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HomeMy WebLinkAboutORD 452 - ORD Authorizing & Issuance of $58000 Sewer Revenue Refunding Bonds 131, ORm NANCE NO. 452 -.." I AN ORDINANCE AUTHORIZING. THE ISSUANCE OF $58,000 CITY OF WEST UNIVERSITY PLACE SEWER REVENUE REFUNDING BONDS; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; MAKING PROVISION FOR THE , "PAYMENT OF PRINCIPAL AND INTEREST THEREON ' i I -,...-' WH&ttEAS, the City of West University Place, Texas, now has. out.standing the following described revenue bonds: ' City of West University Place, Texas Sewer Revenue Bonds, dated January 1, 1938, numbered from 43 to 100, both inclusive, in the denomination of $1,000 each, aggregating $58,000, bearing interest at the rate of 4-1/2% per annum, and maturing serially on January 1 in each of the years 1950 through 1958, both inclusive; and WHEREAS, said bonds constitute the valid, legal and binding special obligations of the City of West University Place secured in the manner pre- scribed by Acts 1111 to 1118, Revised Civil Statutes, 1925, by a pledge of the net revenues of the City's sanitary sewer system; an<?- WHER~S, said bonds may be 'refunded at a lower rate of i~terest, thereby providirig a substantial saving in interest cost on said indebtedness and the holders and owners-of said bonds have agreed to surrender the same in exchange for. the refunding bonds hereinafter authorized; Therefore BE IT ORDAINED, by the City Commission of the City of West University Place, Texas: Section 1: That the bonds of the City of West University Place, Texas, be issued. in the principal amount of $58,000, to be knoWn and designated as. "CITY.OF WEST UNIVERSITY PLACE SEViER REVENUE REFUNDING BONDS", for the pur~ 'pose of refunding, cancelling, and in lieu of the $58,000 principal amount of outstanding.q:oev.enue bond~ described in the preamble of this ordinance under and " " \ by virt",e of the Constitution and laws of the State of Texas, particularly , - Chapter 163, Acts of the 42nd Legislature of Texas, Regular Session';:1931, as amended, and the charter of said city. . Section 2: ,That said bonds shall be dated March 1, 1949, shall be n~mbered from 1 toS8, both inclusive, shall be in the denominatiqn ,of $1,000 each, aggregating $58,000, and shall become due and payable on the 1st day of March in each of the years and in the respective amolffi<t$, spoV'!ll in the following schedule, to-wit: . " Bond Nos. Maturity .Amount 1-5 March 1,1950 $.5,000 6 - 11 It 1,1951 6,000 12 - 17 It 1, '19,52 6,000, 18 - 23 tt 1, 1953- 6,000 24 - 30 It 1, 1954 A,. 7,000 ....... 31 - 37 II 1, 1955 7,000 38 - 44 II' 1, 1956 << 7,000 45 - 51 It 1, 1957 7,000 52 - '58 It 1, 1958 7,000 , , .";.... -. ',- I'" .", ''1'''' ,.' t I'~r" " .111":"-;11' '1'1" . .... ~. _~: _ :~;;r "._.". ,::1 ~3:~, The City of West University Place reserves the right to redeem all said bonds then outstanding on, January 1, 1951 or, on any interest payment date thereafter, at a price, ,in addition to accrued interest, equal to 102% of the principal amount of bonds redeemed. In the event allor' any part of said bonds are called for redemp~ion, an appropriate notice in writing of the ex- ercise of such option shall b~ given by mail to The City National Bank,of Houston, Houston, Texas, and by publication of such notice one time ill' a finan- cial journal of national circulation published in the City of New York, New York, which notice shall be so mailed and published at lea~.t thirty (30) days prior to the date fixed for redemption. ' When any part of said bonds ,has been called forrede~ption as herein provided, and due provision has.:been made to redeem the same, the right of the .owners and holders to collect interest which would otherwise accrue after the redemption date shall be terminated. Section 3: Said bonds shall bear interest at the following rates: Bonds Nos. 1 to 11, both inclusive, at the rate of 2-3/4% per annum and Bonds Nos. i2 to 58, both inclusive, at the rate of 3-1/4% per annum, interest payable' on September 1st, 1949 and semi-annually thereafter on March 1st and September 1st in each year until th? principal sum is paid. Both principal and interest shall be payable in lawful money 'of the United States of 'America at iTQe City National Bank of Houston, Houston, Tex;as, and interest'falling due on and prior to maturity shall be payable... only upon presentation and surrender of the interest coupons attached to said bonds as they severaily become due. Section 4: Tha~ each of said bonds shall be signed by the Mayor, and countersigned by the City Secretary, and the co~porate seal shall be impressed upon each of them. The facsimile signatures ot':the MaYor and City Secretary may be lithographed, engraved or printed on the coupons attached to said bonds ahd shall have the same effect as if they had been-signed by said officers. Section 5: The form of said bonds shall be substantially as follows: No. $1,000.00 ' UNITED STATES OF'AMERICA STATE OF TEXAS COUNTY OF HARRIS CITY OF WEST UNIVERSITY PLACE SEWER REVENUE .REFUNDING BOND The City of West University Place, in the County of Harris, 'in the State of Texas, for value received, hereby acknowledges itself indebted to and promises to pay to bearer out of the special fund hereinafter spe~ified, on the 1st day of March, 19~, the sum of ONE THOUSAND DOLLARS II I ' -u II U ($1,000.00), with interest thereon from date thereof at the rate of '% per annum, <,iIiterest payable September 1, ,,1949 -and semi-annually thereafter on March 1st and September 1st of each year until the principal sum shall be paid. Both principal and interest shali be payable'in lawful money of the United States of America at the office of The City National Bank of Houston, Houston, Texas, and. interest falling due on and prior to m.aturity is payable only upon the present- -J ation and surrender of the interest coupons hereto attached as they severally become due. --,. , ,- .-1 ----., --. i 139" This band is one of a series of fi!ty eight (58) bonds of like date and tenor, except as to numbe-r, maturity, interest rate and option of redemption before maturity, numbered fran 1 to 58, both inclusive, in the denomination of $1,000 each, aggregating $58,000, and i~ issued for the purpose of refunding, cancelling and in lieu of $58,000 p~ncipal amount of City of West Universi:t;.y Place, Texas Sewer Revenue Bonds, 4-1/2%, dated,--Januaryl, 1938, under and in st:dct conformity with the Constitution and laws of the State of Texas, Chapter- 163, Acts of the 42nd Legislature of ,Texas, Regular Session, 1931, as amended, and the Charter of said city. ; ,The City of West University Place reserves the right to redeem all of said bonds then outstanding on January 1,'1951 or on any interest payment date thereafter at a price, in' addition to accrued interest, equal to 102% of the principal amount of bonds redeemed. Notice in writing of the exercise of such option shall be given by, mailing proper notice to The City N?-tional Bank of Houston, Houston, Texas, and by publishing such notice one time in a finan- cial journal of national circulat.ion published in ,the CitY"of New York~ New York, which notice shall be so mailed and published at..leas't thirty (30) days prior to the date fixed for redemption. When any:part of said bonds has been called for redemption, as herein provided~'and due provision has been made to redeem the same, the right of the owners ~d holders to collect interest which would otherwise accrue 'after the redemptiorl date sha.ll be terminated. This bond shall not be deemed to constitute a debt of the City of West Uhivers~ty Place or a pledge of its faith or credit, but shall be payable as to principal and interest solely from the net revenues derived from the operation of the city's Se\lter system, including all addi!-ions, extensions and improvements thereto.hereafter constructed or acquired, after deduction of the reasonable expense of operation and maintenance of said system, including all salaries, labor, material, interest, repairs and extensions necessary to render efficient service. The holder hereof shall never have the right to , .demand payment of .this obligation out of any funds raised or. t,o be'raised by taxation. _/ Each successive pol~er~pf' this bond and each successive holder of each of the coupons hereto attached is conclusively presumed to forego and \ renounce his equities in f.~vor of subsequent holders, for 'value without notice, and to agree that this bond and each of the coupons hereto attached, may be ' negotia.ted by delivery by any person having possession thereof, howsoev.er such possession may have been acquired, and that any holder who shall have taken this bond or any of the coupons from any person for value and without notice, thereby has acquired absolute title thereto, free from any defenses enforceable against any prior ,holder and free from all equities and claims of ownership of pny such prior holder. The City of West University Place and its officials and fiscal agent shall not be affected by any notice to the contrary. The provisions of the Texas Negotiable Instruments Law shall be applicable to this bond and the series of which it is a part. It is hereby certified, recited and represented that all acts, con- ditions and things required to be done precedent to and in the issuance of these bonds have been properly done aIld performed and have happened in regular and due time, form and manner, as required by law; that du~ provision has been made for the payment of ~he principal' and interest of this bond and the,series of which it is a part by irrevocably pledging the net revenues of the city's . ~ ~ ~ '.....::lil ""IT-Ill ! ~--.-:. ., (."4.0. I ' sewer,system; and that the issuance of this series of bonds does not exceed any constitutional or statutory limitation. 7Ti .H IN TESTIMONY WijER,EQF, the City Commission of the City of West University Place, Texas, has caused the corporate seal of said city to be affixed hereto and thiS bond to' be signed by the Mayor, countersigned by the City pecretary and has caused the annexed coupons to be signed by the facsjjp.ile signatures of said Mayor and City Secretary, all as of the 1 tday of March, 1949. Countersigned: "f City 'Secretary, City of West University Place, Texas, Section 6: The form of coupons shall be substanti~lly as 'follows: ~. $ On the 1st day of , 19, , the City of West University Place, in the County of Harris, in the State~f Texas, promises to pay to bearer at the office ,of The.City National Bank of Houston, Houston, Texas, the sum of Dollars' in lawful money of the United States' of America, solely from the specialfund specified in the bond to which this coupon is attached, said sum being the interest due that date on the City of West University Place Sewer Revenue Refunding Bonds, dated March 1, 1949. The holder hereof shall never have the 'right to demand payment of this obligation out of any funds raised or ,to be raised by taxation. Bond No. ,---., I i I i U Mayor . Ci ty . Secretary, Section 7: That substantially the following certificate shall be printed on the back of each of said bonds. OFFI CE OF THE COMPTROLLER THE. STATE OF TEXAS '\. I hereby certify that there is on file and of record in my office, a certificate of the Attorney General of the State of Texas to the effect that this bond has been examined by him as required by law,' a1i~,t.hat it has been issued in conformity With the Consti,t.~tion and laws 'of the State of Texas, and that, is is a -valid and binding speciat obligation of said City of West University III Place, Texas, payable from the revenues pledged to its payment by and in the ordinance authorizing same, and said bond has this day been registered by me. I~..J l4f WITNESS my hand and seal of office, this day of , 1949. ----:--' V'~ Comptroller o! Public Accounts of the State of Texas Section 8: In this ordinance the term ltsystem" shall include and mean the.:Sanitary Sewer System of said City, together :with any additions thereto and improvements and replacements thereof, hereafter ?onstru?ted or acquired. Section 9: For the benefi t of the original purchaser, and for the benefit of any and all subsequent holders of said bonds, coupons, or any part thereof, and in addition to all other provisions and covenants in the laws of the State of Texas and in this ordinance, it is 'expressly stipulated; A.Rates: The City shall. fix and maintainCrates and collect charges for the facilities and services afforded by the System, which will provide revenues sufficient at all times:' ---., (1) To pay for all operations, maintenance, depreciation, replacements and betterment charges of ,the System. (2) To establish and maintain the Bond Fund. (3) To pay all outstanding indebtedness against the System, other than the, bonds, as and when the, same becomes due. Provided also' that no free service' of the System shall be allowed, and should the city or any of its a- gencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value thereof shall be made by the City out of funds derived from sources other than the revenues and income of the System. t# B. Use of Revenues: The City will deposit as collected all revenues , derived from the operation of the System into a separate account (herein called the "System Fundlt) which shall be kept separate and apart from all other funds of the City. The Syst~!'!l..-E.und__shall_be administered as follows: ------~. -.-:- - ~ - "~'~"-. (1) Bond Fund: From the funds in the System Fund; the City shall" pay into the Bond Fund during each year beginning with the date ofccompletion of the project, an amount equal to 100 pe~ centum of, the amount required te meet the interest and priticipal payments falling due on or before the next, maturity date of the bonds. In addition to such payment, the City snall pay into the Bond Fund from the System Fund in each year 20 per centum of the above required amount until such time as there is in the Bond Fund an ,anlount sufficient to meet the int~rest and principal payments falling due on or before the next maturity date of the bonds and the interest and prin9ipal payments on the bonds for 2 yearstbereafter. The amount required to be paid intp the Bond Fund in each year shall be paid in substantially equal monthly payments from the. monies in the System Fund after deductions have been made for paying the reasonable cost of the operating and maintaining of the System for such month. If the revenues of "the System in any month, after deductions for oper- ation and maintenance, are1nsufficient to make the required payment into the Bond Fund, then the amount of any deficiency in the payment made shall be added to the amount otherwise required to be paid into the Bond Fund in the ""-- I iT .:J1I::""""llI ~ -.: " . " i'4;,2 next_month. It'is the intent of this provision .that the sums paid into the Bond Fund shall be in excess of the immediate requirements for payment of in7 terest on the principal of the bonds, until there has been accumulated in the Bond Fund, as a reserve for con in encies an amount sufficient to service the ~onds for two years.r-Tne monies in the Bond Fund shall be used solely or the purpose of paying interest and premiums on and principal~of the bonds 'until all bonds have been retired; provided, that, when the total in the Bond Fund is equal toth~ aggregate'principal amount of the bonds outstanding plus accrued interest thereon~, the monies in the Bond Fund may be used to purchase bonds at a price, exclusive of accrued interest, not exceeding t~e principal amount thereof. The monies paid into the Bond Fund. shall be q,e- posited in a bank or banks ,and shall be continuously secured by a valid pledge to'the City of direct-obligations of the United States of America'naving an aggregate market value exclusive of accrued interest, at all times:atleast equal to such Bond FUnd. The Bond Fund, at the option of the City, may be invested in such direct'obligations of tWe United States of America and de- posited in escrow under an escrow agreement.' If such funds are so invested and deposited in escrow, the Ci t.v shall have the right to have sold through the escrow agent on the open market a sufficient amount of said securities in order to meet its obligations of principal and interest in event it does not have sufficient funds, uninvested, on hand for such purpose.' Under such cir- cumstances, the Mayor is hereby authorized,.ordered and directed to give fif-, teen days written notice to such escrow agent of the necessity to sell said securities on the 9pen market. After such sale, the monies resulting there- from shall belong to the Bond Fund and shall be available to pay such obli- . gations of principal and interest., - (2) SURPLUS: Any funds remaining in the ,System Fund, after pro- 'vision for the reasonable cost of operating and maintaining the System and after p~irig the amounts required to be paid into the Bond Fund as above pro- vided, may be used by the City for the purchase of bonds at not exceeding the principal amount thereof (exclusive of accrued interest) or for any other pur- pose permitted by law. C. Additional Bonds: Encumbrance and Sale. - While any of the bonds are outstanding, the City shall not issue any additional bonds payable from the revenues of the System unless the lien of such bonds on the revenues of the System, is made junior and subordinante in all respects to the lien of the bonds authorized in this ordinance. In'no event, while any of said bonds are out- standing, will the City mortgage or otherwise encumber the System or any part thereof, or sell, lease or otherwise dispose of any substantial portion of such System. These provisinns shall inure to' the benefit of and be enforceable by any holder of any of the bonds. ,D. Maintenance and Operation: The City sh<;lll maintain the System in good':G9ndition and operate the same in an efficient manner and at a. reaso- nab~ost. So long as any of the bonds are outstanding, the City 'agrees to ~aintain insurance, for the benefit of the holder' or holders of the bonds, on j' the System of a kind and in anamouht which usually wquld be carried by private c panies engaged in a similar type of business~ Nothing in this ordinance sh 1 be construed as requiring the City to expend any funds which are der,i ved fr m sources other than the operation of the System, but nothing herein shall , , construed as preventing the City ~~om doing s~. '-.. :l '---~ 'l ~ l 143 E. Accounts and Periodic Statements: The City shall keep proper 1 books of records and counts' (separate from all other records and counts) in I which complete and correct entries shall be made of all transactions relating ~I to the System. The City shall furnish to any holder of any of the bonds, at the written request of such holder, not more than thirty days after the close of each six months fis:cal period, complete operating and income statements of the System in reasonable detail covering such six months period, and, not more than sixty days after the close of each fiscal year, complete financial state- ments of the System in reasonable detail covering'such fiscal year, certified by the City's auditors. F. Inspection: Any purchaser of 25 per centum in aggregate princi-, pal amount of the bonds at the time then outstanding. or any holder or holders of 25 per centum of said amount of outstandihg bonds shall have the right at all reasonable times to inspeGt the System ahd all records, accounts and data of the City relating thereto. I G. Sale of Bonds: Upon request, the City will furnish to any'pur- chaser of 25 per centum of the Bonds ,information for the preparation of a , bond, circular in customary form~ signed by the proper official of the City, containing such data as such purchaser may reasonably request concerning the City', the Project, and the System. I I I ,...-' Section 10: The Mayor, City Secretary and City Treasurer are hereby ins tructed and directed to do any and. all things necessary and/or convenien-t " in reference to the installing and maintaining of a complete system of records and accounts pertaining to said system and to make the monies available for the payment of said revenue bonds in the manner provided by Chapter :1,39, Acts of the Regular Session of the Forty-Eighth Texas Legislature, effectiVe April 14, 1943. In accordance with the provisions of Article 1113, 1925 Re- vised Civil Statutes of Texas, as amended, the fiscal year for the operation of such System shall be January 1st to December 31st of each year. Section 11: The City further covenants by and through this ordi- nance as follows: (a) That the revenue bonds autho:qized hereunder shall be special, obligations of the City, and the holder thereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxation. (b) That it has the lawful power to pledge the revenue supporting this i-ssue of bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas, including power existing under Articles 1111 to 1118, both inclusive, 1925 Revised Civil Statutes of the State of Texas with amendments thereto, and by authority o~ a 'vote of the qualifie(j electors of said City voting at an election held on tJhe 18th day of September, 1937; that the bonds issued hereunder shall be ratably secured under said pledge of income, in such manner that one bond shall have no preference over any other bond of said 'issue. (c) , That other than for the payment of the bonds herein provided for, the rents, revenues and income of the said Sewer System have not in any manner been pledged to the payment of any debt or obligation of the city, nor of said system. ,I / r ,.', 1 . \, -.-r-rrl' , .. ,~- ~,,; 144- Section 12: The' Mayor of said city is hereby authorized tp, take and have charge. of said, bonds pending their investigatfon- and approval by the l'~ 'I Attorney General of Texas and their registration ,by the Comptroller of Public Accounts of the State of Texas. The Comptroller shall not'register said bonds until'a like principal amount of the 'above described bonds shall have beWl de- livered to h:im. for .cancellation, and 1JI1b.en such bonds have been duly cancelled, theiComptrollar is hereby authorized to deliver said ,refunding bonds to M'OX'oney, ,Bei.ssner & Company, Houston, Texas or their order, and said refunding bonds may be issued all at one tim~ or in installment_s., . PASSED and APPROVED this 2nd day of March, 1949. &/fA- ATTEST: ~/ '-_ _- ~ ,Secretary - , " .. / f:vl I~I U ]