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HomeMy WebLinkAboutOrdinance No. 80-13 ORDINANCE N0 . �� `� AN ORDINANCE AUTHORIZING THE ISSUANCE OF $60, 000 CITY OF FRIENDSWOOD, TEXAS , CERTIFICATES OF OBLI- GATION, SERIES 1980; RATIFYING AND CONFIRMING THE AWARD OF CONTRACT; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT. ��C :�C :C ��� WHEREAS , the City Council of the City of Friendswood, Texas , (the "City") , by resolution passed and approved on January 22 , 1979, authorized the publication of a notice to bidders and notice of intention to issue certificates of obli- gation for the purpose of purchasing certain equipment for the City, to-wit : a 1500 gallon tanker with CPK-3 pump to be used by the City in fighting fires ; and WHEREAS , in such notice to bidders and notice o� intention to issue certificates of obligation, 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 equipment would be let, and of the intention 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 equipment , in- cluding the cost of professional services incurred in connection therewith; and WHEREAS, on the date specified in said notice to bidders , to-wit: March 5 , 1979 , the City Council caused the bids re- ceived to be opened and tabulated; and WHEREAS , all such bids were tabulated and the bid of Martin Apparatus & Equipment, Houston, Texas , (hereinafter called the "Contractor") , in the amount of $61 , 931 was the lowest and best bid for such equipment, and the City Council hereby finds and determines that said Contractor is the lowest responsibile bidder ; and j,THEP.EAS , it is hereby found and declared that such bid in every respect meets the specifications 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 for such assignment; and WHEREAS , a contract has been heretofore awarded to said Contractor and its 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 FRIENDSWOOD, STATE OF TEXAS : Section l . The matters and facts recited 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. Section 3 . The City' s negotiable certificates of obliga- tion, to be designated CITY OF FRIENDSWOOD, TEXAS , CERTIFICATES OF OBLIGATION, SERIES 1980 , (hereinafter called "Certificates") , are hereby authorized to be issued and delivered in the principal amount of $60, 000 for the purpose of evidencing the indebtedness of the City for all or any part of the cost of purchasing equipment for the City, to-wit : a 1500 gallon tanker with CPK-3 pump to be used by the City for fighting fires , in strict conformity with the Constitution and laws of the State of Texas , particularly Article 2368a, l . V. T .C. S . , as amended. Section 4. Said Certificates shall be dated September 1 , 1980 , shall be numbered consecutively from 1 through 12 , shall be in the denomination of $5 , 000 each, and shall mature serially -2- on September 1 af each of the years and in the amounts , respectively set forth in the following schedule : YEAR AMOUNT 1981 $10, 000 1982 $10 , �00 1983 $10, 000 1984 $10 , 000 1985 $20, 000 The Certificates , in whole or in part, may be redeemed prior to their scheduled maturities , at the option of the City, at any time and in the manner provided in the Form of Certificate set forth in this ordinance. Section 5 . The Certificates shall bear interest at the rate of 7 % per annum, with interest payable on the dates indicated in the Form of Certificate set forth in this ordi- nance . Section 6 . The Certificates , and the interest coupons appertaining thereto , shall be payable , sha11 have the character- istics , shall be subject to prior redemption, shall be signed and executed, and the Certificates shall be sealed, all as provided and in the manner indicated in the Form of Certificate set forth in this ordinance. Section 7 . The form of the Certificates and the form of the aforementioned interest coupons , which shall appertain and be attached initially to each of the Certificates , shall be, respectively, substantially as follows : FORM OF CERTIFICATE N0. $5 , 000 UNITED STATES OF AMERICA S1ATE OF TEXAS COUN1'Y OF GALVESTON CITY OF FRIENDSja00D, TEXAS CERTIFICATE OF OBLIGATION SERIES 1980 The CITY OF FRIENDSWOOD, in the County of Galveston, State of Texas , for value received, acknowledges itself indebted to -3- and hereby promises to pay to bearer on the lst day of September , 19 , the sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof at the rate of 7 % per annum, interest payable March l, 1981 , and semi- annually thereaf ter on September 1 and March 1 of each year whiTe this Certificate is outstanding . The principal of this Certificate and the interest coupons appertaining hereto shall be payable to bearer, upon presentation and surrender of this Certificate or proper interest coupon, at Friendswood Bank � Friendswood , Texas , which shall be the Paying Agent for this series of Certificates . THIS CERTIFICATE IS ONE OF A SERTES OF NEGOTIABLE CERTIFI- CATES OF OBLIGATION, dated September 1 , 1980 , numbered from 1 through 12, in the denomination of $5 , 000 each, aggregating $60, 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, and pursuant to an ordinance adopted by the City Council of the City on August 18 , 1980 , for the purpose of evidencing the indebtedness of said City for all or any part of the purchase price of equipment to-wit : a 1500 gallon tanker with CPK-3 pump to be used by the City for fighting fires . THE CITY reserves the right, at its option, to redeem, prior to maturity, the outstanding Certificates of this series , in whole or in part, on any interest payment date, for the princi- pal amount thereof and accrued interest thereon to the date fixed for any such redemption. NOTICE OF each exercise of such reserved right of redemption shall be given in writing to the Paying Agent and by publication one (1) time in a financial journal or publication of general circulation in the United States of America, which notice shall be mailed to the Paying Agent and published in such journal at least thirty (30) days prior to the date fixed for redemption. -�- By the date fixed for redemption, due pxovision shall be made with the Paying Agent far payment of the principal amount of the Certificates to be thus redeemed, plus unpaid accrued in- terest to the date fixed for redemption. When such Certifi- cates have been called for redemption, in whole or in part , and due provision has been made to redeem the same as herein provided, the Certificates thus redeemed shall no longer be regarded as outstanding except for the purpose of receiving payment solely from the funds thus provided for redemption and the rights of the owners or holders to collect interest which would otherwise accrue after the redemption date on the Certificates called for redemption shall terminate on the date fixed for redemption. IT IS HEFEBY CERTIFIED, RECITED, AND COVENANTED 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 per- formed, 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 becomes 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 (1) to be a "Security" within the �eaning of Chapter 8 , Investment Securities , Uniform Corrunercial Coae (Chapter 785 , Acts of the 60th Legislature of Texas , Regular Session, 1967) , and (2) to be a general obligation of the City within the meaning of Chapter 784, Acts of the 61st Legislature of Texas , Regular Session, 1969 . I�' ti�7ITNESS WHEREOF, the City Council of the City of Friendswood, -5- Texas , has caused the official seal of the City to be impressed or placed in facsimile hereon, this Certificate and the interest coupons appertaining hereto to be signed with the fascimile signature or subscription of the Mayor and countersigned with the fascimile signature or subscription of the City Secretary. Mayor COUNTERSIGNED: City Secretary (SEAL) FORM OF INTEREST COUPON: N0. $ ON , 19 , unless the Certificate to which this coupon pertains has been properly called for redemp- tion in accordance with its terms , the City of Friendswood, in the County of Galveston, State of Texas , hereby promises to pay to bearer, without exchange or collection charges , the amount shown on this interest coupon, in any coin or currency which on such date is legal tender for the payment of debts due the United States of America, upon presentation and surrender of this in- terest coupon, at Friendswood Bank � Friendswood � Texas , being interest due that date on the Certificate, bearing the number hereinafter designated, of that issue of CITY OF FRIENDSWOOD, TEXAS , CERTIFICATES OF OBLZGATION, SERIES 1980, dated September l , 1980 . Certificate No . �layor City Secretary -6- Section 8 . A special fund or account, to be designated the "City of Friendswood, Texas , Certificates o� Obligation, Series 1980, 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 sha11 be kept separate and apart from all other funds and accounts of the City and shall be used only for pay�ng the interest on and principal of said Certificates . All ad valorem taxes levied and collected for and on account of said Certificates shall be depos- ited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of said Certificates are out- standing and unpaid, the City Council of the City sha11 compute and ascertain a rate and amount of ad valorem taxes which will be sufficient 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 prin- cipal of such Certificates as such principal matures , but never less than 2% of the original principal amount of the Certifi- cates 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 valorem tax are hereby levied, against all taxable property in the City for each year while anyo uf the Certificates are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the Interest and Sinking Fund. Said ad valorem t�es suffi- cient to provide for the payment of the interest on and princi- pal of the Certificates , as such interest comes due and such principal matures , are hereby pledged irrevocably for such pay- ment within the limits prescribed by law. Section 9 . The Contractor is now prepared and able to deliver to the City the equipment described in the contract mentioned in the preamble hereof . Upon such delivery and acceptance by the City, $60, 000 of the purchase price of such -7- equipment shall be funded by a like amount of Certificates and the remaining $1, 931 of such purchase price shall be paid in cash from the general funds of the City, Section 10. The resolution passed and approved on Janu- ary 22, 1979 , by the City Council of the City authorizing publi- cation of notice to bidders and notice of intention to issue certificates of obligation is hereby approved, readopted, rati- fied, and conf irmed. Section 11 . The Mayor and aIl ather appropriate off icers 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 take effect iirIInediately upon its passage. Section 13 . It is hereby officially found and determined that the need of the City for such financing creates an emer- gency 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 adopting of this ordinance; and the NOTICE OF PZEETING relating to said meeting and hereto- fore posted by the City Secretary, and the posting thereof, are hereby authorized, approved, adopted, ratified, and confirmed. PASSED, APPROVED, Ar1D ADOPTED this 18th day of August , 1980 . � � ��/ �/"� � � �� �ayor �. ATTEST: � F .-�.� ��,{-� .� City Secretary (SEAL) APPROVED AS TO FORM: . E%��--� �'�-a�r�--z- ty Attorney „��" -8-