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Ord. 0377 04-24-78 ORDINANCB NO. 577 ORDINANCE AUTHORIZING ISSUANCE OF $290,000 CITY 0F PEARLAN~, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1978; RATIFYING CONTRACTS; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT THE STATE OF TEXAS COUNTIES OF BRAZORIA AND HARRIS CITY OF PEARLAND WHEREAS, the City Council of the CITY OF PEARLAND, TEXAS (the "City"), authorized the publication of a notice to bidders to the effect that competitive bids would be received by the City Council on March 27, 1978, for constructing and equipping public works for the City, to-wit: (1) swimming pools and appurtenances, and (2) a municipal equipment maintenance and storage building, sometimes called a "City Service Center"; and WHEREAS, such notice was published at the times and in the manner required by the Constitutions and laws of the State of Texas and of the United States of America, respectively, par- ticularly Article 2368a.1, Vernon's Texas Civil Statutes, as amended; and WHEREAS, on the date specified in said notice the City Council caused the bids received to be opened and said bids have been tabulated and the follcwing has been determined to be the lowest and best bid: Amount Bidder of Bid P. G. Bell Company $493,300 P. O. Box 2651 Houston, Texas 77001 ~ and the City Council has heretofore determined to accept such bid and has entered into a contract pursuant thereto; and WHEREAS, it is hereby found and determined that such bid in every respect meets the specifications' mentioned in the notice to bidders; and WHEREAS, the said bidder elected at the time of the ceipt by the City Council of such bid to assign such certifi- cates without discount to the PEARLAND STATE BANK, Pearland, Texas, with whom the City Council has made provision for such assignment; and WHEREAS, no bids were received for constructing and equip- ping a municipal equipment maintenance and storage building, sometimes called a "City Service Center"; and WHEREAS, it is hereby found and determined that the City Council is authorized to proceed with the issuance of said cer- tificates of obligation in accordance with the terms and provi- sions of this ordinance; THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND THAT: Section 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2. The City Council hereby approves, ratifies and confirms in all respects the contract with P. G. Bell Company mentioned in the preamble of this ordinance. Section 3. The City's negotiable certificates of obliga- tion, to be designated CITY OF ?EARLAND, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1978 (hereinafter called the "Certificates"), are hereby authorized to be issued and delivered in the principal amount of $290,000 for the purpose of evidencing the indebtedness of the City for all or any part of the cost of constructing and equipping public works for the City, to-wit: swirmming pools and appurtenances, including the cost of professional services in connection therewith, in strict conformity with the Constitution -2- and laws of the State of Texas, particularly Article 2368a.1, Vernon's Texas Civil Statutes, as amended. Section 4. The Certificates shall be dated May 1, 1978, shall be numbered consecutively from 1 through 58, shall be in the denomination of $5,000 each and shall mature serially on February 1 of each of the years, and in the amounts, respec- tively, set forth in the following schedule: YEAR AMOUNT 1979 $15,000 1980 20,000 1981 20,000 1982 2O,OO0 1983 20,000 1984 20,000 1985 25,000 1986 30,000 1987 60,000 1988 60,000 Section 5. The Certificates shall bear interest from the date of initial delivery shown on the face of each Certificate at the rate of 5.00% per annum, interest payable on the dates indicated in the FORM OF CERTIFICATE set forth in this ordinance. Section 6. The Certificates shall be registrable both as to principal and interest, shall be payable, and shall have the characteristics, and shall be signed and executed (and the Cer- tificates shall be sealed), all as provided and in the manner indicated in the FORM OF CERTIFICATE set forth in this ordinance. Section 7. The form of Certificates, including the form of the Certificate of Registration, shall be, respectively, substantially as follows: FORM OF CERTIFICATE: NO. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF BRAZORIA AND HARRIS -3- CITY OF PEARLAND, TEXAS CERTIFICATE OF OBLIGATION · SERIES 1978 ON FEBRUARY 1, 19 , the CITY OF ?EARLAND (hereinafter called the "City"), in the Counties of Brazoria and Harris, in the State of Texas, promises to pay to bearer or, if this Cer- tificate is registered, to the registered owner hereof, the principal amount of FiVE THOUSAND DOLLARS and to pay interest thereon, FROM THE DATE OF INITIAL DELIVERY SHOWN ON THE FACE HEREOF, to bearer or, if this Certificate is registered, to the registered owner hereof, at the rate of 5.00% per annum, interest payable February 1, 1979, and semiannually thereafter on each August 1 and February I while this Certifi- cate is outstanding. Both the principal of and interest on this Certificate shall be payable, without exchange or collection charges to the owners or holders, upon presentation and, in the case of the principal when due, surrender of this Certificate at the PEARLAND STATE BANK, Pearland, Texas, which shall be the paying agent for this series of Certificates. THIS CERTIFICATE is one of a series of negotiable, regis- trable Certificates of Obligation, dated May 1, 1978, numbered from 1 through 58, in the denomination of $5,000 each, aggregating ~290,000, issued in accordance with the Constitution and laws of the State of Texas, particularly Article 2368a.1, Vernon's Texas Civil Statutes, as amended, for the purpose of evidencing the in- debtedness of the City for all or any part of the cost of con- structing and equipping public works for the City, to-wit: swimming pools and appurtenances, including the cost of profes- sional services in connection therewith, and pursuant to an -4- ordinance adopted by the City Council of the City on the 24th day of April, 1978. IT IS HEREBY certified, recited, and covenanted that this Certificate has been duly and validly authorized, issued, and de- livered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issu- ance and delivery of this Certificate, have been performed, existed, and been done in accordance with law; that annual ad valorem taxes sufficient to provide for the payment of the inter- est on and principal of this Certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City and have been pledged irrevocably for such payment within the limits prescribed by law; that this Certificate shall be a debt of the City within the meaning of Article XI, Sections 5 and 7 of the Constitution of Texas; and that, when delivered, this Certificate shall be~ deemed and construed (i) to be a "Security" within the meaning of Chapter 8, Investment Securities, Uniform Commercial Code (Chapter 785, Acts of the 60th Legislature, Regular Session, 1967), and (ii) to be a general obligation of the City within the meaning of Chapter 784, Acts of the 61st Legislature of Texas, Regular Session, 1969. THIS CERTIFICATE shall be transferable by delivery unless registered as to principal in the owner's name upon books of the City to be kept for that purpose at the offic$ of the City Secre- tary of the City, the registrar, such registration to be noted hereon. After such registration, no transfer of this Certificate shall be valid unless made on said books at the request of the registered owner hereof, or his duly authorized agent, and simi- larly noted hereon; but this Certificate may be discharged from -5- registration by being in like manner transferred to bearer, whereupon transferability by delivery shall be restored; and this Certificate may again and from time to time be registered or made payable to bearer as before. IN WITNESS WHEREOF, this Certificate of Obligation has been signed by the Mayor of the City and countersigned by the City Secretary of the City, and the official seal of the City has been duly impressed, or placed in facsimile, on this Certificate. DATE OF INITIAL DELIVERY OF THIS CERTIFICATE: XXXXXXXXXX COUNTERSIGNED: Mayor City of Pearland, Texas XXXXXXXXXX City Secretary City of Pearland, Texas (SEAL) CERTIFICATE OF REGISTRATION: IT IS HEREBY CERTIFIED that, at the request of the holder of the within Certificate, I have this day registered it as to principal in the name of such holder as indicated in the regis- tration blank below, on 'the books kept by'me for such purpose. The principal of and interest on this Certificate shall be pay- able only to the registered holder named in the below registra- tion blanks. If the last transfer recorded on the books of the Registrar and in the below registration blank shall be to bearer, the principal and interest of this Certificate ~hall be payable to bearer, and such Certificate shall be in all respects negotiable. Signature of Name of Date of .City Secretary Registered Holder Registration (Registrar) -6- Section 8. A special fund or account, to be designated the "City of Pearland, Texas, Certificates of Obligation, 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 de- pository 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 Certificates. Ail ad valorem taxes levied and collected for and on account of the Certificates shall be de- posited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Certificates are out- standing 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 Certificates as such interest comes due and to provide and maintain a sinking fund adequate to pay the principal of the Certificates as such principal matures but never less than 2% of the original principal amount of the Certificates'as a sinking fund each year; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax are hereby levied, and are hereby -7- ordered to be levied, against all taxable property in the City for each year while any of the Certificates are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the pay- ment of the interest on and principal of the Certificates, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. Section 9. Claims incurred for the purposes set forth in Section 3 hereof may be funded and exchanged for a like total principal amount of Certificates, and any amount in excess of the principal amount of Certificates authorized to be delivered at any one time may be paid in cash or carried forward to a subsequent exchange, or exchanges, of claims for Certificates. However,'none of the Certificates authorized by this ordinance shall be delivered except pursuant to a further ordinance, oS ordinances, to be adopted by this City Council. Section 10. 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 11. This ordinance shall take effect immediately upon its passage following the second and final reading thereof. Section 12. 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 ordinance is adopted and for the adoption of this ordi- nance; and the NOTICE OF MEETING ~elating to said meeting -8- and heretofore posted by the City Secretary, and the posting thereof, are hereby approved, adopted and ratified. PASSED AND APPROVED this 24th day of April, 1978. ATTEST: Mayor CITY OF PEARLAND, TEXAS ~ND,)TEXAS (SEAL) -9-