFICATES. (a) The City shall keep or
cause to be kept at the corporate trust office in Dallas, Texas (the "Designated Trust Office") of
The Bank of New York Mellon Trust Company, N.A., or such other bank, trust company,
financial institution, or other agency named in accordance with the provisions of (g) below (the
"Paying Agent/Registrar"), books or records for the registration and transfer of the Certificates
(the "Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its
registrar and transfer agent to keep such books or records and make such transfers and
registrations under such reasonable regulations as the City and the Paying Agent/Registrar may
prescribe; and the Paying Agent/Registrar shall make such transfers and registrations as herein
provided. It shall be the duty of the Paying Agent/Registrar to obtain from the registered owner
and record in the Registration Books the address of the registered owner of each Certificate to
which payments with respect to the Certificates shall be mailed, as herein provided. The City or
its designee shall have the right to inspect the Registration Books during regular business hours
of the Paying Agent/Registrar at its Designated Trust Office, but otherwise the Paying
Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by
law, shall not permit their inspection by any other entity. Registration of each Certificate may be
transferred in the Registration Books only upon presentation and surrender thereof to the Paying
Agent/Registrar at its Designated Trust Office for transfer of registration and cancellation,
together with proper written instruments of assignment, in form and with guarantee of signatures
satisfactory to the Paying Agent/Registrar, evidencing the assignment of such Certificate, or any
portion thereof in any Authorized Denomination, to the assignee or assignees thereof, and the
right of such assignee or assignees to have such Certificate or any such portion thereof registered
in the name of such assignee or assignees. Upon the assignment and transfer of any Certificate
or any portion thereof, a new substitute certificate or certificates shall be issued in exchange
therefor in the manner herein provided.
(b) The entity in whose name any Certificate shall be registered in the Registration
Books at any time shall be treated as the absolute owner thereof for all purposes of this
Ordinance, whether or not such Certificate shall be overdue, and the City and the Paying
Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on
account of, the principal of, premium, if any, and interest on any such certificate shall be made
only to such registered owner. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such certificate to the extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying
agent for paying the principal of and interest on the Certificates, and to act as its agent to
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exchange or replace Certificates, all as provided in this Ordinance. The Paying Agent/Registrar
shall keep proper records of all payments made by the City and the Paying Agent/Registrar with
respect to the Certificates, and of all exchanges thereof, and all replacements thereof, as provided
in this Ordinance.
(d) Each Certificate may be exchanged for fully registered certificates in the manner
set forth herein. Each Certificate issued and delivered pursuant to this Ordinance may, upon
surrender thereof at the Designated Trust Office of the Paying Agent/Registrar, together with a
written request therefor duly executed by the registered owner or the assignee or assignees
thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures
satisfactory to the Paying Agent/Registrar, at the option of the registered owner or such assignee
or assignees, as appropriate, be exchanged for fully registered Certificates, without interest
coupons, in the form prescribed in the FORM OF CERTIFICATE, in an Authorized
Denomination (subject to the requirement hereinafter stated that each substitute Certificate shall
have a single stated maturity date), as requested in writing by such registered owner or such
assignee or assignees, in an aggregate principal amount equal to the principal amount of any
Certificate or Certificates so surrendered, and payable to the appropriate registered owner,
assignee, or assignees, as the case may be. If any Certificate or portion thereof is assigned and
transferred, each Certificate issued in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Certificate for which it is being exchanged. Each
substitute Certificate shall bear a letter and/or number to distinguish it from each other
Certificate. The Paying Agent/Registrar shall exchange or replace Certificates as provided
herein, and each fully registered Certificate or Certificates delivered in exchange for or
replacement of any Certificate or portion thereof as permitted or required by any provision of
this Ordinance shall constitute one of the Certificates for all purposes of this Ordinance, and may
again be exchanged or replaced. It is specifically provided, however, that any Certificate
delivered in exchange for or replacement of another Certificate prior to the first scheduled
interest payment date on the Certificates (as stated on the face thereof) shall be dated the same
date as such Certificate, but each substitute Certificate so delivered on or after such first
scheduled interest payment date shall be dated as of the interest payment date preceding the date
on which such substitute Certificate is delivered, unless such substitute Certificate is delivered on
an interest payment date, in which case it shall be dated as of such date of delivery; provided,
however, that if at the time of delivery of any substitute Certificate the interest on the Certificate
for which it is being exchanged has not been paid, then such substitute Certificate shall be dated
as of the date to which such interest has been paid in full. On each substitute Certificate issued
in exchange for or replacement of any Certificate or Certificates issued under this Ordinance
there shall be printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form
hereinafter set forth in the FORM OF CERTIFICATE (the "Authentication Certificate"). An
authorized representative of the Paying Agent/Registrar shall, before the delivery of any such
substitute Certificate, date such substitute Certificate in the manner set forth above, and manually
sign and date the Authentication Certificate, and no such substitute Certificate shall be deemed to
be issued or outstanding unless the Authentication Certificate is so executed. The Paying
Agent/Registrar promptly shall cancel all Certificates surrendered for exchange or replacement.
No additional ordinances, orders, or resolutions need be passed or adopted by the City Council or
any other body or person so as to accomplish the foregoing exchange or replacement of any
Certificates or portion thereof, and the Paying Agent/Registrar shall provide for the printing,
execution, and delivery of the substitute Certificate in the manner prescribed herein. Pursuant to
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Chapter 1206, Texas Government Code, the duty of exchange or replacement of any Certificates
as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of
Authentication Certificate, the exchanged or replaced Certificate shall be valid, incontestable,
and enforceable in the same manner and with the same effect as the Certificates which originally
were delivered pursuant to this Ordinance, approved by the Attorney General, and registered by
the Comptroller of Public Accounts. Neither the City nor the Paying Agent/Registrar shall be
required to transfer or exchange any Certificate so selected for redemption, in whole or in part,
within 45 calendar days of the date fixed for redemption; provided, however, such limitation of
transfer shall not be applicable to an exchange by the registered owner of the uncalled principal
of a Certificate.
(e) All Certificates issued in exchange or replacement of any other Certificate or
portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the
principal of and interest on such Certificates to be payable only to the registered owners thereof,
(ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned,
(iv) may be exchanged for other Certificates, (v) shall have the characteristics, (vi) shall be
signed and sealed, and (vii) the principal of and interest on the Certificates shall be payable, all
as provided, and in the manner required or indicated, in the FORM OF CERTIFICATE.
(f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees
and charges for making transfers of Certificates, but the registered owner of any Certificate
requesting such transfer shall pay any taxes or other governmental charges required to be paid
with respect thereto. The registered owner of any Certificates requesting any exchange shall pay
the Paying Agent/Registrar's reasonable and standard or customary fees and charges for
exchanging any such certificate or portion thereof, together with any taxes or governmental
charges required to be paid with respect thereto, all as a condition precedent to the exercise of
such privilege of exchange, except, however, that in the case of the exchange of an assigned and
transferred Certificate or Certificates or any portion or portions thereof in an Authorized
Denomination, as provided in this Ordinance, such fees and charges will be paid by the City. In
addition, the City hereby covenants with the registered owners of the Certificates that it will (i)
pay the reasonable and standard or customary fees and charges of the Paying Agent/Registrar for
its services with respect to the payment of the principal of and interest on Certificates, when due,
and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the
transfer or registration of Certificates solely to the extent above provided, and with respect to the
exchange of Certificates solely to the extent above provided.
(g) The City covenants with the registered owners of the Certificates that at all times
while the Certificates are outstanding the City will provide a competent and legally qualified
bank, trust company, financial institution, or other agency to act as and perform the services of
Paying Agent/Registrar for the Certificates under this Ordinance, and that the Paying
Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change
the Paying Agent/Registrar upon not less than 60 days written notice to the Paying
Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its
successor by merger, acquisition, or other method) should resign or otherwise cease to act as
such, the City covenants that it will promptly appoint a competent and legally qualified national
or state banking institution which shall be a corporation organized and doing business under the
laws of the United States of America or of any state, authorized under such laws to exercise trust
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powers, subject to supervision or examination by federal or state authority, and whose
qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying
Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the
previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a
copy thereof), along with all other pertinent books and records relating to the Certificates, to the
new Paying Agent/Registrar designated and appointed by the City. Upon any change in the
Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the
new Paying Agent/Registrar to each registered owner of the Certificates, by United States mail,
first-class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this
Ordinance shall be delivered to each Paying Agent/Registrar.
Section 4. FORM OF CERTIFICATES. The form of the Certificates, including the form
of the Authentication Certificate, the form of Assignment and the form of Registration
Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the
Certificates initially issued and delivered pursuant to this Ordinance, shall be in substantially the
form as set forth in Exhibit A to this Ordinance, with such appropriate variations, omissions, or
insertions as are permitted or required by this Ordinance and with the FORM OF CERTIFICATE
to be modified pursuant to, and completed with information set forth in the Pricing Certificate.
The printer of the Certificates is hereby authorized to print on the Certificates (i) the form of
bond counsel's opinion relating to the Certificates, and (ii) an appropriate statement of insurance
furnished by a municipal bond insurance company providing municipal bond insurance, if any,
covering all or any part of the Certificates.
Section 5. DEFINITIONS. That the term "Authorized Denomination" shall mean a
denomination of $5,000 of principal amount of a Certificate or any integral multiple thereof; the
term "Business Day" means a Saturday, Sunday, a legal holiday, or a day on which banking
institutions in the City are, authorized by law or executive order to close; the term "Certificates"
and "Certificates of Obligation" shall mean the City of College Station, Texas Certificates of
Obligation, Series 2012, authorized to be issued and delivered by this Ordinance; the term
"MSRB" means the Municipal Securities Rulemaking Board; the term "Rule" means SEC Rule
15c2 12, as amended from time to time; the term "SEC" means the United States Securities and
Exchange Commission; and the term "Surplus Revenues" shall mean those revenues from the
operation of the City's combined municipal electric light and power, waterworks and sewer
system remaining after payment of all operation and maintenance expenses thereof and other
obligations heretofore or hereafter incurred to which such revenues have been or shall be
encumbered by a lien on and pledge of such revenues superior to the lien on and pledge of such
revenues to the Certificates.
Section 6. LEVY OF TAX; INTEREST AND SINKING FUND.
(a) That a special fund or account, to be designated the "City of College Station,
Texas Series 2012 Certificate of Obligation Interest and Sinking Fund" (the "Interest and Sinking
Fund") is hereby created and shall be established and maintained by the City. The Interest and
Sinking Fund shall be kept separate and apart from all other funds and accounts of the City, and
shall be used only for paying the interest on and principal of the Certificates. All ad valorem
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taxes levied and collected for and on account of the Certificates shall be deposited, as collected,
to the credit of the Interest and Sinking Fund. During each year while any of the Certificates are
outstanding and unpaid, the governing body of the City shall compute and ascertain the rate and
amount of ad valorem tax, based on the latest approved tax rolls of the City, with full allowances
being made for tax delinquencies and the cost of tax collections, which will be sufficient to raise
and produce the money required to pay the interest on the Certificates as such interest comes
due, and to provide a sinking fund to pay the principal (including mandatory sinking fund
redemption payments, if any) of the Certificates as such principal matures or comes due through
operation of the mandatory sinking fund redemption, if any, but never less than 2% of the
original amount of the Certificates as a sinking fund each year. The rate and amount of ad
valorem tax is hereby ordered to be levied against all taxable property in the City for each year
while any of the Certificates is outstanding and unpaid, and the ad valorem tax shall be assessed
and collected each such year and deposited to the credit of the Interest and Sinking Fund. Ad
valorem taxes necessary to pay the interest on and principal of the Certificates, as such interest
comes due and such principal matures, are hereby pledged for such payment, within the limit
prescribed by law.
(b) There shall be appropriated from the General Fund of the City or other lawfully
available funds of the City for deposit into the Interest and Sinking Fund moneys as may be
necessary to pay the principal and interest payments on the Certificates scheduled to occur on or
before August 15, 2012.
Section 7. REVENUES. That the Certificates are additionally secured by and shall be
payable from the Surplus Revenues. The Surplus Revenues are pledged by the City pursuant to
authority of Chapter 1502, Texas Government Code, specifically Section 1502.058 thereof. The
City shall promptly deposit the Surplus Revenues upon their receipt to the credit of the Interest
and Sinking Fund created pursuant to Section 6, to pay the principal and interest on the
Certificates. The amount of Surplus Revenues pledged to the payment of the Certificates shall
not exceed $1,000. If Surplus Revenues or any other lawfully available revenues, income or
resources of the City are deposited or budgeted to be deposited in the Interest and Sinking Fund
in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the
amount of taxes that otherwise would have been required to be levied pursuant to Section 6 may
be reduced to the extent and by the amount of the Surplus Revenues or other lawfully available
revenues, income or resources then on deposit or budgeted to be deposited to the credit of the
Interest and Sinking Fund.
Section 8. TRANSFER. That the City shall do any and all things necessary to
accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to
pay such items of principal and interest due on the Certificates.
Section 9. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this
Ordinance shall be secured in the manner and to the fullest extent permitted or required by law
for the security of public funds, and such Interest and Sinking Fund shall be used only for the
purposes and in the manner permitted or required by this Ordinance.
Section 10. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
CERTIFICATES. (a) Replacement Certificates. That in the event any outstanding Certificate is
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damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be
printed, executed, and delivered, a new Certificate of the same principal amount, maturity, and
interest rate, as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for
such Certificate in the manner hereinafter provided.
(b) Application for Replacement Certificates. That application for replacement of
damaged, mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner
thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Certificate,
the registered owner applying for a replacement Certificate shall furnish to the City and to the
Paying Agent/Registrar such security or indemnity as may be required by them to save each of
them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or
destruction of a Certificate, the registered owner shall furnish to the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Certificate,
as the case may be. In every case of damage or mutilation of a Certificate, the registered owner
shall surrender to the Paying Agent/Registrar for cancellation the Certificate so damaged or
mutilated.
(c) No Default Occurred. That notwithstanding the foregoing provisions of this
Section, in the event any such Certificate shall have matured, and no default has occurred which
is then continuing in the payment of the principal of, redemption premium, if any, or interest on
the Certificate, the City may authorize the payment of the same (without surrender thereof except
in the case of a damaged or mutilated Certificate) instead of issuing a replacement certificate,
provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Certificates. That prior to the issuance of any
replacement Certificate, the Paying Agent/Registrar shall charge the registered owner of such
Certificate with all legal, printing, and other expenses in connection therewith. Every
replacement Certificate issued pursuant to the provisions of this Section by virtue of the fact that
any Certificate is lost, stolen, or destroyed shall constitute a contractual obligation of the City
whether or not the lost, stolen, or destroyed Certificate shall be found at any time, or be
enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
proportionately with any and all other Certificates duly issued under this Ordinance.
(e) Authority for Issuing Replacement Certificates. That in accordance with Section
1201.067, Texas Government Code, this Section of this Ordinance shall constitute authority for
the issuance of any such replacement Certificate without necessity of further action by the City
or any other body or person, and the duty of the replacement of such Certificates is hereby
authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such Certificates in the form and manner and with the effect, as provided
in Section 5(d) of this Ordinance for Certificates issued in conversion and exchange of other
Certificates.
Section 11. FEDERAL INCOME TAX MATTERS. That the City covenants to refrain
from any action which would adversely affect, or to take such action as to ensure, the treatment
of the Certificates as obligations described in section 103 of the Code, the interest on which is
not includable in the "gross income" of the holder for purposes of federal income taxation. In
furtherance thereof, the City covenants as follows:
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(a) to take any action to assure that no more than 10 percent of the proceeds of the
Certificates (less amounts deposited to a reserve fund, if any) are used for any "private business
use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are
so used, that amounts, whether or not received by the City, with respect to such private business
use, do not, under the terms of this Ordinance or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than 10 percent of the debt service on the
Certificates, in contravention of section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds five percent of the proceeds of the Certificates (less
amounts deposited into a reserve fund, if any) then the amount in excess of five percent is used
for a "private business use" which is "related" and not "disproportionate", within the meaning of
section 141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or five percent of the proceeds of the Certificates (less amounts deposited into a
reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or
local governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Certificates
being treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(e) to refrain from taking any action that would result in the Certificates being
"federally guaranteed" within the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the Certificates, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Certificates, other than investment property acquired with –
(1) proceeds of the Certificates invested for a reasonable temporary period of
three years or less until such proceeds are needed for the purpose for which the
Certificates are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement fund
to the extent such amounts do not exceed 10 percent of the proceeds of the Certificates;
(g) to otherwise restrict the use of the proceeds of the Certificates or amounts treated
as proceeds of the Certificates, as may be necessary, so that the Certificates do not otherwise
contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent
applicable, section 149(d) of the Code (relating to advance refundings); and
(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Certificates) an amount that is at least equal to 90
percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to
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the United States of America, not later than 60 days after the Certificates have been paid in full,
100 percent of the amount then required to be paid as a result of Excess Earnings under section
148(f) of the Code.
For purposes of the foregoing (a) and (b), the City understands that the term "proceeds" includes
"disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding
bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the
date of issuance of the Certificates. It is the understanding of the City that the covenants
contained herein are intended to assure compliance with the Code and any regulations or rulings
promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that
regulations or rulings are hereafter promulgated which modify or expand provisions of the Code,
as applicable to the Certificates, the City will not be required to comply with any covenant
contained herein to the extent that such failure to comply, in the opinion of nationally-recognized
bond counsel, will not adversely affect the exemption from federal income taxation of interest on
the Certificates under section 103 of the Code. In the event that regulations or rulings are
hereafter promulgated which impose additional requirements which are applicable to the
Certificates, the City agrees to comply with the additional requirements to the extent necessary,
in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal
income taxation of interest on the Certificates under section 103 of the Code. In furtherance of
such intention, the City hereby authorizes and directs the Mayor, the City Manager, any
Assistant City Manager and the Executive Director of Business Services, severally, to execute
any documents, certificates or reports required by the Code, and to make such elections on behalf
of the City which may be permitted by the Code as are consistent with the purpose for the
issuance of the Certificates.
In order to facilitate compliance with clause (h) above, a "Rebate Fund" is hereby
established by the City for the sole benefit of the United States of America, and such Fund shall
not be subject to the claim of any other person, including without limitation the bondholders.
The Rebate Fund is established for the additional purpose of compliance with section 148 of the
Code.
Section 12. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. That the City covenants to account for the expenditure of proceeds from the sale of
the Certificates and any investment earnings thereon to be used for the purposes described in
Section 1 of this Ordinance (such purpose referred to in this Section and Section 13 hereof as a
"Project") on its books and records by allocating proceeds to expenditures within 18 months of
the later of the date that (a) the expenditure on a Project is made or (b) such Project is completed.
The foregoing notwithstanding, the City shall not expend such proceeds or investment earnings
more than 60 days after the earlier of (a) the fifth anniversary of the date of delivery of the
Certificates or (b) the date the Certificates are retired, unless the City obtains an opinion of
nationally-recognized bond counsel substantially to the effect that such expenditure will not
adversely affect the tax-exempt status of the Certificates. For purposes hereof, the City shall not
be obligated to comply with this covenant if it obtains an opinion that such failure to comply will
not adversely affect the excludability for federal income tax purposes from gross income of the
interest.
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Section 13. DISPOSITION OF PROJECT. That the City covenants that the property
constituting a Project will not be sold or otherwise disposed in a transaction resulting in the
receipt by the City of cash or other compensation, unless the City obtains an opinion of
nationally-recognized bond counsel substantially to the effect that such sale or other disposition
will not adversely affect the tax-exempt status of the Certificates. For purposes of the foregoing,
the portion of the property comprising personal property and disposed in the ordinary course
shall not be treated as a transaction resulting in the receipt of cash or other compensation. For
purposes hereof, the City shall not be obligated to comply with this covenant if it obtains an
opinion that such failure to comply will not adversely affect the excludability for federal income
tax purposes from gross income of the interest.
Section 14. PROCEDURES TO MONITOR COMPLIANCE WITH TAX
COVENANTS. The City hereby adopts the procedures attached hereto as Exhibit B as a means
of monitoring compliance with the federal tax covenants made by the City herein.
Section 15. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES.
That the Executive Director of Business Services of the City is hereby authorized to have control
of the Certificates initially issued and delivered hereunder and all necessary records and
proceedings pertaining to the Certificates pending their delivery and their investigation,
examination, and approval by the Attorney General of the State of Texas, and their registration
by the Comptroller of Public Accounts of the State of Texas. Upon registration of the
Certificates said Comptroller of Public Accounts (or a deputy designated in writing to act for
said Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such
Certificates, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such
certificate. The Certificates thus registered shall remain in the custody of the Executive Director
of Business Services (or the designee thereof) until delivered to the Underwriter (as defined in
Section 19 of this Ordinance).
Section 16. DTC REGISTRATION. That the Certificates initially shall be issued and
delivered in such manner that no physical distribution of the Certificates will be made to the
public, and The Depository Trust Company ("DTC"), New York, New York, initially will act as
depository for the Certificates. DTC has represented that it is a limited purpose trust company
incorporated under the laws of the State of New York, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered under Section 17A of the Securities Exchange Act of 1934, as
amended, and the City accepts, but in no way verifies, such representations. The Certificates
initially authorized by this Ordinance shall be delivered to and registered in the name of CEDE
& CO., the nominee of DTC. It is expected that DTC will hold the Certificates on behalf of the
Underwriter and its participants. So long as each Certificate is registered in the name of CEDE
& CO., the Paying Agent/Registrar shall treat and deal with DTC the same in all respects as if it
were the actual and beneficial owner thereof. It is expected that DTC will maintain a book-entry
system which will identify ownership of the Certificates in Authorized Denominations, with
transfers of ownership being effected on the records of DTC and its participants pursuant to rules
and regulations established by them, and that the Certificates initially deposited with DTC shall
be immobilized and not be further exchanged for substitute Certificates except as hereinafter
provided. The City is not responsible or liable for any functions of DTC, will not be responsible
for paying any fees or charges with respect to its services, will not be responsible or liable for
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maintaining, supervising, or reviewing the records of DTC or its participants, or protecting any
interests or rights of the beneficial owners of the Certificates. It shall be the duty of the DTC
Participants, as defined in the Official Statement herein approved, to make all arrangements with
DTC to establish this book-entry system, the beneficial ownership of the Certificates, and the
method of paying the fees and charges of DTC. The City does not represent, nor does it in any
way covenant that the initial book-entry system established with DTC will be maintained in the
future. Notwithstanding the initial establishment of the foregoing book-entry system with DTC,
if for any reason any of the originally delivered Certificates is duly filed with the Paying
Agent/Registrar with proper request for transfer and substitution, as provided for in this
Ordinance, substitute Certificates will be duly delivered as provided in this Ordinance, and there
will be no assurance or representation that any book-entry system will be maintained for such
Certificates. In connection with the initial establishment of the foregoing book-entry system
with DTC, the City heretofore has executed a "Blanket Letter of Representations" prepared by
DTC in order to implement the book-entry system described above.
Section 17. CONTINUING DISCLOSURE OBLIGATION.
(a) Annual Reports. (i) The City shall provide annually to the MSRB, in an
electronic format as prescribed by the MSRB, within six months after the end of each fiscal year
ending in or after 2012, financial information and operating data with respect to the City of the
general type included in the final Official Statement authorized by Section 19 of this Ordinance,
being the information described in Exhibit C hereto. Any financial statements so to be provided
shall be (1) prepared in accordance with the accounting principles described in Exhibit C, or
such other accounting principles as the City may be required to employ from time to time
pursuant to state law or regulation, and (2) audited, if the City commissions an audit of such
statements and the audit is completed within the period during which they must be provided. If
the audit of such financial statements is not complete within such period, then the City shall
provide unaudited financial statements by the required time, and shall provide audited financial
statements for the applicable fiscal year to the MSRB, when and if the audit report on such
statements become available.
(ii) 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 that is available to the public on the MSRB's internet
website or filed with the SEC. All documents provided to the MSRB pursuant to this
Section shall be accompanied by identifying information as prescribed by the MSRB.
(b) Event Notices. The City shall notify the MSRB in an electronic format as
prescribed by the MSRB, in a timely manner (but not in excess of ten Business Days after the
occurrence of the event) of any of the following events with respect to the Certificates:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
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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 or 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 Certificateholders, 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 an obligated
person (which 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);
13. The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry
into a definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than pursuant
to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
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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 subsection.
(c) Limitations, Disclaimers, and Amendments. (i) 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 notice of any deposit made in accordance
with this Ordinance or applicable law that causes Certificates no longer to be outstanding.
(ii) The provisions of this Section are for the sole benefit of the registered
owners and beneficial owners of the Certificates, and nothing in this Section, express or
implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder
to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Section and does not hereby undertake to provide any other information
that may be relevant or material to a complete presentation of the City's financial results,
condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City
does not make any representation or warranty concerning such information or its
usefulness to a decision to invest in or sell Certificates at any future date.
(iii) UNDER NO CIRCUMSTANCE SHALL THE CITY BE LIABLE TO
THE REGISTERED OWNER 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.
(iv) No default by the City in observing or performing its obligations under
this Section shall comprise 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.
(v) Should the Rule be amended to obligate the City to make filings with or
provide notices to entities other than the MSRB, the City hereby agrees to undertake such
obligation with respect to the Certificates in accordance with the Rule as amended. The
provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise 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 since such
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offering as well as such changed circumstances and (2) either (a) the registered owners 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) determined that such amendment will not
materially impair the interest of the registered owners and beneficial owners of the
Certificates. If the City so amends the provisions of this Section, it shall include with any
amended financial information or operating data next provided in accordance with
subsection (b) of this Section an explanation, in narrative form, of the reason for the
amendment and of the impact of any change in the type of financial information or
operating data so provided. The City may also amend or repeal the provisions of this
continuing disclosure agreement if the SEC amends or repeals the applicable provision of
the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule
are invalid, but only if and to the extent that the provisions of this sentence would not
prevent an underwriter from lawfully purchasing or selling Certificates in the primary
offering of the Certificates.
(d) Procedures to Monitor Compliance with Continuing Disclosure Covenants. The
City hereby adopts the procedures attached hereto as Exhibit B as a means of monitoring
compliance with the continuing disclosure covenants made by the City herein.
Section 18. DEFEASANCE. (a) Deemed Paid. Any Certificate and the interest thereon
shall be deemed to be paid, retired and no longer outstanding (a "Defeased Certificate") within
the meaning of this Ordinance, except to the extent provided in subsection (e) of this Section,
when payment of the principal of such Certificate, plus interest thereon to the due date (whether
such due date be by reason of maturity or otherwise) either (i) shall have been made or caused to
be made in accordance with the terms thereof, or (ii) shall have been provided for on or before
such due date by irrevocably depositing with or making available to the Paying Agent/Registrar
in accordance with an escrow agreement or other instrument (the "Future Escrow Agreement")
for such payment (1) lawful money of the United States of America sufficient to make such
payment or (2) Defeasance Securities that mature as to principal and interest in such amounts
and at such times as will insure the availability, without reinvestment, of sufficient money to
provide for such payment, and when proper arrangements have been made by the City with the
Paying Agent/Registrar for the payment of its services until all Defeased Certificates shall have
become due and payable. At such time as a Certificate shall be deemed to be a Defeased
Certificate hereunder, as aforesaid, such Certificate and the interest thereon shall no longer be
secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and
pledged or the pledge of Surplus Revenues as provided in this Ordinance, and such principal and
interest shall be payable solely from such money or Defeasance Securities.
(b) Investments. Any moneys so deposited with the Paying Agent/Registrar may at
the written direction of the City be invested in Defeasance Securities, maturing in the amounts
and times as hereinbefore set forth, and all income from such Defeasance Securities received by
the Paying Agent/Registrar that is not required for the payment of the Certificates and interest
thereon, with respect to which such money has been so deposited, shall be turned over to the
City, or deposited as directed in writing by the City. Any Future Escrow Agreement pursuant to
which the money and/or Defeasance Securities are held for the payment of Defeased Certificates
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may contain provisions permitting the investment or reinvestment of such moneys in Defeasance
Securities or the substitution of other Defeasance Securities upon the satisfaction of the
requirements specified in subsection (a)(i) or (ii) above. All income from such Defeasance
Securities received by the Paying Agent/Registrar which is not required for the payment of the
Defeased Securities, with respect to which such money has been so deposited, shall be remitted
to the City or deposited as directed in writing by the City.
(c) Selection of Defeased Certificates. In the event that the City elects to defease less
than all of the principal amount of Certificates of a maturity, the Paying Agent/Registrar shall
select, or cause to be selected, such amount of Certificates by such random method as it deems
fair and appropriate.
(d) Defeasance Securities. The term "Defeasance Securities" means (i) direct,
noncallable obligations of the United States of America, including obligations that are
unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an
agency or instrumentality of the United States, including obligations that are unconditionally
guaranteed or insured by the agency or instrumentality and that, on the date the governing body
of the City adopts or approves the proceedings authorizing the issuance of refunding bonds, 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 the governing body of the City adopts or approves the proceedings authorizing the issuance
of refunding bonds, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent and (iv) any securities and obligations now or
hereafter authorized by State law that are eligible to refund, retire or otherwise discharge
obligations such as the Certificates.
(e) Continuing Duty of Paying Agent/Registrar. Until all Certificates defeased under
this Section of this Ordinance shall become due and payable, the Paying Agent/Registrar for
such Certificates shall perform the services of Paying Agent/Registrar for such Certificates the
same as if they had not been defeased, and the City shall make proper arrangements to provide
and pay for such services.
Section 19. SALE OF CERTIFICATES; OFFICIAL STATEMENT. (a) The Certificates
shall be sold and delivered subject to the provisions of Section 1 and Section 2 hereof through a
negotiated sale and pursuant to the terms and provisions of a purchase contract (the "Purchase
Agreement"), the terms and provisions of which are to be determined by the Pricing Officer in
accordance with Section 2 hereof, and in which the purchaser or purchasers of the Certificates
(the "Underwriter") shall be designated. The Pricing Officer is hereby authorized to execute and
deliver the Purchase Agreement for an on behalf of the City. The Certificates shall initially be
registered in the name of the Underwriter or its designee.
(b) The City hereby approves the form and content of the draft preliminary official
statement relating to the Certificates in the form attached hereto as Exhibit D and any addenda,
supplement or amendment thereto, and approves the distribution of such preliminary official
statement in the reoffering of the Certificates by the Underwriter in final form, with such changes
therein or additions thereto as the Pricing Officer executing the same may deem advisable. The
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Pricing Officer is hereby authorized, in the name and on behalf of the City, to approve,
distribute, and deliver a final preliminary official statement and a final official statement relating
to the Certificates to be used by the Underwriter in the marketing of the Certificates.
(c) The Pricing Officer is authorized, in connection with effecting the sale of the
Certificates, to obtain from a municipal bond insurance company so designated in the Purchase
Agreement (the "Insurer") a municipal bond insurance policy (the "Insurance Policy") in support
of the Certificates. To that end, should the Pricing Officer exercise such authority and commit
the City to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in
effect, the requirements of the Insurer relating to the issuance of the Insurance Policy as set forth
in the Pricing Certificate are incorporated by reference into this Ordinance and made a part
hereof for all purposes, notwithstanding any other provision of this Ordinance to the contrary.
The Pricing Officer shall have the authority to execute any documents to effect the issuance of
the Insurance Policy by the Insurer.
(d) The Mayor and Mayor Pro Tem, the City Manager, the Executive Director of
Business Services and City Secretary, shall be and they 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 under the corporate seal and on
behalf of the City a Paying Agent/Registrar Agreement with the Paying Agent/Registrar and all
other instruments, whether or not herein mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Ordinance, the Pricing Certificate, the Certificates, the
sale of the Certificates, any Purchase Agreement and the Official Statement. In case any officer
whose signature shall appear on any Certificate shall cease to be such officer before the delivery
of such Certificate, such signature shall nevertheless be valid and sufficient for all purposes the
same as if such officer had remained in office until such delivery.
Section 20. FURTHER PROCEDURES. That the Mayor, the City Secretary, the City
Manager, the Executive Director of Business Services of the City, any Assistant City Manager,
and all other officers, employees, and agents of the City, and each of them, shall be and they 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
under the corporate seal and on behalf of the City all such instruments, whether or not herein
mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this
Ordinance, and the sale and delivery of the Certificates and fixing all details in connection
therewith. The City Council hereby authorizes the payment of the fee of the Office of the
Attorney General of the State of Texas for the examination of the proceedings relating to the
issuance of the Certificates, in the amount determined in accordance with the provisions of
Section 1202.004, Texas Government Code.
Section 21. CONSTRUCTION FUND; USE OF PROCEEDS.
(a) The City hereby creates and establishes and shall maintain on the books of the
City a separate fund to be entitled the "Series 2012 Certificates of Obligation Construction Fund"
(the "Construction Fund") for use by the City for payment of all lawful costs associated with the
acquisition and construction of the projects as provided in Section 1.
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(b) The proceeds from the sale of the Certificates shall be deposited, on the date of
closing, in the manner described in a letter of instructions prepared by the City or on behalf of
the City by the City's financial advisor. The foregoing notwithstanding, proceeds representing
accrued interest on the Certificates shall be deposited to the credit of the Interest and Sinking
Fund. Any amounts remaining after completion of the improvements described in Section 1
hereof shall be transferred FIRST to the Rebate Fund, to the extent required by Section 11
hereof, and THEREAFTER to the Interest and Sinking Fund.
Section 22. INTEREST EARNINGS. That the interest earnings derived from the
investment of proceeds from the sale of the Certificates may be used along with other proceeds
for the construction of the permanent improvements set forth in Section 1 hereof for which the
Certificates are issued; provided that after completion of such permanent improvements, if any of
such interest earnings remain on hand, such interest earnings shall be deposited in the Interest
and Sinking Fund. It is further provided, however, that any interest earnings on proceeds which
are required to be rebated to the United States of America pursuant to this Ordinance hereof in
order to prevent the Certificates from being arbitrage bonds shall be so rebated and not
considered as interest earnings for the purposes of this Section.
Section 23. DEFAULT AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of
this Ordinance is hereby declared to be an Event of Default:
(i) the failure to make payment of the principal of or interest on any of the
Certificates when the same becomes due and payable; or
(ii) default in the performance or observance of any other covenant,
agreement or obligation of the City, the failure to perform which materially, adversely
affects the rights of the registered owners of the Certificates, including, but not limited to,
their prospect or ability to be repaid in accordance with this Ordinance, and the
continuation thereof for a period of 60 days after notice of such default is given by any
registered owner to the City.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any
registered owner or an authorized representative thereof, including, but not limited to, a
trustee or trustees therefor, may proceed against the City, or any official, officer or
employee of the City in their official capacity, for the purpose of protecting and enforcing
the rights of the registered owners under this Ordinance, by mandamus or other suit,
action or special proceeding in equity or at law, in any court of competent jurisdiction,
for any relief permitted by law, including the specific performance of any covenant or
agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or
in violation of any right of the registered owners hereunder or any combination of such
remedies.
(ii) It is provided that all such proceedings shall be instituted and maintained
for the equal benefit of all registered owners of Certificates then outstanding.
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(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be cumulative
and shall be in addition to every other remedy given hereunder or under the Certificates
or now or hereafter existing at law or in equity; provided, however, that notwithstanding
any other provision of this Ordinance, the right to accelerate the debt evidenced by the
Certificates shall not be available as a remedy under this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be
deemed a waiver of any other available remedy.
(iii) By accepting the delivery of a Certificate authorized under this Ordinance,
such registered owner agrees that the certifications required to effectuate any covenants
or representations contained in this Ordinance do not and shall never constitute or give
rise to a personal or pecuniary liability or charge against the officers, employees or
members of the City or the City Council.
(iv) None of the members of the City Council, nor any other official or officer,
agent, or employee of the City, shall be charged personally by the registered owners with
any liability, or be held personally liable to the registered owners under any term or
provision of this Ordinance, or because of any Event of Default or alleged Event of
Default under this Ordinance.
Section 24. MISCELLANEOUS PROVISIONS. (a) Preamble. The preamble to this
Ordinance is incorporated by reference and made a part hereof for all purposes.
(b) Titles Not Restrictive. That the titles assigned to the various sections of this
Ordinance are for convenience only and shall not be considered restrictive of the subject matter
of any section or of any part of this Ordinance.
(c) Rules of Construction. The words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Ordinance as a whole and not to any particular section or
other subdivision. Except where the context otherwise requires, terms defined in this Ordinance
to impart the singular number shall be considered to include the plural number and vice versa.
References to any named person means that party and its successors and assigns. References to
any constitutional, statutory or regulatory provision means such provision as it exists on the date
this Ordinance is adopted by the City and any future amendments thereto or successor provisions
thereof. Any reference to "FORM OF CERTIFICATE" shall refer to the form of the Certificates
set forth in Exhibit A to this Ordinance. Any reference to the payment of principal in this
Ordinance shall be deemed to include the payment of any mandatory sinking fund redemption
payments as may be described herein.
(d) Inconsistent Provisions. All ordinances, orders and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed
and declared to be inapplicable, and the provisions of this Ordinance shall be and remain
controlling as to the matters prescribed herein.
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(e) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or
provision of this Ordinance or the application thereof to any person or circumstance shall be held
to be invalid, the remainder of this Ordinance shall nevertheless be valid and the City hereby
declares that this Ordinance would have been enacted without such invalid word, phrase, clause,
paragraph, sentence, part, portion, or provisions.
(f) Governing Law. This Ordinance shall be construed and enforced in accordance
with the laws of the State of Texas.
(g) Open Meeting. The City officially finds and determines that the meeting at which
this Ordinance is adopted was open to the public; and that public notice of the time, place, and
purpose of such meeting was given, all as required by Chapter 551, Texas Government Code.
(h) Application of Chapter 1208, Government Code. Chapter 1208, Texas
Government Code, applies to the issuance of the Certificates and the pledge of ad valorem taxes
and the Surplus Revenues granted by the City under Sections 6 and 7, and such pledge is
therefore valid, effective, and perfected. If Texas law is amended at any time while the
Certificates are outstanding and unpaid such that the pledge of the ad valorem taxes and Surplus
Revenues granted by the City is to be subject to the filing requirements of Chapter 9, Texas
Business & Commerce Code, then in order to preserve to the Registered Owners of the
Certificates the perfection of the security interest in said pledge, the City agrees to take such
measures as it determines are reasonable and necessary under Texas law to comply with the
applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing to
perfect the security interest in said pledge to occur.
(i) Immediate Effect. In accordance with the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall be effective immediately upon its adoption by the City
Council.
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Ordinance
City of College Station, Texas
Certificates of Obligation, Series 2012
SIGNATURE PAGE
PASSED, APPROVED AND EFFECTIVE THIS ________________, 2012.
City Secretary, City of College Station, Texas Mayor, City of College Station, Texas
(CITY SEAL)
APPROVED:
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
Bond Counsel
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A-1
EXHIBIT A
FORM OF CERTIFICATE
NO. _____ UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
CERTIFICATES OF OBLIGATION
SERIES 2012
$___________
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
% ________, 2012
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF COLLEGE
STATION, TEXAS, in Brazos County (the "City"), being a political subdivision of the State of
Texas, hereby promises to pay to _____________, or to the registered assignee hereof (either
being hereinafter called the "registered owner") the principal amount of
________________________ DOLLARS
and to pay interest thereon (calculated on the basis of a 360-day year of twelve 30-day months),
from the Original Issue Date specified above, to the Maturity Date specified above, or the date of
its redemption prior to scheduled maturity, at the interest rate per annum specified above, with
said interest payable on _________, 2012, and semiannually on each August 15 and February 15
thereafter until maturity or prior redemption; except that if this Certificate is required to be
authenticated and the date of its authentication is later than February 15, 2012, such interest is
payable semiannually on each August 15 and February 15 following such date.
THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money
of the United States of America, without exchange or collection charges. At maturity or
redemption prior to maturity, the principal of this Certificate shall be paid to the registered owner
hereof upon presentation and surrender of this Certificate at the designated corporate trust office
in Dallas, Texas (the "Designated Trust Office") of The Bank of New York Mellon Trust
Company, N.A., which is the "Paying Agent/Registrar" for this Certificate. The payment of
interest on this Certificate shall be made by the Paying Agent/Registrar to the registered owner
hereof on each interest payment date by check, dated as of such interest payment date, drawn by
the Paying Agent/Registrar on, and payable solely from, funds of the City required by the
ordinance authorizing the issuance of this Certificate (the "Certificate Ordinance") to be on
deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such
check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage
prepaid, on each such interest payment date, to the registered owner hereof, at its address as it
appeared on the last business day of the month preceding each such date (the "Record Date") on
the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. Any
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accrued interest due at maturity as provided herein shall be paid to the registered owner upon
presentation and surrender of this Certificate for payment at the Designated Trust Office of the
Paying Agent/Registrar. The City covenants with the registered owner of this Certificate that on
or before each principal and interest payment date for this Certificate it will make available to the
Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Certificate
Ordinance, the amounts required to provide for the payment, in immediately available funds, of
all principal of and interest on the Certificates, when due.
IN THE EVENT OF NON-PAYMENT of interest on a scheduled payment date, and for
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 ("Special Payment Date", which shall be 15 days after the
Special Record Date) shall be sent at least five business days prior to the Special Record Date by
United States mail, first-class postage prepaid, to the address of each registered owner of a
Certificate appearing on the Registration Books kept by the Paying Agent/Registrar at the close
of business on the last business day next preceding the date of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Certificate shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Designated Trust 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 on which 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 a Series of Certificates dated as of ________, 2012,
authorized in accordance with the Constitution and laws of the State of Texas in the principal
amount of $_________, for the purpose of paying contractual obligations to be incurred by the
City, to-wit, the construction of improvements as described in the Certificate Ordinance, and the
payment of fiscal, engineering and legal fees incurred in connection therewith.
ON FEBRUARY 15, ____, or on any date thereafter, the Certificates of this Series
maturing on February 15, ____ and thereafter may be redeemed prior to their scheduled
maturities, at the option of the City, in whole, or in part, at par and accrued interest to the date
fixed for redemption. The years of maturity of the Certificates called for redemption at the
option of the City prior to stated maturity shall be selected by the City. The Certificates or
portions thereof redeemed within a maturity shall be selected by lot or other method by the
Paying Agent/Registrar; provided, that during any period in which ownership of the Certificates
is determined only by a book entry at a securities depository for the Certificates, if fewer than all
of the Certificates of the same maturity and bearing the same interest rate are to be redeemed, the
particular Certificates of such maturity and bearing such interest rate shall be selected in
accordance with the arrangements between the City and the securities depository.
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AT LEAST 30 days prior to the date fixed for any such redemption, a written notice of
such redemption shall be given to the registered owner of each Certificate or a portion thereof
being called for redemption by depositing such notice in the United States mail, first-class
postage prepaid, addressed to each such registered owner at his address shown on the
Registration Books of the Paying Agent/Registrar. By the date fixed for any such redemption
due provision shall be made by the City with the Paying Agent/Registrar for the payment of the
required redemption price for this Certificate or the portion hereof which is to be so redeemed,
plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is
given, and if due provision for such payment is made, all as provided above, this Certificate, or
the portion hereof which is to be so redeemed, thereby automatically shall be redeemed prior to
its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall
not be regarded as being outstanding except for the right of the registered owner to receive the
redemption price plus accrued interest to the date fixed for redemption from the Paying
Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of principal of this Certificate or any
portion hereof. If a portion of any Certificate shall be redeemed a substitute Certificate or
Certificates having the same maturity date, bearing interest at the same rate, in any denomination
or denominations in Authorized Denominations, at the written request of the registered owner,
and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the
registered owner upon the surrender thereof for cancellation, at the expense of the City, all as
provided in the Ordinance.
ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered
certificates, without interest coupons, in Authorized Denominations. As provided in the
Certificate Ordinance, this Certificate may, at the request of the registered owner or the assignee
or assignees hereof, be assigned, transferred, and exchanged for a like aggregate principal
amount of fully registered certificates, without interest coupons, payable to the appropriate
registered owner, assignee, or assignees, as the case may be, having the same maturity date, and
bearing interest at the same rate, in Authorized Denominations as requested in writing by the
appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this
Certificate to the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in
accordance with the form and procedures set forth in the Certificate Ordinance. Among other
requirements for such assignment and transfer, this Certificate must be presented and
surrendered to the Paying Agent/Registrar at its Designated Trust Office, together with proper
instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying
Agent/Registrar, evidencing assignment of this Certificate or any portion or portions hereof in an
Authorized Denomination to the assignee or assignees in whose name or names this Certificate
or any such portion or portions hereof is or are to be transferred and registered. The form of
Assignment printed or endorsed on this Certificate may be executed by the registered owner to
evidence the assignment hereof, but such method is not exclusive, and other instruments of
assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of
this Certificate or any portion or portions hereof from time to time by the registered owner. The
foregoing notwithstanding, in the case of the exchange of an assigned and transferred Certificate
or Certificates or any portion or portions thereof, such fees and charges of the Paying
Agent/Registrar will be paid by the City. The one requesting such exchange shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and charges for exchanging any
Certificate or portion thereof. In any circumstance, any taxes or governmental charges required
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to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, or
exchange as a condition precedent to the exercise of such privilege. In any circumstance, neither
the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days before the day of the first mailing
of a notice of redemption of Certificates and ending at the close of business on the day of such
mailing, or (2) to transfer or exchange any Certificates so selected for redemption when such
redemption is scheduled to occur within 45 calendar days.
WHENEVER the beneficial ownership of this Certificate is determined by a book entry
at a securities depository for the Certificates, the foregoing requirements of holding, delivering
or transferring this Certificate shall be modified to require the appropriate person or entity to
meet the requirements of the securities depository as to registering or transferring the book entry
to produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Certificates is changed by the City,
resigns, or otherwise ceases to act as such, the City has covenanted in the Certificate Ordinance
that it promptly will appoint a competent and legally qualified substitute therefor, and promptly
will cause written notice thereof to be mailed to the registered owners of the Certificates.
IT IS HEREBY certified, recited and covenanted that this Certificate has been duly and
validly authorized, issued, and delivered; that all acts, conditions, and things required or proper
to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of
this Certificate have been performed, existed, and been done in accordance with law; that this
Certificate is a direct obligation of said City, issued on the full faith and credit thereof; and that
in accordance with the terms of the Certificate Ordinance, annual ad valorem taxes sufficient to
provide for the payment of the interest on and principal of this Certificate, as such interest comes
due and such principal matures, have been levied and ordered to be levied against all taxable
property in said City, and have been pledged for such payment, within the limit prescribed by
law; and that a limited pledge (not to exceed $1,000) of the Surplus Revenues from the operation
of the City's combined municipal electric light and power, waterworks and sewer system
remaining after payment of all operation and maintenance expenses thereof and any other
obligations heretofore or hereafter incurred to which such revenues have been or shall be
encumbered by a lien on and pledge of such revenues superior to the lien on and pledge of such
revenues to the Certificates, have been pledged as additional security for the Certificates.
BY BECOMING the registered owner of this Certificate, the registered owner thereby
acknowledges all of the terms and provisions of the Certificate Ordinance, agrees to be bound by
such terms and provisions, acknowledges that the Certificate Ordinance is duly recorded and
available for inspection in the official minutes and records of the City, and agrees that the terms
and provisions of this Certificate and the Certificate Ordinance constitute a contract between
each registered owner hereof and the City.
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IN WITNESS WHEREOF, this Certificate has been signed with the manual or facsimile
signature of the Mayor of the City, attested by the manual or facsimile signature of the City
Secretary, and the official seal of the City has been duly affixed to, or impressed, or placed in
facsimile, on this Certificate.
xxxxx xxxxx
City Secretary, City of College Station, Texas Mayor, City of College Station, Texas
(SEAL)
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FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate of Obligation has been issued under the
provisions of the proceedings adopted by the City as described in the text of this Certificate of
Obligation; and that this Certificate of Obligation has been issued in exchange for or replacement
of a Certificate of Obligation of an issue which originally was approved by the Attorney General
of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Dated: _______________ The Bank of New York Mellon
Trust Company, N.A.
Paying Agent/Registrar
By:
Authorized Representative
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*FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE CERTIFICATES UPON INITIAL DELIVERY THEREOF
COMPTROLLER'S CERTIFICATE
OFFICE OF COMPTROLLER §
REGISTER NO. ________
STATE OF TEXAS §
I hereby certify that there is on file and of record in my office a certificate of the Attorney
General of the State of Texas to the effect that this Certificate has been examined by him as
required by law, and that he finds that it has been issued in conformity with the Constitution and
laws of the State of Texas, and that it is a valid and binding obligation of the City of College
Station, Texas, payable in the manner provided by and in the ordinance authorizing same, and
said Certificate has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas this ___________________.
__________________________________________
Comptroller of Public Accounts of
the State of Texas
(SEAL)
NOTE: *to accompany initial certificates only.
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FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto:
Please insert Social Security or Taxpayer Identification Number of Transferee
Please print or type name and address, including zip code of Transferee
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints:
____________________________________, attorney, to register the transfer of the within
Certificate on the books kept for registration thereof, with full power of substitution in the
premises.
Dated: __________________.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed
by an eligible guarantor institution
participating in a securities transfer
association recognized signature guarantee
program.
NOTICE: The signature above must
correspond with the name of the registered
owner as it appears upon the front of this
Certificate in every particular, without
alteration or enlargement or any change
whatsoever.
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EXHIBIT B
PROCEDURES REGARDING COMPLIANCE WITH FEDERAL TAX AND
CONTINUING DISCLOSURE COVENANTS
This Exhibit is intended to assist the City of College Station (the "City") in complying
with the federal income tax covenants and securities disclosure covenants as they apply to the
issuance of tax-exempt debt securities such as the Certificates of Obligation (the "Obligations").
These procedures should be read together with any federal tax certifications, bond covenants,
letters or memoranda from bond counsel and any attachments thereto (collectively, the "Closing
Documents"). Failure to comply with federal guidelines could have serious consequences for
investors, the City and its officials.
These procedures shall apply to the Obligations, until they are superseded by a change in
circumstances at which time the City's bond counsel will propose new procedures to be adopted.
I. FEDERAL TAX LAW
1. Arbitrage Compliance.
Arbitrage refers to the difference between the interest paid on tax-exempt Obligations and
the interest earned by investing the proceeds of tax-exempt Obligations in higher-yielding
investments. Such higher-yielding investments could take the form of loans, securities, real
property, personal property, or other investments that could yield a profit to the City. Federal
income tax laws generally restrict the ability to earn arbitrage utilizing the proceeds of tax-
exempt Obligations. Generally, any profit from investing Obligation proceeds at a yield above
the yield paid on the Obligations belongs to the federal government and must be rebated to the
federal government. If the City fails to comply federal tax guidelines, Obligations could be
deemed to be “arbitrage bonds” by the Internal Revenue Service (the “IRS”), which would
expose the City to monetary liability from the City’s investors.
The arbitrage yield on the Obligations is set forth on the IRS Form 8038-G.
The Executive Director of Business Services and the City Treasurer (including such other
employees of the City who report to such officers) (collectively, the "Responsible Person") will
review the Closing Documents periodically (at least once a year) to ascertain if an exception to
arbitrage compliance applies.
a. Procedures applicable to the Obligation. The Responsible Person shall undertake
the following procedures.
i. If the City plans to spend funds currently on hand for a future project with
the intent to later repay such funds from a debt issue, the Responsible
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Person shall contact Bond Counsel to obtain advice regarding a
reimbursement resolution. The Responsible Person shall maintain any
official action of the City (such as a reimbursement resolution) stating the
City's intent to reimburse with the proceeds of the Obligations any amount
expended prior to the Issue Date for the acquisition, renovation or
construction of the Project.
ii. The Responsible Person shall ensure that the applicable information return
(e.g., U.S. Internal Revenue Service ("IRS") Form 8038-G, 8038-GC, or
any successor forms) is timely filed with the IRS.
iii. If proceeds of the Obligations are to be invested in interest-earning
investments, assure that, unless excepted from rebate and yield restriction
under section 148(f) of the Code, excess investment earnings are
computed and paid to the U.S. government at such time and in such
manner as directed by the IRS (i) at least every 5 years after the Issue Date
and (ii) within 30 days after the date the Obligations are retired. If
proceeds of the Obligations are to be invested in interest-earning
investments, the Responsible Person should contact the City's arbitrage
consultant regarding such matters.
iv. The Responsible Person shall monitor all amounts deposited into a sinking
fund or funds pledged (directly or indirectly) to the payment of the
Obligations, such as the Interest and Sinking Fund (the "I&S Fund"), to
assure that the maximum amount invested within such applicable fund at a
yield higher than the yield on the Obligations does not exceed an amount
equal to the debt service on the Obligations in the succeeding 12 month
period plus a carryover amount equal to one-twelfth of the principal and
interest payable on the Obligations for the immediately preceding 12-
month period.
NOTE: the purpose of the I&S Fund is to achieve a proper
matching of revenues with principal and interest payments within
each fiscal year. The I&S Fund should be used a mechanism for
payment of current debt service and not as a long-term investment
fund for debt service many years in the future.
v. The Responsible Person shall ensure that no more than 50% of the
proceeds of the Obligations are invested in an investment with a
guaranteed yield for 4 years or more.
b. With respect to the investment and expenditure of the proceeds of the Obligations
that are issued to finance public improvements or to acquire land or personal
property, the Responsible Person shall undertake the following.
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i. The Responsible Person shall instruct the persons who are primarily
responsible for the construction, renovation or acquisition of the facilities
financed with Obligations (the “Project”) that the Project must (i) proceed
with due diligence toward completion and that (ii) binding contracts for
the expenditure of at least 5% of the proceeds of the Obligations will be
entered into within six (6) months of the date of closing of the Obligations
(the “Issue Date”). The Responsible Person shall monitor that the above
requirements are satisfied.
ii. The Responsible Person shall monitor that at least 85% of the proceeds of
the Obligations to be used for the construction, renovation or acquisition
of the Project are expended within three years of the Issue Date.
iii. The Responsible Person shall monitor investment of proceeds of the
Obligations and restrict the yield of the investments to the yield on the
Obligations after three years of the Issue Date.
iv. To the extent that there are any unspent proceeds of the Obligations at the
time the Obligations are later refunded, or if there are unspent proceeds of
the Obligations that are being refunded by a new issuance of Obligations,
the Responsible Person shall continue monitoring the expenditure of such
unspent proceeds to ensure compliance with federal tax law with respect
to both the refunded Obligations and any Obligations being issued for
refunding purposes, and shall contact Bond Counsel as necessary.
B. Private Business Use.
Generally, the proceeds of tax-exempt Obligations may not inure to the benefit of entities
other than state or local governments (“private business use”). Private business use occurs
whenever Obligation proceeds are used to benefit any entity other than a state or local
government, including nonprofit corporations and the federal government.
A series of Obligations may lose their tax-exempt status if: (i) more than 10% of the
proceeds of the Obligations are to be used for any private business use and the payment of the
principal or interest on more than 10% of the proceeds of the Obligations is secured by or
payable from property used for a private business use, or (ii) the amount of proceeds of the
Obligations used to make loans to borrowers other than state and local governments exceeds the
lesser of 5% of the proceeds or $15 million.
With respect to the use of the facilities financed or refinanced with the proceeds of the
Obligations, the Responsible Person shall undertake the following to ensure the Obligations do
not violate private business use tests.
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a. The Responsible Person shall develop procedures or a “tracking system” to
identify, log and record all property financed with tax-exempt debt and identify
the issue of Obligations used to finance such property.
b. The Responsible Person shall monitor and record the date on which the Project is
substantially complete and available to be used for the purpose intended.
c. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has any contractual
right (such as a lease, research contract, naming rights agreement, purchase
contract, management agreement or other service agreement) with respect to any
portion of the Project.
d. Before entering into any private business use arrangement that involves the use of
the Project, the Responsible Person must obtain a description of the proposed
private business use arrangement and determine whether such arrangement, if put
into effect, will be consistent with the restrictions on private business use of the
Project. In connection with the evaluation of any proposed private business use
arrangement, the Responsible Person should consult with Bond Counsel to
discuss whether such arrangement, if put into effect, will be consistent with the
restrictions on private business use of the Project, and, if not, whether any
“remedial action” permitted under federal guidelines may be taken as a means of
enabling such private business use without adversely affecting the tax-exempt
status of the Obligations.
e. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has a right to use the
output of the Project (e.g., water, gas, electricity, capacity) on any basis other than
standard rates and charges.
f. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, has a naming right
for the Project or any other contractual right granting an intangible benefit.
g. Prior to any sale of property owned by the City (real or personal), the Responsible
Person must confirm whether such property was financed with tax-exempt debt,
and if so, determine whether the proposed disposition of the property could
impact the tax-exempt status of the series of Obligations that financed the
acquisition of such property.
h. The Responsible Person shall take any action necessary to remediate any failure
to maintain compliance with the covenants contained in the ordinance authorizing
the issuance of the applicable series of Obligations.
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C. Record Retention.
The Responsible Person will maintain or cause to be maintained all records relating to the
investment and expenditure of the proceeds of the Obligations and the use of the Project financed
or refinanced thereby for a period ending three (3) years after the complete extinguishment of the
Obligations. If any portion of the Obligations is refunded with the proceeds of another series of
Obligations, such records shall be maintained until the three (3) years after the refunding
Obligations mature or are otherwise paid off. Such records can be maintained in paper or
electronic format.
For purposes of these procedures, the Memorandum of Bond Counsel dated December 1,
2011 styled "Certain Federal Income Tax Considerations for Record Retention – Record
Management Program and Periodic Compliance Review" in incorporated herein and should be
reviewed periodically, at least once per year, by the Responsible Person.
D. Responsible Person & Continuity.
Each Responsible Person shall receive appropriate training regarding the City’s
accounting system, contract intake system, facilities management and other systems necessary to
track the investment and expenditure of the proceeds and the use of the facilities financed with
the proceeds of the Obligations. The foregoing notwithstanding, the Responsible Person is
authorized and instructed to retain such experienced advisors and agents as may be necessary to
carry out the purposes of these instructions.
Prior to cessation of employment with the City, the Responsible Person should identify
their successor to maintain compliance with these procedures.
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II. FEDERAL SECURITIES LAW
Obligations, whether taxable or tax-exempt, sold in a public offering in an amount of
$1 million or more are subject to Rule 15c2-12 (the “Rule”) of the United States Securities and
Exchange Commission (the “SEC”). Additionally, the City may have covenanted to comply
with the Rule even with respect to Obligations that would otherwise be exempt from the Rule
(e.g., Obligations sold in a private placement or Obligations sold in an amount less than
$1 million). Pursuant to the Rule, the City is required to make annual filings of certain
information, as well as make filings upon the occurrence of certain specified events. All filings
must be made with the Municipal Securities Rulemaking Board (the “MSRB”) through its
Electronic Municipal Market Access System (“EMMA”) at emma.msrb.org.
A. Annual Filings.
The City must file the information listed below with EMMA within six (6) months of
each fiscal year end for so long as the respective series of Obligations remains outstanding. The
City’s fiscal year ends on September 30 of each year. Therefore, the City must provide updated
information by March 31 of the subsequent year. If audited financial statements are not available
by February 28, the City must provide unaudited financial information by such date and provide
audited financial statements when such statements become available. The City must file each of
the following items with EMMA:
(1) The City’s audited financial statements; and
(2) An update of the financial tables included in the Official Statement used in
connection with the Obligations as described under the caption "Continuing
Disclosure of Information". The information should be from the most recent
fiscal year end.
The Responsible Person must compile, prepare and make such filings within the required
time, or, alternatively, contract with a third-party, such as the City’s financial advisor, to make
such filings on the City’s behalf.
B. Notices of Specified Events.
The City must provide notice of any of the following events with respect to the
Obligations to the MSRB in a timely manner (but not in excess of ten business days after the
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;
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(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the IRS 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 Obligations, or other
material events affecting the tax status of the Obligations;
(7) Modifications to rights of Obligation holders, if material;
(8) Obligations calls (includes redemptions and other early payments), if material,
and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Obligations, if
material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership or similar event of the City;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material;
(14) Appointment of a successor or additional paying agent or the change of name of a
paying agent, if material; and
(15) In a timely manner, notice of a failure of the City to make the required annual
filings listed in Subsection II(A) above.
The Responsible Person should review this list at regular intervals to determine whether
any event has occurred that may require a filing with EMMA.
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EXHIBIT C
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 17 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified below (and included in the Appendix
or under the headings of the Official Statement referred to):
1. The "Annual Financial Report" for the most recently concluded fiscal year.
2. The information included in the Official Statement under the following tables, but
for the most recently concluded fiscal year: Tables 1 through 6, 8 through 20.
Accounting Principles
The accounting principles referred to in such Section are the accounting principles
described in the notes to the financial statements referred to in paragraph 1 described above, as
such principles may be changed from time to time to comply with state law or regulation.
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EXHIBIT D
PRELIMINARY OFFICIAL STATEMENT
297
Certificates of Obligation
Utility Certificates of Obligation Amount
Electric
General Plant 980,000$
Overhead System Improvements 1,050,000
Underground System Improvements 750,000
New Services and System Extensions 1,475,000
Residential Street Lighting 60,000
Thoroughfare Street Lighting 132,000
Distribution System Improvements 1,853,000
Transmission System Improvements 1,700,000
Electric Projects Total 8,000,000$
Water Projects
Dowling Road High Service Water Pump Improvements 3,000,000$
Water Projects Total 3,000,000$
Wastewater
Bee Creek Parallel Trunk Line 550,000$
Royder/Live Oak Sewer Ext (FM 2154)500,000
South Knoll/The Glade Rehabilitation 1,600,000
Carter Creek Headworks Improvements 1,500,000
Lick Creek Centrifuge Replacement 1,100,000
Carter Creek Lab and SCADA Building 750,000
Wastewater Projects Total 6,000,000$
Utility Certificates of Obligation Subtotal 17,000,000$
Estimated Debt Issuance Costs *300,000$
Certificates of Obligation Total 17,300,000$
* This is 0.59% of the total bond issue and refunding
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