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HomeMy WebLinkAbout1962-0352 - Ordinance - 07/20/1962ORDINANCE NO. 352 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $35,000 ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; MAKING PROVISION FOR THE PAYMENT OF THE PRINCIPAL THEREOF AND THE INTEREST THEREON; AWARDING THE SALE THEREOF; AND PROVIDING THAT THIS ORDINANCE SHALL TAIL; EFFECT FROM AND AFTER ITS PASSAGE. THE STATE OF TEXAS 0 ® COUNTY OF BRAZOS 0 The City Council of the City of College Station, Texas, convened in R, regular session at the City Hall within said City on the 20th day of July, 11962, with the following members present, to -wit: a Ernest Langford Mayor J. A. Orr Councilman W Carl W. Landiss Councilman U7 < D. A. Anderson Councilman LA A. L. Rosprim Councilman 0_ A. P. Boyett Councilman 66 K. A. Manning City Secretary OtOt and the following member absent, to -wit: Joe H. Sorrels, when the following, ® among other business was transacted: 0 OD The Mayor introduced an ordinance which was read in full. Councilman Anderson made a motion that the ordinance be adopted as read. Councilman Rosprim seconded the motion for adoption of the ordinance. The motion, carrying with it the adoption of the ordinance, prevailed by the following vote: X If AYES: Councilmen Orr, Landiss, Anderson, Rosprim, and Boyett. NOES: None The mayor requested that he be recorded as voting "Aye". The mayor thereupon announced that the motion had duly and lawfully car- ried, and that the ordinance had duly and lawfully been adopted. The ordi- nance thus adopted follows: AN ORDINANCE AUTHORIZING THE ISSUANCE OF $35,000 ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS; PRESCRIBING THE TERMS AND PROVISIONS THEREOF; MAKING PROVISION FOR THE PAYMENT OF THE PRINCIPAL THEREOF AND THE INTEREST THEREON; AWARDING THE SALE THEREOF; AND PROVIDING THAT THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS PASSAGE. 00837 WHEREAS, pursuant to an ordinance heretofore adopted and to an election held in the City of College Station, Texas, on the 1st day of December, 1954, revenue bonds in the amount of $300,000 have been authorized for the purpose of constructing improvements and extensions to the existing sanitary sewer system of said City, said bonds to be payable from and secured by a pledge of the net revenues from the operation of the electric light and power system of said City, and said bonds to mature serially within 30 years from their date or dates and to bear interest at a rate not to exceed 4% per annum; and WHEREAS, pursuant to ordinance adopted on the 25th day of January, 1955, by the City Council of said City, a portion and first installment of $265,000 bonds out of said total authorized bonds have been authorized, issued, sold and delivered, the bonds of the first installment being more particularly described as follows: Cb CITY OF COLLEGE STATION ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1955, dated February 1, 1955, numbered consecutively from 1 to 265, both inclusive, in the denomination of $1,000 each, aggregating $265,000, bearing interest per annum toZ at the following rates: 2-3/4%, 3%, and 3-1/4 %, and maturing serially on February 1st in each of the years 1956 to 1984, both inclusive, UJ which bonds were approved by the Attorney General of the State of Texas on 0- the 17th day of February, 1955, and registered by the Comptroller of Public 015 Accounts of the State of Texas on the same date under Registration Number 30184; and CL C) WHEREAS, the City Council has determined, and hereby affirmatively ® determines, that the remaining $35,000 bonds authorized at said election m should now be issued and sold; and WHEREAS, the City Council wishes to proceed with the issuance and sale of said remaining voted bonds; THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: Section 1: AMOUNT, NAME,PURPOSE AND AUTHORIZATION OF REVENUE BONDS: That the coupon revenue bonds of the City of College Station, Texas, be issued in the princi- pal amount of $35,000, to be known and designated as "CITY OF COLLEGE STATION. TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1962", for the purpose of constructing improvements and extensions to the City's existing sanitary sewer system (said bonds to be payable from and secured by a first lien on and pledge of the net revenues of the electric light and power system of said City, as hereafter provided in this ordinance), under and in strict conformity with the Constitution and laws of the State of Texas, particularly 00838 • BOORUM & PEASE Articles 1111 to 1118, both inclusive, Vernon's Texas Civil Statutes, as amended, and as authorized at the bond election held within said City on the 1st day of December, 1954 (the bonds hereby authorized constituting a portion • and the second and final installment out of a total of $300,000 bonds authorized at said election, $265,000 bonds out of said total authorized bonds having heretofore been issued). Section 2: 2.01 - DATE, NUMBERS, DENOMINATION AND MATURITIES: That said bonds shall be dated August 1, 1962, shall be numbered consecutively from 1 to 7, both in- clusive, in the denomination of $5,000 each, aggregating $35,000, and shall become due and payable serially in their numerical order on February 1st in each of the years as follows: BOND YEAR OF AMOUNT NUMBER MATURITY MATURING 1 1965 $5,000 2 1966 5,000 3 1967 5,000 4 1968 5,000 5 1969 5,000 6 1970 5,000 7 1971 5,000 ee 2.02 - OPTION OF PRIOR REDEMPTION: That the City of College Station expressly reserves the right to redeem, for refunding purposes only, all of the bonds fli of this issue then outstanding on anyinterest payment date, if the following conditions are met: cam. ti (a) All the bonds then outstanding payable from the net revenues of the U) waterworks system, sanitary sewer system, and/or electric light and power system,or from the net revenues of any combination of such systems, are to be refunded in accordance with then existing laws into one issue of bonds payable from the net revenues of the waterworks system, sanitary sewer system, and electric light and power system; and (b) Those bonds of the refunding bond issue which are to be exchanged ® for the bonds authorized by this ordinance bear the same interest rate or 0 rates and maturity date or dates as the underlying bonds to be so refunded and exchanged. If the conditions outlined in (a) and (b) are met, and notice of re- demption is given as provided hereafter in Section 2.03 of this ordinance, the holders or owners of any bond or bonds shall surrender the same and accept in lieu and exchange thereof a refunding bond or bonds authorized as above provided. 2.03 - NOTICE OF REDEMPTION: As to bonds redeemed under Section 2.02, notice 00839 thereof in writing shall be given to the bank at which said bonds are payable, and said notice shall be published at least one (1) time in a financial journal or publication published and of general circulation in the United States of America, which notice shall be mailed to said bank and published in said journal or publication at least thirty (30) days prior to the date fixed for redemption. When said bonds have been so called for redemption and notice thereof has been given as provided herein and due provision has been made to redeem the same, the right of the owners or holders to collect interest on said bonds which would otherwise accrue after the redemption date shall terminate as of the date fixed for redemption. Section 3: 3.01 - INTEREST RATES AND INTEREST PAYMENT DATES: That said bonds shall bear interest per annum at the following rates: Bonds Nos. 1 to 7, both incl., 2.90 %, (a interest payable February 1, 1963, and semi-annually thereafter on August 1st and February 1st in each year until the principal sum is paid. 3.02 - BANK OF PAYMENT AND MEDIUM OF PAYMENT: That both principal of and LTJ interest on said bonds shall be payable, without exchange or collection 01 charges to the owners or holders of said bonds and/or the interest coupons c.y appurtenant thereto, at the College Station State Bank, College Station, DJ CLTexas,in anycoin or currencywhich, on the respective dates of � p payment of such principal and interest, is legal tender for the payment of debts due the United States of America. The principal of said bonds shall be payable only upon presentation and surrender of said bonds as they respectively ( become due, and interest falling due on and prior to the respective maturity 0 dates of the bonds shall be payable only upon presentation and surrender of 0 the interest coupons attached to said bonds as such interest coupons severally aa become due. Section 4: EXECUTION OF BONDS AND INTEREST COUPONS: That each of said bonds shall be signed by the Mayor and countersigned by the City Secretary of said City, by their lithographed or printed facsimile signatures, and the facsimile of the corporate seal of said City shall be lithographed or printed upon each of said bonds. The interest coupons attached to said bonds shall also be executed by the lithographed or printed facsimile signatures of said Mayor and City Secretary. Said facsimile signatures on the bonds and interest coupons shall have the same effect as if each of said bonds had been signed manually and in person by each of such officers, and said facsimile seal on the bonds shall have the same effect as if the official seal of said City had been manually impressed upon each of said bonds. The registration certificate of the Comptroller of Public Accounts of the State of Texas, which certificate is to be printed on the back of each of said bonds as set forth hereafter in Section 7 of this ordinance, shall be manually duscribed, ff 11,100940 l ,n �4 z BOORUM & PEASE and the official seal of said Comptroller shall be manually impressed thereon. Section 5: FORM OF BONDS: That said bonds shall be in substantially the following form: No. - - UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS CITY OF COLLEGE STATION, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BOND SERIES 1962 $5,000 THE CITY OF COLLEGE STATION, in the County of Brazos, in the State of Texas, FOR VALUE RECEIVED, hereby acknowledges itself indebted to and PROMISES TO PAY TO BEARER ON THE FIRST DAY OF FEBRUARY, 19 , solely from the special fund hereinafter specified, the sum of FIVE THOUSAND DOLLARS ($5,000), with interest thereon from the date hereof at the rate of % (NOTE TO PRINTER: For interest rate or rates, see Section 3.01 of bond €� ordinance) per annum, interest payable February 1, 1963, and semi-annually thereafter on August 1st and February 1st of each year until the principal sum hereof shall have been paid. Both principal of and interest on this bond shall be payable in any coin or currency which on the respective dates LIJ of payment of such principal and interest is legal tender for the payment of OC debts due the United States of America, at the College Station State Bank, U1 College Station, Texas, without exchange or collection charges to the owner CI- or holder. The principal hereof shall be payable only upon presentation and old surrender of this bond, and interest hereon falling due on and prior to the maturity of this bond shall be payable only upon presentation and surrender of the interest coupons hereto attached as such coupons severally become due. at ® THE DATE OF THIS BOND, in conformity with the ordinance hereinafter co mentioned, IS AUGUST 1, 1962. THIS BOND IS ONE OF A SERIES OF 7 BONDS of like date and tenor, except as to serial number, interest rate, and maturity, being numbered consecutively from 1 to 7, both inclusiver in the denomination of $5,000 each, AGGREGATING $35,000 (being a portion and the second and final installment of bonds out of a total of $300,000 bonds authorized at the election hereinafter mentioned, $265,000 bonds out of said total authorized bonds having heretofore been issued), and, together with the other bonds of said series, is issued for 00841 Va E" the purpose of constructing improvements and extensions to the City's existing sanitary sewer system, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Articles 1111 to 1118, both inclusive, Vernon's Texas Civil Statutes, and the Home Rule Charter of said City, and by authority of a vote of the duly qualified resident electors of said City who owned taxable property within said City (1) and who had duly rendered the same for taxation, at an election held with- in said City on the 1st day of December, 1954, and pursuant to an ordinance (L, lawfully adopted by the City Council of said City and duly recorded in the d official minutes of said City Council. THE CITY OF COLLEGE STATION EXPRESSLY RESERVES THE RIGHT TO REDEEM, for refunding purposes only, ALL OF THE BONDS OF THIS ISSUE then outstanding Q ON ANY INTEREST PAYMENT DATE, but only pursuant to and subject to the 03 restrictions and limitations contained in the ordinance authorizing the is s u e of bonds, to which reference is hereby made for all particulars, and the owner or holder of this bond by the acceptance thereof expressly agrees to the provisions of said ordinance. As to bonds so redeemed, notice thereof in writing shall be given to the bank at which said bonds are payable, and said notice shall be published at least one (1) time in a financial journal or publication published and of general circulation in the United States of America, which notice shall be mailed to said bank and published in said journal or publication at least thirty (30) days prior to the date fixed for redemption. When said bonds have been so called for redemption and notice thereof has been given as provided herein and due provision has been made to redeem the same, the right of the owners or holders to collect interest on said bonds which would otherwise accrue after the redemption date shall ter- minate as of the date fixed for redemption. ROORUM & PEASE EACH SUCCESSIVE HOLDER OF THIS BOND and each successive holder of each of the interest coupons hereto attached is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value and with- out notice, and to agree that this bond and each of the coupons hereto attached may be negotiated by delivery by any person having possession there- of, howsoever such possession may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value and without notice thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder. The City of College Station and its officials and fiscal agents shall not be affected by any notice to the contrary. THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT of the City of College Station or a pledge of its faith and credit, but shall be payable, as to principal and interest, together with the other bonds of this series of bonds and the outstanding bonds of the City's Electric Light and Power System Revenue Bonds, Series 1955, dated February 1, 1955 (said outstanding bonds being hereinafter referred to as the "Outstanding Bonds"), solely from the revenues derived from the operation of the City's electric light 00842 c5 and power system, including all additions, extensions, and improvements there - o to which may hereafter be made, after deduction therefrom of the reasonable 0 expenses of maintenance and operation of said system (the bonds of this 01,0 issue and the Outstanding Bonds being in all respects on a parity with one another). The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. THE CITY EXPRESSLY RESERVES THE RIGHT TO ISSUE additional bonds payable from the net revenues of said electric light and power system, and such additional bonds may be on a parity in all respects with the bonds of this issue and the Outstanding Bonds, but such additional parity bonds may be issued only pursuant to and subject to the restrictions, covenants, and limitations contained in the ordinance authorizing this issue of bonds, to which reference is hereby made for all particulars and to all the provisions of which ordinance the owner or holder of this bond by the acceptance thereof expressly assents. IT IS HEREBY CERTIFIED, RECITED, AND REPRESENTED that the issuance of this bond and the other bonds of the series of which this bond is a part is duly authorized by law; that all acts, conditions, and things required to exist and to be done precedent to and in the issuance of this series of bonds to render the same lawful and valid have been properly done and performed and have happened in regular and due time, form, and manner, as required by law; that due provision has been made for the payment of the principal of and to)interest on this bond and the other bonds of the series of which it is a -p part and the Outstanding Bonds by irrevocably pledging the net revenues of said electric light and power system; and that the issuance of this series of bonds does not exceed any Constitutional or statutory limitation. (1') IN TESTIMONY WHEREOF, the City Council of the City of College Station, COL. Texas, has caused the facsimile of the corporate seal of said City to be lithographed or printed hereon, this bond to be signed by the Mayor of said City and countersigned by the City Secretary, by their lithographed or printed facsimile signatures, and the interest coupons hereto annexed also to be executed by the facsimile signatures of said Mayor and City Secretary, all as of the 1st day of August, 1962. BOORUM & Mayor, City of College Station, COUNTERSIGNED Texas City Secretary Section 6: FORM OF INTEREST COUPONS: That the interest coupons to be attached to said bonds shall be in substantially the following form: 00843 BOORUM & PEASE No. ON THE 1st DAY OF , 19, unless the bond to which this coupon appertains has been called for previous redemption and due provision made to redeem same, THE CITY OF COLLEGE STATION, in the County of Brazos, State of Texas, PROMISES TO PAY TO BEARER, without exchange of collection charges, at the College Station State Bank, College Station, Texas, THE SUM OF $ in any coin or currency which on such date is legal tender for the payment of debts due the United States of America, solely from the special fund specified in the bond to which this coupon appertains, said sum being interest due that date of City of College Station, Texas, Electric Light and Power System Revenue Bond, Series 1962, bearing the number here- inafter specified, dated August 1, 1962. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Bond No. City Secretary Section 7: Mayor REGISTRATION OF BONDS BY STATE COMPTROLLER AND FORM OF REGISTRATION CERTIFICATE: That each of said bonds shall be registered in the office of the Comptroller of Public Accounts of the State of Texas, as provided by law, and the regis- tration certificate of said Comptroller of Public Accounts, which certificate is to be printed on the back of each of said bonds and is to be manually executed, shall be in substantially the following form: OFFICE OF THE COMPTROLLER REGISTER NO. THE 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 IS a valid and binding special obligation of the City of College Station, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing the same; and said bond has this day been regis- tered by me. WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of the State of Texas 00844 W Section 8: Cf) DEFINITIONS: That, as used in this ordinance, the following words and terms 0W shall mean and include, and are defined as follows: 66 2E (a) City - the City of College Station, Texas, and, where appropriate, :J the City Council thereof. ® (b) System - the electric light and power system of the City, including 03 all present and future additions, extensions, replacements, and improvements to said electric light and power system. BOORUM & PEASE (c) Net revenues - the gross revenues derived from the operation of the System less the reasonable expenses of operation and maintenance of the System, including all salaries, labor, materials, interest, and such repairs and extensions as in the judgment of the governing body of the City are necessary to keep the plant or utility in operation and render adequate service to such City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the original security. (d) Bonds - the $35,000 Series 1962 Revenue Bonds authorized by this ordinance. (e) Outstanding Bonds - the outstanding bonds of the City's $265,000 Electric Light and Power System Revenue Bonds, Series 1955, dated February 1, 1955. (f) 1955 Ordinance - the ordinance adopted by the City Council on the 25th day of January, 1955, authorizing the issuance of the Outstanding Bonds. (g) Additional Bonds - the additional parity revenue bonds that the City expressly reserves the right to issue in the Bonds and in Section 11 of this ordinance. (h) Bond Fund - the interest and sinking fund for the Outstanding Bond, Bonds, and Additional Bonds, which fund is established in Section 12 of the 1955 Ordinance. Section 9: ADOPTION OF PROVISIONS OF 1955 ORDINANCE: That the Bonds authorized by this ordinance shall be issued upon the terms and conditions contained in Sections 12 to 14, both inclusive, of the 1955 Ordinance, and the designated portions of said 1955 Ordinance shall apply with equal force to the Bonds hereby authorized as though such provisions were fully set forth herein; provided, however, that where said designated provisions of the 1955 Ordinance may be inconsistent or in conflict with the terms or provisions of this ordinance, then the terms or provisions of this ordinance shall govern. The Bonds and the Outstanding Bonds are in all respects on a parity and of equal dignity with one another. 00S45 d0 f11 VJ LJ 0 2 00 Section 10: PAYMENTS INTO BOND FUND: That payments shall be made into the Bond Fund as provided in Section 12 B (1) of the 1955 Ordinance, and in this connection the Outstanding Bonds and the Bonds shall be considered to be one issue of bonds, and payments shall be so made into said Bond Fund as though the Bonds were a part of the Outstanding Bond issue. Section 11: ADDITIONAL BONDS: That, in addition to inferior lien bonds authorized by Chapters 249 and 250, Acts of the 51st Legislature of Texas, 1949, as amended, the City expressly reserves the right hereafter to issue additional parity revenue bonds in one or more issues and in one or more installments, and such Additional Bonds, when issued, may be secured by and payable from a first lien on and pledge of the net revenues of the System in the same manner and to the same extent as the Bonds and Outstanding Bonds, and such Additional Bonds may in all respects be of equal dignity with the Bonds and Outstanding Bonds. It is provided, however, that no such Additional Bonds shall be issued unless: (a) An independent firm of certified public accountants certifies that the net earnings of the System for the twelve-month period next preceding the month in which the ordinance authorizing such Additional Bonds is adopted were equal to at least one and one-half (1-1/2) times the principal and interest requirements on the then outstanding bonds payable from the revenues of the System and on the Additional Bonds then proposed to be issued, when issued and sold and delivered, for the calendar year in which said require- ments are greatest. The term "net earnings" as used herein shall mean all of the net revenues of the System (exclusive of income received specifically for capital items) after deduction of the reasonable expenses of operation and maintenance of the System (excluding expenditures for capital items). (b) Said Additional Bonds are made to mature on February 1st in each of the years in which they are scheduled to nature. Section 12: SYSTEM AND REVENUES NOT ENCUMBERED: The City covenants that neither the properties comprising the System nor the revenues of the System are in any way pledged or hypothecated except as the net revenues of the System are pledged to the payment of the Outstanding Bonds and the Bonds. Section 13: APPROVAL AND REGISTRATION OF BONDS: That it shall be the duty of the Mayor to submit the record of the Bonds, and the Bonds, to the Attorney Genera]. of the State of Texas for examination and approval, and thereafter to have then registered by the Comptroller of Public Accounts of the State of Texas. 00846 BOORUM & PEASE BOORUM & PEASE Section 14: SALE OF BONDS: That the sale of the Bonds to Moroney, Beissner, & Co., Inc, at a price equal to the principal amount thereof plus accrued interest thereon from the date of such Bonds to the date of actual delivery, plus a cash premium of $23.75, subject to the unqualified approving opinion, as to the legality of such Bonds, of the Attorney General of Texas and Vinson, Elkins, Weems, & Searls, Houston, Texas, market attorneys, is hereby authorized, approved, ratified, and confirmed. When said Bonds have been approved by the Attorney General and registered by the Comptroller, they shall be delivered to the purchaser upon receipt of the full purchase price. Section 15: DUTIES OF CITY OFFICERS: That the Mayor, the City Secretary, and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary or convenient to carry out the provisions of this ordinance. Section 16: EFFECTIVE DATE OF ORDINANCE: That this ordinance shall take effect from and after its passage. PASSED AND APPROVED this 20th day of July, 1962. APPROVED: ATTEST: i< i? City Secretary l 1404)7 IPS Mayor 00847