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HomeMy WebLinkAboutOrdinance No. 245 . ,,.. , _. ' � . No. � �`_...- AN ORDINANCE A.UTHORIZING ISSUANCE OF $52, 000 CITY OF FRIENDS- WOOD, TEXAS, CERTIFICATES OF OBLIGA,TION, SERIES 1975; A.WARD- ING CONTRACT; AND CONTA,INING OTHER PROVISIONS RELATING TO THE SUSJECT ,,. .,. :;: :,: THE STATE OF TEXA.S � COUNTY OF GALVESTON � CITY OF FRIENDSWOOD j WHEREAS, the City Council of the City of Friendswood, Texas (the "City"), by motion adopted May 5, 1975, authorized the publication of a notice to bidders and notice of intention to issue certificates of oblig- ation for the purpose of purchasing machinery for the City, to-wit: a ditch- ing machine to be used by the City in constructing, improving, and main- taining its drainage facilities and other public facilities; and WHEREA,S, the City Counci.l of the City of Friendswood, Texas, by resolution adopted June 16, 1975, authorized and directed the publication of a notice of intention to issue certificates of obligation for the purpose of purchasing a ditching machine to be used by the City in constructing, im- proving, and maintai.ning its drainage facilities and other public facilities; and WHEREAS, after such respective dates, the City gave due and proper notice in accordance with applicable law of the time and place when and where a contract for the purchase of such machi.nery would be let, and of the inten- tion of the City to issue certificates of obligation payable from ad valorem taxes for the purpose of evidencing the indebtedness of the City for all or any part of the cost of purchasing said machinery, including the cost of professional services incurred in connection therewith; and 7- ��`� . ...t --., WHEREAS, on the date specified in said notice to bidders, to-wit June 2, 1975, the City Council cause the bids received to be opened and tabulated; and WHEREA.S, a11 such bids had been tabulated and the bid of Case Power and Equipment Company of Houston, Texas (hereinafter called "the Contractor"), in the amount of $52, 154.00 is the lowest and best bid for such work, and the City Council hereby finds and determines that said Contractor is the lowest responsible bidder; and WHEREA,S, it is hereby found and declared that such bid in every respect meets the plans and specifications mentioned in the notice to bidders; and WHEREA.S, said Contractor elected at the time of the receipt of such bids to assign such certificates without discount to Friendswood Bank of Friendswood, Texas, with which the City Council has made provisions for such assignment; and WHEREA.S, a contract has this date been avvarded to said Contractor and its award is hereby i.n all respects rati.fied, adopted, and confirmed. WHEREAS, it is hereby found and declared that the City Council is authorized to proceed with the issuance of such certificates of obligation in accordance with the terms of this ordinance; now therefore, BE IT ORDA,INED BY THE CITY COUNCIL OF THE CITY OF FRIENDS- WOOD, TEXAS: Section 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2. The City Council hereby ratifies, confirms, and approves in all respects the contract mentioned in said preamble. -2- � r . Section 3. The Cityt s negotiable certificates of obligation, to be designated CITY OF FRIENDSWOOD, TEXAS, CERTIFICATES OF OBLIG- ATION, SERIES 1975 (hereinafter called "Certi.ficates"), are hereby authorized to be issued and delivered in the principal amount of $52,000 for the purpose of evidencing the indebtedness of the City for a11 or any part of the cost of purchasing machinery for the City, to-wit: a ditching machine to be used by the City for constructing, improving, and maintaining its drainage facilities and other public facilities, in strict conformity with the Constitution and laws of the State of Texas, particularly A.rticle 2368a. 1, V.T. C.S., as amended. Section 4. Said Certificates shall be dated July 1, 1975, shall be numbered consecutively from 1 through 11, Certificates numbers 1 through 10 shall be in the denomi.nation of $5, 000 each and Certificate number 11 sha11 be in the denomination of $2, 000, and shall mature serially on July 1 of each of the years, and in the amounts, respectively, set forth in the followi.ng schedule: YEA,R A.MOUNT 1976 $ 10 , 000 1977 $ 10 , 000 1978 $ 10, 000 1979 $ 10 , 000 1980 $ 12, 000 The Certificates may be redeemed prior to their scheduled maturities, at the option of the City, at any time after delivery i.n the mantier provided in the Form of Certificates set forth in this ordinance. Section 5. The Certi.ficates shall bear interest from the date of i.nitial delivery shown on the face of each certificate at the rate of 5 3/4% per annum, interest payable on the dates indicated on the Form of Certificates set forth in this ordinance. -3- Section 6. The certificates sha11 be registerable both as to principal and interest, shall be payable, and shall have the characteristics, and sha11 be signed, executed, and sealed, all as provided and in the manner indicated in the Form of Certificates set forth in this ordinance. Section 7. The form of the Certi.ficates, including the form of the Certificate of Registration, shall be, respectively, substantially as follows: FORM OF CERTIFICA.TE: NO. $ UNITED STA.TES OF AMERICA. STA,TE OF TEXAS COUNTY OF GALVESTON CITY OF FRIENDSWOOD, TEXAS CERTIFICATE OF OBLIGA.TION SERIES 1975 ON JULY 1, 19 , the CITY OF FRIENDSWOOD (hereinafter called the "City"), in the County of Galveston, in the State of Texas, promises to pay to bearer or, if this certificate is registered, to the registered owner hereof, the principal amount of THOUSAND DOLLARS and to pay interest thereon, FROM THE DATE OF INITIA.L DELIVER.Y SHOWN ON THE FACE HEREOF, to bearer or, if this certificate is registered, to the registered owner hereof, at the rate of 5 3/4% per annum, interest payable July 1, 1976, and semiannually thereafter on each January 1 and July 1 while this certificate is outstanding. Both principal of and interest on this certi.ficate shall be payable, without exchange or collection charges to the owners or holders, upon presentation and, in the case of the principal when due, surrender of this certi.ficate at THE FRIENDSWOOD BA.NK, FRIENDSWOOD, TEXA.S, which shall be the paying agent for this series of certificates. -4- THIS CERTIFICA.TE is one of a series of negotiable, registrable Certificates of Obligation, dated July 1, 1975, numbered from 1 through 11, Certificates numbers 1 through 10 in the denomination of $5, 000 each and Certificate nuxnber 11 in the denomination of $2, 000, aggregating $52, 000 issued in accordance with the Constitution and laws of the State of Texas, particularly Article 2368a. 1, Vernon's Texas Civil Statutes, as amended, for the purpose of evidencing the indebtedness of said City for all or any part of the purchase price of machinery for said City, to-wit: a ditching machine to be used by the City for constructing, improving, and maintaining its drainage facilities and other public facilities, in strict conformity with the Constitution and laws of the State of Texas, particularl.y A.rticle 2368a. 1, V. T. C. S., as amended, and pursuant to an ordi.nance adopted by the City Council of the City on the 7th day of July, 1975. THE CITY RESERVES THE RIGHT TO REDEEM the outstanding certificates of this series on any date prior to their scheduled maturities, at the option of the City, IN WHOLE OR IN PART, for the principal amount thereof and accrued interest thereon to the date fixed for a.ny such redemp- tion. At least thirty (30) days prior to the date fixed for any such redemp- tion, the City shall cause a written notice of such redemption to be delivered to the registered owners, or their duly authorized agents, of the certificates to be so redeemed or, at the option of the City, a written notice of such redemption shall be published, at least thirty (30) days prior to the date fixed for any such redemption, in a newspaper of general circulation in the City of Friendswood. By the date fi.xed for any such redemption, due provision sha11 be made with the paying agent for the payment of the required redemption price. If such written notice of redemption is given or published, and if due provision for such payment is made, al1 as provided above, the certificates which are to be so redeemed thereby automatically shall be -5- redeemed prior to their scheduled maturities; and they sha.11 not be regarded as being outstanding except for the purpose of being paid by the paying agent with the funds so provided for such payxnent. IT IS HEREBY certified, recited, and convenanted that this certificate has been duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issuance and delivery of this certificate, have been performed, existed, and been done in accordance with 1aw; that this certificate is a general obligation of the City, issued on the full faith and credit thereof; that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged irrevocably for such payment within the limits prescribed by law; and that, when delivered, this certificate shall be deemed and construed (i) to be a "Security" within the meaning of Cahpter 8, Invest- ment Securities, Uniform Commercial Code (Chapter 785, Acts of the 60th Legislature, Regular Session, 1967), and (ii) to be a general obligation of the City within the meaning of Chapter 784, Acts of the 61st Legislature of Texas, Regular Session, 1969. This certificate sha11 be transferable by delivery unless registered as to principal in the owner's name upon books of the City to be kept for that purpose at the office of the City Secretary of the City, the registrar, such registration to be noted hereon. A,fter such registration, no transfer of this certificate sha11 be valid unless made on said books at the request of the registered owner hereof, or his duly authorized agent, and similarly noted hereon; but this certificate may be discharged from registration by -6- being in like manner transferred to bearer, whereupon transferability by delivery shall be restored; and this certificate may again and from time to time be registered or made payable to bearer as before. IN WITNESS WHEREOF, this certificate of obligation has been signed by the Mayor of the City and countersigned by the City Secretary of the City, and the official seal of the City has been duly impressed, or placed in facsimi.le, on this certificate. DA.TE OF INITIA.L DELIVERY OF THIS CERTIFICA.TE: , 1975. Mayor COUNTERSIGNED: City Secretary (SEAL) CERTIFICA,TE OF REGISTRA.TION: IT IS HEREBY CERTIFIED that, at the request of the holder of the within certificate, I have this day registered it as to principal in the name of such holder as indicated in the registration blank below, on the books kept by me for such purpose. The principal of and interest on this certifi- cate sha11 be payable only to the registered holder named in the below registration blanks. If the last transfer recorded on the books of the Registrar and in the below registration blank shall be to bearer, the principal and interest of this certificate shall be payable to bearer, and such certi.ficate shall be in all respects negotiable. -?- Signature of Name of Date of City Secretary Registered Holder _ _ Registration (Registrar) Section 8. A special fund or account, to be designated the "City of Friendswood, Texas, Certificates of Obligation, Series 1975, Interest and Sinking Fund, " (hereinafter called the "Interest and Sinking Fund") is hereby created and sha11 be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart from a11 other funds and accounts of the City and sha11 be used on7.y for paying the interest on and principal of said Certificates. A11 ad valorem taxes levied and collected for and on account of said Certifi- cates shall be deposited, as collected, to the credit of the Interest an.d Sinking Fund. Duri.ng each year while any of said Certi.ficates are out- standing and unpaid, the City Council of the City shall compute and ascertain a rate and amount of ad valorem tax which will be stxfficient to raise and produce the money required to pay the interest on the Certificates as such interest comes due and to provide and maintain a sinking fund adequate to pay the principal of such Certificates as such principal matures but never less than 2% of the origina.l principal amount of the Certi.ficates as a sinking fund each year; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad va.lorem tax are hereby levied, and are hereby ordered to be levied, against a11 taxable property in the City -8- � � for each year while any of the Certificates are outstanding and unpaid; and saa.d tax shall be assessed and collected each such year and deposited to the credit of the Interest and Si.nking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. Section 9. The Contractor is now prepared and able to deliver to the City the machinery described i.n the Contract mentioned in the preamble hereof. Upon such delivery and acceptance by the City, $52, 000 of the purchase price of such machinery shall be funded by a like amount of Certificates and the remaining $154 of such purchase price shall be paid in cash from the general funds of the City. Section 10. The motion and resolution adopted, respectively, on May 5, 1975, and June 16, 1975, by the City Council of the City authorizi.ng publication of notice to bidders and notice of intention to issue certificates of obligation axe hereby approved, readopted, ratified and confirmed. Section 11. The Mayor and all other appropriate officers of the City of Friendswood are hereby authorized and directed to do any and all things necessary or convenient to carry out the provisions of this ordinance. Section 12. This ordinance sha11 take effect immediately upon its passage. Section 13. It is hereby officially found and determined that the need of the City for such financing creates an emergency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the City Cauncil at which this ordinance is adopted and for the adoption of this ordinance; and the NOTICE OF MEETING relating to said meeting and heretofore posted -9- V . • by the City Secretary, and the posting thereof, are hereby authorized, approved, adopted, ratified, and confirmed. PASSED AND APPROVED this 7th day of July, 1975. f r.�'1� � �� '�'"" . r M ayor CITY OF FRIENDSWOOD, TEXAS ATTEST: .� , . . ��y� ' ' � ,c:,.��-�..�' City Secretary CITY OF FRIENDSWOOD, T XA.S (SEA.L) A,PPROVED AS TO FORM: City Attorney CITY OF FRIENDSWOOD, TEXA.S -10-