Ord. 0386 08-28-784TX 386 2ec„,,,,,e(iX-ea--0(7
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
The City Council of the City of Pearland, Texas, convened
in regular meeting, open to the public, on -the 28th day of
August, 1978, at the City Hall, and the roll was called of the
duly constituted officers and members of the City Council and
the City Secretary of the City, to -wit:
Tom Reid
Dennis Frauenberger
Harry Farley
Fran Coppinger
Morris S. Wilson
Carlton McComb
Dorothy L. Cook
Mayor
Councilman
Councilman
Councilman
Councilman
Councilman
City Secretary
and all of said persons were present, except the following ab-
sentees: 4109C
thus constituting a quorum. Whereupon, among other business,
the following was transacted at said meeting: a written ordi-
nance entitled:
ORDINANCE AUTHORIZING THE ISSUANCE OF $2,750,000
CITY OF PEARLAND, TEXAS, WATERWORKS AND SEWER
SYSTEM REVENUE BONDS, SERIES 1978
(the "Ordinance") was duly introduced for the consideration
of the City Council and was read and considered by the City
Council, the Ordinance being the same ordinance which was
heretofore read, considered and adopted by the City Council
at its regular meeting on August 14, 1978. It was then duly
moved and seconded that the Ordinance be passed; and, after
due discussion, the motion, carrying with it the passage of
the Ordinance, prevailed and carried by the following vote:
AYES: All members of the City Council shown
present above voted "Aye".
NOES: None.
The Mayor thereupon announced that the Ordinance had been duly
and lawfully adopted. The Ordinance thus adopted follows:
,5f6
ORDINANCE AUTHORIZING THE ISSUANCE OF $2,750,000
CITY OF PEARLAND, TEXAS, WATERWORKS AND SEWER
SYSTEM REVENUE BONDS, SERIES 1978
THE STATE OF TEXAS §
CITY OF PEARLAND §
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PEARLAND:
ARTICLE I.
STATUTORY AUTHORITY,
RECITALS AND FINDINGS
Section 1.01 - Creation of City. The City of Pearland,
Texas, (the "City") is duly incorporated as a municipal
corporationunder the laws of the State of Texas and ope-
rates as a home rule city under the laws of the State of
Texas relating to municipal corporations, particularly
Title 28, Vernon's Texas Civil Statutes, as amended. The
City has a home -rule charter which was last amended on
April 1, 1978.
Section 1.02 - Special Findings. It is hereby found,
determined and declared that:
(a) The bonds herein authorized were approved by
a majority vote of qualified voters of the City at an
election held in the City on May 13, 1978; and
(b) The City Council now deems it to be in the
best interest of the City to issue, sell, and deliver
such bonds.
ARTICLE II.
DEFINITIONS AND INTERPRETATIONS
Section 2.01 - Definitions. Unless otherwise expressly
provided, or unless the context otherwise requires, the
terms defined in this Section shall have the respective
meanings specified for all purposes of this Ordinance except
in the form of the bonds and of the interest coupons:
Additional Bonds
The term "Additional Bonds" shall mean the additional
parity revenue bonds that the City expressly reserves the
right to issue in Article VIII of this Ordinance, which will
be payable from and secured by a lien on and pledge of the
Net Revenues of the System on a parity with the lien thereon
and pledge thereof to secure the payment of the Bonds herein
authorized by this Ordinance.
Bearer
The term "bearer" means any person who from time to
time shall be the bearer of any of the Bonds.
Bond Fund
The term "Bond Fund" shall mean the fund created and
established in Article VII of this Ordinance.
Bond or Bonds
The term "Bond" or "Bonds" shall mean any bond or all
bonds, as appropriate, of the issue of. $2,750,000 City of
Pearland, Texas, Waterworks and Sewer System Revenue Bonds,
Series 1978, authorized and issued pursuant to this Ordi-
nance.
Fiscal Year
The term "Fiscal Year" shall mean the twelve-month
fiscal year of the City which is currently the twelve-month
period beginning October 1 but which may be changed from
time to time.
Gross Revenues or Revenues
The term "Gross Revenues" or "Revenues" shall mean the
gross revenues derived from the ownership and operation of
the System.
Net Revenues
The term "Net Revenues" shall mean the Revenues of the
System remaining after payment of all costs and expenses of
operating and maintaining the System as provided in this
Ordinance.
Paying Agent
The term "Paying Agent" shall mean the First City
National Bank of Houston, Houston, Texas.
Reserve Fund
The term "Reserve Fund" shall mean the fund created and
established in Article VII of this Ordinance.
Special Project Bonds
The term "Special Project Bonds" shall mean bonds which
the City expressly reserves the right to issue in Section
8.04 of this Ordinance.
System
The term "System" shall mean the City's waterworks and
sanitary sewer system and all improvements, enlargements,
extensions and additions thereto, except for such waterworks
and sanitary sewer facilities that the City may purchase or
acquire with the proceeds of the sale of Special Project
Bonds, so long as the Special Project Bonds are outstanding,
notwithstanding that such facilities may be physically
connected with the System.
City
The term "City" shall mean the City of Pearland, Texas,
and its successors and, where appropriate, the City Council
or governing body thereof.
Section 2.02 - Interpretations. The titles and head-
ings of the Articles and Sections of this Ordinance have
been inserted for convenience of reference only and are not
to be considered a part hereof and shall not in any way
modify or restrict any of the terms and provisions hereof.
This Ordinance and all the terms and provisions hereof shall
be liberally construed to effectuate the purposes set forth
herein and to sustain the validity of the Bonds herein
authorized and the validity of the lien on and pledge of the
Net Revenues from which the Bonds are payable.
ARTICLE III.
AUTHORIZATION, DESCRIPTION, OPTION OF
PRIOR REDEMPTION AND EXECUTION OF BONDS
Section 3.01 - Name, Amount, Purpose and Authorization.
The serial, negotiable revenue bonds of the City, to be
known and designated as "CITY OF PEARLAND, TEXAS, WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1978," shall be
issued in the aggregate principal amount of $2,750,000 for
the purpose of constructing improvements and extensions to
the waterworks and sanitary sewer system of the City, under
and in strict conformity with the Constitution and laws of
the State of Texas, including particularly Articles 1111 to
1118, Vernon's Texas Civil Statutes, as amended.
Section 3.02 - Date, Numbers, Denomination and Maturi-
ties.
The Bonds shall be dated September 1, 1978, shall be
numbered consecutively from 1 to 550, both inclusive, shall
be in the denomination of $5,000 each, and shall mature
serially on September 1 in each of the years, and, in the
amounts, respectively, as set forth in the following schedule:
YEAR AMOUNT YEAR AMOUNT
1979 $ 50,000 1991 $110,000
1980 50,000 1992 120,000
1981 50,000 1993 125,000
1982 60,000 1994 130,000
1983 70,000 1995 140,000
1984 70,000 1996 150,000
1985 75,000 1997 160,000
1986 80,000 1998 170,000
1987 80,000 1999 180,000
1988 90,000 2000 190,000
1989 100,000 2001 200,000
1990 100,000 2002 200,000
Section 3.03 —Option of Prior Redemption. The Bonds
may be redeemed prior to their scheduled maturities, at the
option of the City in the manner provided in Section 4.01 of
this Ordinance.
Section 3.04 - Interest Rates. The Bonds shall bear
interest at a rate or rates per annum which shall not exceed
the maximum permitted by Article 717k-2, V.T.C.S., as amended;
such interest rates shall be those proposed in the bid for
the purchase of the Bonds which results in the lowest net
interest cost to the City and such interest shall be evi-
denced by interest coupons which shall appertain to the
Bonds and which shall be payable on the dates indicated in
the FORM -OF BOND set forth in this Ordinance.
Section 3.05 Payment of Principal of, Interest on,
Characteristics and Execution of Bonds. The Bonds and the
interest coupons appertaining thereto shall be payable,
shall have the characteristics, and shall be signed and
executed (and the Bonds shall be sealed), all as provided,
and in the manner indicated, in Article IV of this Ordinance
Section 3.06 - Mutilated, Lost, Destroyed or Wrongfully
Taken Bonds. If the bearer of any Bond claims that such
Bond has been mutilated, lost, destroyed, or wrongfully
taken, the City may, under the applicable provisions of
Section 8.405, Texas Business and Commercial Code, and
Article 715a, Vernon's Texas Civil Statutes, as presently
existing or as may hereafter be amended, execute a new bond
of like tenor and date in exchange and substitution for the
mutilated bond or in lieu of and substitution for the bond
so lost, destroyed or wrongfully taken.
ARTICLE IV.
CHARACTERISTICS AND FORM OF BONDS, INTEREST COUPONS AND
ENDORSEMENT FOR REG.ISTRATION BY COMPTROLLER
Section 4.01 - Form of Bonds. The form of the Bonds,
shall be substantially as follows, with such omissions,
insertions and variations as may be necessary and desirable
and consistent with the terms of this Ordinance:
NO.
FORM OF BONDS:
UNITED STATES OF AMERICA
STATE OF TEXAS
$5,000
CITY OF PEARLAND, TEXAS,
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
SERIES 1978
The CITY OF PEARLAND, TEXAS, for value received, hereby
acknowledges itself indebted to and promises to pay to
bearer, but solely from the sources hereinbelow described,
ON THE FIRST DAY OF SEPTEMBER,
the principal sum of
FIVE THOUSAND DOLLARS ($5,000)
and to pay interest thereon, from the date hereof, at the
rate of
PERCENT PER ANNUM,
-4-
c
interest payable on March 1, 1979 and on each September 1
and March 1 thereafter while this bond is outstanding. Both
principal of and interest on this bond shall be 'payable in
any coin or currency of the United States of America which,
on the respective dates of payment of such principal and
interest, is legal tender for the payment of debts due the
United States of America, without exchange or collection
charges, at the First City National Bank of Houston, Houston,
Texas, the Paying Agent. .Interest hereon shall be paid only
upon presentation of the proper interest coupon initially
affixed to this bond to the Paying Agent, and the principal
hereof shall be ,paid only upon presentation and surrender of
this bond to the Paying Agent.
THE DATE OF THIS BOND, in conformity with the ordinance
hereinafter mentioned, IS September 1, 1978.
THIS BOND IS ONE OF A SERIES OF BONDS of like tenor and
effect, except as to serial number, maturity and option of
prior redemption, being numbered consecutively from 1 to
550, both inclusive, in the denomination of $5,000 each,
aggregating $2,750,000, issued pursuant to an ordinance law-
fully adopted by the City Council of the City of Pearland,
Texas, and duly recorded in its official minutes (the."Ordi-
nance") for the purpose of constructing improvements and
extensions to the waterworks and sanitary sewer system of
the City, under and in strict conformity with the Consti-
tution and laws of the State of Texas, particularly Articles
1111 to 1118, Vernon's Texas Civil Statutes, as amended, and
by authority of an election held within the City on May 13,
1978.
THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT of
the City of Pearland, Texas, or a pledge of its faith and
credit, but shall be payable, as to principal and interest,
solely from the net revenues derived from the operation of
the City's-waterworks and sanitary sewer system, as that
system is defined in the Ordinance (the "System"), after
deduction of the reasonable expenses of maintenance and
operation of the System. The bearer or owner Yiereof shall
never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation.
ON September 1, 1993, AND ON ANY INTEREST PAYMENT DATE
THEREAFTER, the outstanding bonds of this series may be
redeemed prior to their scheduled maturities, at the option
of the City, in whole, or in part in inverse numerical
order, for the principal amount thereof and unpaid accrued
interest thereon to the date fixed for any such redemption.
If the City elects to redeem all or any part of said bonds
on any such redemption date, notice of the exercise of the
option to redeem shall be given in writing to the Paying
Agent, and said notice shall be published in the English
language in the City of New York, New York, or in the City
of Austin, Texas, which notice shall be mailed to the Paying
Agent and published in said journal or publication at least
thirty (30) days prior to the date fixed for redemption.
When said bonds, in whole or in part, have been called for
redemption in the manner prescribed and due provision has
been made to pay the principal of the bonds called for
redemption and interest thereon to the date fixed for re-
demption, the right of the bearers or owners to collect
interest which would otherwise accrue after the redemption
date on the bonds called for redemption shall terminate on
the date fixed for redemption.
IN ADDITION TO THE RIGHT TO ISSUE BONDS OF INFERIOR
LIEN, the City has reserved the right to issue additional
bonds which may be secured by a lien on and pledge of the
net revenues of the System on a parity with the lien on and
pledge of such net revenues that secure payment of this
bond. The City has also reserved the right to issue special
project bonds, as defined in the Ordinance, which are pay-
able solely from and secured by the proceeds of a contract
or contracts with persons, corporations, municipal corpora-
tions, political subdivisions, or other entities. Reference
is made to the Ordinance for a complete description of the
right of the City to issue additional bonds and special
project bonds.
IT IS FURTHER CERTIFIED AND RECITED that all acts,
conditions and things required to be done precedent to and
in the issuance of this bond and this series of bonds have
happened and have been performed in regular and due time,
form and manner as required by law; and that provision has
been made for the payment of the principal of and interest
on this bond and the series of which it is a part by pledg-
ing the net revenues specified herein and that the issuance
of this series of bonds does not exceed any Constitutional
or statutory limitation.
IN TESTIMONY WHEREOF, the City Council of the City of
Pearland, Texas, has caused the official seal of the City to
be duly impressed, or placed in facimile, hereon, and has
caused this bond to be signed by the Mayor of said City and
countersigned by the City Secretary by their facsimile
signatures.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Mayor, City of Pearland, Texas
COUNTERSIGNED:
XXXXXXXXXXXXXXXXXXXXXXXXXI
City Secretary, City of
Pearland, Texas
(SEAL)
Section 4.02 - Form of Interest Coupons. The form of
the interest coupons of the Bonds shall be substantially as
follows:
No.
ON
FORM OF INTEREST COUPONS:
the CITY OF PEARLAND, TEXAS, PROMISES TO PAY TO BEARER,
without exchange or collection charges, at the First City
National Bank of Houston, Houston, Texas, the amount shown
on this interest coupon, in any coin or currency of the
United States of America which on such date is legal tender
for the payment of debts due the United States of America,
solely from the revenues specified in the bond to which this
coupon appertains, being interest due that date on the bond
bearing the number hereinafter designated, of that issue of
City of Pearland, Texas, Waterworks and Sewer System Revenue
Bonds, Series 1978, dated September 1, 1978. The bearer
hereof shall never have the right to demand payment of this
obligation out of any funds raised or to be raised by taxa-
tion.
Bond No.
XXXXXXXXXXXXXXXXXX
Mayor, City of Pearland, Texas
xxxxxxxxxxxx
City Secretary, City of Pearland,
Texas
*(Coupons maturing after September 1, 1993, shall
contain the following additional clause:
unless the bond to which this coupon
appertains shall have been previously
called for redemption and due provision
made to redeem same,)
Section 4.03 - Form of Registration Certificate. The
Bonds shall be registered by the Comptroller of Public
Accounts of the State of Texas as provided by law, and the
resulting registration certificate shall be printed on the
back of each of the Bonds in substantially the following
form:
OFFICE OF THE COMPTROLLER
REGISTER NO.
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, that he finds that it has been
issued in conformity with the Constitution and laws of the
State of Texas, and it is a valid and binding special obli-
gation of the City of Pearland, Texas, and said bond has
this day been registered by me.
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas,
Comptroller of Public Accounts of
the State of Texas
Section 4.04 - CUSIP Numbers. CUSIP Numbers may be
printed on the backs of the Bonds, but errors in or omis-
sions of such numbers shall have no effect whatever on the
validity of such Bonds.
ARTICLE V
APPLICATION OF BOND PROCEEDS
Section 5.01 - Application. Proceeds from the sale of
the Bonds shall be applied in the following order:
(a) To pay all expenses incident to the issuance of
the Bonds; and
(b) To pay for constructing improvements and exten-
sions to the waterworks and sanitary sewer system of the
City, as authorized by this Ordinance, and any and all
reasonable costs and expenses incurred by the City in con-
nection therewith.
ARTICLE VI
SECURITY OF BONDS
Section 6.01 - Pledge of Net Revenues. All of the Net
Revenues derived from the operation of the System, with the
exception of those Net Revenues in excess of the amounts
required to establish and maintain the funds as hereinafter
provided, are hereby pledged to the payment of the principal
of and interest on the Bonds and any Additional Bonds. The
Net Revenues shall immediately be subject to the lien of
this pledge without any physical delivery thereof or further
act, and the lien of this pledge shall be valid and binding
against all parties of any kind having a claim of any kind
in tort, contract or otherwise, against the City irrespec-
tive of whether such parties have notice thereof.
Section 6.02 - Security of. Bonds. The Bonds and any
Additional Bonds shall be payable solely from and shall be
equally ratably secured by a first lien on and pledge of the
Net Revenues, and the Bonds and any Additional Bonds, when
and if issued, will be in all respects on a parity with and
of equal dignity with one another. The bearers or owners of
the Bonds shall never have the right to demand payment out
of any funds raised or to be raised by taxation.
Section 6.03 - Maintenance of Income. In order that
the Net Revenues of the City will be sufficient to pay the
Bonds and the interest thereon, the City shall fix and
maintain rates and collect charges for the facilities and
services afforded by the System that will provide Revenues
sufficient at all times:
(a) to pay all operation and maintenance expenses of
the System as provided in Section 7.04(a) of this Ordinance;
(b) to establish and maintain the Bond Fund and the
Reserve Fund; and
(c) to pay all indebtedness from time to time out-
standing against the System other than the Bonds as and when
the same becomes due.
Section 6.04 - Maintenance of Net Revenues. The City
further covenants that so long as the Bonds remain out-
standing it will maintain rates and collect charges for the
facilities and services afforded by the System that will
provide Net Revenues in each Fiscal Year that are at least
1.20 times all principal and interest payments during such
Fiscal Year on all Bonds and Additional Bonds then out-
standing.
ARTICLE VII
REVENUES AND APPLICATION THEREOF
Section 7.01 - Creation of Funds. There shall be
created the following funds:
(a) the System. Fund;
(b) the Bond Fund; and
(c) the Reserve Fund.
Each fund shall be kept separate and apart from all
other funds of the City. The System Fund shall be main-
tained at the official depository of the City. The Bond
Fund and the Reserve Fund shall constitute trust funds which
shall be held in trust by the depository solely for the
benefit of the bearers of the Bonds and Additional Bonds.
The System Fund shall be used solely as provided in this
Ordinance until all Bonds and Additional Bonds have been
retired as to principal and interest.
Section 7.02 - Security of Funds. All bank deposits to
the funds and accounts created by this Ordinance, to the
extent not insured by the Federal Deposit Insurance Corpora-
tion or the Federal Savings and Loan Insurance Corporation,
or the successor of either, shall be secured loy a valid
pledge of securities eligible under the laws of the State of
Texas to secure the funds of cities or towns, having an
aggregate market value, exclusive of accrued interest, at
all times not less than the amount of deposits credited to
such funds and accounts, respectively.
Section 7.04 - Use of Revenues. The City will deposit,
as collected, all Revenues derived from the ownership and
operation of the System into a special account (herein
called the "System Fund"), which shall be kept separate and
apart from all other funds of the City. The System Fund
shall be administered as follows:
(a) Maintenance and Operation: From the moneys in the
System Fund, the City. shall first pay the expenses of opera-
tion and maintenance, including all salaries, labor, materi-
als, interest and such repairs and extensions, as in the
judgment of the governing body of the City, are necessary to
keep the System .in operation and render adequate service to
the City, its inhabitants and other users of the System, or
such as might be necessary to meet some physical accident or
condition which would otherwise impair the ability of the
System to generate Net Revenues sufficient to pay principal
and interest on the Bonds, Additional Bonds and other in-
debtedness against the System.
(b) Bond Fund: After the payment of all expenses
provided for in the next preceding paragraph, the City shall
pay into the Bond Fund during each calendar year, beginning
with the year in which any of the Bonds are delivered, an
amount which, together with other moneys on deposit in the
Bond Fund, shall be equal to not less than 100% of the
amount required to meet the payments of principal and inter-
est on the Bonds that will be payable on or before the next
January 1, together with such other amounts as may be re-
quired in any other ordinance authorizing the issuance of
Additional Bonds. The amount required to be paid into the
Bond Fund each year shall be made in substantially equal
monthly payments from moneys in the System Fund, and such
monthly payments shall be made on or before the 15th day of
each month beginning with the date the Bonds are delivered
to the purchasers thereof. If in any month the City shall,
for any reason, fail to pay into said Bond Fund the full
amounts above stipulated, amounts equivalent to such defi-
ciencies shall be set apart and paid into said Bond Fund
from the first available and unallocated Net Revenues as of
the following month or months and shall be in addition to
the amounts hereinafter provided to be otherwise paid into
said Bond Fund each month.
Not later than ten days
interest payment date on the
the Town Council shall cause
Fund to the Paying Agent an
principal and/or interest to
at such date.
prior to each principal and/or
Bonds and any Additional Bonds,
to be transferred from the Bond
amount sufficient to pay the
become due and payable thereon
-(c) Reserve Fund: There is hereby established the
"Reserve Fund." Beginning with the month immediately
following the month in which any of the Bonds are delivered,
and after payment of all amounts required by Section 7.03(b),
there shall be paid during each month from the System Fund
into the Reserve Fund, the sum of $,3j,‘ %, , until such
time as there is in the Reserve Fund, as a result of such
deposits and interest or investment earnings, the sum of
$ 01018, 5 o . ' I f in any month the City shall, for any
reason, fail to pay into the Reserve Fund the full amount
herein provided, amounts equivalent to such deficiencies
shall be set apart and put into the Reserve Fund from the
first available and unallocated Net Revenues of the follow-
ing month or months after payment of all amounts required by
Section 7.03(b) and shall be in addition to the monthly
deposits herein required to be otherwise paid into the
Reserve Fund. Moneys in the Reserve Fund may be used only
to prevent a default in the payment of principal and inter-
est on the Bonds and Additional Bonds in the event there are
not otherwise sufficient moneys in the Bond Fund to make
such payments. So long as the Reserve Fund contains a
balance of not less than $ A'2,,09 5h0 , no further payments
need be made into the Reserve Fund. If the balance in the
Reserve Fund exceeds $ ,,,'4560 (due to interest on invest-
ments.or for any other reason), such excess may be trans-
ferred out of the Reserve Fund into the Bond Fund. If,
however, any of the moneys in the Reserve Fund are used to
prevent a default in the payment of principal of and inter-
est on the Bonds or Additional Bonds as herein provided,
monthly payments into the Reserve Fund shall.thereafter be
resumed and continued until not less than $ 5-6® is
again on deposit in the Reserve Fund. Moneys in the Reserve
Fund may, at the option of the City, be invested as autho-
rized by Section 7.04, and such securities shall be deposited
in escrow at the depository bank of the City under an escrow
agreement.
Section 7.04 - Investments. Moneys deposited into the
System Fund, Bond Fund and Reserve Fund may be invested and
reinvested in the manner authorized by law. All investments
and the interest or other investment earnings thereon shall
belong to the fund or account from which the moneys for such
investments were taken, except that at any time that the
Reserve Fund has a balance of $ 4,,') c or more, all
interest and other investment earnings on such balance may
be transferred to the Bond Fund. In the event any fund does
not have sufficient uninvested funds on hand to meet the
obligations payable out of such fund, the City shall have
the right to have sold in the open market a sufficient
amount of the investments to meet its obligations. The
moneys resulting from such sale or sales shall belong to the
fund from which the moneys for such investment were initi-
ally taken. The City shall not be responsible for any loss
arising out of the sale of any investments.
Section 7.05 - Surplus Net -Revenues. After provision
has been made for the reasonable cost of operating and
maintaining the System, and after paying all amounts re-
quired to be paid into the Bond Fund and Reserve Fund, as
above provided in Section 7.03(b) and (c), and after paying.
all other amounts that may be required by any ordinances
pertaining to Additional Bonds, any funds remaining in the
System Fund may be used by the City for any other purpose
permitted by law..
ARTICLE VIII
ADDITIONAL BONDS, REFUNDING BONDS AND DISCHARGE BY DEPOSIT
Section 8.01 - Additional Bonds. The City reserves the
right to issue, from time to time, additional parity bonds
in one or more installments, for completion, repair, improve-
ment, extension, enlargement, replacement, acquisitions,
construction or repair of the City's waterworks system,
sanitary sewer system, or both, or for any other lawful
purpose (the "Additional Bonds"), and such Additional Bonds,
when issued, may be secured by and payable from a first lien
on and pledge of the Net Revenues of the System in the same
manner and to the same extent as are the Bonds, and such
Additional Bonds may be, in all respects, of equal dignity
with the Bonds; provided, however, that no Additional Bonds
shall be issued unless each of the following conditions is
met, except in the case of Additional Bonds described in
Sections 8.02, 8.05 and 8.06, which may be issued as pro-
vided therein:
(a) The Additional Bonds are made payable on Sep-
tember 1 of each year;
(b) Provisions is made in the ordinance or ordinances
authorizing said Additional Bonds for monthly payments or
deposits into the Reserve Fund until. a balance is reached
(in addition to deposits into the Reserve Account required
by other ordinances or proceedings relating thereto and in
addition to any balance or balances required by said other
ordinances or proceedings) of not less than the maximum
annual principal and. interest requirements on the Bonds,
Additional Bonds, if any, and such Additional Bonds then
proposed to be issued, and such balance is to be reached
within approximately five (5) years from the date of such
proposed Additional Bonds;
(c) A certificate is executed by the Mayor and City
Secretary that each of the funds created by this Ordinance
or by any ordinance authorizing any previously issued Addi-
tional Bonds contains the amount of moneys then required to
be on deposit therein;
(d) A certificate is executed by the Mayor and City
Secretary to the effect that the City is not in default as
to any covenant, condition or obligation prescribed by any
ordinance authorizing the Bonds or any Additional Bonds; and
(e) A certificate is executed by a certified public
accountant to the effect that Net Revenues for the last
completed Fiscal Year or for any consecutive twelve (12)
month period within the last consecutive fifteen (15) month
period next preceding the adoption of the ordinance autho-
rizing. the Additional Bonds were not less than 1.50 times
the average annual principal and interest requirements on
the Bonds, any Additional Bonds then outstanding, and the
Additional Bonds then proposed to be issued.
Section 8.02 - Inferior Lien Bonds. The City also
reserves. the right to issue inferior lien bonds and pledge
the Net Revenues of the System to the payment thereof, such
pledge to be junior and subordinate in all respects to the
lien of the Bonds and any Additional Bonds.
Section 8.03 - Special Project Bonds. The City further
reserves the right to issue bonds in one or more install-
ments for the purchase, construction, improvement, exten-
sion, replacement, enlargement or repair of water, sewer
and/or drainage facilities necessary under a contract or
contracts with persons, corporations, municipal corpora-
tions, political subdivisions, or other entities, such bonds
to be payable from and secured solely by the proceeds of
such contract or contracts. The City further reserves the
right to refund such bonds.
Section 8.04 - Refunding Bonds. The City further
reserves the right to issue refunding bonds, either as
Additional Bonds or junior lien bonds, or to refund any of
the Bonds or Additional Bonds in any manner authorized by
law. Any refunding bonds so issued may enjoy complete
equality of lien with the portion of the Bonds or Additional
Bonds which are not refunded. Before issuing any refunding
bonds as Additional Bonds, the City must satisfy the re-
quirements of Sections 8.01(a) and (b).
Section 8.05 - Discharge By Deposit. The City may
discharge its remaining obligations to the bearers of the
Bonds by depositing with the Paying Agent, money which
(together with interest earned on or profits to be realized
from investments. in Governmental Obligations as described
below) will be sufficient to pay principal and interest to
maturity or to the date fixed for redemption of the Bonds.
Upon such deposit, the Bonds shall no longer be regarded as
outstanding and unpaid; provided, however, that provision
shall have been made by the City for the publication at
least one (1) time in a financial journal or publication
published in the City of New York, New York, or in the City
of Austin, Texas, of a notice to the bearers of the Bonds
that such money is so available for such payment. Money
held for payment in accordance with the provisions of this
Section may be invested in Governmental Obligations, which
term shall mean for the purposes of this Section any of the
following which are non -callable and which at the time of
investment are legal investments under any applicable laws
for the money proposed be invested therein: direct general
obligations.of the United States of America, or any obliga-
tions the payment of the principal of and interest on which
are unconditionally guaranteed by the.full faith and credit
of the United States of America. Such investments shall
mature in sufficient time, in the judgment of the City, to
make available money needed for the purposes intended. Net
interest earned on such investments, or portions thereof,
may be paid to the City if sufficient.funds will otherwise
be held by the Paying Agent to pay principal and interest on
the Bonds; otherwise, such interest or any part thereof
shall be used for payment of principal and interest on the
Bonds.
ARTICLE IX.
Special Covenants of the City
Section 9.01 - Covenants. The City, by and through
this Ordinance, expressly covenants as hereinafter provided
in this Article.
Section 9.02 - Punctual Payment of the Bonds. The City
will punctually pay or cause to be paid the interest on and
principal of the Bonds according to the terms thereof and
will faithfully do and perform, and at all times fully
observe, any and all covenants, undertakings, stipulations
and provisions contained herein or in any Bond executed and
delivered hereunder.
Section 9.03 - Maintenance of System. So long as any
of the Bonds remain outstanding, the City covenants that it
will at all times maintain the System, or cause the same to
be maintained, in good condition and working order and will
operate the same, or cause the same to be operated, in an
efficient and economical manner, at a reasonable cost and in
accordance with sound business principles. In operating and
maintaining the System, the City will comply with all con-
tractual provisions and agreements entered into by it and
with all valid rules, regulations, directions or orders of
any governmental, administrative or judicial body promulgat-
ing the same.
Section 9.04 - Power to Pledge. Revenues. The City has
the power to pledge the Net Revenues to the payment of the
Bonds and has lawfully exercised such power under the Con-
stitution and laws of the State of Texas and the Constitu-
tion of the United States of America.
Section 9.05 - System and Revenues not Encumbered.
Neither the System nor the Revenues thereof will be in any
way encumbered except as provided in this Ordinance.
Section 9.06 - Sale or Encumbrance of System. So long
as any of the Bonds remain outstanding, either as to prin-
cipal or interest, the City will not sell, dispose of or
encumber any of the improvements, facilities or properties
constituting the System; provided, however, that this pro-
vision shall not prevent the City from disposing of any
portion of the System which has been declared surplus or is
no longer needed for the proper operation of the System.
Any moneys received from the sale of surplus property may be
used for the replacement of the property sold. Any agree-
ment pursuant to which the City contracts with a person,
corporation, municipal corporation or political subdivision
to operate the System or to lease and operate all or part of
the System shall not be considered as an encumbrance of the
System.
Section 9.07 - Insurance. So long as any of the Bonds
remain outstanding, the City covenants that it will at all
times keep insured such parts of the System as are usually
insured by municipal corporations operating like properties
in_similar locations under the same circumstances. with a
responsible insurance company or companies against risks,
accidents or casualties against which and to the extent
insurance is usually carried by such municipal corporations;
provided, however, that at any time while any contractor
engaged in construction work shall be fully responsible
therefor, the City shall not be required to carry such
insurance. All such policies shall be made available for
inspection by the bearers .of the Bonds or their representa-
tives at all reasonable times.
Section 9.08_- Insurance Proceeds. In the event of any
loss or damage, the City covenants that it will reconstruct
or repair the destroyed or damaged portion of the System and
will apply the proceeds of the insurance policies covering
such loss or damage solely for that purpose. The City
covenants that it will begin such work or reconstruction or
repair promptly after such loss or damage shall occur and
will continue and properly complete the same as expeditious-
ly as possible and will pay, or cause to be paid, all costs
and expenses in connection therewith out of the insurance
proceeds so that the same shall be completed and the proper-
ty be free and clear of all mechanic's and other liens or
claims.
Section 9.09 - Excess Insurance Proceeds. Any insur-
ance proceeds remaining after the completion of and payment
for any such reconstruction or repairs shall be deposited to
the credit of the Bond Fund.
Section 9.10 - No Free Services. No free service or
services of the System shall be allowed, and should the City
or any of its agencies or instrumentalities make use of the
services and facilities of the System, payment of a reason-
able value thereof shall be made by the City out of funds
derived from sources other than the revenues and income of
the System.
Section 9.11 - No Competing System. To the extent •
that the City legally may do so, the City further covenants
that so long as any of the Bonds or interest thereon are
outstanding, no franchise shall be granted for the construc-
tion and operation of any competing system, and the City
will prohibit the construction and operation of any system
other than the System owned by the City.
ARTICLE X.
Default Provision
Section 10.01 - Remedies in Event of Default. In
addition to all of the rights and remedies provided by the
laws of the State of Texas, the City further covenants and
agrees that in the event of default in payment of principal
of or interest on any of the Bonds when due, or, in the
event it fails to make payments required to be made into the
Bond Fund or defaults in the observance or performance of
any other of the covenants, conditions or obligations set
forth in this Ordinance, the following remedies shall be
available:
(a) The bearers of any of the Bonds shall be entitled
to a writ of mandamus issued by a court of competent juris-
diction compelling and requiring the City and the officials
thereof to observe and perform any covenant, obligation or
condition prescribed in this Ordinance; and
(b) No delay or omission to exercise any right or
power accruing upon any delay shall impair any such right or
power or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and
power may be exercised from time to time and as often as may
be deemed expedient.
Section 10.02 - Ordinance is Contract. In considera-
tion of the purchase and acceptance of the Bonds authorized
to be issued hereunder by those who shall hold the same from
time to time, the provisions of the Ordinance shall be
deemed to be and shall constitute contracts between the City
and the bearers from time to time of the Bonds; and the
covenants and agreements herein set forth to be performed on
behalf of the City shall be for the equal benefit, protec-
tion and security of the bearers of any and all of the
Bonds, all of which, regardless of the time or times of
their issue or maturity, shall be of equal rank without
preference, priority or distinction of any of the Bonds over
any other thereof, except as expressly provided herein.
ARTICLE XI.
Accounting and Audits
Section 11.01 - Accounts, Records and Accounting Reports.
The City covenants and agrees that it will maintain in
conformity with generally accepted accounting principals for
municipalities books of records and accounts showing as a
separate system the accounts of the System, in which full,
true and proper entries will be made of all dealings, trans-
actions, business and matters .which in any way affect or
pertain to the operation of the System and the allocation
and application of the revenues thereof, and that such books
of the System will be available for inspection by the bearers
of any of the Bonds at reasonable hours and under reasonable
circumstances. The City will operate the System on the
basis of a Fiscal Year which currently begins October 1 and
which may be amended from time to time by the City.
Section 11.02 - Audit. After the end of each Fiscal
Year, the City will have an audit of the System by a certi-
fied public accountant for the last Fiscal Year, which shall
be submitted to the City within one hundred and twenty (120)
days after the end of the Fiscal Year.
Section 11.03 - Copies of Audit and Cost. The City
shall furnish copies of such audit (without cost) to the
Municipal Advisory Council of Texas, Austin, Texas, to the
original purchasers of the Bonds and to any bearer of 10% or
more of the outstanding Bonds who may so request in writing.
The cost of such audit shall be a proper expense of main-
tenance and operation of the System.
ARTICLE XII.
Sale, Approval, Registration
and Delivery of Bonds
Section 12.01 - Sale of Bonds. The Bonds are hereby
sold and shall be delivered to that bidder, or bidders,
submitting the bid which results in the lowest net interest
cost to the City subject to a resolution hereafter to be
adopted by the City Council, for the par value thereof and
accrued interest thereon to date of delivery, plus a premium
of $ , subject to the unqualified approving
opinions, as to the legality of the Bonds, of the Attorney
General of the State of Texas and of Vinson & Elkins, Houston,
Texas, market attorneys.
Section 12.02 - Approval, Registration and Delivery of
Bonds. The Mayor and City Secretary are hereby authorized
and directed to take and have charge of the records and
proceedings of the Bonds, and the Bonds, pending their
approval by the Attorney General of the State of Texas, and
their registration by the Comptroller of Public Accounts of
the State of Texas. Upon registration of said Bonds, the
Comptroller of Public Accounts (or a deputy designated in
writing to act for the Comptroller) shall manually sign the
Comptroller's certificate of registration described herein
to be printed on the back of each Bond, and the seal of the
Comptroller shall be impressed, or placed in facsimile, on
each of the Bonds.
ARTICLE XIII.
Arbitrage
The City Council certifies that based upon all facts,
estimates and circumstances now known or reasonably expected
to be in existence on the date the Bonds are delivered and
paid for, the City Council reasonably expects that the
proceeds of the Bonds will not be used in a manner that
would cause the Bonds or any portion of the Bonds to be an
"arbitrage bond" under Section 103(c) of the Internal Revenue
Code of 1954, as amended, and the regulations prescribed
thereunder. Furthermore, all officers, employees and agents
of the City are authorized and directed to provide certifi-
cations of facts, estimates and circumstances which are
material to the reasonable expectations of the City Council
as of the date the Bonds are delivered and paid for, and any
such certifications may be relied upon by counsel, by the
bearers of the Bonds, or by any person interested in the
exemption of interest on the Bonds from federal income
taxation. Moreover, the City Council covenants that it
shall make such use of the proceeds of the Bonds, regulate
investments of proceeds of the Bonds, and take such other
and further action as may be required so that the Bonds
shall not be "arbitrage bonds" under Section 103(c) of the
Internal Revenue Code of 1954, as amended, and regulations
prescribed from time to time thereunder.
ARTICLE XIV.
Miscellaneous Provisions
Section 14.01 - City's Successors and Assigns. When
ever in this Ordinance the City is named and referred to, it
shall be deemed to include its successors and assigns, and
all covenants and agreements in the ordinance contained by
and on behalf of the City shall bind. and inure to the bene-
fit of its successors and assigns whether or not so expressed.
Section 14.02 - No Recourse Against City Officers. No
recourse shall be had for the payment of the principal or
the interest on the Bonds or for any claim based thereon or'
in the ordinance against any officer of the City or any
person executing the Bonds.
Section 14.03 - Paying Agent,May Own Bonds. The Paying
Agent, in its individual or any other capacity, may become
the owner or pledgee of the Bonds with the same rights it
would have if it were not the Paying Agent.
Section_14.04 - Legal Holidays. In any case where the
date of maturity of interest and principal of the Bonds or
the date fixed for redemption of any Bonds shall be in the
State of Texas a legal holiday or a day on which banking
institutions are authorized by law to close, then payment of
interest or principal need not be made on such date but may
be made on the next succeeding day not a legal holiday or a
day on which banking institutions are authorized by law to
close in the State of Texas with the same force and effect
as if made on the date of maturity or the date fixed for
redemption and no interest shall accrue for the period from
and after such date.
Section 14.05 - Benefits of Ordinance Provision.
Nothing in this Ordinance or in the Bonds, expressed or
implied, shall give or be'construed to give any person, firm
or corporation, other than the City, the Paying Agent, and
the bearers of the Bonds, any legal or equitable right,
remedy or claim under or in respect of this Ordinance, or
under any covenant, condition or provision herein contained,
all the covenants, conditions and provisions contained in
this Ordinance or in the Bonds being for the sole benefit of
the City, the Paying Agent and the bearers of the Bonds.
Section 14.06 -.Unavailability of Authorized Publica-
tion. If, because of the temporary or permanent suspension
of any newspaper, journal or other publication, or for any
reason, publication of notice cannot be made meeting any
requirements herein established, any notice required to be
published by the provisions of this Ordinance shall be given
in such other manner and at such time or times as in the
judgment of the City shall most effectively approximate such
required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to
be in compliance with the requirements for publication
thereof.
Section 14.07 - Severability Clause. If any word,
phrase, clause, sentence, paragraph, section, or other part
of this Ordinance, or the application thereof to any person
or circumstance, shall ever be held to be invalid or uncon-
stitutional by any court of competent jurisdiction, the
remainder of this Ordinance and the application of such
word, phrase, clause, sentence, paragraph, section or other
part of this Ordinance to any other persons or circumstances
shall not be affected thereby.
Section 14.08 - Further Procedures. The Mayor and City
Secretary of the City and other appropriate officials of the
City are hereby authorized and directed to do any and all
things necessary and/or convenient to carry out the terms of
this Ordinance.
Section 14.09 - Repeal of Resolutions and Ordinances.
All resolutions or ordinances heretofore adopted by the City
Council in conflict with the provisions of this Ordinance
are hereby in all things repealed and shall be of no further
force or effect.
Section 14.10 - Effective Date of Ordinance. This
Ordinance shall take effect and be in full force upon and
after its having been read, considered and adopted by the
City Council at two regular sessions of the City Council.
Section 14.11 - Emergency Meeting. It is hereby offi-
cially found and determined that an emergency or urgent
public necessity exists which requires the holding of the
meeting at which this Ordinance is passed, such emergency or
urgent public necessity being that the proceeds from the
sale of the Bonds are required as soon as possible for
necessary and urgently needed public improvements; and that
said meeting was open to the public, and public notice of
the time, place, and purpose of said meeting was given, all
as required by Article 6252-17, Vernon's Texas Civil Statutes,
as amended.
PASSED AND APPROVED this 28th day of August, 1978.
Mayor, City of Pe'arland, Texas
ATTEST:
ityS,ecretar Icity of
Pearland, Te,�
.(SEAL).`
CITY OF PEARLAND , TEXAS
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
SERIES 1978
* * * * * * * *
$2 , 750 , 000
* * * * * * * *
6 . 40% , 5 . 60%, 5 . 40% , 5. 60% , 5. 70% ,
5. 80% , 5 . 90% , 6 . 00% , 6 . 10% and 6 . 20%
CITY OF PEARLAND, TEXAS
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
SERIES 1978
* * * * * * * *
$2, 750,000
* * * * * * * *
6 .40%, 5. 60%, 5. 40%, 5. 60% , 5. 70% ,
5. 80%, 5. 90% , 6 . 00% , 6.10% and 6 .20%
VINSON & ELKINS
ATTORNEYS AT LAW
FIRST CITY NATIONAL BANK BUILDING
HOUSTON, TEXAS 77002
OCT 17 1978
WE HAVE ACTED as bond counsel for the CITY OF PEARLAND,
TEXAS (the "City") , in connection with the bonds hereinafter
described (the "Bonds") :
CITY OF PEARLAND, TEXAS , PERMANENT IMPROVEMENT BONDS ,
SERIES 1978 , dated September 1, 1978 , numbered con-
secutively from 1 through 372 , both inclusive, in the
denomination of $5 , 000 each, aggregating $1, 860 , 000 ,
bearing interest per annum at the respective rates
shown below, interest payable March 1 , 1979 , and
semiannually thereafter on September 1 and March 1
in each year, and maturing serially on March 1 in
each year as follows :
$ 25 , 000 5 . 90% 1981
30 , 000 5 . 90% 1982
50 ,000 5 . 90% 1983/86
30 ,000 5 . 90% 1987
50 ,000 4 . 90% 1988
125 ,000 5 . 00% 1989/90
125 , 000 5 . 10% 1991
125 ,000 5 . 20% 1992
125 , 000 5 . 25% 1993
200 , 000 5 . 30% 1994
200 ,000 5 . 40% 1995
250 , 000 5 . 50% 1996/97
The Bonds are redeemable in whole or in part, in
inverse numerical order, on March 1, 1993 , or on
any interest payment date thereafter, at the price
of par and accrued interest to the date fixed for
redemption. The Bonds were authorized at an elec-
tion held within the City on May 13 , 1978 .
WE HAVE ACTED as bond counsel for the sole purpose of
rendering an opinion with respect to the legality and validity
of the Bonds under the Constitution and laws of the State of
Texas , under which the City is acting as an incorporated city
of the State of Texas , and with respect to the exemption of
interest on the Bonds from Federal income taxation. We have
not been requested to investigate or verify and have not in-
vestigated or verified original proceedings , records , data,
or other material , but have relied solely upon certificates
executed by public officials and representatives of the City .
We have not assumed any responsibility with respect to the
financial condition or capabilities of the City or the dis-
closure thereof in connection with the sale of the Bonds .
IN OUR CAPACITY as bond counsel , we have examined a trans-
cript of certified proceedings pertaining to the Bonds which
contains certified copies of certain election proceedings ,
certain proceedings of the City Council of the City , customary
nrrcn+ c ranracan-hati vac of fhP
VINSON & ELKINS
ATTORNEYS AT LAW
FIRST CITY NATIONAL BANK BUILDING
HOUSTON, TEXAS 77002
OCT 17 1978
WE HAVE ACTED as bond counsel for the CITY OF PEARLAND,
TEXAS (the "City") , in connection with the bonds hereinafter
described (the "Bonds") :
CITY OF PEARLAND, TEXAS , PERMANENT IMPROVEMENT BONDS ,
SERIES 1978 , dated September 1, 1978 , numbered con-
secutively from 1 through 372 , both inclusive, in the
denomination cf $5 , 000 each, aggregating $1, 860 , 000 ,
bearing interest per annum at the respective rates
shown below, interest payable March 1 , 1979 , and
semiannually thereafter on September 1 and March 1
in each year, and maturing serially on March 1 in
each year as follows :
$ 25 , 000 5 . 90% 1981
30 , 000 5 . 90% 1982
50 ,000 5 . 90% 1983/86
30 ,000 5 . 90% 1987
50 ,000 4 . 90% 1988
125 , 000 5 . 00% 1989/90
125 ,000 5 . 10% 1991
125 ,000 5 . 20% 1992
125 ,000 5 . 25% 1993
200 , 000 5 . 30% 1994
200 ,000 5 . 40% 1995
250 , 000 5 . 50% 1996/97
The Bonds are redeemable in whole or in part, in
inverse numerical order , on March 1, 1993 , or on
any interest payment date thereafter, at the price
of par and accrued interest to the date fixed for
redemption. The Bonds were authorized at an elec-
tion held within the City on May 13 , 1978 .
WE HAVE ACTED as bond counsel for the sole purpose of
rendering an opinion with respect to the legality and validity
of the Bonds under the Constitution and laws of the State of
Texas, under which the City is acting as an incorporated city
of the State of Texas , and with respect to the exemption of
interest on the Bonds from Federal income taxation. We have
not been requested to investigate or verify and have not in-
vestigated or verified original proceedings , records , data,
or other material , but have relied solely upon certificates
executed by public officials and representatives of the City .
We have not assumed any responsibility with respect to the
financial condition or capabilities of the City or the dis-
closure thereof in connection with the sale of the Bonds .
IN OUR CAPACITY as bond counsel , we have examined a trans-
cript of certified proceedings pertaining to the Bonds which
contains certified copies of certain election proceedings ,
certain proceedings of the City Council of the City , customary
certificates of officers , agents and representatives of the
City, and other certified showinas relating to the authoriza-
examination of the Official Notice of Sale and the Official
Statement prepared by the City ' s financial advisors in con-
nection with the sale of the Bonds , such examination having
been limited solely to matters concerning the description of
certain terms of the Bonds to verify that such description
conforms to the provisions of the ordinance adopted by the
City Council of the City authorizing the Bonds . We have also
examined executed Bond No. 1 of this issue.
BASED ON SAID EXAMINATION, IT IS OUR OPINION that the
transcript of certified proceedings evidences complete legal
authority for the issuance of the Bonds in full compliance
with the Constitution and laws of the State of Texas presently
effective; that therefore the Bonds constitute valid and
legally binding obligations of the City, and that all taxable
property within the City is subject to the levy of ad valorem
taxes , within the limits prescribed by law, to pay the Bonds
and the interest thereon.
IT IS OUR FURTHER OPINION that the interest on the Bonds
is exempt from all present Federal income taxation under existing
statutes , regulations , published rulings and court decisions .
VINSON & ELKINS
ATTORNEYS AT LAW
FIRST CITY NATIONAL BANK BUILDING
HOUSTON, TEXAS 77002
00 17 1978
WE HAVE ACTED as bond counsel for the CITY OF PEARLAND ,
TEXAS (the "City") , in connection with an issue of bonds (the
"Bonds") described as follows :
CITY OF PEARLAND, TEXAS , WATERWORKS AND SEWER SYSTEM
REVENUE BONDS , SERIES 1978 , dated September 1, 1978 ,
numbered consecutively from 1 through 550 , in the
denomination of $5, 000 each, aggregating $2 , 750 , 000 ,
bearing interest per annum at the respective rates
shown below, interest payable March 1 , 1979 , and
semiannually thereafter on September 1 and March 1
in each year, and maturing serially on September 1
in each year as follows :
$ 50 , 000 6 . 40% 1979/81
60 ,000 6 . 40% 1982
70 , 000 6 . 40% 1983/84
75 ,000 6 . 40% 1985
80 ,000 6 . 40% 1986/87
90 , 000 6 . 40% 1988
100 , 000 5 . 60% 1989
100 , 000 5 . 40% 1990
110 , 000 5 . 40% 1991
120 , 000 5 . 40% 1992
125 , 000 5 . 60% 1993
130 , 000 5 . 70% 1994
140, 000 5 . 80% 1995
r150 , 000 5 . 90% 1996
160 , 000 6 . 00% 1997
170 , 000 6 . 10% 1998
180 , 000 6 . 20% 1999
190 , 000 6 . 20% 2000
200 , 000 6 . 20% 2001/02
The Bonds are redeemable in whole , or in part in
inverse numerical order, on September 1 , 1993 , or
on any interest payment date thereafter, at par plus
accrued interest to the date fixed for redemption.
The Bonds were authorized at an election held within
the City on May 13 , 1978 .
WE HAVE ACTED as bond counsel for the sole purpose of
rendering an opinion with respect to the legality and validity
of the Bonds under the Constitution and laws of the State of
Texas , under which the City is acting as an incorporated city
of the State of Texas , and with respect to the exemption of in-
terest on the Bonds from Federal income taxation. We have not
been requested to investigate or verify and have not investi-
gated or verified original proceedings , records , data or other
material, but have relied solely upon certificates executed by
public officials and representatives of the City. We have not
assumed any responsibility with respect to the financial condi-
tion or capabilities of the City or the disclosure thereof in
IN OUR CAPACITY as bond counsel, we have examined a tran-
script of certified proceedings pertaining to the Bonds which
contains certified copies of certain election proceedings ,
certain proceedings of the City Council of the City, customary
certificates of officers , agents and representatives of the
City, and other certified showings relating to the authoriza-
tion and issuance of the Bonds . We have also examined executed
Bond No. 1 of this issue.
BASED ON SAID EXAMINATION, IT IS OUR OPINION that the
transcript of certified proceedings evidences complete legal
authority for the issuance of the Bonds in full compliance
with the Constitution and laws of the State of Texas presently
effective; that therefore the Bonds constitute valid and
legally binding special obligations of the City, and that the
Bonds are payable from, and secured by a first lien on and
pledge of, the Net Revenues from the operation of the City ' s
waterworks and sanitary sewer system to be purchased and con-
structed, as defined and provided in the ordinance adopted
by the City Council of the City authorizing the Bonds (the
"Ordinance" ) .
THE CITY has reserved the right, subject to the restric-
tions stated in the Ordinance, to issue additional revenue
bonds , for any lawful purpose, to be on a parity with the
Bonds and to be payable from, and secured by a first lien on
and pledge of, the aforesaid Net Revenues in the same manner
and to the same extent as the Bonds .
THE BONDS and the interest coupons thereto appertaining
recite on their faces that the holders thereof shall never have
the right to demand payment of the principal of or interest on
the Bonds out of any funds raised or to be raised by taxation .
IT IS OUR FURTHER OPINION that the interest on the Bonds
is exempt from all present Federal income taxation under existing
WATER RATES
Gallons Per Month Charge Per 1 , 000 Gallons
Old Rates New Rates
First 3 , 000 (minimum billing) $3 . 00 $5. 50
Next 2 , 000 . 75 1 . 00
Next 5, 000 . 65 . 85
Next 5, 000 . 60 . 75
Next 10 , 000 . 50 . 70
Next 10, 000 . 40 . 65
Next 10, 000 . 40 . 60
Over 45, 000 . 35 . 50
SEWER RATES
In March of each year the monthly sewer rental charge
is recalculated for all customers based on 60% of their
average water bill for the three preceding months .
This amount becomes the monthly sewer charge for the
following twelve months . ($3. 30 Monthly Minimum) .
5. The following is a true and correct statement of the
gross revenues , the maintenance and operation expenses , and
the net revenues of the City ' s waterworks and sanitary sewer
system for the indicated twelve-month periods ending September
30 , respectively:
12 Months Net
Ended Gross Income M & 0 Revenues
9-30-74 $273 , 610 $214 , 387 $ 59 ,223
9-30-75 322 , 302 305 , 491 16 , 811
9-30-76 392 , 318 346 , 317 46 , 001
9-30-77 501, 179 362 , 472 138 , 707
The following is a true and correct statement of the gross
revenues , the maintenance and operation expenses , and the net
revenues of the City ' s waterworks and sanitary sewer system
for the nine-month period ending June 30 , 1978 :
Gross Revenues M & 0 Net Revenues
$446 , 102 $325 , 861 $120 , 241
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this
28th day of August, 1978 .
City Secreta
CITY OF PEA AND , TEXAS
(SEAL)
NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
NOTICE is hereby given of a meeting of the City Council
of the CITY OF PEARLAND, Brazoria and Harris Counties , Texas
(the "City") , to he held on the 24th day of April, 1978, at
7 : 30 p .m. in the :
City Hall
Pearland, Texas
for the purpose of considering and, if deemed advisable by
the City Council, adopting a resolution calling a bond election,
and for the purpose of conducting, considering and acting upon
such other business as shall come before the meeting.
The need of the City for such financing creates an emer-
gency and an urgent public necessity for the holding of the
meeting and for the adoption of such resolution at the meeting .
WITNESS MY HAND AND OFFICIAL SEAL OF THE CITY, this I6
day of April, 1978 .
/s/ Dorothy L . Cook
City Secretary
CITY OF PEARLAND , TEXAS
(SEAL)
AVISO DE REUNION
EL ESTADO DE TEXAS X
CONDADOS DE BRAZORIA Y HARRIS X
CIUDAD DE PEARLAND X
SE DA AVISO por la presente, de una reunion del Consejo
Municipal de la CIUDAD DE PEARLAND, Condados de Brazoria y
Harris, Texas (la "Ciudad") , a celebrarse el dia 24 de abril
de 1978, a las 7 : 30 p.m. en el:
Cabildo Municipal
Pearland, Texas
con el proposito de considerar, y si el Consejo Municipal to
estima necesario, adoptar una resolucion convocando una
eleccion de bonos, y con el proposito de conducir, con-
siderar y actuar sobre cualquier otro asunto que se presen-
tase ante la reunion.
La necesidad de la Ciudad para tal finaciamiento crea
una emergencia y una urgente necesidad ptiblica para la cele-
bracion de la reunion y para la adopcion de dicha reso-
lucion en el transcurso de la reunion.
DADO BAJO MI FIRMA Y EL SELLO OFICIAL DE LA CIUDAD,
este dia •qo de abril de 1978 .
/fdo/ Dorothy L. Cook
Secretaria de la Ciudad
CIUDAD DE. PEARLAND, TEXAS
(SELLO)
, rim r.— r•a ram o= ^ ^ 0--1 •-'! -my wag mei
CERTIFICATE OF POSTING OF
NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
I, the undersigned officer of the CITY OF PEARLAND,
Brazoria and Harris Counties, Texas (the "City" ) , do hereby
execute this certificate for the benefit of all persons in-
terested in the posting of notice of a meeting of the City
Council of the City as required by the Open Meetings Act
(Article 6252-17, Vernon' s Texas Civil Statutes, as amended)
and the validity of all actions and proceedings taken at such
meeting and I do hereby certify as follows :
1. I am the duly chosen, qualified and acting officer
of the City for the office shown beneath my signature, and
in such capacity I am familiar with the matters contained in
this certificate .
2 . The attached and foregoing are true and correct
copies in English and Spanish, respectively, of the Notice of
Meeting which was posted by me at io.•0r, o ' clock /4 .m. on the
<Aa day of , 1978 , in a place readily accessible
to the general public at all times , to-wit :
, in the City Hall of the
City.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this
cA0 day of �4_„o , 1978 .
City Secret.
CITY ,4—
,; CITY OF PEARLAND, TEXAS
•
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NOTICE OF BOND ELECTION
TO THE RESIDENT, QUALIFIED ELECTORS OF THE CITY OF PEARLAND ,
TEXAS :
NOTICE IS HEREBY GIVEN that an election will be held in
the CITY OF PEARLAND, TEXAS, on the 13th day of May, 1978,
in accordance with the following resolution :
GENERAL CERTIFICATE
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
I, the undersigned, City Secretary of the CITY OF
PEARLAND, TEXAS (the "City") , do hereby make and execute this
certificate for •the benefit of the Attorney General of the
State of Texas and all other persons interested in the City 's
$2, 750 , 000 WATERWORKS AND SEWER SYSTEM REVENUE BONDS , SERIES
1978 (the "Bonds" ) , dated September 1, 1978 , now in process of
issuance. I certify that:
1. The following persons constitute the City Council of
the City:
Tom Reid Mayor
Dennis Frauenberger Councilman
Harry Farley Councilman
Fran Coppinger Councilman
Morris S . Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
2 . The Home-Rule Charter of the City has not been amended,
altered, changed, or repealed since the issuance of the City ' s
Certificates of Obligation, Series 1976 , dated July 1, 1976 ,
Comptroller ' s Registration No. 43283 , except for the amendments
adopted on April 3 , 1978.
3 . Neither the revenues nor the properties of the City ' s
waterworks and sanitary sewer system are in any way pledged
or hypothecated other than the pledge of the revenues of said
system to the payment of the Bonds .
4 . The following rates for services rendered by the
City' s waterworks and sanitary sewer system, respectively,
were established by ordinance of the City Council of August 9 ,
1971, as amended by ordinance adopted on July 24 , 1978 ; the
CERTIFICATE FOR RESOLUTION CALLING BOND ELECTION
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
We, the undersigned officers of the CITY OF PEARLAND ,
TEXAS (the "City" ) , do hereby certify as follows :
1 . That we are the duly chosen, qualified and acting
officers of the City for the offices shown below our signatures
and that as such we are familiar with the facts herein certified .
2 . That there is attached to and follows this certificate
an excerpt of proceedings from the minutes of a meeting of the
City Council of the City (the "City Council" ) which is a true ,
full and complete excerpt of all proceedings from the minutes of
the City Council pertaining to the adoption of the resolution de-
scribed therein; and that the persons named in such excerpt as
the officers and members of the City Council or as officers of
the City are the duly chosen, qualified and acting officers and
members as indicated therein.
3 . That a true and complete copy of the resolution (the
"Resolution") , as adopted at the meeting described in such excerpt
from the minutes , is attached to and follows such excerpt .
u . That the Resolution has been duly and lawfully adopted
by the City Council and that the Mayor of the City has approved ,
and hereby approves , the Resolution; that the Mayor and the City
Secretary of the City have duly signed and attested the Resolution
and each, respectively, hereby declares that the signing of this
certificate shall also constitute the signing of the Resolution
for all purposes ; and that the Resolution , as signed, has been
duly recorded in the minutes of the City Council for such meeting .
5 . That each of the officers and members of the City
Council was duly and sufficiently notified officially and per-
sonally, in advance , of the date, hour, place and subject of
such meeting of the City Council, and that the Resolution would
be introduced and considered for passage at such meeting , and
each of such officers and members consented, in advance , to the
holding of such meeting to consider and act upon such subject .
6 . That written notice of the meeting of the City Council
described in the excerpt from the minutes was posted in the form
and manner required by law; and that such meeting was open to the
public as required by law at all times during which the Resolution
and the subject matter thereof were discussed , considered and
formally acted upon , all as required by the Open Meetings Act ,
Article 6252-17 , Vernon ' s Texas Civil Statutes , as amended .
Pimm pm= i= immm imam Imml. Mom =mi. ■.m
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
The City Council of the City of Pearland, Texas , convened
in regular meeting , open to the public , on the 24th day of
April, 1978 , at the City Hall, and the roll was called of the
duly constituted officers and members of the City Council and
the City Secretary of the City, to-wit :
Tom Reid Mayor
Dennis Frauenberger Councilman
Harry Farley Councilman
Fran Coppinger Councilman
Morris S . Wilson Councilman
Carlton McComb Councilman
Dorothy L . Cook City Secretary
and all of said persons were present , except the following ab-
sentees : None
thus constituting a quorum . Whereupon , among other business ,
the following was transacted at said meeting : a written reso-
lution entitled :
RESOLUTION CALLING BOND ELECTION
(the "Resolution" ) was duly introduced for the consideration
of the City Council and reviewed in full . It was then duly
moved and seconded that the Resolution be passed; and , after
due discussion, the motion, carrying with it the passage of
the Resolution, prevailed and carried by the following vote :
AYES : All members of the City Council shown
present above voted "Aye" .
NOES : None .
The Mayor thereupon announced that the Resolution had been duly
and lawfully adopted. The Resolution thus adopted follows :
r-- • r- r-- r - r- r.. p.m wmq "'1 ...1 ..1 — ..7
RESOLUTION CALLING BOND ELECTION
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
WHEREAS, the City Council deems it necessary to call the
election hereinafter described;
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND THAT:
Section 1 . An election shall be held in the CITY OF
PEARLAND on the 13th day of May, 1978, in which all resident ,
qualified electors of the City shall be entitled to vote ; the
polls shall be open for voting from 7 : 00 a.m. to 7 : 00 p .m. at
the following polling place and the following are hereby ap-
pointed officers to conduct the election at said polling place :
POLLING PLACE :
Pearland High School Building
2337 North Galveston Avenue
Pearland, Texas
ELECTION OFFICERS :
Jack Farmer Presiding Judge
Ruby Bozka Alternate Presiding Judge
Maximum number of clerks : 5
The presiding judge shall appoint not less than two or
more than the maximum number of election clerks specified
above to serve at the polling place under his jurisdiction.
Said presiding judge and one such clerk, to be designated by
such presiding judge , shall also serve as the special canvassing
board for absentee voting .
Dorothy L. Cook is hereby appointed as the clerk and
Dorothy Thompson, Mabel Salyer and Barbara Lenamon the assis-
is hereby designated as the place for absentee voting for said
election . Said clerks shall keep said office open for at least
eight ( 8) hours , that is , from 8 : 00 a .m. to 5 : 00 p .m . , on each
day for absentee voting which is not a Saturday , a Sunday , or
an official State holiday; provided, however, except as autho-
rized by Article 5 . 05 , Subdivisions 3d and 3e , Texas Election
Code, said clerks shall not permit anyone to vote absentee by
personal appearance on any day which is not a regular working
day for the clerk' s office , and under no circumstances shall
they permit anyone to vote absentee by personal appearance at
any time when such office is not open to the public .
Section 2 . At said election the following PROPOSITIONS
shall be submitted in accordance with law :
PROPOSITION 1
SHALL THE CITY COUNCIL OF THE CITY OF PEARLAND , TEXAS (THE
"CITY" ) , BE AUTHORIZED TO ISSUE THE BONDS OF THE CITY, IN ONE
OR MORE SERIES OR ISSUES , IN THE AGGREGATE PRINCIPAL AMOUNT
OF $2 , 225 ,000 WITH THE BONDS OF EACH SERIES OR ISSUE , RESPEC-
TIVELY, TO MATURE SERIALLY WITHIN NOT TO EXCEED 40 YEARS FROM
THEIR DATE, AT ANY PRICE OR PRICES AND BEARING INTEREST AT
ANY RATE OR RATES NOT TO EXCEED THE MAXIMUM INTEREST RATE NOW
OR HEREAFTER AUTHORIZED BY LAW AS SHALL BE DETERMINED WITHIN
THE DISCRETION OF THE CITY COUNCIL, FOR THE PURPOSE OF CON-
STRUCTING IMPROVEMENTS AND EXTENSIONS TO THE SANITARY SEWER
SYSTEM OF THE CITY, THE INTEREST ON AND PRINCIPAL OF THE
BONDS TO BE SECURED BY AND PAYABLE FROM A LIEN ON AND PLEDGE
OF THE NET REVENUES OF THE CITY 'S WATERWORKS AND SANITARY
SEWER SYSTEM?
PROPOSITION 2
SHALL THE CITY COUNCIL OF THE CITY OF PEARLAND , TEXAS (THE
"CITY" ) , BE AUTHORIZED TO ISSUE THE BONDS OF THE CITY, IN ONE
OR MORE SERIES OR ISSUES, IN THE AGGREGATE PRINCIPAL AMOUNT
OF $525,000 WITH THE BONDS OF EACH SERIES OR ISSUE, RESPEC-
TIVELY, TO MATURE SERIALLY WITHIN NOT TO EXCEED 40 YEARS FROM
THEIR DATE , AT ANY PRICE OR PRICES AND BEARING INTEREST AT
ANY RATE OR RATES NOT TO EXCEED THE MAXIMUM INTEREST RATE NOW
OR HEREAFTER AUTHORIZED BY LAW AS SHALL BE DETERMINED WITHIN
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PROPOSITION 3
SHALL THE CITY COUNCIL OF THE CITY OF PEARLAND , TEXAS (THE
"CITY" ) , BE AUTHORIZED TO ISSUE THE BONDS OF THE CITY, IN ONE
OR MORE SERIES OR ISSUES , IN THE AGGREGATE PRINCIPAL AMOUNT
OF $1, 430 , 000 WITH THE BONDS OF EACH SERIES OR ISSUE, RESPEC-
TIVELY, TO MATURE SERIALLY WITHIN NOT TO EXCEED 40 YEARS FROM
THEIR DATE, AT ANY PRICE OR PRICES AND BEARING INTEREST AT
ANY RATE OR RATES NOT TO EXCEED THE MAXIMUM INTEREST RATE NOW
OR HEREAFTER AUTHORIZED BY LAW AS SHALL BE DETERMINED WITHIN
THE DISCRETION OF THE CITY COUNCIL, FOR THE PURPOSE OF CON-
STRUCTING A NEW CITY HALL BUILDING FOR THE CITY, AND TO LEVY
TAXES ON ALL TAXABLE PROPERTY WITHIN THE CITY ANNUALLY SUFFI-
CIENT TO PAY THE INTEREST ON SAID BONDS AS IT ACCRUES AND TO
CREATE A SINKING FUND TO PAY THE PRINCIPAL OF SAID BONDS AS
IT MATURES?
PROPOSITION 4
SHALL THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS (THE
"CITY" ) , BE AUTHORIZED TO ISSUE THE BONDS OF THE CITY, IN ONE
OR MORE SERIES OR ISSUES , IN THE AGGREGATE PRINCIPAL AMOUNT
OF $610 , 000 WITH THE BONDS OF EACH SERIES OR ISSUE, RESPEC-
TIVELY, TO MATURE SERIALLY WITHIN NOT TO EXCEED 40 YEARS FROM
THEIR DATE, AT ANY PRICE OR PRICES AND BEARING INTEREST AT
ANY RATE OR RATES NOT TO EXCEED THE MAXIMUM INTEREST RATE NOW
OR HEREAFTER AUTHORIZED BY LAW AS SHALL BE DETERMINED WITHIN
THE DISCRETION OF THE CITY COUNCIL, FOR THE PURPOSE OF CON-
STRUCTING A NEW LIBRARY BUILDING FOR THE CITY, AND TO LEVY
TAXES ON ALL TAXABLE PROPERTY WITHIN THE CITY ANNUALLY SUFFI-
CIENT TO PAY THE INTEREST ON SAID BONDS AS IT ACCRUES AND TO
CREATE AND PROVIDE A SINKING FUND TO PAY THE PRINCIPAL OF
SAID BONDS AS IT MATURES?
PROPOSITION 5
SHALL THE CITY COUNCIL OF THE CITY OF PEARLAND , TEXAS (THE
"CITY" ) , BE AUTHORIZED TO ISSUE THE BONDS OF THE CITY, IN ONE
OR MORE SERIES OR ISSUES , IN THE AGGREGATE PRINCIPAL AMOUNT
OF $1, 860 , 000 WITH THE BONDS OF EACH SERIES OR ISSUE, RESPEC-
TIVELY, TO MATURE SERIALLY WITHIN NOT TO EXCEED 40 YEARS FROM
THEIR DATE, AT ANY PRICE OR PRICES AND BEARING INTEREST AT
ANY RATE OR RATES NOT TO EXCEED THE MAXIMUM INTEREST RATE NOW
OR HEREAFTER AUTHORIZED BY LAW AS SHALL BE DETERMINED WITHIN
THE DISCRETION OF THE CITY COUNCIL, FOR THE PURPOSE OF THE
CONSTRUCTION AND IMPROVEMENT OF THE ROADS , BRIDGES , AND STREETS
OF THE CITY, AND TO LEVY TAXES ON ALL TAXABLE PROPERTY WITHIN
THE CITY ANNUALLY SUFFICIENT TO PAY THE INTEREST ON SAID BONDS
AS IT ACCRUES AND TO CREATE A SINKING FUND TO PAY THE PRINCI-
PAL OF SAID BONDS AS IT MATURES?
Section 3 . An electronic voting system, as defined and
officers of said election to serve at the Central Counting
Station, which is hereby established at the Brazoria County
Courthouse :
Manager of the Central
Counting Station : J . C . McNeill
Tabulation Supervisor : Hoyt Holcomb
Presiding Judge for the
Central Counting Station : Howard Suttle
The Manager and Presiding Judge of the Central Counting Station
shall appoint not more than one clerk to serve at the Central
Counting Station . The official ballot cards and ballot labels ,
respectively, for the election shall be prepared in accordance
with the Texas Election Code so as to permit the electors to
vote "FOR" or "AGAINST" the aforesaid PROPOSITIONS which shall
be set forth on such ballot cards and ballot labels in substan-
tially the following form:
OFFICIAL BALLOT
PROPOSITION 1
[ ] FOR ) THE ISSUANCE OF $2 , 225 , 000
)----SANITARY SEWER SYSTEM
[ ] AGAINST ) REVENUE BONDS
PROPOSITION 2
[ ] FOR ) THE ISSUANCE OF $525 , 000
)----WATERWORKS SYSTEM REVENUE
[ ] AGAINST ) BONDS
PROPOSITION 3
[ ] FOR ) THE ISSUANCE OF $1, 430 , 000
[ ] AGAINST )----CITY HALL BUILDING BONDS
PROPOSITION 4
[ ] FOR ) THE ISSUANCE OF $610 , 000
[ ] AGAINST )----LIBRARY BUILDING BONDS
Section 4 . Notice of such election shall be given by
posting a substantial copy of this resolution in a public
place within the City and also at the City Hall not less than
fifteen days prior to the date set for the election , and by
publication thereof on the same day in each of two successive
weeks in the Journal, the duly designated official newspaper of
the City, which is published in the City and is of general circu-
lation in the City, the date of the first publication to be not
less than fourteen days prior to the date set for the election.
Section 5 . Said election shall be held in accordance with
the Texas Election Code , except as modified by the Federal Voting
Rights Act of 1965 , as amended .
Section 6 . This resolution was read once by the City
Council and shall take effect immediately .
Section 7 . 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 resolution is adopted and for the adoption of this resolu-
tion; and the NOTICE OF MEETING relating to said meeting and
heretofore posted by the City Secretary , and the posting
thereof, are hereby authorized, approved, adopted , and ratified.
PASSED AND APPROVED this 24th day of April , 1978 .
/s/ Tom Reid
ATTEST : Mayor
CITY OF PEARLAND , TEXAS
/s/ Dorothy L . Cook
City Secretary
.M
YOU WILL, THEREFORE, TAKE NOTICE of all matters and facts
set out in the foregoing notice and resolution.
/s/ Dorothy L . Cook
City Secretary
CITY OF PEARLAND , TEXAS
(SEAL)
CERTIFICATE OF POSTING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
I, the undersigned, City Secretary of the CITY OF PEARLAND,
TEXAS, do hereby certify that the attached and foregoing is a
true and correct copy of a NOTICE OF BOND ELECTION issued by
me , including a true and correct copy of the resolution adopted
by the City Council of the City, together with an excerpt from
the minutes showing the adoption thereof, and that I posted a
true and correct copy of said notice on the 26 day of April ,
1978, in a public place within the City , to-wit : Bulletin Board
of Krogers , 3260 E . Broadway, Pearland , Texas , and also
at the City Hall, which posting was done not less than fifteen
days prior to the date set for the election.
WITNESS MY HAND AND THE OFFICIAL SEAL OF SAID CITY, this
26 day of April , 1978 .
City Secreta
CITY OF PE LAND, TEXAS
r ,
;(SEAL)
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(Please attach new , _ .ngs
here ar.€i:ft 'above this line . )
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS §
COUNTY OF BRAZORIA §
BEFORE ME, the undersigned authority, on this day person—
ally appeared :'arie .:oore
(Editor/Publisher) of the Journal, who , being by me duly sworn,
upon oath, deposes and says :
The attached clippings (one in English and
one in Spanish) of a NOTICE OF BOND ELECTION
was published in the Journal (a newspaper
published in the City of Pearland and of
general circulation therein) on the same day
in each of two successive weeks , the date
of the first publication being not less than
fourteen days prior to the date set for the
election, in the issues of :
April 27 , 1978
:.may 4 , 1978
and the attached newspaper clippings are true
and correct copies of said published notice .
r
SWORN TO AND SUBSCRIBED BEFORE ME, this tth day of
, 1978 .
"tt-tt-4 /
Notar "ublic i and for
Brazoria County, Texas
/11ftab ^a Pro . . . Emma/ met
0
NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
NOTICE is hereby given of a meeting of the City Council
of the CITY OF PEARLAND, Brazoria and Harris Counties , Texas
(the "City" ) , to be held on the 15th day of May, 1978 , at
7 : 30 p .m. in the :
City Hall
Pearland, Texas
for the purpose of adopting a resolution canvassing returns
and declaring results of a bond election held on May 13 , 1978 ,
and for the purpose of conducting, considering, and acting
upon such other business as shall come before the meeting .
The need of the City for such financing creates an emer-
gency and an urgent public necessity for the holding of the
meeting and for the adoption of such resolution at the meeting .
WITNESS MY HAND AND OFFICIAL SEAL OF THE CITY, this //
day of May , 1978 .
•
/s/ Dorothy L . Cook
City Secretary
CITY OF PEARLAND , TEXAS
(SEAL)
r
AVISO DE UNA REUNION
EL ESTADO DE TEXAS X
CONDADOS DE BRAZORIA X
Y HARRIS X
CIUDAD DE PEARLAND X
SE AVISA POR LA PRESENTE que se llevard a cabo una
reuni6n del Cabildo Municipal de la CIUDAD DE PEARLAND,
Condados de Brazoria y Harris, Texas (la "Ciudad" ) , el dia
13 de mayo de 1978 , a las 7 : 30 p.m. en el:
City Hall
Pearland, Texas
con el fin de adoptar una resoluci6n para escrutar y declarar
los resultados de la eleccion de bonos realizada el 13 de
mayo de 1978, y para conducir, considerar, y actuar sobre
cualquier otro asunto que se presente a la reuni6n.
La necesidad de la Ciudad de obtener tal financiaci6n
constituye una emergencia y un urgente requisito publico
para llevar a cabo la reuni6n y para la adopci6n de la
resoluci6n en la reuni6n.
DADO BAJO MI FIRMA Y EL SELLO OFICIAL DE LA CIUDAD este
dia // de mayo de 1978 .
/fdo/ Dorothy L. Cook
Secretaria Municipal
CIUDAD DE PEARLAND, TEXAS
(SELLO)
r--. r.. r-- r- r... r.. p . ■.... .... ...., --” 1 -1 �- I "'1
r
4
CERTIFICATE OF POSTING OF
NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
I, the undersigned officer of the CITY OF PEARLAND,
Brazoria and Harris Counties , Texas (the "City" ) , do hereby
execute this certificate for the benefit of all persons in-
terested in the posting of notice of a meeting of the City
Council of the City as required by the Open Meetings Act
(Article 6252-17, Vernon' s Texas Civil Statutes , as amended)
and the validity of all actions and proceedings taken at such
meeting and I do hereby certify as follows :
1. I am the duly chosen, qualified and acting officer
of the City for the office shown beneath my signature, and
in such capacity I am familiar with the matters contained in
this certificate .
2 . The attached and foregoing are true and correct
copies in English and Spanish, respectively, of the Notice of
Meeting which was posted by me at iaft;o o ' clock .44 .m. on the
,, day of Y) �,-y , 1978, in a place readily accessible
to the general public at all times , to-wit :
/ _/-e, ;, ,' -r i , in the City Hall of the
City.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this
„ day of "77-7 , 1978 .
'4}--7. 4-- ---/I ' ''7 .61. --e`--4 -'
City Secretar,/
CITY OF PEAR /AND, TEXAS
..
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CERTIFICATE FOR RESOLUTION CANVASSING RETURNS
AND DECLARING RESULTS OF ELECTION
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
We , the undersigned officers of the CITY OF PEARLAND,
TEXAS (the "City" ) , do hereby certify as follows :
1 . That we are the duly chosen, qualified and acting
officers of the City for the offices shown below our signatures
and that as such we are familiar with the facts herein certified .
2 . That there is attached to and follows this certificate
an excerpt of proceedings from the minutes of a meeting of the
City Council of the City (the "City Council" ) which is a true ,
full and complete excerpt of all proceedings from the minutes of
the City Council pertaining to the adoption of the resolution de-
scribed therein; and that the persons named in such excerpt as
the officers and members of the City Council or as officers of
the City are the duly chosen, qualified and acting officers and
members as indicated therein.
3 . That a true and complete copy of the resolution (the
"Resolution") , as adopted at the meeting described in such excerpt
from the minutes , is attached to and follows such excerpt .
4 . That the Resolution has been duly and lawfully adopted
by the City Council and that the Mayor of the City has approved,
and hereby approves , the Resolution; that the Mayor and the City
Secretary of the City have duly signed and attested the Resolution
and each, respectively, hereby declares that the signing of this
certificate shall also constitute the signing of the Resolution
for all purposes ; and that the Resolution, as signed, has been
duly recorded in the minutes of the City Council for such meeting.
5 . That each of the officers and members of the City
Council was duly and sufficiently notified officially and per-
sonally, in advance, of the date , hour, place and subject of
such meeting of the City Council , and that the Resolution would
be introduced and considered for passage at such meeting, and
each of such officers and members consented, in advance , to the
holding of such meeting to consider and act upon such subject .
6 . That written notice of the meeting of the City Council
described in the excerpt from the minutes was posted in the form
and manner required by law; and that such meeting was open to the
public as required by law at all times during which the Resolution
and the subject matter thereof were discussed, considered and
formally acted upon , all as required by the Open Meetings Act ,
Article 6252-17 , Vernon ' s Texas Civil Statutes , as amended .
SIGNED AND SEALED this 15th day of May , 1978 .
(l / /
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
The City Council of the City of Pearland, Texas , convened
in special meeting, open to the public , on the 15th day of
May, 1978, at the City Hall, and the roll was called of the
duly constituted officers and members of the City Council and
the City Secretary of the City , to-wit :
Tom Reid Mayor
Dennis Frauenberger Councilman
Harry Farley Councilman
Fran Coppinger Councilman
Morris S . Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present , except the following ab-
sentees : None
thus constituting a quorum. Whereupon , among other business ,
the following was transacted at said meeting : a written reso-
lution entitled :
RESOLUTION CANVASSING RETURNS
AND DECLARING RESULTS OF ELECTION
(the "Resolution" ) was duly introduced for the consideration
of the City Council and reviewed in full . It was then duly
moved and seconded that the Resolution be passed; and, after
due discussion, the motion, carrying with it the passage of
the Resolution, prevailed and carried by the following vote :
AYES : All members of the City Council shown
present above voted "Aye " .
NOES : None .
The Mayor thereupon announced that the Resolution had been duly
and lawfully adopted. The Resolution thus adopted follows :
RESOLUTION CANVASSING RETURNS
AND DECLARING RESULTS OF ELECTION
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
WHEREAS , an election was held in the CITY OF PEARLAND ,
TEXAS (the "City") , on May 13 , 1978 , at which five propositions
relating to the issuance of bonds of the City, as fully set
out in the resolution calling said election, were submitted in
accordance with law; and
WHEREAS, all resident , qualified electors of the City
were entitled to vote on the propositions ; and
WHEREAS, 749 votes were cast in said election as
follows :
PROPOSITION 1
FOR THE ISSUANCE OF $2 , 225 , 000
SANITARY SEWER SYSTEM REVENUE BONDS . . . 502 votes
AGAINST THE ISSUANCE OF $2 , 225 , 000
SANITARY SEWER SYSTEM REVENUE BONDS . . 73R votes
PROPOSITION 2
FOR THE ISSUANCE OF $525 ,000
WATERWORKS SYSTEM REVENUE BONDS 511 votes
AGAINST THE ISSUANCE OF $525 , 000
WATERWORKS SYSTEM REVENUE BONDS 228 votes
PROPOSITION 3
FOR THE ISSUANCE OF $1, 430 , 000
CITY HALL BUILDING BONDS 339 votes
AGAINST THE ISSUANCE OF $1, 430 , 000
CITY HALL BUILDING BONDS . . . . . . . . . __ votes
PROPOSITION 4
PROPOSITION 5
FOR THE ISSUANCE OF $1, 860 ,000
STREET IMPROVEMENT BONDS 441 votes
AGAINST THE ISSUANCE OF $1, 860 , 000
STREET IMPROVEMENT BONDS 295 votes
and
WHEREAS, the above totals are shown in the official elec-
tion returns heretofore submitted to the City Council and filed
with the City Secretary; and
WHEREAS, the election was called and held in all respects
under and in strict conformity with the Constitution and laws
of the State of Texas and of the United States of America;
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND THAT:
Section 1 . The matters and facts recited in the above
preamble of this resolution are found to be true and correct .
Section 2 . The election held in the City on the 13th day
of May, 1978, and which is more fully described in the preamble
of this resolution, was called and notice thereof given in ac-
cordance with law; the election was held in all respects in
conformity with law; only resident , qualified electors of the
City voted at the election; returns of the election have been
lawfully made by the proper officers ; the election has resulted
favorably to the issuance of the bonds described in the propo-
sitions Nos . 1, 2 and 5 , respectively , submitted at the elec-
tion, the levy and collection of the tax and the pledge of net
revenues in payment thereof, respectively , as provided in the
said propositions ; and more than the necessary majority of the
resulted unfavorably to the issuance of the bonds described in
propositions 3 and 4 , respectively , submitted at the said election .
Section 3 . The City Council of the City is authorized to
issue all of the bonds described in the aforesaid propositions
1 , 2 and 5 , respectively, to levy and collect taxes or to pledge
net revenues in payment thereof as provided in the said propo-
sitions , and to do any and all things necessary or convenient
in connection therewith .
Section 4 . 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 at which this resolution is
adopted and for the adoption of this resolution; and the NOTICE
OF MEETING relating to said meeting and heretofore posted by
the City Secretary , and the posting thereof, are hereby autho-
rized, approved, adopted and ratified .
PASSED AND APPROVED this 15th day of May , 1978 .
ATTEST : /s/ Tom Reid
Mayor
/s/ Dorothy L. Cook CITY OF PEARLAND , TEXAS
City Secretary
CITY OF PEARLAND, TEXAS
(SEAL)
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RESOLUCION ESCRUTANDO Y DECLARANDO
LOS RESULTADOS DE UNA ELECCION
EL ESTADO DE TEXAS X
CONDADOS DE BRAZORIA X
Y HARRIS X
CIUDAD DE PEARLAND X
CONSIDERANDO QUE se llevo a cabo una eleccion el 13 de
mayo de 1978 en la CIUDAD DE PEARLAND, TEXAS , (la "Ciudad" ) ,
en la cual se sometieron cinco proposiciones de acuerdo con
la ley con respecto a la emision de bonos de la Ciudad, mas
bien expuestas en la resolucion convocando dicha eleccion; y
CONSIDERANDO QUE todos los electores capacitados residentes
de la Ciudad estuvieron intitulados a votar sobre las
proposiciones ; y
CONSIDERANDO QUE 7y 9 votos se depositaron en dicha
eleccion como sigue:
PROPOSICION 1
A FAVOR DE LA EMISION DE BONOS DE
INGRESOS POR VALOR DE $2 , 225 , 000
PARA UN SISTEMA DE ALCANTARILLADO
SANITARIO votos
EN CONTRA DE LA EMISION DE BONOS DE
INGRESOS POR VALOR DE $2 , 225 , 000
PARA UN SISTEMA DE ALCANTARILLADO
SANITARIO 38 votos
PROPOSICION 2
A FAVOR DE LA EMISION DE BONOS DE
INGRESOS POR VALOR DE $525, 000
PARA UN SISTEMA DE ABASTECIMIENTO
DE AGUAS 5/8 votos
EN CONTRA DE LA EMISION DE BONOS DE
INGRESOS POR VALOR DE $525, 000
PARA UN SISTEMA DE ABASTECIMIENTO
DE AGUAS cc2 votos
PROPOSICION 3
MEMO MMM IIMMM i gm= imam
EN CONTRA DE LA EMISION DE BONOS POR
VALOR DE $1 , 430 , 000 PARA UN MUNICIPIO . . . J9,P votos
PROPOSICION 4
A FAVOR DE LA EMISION DE BONOS
POR VALOR DE $610 , 000 PARA UNA
BIBLIOTECA `350 votos
EN CONTRA DE LA EMISION DE BONOS
POR VALOR DE $610 , 000 PARA UNA
BIBLIOTECA j go votos
PROPOSICION 5
A FAVOR DE LA EMISION DE BONOS
POR VALOR DE $1 , 860 , 000 PARA
MEJORAR LAS CALLES 4 4l votos
EN CONTRA DE LA EMISION DE BONOS
POR VALOR DE $1 , 860 , 000 PARA
MEJORAR LAS CALLES 29s` votos
y
CONSIDERANDO QUE, los susodichos totales esten expuestos
en los resultados electorales oficiales anteriormente sometidos
al Cabildo Municipal y archivados en la oficina de la Secretaria
Municipal ; y
CONSIDERANDO QUE la eleccion se convoc6 y se llevo a
cabo en todos respectos bajo y en rigida conformidad con la
Constitution y las leyes del Estado de Texas y de los Estados
Unidos de America:
AHORA, POR LO TANTO, EL CABILDO MUNICIPAL DE LA CIUDAD
DE PEARLAND RESUELVE QUE :
Seccion 1 . Los asuntos y hechos expuestos en el preambulo
de esta resolucion son fieles y correctos .
Seccion 2 . La eleccion que se 11eva a cabo en la
Ciudad el dia 13 de mayo de 1978 , y mas bien descrita en el
preambulo de esta resolucion, se lleve a cabo y se dio
llevo a cabo en todos respectos en conformidad con la ley ;
solamente electores capacitados residentes de la Ciudad
votaron en la eleccion; los oficiales apropiados han legal-
mente escrutado los resultados de la eleccion; la eleccion
ha resultado en favor de la envision de los bonos descritos
en las proposiciones 1, 2 y 5, respectivamente, sometidas en
la eleccion y del gravamen y recaudacion del impuesto y la
prenda de ingresos netos para pagar los mismos ; y mas de
la mayoria necesaria de los votantes capacitados votando en la
eleccion han votado en favor de las proposiciones 1 , 2 y 5,
respectivamente. Dicha eleccion ha resultado en contra de la
envision de los bonos descritos en las proposiciones 3 y 4 , res-
pectivamente, sometidas en dicha eleccion.
Seccion 3. El Cabildo Municipal de la Ciudad estd
autorizado a emitir todos los bonos descritos en las suso-
dichas proposiciones 1, 2 y 5 , respectivamente, para gravar
y recaudar impuestos y prendar los ingresos netos para pagar
los mismos segun dispuesto en dichas proposiciones , y para
hacer todo to necesario o conveniente con respecto a to
mismo.
Seccion 4 . Por la presente se establece y se determina
oficialmente que la necesidad de la Ciudad de obtener dicha
financiacion ha creado una emergencia y un urgente requisito
p(blico para llevar a cabo, al tiempo fijado, una reunion
en la cual esta resoluciOn es adoptada y para la adopcion
de esta resoluciOn; y el AVISO DE REUNION con respecto a
dicha reunion, el cual ha sido anteriormente fijado por la
Secretaria Municipal y la fijacion del mismo, son aqui
PASADA Y APROBADA este dia /5 de mayo de 1978 .
/fdo/ Tom Reid
Alcalde
CIUDAD DE PEARLAND, TEXAS
ATESTACION•
/fdo/ Dorothy L. Cook
Secretaria Municipal
CIUDAD DE PEARLAND, TEXAS
(SELLO)
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NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
NOTICE is hereby given of a meeting of the City Council
of the CITY OF PEARLAND, Brazoria and Harris Counties , Texas
(the "City") , to be held on the 14th day of August, 1978 , at
7 : 30 p.m. in the :
City Hall
Pearland, Texas
for the purpose of adopting an ordinance authorizing the
issuance of $2 , 750 , 000 Waterworks and Sewer System Revenue
Bonds, Series 1978, and for the purpose of conducting, con-
sidering and acting upon such other business as shall come
before the meeting.
The need of the City for such financing creates an emer-
gency and an urgent public necessity for the holding of the
meeting and for the adoption of such ordinance at the meeting.
WITNESS MY HAND AND OFFICIAL SEAL OF THE CITY, this
-
day of August, 1978 .
/s/ Dorothy L. Cook
City Secretary
CITY OF PEARLAND, TEXAS
(SEAL)
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1
CERTIFICATE OF POSTING OF
NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
I , the undersigned officer of the CITY OF PEARLAND,
Brazoria and Harris Counties, Texas (the "City") , do hereby
execute this certificate for the benefit of all persons in-
terested in the posting of notice of a meeting of the City
Council of the City as required by the Open Meetings Act
(Article 6252-17 , Vernon' s Texas Civil Statutes , as amended)
and the validity of all actions and proceedings taken at such
meeting and I do hereby certify as follows :
1. I am the duly chosen, qualified and acting officer
of the City for the office shown beneath my signature, and
in such capacity I am familiar with the matters contained in
this certificate.
2 . The attached and foregoing is a true and correct
copy of the Notice of Meeting which was posted by me at
21:50 o ' clock A. .m. on the 11 day of August , 1978 ,
in a place readily accessible to the general public at all
times, to-wit: Bulletin Board
, in the City Hall of the City.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this
11 day of August , 1978 .
'` 1ty Secretary
CITY OF PEARL D, TEXAS
(SEAL)
CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF
$2 , 750 , 000 CITY OF PEARLAND, TEXAS , WATERWORKS AND
SEWER SYSTEM REVENUE BONDS , SERIES 1978
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
We, the undersigned officers of the CITY OF PEARLAND , TEXAS
(the "City") , do hereby certify as follows :
1. That we are the duly chosen, qualified and acting
officers of the City for the offices shown below our signatures
and that as such we are familiar with the facts herein certified.
2 . That there is attached to and follows this certificate
an excerpt of proceedings from the minutes of a meeting of the
City Council of the City (the "City Council" ) which is a true ,
full and complete excerpt of all proceedings from the minutes of
the City Council pertaining to the adoption of the ordinance de-
scribed therein; and that the persons named in such excerpt as
the officers and members of the City Council or as officers of
the City are the duly chosen, qualified and acting officers and
members as indicated therein.
3 . That a true and complete copy of the ordinance (the
"Ordinance" ) , as adopted at the meeting described in such excerpt
from the minutes, is attached to and follows such excerpt.
4 . That the Ordinance has been duly and lawfully adopted
by the City Council and that the Mayor of the City has approved,
and hereby approves , the Ordinance; that the Mayor and the City
Secretary of the City have duly signed and attested the Ordinance
and each, respectively, hereby declares that the signing of this
certificate shall also constitute the signing of the Ordinance
for all purposes ; and that the Ordinance, as signed, has been
duly recorded in the minutes of the City Council for such meeting .
5. That each of the officers and members of the City
Council was duly and sufficiently notified officially and per-
sonally, in advance, of the date , hour, place and subject of
such meeting of the City Council, and that the Ordinance would
be introduced and considered for passage at such meeting, and
each of such officers and members consented , in advance, to the
holding of such meeting to consider and act upon such subject.
6 . That written notice of the meeting of the City Council
described in the excerpt from the minutes was posted in the form
and manner required by law; and that such meeting was open to the
public as required by law at all times during which the Ordinance
and the subject matter thereof were discussed, considered and
formally acted upon, all as required by the Open Meetings Act,
Article 6252-17 , Vernon ' s Texas Civil Statutes , as amended.
SIGNED AND SEALED the 14th day of August, 197
A�.A
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
The City Council of the City of Pearland, Texas , convened
in regular meeting , open to the public , on the 14th day of
August, 1978 , at the City Hall, and the roll was called of the
duly constituted officers and members of the City Council and
the City Secretary of the City, to-wit :
Tom Reid Mayor
Dennis Frauenberger Councilman
Harry Farley Councilman
Fran Coppinger Councilman
Morris S . Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present, except the following ab-
sentees :
thus constituting a quorum. Whereupon, among other business ,
the following was transacted at said meeting : a written ordi-
nance entitled:
ORDINANCE AUTHORIZING THE ISSUANCE OF $2 , 750 , 000
CITY OF PEARLAND, TEXAS , WATERWORKS AND SEWER
SYSTEM REVENUE BONDS , SERIES 1978
(the "Ordinance") was duly introduced for the consideration
of the City Council and was read and considered by the City
Council. It was then duly moved and seconded that the Ordi-
nance be passed; and, after due discussion, the motion ,
carrying with it the passage of the Ordinance , prevailed and
carried by the following vote :
AYES : All members of the City Council shown
present above voted "Aye" .
NOES : None .
The Mayor thereupon announced that the Ordinance had been duly
ORDINANCE AUTHORIZING THE ISSUANCE OF $2 , 750, 000
CITY OF PEARLAND, TEXAS, WATERWORKS AND SEWER
SYSTEM REVENUE BONDS, SERIES 1978
THE STATE OF TEXAS §
CITY OF PEARLAND §
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PEARLAND:
ARTICLE I .
STATUTORY AUTHORITY,
RECITALS AND FINDINGS
Section 1 . 01 - Creation of City. The City of Pearland,
Texas, (the "City" ) is duly incorporated as a municipal
corporation under the laws of the State of Texas and ope-
rates as a home rule city under the laws of the State of
Texas relating to municipal corporations , particularly
Title 28 , Vernon' s Texas Civil Statutes, as amended. The
City has a home-rule charter which was last amended on
April 1, 1978 .
Section 1 . 02 - Special Findings . It is hereby found,
determined and declared that:
(a) The bonds herein authorized were approved by
a majority vote of qualified voters of the City at an
election held in the City on May 13 , 1978 ; and
(b) The City Council now deems it to be in the
best interest of the City to issue, sell, and deliver
such bonds .
ARTICLE II .
DEFINITIONS AND INTERPRETATIONS
Section 2 . 01 - Definitions . Unless otherwise expressly
provided, or unless the context otherwise requires, the
terms defined in this Section shall have the respective
meanings specified for all purposes of this Ordinance except
in the form of the bonds and of the interest coupons :
Additional Bonds
The term "Additional Bonds" shall mean the additional
parity revenue bonds that the City expressly reserves the
right to issue in Article VIII of this Ordinance, which will
be payable from and secured by a lien on and pledge of the
Net Revenues of the System on a parity with the lien thereon
Bearer
The term "bearer" means any person who from time to
time shall be the bearer of any of the Bonds .
Bond Fund
The term "Bond Fund" shall mean the fund created and
established in Article VII of this Ordinance.
Bond or Bonds
The term "Bond" or "Bonds" shall mean any bond or all
bonds, as appropriate, of the issue of $2 , 750 , 000 City of
Pearland, Texas, Waterworks and Sewer System Revenue Bonds,
Series 1978 , authorized and issued pursuant to this Ordi-
nance.
Fiscal Year
The term "Fiscal Year" shall mean the twelve-month
fiscal year of the City which is currently the twelve-month
period beginning October 1 but which may be changed from
time to time.
Gross Revenues or Revenues
The term "Gross Revenues" or "Revenues" shall mean the
gross revenues derived from the ownership and operation of
the System.
Net Revenues
The term "Net Revenues" shall mean the Revenues of the
System remaining after payment of all costs and expenses of
operating and maintaining the System as provided in this
Ordinance.
Paying Agent
The term "Paying Agent" shall mean the First City
National Bank of Houston, Houston, Texas .
Reserve Fund
The term "Reserve Fund" shall mean the fund created and
established in Article VII of this Ordinance .
Special Project Bonds
The term "Special Project Bonds" shall mean bonds which
the City expressly reserves the right to issue in Section
8 . 04 of this Ordinance.
System
The term "System" shall mean the City' s waterworks and
sanitary sewer system and all improvements , enlargements ,
extensions and additions thereto, except for such waterworks
and sanitary sewer facilities that the City may purchase or
acquire with the proceeds of the sale of Special Project
City
The term "City" shall mean the City of Pearland, Texas,
and its successors and, where appropriate, the City Council
or governing body thereof.
Section 2 . 02 - Interpretations . The titles and head-
ings of the Articles and Sections of this Ordinance have
been inserted for convenience of reference only and are not
to be considered a part hereof and shall not in any way
modify or restrict any of the terms and provisions hereof.
This Ordinance and all the terms and provisions hereof shall
be liberally construed to effectuate the purposes set forth
herein and to sustain the validity of the Bonds herein
authorized and the validity of the lien on and pledge of the
Net Revenues from which the Bonds are payable.
ARTICLE III .
AUTHORIZATION, DESCRIPTION, OPTION OF
PRIOR REDEMPTION AND EXECUTION OF BONDS
Section 3 . 01 - Name, Amount, Purpose and Authorization.
The serial, negotiable revenue bonds of the City, to be
known and designated as "CITY OF PEARLAND, TEXAS , WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1978, " shall be
issued in the aggregate principal amount of $2 , 750 , 000 for
the purpose of constructing improvements and extensions to
the waterworks and sanitary sewer system of the City, under
and in strict conformity with the Constitution and laws of
the State of Texas , including particularly Articles 1111 to
1118, Vernon' s Texas Civil Statutes , as amended.
Section 3 . 02 - Date, Numbers, Denomination and Maturi-
ties .
The Bonds shall be dated September 1 , 1978 , shall be
numbered consecutively from 1 to 550, both inclusive, shall
be in the denomination of $5, 000 each, and shall mature
serially on September 1 in each of the years , and in the
amounts , respectively, as set forth in the following schedule:
YEAR AMOUNT YEAR AMOUNT
1979 $ 50, 000 1991 $110, 000
1980 50, 000 1992 120, 000
1981 50, 000 1993 125, 000
1982 60, 000 1994 130 , 000
1983 70, 000 1995 140 , 000
1984 70 , 000 1996 150, 000
1985 75 , 000 1997 160, 000
1986 80, 000 1998 170 , 000
1987 80, 000 1999 180 , 000
1988 90, 000 2000 190, 000
1989 100, 000 2001 200, 000
1990 100, 000 2002 200 , 000
Section 3 . 03 - Option of Prior Redemption. The Bonds
may be redeemed prior to their scheduled maturities , at the
the maximum permitted by Article 717k-2 , V.T.C. S . , as amended;
such interest rates shall be those proposed in the bid for
the purchase of the Bonds which results in the lowest net
interest cost to the City and such interest shall be evi-
denced by interest coupons which shall appertain to the
Bonds and which shall be payable on the dates indicated in
the FORM OF BOND set forth in this Ordinance.
Section 3 . 05 - Payment of Principal of, Interest on,
Characteristics and Execution of Bonds . The Bonds and the
interest coupons appertaining thereto shall be payable,
shall have the characteristics, and shall be signed and
executed ( and the Bonds shall be sealed) , all as provided,
and in the manner indicated, in Article IV of this Ordinance.
Section 3 . 06 - Mutilated, Lost, Destroyed or Wrongfully
Taken Bonds . If the bearer of any Bond claims that such
Bond has been mutilated, lost, destroyed, or wrongfully
taken, the City may, under the applicable provisions of
Section 8 .405, Texas Business and Commercial Code, and
Article 715a, Vernon' s Texas Civil Statutes, as presently
existing or as may hereafter be amended, execute a new bond
of like tenor and date in exchange and substitution for the
mutilated bond or in lieu of and substitution for the bond
so lost, destroyed or wrongfully taken.
ARTICLE IV.
CHARACTERISTICS AND FORM OF BONDS, INTEREST COUPONS AND
ENDORSEMENT FOR REGISTRATION BY COMPTROLLER
Section 4. 01 - Form of Bonds . The form of the Bonds,
shall be substantially as follows , with such omissions ,
insertions and variations as may be necessary and desirable
and consistent with the terms of this Ordinance :
FORM OF BONDS :
NO. $5 , 000
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF PEARLAND, TEXAS ,
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
SERIES 1978
The CITY OF PEARLAND, TEXAS, for value received, hereby
acknowledges itself indebted to and promises to pay to
bearer, but solely from the sources hereinbelow described,
ON THE FIRST DAY OF SEPTEMBER,
the principal sum of
interest payable on March 1 , 1979 and on each September 1
and March 1 thereafter while this bond is outstanding. Both
principal of and interest on this bond shall be payable in
any coin or currency of the United States of America which,
on the respective dates of payment of such principal and
interest, is legal tender for the payment of debts due the
United States of America, without exchange or collection
charges, at the First City National Bank of Houston, Houston,
Texas, the Paying Agent. Interest hereon shall be paid only
upon presentation of the proper interest coupon initially
affixed to this bond to the Paying Agent, and the principal
hereof shall be paid only upon presentation and surrender of
this bond to the Paying Agent.
THE DATE OF THIS BOND, in conformity with the ordinance
hereinafter mentioned, IS September 1, 1978 .
THIS BOND IS ONE OF A SERIES OF BONDS of like tenor and
effect, except as to serial number, maturity and option of
prior redemption, being numbered consecutively from 1 to
550, both inclusive, in the denomination of $5, 000 each,
aggregating $2, 750, 000, issued pursuant to an ordinance law-
fully adopted by the City Council of the City of Pearland,
Texas, and duly recorded in its official minutes (the "Ordi-
nance" ) for the purpose of constructing improvements and
extensions to the waterworks and sanitary sewer system of
the City, under and in strict conformity with the Consti-
tution and laws of the State of Texas, particularly Articles
1111 to 1118, Vernon' s Texas Civil Statutes, as amended, and
by authority of an election held within the City on May 13 ,
1978 .
THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT of
the City of Pearland, Texas, or a pledge of its faith and
credit, but shall be payable, as to principal and interest,
solely from the net revenues derived from the operation of
the City' s waterworks and sanitary sewer system, as that
system is defined in the Ordinance (the "System" ) , after
deduction of the reasonable expenses of maintenance and
operation of the System. The bearer or owner Aereof shall
never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation.
ON September 1, 1993 , AND ON ANY INTEREST PAYMENT DATE
THEREAFTER, the outstanding bonds of this series may be
redeemed prior to their scheduled maturities , at the option
of the City, in whole, or in part in inverse numerical
order, for the principal amount thereof and unpaid accrued
interest thereon to the date fixed for any such redemption.
If the City elects to redeem all or any part of said bonds
on any such redemption date, notice of the exercise of the
option to redeem shall be given in writing to the Paying
Agent, and said notice shall be published in the English
language in the City of New York, New York, or in the City
of Austin, Texas, which notice shall be mailed to the Paying
Agent and published in said journal or publication at least
thirty (30 ) days prior to the date fixed for redemption.
When said bonds , in whole or in part, have been called for
redemption in the manner prescribed and due provision has
been made to pay the principal of the bonds called for
redemption and interest thereon to the date fixed for re-
— mmm
IN ADDITION TO THE RIGHT TO ISSUE BONDS OF INFERIOR
LIEN, the City has reserved the right to issue additional
bonds which may be secured by a lien on and pledge of the
net revenues of the System on a parity with the lien on and
pledge of such net revenues that secure payment of this
bond. The City has also reserved the right to issue special
project bonds , as defined in the Ordinance, which are pay-
able solely from and secured by the proceeds of a contract
or contracts with persons, corporations, municipal corpora-
tions, political subdivisions, or other entities . Reference
is made to the Ordinance for a complete description of the
right of the City to issue additional bonds and special
project bonds .
IT IS FURTHER CERTIFIED AND RECITED that all acts,
conditions and things required to be done precedent to and
in the issuance of this bond and this series of bonds have
happened and have been performed in regular and due time,
form and manner as required by law; and that provision has
been made for the payment of the principal of and interest
on this bond and the series of which it is a part by pledg-
ing the net revenues specified herein and that the issuance
of this series of bonds does not exceed any Constitutional
or statutory limitation.
IN TESTIMONY WHEREOF, the City Council of the City of
Pearland, Texas , has caused the official seal of the City to
be duly impressed, or placed in facimile, hereon, and has
caused this bond to be signed by the Mayor of said City and
countersigned by the City Secretary by their facsimile
signatures .
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Mayor, City of Pearland, Texas
COUNTERSIGNED:
xxxxxxxxxxxxxxxxxxxxxxxxx
City Secretary, City of
Pearland, Texas
(SEAL)
Section 4 . 02 - Form of Interest Coupons . The form of
the interest coupons of the Bonds shall be substantially as
follows :
No . $
FORM OF INTEREST COUPONS :
ON '
the CITY OF PEARLAND, TEXAS, PROMISES TO PAY TO BEARER,
without exchange or collection charges , at the First City
National Bank of Houston, Houston, Texas , the amount shown
ismift Am m.. .. m mum.. imim . . . . . .mm
coupon appertains, being interest due that date on the bond
bearing the number hereinafter designated, of that issue of
City of Pearland, Texas, Waterworks and Sewer System Revenue
Bonds, Series 1978, dated September 1, 1978 . The bearer
hereof shall never have the right to demand payment of this
obligation out of any funds raised or to be raised by taxa-
tion.
Bond No.
xxxxxxxxxxxxxxxxxx
Mayor, City of Pearland, Texas
xxxxxxxxxxxx
City Secretary, City of Pearland,
Texas
*(Coupons maturing after September 1, 1993 , shall
contain the following additional clause :
unless the bond to which this coupon
appertains shall have been previously
called for redemption and due provision
made to redeem same, )
Section 4. 03 - Form of Registration Certificate . The
Bonds shall be registered by the Comptroller of Public
Accounts of the State of Texas as provided by law, and the
resulting registration certificate shall be printed on the
back of each of the Bonds in substantially the following
form:
OFFICE OF THE COMPTROLLER
REGISTER NO.
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, that he finds that it has been
issued in conformity with the Constitution and laws of the
State of Texas, and it is a valid and binding special obli-
gation of the City of Pearland, Texas, and said bond has
this day been registered by me .
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas ,
Comptroller of Public Accounts of
the State of Texas
Section 4 . 04 - CUSIP Numbers . CUSIP Numbers may be
printed on the backs of the Bonds , but errors in or omis-
ARTICLE V
APPLICATION OF BOND PROCEEDS
Section 5 . 01 - Application. Proceeds from the sale of
the Bonds shall be applied in the following order:
(a) To pay all expenses incident to the issuance of
the Bonds ; and
(b) To pay for constructing improvements and exten-
sions to the waterworks and sanitary sewer system of the
City, as authorized by this Ordinance, and any and all
reasonable costs and expenses incurred by the City in con-
nection therewith.
ARTICLE VI
SECURITY OF BONDS
Section 6 . 01 - Pledge of Net Revenues . All of the Net
Revenues derived from the operation of the System, with the
exception of those Net Revenues in excess of the amounts
required to establish and maintain the funds as hereinafter
provided, are hereby pledged to the payment of the principal
of and interest on the Bonds and any Additional Bonds . The
Net Revenues shall immediately be subject to the lien of
this pledge without any physical delivery thereof or further
act, and the lien of this pledge shall be valid and binding
against all parties of any kind having a claim of any kind
in tort, contract or otherwise, against the City irrespec-
tive of whether such parties have notice thereof.
Section 6 . 02 - Security of Bonds . The Bonds and any
Additional Bonds shall be payable solely from and shall be
equally ratably secured by a first lien on and pledge of the
Net Revenues, and the Bonds and any Additional Bonds, when
and if issued, will be in all respects on a parity with and
of equal dignity with one another. The bearers or owners of
the Bonds shall never have the right to demand payment out
of any funds raised or to be raised by taxation.
Section 6 . 03 - Maintenance of Income. In order that
the Net Revenues of the City will be sufficient to pay the
Bonds and the interest thereon, the City shall fix and
maintain rates and collect charges for the facilities and
services afforded by the System that will provide Revenues
sufficient at all times :
( a) to pay all operation and maintenance expenses of
the System as provided in Section 7 . 04( a) of this Ordinance;
(b ) to establish and maintain the Bond Fund and the
Reserve Fund; and
(c ) to pay all indebtedness from time to time out-
standing against the System other than the Bonds as and when
the same becomes due .
Section 6 . 04 - Maintenance of Net Revenues . The City
1 .20 times all principal and interest payments during such
Fiscal Year on all Bonds and Additional Bonds then out-
standing.
ARTICLE VII
REVENUES AND APPLICATION THEREOF
Section 7 . 01 - Creation of Funds . There shall be
created the following funds :
(a) the System Fund;
(b ) the Bond Fund; and
(c ) the Reserve Fund.
Each fund shall be kept separate and apart from all
other funds of the City. The System Fund shall be main-
tained at the official depository of the City. The Bond
Fund and the Reserve Fund shall constitute trust funds which
shall be held in trust by the depository solely for the
benefit of the bearers of the Bonds and Additional Bonds .
The System Fund shall be used solely as provided in this
Ordinance until all Bonds and Additional Bonds have been
retired as to principal and interest.
Section 7 . 02 - Security of Funds . All bank deposits to
the funds and accounts created by this Ordinance, to the
extent not insured by the Federal Deposit Insurance Corpora-
tion or the Federal Savings and Loan Insurance Corporation,
or the successor of either, shall be secured by a valid
pledge of securities eligible under the laws of the State of
Texas to secure the funds of cities or towns, having an
aggregate market value, exclusive of accrued interest, at
all times not less than the amount of deposits credited to
such funds and accounts, respectively.
Section 7 . 04 - Use of Revenues . The City will deposit,
as collected, all Revenues derived from the ownership and
operation of the System into a special account (herein
called the "System Fund" ) , which shall be kept separate and
apart from all other funds of the City. The System Fund
shall be administered as follows :
( a) Maintenance and Operation: From the moneys in the
System Fund, the City shall first pay the expenses of opera-
tion and maintenance, including all salaries , labor, materi-
als , interest and such repairs and extensions, as in the
judgment of the governing body of the City, are necessary to
keep the System in operation and render adequate service to
the City, its inhabitants and other users of the System, or
such as might be necessary to meet some physical accident or
condition which would otherwise impair the ability of the
System to generate Net Revenues sufficient to pay principal
and interest on the Bonds , Additional Bonds and other in-
debtedness against the System.
(b ) Bond Fund: After the payment of all expenses
provided for in the next preceding paragraph, the City shall
amount required to meet the payments of principal and inter-
est on the Bonds that will be payable on or before the next
January 1, together with such other amounts as may be re-
quired in any other ordinance authorizing the issuance of
Additional Bonds . The amount required to be paid into the
Bond Fund each year shall be made in substantially equal
monthly payments from moneys in the System Fund, and such
monthly payments shall be made on or before the 15th day of
each month beginning with the date the Bonds are delivered
to the purchasers thereof. If in any month the City shall,
for any reason, fail to pay into said Bond Fund the full
amounts above stipulated, amounts equivalent to such defi-
ciencies shall be set apart and paid into said Bond Fund
from the first available and unallocated Net Revenues as of
the following month or months and shall be in addition to
the amounts hereinafter provided to be otherwise paid into
said Bond Fund each month.
Not later than ten days prior to each principal and/or
interest payment date on the Bonds and any Additional Bonds,
the Town Council shall cause to be transferred from the Bond
Fund to the Paying Agent an amount sufficient to pay the
principal and/or interest to become due and payable thereon
at such date.
(c) Reserve Fund: There is hereby established the
"Reserve Fund. " Beginning with the month immediately
following the month in which any of the Bonds are delivered,
and after payment of all amounts required by Section 7. 03 (b) ,
there shall be paid during each month from the System Fund
into the Reserve Fund, the sum of $3 , 676, until such time as
there is in the Reserve Fund, as a result of such deposits
and interest or investment earnings, the sum of $220, 560 .
If in any month the City shall, for any reason, fail to pay
into the Reserve Fund the full amount herein provided,
amounts equivalent to such deficiencies shall be set apart
and put into the Reserve Fund from the first available and
unallocated Net Revenues of the following month or months
after payment of all amounts required by Section 7 . 03 (b) and
shall be in addition to the monthly deposits herein required
to be otherwise paid into the Reserve Fund. Moneys in the
Reserve Fund may be used only to prevent a default in the
payment of principal and interest on the Bonds and Addi-
tional Bonds in the event there are not otherwise sufficient
moneys in the Bond Fund to make such payments . So long as
the Reserve Fund contains a balance of not less than
$220, 560, no further payments need be made into the Reserve
Fund. If the balance in the Reserve Fund exceeds $220, 560
(due to interest on investments or for any other reason) ,
such excess may be transferred out of the Reserve Fund into
the Bond Fund. If, however, any of the moneys in the Re-
serve Fund are used to prevent a default in the payment of
principal of and interest on the Bonds or Additional Bonds
as herein provided, monthly payments into the Reserve Fund
shall thereafter be resumed and continued until not less
than $220, 560 is again on deposit in the Reserve Fund.
Moneys in the Reserve Fund may, at the option of the City,
be invested as authorized by Section 7 . 04, and such securi-
ties shall be deposited in escrow at the depository bank of
the City under an escrow agreement.
.. .
and the interest or other investment earnings thereon shall
belong to the fund or account from which the moneys for such
investments were taken, except that at any time that the
Reserve Fund has a balance of $220, 560 or more, all interest
and other investment earnings on such balance may be trans-
ferred to the Bond Fund. In the event any fund does not
have sufficient uninvested funds on hand to meet the obli-
gations payable out of such fund, the City shall have the
right to have sold in the open market a sufficient amount of
the investments to meet its obligations. The moneys resulting
from such sale or sales shall belong to the fund from which
the moneys for such investment were initially taken. The
City shall not be responsible for any loss arising out of
the sale of any investments .
Section 7 . 05 - Surplus Net Revenues . After provision
has been made for the reasonable cost of operating and
maintaining the System, and after paying all amounts re-
quired to be paid into the Bond Fund and Reserve Fund, as
above provided in Section 7 .03(b) and (c) , and after paying
all other amounts that may be required by any ordinances
pertaining to Additional Bonds, any funds remaining in the
System Fund may be used by the City for any other purpose
permitted by law.
ARTICLE VIII
ADDITIONAL BONDS, REFUNDING BONDS AND DISCHARGE BY DEPOSIT
Section 8 . 01 - Additional Bonds . The City reserves the
right to issue, from time to time, additional parity bonds
in one or more installments, for completion, repair, improve-
ment, extension, enlargement, replacement, acquisitions,
construction or repair of the City' s waterworks system,
sanitary sewer system, or both, or for any other lawful
purpose (the "Additional Bonds" ) , and such Additional Bonds,
when issued, may be secured by and payable from a first lien
on and pledge of the Net Revenues of the System in the same
manner and to the same extent as are the Bonds, and such
Additional Bonds may be, in all respects, of equal dignity
with the Bonds; provided, however, that no Additional Bonds
shall be issued unless each of the following conditions is
met, except in the case of Additional Bonds described in
Sections 8 . 02, 8 . 05 and 8 . 06, which may be issued as pro-
vided therein:
(a) The Additional Bonds are made payable on Sep-
tember 1 of each year;
(b) Provisions is made in the ordinance or ordinances
authorizing said Additional Bonds for monthly payments or
deposits into the Reserve Fund until a balance is reached
(in addition to deposits into the Reserve Account required
by other ordinances or proceedings relating thereto and in
addition to any balance or balances required by said other
ordinances or proceedings ) of not less than the maximum
annual principal and interest requirements on the Bonds,
Additional Bonds, if any, and such Additional Bonds then
proposed to be issued, and such balance is to be reached
within approximately five (5 ) years from the date of such
or by any ordinance authorizing any previously issued Addi-
tional Bonds contains the amount of moneys then required to
be on deposit therein;
(d) A certificate is executed by the Mayor and City
Secretary to the effect that the City is not in default as
to any covenant, condition or obligation prescribed by any
ordinance authorizing the Bonds or any Additional Bonds; and
(e) A certificate is executed by a certified public
accountant to the effect that Net Revenues for the last
completed Fiscal Year or for any consecutive twelve (12 )
month period within the last consecutive fifteen (15 ) month
period next preceding the adoption of the ordinance autho-
rizing the Additional Bonds were not less than 1 . 50 times
the average annual principal and interest requirements on
the Bonds, any Additional Bonds then outstanding, and the
Additional Bonds then proposed to be issued.
Section 8 . 02 - Inferior Lien Bonds . The City also
reserves the right to issue inferior lien bonds and pledge
the Net Revenues of the System to the payment thereof, such
pledge to be junior and subordinate in all respects to the
lien of the Bonds and any Additional Bonds .
Section 8 . 03 - Special Project Bonds . The City further
reserves the right to issue bonds in one or more install-
ments for the purchase, construction, improvement, exten-
sion, replacement, enlargement or repair of water, sewer
and/or drainage facilities necessary under a contract or
contracts with persons, corporations , municipal corpora-
tions , political subdivisions, or other entities, such bonds
to be payable from and secured solely by the proceeds of
such contract or contracts . The City further reserves the
right to refund such bonds .
Section 8 . 04 - Refunding Bonds . The City further
reserves the right to issue refunding bonds, either as
Additional Bonds or junior lien bonds , or to refund any of
the Bonds or Additional Bonds in any manner authorized by
law. Any refunding bonds so issued may enjoy complete
equality of lien with the portion of the Bonds or Additional
Bonds which are not refunded. Before issuing any refunding
bonds as Additional Bonds , the City must satisfy the re-
quirements of Sections 8 . 01(a) and (b) .
Section 8 . 05 - Discharge By Deposit. The City may
discharge its remaining obligations to the bearers of the
Bonds by depositing with the Paying Agent, money which
(together with interest earned on or profits to be realized
from investments in Governmental Obligations as described
below) will be sufficient to pay principal and interest to
maturity or to the date fixed for redemption of the Bonds .
Upon such deposit, the Bonds shall no longer be regarded as
outstanding and unpaid; provided, however, that provision
shall have been made by the City for the publication at
least one ( 1 ) time in a financial journal or publication
published in the City of New York, New York, or in the City
of Austin, Texas, of a notice to the bearers of the Bonds
that such money is so available for such payment. Money
held for payment in accordance with the provisions of this
for the money proposed be invested therein: direct general
obligations of the United States of America, or any obliga-
tions the payment of the principal of and interest on which
are unconditionally guaranteed by the full faith and credit
of the United States of America. Such investments shall
mature in sufficient time, in the judgment of the City, to
make available money needed for the purposes intended. Net
interest earned on such investments , or portions thereof,
may be paid to the City if sufficient funds will otherwise
be held by the Paying Agent to pay principal and interest on
the Bonds; otherwise, such interest or any part thereof
shall be used for payment of principal and interest on the
Bonds .
ARTICLE IX.
Special Covenants of the City
Section 9 . 01 - Covenants . The City, by and through
this Ordinance, expressly covenants as hereinafter provided
in this Article.
Section 9 . 02 - Punctual Payment of the Bonds . The City
will punctually pay or cause to be paid the interest on and
principal of the Bonds according to the terms thereof and
will faithfully do and perform, and at all times fully
observe, any and all covenants , undertakings , stipulations
and provisions contained herein or in any Bond executed and
delivered hereunder.
Section 9 . 03 - Maintenance of System. So long as any
of the Bonds remain outstanding, the City covenants that it
will at all times maintain the System, or cause the same to
be maintained, in good condition and working order and will
operate the same, or cause the same to be operated, in an
efficient and economical manner, at a reasonable cost and in
accordance with sound business principles . In operating and
maintaining the System, the City will comply with all con-
tractual provisions and agreements entered into by it and
with all valid rules, regulations , directions or orders of
any governmental, administrative or judicial body promulgat-
ing the same .
Section 9 . 04 - Power to Pledge Revenues . The City has
the power to pledge the Net Revenues to the payment of the
Bonds and has lawfully exercised such power under the Con-
stitution and laws of the State of Texas and the Constitu-
tion of the United States of America.
Section 9 . 05 - System and Revenues not Encumbered.
Neither the System nor the Revenues thereof will be in any
way encumbered except as provided in this Ordinance .
Section 9 . 06 - Sale or Encumbrance of System. So long
as any of the Bonds remain outstanding, either as to prin-
cipal or interest, the City will not sell, dispose of or
encumber any of the improvements , facilities or properties
constituting the System; provided, however, that this pro-
vision shall not prevent the City from disposing of any
portion of the System which has been declared surplus or is
corporation, municipal corporation or political subdivision
to operate the System or to lease and operate all or part of
the System shall not be considered as an encumbrance of the
System.
Section 9 . 07 - Insurance. So long as any of the Bonds
remain outstanding, the City covenants that it will at all
times keep insured such parts of the System as are usually
insured by municipal corporations operating like properties
in similar locations under the same circumstances with a
responsible insurance company or companies against risks ,
accidents or casualties against which and to the extent
insurance is usually carried by such municipal corporations;
provided, however, that at any time while any contractor
engaged in construction work shall be fully responsible
therefor, the City shall not be required to carry such
insurance. All such policies shall be made available for
inspection by the bearers of the Bonds or their representa-
tives at all reasonable times .
Section 9 . 08 - Insurance Proceeds . In the event of any
loss or damage, the City covenants that it will reconstruct
or repair the destroyed or damaged portion of the System and
will apply the proceeds of the insurance policies covering
such loss or damage solely for that purpose. The City
covenants that it will begin such work or reconstruction or
repair promptly after such loss or damage shall occur and
will continue and properly complete the same as expeditious-
ly as possible and will pay, or cause to be paid, all costs
and expenses in connection therewith out of the insurance
proceeds so that the same shall be completed and the proper-
ty be free and clear of all mechanic ' s and other liens or
claims .
Section 9 . 09 - Excess Insurance Proceeds . Any insur-
ance proceeds remaining after the completion of and payment
for any such reconstruction or repairs shall be deposited to
the credit of the Bond Fund.
Section 9 . 10 - No Free Services . No free service or
services of the System shall be allowed, and should the City
or any of its agencies or instrumentalities make use of the
services and facilities of the System, payment of a reason-
able value thereof shall be made by the City out of funds
derived from sources other than the revenues and income of
the System.
Section 9 . 11 - No Competing System. To the extent
that the City legally may do so, the City further covenants
that so long as any of the Bonds or interest thereon are
outstanding, no franchise shall be granted for the construc-
tion and operation of any competing system, and the City
will prohibit the construction and operation of any system
other than the System owned by the City.
ARTICLE X.
Default Provision
Section 10 . 01 - Remedies in Event of Default. In
event it fails to make payments required to be made into the
Bond Fund or defaults in the observance or performance of
any other of the covenants, conditions or obligations set
forth in this Ordinance, the following remedies shall be
available:
(a) The bearers of any of the Bonds shall be entitled
to a writ of mandamus issued by a court of competent juris-
diction compelling and requiring the City and the officials
thereof to observe and perform any covenant, obligation or
condition prescribed in this Ordinance; and
(b) No delay or omission to exercise any right or
power accruing upon any delay shall impair any such right or
power or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and
power may be exercised from time to time and as often as may
be deemed expedient.
Section 10 . 02 - Ordinance is Contract. In considera-
tion of the purchase and acceptance of the Bonds authorized
to be issued hereunder by those who shall hold the same from
time to time, the provisions of the Ordinance shall be
deemed to be and shall constitute contracts between the City
and the bearers from time to time of the Bonds ; and the
covenants and agreements herein set forth to be performed on
behalf of the City shall be for the equal benefit, protec-
tion and security of the bearers of any and all of the
Bonds, all of which, regardless of the time or times of
their issue or maturity, shall be of equal rank without
preference, priority or distinction of any of the Bonds over
any other thereof, except as expressly provided herein.
ARTICLE XI .
Accounting and Audits
Section 11 . 01 - Accounts , Records and Accounting Reports .
The City covenants and agrees that it will maintain in
conformity with generally accepted accounting principals for
municipalities books of records and accounts showing as a
separate system the accounts of the System, in which full ,
true and proper entries will be made of all dealings , trans-
actions , business and matters which in any way affect or
pertain to the operation of the System and the allocation
and application of the revenues thereof, and that such books
of the System will be available for inspection by the bearers
of any of the Bonds at reasonable hours and under reasonable
circumstances . The City will operate the System on the
basis of a Fiscal Year which currently begins October 1 and
which may be amended from time to time by the City.
Section 11 . 02 - Audit. After the end of each Fiscal
Year, the City will have an audit of the System by a certi-
fied public accountant for the last Fiscal Year, which shall
be submitted to the City within one hundred and twenty (120 )
days after the end of the Fiscal Year.
Section 11 . 03 - Copies of Audit and Cost. The City
shall furnish copies of such audit (without cost) to the
ARTICLE XII .
Sale, Approval, Registration
and Delivery of Bonds
Section 12 . 01 - Sale of Bonds . The Bonds are hereby
sold and shall be delivered to that bidder, or bidders,
submitting the bid which results in the lowest net interest
cost to the City subject to a resolution hereafter to be
adopted by the City Council, for the par value thereof and
accrued interest thereon to date of delivery, plus a premium
of $ , subject to the unqualified approving
opinions, as to the legality of the Bonds , of the Attorney
General of the State of Texas and of Vinson & Elkins, Houston,
Texas, market attorneys .
Section 12 . 02 - Approval, Registration and Delivery of
Bonds . The Mayor and City Secretary are hereby authorized
and directed to take and have charge of the records and
proceedings of the Bonds , and the Bonds, pending their
approval by the Attorney General of the State of Texas, and
their registration by the Comptroller of Public Accounts of
the State of Texas . Upon registration of said Bonds , the
Comptroller of Public Accounts (or a deputy designated in
writing to act for the Comptroller) shall manually sign the
Comptroller' s certificate of registration described herein
to be printed on the back of each Bond, and the seal of the
Comptroller shall be impressed, or placed in facsimile, on
each of the Bonds .
ARTICLE XIII .
Arbitrage
The City Council certifies that based upon all facts,
estimates and circumstances now known or reasonably expected
to be in existence on the date the Bonds are delivered and
paid for, the City Council reasonably expects that the
proceeds of the Bonds will not be used in a manner that
would cause the Bonds or any portion of the Bonds to be an
"arbitrage bond" under Section 103 (c) of the Internal Revenue
Code of 1954, as amended, and the regulations prescribed
thereunder. Furthermore, all officers, employees and agents
of the City are authorized and directed to provide certifi-
cations of facts, estimates and circumstances which are
material to the reasonable expectations of the City Council
as of the date the Bonds are delivered and paid for, and any
such certifications may be relied upon by counsel, by the
bearers of the Bonds , or by any person interested in the
exemption of interest on the Bonds from federal income
taxation. Moreover, the City Council covenants that it
shall make such use of the proceeds of the Bonds, regulate
investments of proceeds of the Bonds , and take such other
and further action as may be required so that the Bonds
shall not be "arbitrage bonds" under Section 103 (c) of the
Internal Revenue Code of 1954, as amended, and regulations
ARTICLE XIV.
Miscellaneous Provisions
Section 14 . 01 - City' s Successors and Assigns . When-
ever in this Ordinance the City is named and referred to, it
shall be deemed to include its successors and assigns, and
all covenants and agreements in the ordinance contained by
and on behalf of the City shall bind and inure to the bene-
fit of its successors and assigns whether or not so expressed.
Section 14. 02 - No Recourse Against City Officers . No
recourse shall be had for the payment of the principal or
the interest on the Bonds or for any claim based thereon or
in the ordinance against any officer of the City or any
person executing the Bonds .
Section 14 . 03 - Paying Agent May Own Bonds . The Paying
Agent, in its individual or any other capacity, may become
the owner or pledgee of the Bonds with the same rights it
would have if it were not the Paying Agent.
Section 14 . 04 - Legal Holidays . In any case where the
date of maturity of interest and principal of the Bonds or
the date fixed for redemption of any Bonds shall be in the
State of Texas a legal holiday or a day on which banking
institutions are authorized by law to close, then payment of
interest or principal need not be made on such date but may
be made on the next succeeding day not a legal holiday or a
day on which banking institutions are authorized by law to
close in the State of Texas with the same force and effect
as if made on the date of maturity or the date fixed for
redemption and no interest shall accrue for the period from
and after such date.
Section 14. 05 - Benefits of Ordinance Provision.
Nothing in this Ordinance or in the Bonds, expressed or
implied, shall give or be construed to give any person, firm
or corporation, other than the City, the Paying Agent, and
the bearers of the Bonds, any legal or equitable right,
remedy or claim under or in respect of this Ordinance, or
under any covenant, condition or provision herein contained,
all the covenants, conditions and provisions contained in
this Ordinance or in the Bonds being for the sole benefit of
the City, the Paying Agent and the bearers of the Bonds .
Section 14 . 06 - Unavailability of Authorized Publica-
tion. If, because of the temporary or permanent suspension
of any newspaper, journal or other publication, or for any
reason, publication of notice cannot be made meeting any
requirements herein established, any notice required to be
published by the provisions of this Ordinance shall be given
in such other manner and at such time or times as in the
judgment of the City shall most effectively approximate such
required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to
be in compliance with the requirements for publication
thereof.
Section 14 . 07 - Severability Clause. If any word,
phrase, clause, sentence, paragraph, section, or other part
mmm
word, phrase, clause, sentence, paragraph, section or other
part of this Ordinance to any other persons or circumstances
shall not be affected thereby.
Section 14. 08 - Further Procedures . The Mayor and City
Secretary of the City and other appropriate officials of the
City are hereby authorized and directed to do any and all
things necessary and/or convenient to carry out the terms of
this Ordinance.
Section 14 .09 - Repeal of Resolutions and Ordinances .
All resolutions or ordinances heretofore adopted by the City
Council in conflict with the provisions of this Ordinance
are hereby in all things repealed and shall be of no further
force or effect.
Section 14. 10 - Effective Date of Ordinance . This
Ordinance shall take effect and be in full force upon and
after its having been read, considered and adopted by the
City Council at two regular sessions of the City Council .
Section 14 . 11 - Emergency Meeting. It is hereby offi-
cially found and determined that an emergency or urgent
public necessity exists which requires the holding of the
meeting at which this Ordinance is passed, such emergency or
urgent public necessity being that the proceeds from the
sale of the Bonds are required as soon as possible for
necessary and urgently needed public improvements ; and that
said meeting was open to the public, and public notice of
the time, place, and purpose of said meeting was given, all
as required by Article 6252-17 , Vernon' s Texas Civil Statutes ,
as amended.
PASSED AND APPROVED this 14th day of August, 1978 .
/s/ Tom Reid
Mayor, City of Pearland, Texas
ATTEST:
/s/ Dorothy L. Cook
City Secretary, City of
Pearland, Texas
(SEAL)
•
. •
NOTICE OF MEETING
THE STATE OF TEXAS § •
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
NOTICE is hereby given of a meeting of the City Council
of the CITY OF PEARLAND , Brazoria and Harris Counties , Texas
(the "City" ) , to be held on the 28th day of August, 1978 , at
7 : 30 p.m. in the :
City Hall
Pearland, Texas
for the purpose of adopting ordinances authorizing the issuance
of $1 , 860 , 000 Permanent Improvement Bonds , Series 1978 , and
$2 , 750 , 000 Waterworks and Sewer System Revenue Bonds , Series
1978 , and resolutions fixing coupon interest rates and naming
the purchaser, or purchasers , thereof for $1 , 860 , 000 Permanent
Improvement Bonds , Series 1978 , and $2 , 750 , 000 Waterworks and
Sewer System Revenue Bonds , Series 1978 , and for the purpose
of conducting , considering and acting upon such other business
as shall come before the meeting .
The need of the City for such financing creates an emer-
gency and an urgent public necessity for the holding of the
meeting and for the adoption of such ordinances and resolutions
at the meeting .
WITNESS MY HAND AND OFFICIAL SEAL OF THE CITY , this 24th
day of August, 1978 .
/s/ Dorothy L. Cook
City Secretary
CITY OF PEARLAND , TEXAS
(SEAL)
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CERTIFICATE OF POSTING OF
NOTICE OF MEETING
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
I , the undersigned officer of the CITY OF PEARLAND ,
Brazoria and Harris Counties, Texas (the "City") , do hereby
execute this certificate for the benefit of all persons in-
terested in the posting of notice of a meeting of the City
Council of the City as required by the Open Meetings Act
(Article 6252-17 , Vernon' s Texas Civil Statutes, as amended)
and the validity of all actions and proceedings taken at such
meeting and I do hereby certify as follows :
1. I am the duly chosen, qualified and acting officer
of the City for the office shown beneath my signature, and
in such capacity I am familiar with the matters contained in
this certificate.
2 . The attached and foregoing is a true and correct
copy of the Notice of Meeting which was posted by me at
1:30 o ' clock P .m. on the 24th day of August , 1978 ,
in a place readily accessible to the general public at all
times, to-wit: Bulletin Board
, in the City Hall of the City.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this
24th day of August , 1978 .
ity Secretar
CITY OF PEAR D, TEXAS
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t .
CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF
$2, 750 , 000 CITY OF PEARLAND, TEXAS , WATERWORKS AND
SEWER SYSTEM REVENUE BONDS , SERIES 1978
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
We, the undersigned officers of the CITY OF PEARLAND, TEXAS
(the "City") , do hereby certify as follows :
1 . That we are the duly chosen, qualified and acting
officers of the City for the offices shown below our signatures
and that as such we are familiar with the facts herein certified.
2 . That there is attached to and follows this certificate
an excerpt of proceedings from the minutes of a meeting of the
City Council of the City (the "City Council") which is a true ,
full and complete excerpt of all proceedings from the minutes of
the City Council pertaining to the adoption of the ordinance de-
scribed therein; and that the persons named in such excerpt as
the officers and members of the City Council or as officers of
the City are the duly chosen, qualified and acting officers and
members as indicated therein.
3 . That a true and complete copy of the ordinance (the
"Ordinance") , as adopted at the meeting described in such excerpt
from the minutes , is attached to and follows such excerpt.
4 . That the Ordinance has been duly and lawfully adopted
by the City Council and that the Mayor of the City has approved,
and hereby approves , the Ordinance; that the Mayor and the City
Secretary of the City have duly signed and attested the Ordinance
and each, respectively, hereby declares that the signing of this
certificate shall also constitute the signing of the Ordinance
for all purposes; and that the Ordinance, as signed, has been
duly recorded in the minutes of the City Council for such meeting.
5 . That each of the officers and members of the City
Council was duly and sufficiently notified officially and per-
sonally, in advance, of the date, hour, place and subject of
such meeting of the City Council, and that the Ordinance would
be introduced and considered for passage at such meeting , and
each of such officers and members consented, in advance, to the
holding of such meeting to consider and act upon such subject.
6 . That written notice of the meeting of the City Council
described in the excerpt from the minutes was posted in the form
and manner required by law; and that such meeting was open to the
public as required by law at all times during which the Ordinance
and the subject matter thereof were discussed, considered and
formally acted upon, all as required by the Open Meetings Act,
Article 6252-17 , Vernon' s Texas Civil Statutes , as amended.
SIGNED AND SEALED the 28th day of August, 1978 .
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
The City Council of the City of Pearland, Texas , convened
in regular meeting, open to the public, on the 28th day of
August, 1978, at the City Hall, and the roll was called of the
duly constituted officers and members of the City Council and
the City Secretary of the City, to-wit:
Tom Reid Mayor
Dennis Frauenberger Councilman
Harry Farley Councilman
Fran Coppinger Councilman
Morris S . Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present, except the following ab-
sentees : NONE-
thus constituting a quorum. Whereupon, among other business ,
the following was transacted at said meeting : a written ordi-
nance entitled:
ORDINANCE AUTHORIZING THE ISSUANCE OF $2 ,750 , 000
CITY OF PEARLAND, TEXAS , WATERWORKS AND SEWER
SYSTEM REVENUE BONDS, SERIES 1978
(the "Ordinance") was duly introduced for the consideration
of the City Council and was read and considered by the City
Council, the Ordinance being the same ordinance which was
heretofore read, considered and adopted by the City Council
at its regular meeting on August 14 , 1978 . It was then duly
moved and seconded that the Ordinance be passed; and, after
due discussion, the motion, carrying with it the passage of
the Ordinance, prevailed and carried by the following vote :
AYES : All members of the City Council shown
present above voted "Aye" .
NOES : None.
The Mayor thereupon announced that the Ordinance ,had, been duly
ORDINANCE AUTHORIZING THE ISSUANCE OF $2 , 750, 000
CITY OF PEARLAND, TEXAS, WATERWORKS AND SEWER
SYSTEM REVENUE BONDS, SERIES 1978
THE STATE OF TEXAS §
CITY OF PEARLAND §
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PEARLAND:
ARTICLE I .
STATUTORY AUTHORITY,
RECITALS AND FINDINGS
Section 1 . 01 - Creation of City. The City of Pearland,
Texas, (the "City" ) is duly incorporated as a municipal
corporation under the laws of the State of Texas and ope-
rates as a home rule city under the laws of the State of
Texas relating to municipal corporations, particularly
Title 28 , Vernon' s Texas Civil Statutes, as amended. The
City has a home-rule charter which was last amended on
April 1, 1978 .
Section 1 . 02 - Special Findings . It is hereby found,
determined and declared that:
(a) The bonds herein authorized were approved by
a majority vote of qualified voters of the City at an
election held in the City on May 13 , 1978 ; and
(b) The City Council now deems it to be in the
best interest of the City to issue, sell, and deliver
such bonds .
ARTICLE II .
DEFINITIONS AND INTERPRETATIONS
Section 2 . 01 - Definitions . Unless otherwise expressly
provided, or unless the context otherwise requires, the
terms defined in this Section shall have the respective
meanings specified for all purposes of this Ordinance except
in the form of the bonds and of the interest coupons :
Additional Bonds
The term "Additional Bonds" shall mean the additional
parity revenue bonds that the City expressly reserves the
right to issue in Article VIII of this Ordinance, which will
be payable from and secured by a lien on and pledge of the
Net Revenues of the System on a parity with the lien thereon
Bearer
The term "bearer" means any person who from time to
time shall be the bearer of any of the Bonds .
Bond Fund
The term "Bond Fund" shall mean the fund created and
established in Article VII of this Ordinance.
Bond or Bonds
The term "Bond" or "Bonds" shall mean any bond or all
bonds, as appropriate, of the issue of $2 , 750, 000 City of
Pearland, Texas, Waterworks and Sewer System Revenue Bonds,
Series 1978 , authorized and issued pursuant to this Ordi-
nance.
Fiscal Year
The term "Fiscal Year" shall mean the twelve-month
fiscal year of the City which is currently the twelve-month
period beginning October 1 but which may be changed from
time to time .
Gross Revenues or Revenues
The term "Gross Revenues" or "Revenues" shall mean the
gross revenues derived from the ownership and operation of
the System.
Net Revenues
The term "Net Revenues" shall mean the Revenues of the
System remaining after payment of all costs and expenses of
operating and maintaining the System as provided in this
Ordinance.
Paying Agent
The term "Paying Agent" shall mean the First City
National Bank of Houston, Houston, Texas .
Reserve Fund
The term "Reserve Fund" shall mean the fund created and
established in Article VII of this Ordinance .
Special Project Bonds
The term "Special Project Bonds" shall mean bonds which
the City expressly reserves the right to issue in Section
8 . 04 of this Ordinance.
System
The term "System" shall mean the City' s waterworks and
sanitary sewer system and all improvements , enlargements,
extensions and additions thereto, except for such waterworks
and sanitary sewer facilities that the City may purchase or
acquire with the proceeds of the sale of Special Project
City
The term "City" shall mean the City of Pearland, Texas,
and its successors and, where appropriate, the City Council
or governing body thereof.
Section 2 . 02 - Interpretations . The titles and head-
ings of the Articles and Sections of this Ordinance have
been inserted for convenience of reference only and are not
to be considered a part hereof and shall not in any way
modify or restrict any of the terms and provisions hereof.
This Ordinance and all the terms and provisions hereof shall
be liberally construed to effectuate the purposes set forth
herein and to sustain the validity of the Bonds herein
authorized and the validity of the lien on and pledge of the
Net Revenues from which the Bonds are payable.
ARTICLE III .
AUTHORIZATION, DESCRIPTION, OPTION OF
PRIOR REDEMPTION AND EXECUTION OF BONDS
Section 3 . 01 - Name, Amount, Purpose and Authorization.
The serial, negotiable revenue bonds of the City, to be
known and designated as "CITY OF PEARLAND, TEXAS, WATERWORKS
AND SEWER SYSTEM REVENUE BONDS, SERIES 1978 , " shall be
issued in the aggregate principal amount of $2 , 750, 000 for
the purpose of constructing improvements and extensions to
the waterworks and sanitary sewer system of the City, under
and in strict conformity with the Constitution and laws of
the State of Texas , including particularly Articles 1111 to
1118 , Vernon' s Texas Civil Statutes, as amended.
Section 3 . 02 - Date, Numbers , Denomination and Maturi-
ties .
The Bonds shall be dated September 1, 1978, shall be
numbered consecutively from 1 to 550, both inclusive, shall
be in the denomination of $5, 000 each, and shall mature
serially on September 1 in each of the years, and in the
amounts , respectively, as set forth in the following schedule:
YEAR AMOUNT YEAR AMOUNT
1979 $ 50, 000 1991 $110, 000
1980 50, 000 1992 120, 000
1981 50 , 000 1993 125, 000
1982 60, 000 1994 130, 000
1983 70, 000 1995 140 , 000
1984 70 , 000 1996 150, 000
1985 75, 000 1997 160, 000
1986 80, 000 1998 170 , 000
1987 80, 000 1999 180 , 000
1988 90 , 000 2000 190 , 000
1989 100, 000 2001 200, 000
1990 100, 000 2002 200 , 000
Section 3 . 03 - Option of Prior Redemption. The Bonds
may be redeemed prior to their scheduled maturities, at the
the maximum permitted by Article 717k-2 , V.T.C. S . , as amended;
such interest rates shall be those proposed in the bid for
the purchase of the Bonds which results in the lowest net
interest cost to the City and such interest shall be evi-
denced by interest coupons which shall appertain to the
Bonds and which shall be payable on the dates indicated in
the FORM OF BOND set forth in this Ordinance .
Section 3 . 05 - Payment of Principal of, Interest on,
Characteristics and Execution of Bonds . The Bonds and the
interest coupons appertaining thereto shall be payable,
shall have the characteristics, and shall be signed and
executed (and the Bonds shall be sealed) , all as provided,
and in the manner indicated, in Article IV of this Ordinance.
Section 3 . 06 - Mutilated, Lost, Destroyed or Wrongfully
Taken Bonds . If the bearer of any Bond claims that such
Bond has been mutilated, lost, destroyed, or wrongfully
taken, the City may, under the applicable provisions of
Section 8 .405, Texas Business and Commercial Code, and
Article 715a, Vernon' s Texas Civil Statutes , as presently
existing or as may hereafter be amended, execute a new bond
of like tenor and date in exchange and substitution for the
mutilated bond or in lieu of and substitution for the bond
so lost, destroyed or wrongfully taken.
ARTICLE IV.
CHARACTERISTICS AND FORM OF BONDS , INTEREST COUPONS AND
ENDORSEMENT FOR REGISTRATION BY COMPTROLLER
Section 4. 01 - Form of Bonds . The form of the Bonds ,
shall be substantially as follows, with such omissions ,
insertions and variations as may be necessary and desirable
and consistent with the terms of this Ordinance :
FORM OF BONDS :
NO. $5, 000
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF PEARLAND, TEXAS ,
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
SERIES 1978
The CITY OF PEARLAND, TEXAS, for value received, hereby
acknowledges itself indebted to and promises to pay to
bearer, but solely from the sources hereinbelow described,
ON THE FIRST DAY OF SEPTEMBER,
the principal sum of
interest payable on March 1, 1979 and on each September 1
and March 1 thereafter while this bond is outstanding. Both
principal of and interest on this bond shall be payable in
any coin or currency of the United States of America which,
on the respective dates of payment of such principal and
interest, is legal tender for the payment of debts due the
United States of America, without exchange or collection
charges, at the First City National Bank of Houston, Houston,
Texas, the Paying Agent. Interest hereon shall be paid only
upon presentation of the proper interest coupon initially
affixed to this bond to the Paying Agent, and the principal
hereof shall be paid only upon presentation and surrender of
this bond to the Paying Agent.
THE DATE OF THIS BOND, in conformity with the ordinance
hereinafter mentioned, IS September 1 , 1978 .
THIS BOND IS ONE OF A SERIES OF BONDS of like tenor and
effect, except as to serial number, maturity and option of
prior redemption, being numbered consecutively from 1 to
550, both inclusive, in the denomination of $5, 000 each,
aggregating $2 , 750, 000, issued pursuant to an ordinance law-
fully adopted by the City Council of the City of Pearland,
Texas, and duly recorded in its official minutes (the "Ordi-
nance" ) for the purpose of constructing improvements and
extensions to the waterworks and sanitary sewer system of
the City, under and in strict conformity with the Consti-
tution and laws of the State of Texas, particularly Articles
1111 to 1118, Vernon' s Texas Civil Statutes , as amended, and
by authority of an election held within the City on May 13 ,
1978 .
THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE A DEBT of
the City of Pearland, Texas, or a pledge of its faith and
credit, but shall be payable, as to principal and interest,
solely from the net revenues derived from the operation of
the City' s waterworks and sanitary sewer system, as that
system is defined in the Ordinance (the "System" ) , after
deduction of the reasonable expenses of maintenance and
operation of the System. The bearer or owner Y4ereof shall
never have the right to demand payment of this obligation
out of any funds raised or to be raised by taxation.
ON September 1, 1993 , AND ON ANY INTEREST PAYMENT DATE
THEREAFTER, the outstanding bonds of this series may be
redeemed prior to their scheduled maturities , at the option
of the City, in whole, or in part in inverse numerical
order, for the principal amount thereof and unpaid accrued
interest thereon to the date fixed for any such redemption.
If the City elects to redeem all or any part of said bonds
on any such redemption date, notice of the exercise of the
option to redeem shall be given in writing to the Paying
Agent, and said notice shall be published in the English
language in the City of New York, New York, or in the City
of Austin, Texas, which notice shall be mailed to the Paying
Agent and published in said journal or publication at least
thirty (30 ) days prior to the date fixed for redemption.
When said bonds , in whole or in part, have been called for
redemption in the manner prescribed and due provision has
been made to pay the principal of the bonds called for
redemption and interest thereon to the date fixed for , re-
IN ADDITION TO THE RIGHT TO ISSUE BONDS OF INFERIOR
LIEN, the City has reserved the right to issue additional
bonds which may be secured by a lien on and pledge of the
net revenues of the System on a parity with the lien on and
pledge of such net revenues that secure payment of this
bond. The City has also reserved the right to issue special
project bonds, as defined in the Ordinance, which are pay-
able solely from and secured by the proceeds of a contract
or contracts with persons, corporations , municipal corpora-
tions , political subdivisions, or other entities . Reference
is made to the Ordinance for a complete description of the
right of the City to issue additional bonds and special
project bonds .
IT IS FURTHER CERTIFIED AND RECITED that all acts,
conditions and things required to be done precedent to and
in the issuance of this bond and this series of bonds have
happened and have been performed in regular and due time,
form and manner as required by law; and that provision has
been made for the payment of the principal of and interest
on this bond and the series of which it is a part by pledg-
ing the net revenues specified herein and that the issuance
of this series of bonds does not exceed any Constitutional
or statutory limitation.
IN TESTIMONY WHEREOF, the City Council of the City of
Pearland, Texas, has caused the official seal of the City to
be duly impressed, or placed in facimile, hereon, and has
caused this bond to be signed by the Mayor of said City and
countersigned by the City Secretary by their facsimile
signatures .
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Mayor, City of Pearland, Texas
COUNTERSIGNED:
xxxxxxxxxxxxxxxxxxxxxxxxx
City Secretary, City of
Pearland, Texas
(SEAL)
Section 4. 02 - Form of Interest Coupons . The form of
the interest coupons of the Bonds shall be substantially as
follows :
No . $
FORM OF INTEREST COUPONS :
ON , *
the CITY OF PEARLAND, TEXAS, PROMISES TO PAY TO BEARER,
without exchange or collection charges , at the First City
National Bank of Houston, Houston, Texas , the amount shown
coupon appertains, being interest due that date on the bond
bearing the number hereinafter designated, of that issue of
City of Pearland, Texas, Waterworks and Sewer System Revenue
Bonds, Series 1978 , dated September 1, 1978 . The bearer
hereof shall never have the right to demand payment of this
obligation out of any funds raised or to be raised by taxa-
tion.
Bond No.
xxxxxxxxxxxxxxxxxx
Mayor, City of Pearland, Texas
xxxxxxxxxxxx
City Secretary, City of Pearland,
Texas
*(Coupons maturing after September 1, 1993 , shall
contain the following additional clause:
unless the bond to which this coupon
appertains shall have been previously
called for redemption and due provision
made to redeem same, )
Section 4 . 03 - Form of Registration Certificate . The
Bonds shall be registered by the Comptroller of Public
Accounts of the State of Texas as provided by law, and the
resulting registration certificate shall be printed on the
back of each of the Bonds in substantially the following
form:
OFFICE OF THE COMPTROLLER
REGISTER NO.
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, that he finds that it has been
issued in conformity with the Constitution and laws of the
State of Texas, and it is a valid and binding special obli-
gation of the City of Pearland, Texas, and said bond has
this day been registered by me .
WITNESS MY HAND AND SEAL OF OFFICE at Austin, Texas ,
Comptroller of Public Accounts of
the State of Texas
Section 4 . 04 - CUSIP Numbers . CUSIP Numbers may be
printed on the backs of the Bonds, but errors in or omis-
ARTICLE V
APPLICATION OF BOND PROCEEDS
Section 5 . 01 - Application. Proceeds from the sale of
the Bonds shall be applied in the following order:
( a) To pay all expenses incident to the issuance of
the Bonds; and
(b) To pay for constructing improvements and exten-
sions to the waterworks and sanitary sewer system of the
City, as authorized by this Ordinance, and any and all
reasonable costs and expenses incurred by the City in con-
nection therewith.
ARTICLE VI
SECURITY OF BONDS
Section 6 . 01 - Pledge of Net Revenues . All of the Net
Revenues derived from the operation of the System, with the
exception of those Net Revenues in excess of the amounts
required to establish and maintain the funds as hereinafter
provided, are hereby pledged to the payment of the principal
of and interest on the Bonds and any Additional Bonds . The
Net Revenues shall immediately be subject to the lien of
this pledge without any physical delivery thereof or further
act, and the lien of this pledge shall be valid and binding
against all parties of any kind having a claim of any kind
in tort, contract or otherwise, against the City irrespec-
tive of whether such parties have notice thereof.
Section 6 . 02 - Security of Bonds . The Bonds and any
Additional Bonds shall be payable solely from and shall be
equally ratably secured by a first lien on and pledge of the
Net Revenues, and the Bonds and any Additional Bonds , when
and if issued, will be in all respects on a parity with and
of equal dignity with one another. The bearers or owners of
the Bonds shall never have the right to demand payment out
of any funds raised or to be raised by taxation.
Section 6 . 03 - Maintenance of Income . In order that
the Net Revenues of the City will be sufficient to pay the
Bonds and the interest thereon, the City shall fix and
maintain rates and collect charges for the facilities and
services afforded by the System that will provide Revenues
sufficient at all times :
(a) to pay all operation and maintenance expenses of
the System as provided in Section 7 . 04( a) of this Ordinance;
(b) to establish and maintain the Bond Fund and the
Reserve Fund; and
(c) to pay all indebtedness from time to time out-
standing against the System other than the Bonds as and when
the same becomes due .
Section 6 . 04 - Maintenance of Net Revenues . The City
1 .20 times all principal and interest payments during such
Fiscal Year on all Bonds and Additional Bonds then out-
standing.
ARTICLE VII
REVENUES AND APPLICATION THEREOF
Section 7 . 01 - Creation of Funds . There shall be
created the following funds :
(a) the System Fund;
(b) the Bond Fund; and
(c ) the Reserve Fund.
Each fund shall be kept separate and apart from all
other funds of the City. The System Fund shall be main-
tained at the official depository of the City. The Bond
Fund and the Reserve Fund shall constitute trust funds which
shall be held in trust by the depository solely for the
benefit of the bearers of the Bonds and Additional Bonds .
The System Fund shall be used solely as provided in this
Ordinance until all Bonds and Additional Bonds have been
retired as to principal and interest.
Section 7 . 02 - Security of Funds . All bank deposits to
the funds and accounts created by this Ordinance, to the
extent not insured by the Federal Deposit Insurance Corpora-
tion or the Federal Savings and Loan Insurance Corporation,
or the successor of either, shall be secured by a valid
pledge of securities eligible under the laws of the State of
Texas to secure the funds of cities or towns, having an
aggregate market value, exclusive of accrued interest, at
all times not less than the amount of deposits credited to
such funds and accounts, respectively.
Section 7 . 04 - Use of Revenues . The City will deposit,
as collected, all Revenues derived from the ownership and
operation of the System into a special account (herein
called the "System Fund" ) , which shall be kept separate and
apart from all other funds of the City. The System Fund
shall be administered as follows :
(a) Maintenance and Operation: From the moneys in the
System Fund, the City shall first pay the expenses of opera-
tion and maintenance, including all salaries, labor, materi-
als, interest and such repairs and extensions, as in the
judgment of the governing body of the City, are necessary to
keep the System in operation and render adequate service to
the City, its inhabitants and other users of the System, or
such as might be necessary to meet some physical accident or
condition which would otherwise impair the ability of the
System to generate Net Revenues sufficient to pay principal
and interest on the Bonds, Additional Bonds and other in-
debtedness against the System.
(b) Bond Fund: After the payment of all expenses
provided for in the next preceding paragraph, the City shall
amount required to meet the payments of principal and inter-
est on the Bonds that will be payable on or before the next
January 1, together with such other amounts as may be re-
quired in any other ordinance authorizing the issuance of
Additional Bonds . The amount required to be paid into the
Bond Fund each year shall be made in substantially equal
monthly payments from moneys in the System Fund, and such
monthly payments shall be made on or before the 15th day of
each month beginning with the date the Bonds are delivered
to the purchasers thereof. If in any month the City shall,
for any reason, fail to pay into said Bond Fund the full
amounts above stipulated, amounts equivalent to such defi-
ciencies shall be set apart and paid into said Bond Fund
from the first available and unallocated Net Revenues as of
the following month or months and shall be in addition to
the amounts hereinafter provided to be otherwise paid into
said Bond Fund each month.
Not later than ten days prior to each principal and/or
interest payment date on the Bonds and any Additional Bonds,
the Town Council shall cause to be transferred from the Bond
Fund to the Paying Agent an amount sufficient to pay the
principal and/or interest to become due and payable thereon
at such date.
(c) Reserve Fund: There is hereby established the
"Reserve Fund. " Beginning with the month immediately
following the month in which any of the Bonds are delivered,
and after payment of all amounts required by Section 7 . 03 (b) ,
there shall be paid during each month from the System Fund
into the Reserve Fund, the sum of $3 , 676, until such time as
there is in the Reserve Fund, as a result of such deposits
and interest or investment earnings, the sum of $220, 560 .
If in any month the City shall, for any reason, fail to pay
into the Reserve Fund the full amount herein provided,
amounts equivalent to such deficiencies shall be set apart
and put into the Reserve Fund from the first available and
unallocated Net Revenues of the following month or months
after payment of all amounts required by Section 7 .03 (b) and
shall be in addition to the monthly deposits herein required
to be otherwise paid into the Reserve Fund. Moneys in the
Reserve Fund may be used only to prevent a default in the
payment of principal and interest on the Bonds and Addi-
tional Bonds in the event there are not otherwise sufficient
moneys in the Bond Fund to make such payments . So long as
the Reserve Fund contains a balance of not less than
$220, 560, no further payments need be made into the Reserve
Fund. If the balance in the Reserve Fund exceeds $220, 560
(due to interest on investments or for any other reason) ,
such excess may be transferred out of the Reserve Fund into
the Bond Fund. If, however, any of the moneys in the Re-
serve Fund are used to prevent a default in the payment of
principal of and interest on the Bonds or Additional Bonds
as herein provided, monthly payments into the Reserve Fund
shall thereafter be resumed and continued until not less
than $220, 560 is again on deposit in the Reserve Fund.
Moneys in the Reserve Fund may, at the option of the City,
be invested as authorized by Section 7 . 04, and such securi-
ties shall be deposited in escrow at the depository bank of
the City under an escrow agreement.
and the interest or other investment earnings thereon shall
belong to the fund or account from which the moneys for such
investments were taken, except that at any time that the
Reserve Fund has a balance of $220, 560 or more, all interest
and other investment earnings on such balance may be trans-
ferred to the Bond Fund. In the event any fund does not
have sufficient uninvested funds on hand to meet the obli-
gations payable out of such fund, the City shall have the
right to have sold in the open market a sufficient amount of
the investments to meet its obligations . The moneys resulting
from such sale or sales shall belong to the fund from which
the moneys for such investment were initially taken. The
City shall not be responsible for any loss arising out of
the sale of any investments .
Section 7 . 05 - Surplus Net Revenues . After provision
has been made for the reasonable cost of operating and
maintaining the System, and after paying all amounts re-
quired to be paid into the Bond Fund and Reserve Fund, as
above provided in Section 7.03 (b) and (c) , and after paying
all other amounts that may be required by any ordinances
pertaining to Additional Bonds, any funds remaining in the
System Fund may be used by the City for any other purpose
permitted by law.
ARTICLE VIII
ADDITIONAL BONDS, REFUNDING BONDS AND DISCHARGE BY DEPOSIT
Section 8 . 01 - Additional Bonds. The City reserves the
right to issue, from time to time, additional parity bonds
in one or more installments, for completion, repair, improve-
ment, extension, enlargement, replacement, acquisitions,
construction or repair of the City' s waterworks system,
sanitary sewer system, or both, or for any other lawful
purpose (the "Additional Bonds" ) , and such Additional Bonds,
when issued, may be secured by and payable from a first lien
on and pledge of the Net Revenues of the System in the same
manner and to the same extent as are the Bonds, and such
Additional Bonds may be, in all respects, of equal dignity
with the Bonds; provided, however, that no Additional Bonds
shall be issued unless each of the following conditions is
met, except in the case of Additional Bonds described in
Sections 8 . 02, 8 . 05 and 8. 06, which may be issued as pro-
vided therein:
(a) The Additional Bonds are made payable on Sep-
tember 1 of each year;
(b) Provisions is made in the ordinance or ordinances
authorizing said Additional Bonds for monthly payments or
deposits into the Reserve Fund until a balance is reached
(in addition to deposits into the Reserve Account required
by other ordinances or proceedings relating thereto and in
addition to any balance or balances required by said other
ordinances or proceedings ) of not less than the maximum
annual principal and interest requirements on the Bonds,
Additional Bonds, if any, and such Additional Bonds then
proposed to be issued, and such balance is to be reached
within approximately five (5) years from the date of such
.�. r u.+�■ �,�,
or by any ordinance authorizing any previously issued Addi-
tional Bonds contains the amount of moneys then required to
be on deposit therein;
(d) A certificate is executed by the Mayor and City
Secretary to the effect that the City is not in default as
to any covenant, condition or obligation prescribed by any
ordinance authorizing the Bonds or any Additional Bonds ; and
(e) A certificate is executed by a certified public
accountant to the effect that Net Revenues for the last
completed Fiscal Year or for any consecutive twelve (12 )
month period within the last consecutive fifteen (15 ) month
period next preceding the adoption of the ordinance autho-
rizing the Additional Bonds were not less than 1 . 50 times
the average annual principal and interest requirements on
the Bonds, any Additional Bonds then outstanding, and the
Additional Bonds then proposed to be issued.
Section 8 . 02 - Inferior Lien Bonds . The City also
reserves the right to issue inferior lien bonds and pledge
the Net Revenues of the System to the payment thereof, such
pledge to be junior and subordinate in all respects to the
lien of the Bonds and any Additional Bonds .
Section 8 . 03 - Special Project Bonds . The City further
reserves the right to issue bonds in one or more install-
ments for the purchase, construction, improvement, exten-
sion, replacement, enlargement or repair of water, sewer
and/or drainage facilities necessary under a contract or
contracts with persons , corporations , municipal corpora-
tions, political subdivisions, or other entities , such bonds
to be payable from and secured solely by the proceeds of
such contract or contracts . The City further reserves the
right to refund such bonds .
Section 8 . 04 - Refunding Bonds . The City further
reserves the right to issue refunding bonds, either as
Additional Bonds or junior lien bonds , or to refund any of
the Bonds or Additional Bonds in any manner authorized by
law. Any refunding bonds so issued may enjoy complete
equality of lien with the portion of the Bonds or Additional
Bonds which are not refunded. Before issuing any refunding
bonds as Additional Bonds, the City must satisfy the re-
quirements of Sections 8 . 01(a) and (b) .
Section 8 . 05 - Discharge By Deposit. The City may
discharge its remaining obligations to the bearers of the
Bonds by depositing with the Paying Agent, money which
(together with interest earned on or profits to be realized
from investments in Governmental Obligations as described
below) will be sufficient to pay principal and interest to
maturity or to the date fixed for redemption of the Bonds .
Upon such deposit, the Bonds shall no longer be regarded as
outstanding and unpaid; provided, however, that provision
shall have been made by the City for the publication at
least one (1 ) time in a financial journal or publication
published in the City of New York, New York, or in the City
of Austin, Texas , of a notice to the bearers of the Bonds
that such money is so available for such payment. Money
held for payment in accordance with the provisions of this
t•.....�� ..... ..... . 7.. .4-...7 . .. l�i.e r.-.v-..m.�r•�--.l (\1-.1 h�i-i uric .T� nil
for the money proposed be invested therein: direct general
obligations of the United States of America, or any obliga-
tions the payment of the principal of and interest on which
are unconditionally guaranteed by the full faith and credit
of the United States of America. Such investments shall
mature in sufficient time, in the judgment of the City, to
make available money needed for the purposes intended. Net
interest earned on such investments, or portions thereof,
may be paid to the City if sufficient funds will otherwise
be held by the Paying Agent to pay principal and interest on
the Bonds; otherwise, such interest or any part thereof
shall be used for payment of principal and interest on the
Bonds .
ARTICLE IX.
Special Covenants of the City
Section 9 . 01 - Covenants . The City, by and through
this Ordinance, expressly covenants as hereinafter provided
in this Article.
Section 9 . 02 - Punctual Payment of the Bonds . The City
will punctually pay or cause to be paid the interest on and
principal of the Bonds according to the terms thereof and
will faithfully do and perform, and at all times fully
observe, any and all covenants, undertakings, stipulations
and provisions contained herein or in any Bond executed and
delivered hereunder.
Section 9 . 03 - Maintenance of System. So long as any
of the Bonds remain outstanding, the City covenants that it
will at all times maintain the System, or cause the same to
be maintained, in good condition and working order and will
operate the same, or cause the same to be operated, in an
efficient and economical manner, at a reasonable cost and in
accordance with sound business principles . In operating and
maintaining the System, the City will comply with all con-
tractual provisions and agreements entered into by it and
with all valid rules, regulations , directions or orders of
any governmental, administrative or judicial body promulgat-
ing the same .
Section 9 . 04 - Power to Pledge Revenues . The City has
the power to pledge the Net Revenues to the payment of the
Bonds and has lawfully exercised such power under the Con-
stitution and laws of the State of Texas and the Constitu-
tion of the United States of America.
Section 9 . 05 - System and Revenues not Encumbered.
Neither the System nor the Revenues thereof will be in any
way encumbered except as provided in this Ordinance.
Section 9 . 06 - Sale or Encumbrance of System. So long
as any of the Bonds remain outstanding, either as to prin-
cipal or interest, the City will not sell, dispose of or
encumber any of the improvements, facilities or properties
constituting the System; provided, however, that this pro-
vision shall not prevent the City from disposing of any
portion of the System which has been declared surplus or is
corporation, municipal corporation or political subdivision
to operate the System or to lease and operate all or part of
the System shall not be considered as an encumbrance of the
System.
Section 9 . 07 - Insurance. So long as any of the Bonds
remain outstanding, the City covenants that it will at all
times keep insured such parts of the System as are usually
insured by municipal corporations operating like properties
in similar locations under the same circumstances with a
responsible insurance company or companies against risks ,
accidents or casualties against which and to the extent
insurance is usually carried by such municipal corporations;
provided, however, that at any time while any contractor
engaged in construction work shall be fully responsible
therefor, the City shall not be required to carry such
insurance . All such policies shall be made available for
inspection by the bearers of the Bonds or their representa-
tives at all reasonable times .
Section 9 . 08 - Insurance Proceeds . In the event of any
loss or damage, the City covenants that it will reconstruct
or repair the destroyed or damaged portion of the System and
will apply the proceeds of the insurance policies covering
such loss or damage solely for that purpose. The City
covenants that it will begin such work or reconstruction or
repair promptly after such loss or damage shall occur and
will continue and properly complete the same as expeditious-
ly as possible and will pay, or cause to be paid, all costs
and expenses in connection therewith out of the insurance
proceeds so that the same shall be completed and the proper-
ty be free and clear of all mechanic ' s and other liens or
claims .
Section 9 . 09 - Excess Insurance Proceeds . Any insur-
ance proceeds remaining after the completion of and payment
for any such reconstruction or repairs shall be deposited to
the credit of the Bond Fund.
Section 9 . 10 - No Free Services . No free service or
services of the System shall be allowed, and should the City
or any of its agencies or instrumentalities make use of the
services and facilities of the System, payment of a reason-
able value thereof shall be made by the City out of funds
derived from sources other than the revenues and income of
the System.
Section 9 . 11 - No Competing System. To the extent
that the City legally may do so, the City further covenants
that so long as any of the Bonds or interest thereon are
outstanding, no franchise shall be granted for the construc-
tion and operation of any competing system, and the City
will prohibit the construction and operation of any system
other than the System owned by the City.
ARTICLE X.
Default Provision
Section 10 . 01 - Remedies in Event of Default. In
event it fails to make payments required to be made into the
Bond Fund or defaults in the observance or performance of
any other of the covenants, conditions or obligations set
forth in this Ordinance, the following remedies shall be
available:
(a) The bearers of any of the Bonds shall be entitled
to a writ of mandamus issued by a court of competent juris-
diction compelling and requiring the City and the officials
thereof to observe and perform any covenant, obligation or
condition prescribed in this Ordinance; and
(b ) No delay or omission to exercise any right or
power accruing upon any delay shall impair any such right or
power or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and
power may be exercised from time to time and as often as may
be deemed expedient.
Section 10 . 02 - Ordinance is Contract. In considera-
tion of the purchase and acceptance of the Bonds authorized
to be issued hereunder by those who shall hold the same from
time to time, the provisions of the Ordinance shall be
deemed to be and shall constitute contracts between the City
and the bearers from time to time of the Bonds ; and the
covenants and agreements herein set forth to be performed on
behalf of the City shall be for the equal benefit, protec-
tion and security of the bearers of any and all of the
Bonds, all of which, regardless of the time or times of
their issue or maturity, shall be of equal rank without
preference, priority or distinction of any of the Bonds over
any other thereof, except as expressly provided herein.
ARTICLE XI .
Accounting and Audits
Section 11 . 01 - Accounts, Records and Accounting Reports .
The City covenants and agrees that it will maintain in
conformity with generally accepted accounting principals for
municipalities books of records and accounts showing as a
separate system the accounts of the System, in which full,
true and proper entries will be made of all dealings , trans-
actions , business and matters which in any way affect or
pertain to the operation of the System and the allocation
and application of the revenues thereof, and that such books
of the System will be available for inspection by the bearers
of any of the Bonds at reasonable hours and under reasonable
circumstances . The City will operate the System on the
basis of a Fiscal Year which currently begins October 1 and
which may be amended from time to time by the City.
Section 11 . 02 - Audit. After the end of each Fiscal
Year, the City will have an audit of the System by a certi-
fied public accountant for the last Fiscal Year, which shall
be submitted to the City within one hundred and twenty ( 120 )
days after the end of the Fiscal Year.
Section 11 . 03 - Copies of Audit and Cost. The City
shall furnish copies of such audit (without cost) to the
ARTICLE XII .
Sale, Approval, Registration
and Delivery of Bonds
Section 12 . 01 - Sale of Bonds . The Bonds are hereby
sold and shall be delivered to that bidder, or bidders,
submitting the bid which results in the lowest net interest
cost to the City subject to a resolution hereafter to be
adopted by the City Council, for the par value thereof and
accrued interest thereon to date of delivery, plus a premium
of $ , subject to the unqualified approving
opinions, as to the legality of the Bonds, of the Attorney
General of the State of Texas and of Vinson & Elkins, Houston,
Texas, market attorneys .
Section 12 . 02 - Approval , Registration and Delivery of
Bonds . The Mayor and City Secretary are hereby authorized
and directed to take and have charge of the records and
proceedings of the Bonds, and the Bonds, pending their
approval by the Attorney General of the State of Texas , and
their registration by the Comptroller of Public Accounts of
the State of Texas . Upon registration of said Bonds , the
Comptroller of Public Accounts (or a deputy designated in
writing to act for the Comptroller) shall manually sign the
Comptroller' s certificate of registration described herein
to be printed on the back of each Bond, and the seal of the
Comptroller shall be impressed, or placed in facsimile, on
each of the Bonds .
ARTICLE XIII .
Arbitrage
The City Council certifies that based upon all facts,
estimates and circumstances now known or reasonably expected
to be in existence on the date the Bonds are delivered and
paid for, the City Council reasonably expects that the
proceeds of the Bonds will not be used in a manner that
would cause the Bonds or any portion of the Bonds to be an
"arbitrage bond" under Section 103 (c) of the Internal Revenue
Code of 1954, as amended, and the regulations prescribed
thereunder. Furthermore, all officers, employees and agents
of the City are authorized and directed to provide certifi-
cations of facts, estimates and circumstances which are
material to the reasonable expectations of the City Council
as of the date the Bonds are delivered and paid for, and any
such certifications may be relied upon by counsel, by the
bearers of the Bonds , or by any person interested in the
exemption of interest on the Bonds from federal income
taxation. Moreover, the City Council covenants that it
shall make such use of the proceeds of the Bonds, regulate
investments of proceeds of the Bonds, and take such other
and further action as may be required so that the Bonds
shall not be "arbitrage bonds" under Section 103 (c) of the
Internal Revenue Code of 1954, as amended, and regulations
prescribed from time to time thereunder.
word, phrase, clause, sentence, paragraph, section or other
part of this Ordinance to any other persons or circumstances
shall not be affected thereby.
Section 14. 08 - Further Procedures . The Mayor and City
Secretary of the City and other appropriate officials of the
City are hereby authorized and directed to do any and all
things necessary and/or convenient to carry out the terms of
this Ordinance.
Section 14 . 09 - Repeal of Resolutions and Ordinances .
All resolutions or ordinances heretofore adopted by the City
Council in conflict with the provisions of this Ordinance
are hereby in all things repealed and shall be of no further
force or effect.
Section 14. 10 - Effective Date of Ordinance . This
Ordinance shall take effect and be in full force upon and
after its having been read, considered and adopted by the
City Council at two regular sessions of the City Council .
Section 14.11 - Emergency Meeting. It is hereby offi-
cially found and determined that an emergency or urgent
public necessity exists which requires the holding of the
meeting at which this Ordinance is passed, such emergency or
urgent public necessity being that the proceeds from the
sale of the Bonds are required as soon as possible for
necessary and urgently needed public improvements; and that
said meeting was open to the public, and public notice of
the time, place, and purpose of said meeting was given, all
as required by Article 6252-17, Vernon' s Texas Civil Statutes,
as amended.
PASSED AND APPROVED this 28th day of August, 1978 .
/s/ Tom Reid
Mayor, City of Pearland, Texas
ATTEST:
/s/ Dorothy L. Cook
City Secretary, City of
Pearland, Texas
(SEAL)
I
CERTIFICATE FOR RESOLUTION FIXING COUPON
INTEREST RATES AND NAMING PURCHASER OF $2 , 750 ,000
WATERWORKS AND SEWER SYSTEM REVENUE BONDS , SERIES 1978
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
We, the undersigned officers of the CITY OF PEARLAND,
TEXAS (the "City" ) , do hereby certify as follows :
1. That we are the duly chosen, qualified and acting
officers of the City for the offices shown below our signatures
and that as such we are familiar with the facts herein certified.
2 . That there is attached to and follows this certificate
an excerpt of proceedings from the minutes of a meeting of the
City Council of the City (the "City Council") which is a true,
full and complete excerpt of all proceedings from the minutes of
the City Council pertaining to the adoption of the resolution de-
scribed therein; and that the persons named in such excerpt as
the officers and members of the City Council or as officers of
the City are the duly chosen, qualified and acting officers and
members as indicated therein.
3 . That a true and complete copy of the resolution (the
"Resolution") , as adopted at the meeting described in such excerpt
from the minutes, is attached to and follows such excerpt.
4 . That the Resolution has been duly and lawfully adopted
by the City Council and that the Mayor of the City has approved,
and hereby approves , the Resolution; that the Mayor and the City
Secretary of the City have duly signed and attested the Resolution
and each, respectively, hereby declares that the signing of this
certificate shall also constitute the signing of the Resolution
for all purposes; and that the Resolution, as signed, has been
duly recorded in the minutes of the City Council for such meeting.
5 . That each of the officers and members of the City
Council was duly and sufficiently notified officially and per-
sonally, in advance, of the date, hour, place and subject of
such meeting of the City Council, and that the Resolution would
be introduced and considered for passage at such meeting, and
each of such officers and members consented, in advance , to the
holding of such meeting to consider and act upon such subject.
6 . That written notice of the meeting of the City Council
described in the excerpt from the minutes was posted in the form
and manner required by law; and that such meeting was open to the
public as required by law at all times during which the Resolution
and the subject matter thereof were discussed, considered and
formally acted upon, all as required by the Open Meetings Act,
Article 6252-17 , Vernon ' s Texas Civil Statutes , as amended.
SIGNED AND SEALED this 28th day of August, 197 .
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
The City Council of the City of Pearland, Texas , convened
in regular meeting , open to the public, on the 28th day of
August, 1978 , at the City Hall, and the roll was called of the
duly constituted officers and members of the City Council and
the City Secretary of the City, to-wit:
Tom Reid Mayor
Dennis Frauenberger Councilman
Harry Farley Councilman
Fran Coppinger Councilman
Morris S. Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present, except the following ab-
sentees : None
thus constituting a quorum. Whereupon, among other business ,
the following was transacted at said meeting : a written reso-
lution entitled:
RESOLUTION FIXING COUPON INTEREST RATES
AND NAMING PURCHASER OF $2 ,750 , 000 WATERWORKS
AND SEWER SYSTEM REVENUE BONDS , SERIES 1978
(the "Resolution") was duly introduced for the consideration
of the City Council and reviewed in full. It was then duly
moved and seconded that the Resolution be passed; and, after
due discussion, the motion, carrying with it the passage of
the Resolution, prevailed and carried by the following vote :
AYES : All members of the City Council shown
present above voted "Aye" .
NOES : None.
The ;Mayor thereupon announced that the Resolution had been duly
. . . . . —
RESOLUTION FIXING COUPON INTEREST RATES
AND NAMING PURCHASER OF $2 ,750 ,000 WATERWORKS
AND SEWER SYSTEM REVENUE BONDS , SERIES 1978
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
WHEREAS, the City Council of the CITY OF PEARLAND, TEXAS
(the "City") , has heretofore authorized the issuance of the
City ' s $2, 750 ,000 WATERWORKS AND SEWER SYSTEM REVENUE BONDS ,
SERIES 1978 (the "Bonds") , by reading, considering, and adopting
on August 14 , 1978 , and again on August 28 , 1978 , respectively,
an ordinance authorizing such issuance; and
WHEREAS, the City Council deems it advisable to adopt a
resolution fixing coupon interest rates and naming the pur-
chaser or purchasers of the Bonds ;
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND THAT:
Section 1. The matters and facts recited in the preamble
of this resolution are hereby found to be true and correct.
Section 2 . The Bonds shall bear interest per annum at
the following rates , respectively, to-wit:
Bonds maturing 1979 through 1988 , 6 . 40 %
Bonds maturing 1989 through 19--, 5 . 60 %
Bonds maturing 1990 through 1992, 5 . 40 %
Bonds maturing 1993 through 19--, 5 . 60 %
Bonds maturing 1994 through 19--, 5 . 70 %
Bonds maturing 1995 through 19--, 5 . 80 %
Bonds maturing 1996 through 19--, 5 . 90 %
Bonds maturing 1997 through 19--, 6 . 00 %
Bonds maturing 1998 through 19--, 6 . 10 %
Section 3 . The Bonds are hereby sold and shall be de-
livered to UNDERWOOD, NEUHAUS & CO. , INCORPORATED
, for the par value
thereof and accrued interest thereon to date of delivery , plus
a premium of $ -0- , subject to the unqualified approving
opinions, as to the legality of the Bonds , of the Attorney
General of the State of Texas and of Vinson & Elkins , Houston ,
Texas , market attorneys .
Section 4 . This resolution was read and considered once
by the City Council and shall take effect immediately.
Section 5 . 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 resolution is adopted and for the adoption of this resolu-
tion; and the NOTICE OF MEETING relating to said meeting and
heretofore posted by the City Secretary, and the posting
thereof, is hereby authorized, approved, adopted, and ratified.
PASSED AND APPROVED this 28th day of August, 1978 .
/s/ Tom Reid
Mayor
ATTEST: CITY OF PEARLAND, TEXAS
/s/ Dorothy L. Cook
City Secretary
CITY OF PEARLAND , TEXAS
(SEAL)
wirralli
EXHIBIT "A"
CITY OF PEARLAND, TEXAS
ESTIMATED TOTAL
ESTIMATED NO. ESTIMATED ESTIMATED ANNUAL WATERWORKS
OF CONNECTIONS NET REVENUE NET REVENUE AND SANITARY SEWER
YEAR WATER SEWER WATER SEWER SYSTEM NET REVENUE
1979 3,788 3,863 $ 166,699 $ 197,041 $ 363,740
1980 4,155 4,205 158,843 202,442 361,285
1981 4,535 4,565 152,751 213,235 365,986
1982 4,967 4,992 143,635 230,118 373,753
1983 5,340 5,360 108,118 225,819 333,937
1984 5,774 5,789 107,502 244,126 351,628
1985 6,194 6,204 102,303 253,928 356,231
1986 6,592 6,600 102,692 264,399 367,091
1987 6,996 7,002 98,375 275,876 374,251
1988 7,430 7,434 107,175 301,953 409,128
1989 7,892 7,894 113,997 315,452 429,449
1990 8,382 8,382 120,971 329,065 450,036
1991 8,844 8,844 119,306 332,919 452,225
1992 9,323 9,323 124,552 342,992 467,544
1993 9,796 9,796 102,602 348,579 451,181
1994 10,281 10,281 105,953 360,247 466,200
1995 10,912 10,912 103,163 393,749 496,912
1996 11,428 11,428 86,102 381,610 -• 467,712
1997 11,968 11,968 211,014 394,880 605,894
1998 12,553 12,553 238,918 421,802 660,720
1999 13,175 13,175 252,174 433,448 685,622
2000 13,832 13,832 265,452 432,902 698,354
2001 14,528 14,528 279,860 430,760 710,620
2002 15,253 15,253 292,812 423,974 716,786
OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF TEXAS
October 5, 1978
THIS IS TO CERTIFY that the following described bonds,
together with authenticated copies of the proceedings relating
to and authorizing the issuance of same, have been submitted
to me for examination in accordance with the requirements of
the statutes of the State of Texas, to-wit:
CITY OF PEARLAND, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE
BONDS, SERIES 1978 , issued by virtue of ordinances dated August
14 and 28 , and a resolution dated August 28, 1978, adopted by
the City Council of said City, for the purpose of constructing
improvements and extensions to the waterworks and sanitary sewer
system of the City; dated September 1, 1978 ; numbered consecu-
tively from 1 to 550, inclusive; in the denomination of Five
Thousand Dollars ($5 , 000) each; aggregating the principal sum of
Two Million Seven Hundred Fifty Thousand Dollars ($2, 750, 000) ;
maturing serially on September 1 in each of the years as follows:
1979/1981 $ 50, 000 1993 $125 , 000
1982 60, 000 1994 130, 000
1983/1984 70, 000 1995 140 , 000
1985 75, 000 1996 150 , 000
1986/1987 80, 000 1997 160, 000
1988 90, 000 1998 170, 000
1989/1990 100, 000 1999 180, 000
1991 110, 000 2000 190, 000
1992 120, 000 2001/2002 200, 000
bearing interest at the following rates per annum, to-wit:
Bonds maturing 1979/1988 6 . 40%
Bonds maturing 1989 5. 60%
Bonds maturing 1990/1992 5. 40%
Bonds maturing 1993 5. 60%
Bonds maturing 1994 5. 70%
Bonds maturing 1995 5. 80%
Bonds maturing 1996 5. 90%
Bonds maturing 1997 6 . 00%
Bonds maturing 1998 6 . 10%
Bonds maturing 1999/2002 6 . 20%
payable on March 1 , 1979, and semiannually thereafter on September
1 and March 1 each year while said bonds are outstanding; both
principal and interest payable at the First City National Bank of
Houston, Houston, Texas; said bonds being subject to prior re-
OFFICIAL STATEMENT CERTIFICATE
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS §
CITY OF PEARLAND §
We, the undersigned, Mayor, City Secretary, and City
Manager of the CITY OF PEARLAND, TEXAS (the "City") , acting in
cur official capacity as such hereby certify with respect to
that issue of "City of Pearland, Texas , Waterworks and Sewer
System Revenue Bonds, Series 1978" , in the principal amount of
$2, 750, 000 (the "Bonds") , as follows :
That, to the best of our knowledge and belief :
(a) the descriptions and statements of or pertaining
to the City contained in its Preliminary and final
Official Statements, on the respective dates of
such statements, on the date of sale of the Bonds
and the acceptance of the best bid therefor, and
on the date of delivery of the Bonds , were and
are true and correct in all material respects ;
(b) as of the date of delivery of the Bonds , there
have been no material adverse changes in the
City' s financial condition and affairs since
the date of the final Official Statement;
(c) insofar as the City and its affairs , including
its financial affairs , are concerned, such Pre-
liminary and final Official Statements did not
and do not contain an untrue statement of a
material fact or omit to state a material fact
required to be stated therein or necessary to
make the statements therein, in the light of
the circumstances under which they were made,
not misleading; and
(d) insofar as the descriptions and statements ,
including financial data, contained in such Pre-
liminary and final Official Statements, of or
pertaining to entities other than the City and
their activities are concerned, such statements
and data have been obtained from sources which
we believe to be reliable and we have no reason
to believe that they are untrue in any material
respect. OCT 7 1978
EXECUTED this , the date of
payment for and delivery of the Bonds .
CITY OF PEARLAND, TE Af
BY:
c;;Le
Mayor
(SEAL) City Secretary
VINSON & ELKINS •
ATTORNEYS AT LAW
HOUSTON. TEXAS 77002
TREASURER'S RECEIPT
THE STATE OF TEXAS
COUNTIES OF BRAZORIA AND
COMM:OR HARRIS
I, the undersigned Treasurer of City of Pearland, Texas ,
certify as follows:
I. That on OCT 17 1978 , I delivered to the purchaser thereof the follow-
ing bonds:
CITY OF PEARLAND, TEXAS , WATERWORKS AND SEWER SYSTEM REVENUE
BONDS, SERIES 1978 , dated September 1 , 1978 , numbered consecu—
tively from 1 through 550, in the denomination of $5, 000 each,
aggregating $2 , 750 , 000 , and maturing serially on September 1
in each of the years 1979 through 2002 .
2. At the time of such delivery, there were no matured coupons attached to said bonds,
and all unmatured coupons were attached to said bonds.
3. At the time of such delivery, I received from said purchaser full payment for said
bonds in keeping with the order, ordinance, or resolution authorizing the issuance thereof and
the order, ordinance or resolution awarding the sale thereof, said full purchase price being par
plus accrued interest from date to delivery, plus a cash premium of $ —0—
IN WITNESS WHEREOF, I have hereunto set my hand and the official seal of said
City OCT 1 7 1978
, on
(SEAL) Treasurer
NO - LITIGATION CERTIFICATE
We, the undersigned officers of said City of Pearland, Texas
do hereby certify that at the time of delivery of the bonds, as set forth in the Treas-
urer's Receipt above, there was not pending and, to our knowledge, there was not threatened,
any litigation affecting the validity of said bonds, or the levy and/or collection and/or pledge
of funds for the payment thereof, or the organization or boundaries of said City
or the title of the officers thereof to their respective offices, and that no additional bonds, war-
rants, or other indebtedness have been issued since the date of the statement of indebtedness or
non-encumbrance certificate submitted to the Attorney General of Texas in connection with
the approval of said bonds.
WITNESS OUR HANDS AND THE OFFICIAL SEAL OF SAID CITY
r
on
Mayor Mayor
(SEAL) City Secretary:
The foregoing signatures of the above Treasurer, Mayor , and