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HomeMy WebLinkAboutOrdinance No. 265 . . . F ORDINANCE NO. � �P� AN ORDINANCE AUTHORIZING THE ISSUANCE OF $55, 000 CITY OF FRIENDSWOOD, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1976; RATIFYING CONTRACT; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT 1 1 ��� h� WHEREAS, the City Council of the City of Friendswood, Texas, (the "City"), by motion adopted and approved on January 19, 1976, au- thorized the publication of a notice to bidders and notice of intention to issue certi.ficates of obligation for the purpose of purchasing certain fire fighting equipxnent for the City, to-wit: a Class A, triple combination puxnper fire truck; and WHEREAS, in such notice to bidders and notice of intention to issue certificates of obligation, the City gave due and proper notice in accordance with applicable 1aw of the time and place when and where a contract for the purchase of such machinery would be let, and of the intention of the City to issue certificates of obligation payable from ad valorem taxes for the purposes of evidencing the indebtedness of the City for al1 or any part of the cost of purchasing said fire fighting equipment; and WHEREAS, on the dates specified on said notice to bidders, to-wit March 22, 1976, the City Council called the bids received to be opened and tabulated; and WHEREAS, al:l such bids were tabulated and the bid of FMC Cor- poration of Tipton, Indiana (the "Contractor"), in the amount of $67, 370 was the lowest and best bid for such wor�, and the City Council hereby finds and determines that said contractor is the lowest responsible bidder; and WHEREAS, it was then and it is now found and declared that such bid in every respect meets the speci.fi.cations mentioned in the notice to bidders; and WHEREAS, said Contractor elected at the time of the receipt of such bids to assign such certificates of obligation without discount to Friendswood Bank of Friendswood, Texas, with which the City Council has made provisions and such assignment; and WHEREAS, a contract has heretofore been awarded to said Con- tractor and such award is hereby in all respects ratified, adopted, and confirmed; and 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 ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDS- WOOD, STATE OF TEXAS: Section 1. The matters and facts recited in the preamble of this ordinance are hereby adopted and declared to be true and correct. Section 2. The City Council hereby ratifies, confirms, and approves in a11 respects the contract mentioned in said preamble. Section 3. The City's negotiable certificates of obligation, to be designated CITY OF FRIENDSWOOD, TEXAS, CERTIFICATES OF OBLI- GATION, SERIES 1976 (the "Certificates"), are hereby authorized to be issued and delivered in the principal amount of $55, 000 for the purpose of evidenci.ng the indebtedness of the City for a11 or any part of the cost of purchasi.ng fire fighting equipment for the City, to-wit: a C1ass A, triple combination pumper fire truc�, in strict conformity with the Constitution and laws of the State of Texas, particularly A rticle 2368a. 1, V. T. C. S. , as amended. -2- Section 4. Said Certificates sha11 be dated July 1, 1976, shall be numbered consecutively from 1 through 11, shall be in the denomina- tion of $5,000 each, and shall mature serially on Ju1y 1 of each of the years, and in the amounts, respectively, set forth in the following schedule: YEAR AMOUNT 1977 $10,000 1978 $10,000 1979 $10, 000 1980 $10, 000 1981 $15, 000 The Certificates may be redeemed prior to their scheduled maturities, at the option of the City, at any time after delivery in the manner provided in the Form of Certificates set forth in this ordinance. Section 5. The Certificates shall bear interest from the date of initial 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 Certifi- cates set forth in this ordinance. Section 6. The Certificates shal.l be registerable both as to prin- cipal and i.nterest, shall be payable, and sha11 have the chaxacteristics, 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 Certificates, i.ncluding the form of the Certificate of Registration, shall be, respectively, substantially as follows: FORM OF CERTIFICATE: NO. $ UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF GALVESTON CITY OF FRIENDSWOOD, TEXAS CERTIFICATE OF OBLIGATION SERIES 1976 -3- ON JULY 1, 19 , the CITY OF FRIENDSWOOD (hereinafter called the "City"), in the County of Galveston, in the State of Texas, prom- ises to pay to bearer or, if this certificate is registered, to the registered ovcmer hereof, the principal amount of THOUSAND DOLLARS and to pay i.nterest thereon, FROM THE DATE OF INITIAL DELIVERY 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, 1977, and semiannually thereafter on each January 1 and Ju1y 1 while this certificate is outstanding. Both pri.ncipal of and interest on this certificate sha11 be payable, without exchange or collec- tion charges to the owners or holders, upon presentation and, in the case of the principal when due, surrender of this certificate at THE FRIENDS- WOOD BANK, FRIENDSWOOD, TEXAS, which shall be the paying agent for this series of certi.ficates. THIS CERTIFICATE is one of a series of negotiable, registrable Certificates of Obligation, dated July 1, 1976, numbered from 1 through 11, in the denomination of $5, 000 each, aggregating $55, 000 and issued in accordance with the Constitution and laws of the State of Texas, pax- ticularly Article 2368a. 1, Vernon's Texas Civi1 Statutes, as amended, for the purpose of evidencing the indebtedness of said City for all or any part of the purchase price of fire fighting equipment for sa.id City, to-wit: a C1ass A, triple combination pumper fire truck, in strict conformity with the Constitution and laws of the State of Texas, particulaxly Article 2368a. 1, V. T. C.S., as amended, and pursuant to an ordinance adopted by the City Council of the City on the 20th day of September, 1976. THE CITY RESERVES THE RIGHT TO REDEEM the outstanding certificates of this series on any date prior to their scheduled maturities, -4- • • . • � ( at the option of the City, IN WHOLE OR IN PART, for the principal amount thereof and accrued interest thereon to the date fi.xed for any 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, i.n a newspaper of general circulation in the City of Friendswood. By the date fixed 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, all as provided above, the certificates which are to be so redeemed thereby automatically sha11 be redeemed prior to their schedule maturities; and they shall not be regarded as being outstanding except for the purpose of being paid by the paying agent with the funds so provided for such payment. IT IS HEREBY certified, recited, and convenanted that this certifi- cate has been duly and validly authorized, issued, and delivered; that a11 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 law; 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, -5- when delivered, this certificate sha11 be deemed and construed (i) to be a "Security" within the meaning of Chapter 8, Investment Securities, Uniform Commercial Code (Chapter 785, Acts of the 60th Legislature, Regular Session, 1967), and (ii) to be a general obligation of the City with- in the meaning of Chapter 784, Acts of the 61st Legislature of Texas, Regular Session, 1969. This certificate shall be transferable by delivery unless registered as to principal in the owner's name upon books of the City to be l�ept for that purpose at the office of the City Secretary of the City, the registrar, such registration to be noted hereon. After such registration, no transfer of this certificate shall 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 being in like manner transferred to bearer, whereupon transferability by delivery sha11 be restored; and this certificate may a.gain 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 facsimile, on this certificate. DATE OF INITIA.L DELIVERY OF THIS CERTIFICATE , 1976. Mayor COUNTERSIGNED: City Secretary (SEA L) -6- • c CERTIFICATE 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 be7.ow, on the books kept by me for such purpose. The principa;al. of and interest on this certificate shal'1 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 shal.l. be to bearer, the prin- cipal and in�erest of this certificate shall be payable to bearer, and such certi.ficate shatl be in alI respects negotiable. Signature of Name of Date of City Secretaxy Registered Holder Registration (Registrar) Section 8. A special fund or account, to be designated the "City of Friendswood, Texas, Certificates of Obligation, Series 1976, Interes� and Sink.ing Fund" (the "Interest and Sinking Fund"), is hereby created and shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund sha].I be kept separate and apar� from a11 other funds and accounts of the City and shall be used only for pay- ing the i.nterest on and pri.ncipal of said Certi.ficates. A11 ad valorem taxes -7- levied and collected for and on account of said Certificates sha11 be depos- ited, as collected, to the credit of the Interest and Sinking Fwnd. During each year while any of said Certificates axe outstanding and unpaid, the City Council of the City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on the Certi.ficates as such interest comes due and to provide and maintai.n a sinking fund adequate to pay the principal of such Certificates as such principal matures but never less than 2% of the original principal amount of the Certi.ficates as a sinking fund each yeax; and said tax shall be based on the latest approved tax rolls of the City, with fu11 allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax are hereby levied, and are hereby ordered to be levied, against al1 taxable property in the City for each year whil.e any of the Certificates are outstanding and unpaid; and said tax shall be assessed and collected each such yeax and deposited to the credit of the Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Certifi- cates, as such interest comes due and such principal matures, axe hereby pledged irrevocably for such payment within the limits prescribed by 1aw. Section 9. The Contractor is now prepared and able to deliver to the City the fire fighting equipment described in the Contract mentioned in the preamble hereof. Upon such delivery and acceptance by the City, $55, 000 of the purchase price of such fire fighting equipment sha11 be funded by a like amount of Certificates and the remaining $12, 370 of such purchase price sha11 be paid in cash from the general funds of the City. Section 10. The motion adopted on January 19, 1976, by the City Council of the City authorizing publication of notice to bidders and notice -8- �. _ of intention to issue certi.ficates of obligation is hereby approved, re- adopted, 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 shall tak.e 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 Council 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 by the City Secretaxy, and the posting hereof, are hereby authorized, approved, adopted, ratified, and confirmed. PASSED AND A.PPROVED this ��t� day of �E'ptC�/ir.0�=r' , 1976. r f '� �� � �:.��-'��='�c t./ M ayor CITY OF FRIENDSWOOD, TEXAS ATTEST: � ry � City Secretary CITY OF FRIENDSWOOD, TEXAS (SEA.L) APPROVED AS TO FORM: C ity Attorney CITY OF FRIENDSWOOD, TEXAS -9- � ___ _____ _ _