HomeMy WebLinkAbout1979-1165 - Ordinance - 06/28/1979THE STATE OF TEXAS
COUNTY OF BRAZOS
The City Council of the City of College Station,
Texas, convened in regular 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 28th day of June, 1979, with
the following members present, to -wit:
Loren e L. Bravenec Mayor
Homer B. Adams Councilman
Gary V. Halter Councilman
Patricia B. Boughton Councilwoman
Tony Jones _ Councilman
Larry J. Ringer Councilman
James- Dezierr — — i — Counci-lman
and the following members absent, to -wit: M2 . � 42 I&W
, when, among other business, the following
was transacted, to -wit:
The Mayor introduced an ordinance which was read in
full. Cou cilm a4 /Va 1�_er moved that the
ordinance be adopted as read. Council ,2/1 P j /)Sj�(- sQ-conded
the motion for adoption of said ordinance. The motion,,,,
t
carrying with it the adoption of the ordinance, prevailed by
the follow ng vote:
YES:
S:
The Mayor thereupon announced that the motion had
duly and lgwfully carried and that the ordinance had been
duly and lawfully adopted. The ordinance thus adopted follows:
ki
AN ORI
UTILI7
VIDIN(
THAT
ORDINANCE NO. ! /&�
INANCE AUTHORIZING THE ISSUANCE OF $6,145,000
Y SYSTEM REVENUE BONDS, SERIES 1979; PRO -
THE DETAILS RELATING THERETO; AND DECLARING
HIS 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, T xas, are payable from the net revenues derived
from the o�eration 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,
r 1967, originally issued in the principal amount of
$333, 00 (Comptroller's_Registration No. 37769);
CITY OF COLLEGE STATION WATERWORKS AND SEWER
SYSTE14 AND ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS SERIES 1967, dated February 1, 1967,
originally issued in the principal amount of
$600, 00 (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, 00 (Comptroller's Registration No. 40262);
In
CITY OF COLLEGE STATION, TEXAS, UTILITY SYSTEM
REVENUE BONDS, SERIES 1973, dated August 1, 1973,
originally issued in the principal amount of
$500, 00 (Comptroller's Registration No. 41651); ;v
and
CITY DF COLLEGE STATION, TEXAS, UTILITY SYSTEM
REVENJE BONDS, SERIES 1976, dated August 1, 1976,
origi ally issued in the principal amount of
$3,00 ,000 (Comptroller's Registration No. 43295);
and
S, 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
bonds and that such additional parity bonds, when issued,
may be se ured by and payable from a first lien on and
pledge of
same mannE
Awe
bonds; anc
net revenues of said combined Systems in the
r and to the same extent as said outstanding
101
Ordinance lo. 1165
;I
IN
WHEREAS, at an election held in said City on the
lst day of April, 1978, 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
issuance o revenue bonds in the amount of $5,300,000 for
the purpos of extending and improving the City's waterworks
system and in the amount of $845,000 for the purpose of
extending �nd improving the City's sanitary sewer system;
and
EREAS, 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 p oceed with the issuance of all of said bonds at
this time; and
WHEREAS, the Council has found and determined, and
hereby fi ds 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
t
as recited in the respective Ordinances authorizing the
issuance thereof have been met and satisfied; therefore BE
IT ORDAIN D BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, ERAS:
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 1979"
are hereb 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
-2-
031®IZ
Ordinance No. 1165
9
at the bona election held in said City on April 1, 1978, in
the princi al amount of $6,145,000 for the purpose of making
the following improvements, to -wit: $5,300,000 for the
purpose of extending and improving the City's waterworks
system (being the entire amount voted for such purpose) and
$845,000 f r the purpose of extending and improving the
City's sanitary sewer system (being the entire amount voted
for such purpose), 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 May 1,
1979, shall be numbered consecutively from 1 through 1,229,
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
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
I
Amount
Year Amount
$145,000
1990
$350,OOQ
175,000
1991
350,000
200,000
1992
400,000
225,000
1993
400,000
225,000
1994
400,000
275,000
1995
400,000
300,000
1996
400,000
325,000
1997
400,000
350,000
1998
475,000
350,000
ided, however, that the City reserves the
right to redeem in whole or in part, all such bonds maturing
in the years 1990 through 1998 on February 1, 1989, or 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.
-3-
103
Ordinance No. 1165
i;
a
Notice of Euch 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
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 heen timely made, shall cease to bear interest
from and after the date fixed for redemption.
ection 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
1980
throughligi -----------------------
7.2 S
All bonds
scheduled
to mature
during
the
years
1296
through
1192-------------------
s -s�% 0
All bonds
scheduled
to mature
during
the
years
1190
through
1991-----------------
S,.a
All bonds
scheduled
to mature
during
the
years
%
'L through
/ q 7 3------------------
S", c, %
0
All bonds
scheduled
to mature
during
the
,..
years
!
teb
-----------------
S. 40
All bonds
scheduled
to mature
during
the
years
J' through
/qjj ----------------
600
with said i terest to be evidenced by interest coupons payable
on February 1, 1980, and semi-annually thereafter on each
August 1 a
full.
said bonds
United Sta
charges to
February 1 until the principal sum is paid in
Slection 4: That the principal of and interest on
hall be payable to bearer, in lawful money of the
s of America, without exchange or collection
he bearer, upon presentation and surrender of
proper bond
for interest coupon, as the case may be, at the
03104
Ordinance No. 1165
4
University)
shall be
coupons s
National Bank, College Station, Texas, which bank
e paying agent for said bonds.
ection 5: That each of said bonds and interest
11 be signed by the imprinted or lithographed fac-
simile signature of the Mayor of said City and countersigned
by the imp inted 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 an 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 impressed
upon each uch bond.
ection 6: That the form of said bonds, including
the form og Registration Certificate of the Comptroller of
Public Accounts of the State of Texas to be printed and
endorsed o each bond, and the form of interest coupons to be
attached t said bonds shall be, respectively, substantially
as follows:
RM
the County
hereby pro
and to pay
rate of _
able Febru
(FORM OF BOND)
$5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
UTILITY SYSTEM REVENUE BONDS
SERIES 1979
n February 1, , the City of College Station, in
of Brazos, State of Texas, for value received,
ises to pay to bearer the principal amount of
FIVE THOUSAND DOLLARS
interest thereon, from the date hereof, at the
_% per annum, evidenced by interest coupons pay-
ry 1, 1980, and semi-annually thereafter on each
-5-
Ordinance Oo. 1165
August 1 and February 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.
rovided, however, that said City reserves the
right to r deem, in whole or in part, all bonds of said
series maturing in the years 1990 through 1998 on February 1,
1989, or or 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 redemp-
tion, 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 late fixed for redemption.
IS BOND IS ONE OF A SERIES OF COUPON BONDS dated
May 1, 1979, issued in the aggregate principal amount of
$6,145,000 for the purpose of making the following improve-
ments, to -wit: $5,300,000 for the purpose of extending and
improving the City's waterworks system (being all of the
bonds voted for such purpose) and $845,000 for the purpose of
extending and improving the City's sanitary sewer system
(being all of the bonds voted for such purpose), 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 1, 1978, and pursuant to an ordinance passed by
the City Council of said City and duly recorded in the Minutes
of said Citv 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 Systen Revenue Refunding 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 and City of College Station,
Texas, Utility System Revenue Bonds, Series 1976, dated
August 1, 1976 (the bonds of this series of bonds and said
outstanding bonds being in ail respects o,,,. 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 P wer System, including all present and future
extensions, additions, replacements and improvements thereto
after deduction therefrom of the reasonable expense of operation
and mainten nce of said Systems. The holder hereof shall
never have he right to demand payment of this obligation out
of any fund raised or to be raised by taxation.
im
cm
Ordinance Igo. 1165
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.
T IS HEREBY CERTIFIED, RECITED AND REPRESENTED
that the i suance 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 happe ed in regular and due time, form, and manner, as
required b3 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 witl and of equal dignity in all respects, are payable
solely fro and secured by a first lien on and pledge of the
revenues o the combined Waterworks System, Sewer System and
Electric Light and Power System of said City, after deduction
of reasona le operating and maintenance expenses.
coupons ati
lithograph(
and counter
signature (
said City I
on this boi
N WITNESS WHEREOF, this bond and the interest
ached hereto have been signed by the imprinted or
d facsimile signature of the Mayor of said City
signed by the imprinted or lithographed facsimile
f the City Secretary, and the official seal of
as been duly impressed, printed, or lithographed
d, all as of the 1st day of May, 1979.
Mayor, City of College Station,
Texas
City Secretary, City of ,
College Station, Texas
(FORM OF REGISTRATION CERTIFICATE)
COMPTROLLE 'S REGISTRATION §
CERTIFICAT § REGISTER NUMBER
record in r
the State (
examined b]
been issue(
the State
obligation
solely fror
bond has tl
HEREBY CERTIFY that there is on file and of
y office a certificate of the Attorney General of
f Texas to the effect that this bond has been
him as required by law; that he finds that it has
.n conformity w;_th the Constitution and laws of
f Texas; and than it is a valid and binding special_____
upon the City of College Station, Texas, payable
the revenues pledged to its payment, and said
is day been registered by me.
IWJM
33107
Ordinance No. 1165
ITNESS MY HAND AND SEAL OF OFFICE this day
of , 19_
Comptroller of Public Accounts
of the State of Texas
(FORM OF INTEREST COUPON)
No. $
n 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 Univer-
sity Natiorial 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 arid without right to demand payment out of any funds
raised or o be raised by taxation, said sum being interest
due that d to on the CITY OF COLLEGE STATION, TEXAS, UTILITY
SYSTEM REV NUE BONDS, SERIES 1979, dated May 1, 1979.
kl0 ► •
Mayor
City Secretary
ection 7: That the following terms shall have the
respectivelmeanings specified:
a) The term "City" refers to the City of College
Station, T xas, 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, anc Electric Light and Power System, including all
present and future extensions, additions, replacements <<nd
improvements thereto.
* The phrase between the asterisks will be deleted on all
interest coupons attached to bonds maturing on or prior
to February 1, 1989.
Ordinance Wo. 1165
7
4
nues deri
nance shal
reasonable
c) The term "Systems Fund" shall mean all reve-
from the Systems.
d) The term "Net Revenues" as used in this ordi-
mean the gross revenues of the Systems less the
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 s rvice to the City and the inhabitants thereof, or
such as might be necessary to meet some physical accident or
condition v,rhich would otherwise impair the bonds authorized
by this or inance and any additional bonds permitted to be
issued her under, shall be deducted in determining "Net
Revenues."
e) The term "Bonds" shall mean the $6,145,000 of
bonds auth rized by this ordinance.
f) The term "Additional Bonds" means the addi-
tional bon s and other evidences of indebtedness which the
City reser es 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 196 , dated February 1, 1967, (ii) the City of College
Station Wa erworks and Sewer System and Electric Light and
Power Syst
1967, (iii
System Rev
the City o
Bonds, Ser
College S
Revenue Bonds, Series 1967, dated February 1,
the City of College Station, Texas, Utility
,Ae Bonds, Serie:- ? 971, dated August 1, 1971, (iv)
College Station, Texas, Utility System Revenue
es 1973, dated August 1, 1973, and (v) the City of
tion, Texas, Utility System Revenue Bonds, Series
Ordinance No. 1165
1976, dated August 1, 1976. 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
the "Refunding Ordinance") authorizing the issuance of $333,000
City of College Station Waterworks and Sewer System and
Electric L'ght and Power System Revenue Refunding Bonds,
Series 1961.
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 an security of the Bonds, the Outstanding Bonds, and
the Additi nal 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 b the Systems which will provide revenues sufficient
at all times:
(1) To pay all operation, maintenance, depreciation,
replacement and betterment charges of the System;
() To establish and maintain the Bond Fund; and
() 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 shouluI the City or any of its agencies
or instrumentalities make use of the services and facilities
of the Syst
be made by
, payment of the reasonable value thereof shall
e City out of funds derived from sources other
-10 - 03110
Ordinance No. 1165
than the revenues and income of the Systems; and (B) deposits
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
administered 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
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; pr vided, however, that if no such bonds are readily
available f r purchase at not exceeding the principal amount
thereof, th n such excess revenues may be used for any lawful
purpose.
Suction 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 e idences 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 rev hues of the Sy-7t.^mc in the same manner and to the
same extentlas are the bonds authorized by this ordinance,
and the bo
bonds and c
be of equal
authorized herein and such additional parity
r evidences of indebtedness may in all respects
Idignity. It is provided, however, that no such
-11-
03111
Ordinance $Io. 1165
additional parity bonds or other evidences of indebtedness
shall be i sued unless:
a) As long as any of the Outstanding Bonds are
outstandinc and unpaid, all material conditions set forth in
the ordinance or ordinances authorizing the then outstanding
Bonds aresatisfied; 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) 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
eviden e of indebtedness is adopted were equal to
at lea t 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 indebtedness,
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 ystem and the Electric Light and Power
System exclusive of income received specifically
for ca .:_tal 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 or depreciation; and
-12 - 03M
Ordinance No. 1165
ii) Said additional bonds or other evidences
of in ebtedness are made to mature on February lst
in eaph 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 lona as anv of
the Bonds Eire 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 tyre of business. This ordinance shall not be
construed as requiring the City to expend any funds which
are derive6 from sources other than the operation of the
Systems, but nothing herein shall be construed as preventing
the City f om 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 a y of the Bonds, complete financial statements of
the Systems in reasonable detail covering such fiscal year,
certified b the City's Auditor. Any purchaser, holder or
I"` holders of 5° of the outstanding bonds of said Systems
shall have he right at all reasonable times to inspect the
Systems and all records, accounts and data of the City
relating th ,-eto .
Sction 14: That the City hereby further covenants
as follows:
-13 - 031.1.3
Ordinance Oo. 1165
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 inclu ive, Revised Civil Statutes of the State of
Texas, witl 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 pond of this issue or of the
outstanding Bonds.
( ) 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.
( ) That, so long as any of the Bonds, the Out-
standing Boads, 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.
( ) That no free service of the Systems shall be
allowed, and should the City or any of its agencies or
instrumenta ities'make use of the services and facilities of.
the Systems payment of the reasonable value thereof shall be
ma
de by the City out of funds from sources other than the
revenues and income of the Systems.
( ) To the extent that it legally may, the City
further-covcn.ants and agrees that, so long as any of the
Bonds or Outstanding Bonds or any interest thereon is outstand-
ing, no franchise shall be granted for the installation or
4
operation o any competing Systems, that the City will prohibit
+fir'
-�4- 33114
Ordinance No. 1165
a
099
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 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 sea of said Comptroller shall be impressed or
printed, or lithographed on each of said bonds.
S ction 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 arbi -face bonds thereunder.
Section 18: 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
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Ordinance No. 1165
that the b�ds submitted by JERK/ VVi rTd52 �Q(�-:YN0t-a5 %NC',
,4N3 Assdctl,*TEs 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 $ tti S,p ® subject to the unqualified
approving opinion, as to the legality of said bonds, of the
Attorney G neral 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 purch se price. The Mayor, City Secretary and other
appropriate officers of the City are authorized and directed
to performlall acts necessary and/or convenient to carry out
the terms of this Ordinance.
ection 19: That this Ordinance shall take effect
immediately upon its adoption.
PASSED AND APPROVED this the 28th day of June,
1979.
CIT OF COLLEGE STATION, TEXAS
Mayor
u
City ecre ary
[SEAL]
M
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