1978-07-24 CITY COUNCIL REGULAR MEETING MINUTES262
MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS,
HELD ON JULY 24, 1978, AT 7:30 P.M. IN THE CITY HALL, 2335 N. TEXAS AVENUE,
PEARLAND, TEXAS.
The meeting was called to order with the following present:
Mayor
Tom Reid
Councilman
Dennis Frauenberger
Councilman
Carlton McComb
Councilwoman
Fran Coppinger
Councilman
Morris Wilson
City Manager
William E. Wolff
City Attorney
Bobby J. Williams
City Secretary
Dorothy L. Cook
Absent: Councilman/Mayor Pro -Tem Harry Farley
INVOCATION AND PLEDGE OF ALLEGIANCE:
The invocation was given by Mayor Reid. The Pledge of Allegiance was led by
Mr. William Keele.
APPROVAL OF MINUTES:
It was moved by Councilman Wilson, seconded by Councilwoman Coppinger that the
minutes of the regular meeting held on July 10, 1978 be approved as corrected.
Motion passed 4 to 0.
It was moved by Councilwoman Coppinger, seconded by Councilman McComb that the
minutes of a special meeting held on July 17, 1978 be approved as submitted.
Motion passed 4 to 0.
MAYOR'S ACTIVITY REPORT: None
COUNCIL ACTIVITY REPORTS:
Councilman McComb asked that the Mayor write letters to the State Senator,
State Representative, Governor, Lt. Governor opposing Rep. Pevato's Bill regarding
Tax Equalization Appraisal.
DEPARTMENTAL REPORTS:
City Manager Wolff presented his proposed Budget for the fiscal year beginning
October 1, 1978 to the City Council.
Director of Planning and Transportation, Ron Wicker, distributed a brochure on
the Metropolitan Transit Authority. The proposed Authority plans an election on
August 12, 1978, and Pearland, by the fact that a portion of its limits are
within Harris County, will be voting on whether or not to be a part of this
Authority. Mr. Wicker explained that if it did not .pass in the City of Houston,
the Metropolitan Transit Authority would not be created. The proposed method
of financing is through Government Grants and a 1¢ sales tax. Mr. Wicker stated
that he felt that the heavy traffic situation on Highway 35 and Highway 518, and
the fact that the growth of the City was esculating at such a rapid rate, made
it necessary for some type of mass transit be considered. He also advised that
if the voters of Pearland turned down the Authority at this time, it would not
preclude them for becoming a part of it at a later time.
CITIZENS:
Mr. Tommy Matlock spoke to the City Council expressing his desire to become a
member of the police reserve force. He also stated that he was opposed to the
ordinance that would eliminate the Police Reserve Force.
Mr. Fred David spoke in opposition to the ordinance that would eliminate the
Police Reserve Force.
P_ DOCKETED PUBLIC HEARINGS: None
UNFINISHED BUSINESS:
ORDER OF BUSINESS CHANGED TO NEW BUSINESS:
APPROVE AND ACCEPT IN SUBSTANTIAL FORM THE OFFICIAL BID STATEMENT ON BOND SALES:
Mr. Ildebrando advised that in anticipation of the proposed sale of the Permanent
Improvement Bonds and the Water and Sewer Revenue Bonds the Council has been
reviewing a preliminary draft of the Official Statement which Underwood Neuhaus
will be using to market the bonds. He advised that the Council's approval in
substantial form would mean that slight changes might be made in the preliminary
draft. He advised that when it is complete and the bonds have been sold, the
Mayor and City Secretary must sign the statement as to accuracy of same the
information contained therein.
It was moved by Councilman McComb, seconded by Councilman Frauenberger that the
City Council accept in the form presented by Underwood Neuhaus, Inc..,the Official
Notice of Sale, Preliminary Official Statement and the Official Bid Form for the
upcoming bond sale. Motion passed 4 to 0.
ORDER OF BUSINESS CHANGED TO UNFINISHED BUSINESS:
ORDINANCE NO. 380, AN ORDINANCE ANNEXING 79.159 ACRES OWNED BY W.E.L. HARTMAN,
ET UX:
Ordinance No. 380 was read in caption by Councilman Frauenberger. (Second Reading)
It was moved by Councilman Frauenberger, seconded by Councilwoman Coppinger that
Ordinance No. 380 be passed and approved on second and final reading. Said
Ordinance No. 380 reads in caption as follows:
ORDINANCE NO. 380
AN ORDINANCE ANNEXING CERTAIN PROPERTY AND TERRITORY TO THE
CITY OF PEARLAND, TEXAS, AND EXTENDING THE CORPORATE LIMITS
OF THE CITY OF PEARLAND TO INCLUDE AND EMBRACE SAID TERRITORY
WHICH IS ADJACENT TO AND CONTIGUOUS WITH THE PRESENT CORPORATE
LIMITS OF THE CITY OF PEARLAND AND IS NOT WITHIN THE CITY
LIMITS OF ANY OTHER CITY AND LIES SOLELY WITHIN THE EXTRA-
TERRITORIAL JURSIDICTION OF THE CITY OF PEARLAND, SAID TERRITORY
BEING HEREINAFTER FULLY DESCRIBED BY METES AND BOUNDS IN SECTION
1 OF THIS ORDINANCE; PRESCRIBING THE VOTING PRECINCTS FOR THE
INHABITANTS WITHIN SAID ANNEXED TERRITORY; PLACING SUCH IN-
HABITANTS ON EQUAL FOOTING WITH PRESENT INHABITANTS OF THE CITY
OF PEARLAND; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUB-
LICATIONS, AND CONTAINING OTHER PROVISIONS RELATING TO THE
SUBJECT.
Voting "Aye" - Councilman Frauenberger and Councilwoman Coppinger.
Voting "Nay" - Councilman Wilson and Councilman McComb.
Mayor Reid voted "aye" to break tie vote. Motion passed 3 to 2.
ORDINANCE NO. 220-4. AMENDMENT TO WATER RATE ORDINANCE:
Ordinance No. 220-4 was read in full by Councilwoman Coppinger. (Second Reading)
It was moved by Councilwoman Coppinger, seconded by Councilman Frauenberger that
Ordinance No. 220-4 be passed and approved on second and final reading as amended.
Said Ordinance reads in caption as follows:
ORDINANCE NO. 220-4
AN ORDINANCE OF THE CITY OF PEARLAND, TEXAS, AMENDING ORDINANCE
NO. 220, AND REPEALING ORDINANCE NO. 220-3, HERETOFORE ADOPTED
BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, WITH REF-
ERENCE TO THE RATES FOR WATER SERVICE, AND AMENDING ORDINANCE
NO. 220 BY THE PROVISIONS HEREOF AND REVOKING ALL ORDINANCES IN
CONFLICT HEREWITH.
Voting "Aye" - Councilman Wilson, Councilman McComb, Councilwoman Coppinger,
and Councilman Frauenberger.
Voting "Nay" - None Motion passed 4 to 0.
ORDINANCE NO. 221-B, AN ORDINANCE REPEALING SECTIONS 24-14 THROUGH 24-27, ARTICLE
II, CHAPTER 24 OF THE CODE OF ORDINANCES - STYLED POLICE RESERVE UNIT:
Ordinance No. 221-B was read in caption by Councilman McComb. (Second Reading)
It was moved by Councilman McComb, seconded by Councilman Frauenberger that
Ordinance No. 221-B be passed and approved on second and final reading. Said
Ordinance reads in caption as follows:
ORDINANCE NO. 221-B
AN ORDINANCE OF THE CITY OF PEARLAND, TEXAS, REPEALING ALL
AND SINGULAR SECTIONS 24-14 THROUGH 24-27, BOTH INCLUSIVE,
OF ARTICLE II, CHAPTER 24 OF THE CODE OF ORDINANCES OF THE
CITY OF PEARLAND, TEXAS, STYLED POLICE RESERVE UNIT; PROVIDING
AN EFFECTIVE DATE AND CONTAINING OTHER PROVISIONS RELATING
TO THE SUBJECT.
Voting "Aye" - Councilman McComb and Councilman Frauenberger.
Voting "Nay" - Councilman Wilson and Councilwoman Coppinger.
Mayor Reid voting "aye" to break tie vote. Motion passed 3 to 2.
ORDINANCE NO. 246-50, AN ORDINANCE AMENDING THE LAND USE AND URBAN DEVELOPMENT
ORDINANCE - C. H. & HELEN ALEXANDER ESTATE:
It was moved by Councilman McComb, seconded by Councilman Wilson that the tabled
motion for approval of Ordinance No. 246-50 be brought before the City Council
for consideration. Motion passed 4 to 0.
Voting on the motion for approval of Ordinance No. 246-50:
"Aye" - Councilman Wilson, Councilman McComb, Councilwoman Coppinger, and
Councilman Frauenberger.
"Nay" - None
Motion passed 4 to 0.
AWARD OF BID NO. B78-9, RESCUE TRUCK FOR FIRE DEPARTMENT:
Mayor Reid read a letter from the Pearland Volunteer Fire Department wherein they
recommended that Bid No. B78-9 be awarded to the Superior Southwest, Ltd. for one
rescue truck. The amount of the bid for this truck being $25,525.00. .The Fire
Department also requested that the motion include a provision that upon receipt of
the new truck the old truck could be sold to the highest bidder.
This equipment to be purchased out of funds in the treasury of the Pearland
Volunteer Fire Department.
It was moved by Councilman Wilson, seconded by Councilman McComb that Bid No.
B78-9 be awarded to Superior Southwest Ltd. for one 1979 Chevrolet C-30 4 x 4
Emergency One Rescue Vehicle for an amount of $25,525.00, and further, on arrival
of this new vehicle the old truck sold to the highest bidder. Motion passed
4to0.
26b
CHANGE IN ORDER OF BUSINESS:
MEETING RECESSED AT 8:50 P.M. - RECONVENED AT 9:03 P.M.
NEW BUSINESS:
REQUEST BY PEARLAND VOLUNTEER FIRE DEPARTMENT FOR FUNDS TO INSTALL CONCRETE SLABS
IN FRONT OF TWO FIRE STATIONS:
Chief Reagan of the Pearland Volunteer Fire Department had previously asked the
City Council for funds for two concrete slabs for the fire stations located on
McLean Road and Highway 518 East. The approximate cost would be $2,200.00.
It was moved by Councilman McComb, seconded by Councilman Wilson that the City
Manager be authorized to take informal bids, .and if the informal bids were under
the amount we have to legally bid, these two slabs be constructed, and the money
be paid out of the Council Contingency Fund. Motion passed 4 to 0.
CHANGE IN ORDER OF BUSINESS:
OTHER BUSINESS:
EXECUTIVE SESSION - TEXAS OPEN MEETING'S LAW, SECTION 2, SUBSECTION (e) LEGAL,
AND SECTION 2, SUBSECTION (g) PERSONNEL. 9:10 P.M.
RECONVENED TO OPEN SESSION AT 10:00 P.M.:
No action as a result of Executive Session.
Councilman Mccomb left the Council Chambers at this time and was absent for the
balance of the meeting. 10:00 P.M.
CHANGE IN ORDER OF BUSINESS:
ORDINANCE NO. 381, AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,860,000 PERMANENT
IMPROVEMENT BONDS:
Ordinance No. 381 was read in caption by Councilwoman Coppinger. (First Reading)
It was moved by Councilwoman Coppinger, seconded by Councilman Frauenberger that
Ordinance No. 381 be passed and approved on first reading. Said Ordinance reads
as follows:
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 July, 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 Frauenbe.rger.'Councilman
Harry Farley Councilman
Fran Coppinger Councilwoman
Morris S. Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present, except the following absentees: Councilman
McComb and Councilman Farley, thus constituting a quorum. Whereupon, among other
business, the following was transacted at said meeting: a written ordinance entitled:
ORDINANCE AUTHORIZING ISSUANCE OF $1,860,000
PERMANENT IMPROVEMENT 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 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:
ORDINANCE NO. 381
ORDINANCE AUTHORIZING ISSUANCE OF $1,860,000 PERMANENT
IMPROVEMENT BONDS, SERIES 1978.
THE STATE OF TEXAS
COUNTIES OF BRAZORIA AND HARRIS
CITY OF PEARLAND
WHEREAS, the bonds hereinafter authorized were duly and favorably voted at
an election held in the City on the 13th day of May, 1978; and
WHEREAS, the City Council now deems it advisable to issue, sell, and deliver
said bonds;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS
THAT:
Section 1. The City's negotiable, serial, coupon bonds to be designated
CITY OF PEARLAND, TEXAS, PERMANENT IMPROVEMENT BONDS, SERIES 1978 (hereinafter
called the "Bonds"), are hereby authorized to be issued and delivered in the
principal amount of $1,860,000 for the purpose of the CONSTRUCTION AND IMPROVEMENT
OF THE ROADS, BRIDGES, AND STREETS OF THE CITY.
Section 2. The Bonds shall be dated September 1, 1978, shall be numbered
consecutively from 1 through 372, shall be in the denomination of $5,000 each,
and shall mature serially on March 1 of each of the years, and in the amounts,
respectively, as set forth in the following schedule:
YEAR
AMOUNT
YEAR
AMOUNT
1981
$ 25,000
1990
$125,000
1982
30,000
1991
125,000
1983
50,000
1992
125,000
1984
50,000
1993
125,000
1985
50,000
1994
200,000
1986
50,000
1995
200,000
1987
30,000
1996
250,000
1988
50,000
1997
250,000
1989
125,000
The Bonds may be redeemed prior to their scheduled maturities, at the option of
the City, on the dates stated and in the manner provided in the FORM OF BOND set
forth in this ordinance.
Section 3. 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 evidenced 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 4. 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
the FORM OF BOND set forth in this ordinance.
Section S. The form of the Bonds, including the form of registration
certificate of the Comptroller of Public Accounts of the State of Texas to be
printed and endorsed on each of the Bonds, and the form of the aforesaid interest
coupons which shall appertain and be attached initially to each of the Bonds,
shall be, respectively, substantially as follows:
NO.
FORM OF BOND:
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF BRAZORIA AND HARRIS
CITY OF PEARLAND, TEXAS
PERMANENT IMPROVEMENT BOND
SERIES 1978
$5,000
ON MARCH 1, 19 , the CITY OF PEARLAND (the "City"), in the Counties of
Brazoria and Harris, in the State of Texas, promises to pay to bearer the
principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the
date hereof, at the rate of o per annum, evidenced by interest coupons
payable March 1, 1979, and semiannually thereafter on each September 1 and March 1
while this Bond is outstanding. The principal of this Bond and the interest
coupons appertaining hereto shall be payable to bearer, in lawful money of the
United States of America, without exchange or collection charges to the bearer,
upon presentation and surrender of this Bond or proper interest coupon at the
FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, which shall be the paying
agent for this series of Bonds.
THIS BOND is one of a series of negotiable, serial, coupon bonds, dated
September 1, 1978, numbered consecutively from 1 through 372, in the denomination
of $5,000 each, issued in the principal amount of $1,860,000 for the purpose of
the CONSTRUCTION AND IMPROVEMENT OF THE ROADS, BRIDGES, AND STREETS OF THE CITY,
in accordance with Chapters 1 and 7 of Title 22, Revised Civil Statutes of Texas,
as amended, and pursuant to an election held within the City on the 13th day of
May, 1978.
ON MARCH 1, 1993, OR 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 prin-
cipal amount thereof and accrued interest thereon to the date fixed for any such
redemption. At least thirty days prior to the date fixed for any such redemption,
the City shall cause a written notice of such redemption to be mailed to the bank
at which the Bonds are payable and published at least once in a financial pub-
lication published in the City of New York, New York, or in the City of Austin,
Texas. By the date fixed for any such redemption, due provision shall be made
with the paying agent for the payment of the required redemption price. If such
,..� written notice of redemption is published and if due provision for such payment is
made, all as provided above, the Bonds which are to be so redeemed thereby auto-
matically shall be redeemed prior to their scheduled maturities; and they shall
not be regarded as being outstanding except for the purpose of being paid by the
paying agent with the funds so provided for such payment.
IT IS HEREBY certified, recited, and covenanted that this Bond has been duly
and validly voted, authorized, issued, and delivered; that all acts, conditions,
and things required or proper to be performed, exist, and be done precedent to or
in the issuance and delivery of this Bond have been performed, existed, and been
done in accordance with law; and that annual ad valorem taxes sufficient to
provide for the payment of the interest on and principal of this Bond, as such
interest comes due and such principal matures, have been levied and ordered to be
levied against taxable property in the City and have been pledged for such payment
within the limits prescribed by law.
IN WITNESS WHEREOF, this Bond and the interest coupons appertaining hereto have
been signed with the facsimile signature of the Mayor and countersigned with the
facsimile signature of the City Secretary of the City, respectively, and the official
seal of the City has been duly impressed, or placed in facsimile, on this Bond.
xxxxxxxxxxxxxxxxxxxxx
COUNTERSIGNED: Mayor, CITY OF PEARLAND, TEXAS
xxxxxxxxxxxxxxxxxxxxx
!--• City Secretary, CITY OF PEARLAND, TEXAS
(SEAL)
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICATE § REGISTER NO.
I hereby certify that this Bond has been examined, certified as to validity,
and approved by the Attorney General of the State of Texas, and that this Bond
has been registered by the Comptroller of Public Accounts of the State of Texas.
WITNESS my signature and seal this
xxxxxxxxxxxxxxxxxxxx
(SEAL) Comptroller of Public Accounts of the
State of Texas
NO.
FORM OF INTEREST COUPON:
CPI
1, 19 ,
the CITY OF PEARLAND, in the Counties of Brazoria and Harris, State of Texas,
promises to pay to bearer the amount shown on this interest coupon, in lawful money
of the United States of America, without exchange or collection charges to the
bearer, unless due provision has been made for the redemption prior to maturity
of the Bond to which this coupon appertains, upon presentation and surrender of
this interest coupon, at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas,
said amount being interest due that day on the Bond bearing the number hereinafter
designated of that issue of CITY OF PEARLAND, TEXAS, PERMANENT IMPROVEMENT BONDS,
SERIES 1978, dated September 1, 1978. Bond No.
XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXX
City Secretary Mayor
Section 6. A special fund or account, to be designated the "City of Pearland,
Texas, Permanent Improvement Bonds, Series 1978, Interest and Sinking Fund"
(hereinafter called the "Interest and Sinking Fund"), is hereby created and shall
be established and maintained by the City at an official depository bank of the
City. The Interest and Sinking Fund shall be kept separate and apart from all
other funds and accounts of the City and shall be used only for paying the interest
on and principal of the Bonds. All. ad:valorem taxes levied and collected for and on
account of the Bonds shall be deposited, as collected, to the credit of the Interest
and Sinking Fund. During each year while any of the Bonds or interest coupons
appertaining thereto are outstanding and unpaid, the City Council of the City shall
compute and ascertain a rate and amount of ad valorem tax which will be sufficient
to raise and produce the money required to pay the interest on the Bonds as such
interest comes due and to provide and maintain a sinking fund adequate to pay the
principal of the Bonds as such principal matures but never less than 2% of the
original principal amount of the Bonds as a sinking fund each year; and said tax
shall be based on the latest approved.tax rolls of the City, with full allowance
being made for tax delinquencies and the cost of tax collection. Said rate and
amount of ad valorem tax are hereby levied, and are hereby ordered to be levied,
against all taxable property in the City for each year while any of the Bonds or
interest coupons appertaining thereto are outstanding and unpaid; and said tax
shall be assessed and collected each such year and deposited to the credit of the
Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the
payment of the interest on and principal of the Bonds, as such interest comes due
and such principal matures, are hereby pledged for such payment within the limits
prescribed by law.
Section 7. Immediately following delivery of the Bonds to the purchaser
thereof, the accrued interest and premium, if any, shall be deposited in the
Interest and Sinking Fund.
Section 8. 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 certificates 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.
Section 9. The Mayor of the City is hereby authorized to have control of
the Bonds and all necessary records and proceedings pertaining to the Bonds
pending their delivery and their investigation, examination, and 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 the Bonds, the
Comptroller of Public Accounts (or a deputy designated in writing to act for the
Comptroller) shall manually sign the Comptroller's Registration Certificate
prescribed herein to be printed and endorsed on each Bond; and the seal of the
Comptroller shall be impressed, or placed in facsimile, on each of the Bonds.
Section 10. 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
269
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 11. The approving opinion of Vinson $ Elkins, Houston, Texas, and
Cusip Numbers may be printed on the back of each of the Bonds, but errors or
omissions in such opinion, or errors in or omissions of such numbers, shall have
no effect on the validity of the Bonds.
Section 12. The Mayor and all other appropriate officers of the City are
hereby authorized and directed to do any and all things necessary or convenient to
carry out the provisions of this ordinance.
Section 13. This ordinance was read once by the City Council.
Section 14. The Official Notice of Sale, Official Statement and Official
Bid Form relating to the Bonds and submitted to the City Council are found to be
correct and are hereby approved.
Section 15. It is hereby officially found and determined that the need of
the City for such financing creates an emergency and an urgent public necessity
for the holding, at the scheduled time, of the meeting of the City Council at
which this ordinance is adopted and for the adoption of this ordinance; 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 24th day of July, 1978.
ATTEST:
s/Dorothy L. Cook
City Secretary, CITY OF PEARLAND, TEXAS
(SEAL)
Voting "Aye" - Councilman Frauenberger,
Wilson.
Voting "Nay" - None.
s/Tom.Reid
Mayor, CITY OF PEARLAND, TEXAS
Councilwoman Coppinger, and Councilman
Motion passed 3 to 0.
ORDINANCE NO. 381A, AN ORDINANCE AUTHORIZING THE ISSUANCE OF $2,750,000 WATERWORKS
AND SEWER SYSTEM REVENUE BONDS:
Ordinance No. 381A was read in caption by Councilman Wilson. (First Reading)
It was moved by Councilman Wilson, seconded by Councilman Frauenberger that
Ordinance No. 381A be passed and approved on first reading. Said Ordinance reads
as follows:
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 July, 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 Councilwoman
Morris S. Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present, except the following absentees: Councilman
McComb and Councilman Farley, thus constituting a quorum. Wereupon, among other
business, the following was transacted at said meeting: a written ordinance
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 Ordinance be passed; and, after due discussion, the motion, carrying with
it the passage of the Ordinance, prevailed and carried by the following vote:
ME
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:
ORDINANCE NO. 381A
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 operates 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.
Section 2.01 -
the context otherwi
respective meanings
of the bonds and of
ARTICLE II.
DEFINITIONS AND INTERPRETATIONS
Definitions. Unless otherwise expressly provided,
e requires, the terms defined in this Section shall
specified for all purposes of this Ordinance except
the interest coupons:
Additional Bonds
or unless
have the
in the form
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 Ordinance.
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 headings 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 improve-
ments 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, Vernons Texas Civil Statutes, as
amended.
Section 3.02 - Date, Numbers, Denomination and Maturities. 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 evidenced 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.
NO.
FORM OF BONDS:
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF PEARLAND, TEXAS,
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
SERIES 1978
$5,000
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, 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 lawfully adopted by the
City Council of the City of Pearland, Texas, and duly recorded in its official
minutes (the "Ordinance") 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,
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 hereof 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 insaid 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 redemption, 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.
W.
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 payable solely from and secured by the proceeds of a contract or contracts
with persons, corporations, municipal corporations, 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
pledging 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.
xxxxxxxxxxxxxxxxxxxxxxxx
COUNTERSIGNED: Mayor, City of Pearland, Texas
xxxxxxxxxxxxxxxxxxxx
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 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 finds raised or to be raised by taxation.
Bond No.
xxxxxxxxxxxxxxxxxxxxxxx
Mayor, City of Pearland, Texas
xxxxxxxxxxxxxxxxxxxxx
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 obligation 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 omissions 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 extensions 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 connection 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 irrespective
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 outstanding 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 outstanding 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
outstanding.
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 maintained 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 Additonal 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 Corporation 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 7.03 - 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 operation and maintenance, including all
salaries, labor, materials, 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 indebtedness 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 1000 of the amount required to meet the payments of
principal and interest on the Bonds that will, be payable on or before the next
January 1, together with such other amounts as may be required 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 deficiencies 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 trans-
ferred 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 $ , until such time as there is in the Reserve Fund, as a
result of such deposits and interest or investment earnings, the sum of $
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 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 $ , no further payments need be made into the
Reserve Fund. If the balance in the Reserve Fund exceeds $ (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 Reserve
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 $
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 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 $
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 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 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 required 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 Town reserves the right to issue,
from time to time, additional parity bonds in one or more installments, for
completion, repair, improvement, 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 provided
therein:
(a) The Additional Bonds are made payable on September 1 of each year;
(b) Provision 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 Additional 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 authorizing the Additional Bonds
were not less than 1.50 times the average annual principal and interest require-
ments on the Bonds and any Additional Bonds then outstanding.
(f) A certificate is executed by a registered professional engineer stating
that based upon rates and charges then in effect for services and facilities
provided by the System, he estimates that (i) during the five (5) Fiscal Years
next following the Fiscal Year during which the ordinance authorizing such
Additional Bonds is adopted, Net Revenues for each Fiscal Year will be at least
1.25 times principal and interest requirements during such Fiscal Year for all
Bonds and Additional Bonds then outstanding, including those about to be issued
and (ii) for the period beginning with the Fiscal Year next following the Fiscal
Year during which the ordinance authorizing such Additional Bonds is adopted and
ending with the Fiscal Year in which the last Bond or Additional Bond then out-
standing or about to be issued is scheduled to mature, the total future Net
Revenues will be at least 1.33 times the total future principal and interest
requirements for all Bonds and Additional Bonds then outstanding, including
those about to be issued; provided, however, that this condition may be waived
if written waivers are obtained from the bearers of at least 75% of the principal
amount of the Bonds and Additional Bonds then outstanding.
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 installments for the purchase, construction, improvement,
extension, replacement, enlargement or repair of water, sewer and/or drainage
facilities necessary under a contract or contracts with persons, corporations,
municipal corporations, 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.
am
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 requirements 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
r.., 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 provisions 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 obligations 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 contractual
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 Constitution and laws of the State of Texas and the Constitution
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 principal 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 provision 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 agreement 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 representatives 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 expeditiously 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 property be free and clear of all mechanic's and other liens or claims.
Section 9.09 - Excess Insurance Proceeds. Any insurance 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 reasonable
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 construction 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 jurisdiction 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 consideration 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, protection
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, transactions, 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 reason-
able 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 certified 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 maintenance and operations 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 tothe 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 there-
under. Furthermore, all officers, employees and agents of the City are authorized
and directed to provide certifications 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. Whenever 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 benefit 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 Publication.. 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 unconstitutional
by any court of competent jurisdiction, the remainder of this Ordinance and the
application of such work, 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 er
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
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. T
Section 14.11 - Emergency Meeting. It is hereby officially 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 24th day of July, 1978.
ATTEST:
s/Dorothy L. Cook
City Secretary, City of Pearland, Texas
(SEAL)
s/Tom Reid
Mayor, City of Pearland, Texas
Voting "Aye" - Councilman Frauenberger, Councilwoman Coppinger, and Councilman
Wilson.
Voting "Nay" - None. Motion passed 3 to 0.
Councilman Farley and Councilman McComb were absent.
RESOLUTION NO. R78-25, A RESOLUTION SUSPENDING RATES SUBMITTED BY HOUSTON
LIGHTING AND POWER COMPANY AND ANY OTHER ACTION PERTINENT TO SAID FILING:
City Attorney Bobby Williams advised the City Council that while the Houston
Lighting and Power Company was under the jurisdiction of the Texas Utility
Commission, the City of Pearland has retained its jurisdiction over the utilities,
thus the Power Company must file any proposed rate changes with the City. He
advised that the Resolution before the City Council was a 120 day extension with
possibly an additional 30 days from the date of the filing of the request for
change in rates. The Public Utility Commission will in all likelihood be the
body that will be setting the rates. The Texas Municipal League has a Staff
Attorney, Don Butler, who is automatically filing intervention action in all rate
cases filed by the various utilities throughout the State of Texas on behalf of
all Cities that belong to TML. Mr. Williams advised that it was his recommendation
that the City join in the intervention suit in behalf of all cities under the
guise of the TML. It has been the policy in the past for each city to share in
the proportionate part of the cost. Mr. Williams asked the Council's permission
to request Don Butler to place us in the position of joint intervener in the suit
filed by TML.1 A meeting is planned by the TML for July 28, 1978.
Resolution No. R78-25 was read in full by Councilman Frauenberger.
It was moved by Councilman Frauenberger, seconded by Councilwoman Coppinger that
Resolution No. R78-25 be passed and approved on first and only reading, and
that the City Manager be designated as the representative of the City at the
meeting to be held July 28, 1978, and he be authorized to engage the City of
Pearland in the intervention suit. Said Resolution reads in caption as follows:
RESOLUTION NO. R78-25
A RESOLUTION OF THE CITY OF PEARLAND, TEXAS, SUSPENDING RATE
CHANGES HERETOFORE FILED BY HOUSTON LIGHTING 4 POWER COMPANY;
PURSUANT TO SECTION 43(d) OF THE PUBLIC UTILITY REGULATORY ACT,
ARTICLE 1446C, TEXAS REVISED CIVIL STATUTES.
Voting "Aye" - Councilman Wilson, Councilwoman Coppinger, and Councilman
Frauenberger.
? ` Voting "Nay" - None. Motion passed 3 to 0.
RESOLUTION NO. R78-26, A RESOLUTION SUSPENDING RATES SUBMITTED BY COMMUNITY
PUBLIC SERVICE COMPANY:
Resolution No. R78-26 was read in full by Councilman Wilson.
City Attorney Bobby Williams explained that this was a "coattail" situation
and if Houston Lighting $ Power Company increased its rates to Community
Public Service Company then Community Public Service Company would pass this
increase to its customers.
It was moved by Councilman Wilson, seconded by Councilwoman Coppinger that
Resolution No. R78-26 be passed and approved on first and only reading. Said
Resolution reads in caption as follows:
RESOLUTION NO. R78-26
A RESOLUTION OF THE CITY OF PEARLAND, TEXAS, SUSPENDING
RATE CHARGES HERETOFORE FILED BY COMMUNITY PUBLIC SERVICE
COMPANY PURSUANT TO SECTION 43 (d) OF THE PUBLIC UTILITY
REGULATORY ACT, ARTICLE 1446C, TEXAS REVISED CIVIL STATUTES.
Voting "Aye" - Councilman Frauenberger, Councilwoman Coppinger, and Councilman
Wilson.
Voting "Nay" - None. Motion passed 3 to 0.
ACCEPTANCE OF RIGHT-OF-WAY. FROM AARON PASTERNAK:
This item to be placed on the next regular agenda.
APPOINTMENT OF AUDITOR FOR THE FISCAL YEAR SEPTEMBER 30 1978a
It was moved by Councilman Frauenberger, seconded by Councilman Wilson that the
firm of Lairson, Young & Fitch be appointed as the City's auditors for the fiscal
year ending September 30, '1978, as per the proposal submitted on July 18, 1978.
Motion passed 3 to 0.
282
REQUEST BY ASHLAND -WARREN, INC. FOR CHANGE ORDER:
City Manager Wolff advised that about two and one-half years ago we entered into
a contract with Warren Construction Company for the blacktopping of certain road-
ways in Pearland. The price of $1.63 per square yard will not hold for the work
that is to be done. We still have approximately 4,000 feet to be completed. ne
requested permission, subject to approval by the Attorney, for approval of a
Change Order based on a negotiated increase of less than 25� which is less than
the current price for such work.
It was moved by Councilwoman Coppinger, seconded by Councilman Wilson that the
Mayor sign a Change Order with the Ashland -Warren, Inc. for an increase of cost
up to $2.00 per square yard to deliver and apply hot mix asphalt to various
city streets. Motion passed 3 to 0.
RESOLUTION NO. R78-27, A RESOLUTION APPROVING CLAIMS AND AUTHORIZING ISSUANCE
OF CERTIFICATES OF OBLIGATION UNDER SERIES 1976A:
Resolution No. R78-27 was read in full by Councilwoman Coppinger.
It was moved by Councilwoman Coppinger, seconded by Councilman Frauenberger
that Resolution No. R78-27 be passed and approved on first and only reading.
Said resolution reads as follows:
THE STATE OF TEXAS 8
COUNTIES OF BRAZORIA AND HARRIS
CITY OF PEARLAND S
The City Council of the City of Pearland, Texas, convened in regular meeting,
open to the public, on the 24th day of July, 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 Councilwoman
Morris S. Wilson Councilman
Carlton McComb Councilman
Dorothy L. Cook City Secretary
and all of said persons were present, except the following absentees: Councilman
Farley and Councilman McComb, thus constituting a quorum. Whereupon, among other
business, the following was transacted at said meeting: a written resolution
entitled:
RESOLUTION APPROVING CLAIM AND AUTHORIZING THE ISSUANCE OF
CERTIFICATES OF OBLIGATION.
(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 NO. R78-27
RESOLUTION APPROVING CLAIM AND AUTHORIZING THE
ISSUANCE OF CERTIFICATES OF OBLIGATION.
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA AND HARRIS S
CITY OF PEARLAND §
WHEREAS, the City Council fo the CITY OF PEARLAND, TEXAS (the "City"), by
resolution adopted June 14, 1976, found that it was necessary and desirable for
the City to purchase materials and supplies for improving the roads, bridges
and streets of the City, to -wit: (1) base material and fill; (2) hot -mix asphalt
surfacing material; and (3) bridge construction materials and supplies, and that
certificates of obligation be issued by the City for all or any part of the cost
of same; and
WHEREAS, the City Council gave due and proper notice to bidders of the time
and place when and where a contract, or contracts, for the purchase of such
materials and supplies would be let and due and proper notice of its intention
to issue such certificates of obligation; and
WHEREAS, the City Council thereafter awarded a contract to CHENNAULT
MATERIALS, INC., Houston, Texas (the "Contractor") in the amount of $74,450.00,
as the lowest and best bid for the furnishing of the base material and fill and
the Contractor at the time of the receipt of such bid elected to assign such
certificates in payment for all or any part of the cost of the contract in
accordance with the arrangements made by the City Council; and
WHEREAS, the Contractor, as shown on a true copy of its Claim No. 4, attached
hereto as Exhibit "A" and made a part hereof as if fully written herein, has
submitted said claim for furnishing such materials and sunnlies: and
WHEREAS, the City has received the full benefits of such contract represented
by said claim to the full extent thereof and to the full extent of the certificates
of obligation hereinafter authorized to be delivered; and no person, corporation
or trust estate has given notice in writing or otherwise to the City, or to any
official thereof, of any liens for any materials, apparatus, fixtures, machinery
or labor furnished to the Contractor as provided by Chapter 17, Acts of the
Legislature of Texas, 1925 (Article 5472-a, Vernon's Texas Civil Statutes), or
any other provision.of law; and
WHEREAS, the City does not hold a claim of any kind or character which might
be properly charged or interposed as an offset or counterclaim to the payment of
the aforesaid claim; and
WHEREAS, said claim has been assigned to Pearland State Bank, Pearland,
Texas, without discount, and said bank is now the legal owner and holder thereof; and
WHEREAS, the City Council of the City wishes to approve said claim and authorize
the payment thereof by the issuance and delivery of certain of said certificates
of obligation, all as shown on said Exhibit "A" and as hereinafter set out:
CLAIMANT
AMOUNT TO BE PAID NOW
Chennault Materials, Inc. $9,000.00
AMOUNT TO BE CARRIED FORWARD
$630.20
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS
THAT:
Section 1. The matters and facts contained in the preamble of this resolution
are hereby found and declared to be true and correct.
Section 2. The claim described in the preamble of this resolution and fully
set forth in Exhibit "A" mentioned in said preamble shall be, and the same is
hereby, approved and allowed, and the City hereby acknowledges receipt of the
full benefits represented by said claim to the full extent thereof and to the full
extent of the certificates of obligation herein authorized to be delivered; and
the City hereby recognizes and approves the transfer and assignment of said claim
and account to Pearland State Bank, Pearland, Texas.
Section 3. There is now due and owing to said bank the sum of $9,000.00 and
to the Contractor the sum of $630.20.
Section 4. There shall be executed and delivered to said bank Certificates
Nos. 77 through 85, both inclusive, aggregating $9,000, of the CITY OF PEARLAND,
TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1976-A, dated July 1, 1976, and the sum
of $630.20 shall be carried forward'to the next delivery of such Certificates
to the Contractor.
Section 5. The Mayor, City Secretary, City Treasurer, and other appropriate
City officials, are hereby authorized and directed to deliver said Certificates
above mentioned and to do any and all things necessary or convenient to carry out
the terms of this resolution.
^• PASSED AND APPROVED this 24th day of July, 1978.
ATTEST:
s/Dorothy L. Cook
City Secretary, City of Pearland, Texas
(SEAL)
Claim No. 4
s/Tom Reid
Mayor, City of Pearland, Texas
EXHIBIT "A"
Dated: July 24, 1978
of Chennault Materials, Inc. (the "Contractor"), against the City of Pearland,
Texas, (the "City"), as per contract in the amount of $74,450.00, between the
City and the Contractor:
1. Total completed to date . . . . . . . . . . . . . . . . . . .$43,630.20
2. Less previous payments . . . . . . . . . . . . . . . . . . .$34,000.00
3. Current payment due . . . . . . . . . . . . . . . . . . . ..$ 9,630.20
4. Amount to be paid Contractor by issuance of Certificates
of Obligation . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,000.00
5. Carry-over to next claim . . . . . . . . . . . . . . . . . . . ..$ 630.20
The amount shown in line 3 above represents our claim against the City of
Pearland, Texas, for furnishing materials and supplies under and in conformity
with the terms and conditions of the contract described above; and $9,000.00 of
such claim has been and is hereby assigned in full, without discount, to Pearland
State Bank, Pearland, Texas.
CHENNAULT MATERIALS, INC.
By s/Norman Chennault
(Authorized Representative)
President
(SEAL) --(Title)
------------------------------------------------------------
All materials and supplies represented by the claim shown in line 3 above
are in full accordance with the terms and conditions of the contract described
above, and such claim is hereby in all things approved for payment by the City.
MALCOLM A. COLLINS, ENGINEER
By s/Malcolm A. Collins
Voting "Aye" - Councilman Frauenberger, Councilwoman Coppinger, and Councilman
Wilson.
Voting "Nay" - None. Motion passed 3 to 0.
RESOLUTION NO. R78-28, A RESOLUTION PROVIDING FOR APPROVAL OF AGREEMENT AUTHORIZING
THE MAYOR TO EXECUTE AGREEMENT WITH STATE DEPARTMENT OF HIGHWAYS FOR TRAFFIC SIGNALS
ON F.M. 518 AND GREEN TEE AND F.M. 518 AND GALVESTON AVENUE:
Resolution No. R78-28 was read in full by Councilman Wilson.
It was moved by Councilman Wilson, seconded by Councilman Frauenberger that
Resolution No. R78-28 be passed and approved on first and only reading. Said
resolution reads in caption as follows:
RESOLUTION NO. R78-28
A RESOLUTION PROVIDING FOR THE APPROVAL OF THE AGREEMENT
DATED JULY 24, 1978, BETWEEN THE STATE OF TEXAS AND THE
CITY OF PEARLAND, FOR THE INSTALLATION, CONSTRUCTION,
EXISTENCE, USE, OPERATION, AND MAINTENANCE OF HIGHWAY
SIGNAL PROJECT(S) AT THE LOCATION(S) SHOWN ON EXHIBIT 1,
ATTACHED HERETO AND MADE A PART HEREOF, IN THE CITY OF
PEARLAND; PROVIDING FOR THE EXECUTION OF SAID AGREEMENT.
Voting "Aye" - Councilman Wilson, Councilwoman Coppinger, and Councilman
Frauenberger.
Voting "Nay" - None. Motion passed 3 to 0.
RATIFICATION OF CHANGE ORDER 1,.POOL PROJECT - P.G. BELL COMPANY:
City Manager Wolff advised that on May 8, 1978 the City Council approved the
amendments to the contract with,P. G. Bell Company for a total of $39,777.00;
however, the actual Change Order as prepared by the Engineer shows the total
deductions to be $39,427.00. This $350.00 difference was brought about by the
elimination of "Change fixtures D & E to Westinghouse RMA175W." Mr. Wolff
asked the City Council to ratify the previous action by. approving this
Change Order.
It was moved by Councilwoman Coppinger, seconded by Councilman Wilson that Change
Order No. 1 P. G. Bell Company contract be ratified. Motion passed 3 to 0.
LAND USE CHANGE REQUESTS:
APPLICATION NO. 60. CITY OF PEARLAND AND APPLICATION NO. 61, GABRIEL BAIZAN, AGENT:
Mayor Reid read letters dated July 14, 1978, wherein the Planning and Zoning
Commission recommended the approval of Application 60 and 61.
r,rl
2
It was moved by Councilman Frauenberger, seconded by Councilwoman Coppinger that
Public Hearings before the City Council be set under Docketed Public Hearings of
the regular agenda on August 14, 1978. Motion passed 3 to 0.
APPLICATION NO. 62, W.E.L. HARTMAN, ET UX & APPLICATION 59 (AMENDED) E.D. LEBOUF:
It was moved by Councilman Wilson, seconded by Councilwoman Coppinger that Public
Hearings be called before the Planning and Zoning Commission of August 9, 1978 at
7:30 p.m. for Application No. 62, W.E.L. Hartman, et ux and Application no. 59
(Amended), E. D. LeBouf. Motion passed 3 to 0.
CALL OF PUBLIC HEARING ON BUDGET:
It was moved by Councilman Wilson, seconded by Councilwoman Coppinger that a
Public Hearing on the Budgets (Operating Budget and Revenue Sharing Budget) be
called for 7:30 p.m., August 9, 1978. Motion passed 3 to 0.
OTHER BUSINESS:
It was moved by Councilman Wilson, seconded by Councilwoman Coppinger that
Councilman Farley's absence from the meeting of June 26, 1978 be shown as
"excused absence". Motion passed 3 to 0.
ADJOURN:
The meeting adjourned at 10:45 P.M.
Minutes approved as submitted and/or corrected this day'
A. D., 1978.
Mayor
ATTEST:
City Secretary