HomeMy WebLinkAboutOrdinance No. 82-23 .w_,, • -
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ORDINANCE N0. ��-���
AN ORDII�ANCE AUTHORIZING THE ISSUANCE OF $38, 500 CITY
OF FRIENDSWOOD, TEXAS, CERTIFICATES OF OBLIGATION,
SERIES 1982, FOR THE PURPOSE OF EVIDENCING THE
� INDEBTEDNESS OF THE CITY FOR ALL OR ANY PA1�T OF THE
COST OF PURCHASING A HEAVY-DUTY DUMP TRUCK; AND
CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT.
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WHEREAS, the City Council of the City of Friendswood, Texas
( "City") , by Resolution passed and approved on L� -- �f- �,�, ,
authorized the publication of a notice to bidders and notice of
intention to issue certificates of obligation for the purpose
of purchasing certain equipment for the City, to-wit : a
heavy-duty dump 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 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
authorize, by ordinance, the issuance of certificates of
obligaton 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 ; and,
WHEREAS, the City has , in accordance with the provisions of
the City Charter and applicable State law, published notice of
and received competitive bids for the purchase of said
heavy-duty dump truck, and the City Council has found that the
lowest , responsive, responsible , and best bid was submitted by
North American Manufacturing Corporation ("Supplier") , in the
amount of $38, 500; and,
WHEREAS, it is hereby found and declared that the price at
which said Supplier of said equipment is willing to sell the
same to the City is fair and reasonable ; and,
ti9HEREAS, a contract has been heretofore awarded to said
Supplier and its award is hereby in all respects ratified,
adopted, and confirmed ; and
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WHEREAS, it is further 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 ; PdOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
STATE OF TEXAS :
Section 1 . 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' s negotiable certificates of
obligation, to be designated CITY OF FRIENDSWOOD, TEXAS,
CERTIFICATES 4F OBLIGATION, SERIES 1982, (hereinafter called
"Certificates") , are hereby authorized to be issued and
delivered in the principal amount of $38, 500 for the purpose of
evidencing the indebtedness of the City for all or any part of
the cost of purchasing said heavy-duty dtimp truck, to-wit : 1980
GMC Brigadier Dump Truck, GVWR 52,000. Said Certificates sha11
be issued in strict conformity with the Constitution and laws
of the State of Texas, particularly Article 2368a. 1 , V.T. C.S. ,
as amended.
Section 3. Said Gertificates shall be dated November 1 ,
1982, shall be numbered consecutively from 1 through 10, with
Certificate No. 1 being in the denomination of $2, 500 and
Certificates Nos . 2-10 being in the denomination of $5, 000
each, and shall mature serially on November 1 of each of the
years , and in the amounts respectively, set forth in the
following schedule :
YEAR AMOUNT
1983 $6, 500
1984 $8, 000
1985 $8, 000
1986 $8, 000
1987 $8, 000
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The Certificates , in �ahole 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 4. The Certificates shall bear interest at the
rate of 8. 5% per annum. Said interest shall be evidenced by
interest coupons which shall appertain to the Certificates and
shall be payable in the manner provided and on the dates stated
in the FORM OF CERTIFICATE set forth in this Ordinance.
Section 5. The Certificates , and the interest coupons
appertaining thereto, shall be payable , shall have the
characteristics , 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 6. 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. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF HARRIS AND GALVESTON
CITY OF FRIENDSti900D, TEXAS
CERTIFICATE OF OBLIGATION
SERIES 1982
The CITY OF FRIENDSWOOD, in the Counties of Harris and
Galveston, State of Texas , for value received , acknowledges
itself indebted to and hereby promises to pay to bearer on the
lst day of November, 19 , the sum of
DOLLARS
and to pay interest thereon from the date hereo£ at the rate of
8. 5$ per annum, interest payable riay 1 , 1983, and semi-annually
thereafter on November 1 and May 1 of each year while this
Certificate is outstanding. The principal of this Certificate
and the interest coupons appertaining hereto shall be payable
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to bearer, upon presentation and surrender of this Certificate
. or proper interest coupon, at TEXAS COMA4ERCE BANK-FRIENDSWOOD,
Friendswood, Texas, which shall be the Paying Agent for this
series of Certificates.
THIS CERTIFICATE IS ONE OF A SERIES OF NEGOTIABLE
CERTIFICATES OF OBLIGATION, dated November 1 , 1982, numbered
from 1 through 10, with Certificate No. 1 being in the
denomination of $2, 500, and Certificates Nos. 2-10 being in the
denomination of $4, 000 each, aggregating $38, 500, 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 November , 1982, for the
purpose of evidencing the indebtedness of said City for all or
any part of the purchase price of a heavy-duty dump truck for
said City, to-wit : a 1980 GMC Brigadier Dump Truck, GVWR 52, 000.
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 any such redemption.
NOTIGE OF each exercise of such reserved right of
redemption sha11 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
provision shall be made with the Paying Agent for payment of
the principal amount of the Certificates to be thus redeemed,
plus any applicable premium and unpaid accrued interest to the
date fixed for redemption. When such Certificates 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
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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 iahich would otherwise
accrue after the redemption date on the Certificates called for
redemption shall terminate on the date fixed for redemption.
IT IS HEREBY 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
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 a� valorem taxes
sufficient to provide for the payment of the interest an and
principal of this Certificate, as such interst becomes due and
such principal matures , have been levied and ordered to be
levied against all taxahle property in the City and have been
pledged irrevocably for such payment within the limits
prescribed by law.
IN WITNESS WHEREOF, the City Council of the City of
Friendswood, 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 facsimile signature or subscription of the Mayor and
countersigned with the facsimile signature or subscription o£
the City Secretary.
Mayor
COUNTERSIGNED:
City Secretary
(SEAL)
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FORM OF INTEREST COUPON:
N0. �
. ON , 19 , unless the Certificate
to which this coupon pertains has been properly called for
redemption in accordance with its terns , the City of
Friendswood, in the Counties of Harris and 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 o£ debts due the United States of A�erica , upon
presentation and surrender of this interest coupon, at Texas
Commerce Bank-Friendswood , Friendswood , Texas , being interest
due that date on the Certificate, bearing the number
hereinafter designated, of that issue of CITY OF FRIENDS�900D,
TEXAS, C�RTIFICATES OF OBLIGATION, SERIES 1982, dated November
1 , 1982. Certificate No. •
Mayor
City Secretary
�Section 7. A special fund or acount, to be designated the
"City of Friendswood , Texas , Certificates of Obligation, Series
1982, Interest and Sinking Fund, " (hereinafter called the
"Interest and Sinking Fund") is hereby created and shall be
established and maintained by the City at an official
depository bank o£ the City. The Interest and Sinking Fund
shall be kept separate and apart from all other funds and
accounts of the City and shall be used only for paying the
interst on and principal of said Certificates. All ad valorem
taxes levied and collected for and on account of said
Certificates shall be deposited , as collected, to the credit of
the Interest and Sinking Fund. During each year while any of
said Certificats are outstanding and unpaid, the City Council
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of the City shall 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 principal of such Certificates as such
principal matures , but never less than 2$ of the original
principal amount of the Certificates 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, and are hereby
ordered to be levied, against all taxable property in the City
for each year �ahile any of 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 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 irrevocable for such payment within the limits
prescribed by law.
Section 8. The Supplier 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, the purchase price of $38, 500 for such
equipment shall be funded by a like amount of Certificates.
Secton 9. The Resolution passed and approved on
, by the City Council of the City authorizing
notice of intention to issue certificates of obligation is
hereby approved, readopted , ratified, and confirmed.
Section 10. 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 11 . The City covenants to and with the purchasers
of the Certificates that it will make no use of the proceeds of
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the Certificates at any time throughout the term of this issue
= of Certificates which, if such use had been reasonably expected
' on the date of delivery of the Certificates to and payment for
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the Certificates by the purchasers, would have caused the
Certificates to be arbitrage bonds within the meaning of
Section 103(c) of the Internal Revenue Code of 1954, as
amended, or any regulations or rulings pertaining thereto ; and
by this covenant the City is obligated to comply with the
requirements of the aforesaid Section 103(c) and all applicable
and pertinent Department of the Treasury regulations relating
to arbitrage bonds. The City further covenants that the
proceeds of the Certificates will not otherwise be used
directly or indirectly so as to cause all or any part of the
Certificates to be or become arbitrage bonds within the meaning
of the aforesaid Secton 103(c) or any regulations or rulings
pertaining thereto.
Section 12. This Ordinance shall take effect immediately
upon its passage.
PASSED, APPROVED AND ADOPTED this � day of ���2,�E-,��.��t� ,
1982.
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blayor
ATTEST:
c� � �� L�
ity Secretary
(SEAL)
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