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HomeMy WebLinkAbout1976-1040 - Ordinance - 08/31/1976M THE STATE OF TEXAS § § COUNTY OF BRAZOS § The City Council of the City of College Station, Texas, convened in special session, open to the public and duly noticed in accordance with Article 6252-17, V.A.T.C.S., as amended, at the regular meeting place thereof in the City Hall, within said City, on the 31st day of August, 1976, with the following members present, to -wit: Lorence L. Bravenec Mayor Gary M. Halter Councilman Lane B. Stephenson Councilman Larry J. Ringer Councilman J. R. Gardner Councilman Ms. Anne Hazen Councilman James H. Dozier Councilman and the following members absent, to -wit: IvI,e. .S;-r�h'En/S��✓ when, among other business, the following was transacted, to -wit: The Mayor introduced an ordinance which was read in full. Councilman Mq1 r&,-,-' moved that the ordinance be adopted as read. Councilman /�I/V6- seconded the motion for adoption of said ordinance. The motion, carrying with it the adoption of the ordinance, pre- .wailed by the following vote: AYES: 14GL �"E�T&&i NOES : ty,'W ' The Mayor thereupon announced that the motion had duly and lawfully carried and that the ordinance had been duly and lawfully adop e 4='12 ORDINANCE NO. to -40 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $3,000,000 UTILITY SYSTEM REVENUE BONDS, SERIES 1976; PRO- VIDING THE DETAILS RELATING THERETO; AND DECLARING THAT THIS ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION WHEREAS, the outstanding revenue bonds of the following described bond issues of the City of College Station, Texas, are payable from the net revenues derived from the operation of the combined Waterworks System, Sewer System, and Electric Light and Power System of said City, to -wit: CITY OF COLLEGE STATION WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE REFUNDING BONDS, SERIES 1967, dated February 1, 1967, originally issued in the principal amount of $333,000 (Comptroller's Registration No. 37769); CITY OF COLLEGE STATION WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1967, dated February 1, 1967, originally issued in the principal amount of $600,000 (Comptroller's Registra- tion No. 37768); CITY OF COLLEGE STATION, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1971, dated August 1, 1971, originally issued in the principal amount of $800,000 (Comptroller's Registration No. 40262); and CITY OF COLLEGE STATION, TEXAS, UTILITY SYS- TEM REVENUE BONDS, SERIES 1973, dated August 1, 1973, originally issued in the principal amount of $500,000 (Comptroller's Registration No. 41651); and WHEREAS, it is provided in the proceedings author- izing said outstanding bonds, and in such bonds, that the City reserves the right to issue additional parity revenue `-' -- bands -and that such additional parity bonds, when issued, may be secured by and payable from a first lien on and pledge of the net revenues of said combined Systems in the same manner and to the same extent as said outstanding bonds; and ®o2713 M im Ordinance No. 1040 WHEREAS, at an election held in said City on the 29th day of June, 1976, more than a majority of the duly qualified resident electors of said City who participated in the election voted in favor of, among other things, the Assuance of revenue bonds in the amount of $3,000,000 for the purpose of extending and improving the City's Electric Light and Power System; and WHEREAS, all of said bonds are to be secured by a pledge of the Net Revenues from the operation of the City's combined Waterworks System, Sanitary Sewer System and Electric Light and Power System, and are to be on a parity in all respects with said outstanding bonds of said City; and WHEREAS, the Council deems it necessary and desir- able to proceed with the issuance of all of said bonds at this time; and WHEREAS, the Council has found and determined, and hereby finds and determines, that all conditions precedent to its right to issue additional revenue bonds payable from the same source and on a parity with said outstanding bonds as recited in the respective Ordinances authorizing the issuance thereof have been met and satisfied; therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: Section 1: That the coupon bonds of the City of College Station, Texas, to be designated as "CITY OF COLLEGE STATION, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1976" are hereby authorized to be issued and delivered in accord- ance with the Constitution and laws of the State of Texas, and particularly Articles 1111 to 1118, both inclusive, Vernon's Texas Civil Statutes, as amended, and as authorized at the bond election held in said City on June 29, 1976, in.the -2- 0271,d Ordinance No. 1040 principal amount of $3,000,000 for the purpose of extending and improving the City's existing Electric Light and Power System, all of said bonds being secured, as hereinafter provided, by a pledge of the Net Revenues from the operation of the City's combined Waterworks and Sewer System and Electric Light and Power System on a parity in all respects with the outstanding bonds of said City payable from said Net Revenues. Section 2: That said bonds shall be dated August 1, 1976, shall be numbered consecutively from 1 upward, shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on February 1 in each of the years, and in the amounts specified in the following schedule: Year Amount Year Amount 1979 $150,000 1989 $150,000 1980 150,000 1990 150,000 1981 150,000 1991 150,000 1982 150,000 1992 150,000 1983 150,000 1993 150,000 1984 150,000 1994. 175,000 1985 150,000 1995 175,000 1986 150,000 1996 200,000 1987 150,000 1997 200,000 1988 150,000 Provided, however, that the City reserves the right to redeem in whole or in part, all such bonds maturing in the years 1988 through 1997 on February 1, 1987, or any interest Law payment date thereafter by paying the principal thereof and accrued interest thereon. If less than all of said bonds then outstanding are called for redemption, then the bonds shall be called in inverse numerical order. Notice of such redemption shall be given in writing to University National Bank, College Station, Texas, at least thirty (30) days prior to the date fixed for redemption and written notice shall also be given by publishing a copy of said notice in -3- W715 Ordinance No. 1040 a financial publication of general circulation in the United States one (1) time at least thirty (30) days prior to the date fixed for redemption. Any bond or bonds duly called for redemption, due provision for the payment of which has been timely made, shall cease to bear interest from and after the date fixed for redemption. Section 3: That said bonds shall bear interest per annum from their date until maturity, unless called sooner for prior redemption in accordance with the provisions hereof, at the following rates: All bonds scheduled to mature during the years 1979 through / I/Y& ------ G. oy % *W All bonds scheduled to mature during the years /� through /yf/ ------ 6-.6-0% All bonds scheduled to mature during the years t9jI through -- ------ 15766- % All bonds scheduled to mature during the years 1993 through / y94 ------ S. ffa % All bonds scheduled to mature during the years 2 �- through i �i6 ------ 6. a,? % All bonds scheduled to mature during the years L&_,7_ g']lr--- ------ 4, o'r % with said interest to be evidenced by interest coupons payable on February 1, 1977, and semi-annually thereafter on each August 1 and February 1 until the principal sum is paid in full. Section 4: That the principal of and interest on said bonds shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of proper bond or interest coupon, as the case may be, at the University National Bank, College Station, Texas, which bank shall be the paying agent for said bonds. Section 5: That each of said bonds and interest coupons shall be signed by the imprinted or lithographed facsimile signature of the Mayor of said City and countersigned -4- 02*?U Ordinance No. 1040 Pj by the imprinted or lithographed facsimile signature of the City Secretary and the official seal of said City shall be impressed, or imprinted or lithographed on each of said bonds. Such facsimile signatures on the bonds and interest coupons and said facsimile seal on the bonds shall have the same effect as if the Mayor and City Secretary had in person and manually signed each such bond and interest coupon and as if the official seal of said City had been manually im- pressed upon each such bond. Section 6: That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and en- dorsed on,each bond, and the form of interest coupons to be attached to said bonds shall be, respectively, substan- tially as follows: NO. (FORM OF BOND) UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS CITY OF COLLEGE STATION, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1976 $5,000 On February 1, , the City of College Station, in the County of Brazos, State of Texas, for value received, hereby promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of % per annum, evidenced by interest coupons pay- able February 1, 1977, and semi-annually thereafter on each August 1 and February 1 while this bond is outstandig. The principal of this bond and the interest coupons attached hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the University National Bank, College Station, Texas, which bank shall be the paying agent for this series of bonds. Ordinance No. 1040 Provided, however, that the City reserves the right to redeem, in whole or in part, all bonds of said series ma- turing in the years 1988 through 1997 on February 1, 1987, or on any interest payment date thereafter by paying the princi- pal thereof and accrued interest thereon. If less than all of said bonds then outstanding are called for redemption, then the bonds shall be called in inverse numerical order. Notice of such redemption shall be given in writing to the University National Bank, College Station, Texas, at least thirty (30) days prior to the date fixed for redemption and written notice shall also be given by publishing a copy of said notice in a financial publication of general circulation in the United States one (1) time at least thirty (30) days prior to the date fixed for redemption. Any bond or bonds called for redemption, due provision for the payment of which has been timely made, shall cease to bear interest from and after the date fixed for redemption. THIS BOND IS ONE OF A SERIES OF COUPON BONDS dated August 1, 1976, issued in the aggregate principal amount of $3,000,000 for the purpose of extending and improving the City's existing Electric Light and Power System, in accordance with Articles 1111 to 1118, both inclusive, Vernon's Texas Civil Statutes, as amended, and by authority of a vote of the resident duly qualified electors of said City, voting at an election held for that purpose, among others, within said City on June 29, 1976, and pursuant to an ordinance passed by the City Council of said City and duly recorded in the Minutes of said City Council. 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 City's outstanding revenue bonds, namely, City of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Refunding Bonds, Series 1967, dated February 1, 1967, City of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Bonds, Series 1967, dated February 1, 1967, City of College Station, Texas, Utility System Revenue Bonds, Series 1971, dated August 1, 1971, and City of College Station, Texas, Utility System Revenue Bonds, Series 1973, dated August 1, 1973 (the bonds of this series of bonds and said outstanding bonds being in all respects on a parity with each other), solely from the revenues derived from the operation of the City's combined Waterworks and Sewer System and Electric Light and Power System, including all present and future extensions, additions, replacements and improvements thereto after deduction therefrom of the reasonable expense of operation and maintenance of said Systems—, 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. Said City has reserved the right, subject to the restrictions stated in the ordinance authorizing this series of bonds, to issue additional revenue bonds which may be secured by and made payable from the same revenues as, and be on a parity and of equal dignity in all respects with, this series of bonds and the City's said outstanding revenue bonds. IT IS HEREBY CERTIFIED, RECITED, AND REPRESENTED that the issuance of this bond and the series of which it Ordinance No. 1040 is a part is duly authorized by law; that all acts, conditions, and things required to exist and 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; and that the interest on and principal of this bond, the series of which it is a part, and the City's said outstanding revenue bonds, all of said bonds being on a parity with and of equal dignity in all respects, are payable solely from and secured by a first lien on and pledge of the' revenues of the combined Waterworks System, Sewer System and Electric Light and Power System of said City, after deduc- tion of reasonable operating and maintenance expenses. IN WITNESS WHEREOF, this bond and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the Mayor of said City and countersigned by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of said City has been duly impressed, printed, or lithographed on this bond, all as of the 1st day of August, 1976. %W Mayor, City of College Station, Texas City Secretary, City of College Station, Texas (FORM OF REGISTRATION CERTIFICATE) COMPTROLLER'S REGISTRATION § CERTIFICATE § REGISTER NO. 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; 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 special obligation upon the City of College Station, Texas, payable solely from the revenues pledged to its payment, and said bond has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE this day of , 19_ Comptroller of Public Accounts of the State of Texas -7- Ordinance No. 1040 (FORM OF INTEREST COUPON) NO. On , 19 , *unless the bond to which this coupon is attached shall have been called for prior redemption as therein provided and due provision has been made for the redemption thereof,* the City of College Station, in the County of Brazos, State of Texas, promises to pay to bearer, without exchange or collection charges, at the University National Bank, College Station, Texas, the above specified sum in lawful money of the United States of America, solely from the funds specified in the bond to which this coupon is attached and without right to demand payment out of any funds raised or to be raised by taxation, said sum being interest due that date on the CITY OF COLLEGE STATION, TEXAS, UTILITY SYSTEM REVENUE BONDS, SERIES 1976, dated August 1, 1976. BOND NO. Mayor City Secretary Section 7: That the following terms shall have the respective meanings specified: (a) The term "City" refers to the City of College Station, Texas, or where appropriate to the City Council thereof. (b) The term "Systems" as used in this ordinance shall mean the City's combined Waterworks System, Sewer System, and Electric Light and Power System, including all present and future extensions, additions, replacements and improvements thereto. * The phrase between the asterisks will be de- leted on all interest coupons attached to bonds maturing on or prior to February 1, 1987. Ordinance No. 1040 IN (c) The term "Systems Fund" shall mean all reve- nues derived from the Systems. (d) The term "Net Revenues" as used in this ordinance shall mean the gross revenues of the Systems less the reasonable expenses of operation and maintenance, includ- ing all salaries, labor, materials, repairs, and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the plant or utility in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condi- tion which would otherwise impair the bonds authorized by this ordinance and any additional bonds permitted to be issued hereunder, shall be deducted in determining "Net Revenues." (e) The term "Bonds" shall mean the $3,000,000 of bonds authorized by this ordinance. (f) The term "Additional Bonds" means the addi- tional bonds and other evidences of indebtedness which the City reserves the right to issue under Section 11 hereof. (g) The term "Outstanding Bonds" means (i) the City of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Refunding Bonds, Series 1967, dated February 1, 1967, (ii) the City of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Bonds, Series 1967, dated February 1, 1967, (iii) the City of College Station, Texas, Utility System Revenue Bonds, Series 1971, dated August 1, 1971, and (iv) the City of College Station, Texas, Utility System Revenue Bonds, Series 1973, dated August 1, 1973. The Bonds and the Outstanding Bonds are in all respects on a parity and of equal dignity with one another. (h) The term "Bond Fund" means the fund provided for in Section 10(B)(1) of the Ordinance (hereinafter called -9-0=1 Ordinance No. 1040 the "Refunding Ordinance") authorizing the issuance of $333,000 City of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Refund- ing Bonds, Series 1967. Section 8: That the Bonds, the Outstanding Bonds and all Additional Bonds, and the interest thereon, are and shall be payable from and secured by an irrevocable first lien on and pledge of the net revenues of the Systems, and said net revenues are hereby pledged irrevocably for the payment and security of the Bonds, the Outstanding Bonds, and the Additional Bonds and the interest thereon. Section 9: That the City covenants and agrees with the holders of the Bonds, the Outstanding Bonds, and Additional Bonds, if and when issued, that it will (A) fix and maintain rates and collect charges for the facilities and services afforded by the Systems which will provide revenues sufficient at all times: (1) To pay all operation, maintenance, depreciation, replacement and betterment charges of the System; (2) To establish and maintain the Bond Fund; and (3) To pay all outstanding indebtedness against the Systems, other than bonds, as and when the same become due. Provided also, that no free service of the Systems shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the Systems, payment of the reasonable value thereof shall be made by the City out of funds derived from sources other than the revenues and income of the Systems; and (B) deposit as collected all revenues derived from the operation of the Sys- tems into the Systems Fund which shall be kept separate and apart from all other funds of the City. Section 10: That the Systems Fund shall be adminis- tered and payments made into the Bond Fund as provided in Section -10- 02s72 Ordinance No. 1040 10(B)(1) of the Refunding 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 issues of Outstanding Bonds. Any funds remaining in the Systems Fund, after provision for the reasonable cost of operating and maintaining the Systems, and after paying the amounts required to be paid into the Bond Fund for the Bonds and the Outstanding Bonds, may be used by the City for the purchase of said bonds at not exceeding the principal amount thereof; provided, however, that if no such bonds are readily available for purchase at not exceeding the principal amount thereof, then such excess revenues may be used for any lawful purpose. Section 11: 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 bonds and other evidences of indebtedness now or hereafter authorized by the Legislature of Texas, and such additional parity bonds and other evidences of indebtedness, when issued, may be secured by and payable from, a first lien on and pledge of the net revenues of the Systems in the same manner and to the same extent as are the bonds authorized by this ordinance, and the bonds authorized herein and such additional parity bonds and other evidences of indebtedness may in all respects be of equal dignity. It is provided, however, that no such additional parity bonds or other evidences of indebtedness shall be issued unless: (a) As long as any of the Outstanding Bonds are outstanding and unpaid, all material conditions set forth in the ordinance or ordinances authorizing the then Out- standing Bonds are satisfied; and (b) After all the Outstanding Bonds have been paid and retired, -11- 02723 Ordinance No. 1040 in (i) An independent firm of certified public accountants, based upon an annual audit of the books of the Systems, certifies that the net earnings of the Systems for the fiscal year next preceding the month in which the ordinance authorizing such additional parity bonds or other evidence of indebtedness is adopted were equal to at least one and four - tenths (1-4/10) times the average annual re- quirements for the payment of principal and interest on the then outstanding bonds and other evidences of indebtedness payable from the revenues of said Systems and on said ad- ditional bonds or other evidences of indebted- ness, when issued, sold, and delivered. The term "net earnings" as used in this Section shall mean all of the net revenues of the Waterworks System, the Sewer System and the Electric Light and Power System, exclusive of income received specifically for capital items, after deduction of the reasonable ex- penses of operation and maintenance of the Systems excluding expenditures which under standard accounting practice should be charged to capital expenditures or depreciation; and (ii) Said additional bonds or other evi- dences of indebtedness are made to mature on February 1st in each of the years in which they are scheduled to mature. Section 12: That the City shall maintain the Sys- tems in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the Bonds are outstanding, the City agrees to maintain insurance -12- 0=11 Ordinance No. 1040 IM on the Systems, for the benefit of the holder or holders of the Bonds, of a kind and in an amount which usually would be carried by private companies engaged in a similar type of business. This ordinance shall not be construed as requiring the City to expend any funds which are derived from sources other than the operation of the Systems, but nothing herein shall be construed as preventing the City from doing so. Section 13: That the City shall keep proper books of records and accounts, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the Systems. Upon written request made not more than 60 days following the close of the fiscal year, the City shall furnish to any holder of any of the Bonds, complete financial statements of the Systems in reasonable detail covering such fiscal year, certified by the City's Auditor. Any purchaser, holder or holders of 25% of the outstanding bonds of said Systems shall have the right at all reasonable times to inspect the Systems and all records, accounts and data of the City relating thereto. Section 14: That the City hereby further covenants as follows: (a) That it has the lawful power to pledge the revenues supporting the Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including said power existing under Articles 1111- 1118, both inclusive, Revised Civil Statutes of the State of Texas, with amendments thereto; that the Bonds issued hereunder and the Outstanding Bonds shall be ratably se- cured by said pledge of income, in such manner that one bond shall have no preference over any other bond of this issue or of the Outstanding Bonds. (b) That, other than for the payment of the Bonds herein authorized and the Outstanding Bonds, the rents, reve- nues and income of the Systems have not in any manner been �s -72 -13- Ordinance No. 1040 pledged to the payment of any debt or obligations of the City or of the Systems. (c) That, so long as any of the Bonds, the Out- standing Bonds, or Additional Bonds remain unpaid the City will not sell or encumber the Systems or any substantial part thereof, and that it will not encumber the revenues thereof unless such encumbrance is made junior and subordinate to all of the provisions of this Ordinance. (d) That no free service of the Systems shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services and facilities of the Systems payment of the reasonable value thereof shall be made by the City out of funds from sources other than the revenues and income of the Systems. (e) To the extent that it legally may, the City further covenants and agrees that, so long as any of the Bonds or Outstanding Bonds or any interest thereon is out- standing, no franchise shall be granted for the installation or operation of any competing Systems, that the City will prohibit the operation of any such Systems other than those owned by the City and the operation of any such Systems by anyone other than this City is hereby prohibited. Section 15: The Bonds are special obligations of the City payable from the pledged revenues and the holder thereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxation. Section 16: That the Mayor is hereby authorized and directed to submit, or cause to be submitted, the record of the Bonds, and the Bonds, to the Attorney General of the State of Texas for examination and approval and thereafter cause the Bonds to be registered by the Comptroller of Public Accounts of the State of Texas. Upon said registration of the Bonds, said Comptroller of Public Accounts (or a.deputy. -14 - a2iM Ordinance No. 1040 designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate pre- scribed herein to be printed and endorsed on each bond, and the seal of said Comptroller shall be impressed or printed, or lithographed on each of said bonds. Section 17: That public advertisement for the sale of the Bonds and bids to purchase the Bonds having been received pursuant thereto, it is hereby found and declared that the bid submitted by /�Crv��3 W;w57Vw k v,/sia/Y u �?, Y 1�5se C=,,i%&z is the best bid received; and the sale of the Bonds to the named high bidder, at a price equal to the principal amount of the Bonds plus accrued interest thereon from the date thereof to the date of actual delivery, plus a cash premium of $f %G, [1(7•, subject to the unqualified approving opinion, as to the legality of said bonds, of the Attorney General of the State of Texas and Baker & Botts, Houston, Texas, market attorneys, is hereby authorized, rati- fied, approved and confirmed. When the Bonds have been approved by the said Attorney General and registered by the Comptroller of Public Accounts of the State of Texas, they shall be de- livered to the purchasers upon receipt of the full purchase price. The Mayor, City Secretary and other appropriate offi- cers of the City are authorized and directed to perform all acts necessary and/or convenient to carry out the terms of this Ordinance. Section 19: That this Ordinance shall take effect immediately upon its adoption. PASSED AND APPROVED this the 31st day of August, 1976. city secretary (SEAL] CIT OF COLLEGE STATION, TEXAS ayor -15-