HomeMy Public PortalAboutResolution No. 015-59 11-20-1959 THI STATE OF TEXAS t
COUNTY OF TARRANT
WHRAkA:1, the water and sewer systems of the Toni of Rich-
aidn dills have long been owned and operated by private interests; and
WHERLA.3, it is the belief of this body that such systems
should be operated by a ;,ublio agency sponsored 'oy the Town of Rich-
land Bills in coopetru.4on with other corporate municipalities within
which the system is situate, to-wit► North Richland hills, Azle
and lakeside village; uhd
WHjiA.b, the Tots or Richland hills now haw► the opportunity
to acquire such system, cx substantial portionir t;hervof as hereinafter
shown, without cost t' the City and without leyti~yin of taus or the
assumption of any obligation or 1iUti.lity of any land, for such
acquisi tion j
NOW, THEREFORE, $S IT EitiOLVED BY THU , 1TY COLT ic' , OF TKE TOW* OF
RICHL ND HILLS:
1. That the Coun. it dettgnate and delegate full authority
to Foe Greenough GibQo11 in coc:prration
with the Mayor, and ir 000perstion tend wnZunct4on with tt :.,i,i.e number
of similar representatives t'rom Vort:h Liohlaand bills, Asln and
L4Jceeide Villages with similar authority, to negotiate for U
a4lquieition of the eater and aewev. systems through the Impluruntation
wui use of a non-profit corporation to tit known as Tarrant Comty
water Supply Corporation, and doom hereby designate and auttrnrlse
tie said J e g eenoug a �.�,..... ui:d George Gibson . . ...�
to become stooaio.t.dutt and di.:a' t.oru of sold a orporation ah mquir d
� by statute; provided that (1) such negotiations are carried on
f u-pon the advice arid content of Reaves and Gregory Engineers,
W:.L,,►c fees shall be conditioned to Ice paid (a) by said Tarrant
County water Supply Cotpor&i.ior, if said z-orporation does acquire
said water and sewer syotem, and (b) by Tarrant Utility Company,
present owners of the property, if said system is nut so acquired, and
(c,) that said Engineers and the partLe.q herein designated acting with
„2 llai• represents tivea from the other t;arms herein named agree .&p n
such fee; and further provided that the repzeentat' vea Herein
4calJ.ated aot in awLJunctivn with the rsa:de number of representatives
the other towns herein named and in such negotiations act in for,
a is de fa._.tp board of Director* of said corporation, of which the
lu,JorU vt each toga: may of ex-otficiu members., and all acts be d.t;e:rlain-
ed by majority vote of then m•tncera of ea,�•.h der facto board; and still
ca
further conditioned and prvvidgrd that:
(a) Tarrant Util.it,y Company agrees in writing to the
condition• herein Lgx..aed with refex'en'•e to Esu,ineere fees:
(b) All debt Incurred by such non-profit corporation
shall to payable from revenues only;
(a) The Teem of Richland Hills will not be directly or
.::directly obligated to iota any of such debt or tun.y expense whatsoever
or nowsoever incurred in connection with zald non-profit- corporation;
(d) Jo tuxes shall eve;. be levied for the payment of
Fty Such debt :
(e j At such time as such debt is paid all asserts of the
non profit corporation loQ.ated within ;:he loan of Richland Hills shall
becorse the property of such City; and further provided that all other
aoset:s of said corporation of every kind, specifically including, but
not limited to, cash, invested funds or the evidences thereof, notes,
aL.c:ountzs, choaes to action, and all physical properties, real,
p e raonal or mixed, shall be ,>r o rated to the cities and towns herein
named participating herein and transacting buslricacrs with said
corporation, based on an equitable formula to be determined by
s:o np' tent' engineers, which formula shall primarily consider and be in
ai re t proportion to the amount :af business zro c rri&m3a< ted and the
number of water and sewer Laps within the limitz,' of ea-,.h such tom
and city;
(i) The Town of Richland Rills shall always be represented
in the management of such non-prpfit corporation by raving residents
of tile Town of Rio,hlend 1t:lllss lib members of the board of Directors
of auch corporation. There snail always be as soc.1 members of the
lard of Directors as Zany i :sidcnta of tht 'r'owr. of Richland Rill,.
as ti:ere urr, see r, fr ca any other ,:ity; and the by-Laws shall
provide that in order to const.ituty a quorum of the Directors there shall
be ;;,resent, in addition to Le.4 requisitt number, one member from
each city p►rrticipetiry, herein. Any- vacancy in t.ht board of Directors
f.cv1 ►; city shall be filled by the City Counoll of the City where
';hc• ..actIncy Occurs.
(b) That no dividends shall aver be paid upon the sto:.k of
.:aid non-profit .;orporation, apd that all prof is *rising from the
cptAlttor of such businotu shall be annually paid out to the cities
rumw
and towns whi.th have during, tht past year t rvsr,uaetced business with
said non-profit c; rporatirn i.n direct proportion to the amount of
buainesa no transacted; provided, nevertheless, that such payment
shall to subject tc the exclusive judgumt and discretion of the board
of Directors in their n a►na ,uaen t, and control of said co rpo rat ion, of to r
taking; into consideration all ;;ash as well as cash reserve require-
ments of the corporation; and provided that no such profits shall ever
be paid out to any such city or town while any indebtedness of the
corporation remains unpaid; and provided also that the Board of
Directors of such oorpo rat ion shall allocates to a sinK1ng fund such
amount as shall be required to Wrest principal and interest payments
en all bonds, and such add:itionbl amount of the annual profits as the
board of Directors say deeds necessary for maintenance, up-keep,
operation, replacement, butters ants and expansion;
(h) Ho salary or other ::oapensatinn shall ever be paid
to the officers or directors of such non-profit corporation excerpt such
[ as pay be authorised by statute:
(1) This resolution is subject to and conditioned upon
!forth Richland Rills, Azle and Lakeside Village adopting a similar
resolution, and subject to all the conditions herein contained.
2. All negotiations, Investigations, appraisa►lr+ and
valuations, corporate establishment and structure , contracts, finar.cing,
including issuance and Tale of exclusively dorrov*te revenue bonds,
establishment of tax exempt stetuto of said non-profit cozporattion,
if the negotiations reach such stages based upon the advise of
Y 40. tieecr s but upon the final exclusive determination of the de facto
borxre herein provided for, than be condus;tect through and in cooperation
with the E. Kelly gown Investment Coapan.,y of Dallas, Texas, it
being clearly understood that all expense& neretofere entailed or
that may be hereafter incurred by the U . Kelly Brown investment Co.
shall never be charLeable to the Win of Eichlax+, (fills.
It is understood that the I. Kelly brows Investment Co.
will provide a syndicate of investment bankers Who will anderwrite
and purchase the bonds of said Corporation and the L. Kelly Brown
Investment Company may participate in any underwriting which shalt
its sole source or reimbursement for the arovosed service and t
reirabctraecaent of all aspens* involved, inaludir , legal, engineerink
printing bonds, traavax expunge, preparation of —.1.4uieents and other
incidental expunge, none of which shall ever be �.•1iargoable against
the ?own of Richland Hills; and provided that all ultirsate and
final decisions on all matters shall be aide by the de facto Board
of Directors herein provided for.
3. That the Mayor shall keep the Cit. Council advised
of the progreau of such ne ,otiations.
AMP= MD ARRPCI ED this the G day of
City 3wcrvtraay, Town of Richland Mills, Texas.
THE STATE 07 MZXAS
COUNTY OA i A*+.RANT
I, the undersigned, City Secretary of the Town of Richland
Rills, Texas, too hereby certify that the above and foregoing is
LA true, full and correct copy of a resolution adopted by the City
Council of the Town of Richland Rills, Texas, on the dayof Zint&244 - 1959, authorising the negotiations for the
acquisition of the water and sewer systems of said Town of M.iahland
Ifill.:, Texas, throw the implementation and use of Tarrant Count)
Water 4Upply Corporation, a non-prnf$t corporation, said resolution
being duly of record in the minutes of said City Council.
!YPCvan MEE IN HAND AND SEAL ur said City, tn. e
au., ofhr,
rs o �ltil?s,
Texas
tWL)
•