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HomeMy WebLinkAbout1967-0495 - Ordinance - 01/13/1967(f) ORDINANCE NO. 495 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $600, 000 WATERWORKS 0 AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1967, AND DECLARING THAT THIS ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION. BOORUM & PEASE THE STATE OF TEXAS COUNTY OF BRAZOS X 0 The City Council of the City of College Station, Texas, convened in special session at the regular meeting place thereof in the City Hall, within said City on the 13th day of January, 1967, with the following members present, to -wit: D. A. Anderson Mayor Bill J. Cooley Councilman Homer B. Adams Councilman Robert R. Rhodes Councilman O. M. Holt Councilman A. L. Rosprim Councilman A. P. Boyett Councilman 1.6 Charles F. Richardson City Secretary and the following member(s) absent to -wit, None, when among other business, the following was transacted: The Mayor introduced an ordinance which was read in full. Councilman Boyett 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: AYES: Councilmen Cooley, Adams, Rhodes, Holt, Rosprim, Boyett, and Mayor Anderson. NOES: None. The Mayor thereupon announced that the motion had duly and lawfully carried, and that the ordinance had been duly and lawfully adopted. The ordinance thus adopted follows: AN ORDINANCE AUTHORIZING THE ISSUANCE OF $600, 000 WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1967, AND DECLARING THAT THIS ORDINANCE SHALL BE EFFECTIVE IMMEDIATELY UPON ITS ADOPTION. 01195 Ordinance No. 495 January 13, 1967 Page 2 WHEREAS, pursuant to an election held on the 17th day of September, 1966, more than a majority of the duly qualified resident electors of said city, who owned taxable property within said city and who had duly rendered the same for taxation, who participated in the election, voted in favor of the issuance of $600, 000 Revenue Bonds for the purpose of extending and improving the City's existing Waterworks System, said bonds to be secured by a pledge of the Net Revenues from the operation of the City's Waterworks System, Sanitary Sewer System and Electric Light and Power System, and said bonds to be on a parity in all respects with the Refunding Bonds of said City payable from the Net Revenues of said Waterworks System, Sewer System and Electric Light and Power System; and WHEREAS, the Council has found and determined that all conditions precedent to its right to issue further revenue bonds payable from the same source and on a parity with said Refunding Bonds as recited in the Ordinance authorizing the issuance of said Refunding Bonds have been met and satisfied; and WHEREAS, the Council finds and determines that all $600, 000 revenue bonds should be issued at this time; therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: Section 1. Authorization, Designation, Amount and Purpose. That said city's coupon bonds to be designated the "CITY OF COLLEGE STATION WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1967, " 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 said City on September 17, 1966, in the principal amount of $600, 000 for the purpose of extending and improving the City's existing Waterworks System, said bonds being secured, as hereinafter provided, by a pledge of the Net Revenues from the operation of the City's Waterworks and Sewer System and Electric Light and Power System on parity in all respects with the Refunding Bonds of said City payable from said Net Revenues. Section 2. Date, Numbers, Denomination, Interest Rates and Interest Payment dates, and Maturity. Said bonds shall be dated February 1, 1967, shall be numbered consecutively from 1 through 120, shall be in the denomination of $5, 000 each, shall bear interest from their date until maturity at the rate of 4-1/2% with said interest to be evidenced by interest coupons payable August 1, 1967, and semi-annually thereafter on each February 1 and August 1, and shall mature and become due and payable serially, without option of prior redemption, on February 1, in each of the years, and in the amounts as set forth in the following schedule: 01196 Ordinance No. 495 January 13, 1967 Page 3 Bond Numbers Year of Amount (both inclusive) Maturity Maturity 1 - 6 1970 $30, 000 7 - 12 1971 30, 000 13 - 18 1972 30, 000 19 - 24 1973 30,000 25 - 30 1974 30, 000 31 - 36 1975 30, 000 37 - 42 1976 30, 000 43 - 48 1977 30, 000 49 - 54 1978 30, 000 55 - 60 1979 30, 000 61 - 66 1980 30, 000 67 - 72 1981 30, 000 73 - 78 1982 30, 000 79 - 84 1983 30, 000 85 - 90 1984 30,000 91 - 96 1985 30, 000 97 -102 1986 30, 000 103 -108 1987 30, 000 109 -114 1988 30, 000 115 -120 1989 30,000 Section 3. Place of Payment. 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, at the University National Bank, College Station, Texas, which place shall be the paying agent for said bonds. Section 4. Execution of Bonds and Interest Coupons. That the facsimile of the official seal of said City shall be lithographed or printed on each of said bonds, and 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 interest coupons attached to said bonds shall also be executed by said facsimile signatures of the Mayor and City Secretary. Said facsimile seal on the bonds and said facsimile signatures on the bonds and interest coupons shall have the same effect as if the official seal of the City had been manually impressed upon each such bond and as if the Mayor and City Secretary had in person and manually signed each such bond and interest coupon. Section 5. Form of Bonds. That the form of said bonds shall be substantially as follows: 01197 Ordinance No. 495 January 13, 1967 Page 4 NO. $5, 000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS CITY OF COLLEGE STATION WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1967 FOR VALUE RECEIVED, the City of College Station, in the County of Brazos, State of Texas, hereby acknowledges itself indebted to and promises to pay to bearer on February 1, 19, the sum of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of % per annum (NOTE TO PRINTER. For interest rate see Section 2 of this Ordinance. ), evidenced by interest coupons payable August 1, 1967, 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 place shall be the paying agent for this Series of bonds. This bond is one of a series of coupon bonds dated February 1, 1967, issued in the principal amount of $600, 000 for the purpose of extending and improving the City's existing Waterworks 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 qualified property taxpaying electors of said City, who owned taxable property therein and had duly rendered the same for taxation, voting at an election held for that purpose within said City on September 17, 1966, 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 of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Bonds, Series 1967, dated February 1, 1967, (the bonds of this Series and said Refunding Bonds being in all respects on a parity with each other) solely from`the revenues derived from the operation of the City's Waterworks and Sewer System and Electric Light and Power System, including all present and future extensions, additions, replacements and 0119S Ordinance No. 495 January 13, 1967 Page 5 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 Revenue Refunding Bonds, Series 1967. It is hereby certified and recited that this bond has been duly and validly authorized, issued and delivered in accordance with the Constitution and laws of the State of Texas and that the interest on and principal of this bond, the Series of which it is a part, and the City's Revenue Refunding Bonds, Series 1967, 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 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 of said City, and a facsimile of the official seal of said City has been duly printed, or lithographed on this bond, all as of the 1st day of February, 1967. Mayor, City of College Station, Texas 0:42„yt,620,) 4( G i ./ City Secretary, City of College Station, Texas Section 6. Form of Interest Coupons. The interest coupons to be attached to said bonds shall be in substantially the following form: NO. ON THE 1ST DAY OF , 19 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 sum of $ 01199 Ordinance No. 495 January 13, 1967 Page 6 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 WATERWORKS AND SEWER SYSTEM AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1967, dated February 1, 1967. BOND NO. Mayor, City of College Station, Texas City Secretary, City of College Station, Texas Section 7. Registration of Bonds by State Comptroller and Form of Registration Certificate. Each of said bonds shall be registered by the Comptroller of Public Accounts of the State of Texas. Upon registration, said Comptroller (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed on the back of each of said bonds and the seal of said Comptroller shall be impressed or printed or lithographed on each of said bonds. The form of such Registration Certificate shall be substantially as follows: OFFICE OF THE COMPTROLLER THE STATE OF TEXAS )( 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 pledge to its payment, and said bond has this day been registered by me. WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas, Comptroller of Public Accounts of the State of Texas Section 8. Definitions. (a) The term "City" refers to the City of College Station, Texas, or where appropriate to the City Council thereof. Ordinance No. 495 January 13, 1967 Page 7 (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. (c) The term "Systems Fund" shall mean all revenues 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, 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 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 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 $600, 000 of bonds authorized by this ordinance. (f) The term "Additional Bonds" means the Additional Bonds which the City reserves the right to issue under Section 12 hereof. (g) The term "Outstanding Bonds" means the City of College Station Waterworks and Sewer System and Electric Light and Power System Revenue Refunding Bonds, Series 1967, dated February 1, 1967. The Bonds and the Outstanding Bonds are in all respects on a parity and of equal dignity with one another. Section 9. Pledge. 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 10. Rates. The City covenants and agrees with the holders of the Bonds, the Outstanding Bonds, and Additional Bonds if and when issued, that it will 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; 01201 Ordinance No. 495 January 13, 1967 Page 8 (2) To establish and maintain the Bond Fund; (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. Section 11. Payments into Bond Fund. The Systems Fund shall be administered and payments made into the Bond Fund as provided in Section 10(B) (1) of the Ordinance authorizing the issuance of the Outstanding Bonds, 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. 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 and not exceeding the principal amount thereof, then such excess revenues may be used for any lawful purpose. Section 12. Additional Bonds. 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 such additional parity bonds, 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 may in all respects be of equal dignity. It is provided, however, that no such additional parity bonds shall be issued unless: (a) An independent firm of certified public accountants certifies that the net earnings of the Systems for the twelve month period next preceding the month in which the ordinance authorizing such additional parity 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 said Systems and on said additional bonds, when issued, sold, and delivered, for the calendar year in which said require- ments are greatest. 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 expenses of operation and maintenance of the Systems excluding expenditures which under standard accounting practice should be charged to capital expenditures. 01202 Ordinance No. 495 January 13, 1967 Page 9 (b) Said additional bonds are made to mature on February 1st in each of the years in which they are scheduled to mature. Section 13. Maintenance and Operation. The City shall maintain the Systems 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 for the benefit of the holder or holders of the bonds, on the Systems, 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 14. Accounts, Periodic Statements and Inspection. 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 15. Special Covenants. The City hereby further covenants as follows: (a) That it has the lawful power to pledge the revenues supporting this issue of 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. (b) The City covenants and represents 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 Outstanding 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. 01203 Ordinance No. 495 January 13, 1967 Page 10 (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 System. (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 outstanding, 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 16. Bonds are Special Obligations. 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 17. Approval and Registration. The Mayor of said City is hereby authorized to have control of said Bonds and all necessary records and proceedings pertaining to said Bonds pending their delivery, and their investigation, examination and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Section 18. Duties of City Officers. That the Mayor and City Secretary and other appropriate officers of the City are hereby authorized and directed (a) to proceed with the sale of said bonds to the highest bidder therefor, subject to the unqualified approving opinion of the Attorney General of the State of Texas and Baker, Botts, Shepherd & Coates, market attorneys, (b), when said bonds have been approved by said Attorney General and registered by the Comptroller of Public Accounts of the State of Texas, to deliver such bonds to the purchaser thereof upon receipt of the full purchase price thereof and (c) to do any and all other things necessary or convenient to carry out the provisions of this ordinance. Section 19. Effective Date of Ordinance. This Ordinance shall take effect from and after its passage. PASSED AND APPROVED this 13th day of January, 1967. APPROVED: aft' D. A. Anderson, Mayor ATTEST: ! acsjSAL City Secretary 01204