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HomeMy WebLinkAboutOrdinance No. 83-01 ORDINANCE N0. � — AN ORDINANCE AUTHORIZING THE ISSUANCE OF $39, 000. 00 CITY OF FRIENDS1900D, TEXAS, CERTIFICATES OF OBLIGA- TION, SERIES 1983, FOR THE PURPOSE OF EVIDENCING THE INDEBTEDNESS OF THE CITY FOR ALL OR ANY PART OF THE COST OF PUP�CHASING AN AMBULANCE AND ACCESSORY EQUIP- MENT; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT. � � * � � 1�VHEREAS , the City Council of the City of Friendswood , Texas ("City") , by Resolution No. R23-82 passed and approved on August 23 , 1982 , authorized the publication of notice of inten- tion to issue certificates of obligation for the purpose of purchasing an ambulance and accessory equipment ; and , ��HEREAS, in such notice of intention to issue certificates of obligation, the City gave due and proper notice in accord- ance with applicable law of the date , time , and place when and where the City Council of the City intended to authorize , by ordinance , the issuance of certificates of obligation pa��able ' from ad valorem taxes for the purpose of evidencing the indeb- tedness of the City for all or any part of the cost of purchas- ing said ambulance and accessory equipment ; and , h�HEREAS , 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 ambu- lance and accessory equipment , and the City Council has found that the lowest , responsive , responsible , and best bid was sub- mitted by Superior Southwest , Inc. , ("Supplier") , in the amount of $39, 435. 00 ; 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 , WHEREAS, it is further found and declared that the City Council is authorized to proceed with the issuance of such cer- tificates of obligation in accordance with the terms of this Ordinance ; NOPI, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF TI�E CITY OF FRIF.NDSI'�;OOD, 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 obliga- tion, to be designated CITY OF FRIENDS�VOQD, TEXAS , CERTIFICATES OF OBLIGATION, SEP.IES 1983, (hereinafter called "Certifi- cates") , are hereby authorized to be issued and delivered in the principal amount of $39, 000. 00 for the purpose of evidenc- ing the indebtedness of the City for all or any part of the cost of purchasing said ambulance and accessory equipment. Said Certificates shall 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 Certificates shall be dated March 1 , 1983, shall be numbered consecutively from 1 through 10, with Certi- ficate No. 1 being in the denomination of $3 , 000. 00 and Certi- ficate Nos . 2 - 10 being in the denomination of $4, 000. 00 each, and shall mature serially on i��arch 1 of each of the years , and in the amounts , respectively, set forth in the following schedule : YEAR AiiOUNT � 1984 $3 , 000. 00 1985 $8 , 000. 00 1986 $8 , 000. 00 1987 $8 , 000. 00 1988 $12 , 000. 00 The Certificates , in whole or in part , may be redeemed prior to their scheduled maturities , at the option of the City, at any time and in the manner provided in the Form of Certificate set forth in this Ordinance. Section 4. The Certificates shall bear interest at the rate of 8. 5$ per annum. Said interest shall be evidenced by -Z- 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 charac- teristics , shall be subject to prior rede�ption, shall be signed and executed , and the Certifica'tes shall be sealed , all as provided and in the manner indicated in the Form of Certifi - cate 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 : FORA1 OF CERTIFICATE: N0. $ UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF HARRIS AND GALVESTON CITY OF FRIENDSlV00D, TEaAS CERTIFICATE OF OBLIGATION SERIES 1983 The CITY OF FRIENDStV00D, in the Counties of Narris and Galveston, State of Texas , for value received , acknowledges it- self indebted to and hereby promises to pay to Uearer on the - lst day of 2�larch, 19 , the sum of DOLLARS and to pay interest thereon from the date hereof at the rate of 8. 5$ per annum, interest payable September 1 , 1983, and semi- annually thereafter on March 1 and September 1 of each year while 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 TEXAS COMMERCE BANK - FRIENDSti�J00D, Friendswood, Texas , which shall be the Paying Agent for this series of Certificates. THIS CERTIFICATE IS ONE OF A SERIES OF NEGOTIABLE CERTIFI- CATES OF OBLIGATION, dated March 1 , 1983, numbered from 1 -3- through 10, with Certi£icate ilo. 1 being in the denomination of $3 , 000. 00 and Certificates Nos. 2 - 10 being in the denor�ina- tion of $4 , 000. 00 each, aggregating $39, 000. 00, issued in accordance with the Constitution and laws of the State of Texas , particularly Article 2368a. 1 , Vernon' s Texas Civil Statutes , as anended , and pursuant to an ordinance adopted by the City Council of the City on February 21 , 1982 , for the pur- pose of evidencing the indebtedness of said City for all or any part of the purchase price of an ambulance and accessory equipment . THE CITY reserves the right to redeem the outstanding Cer- tificates of this series on any date prior to their scheduled maturities , at the option of t]Ze City, IN h'HOLE OR IN PAP.T, for the principal amount thereof and accrued interest thereon to the date fixed for any such redemption. NOTICE OF each exercise of such reserved right of redemp- tion shall be given in writing to the Paying Agent and by pub- lication 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 provi - sion 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. PJhen 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 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. -4- IT IS HEREBY CEF.TIFIED, RECITED AND COVEh'ANTED that this Certificate has been duly and validly authorized , issued , and delivered ; that all acts , conditions , and things require� 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 Gity, 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 abainst all taxable property in the City and have been pledged irrevocably for such payment within the limits pre- scribed by law. IN ti�ITNESS t'dHEREOF, the City Council of the City of Friends�aood , 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 coun- tersigned with the facsimile signature or subscription of the City Secretary. Mayor COUNTERSIGNED: ity Secretary (SEAL) FORM OF INTEREST COUPON: N0. � ON , 19 , unless the Certificate to which this coupon pertains has been properly called for -S- redemption in accordance with its terms , the City of Friends- wood , in the Counties of Harris and Galveston , State of Texas , hereby promises to pay to bearer, without exchange or collec- tion 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 presen- tation 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 desig- nated, of that issue of CITY OF FRIENDSid00D, TEXAS , CERTIFI- CATES OF OBLIGATION, SERIES 1983, dated Alarch l , 1983. Certifi - cate No. . Pdayor ity Secretary Section 7. A special fund or acount , to be designated the "City of Friendswood , Texas , Certi£icates of Obligation, Series 1983, 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 deposi - tory bank of the City. The Interest and Sinking Fund shall be kept separate and apart frort all other funds and accounts of the City and shall be used only for paying the interest on and principal of said Certificates. Al1 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 Certificates are outstanding and unpaid , the City Council 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 inter- est comes due and to provide and maintain a sinking fund ade- quate to pay the principal of such Certificates as such princi- pal matures , but never less than 2$ of the original principal -6- � 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 while any of the Certificates are outstanding and unpaid ; and said tax shall be assessed and collected each such year and depo- sited 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 irre- vocable for such payment within the limits prescribed by law. Section 8. The Supplier is now prepared and able to deli- ver to the City clear title to and the corpus of the goods described in Section 2 of this Ordinance . Upon such delivery and acceptance by the City, a portion of the purchase price , in the amount of $39, 000. 00 , for such goods shall be funded by a lir,e amount of Certificates. Secton 9. Resolution No. R23-82 passed and approved on August 23 , 1982, 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 r4ayor 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 the Certificates at any tir�e 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 the Certificates by the purchasers , would have caused the Cer- tificates to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended , or any -7- 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 applicaUle and pertinent Department of the Treasury regulations relating to arbitrage bonds . The City further covenants that the proceeds of the Certificates will not other��ise be used directly or indirectly so as to cause all or any part of the Certificates to be or become arbitrage bonds �aithin the meaning of the a.foresaid Section 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 . � , 1983. � � � ayor ATTEST: ��� � ,�- ' l �� City Secretary (SEAL) -8-