HomeMy WebLinkAbout1982-1350 - Ordinance - 03/23/1982. i
ORDINANCE NO. /,350
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $4,220,000
UTILITY SYSTEM REVENUE BONDS, SERIES 1982; 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 (the "City "), are payable from the net
revenues derived from the operation of the combined Water-
works System, Sewer System, and Electric Light and Power
System of the 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, orig-
inally issued in the principal amount of $600,000
(Comptroller's Registration 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);
CITY OF COLLEGE STATION, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1973, dated August 1, 1973,
originally issued in the principal amount of
$500,000 (Comptroller's Registration No. 41651);
CITY OF COLLEGE STATION, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1976, dated August 1, 1976,
originally issued in the principal amount of
$3,000,000 (Comptroller's Registration No. 43295);
and
CITY OF,COLLEGE STATION, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1979, dated May 1, 1979,
originally issued in the principal amount of
$6,145,000 (Comptroller's Registration No. 45072);
CITY OF'COLLEGE STATION, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1981, dated May 1, 1981,
originally issued in the principal amount of
$3,000,000 (Comptroller's Registration No. 46114);
and
WHEREAS, it is provided in the proceedings author-
izing said outstanding bonds, and in such bonds, that the
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Ordinance No. 1350
City reserves the right to issue additional parity revenue
bonds 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
WHEREAS, at an election held in the City on the
4th day of April, 1981, more than a majority of the duly
qualified resident electors of the City who participated in
the election voted in favor of, among other things, the
issuance of revenue bonds in the following amounts for the
respective purposes specified below, to -wit:
$7,850,000 for the purpose of extending and
improving the City's existing waterworks
system;
$6,510,000 for the purpose of extending and
improving the City's existing sanitary sewer
system; and
$2,185,000 for the purpose of extending and
improving the City's existing electric utility
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 the City; and
WHEREAS, the City Council has previously authorized
the issuance and sale of a first installment of said bonds,
r designated as the City's Utility System Revenue Bonds,
Series 1981, in the aggregate principal amount of $3,000,000,
of which $1,690,000 was authorized for the purpose of extend-
ing and improving the City's waterworks system, $1,220,000
for extending and improving the City's sanitary sewer system
and $90,000 for extending and improving the City's electric
utility system; and
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Ordinance No. 1350
WHEREAS, the City Council of the City deems it
necessary and desirable to proceed with the issuance of a
second installment of said bonds in the aggregate amount of
$4,220,000, of which $3,535,000 shall be for the purpose of
extending and improving the City's waterworks system (leaving
$2,625,000 to be issued in one or more installments at a
later date or dates for such purpose) and $685,000 for
extending and improving the City's sanitary sewer system
(leaving $4,605,000 to be issued in one or more installments
at a later date or dates for such purpose, and further
leaving $2,095,000 to be issued in one or more installments
at a later date or dates for the purpose of extending and
improving the City's electric utility system); 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:
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 1982"
(the "Bonds ") are hereby authorized to be issued and delivered
in accordance 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 the City on April 4, 1981, in
the aggregate principal amount of $4,220,000 for the purpose
of making the following improvements, to -wit: $3,535,000 for
the purpose of extending and improving the City's waterworks
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Ordinance No. 1350
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system (leaving $2,625,000 of the bonds voted for such
purpose to be issued at a later date or dates); and $685,000
for the purpose of extending and improving the City's sanitary
sewer system (leaving $4,605,000 of the bonds voted for such
purpose to be issued at a later date or dates), 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 the City payable from said Net Revenues.
Section 2: That the Bonds shall be dated February 1,
1982, shall be numbered consecutively from 1 through 844,
�Nw 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
1983
$395,000
1988
$425,000
1984
425,000
1989
425,000
1985
425,000
1990
425,000
1986
425,000
1991
425,000
1987
425,000
1992
425,000
Provided, however, that the City reserves the
right to redeem in whole or in part, all Bonds maturing in
the years 1988 through 1992 on February 1, 1987, or any
interest payment date thereafter by paying the principal
thereof and accrued interest thereon. If less than all of
the 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 a financial publication of general circulation
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Ordinance No. 1350
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 the 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:
Year of
Interest
Year of
Interest
Maturity
Rate
Maturity
Rate
1983
/0. (. (')
%
1988
/('. 3s %
1984
12-00
%
1989
/ (5•7r
1985
�;;.�0
%
1990
//• or
1986
%
1991
%
1987
/�, r°�^
%
1992
with said interest to be evidenced by interest coupons
payable on August 1, 1982, and semi - annually thereafter on
each February 1 and August 1 until the principal sum is paid
in full.
Section 4: That the principal of and interest on
the 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 the Bonds.
Section 5: That each of the Bonds and interest
coupons shall be signed by the imprinted or lithographed
facsimile signature of the Mayor of the City and counter-
signed by the imprinted or lithographed facsimile signature
of the City Secretary, and the official seal of the City
shall be impressed, imprinted or lithographed on each of the
Bonds. Such facsimile signatures on the Bonds and interest
0361,'7
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Ordinance No. 1350
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 the City had been manually impressed
upon each such Bond.
Section 6: That the form of the Bonds, including
the form of Registration Certificate of the Comptroller of
Public Accounts of the State of Texas to be printed and
endorsed on each Bond, and the form of interest coupons to
be attached to said Bonds shall be, respectively, substantially
as follows:
(FORM OF BOND)
No.
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
UTILITY SYSTEM REVENUE BONDS
SERIES 1982
$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 August 1, 1982, and semi - annually thereafter on each
February 1 and August 1 while this bond is outstanding. 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.
Provided, however, that said City reserves the
right to redeem, in whole or in part, all bonds of said
series maturing in the years 1988 through 1992 on February 1,
1987, or on any interest 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 the
Ordinance No. 1350
n
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
February 1, 1982, issued in the aggregate principal amount of
$4,220,000 for the purpose of making the following improve-
ments, to -wit: $3,535,000 for the purpose of extending and
improving the City's waterworks system (leaving $2,625,000 of
the bonds voted for such purpose to be issued at a later date
or dates); and $685,000 for the purpose of extending and
improving the City's sanitary sewer system (leaving $4,605,000
of the bonds voted for such purpose to be issued at a later
date or dates and further leaving $2,095,000 of the bonds
voted for the purpose of extending and improving the City's
electric utility system to be issued at a later date or
dates), 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 April 4, 1981, 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, City of College Station, Texas, Utility
System Revenue Bonds, Series 1973, dated August 1, 1973, City
of College Station, Texas, Utility System Revenue Bonds,
Series 1976, dated August 1, 1976, City of College Station,
Texas, Utility System Revenue Bonds, Series 1979, dated
May 1, 1979 and City of College Station, Texas, Utility
System Revenue Bonds, Series 1981, dated May 1, 1981 (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 deduc-
tion therefrom of the reasonable expense of operation and
maintenance of said Systems. The holder hereof shall never
have lLln: �l to demand payment of this obligation out - -g£
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
l w 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.
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Ordinance No. 1350
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IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED
that the issuance of this bond, and the series of which it 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 deduction
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 February, 1982.
M
Countersigned:
City Secretary, City of
College Station, Texas
Mayor, City of College Station,
Texas
(FORM OF REGISTRATION CERTIFICATE)
COMPTROLLER'S REGISTRATION
CERTIFICATE:
REGISTER NUMBER
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....sai4d
bond has this day been registered by me.
WITNESS my signature and seal this
Comptroller of Public Accounts
of the State of Texas
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Ordinance No. 1350
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(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 1982, dated February 1, 1982.
BOND NO.
ihw Mayor
City Secretary
*The phrase between the asterisks will be deleted
on all interest coupons attached to bonds maturing on or prior
to February 1, 1987.
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, includin g all
present and future extensions, additions, replacements and
improvements thereto.
(c) The term "Systems Fund" shall mean all rave,--�
nues derived from the Systems.
(d) The term "Net Revenues" as used in this ordi-
�w nance shall mean the gross revenues of the Systems less the
03621
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Ordinance No. 1350
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reasonable expenses of operation and maintenance, including
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 neces-
sary 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
condition 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 $4,220,000 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, (iv)
the City of College Station, Texas, Utility System Revenue
Bonds, Series 1973, dated August 1, 1973, (v) the City of
College Station, Texas, Utility System Revenue Bonds, Series
1976, dated August 1, 1976 (vi) the City of College Station,
Texas, Utility System Revenue Bonds, Series 1979, dated
May 1, 1979 and (vii) the City of College Station, Texas,
Utility System Revenue Bonds, Series 1981, dated May 1, 1981.
03622
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Ordinance No. 1350
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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(8)(1) of the Ordinance (hereinafter called
the "Refunding Ordinance ") authorizing the issuance of $333,000
City of College Station Waterworks and Sewer System and
Electric Light and Power System Revenue Refunding 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
w 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 Systems;
(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 becomes
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
�Aw than the revenues and income of the Systems; and (B) deposit
03523
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Ordinance No. 1350
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as collected all revenues derived from the operation of the
Systems 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(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
�4w 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 autho-
rized 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
03624
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Ordinance No. 1350
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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 Outstanding
Bonds are satisfied; and
(b) After all the Outstanding Bonds (other than
the City of College Station, Texas, Utility System Revenue
Bonds, Series 1976, dated August 1, 1976, the City of College
Station, Texas, Utility System Revenue Bonds, Series 1979,
dated May 1, 1979, and the City of College Station, Texas,
Utility System Revenue Bonds, Series 1981, dated May 1, 1981)
have been paid and retired,
(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 autho-
rizing 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 requirements 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
additional bonds or other evidences of indebt-
edness, 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
03625
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Ordinance No. 1350
the reasonable expenses 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 evidences
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
Systems in good condition and operate the same in an effi-
cient manner and at a reasonable cost. So long as any of
the Bonds are outstanding, the City agrees to maintain
insurance 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.
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Ordinance No. 1350
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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 secured 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.
�W (b) That, other than for the payment of the Bonds
herein authorized and the Outstanding Bonds, the rents,
revenues and income of the Systems have not in any manner
been 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 subordi-
nate 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
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0362"1
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Ordinance No. 1350
Bonds or Outstanding Bonds or any interest thereon is outstand-
ing, 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 the 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
r 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 designated in writing to act for said Comptroller)
shall manually sign the Comptroller's Registration Certificate
prescribed herein to be printed and endorsed on each Bond,
and the seal of said Comptroller shall be impressed,
printed or lithographed on each of the Bonds.
Section 17: That the City hereby further covenants
with the purchasers and any subsequent holders of the Bonds
that the City will not make any use of the proceeds of the
Bonds which will cause the Bonds to be or become arbitrage
bonds within the meaning of Section 103(c) of the Internal
Revenue Code-of 1954, as amended, or any regulations
promulgated thereunder, and that the City will otherwise
comply with the pertinent provisions of said Section 103(c)
and regulations in order that the Bonds will not be or
become arbitrage bonds thereunder.
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Ordinance No. 1350
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Section 18: That public advertisement for the
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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
Q 11550Cia7f� is the best bid received; and the sale of
the Bonds to the named best 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 $ 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,
ratified, 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 delivered to the purchasers upon receipt of the
full purchase price. The Mayor, City Secretary and other
appropriate officers of the City are authorized and directed
.0
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 23rd day of March,
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1982.
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City Secret City of
College Station, Texas
[SEAL]
Mayo , - C it of College
Station,Texas
03629
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