HomeMy WebLinkAbout80-2424 ordORD!NANC~ NO. 80-2424
AN ORDINANCE by the City Council of the City of
Plainview, Texas, authorizing the issuance of
$300,000 "CITY OF PLAINI~EW, TEXAS, WATERWORKS
AND SEWER SYSTEM JbrNiOR LIEN REVENUE BONDS,
SERIES 1980", dated December I, 1980, for the
purpose of making improvements and extensions to
the City's combined Waterworks and Sanitary Sewer
System, to wit: improvenmnts to water distribution
and sewage collection facilities, as authorized by
the General Laws of the State of Texas, including
Articles 1111 et seq. and 2368a, V.A.T]C.S.;
prescribing the form of the bonds and the form of
.the interest coupons; making provision for the
payment and security of said bonds; enacting other
provisions incident and related to the subject and
purpose of this ordinance; and declaring an emergency.
WHEREAS, the City Council of the City of P!ainview, Texas,
has determined that revenue bonds in the aggregate principal
amount of $300,000 shouldi~be issued four the purpose of making
improvements and extensions to the. City's combined Waterworks
and Sanitary Sewer System, to wit: improvements to water distri-
bution and sewage collection facilities, such bonds to be payable
fromand secured by alien on and pledge of the net revenues
derived from the operation of the City's combined Waterworks and
Sanitary Sewer System; and
W~iEREAS, the City Council has further determined that
the lien on and pledge of the net revennes of the City's
combined Waterworks and Sanitary Sewer System securing the
payment of said revenue bonds shall be junior and subordinate
to the lien and pledge securing the Payment of certain revenue
bonds heretofore and hereafter issued by the City (hereinafter
-identified and defined as "priority bonds"); and
W}IEREAS, notice of this Council's intention to issue the
aforementioned revenue bonds (stating the date, time and place
the Council proposes to pass the ordinance authorizing the
issuance of said bonds, the purposes for'which said bonds are
to be issued, the maximum amount of bonds proposed to be issued,
the maximum rate of interest the proposed bonds are to bear
and the maximum maturity date thereof) has been duly published
in the Plainview Daily~Herald, a newspaper of general circulation
and published in the City on October 17, 1980 and October 24,
1980, the date of the first publication of such notice being
at least fourteen (14) days prior to the date stated therein
for the passage of this ordinance; and
WHEREAS, no petition of any kind has been filed with the
City Clerk, any member of the City Council or any other official
of the City requesting that the question of the issuance of such
revenue bonds be submitted to a referendum vote; and
WHEREAS, this City Council hereby finds and determines
that all the revenue bonds described in the aforesaid notice
should be issued and sold at this time; now, therefore,
BE IT ORDAINED BY-THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS:
-SECTION 1: That in order to borrow the sum of THREE HUNDRED
THOUS~I~D-qSOLq~[RS ($300,000) for the purpose of making improve-
ments and extensions to the City's combined Waterworks and Sanitary
Sewe~System; to wit': improvements to water distribution and
sewage collection facilities, the City Council of the City of
Plainview, Texas, acting pursuant ~o the Constitution and-laws
of the State of Texas, particularly .articles i11! et seq. and
2368a, V.A.T.C.S., has determined that there shall be and there
is hereby ordered to be issued a series of coupon bonds to be
designated "CITY OF PLAIN-VIEW, TEY~kS, WATERWORKS AND SEWER SYSTEM
JUNIOR LIEN REVENUE BONDS, SERIES 1980", in the principal sum of
THREE HUNDRED ~HOUSAND DOLLARS ($300,000).
SECTION 2: That said bonds ahall be dated December 1, 1980;
shall eac~in the denomination of Five Thousand Dollars
($5,000); shall be numbered consecutively from One (1) through
Sixty (60); and shall become due and payable serially, without
right of prior redemption, on December 1 in each of the years
and bear interest at the per annum rates in accordance with hhe
following schedule:
BOND NUMBERS
(_~All Inclusive)
INTEREST
MATURITY AMOUNT RATE
1 to 10 1981 $50,000 6.00%
1! to 20 1982 50,000 6.00%
21 to 30 1983 50,000 6.00%
31 to 40 1984 50,000 6.25%
41 to 50 1985 50,000 6.25%
51 to 60 1986 50,000 6.25%
SECTION 3: That said bonds s]halt bear interest from date-
tc ma~y at the per annum rates shown above, such interest
to be evidenced by p=oper coupons attached to each of said bonds,
and said interest shall be payable on June 1, 1981, 'and semi-
annually thereafter on December~l and June I in each year.
SECTION-4: That both principal of and interest on this
issueo~ shall be payable in lawful money of the United
States of America, without exchange or collection charges to
the owner or holder, at the HALE COUNTY STATE BANK, Piainview,
Texas, upon presentation and surrender of bonds or proper
coupons.
.SECTION 5: That the seal of said City may be impressed
on eac-~-~--~'-~d bonds or, in the alternative, a facsimile of
such seal may be printed on the said bonds. The bonds and
interest coupons appurtenant thereto may be executed by the
imprinted facsimile signatures of the Mayor and City Clerk
of the City and execution in such manner shall have the same
effect as if such bonds and coupons had been signed by the
Mayor and' City Clerk in person by their manual signatures.
Inasmuch as such bonds are required to be registered by the
Comptroller of Public Accounts of the State of Texas, only
his signature (or that a deputy designated in writing to act
for the Comptroller) shall be required to be manually
subscribed to such bonds in connection with his registration
certificate to appear thereon, as ihereinafter provided; all
in accordance with. the provisions of Article 7!7j-1, V.A.T.C.S.
SECTION 6: That the form of said bonds shall be sub-
stant~y as follows:
NO. UNITED STATES OF AMERICA $5,000
STATE OF TEXAS
COUNTY OF ~ALE
CITY OF PLAINVIEW, TEXAS, ....
WATERWORKS ;2ND SE~R SYSTEM JUNIOR LIEN
REVENUE BOND, SERIES 1980
FOR VALUE RECEIVED, the City of Plainview, a municipal
corporation of the State of Texas, hereby acknowledges itself
~indebted~to and promises to pay to bearer, without right of
prio=redemption, and as hereinafter stated, on the FIRST DAY
OF DECEMBER, 19 , the sum of
FIVE THOUSAND iDOLLARS
($5~000), in lawful money of the ~nited States of America, with
interest thereon from the date hereof to maturity at the rate
of PER CENTL~ ( %) per annum, such
interest b~ing payable on June 1, !9,g-~--~nd semiannually there-
after on December i and June I in each ye~, and evidenced by
interest coupons attached hereto.
BOTH PRINCIPAL AND INTEREST are payable only upon
presentation and surrender of this bond and. the interest coupons
hereto attached as the same severally become due at the HALE
COUNTY STATE BANK, Plainview, Texas, without .exchange or collection
charges to the owner or holder, and the bearer of this bond and
its appurtenant coupons shall be deemed the absOlute ~owner thereof
for purposes of receiving payment .and all other purposes, and
neither the City nor the aforementioned place of payment shall
be affected by any notice to. the contrary.
THIS BOND is one of a series of bonds, dated December 1, 1980,
nt~bered consecutively from One (1) through Sixty (60), each
in the denomination of Five Thousand Dollars ($5,000), aggregating
in principal amount THREE HUNDRED 'THOUSAND DOLLARs ($300,000),
issued for the purpose of making ~mprovements and extensions to
the City's combined Waterworks and Sanitary Sewer System, to wit:
improvements to water distribution and sewage collection ~
facilities, in .accordance with the Constitution and laws of the
State of Texas, particularly Article 1111 et seq. and 2368a,
V.A.T.CoS., and pursuant to an ordinance passed by th~ City
Council of the City of Plainview, 'Texas, and duly recorded in
the Minutes of said City Council.
THIS BOND and the series of Which it is a part constitute
special obligations of the City of Plainview, Texas, and are
payable solely, from and equally secured by a lien on and pledge
of the net revenues derived fromtlhe operation of the City's
combined Waterworks and Sanitary Sewer System, such lien and
pledge, however, being junior and subordinate to the lien on
and pledge of such net revenues for the payment and security
of the priority bonds (identified and defined in the ordinance
authorizing this series of bonds); and for a more complete
statement of the covenants and provisions relating to the
payment and security of the serzes of bonds of which this
bond is one, reference is hereby made to the ordinance
-authorizing this series of bonds.
THE CITY expressly reserves tlhe right to issue further
and additional special revenue obligations on a parity with
the outstanding'priority bonds and additional~revenue obligations
an. a parity with the bonds of this series; PROVIDED, HOWEVER,
that any and all such additional revenue obligations may be
so issued only in accordance with and subject to the covenants,
conditions, limitations and restrictions relating thereto
which are set out and contained in the ordinances authorizing
the issuance of the outstanding priority 5onds (for additional
parity priority bonds) and the bonds of this series (for additional
obligations'on a parity with the bonds~ of this series) and~o .which
ordinances reference is hereby made for more complete and
full particulars.
THE HOLDER hereof shall never have the right to demand
payment of this obligation out of ~any funds raised or to be
raised by taxation.
AND IT IS HEREBY CERTIFIED AND RECITED that the issuance
-~of this bond, and the series of which it is a part, is d~ly
authorized by law; tha~ all acts, conditions and things
required to exist and to be done precedent to and in the
issuance of this bond to render the same lawful and valid
havebeen properly done, have happened and have been performed
in regular, and due time, form and manner as required by the
Constitution and laws of the State of Texas, and the ordinance
hereinabove mentioned; that this series of revenue bonds
does not exceed any constitutional or statutory limitation;
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 irrevocably 'pledging the net revenues
of the combined Waterworks and Sanitary Sewer System of the
City of Plainview, Texas, as hereinabove recited.
IN TESTIMONY WHEREOF, the City Council of the City of
Plainview, Texas, in accordance with the provisions of
Article 717j-1, V.A.T.C.S., has caused the seal of said City
to be impressed or a facsimile thereof to be printed hereon,
and this bond and its appurtenant coupons to be executed
with the imprinted'facsimile signa'tures of the Mayor and
City Clerk of said City.
COUNTERSIGNED:
Mayo'r, City of Plainview, Texas
~.ty Clerk; CitY of Plainview, T&'xas
SECTION 7: That the form of said interest coupons
shall-B-~subs~antially as follows:
NO. ON THE FIRST DAY OF $
the CITY OF pLAINVIEW, a m,u/~icipal corporation in the County of
Hale~, State of Texas, hereby promises to pay to bearer the amount
shown' hereon, out of funds specified in the bond to which
this coupon is attached (without right to demand payment out
of any funds raised or to be raised by taxation), in lawful
money of the United States of America, upon presentation and
Surrender of this coupon, at the HALE COUNTY STATE BANK, Plainview,
Texas, without exchange or collection charges, such amount
· being interest due on such date on. "CITY OF PLAINVIEW, TEXAS,
WATERWORKS AND SEWER SYSTEM'JUNIOR LIEN P~VENUE BOND, SERIES
1980", dated December 1, 1980. Bond No.
~Ity Clerk
Mayor'
SECTION 8: That substantially' the following 'shall be
printe~n the back of each bond:
~?FICE OF COMPTROLLER
STATE OF TEXAS
REGISTER NO.
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, and that he finds that it has been
issued in. conformity with the Constitution and laws of the
State of Texas, and that it is a valid and binding special
obligation of the City of Plainview, Texas, payable from the
revenues pledged to its payment by and in the ordinance
authorizing same, and said bond has this day been registered
by me.
WIT~SS MY HAND AND SEAL OF OFFICE, at Austin, Texas,
Comptroll&r 6f"'Public Accounts
of the State of Texas
SECTION 9: That for all purposes of this ordinance and
~ pa~for clarity with respect to the issuance of
the bonds herein authorized and the pledge and appropriation
of revenues therefor, the following definitions are provided:
(a) Th~ term "System', shall mean the City's combined
Waterworks and Sanitary Sewer~System,~ including all
present and future extensions, additions, replacements
and improvements thereto.
(b) The term "net revenues" shall mean the gross
revenues of the System less the expense of operation
and maintenance, including all salaries, labor, materials,
repairs and extensions necessary to render efficient
service, provided, however, that only such repairs and
extensions as in the judgment of the City Council,
reasonably and fairly exercised, are necessary to'keep
the System in operation and render adequate service to
the City and the inhabitants thereof, or such as might
be necessary to meet some physical accident or condition
which would otherwise impair any bonds payable from and
secured by a lien on and pledge of the net revenues of
the System, shall be deducted in determining "net
reven~es".
(c) The term "bonds" shall mean the $300,000 "CITY
OF P~LAINVIEW, TEXAS, WATERWORKS AND SEWER SYSTEM JIINIOR
LIEN REVENUE BONDS, SERIES 1980", dated December 1, 1980,
authorized by this ordinance.
(d) The term "additional bonds" shall mean the
additional revenue bonds or obligations which the City
reserves the right to issue on a parity with the bonds
in accordance with the terms and conditions set forth
in Section 18 hereof°
(e) The term "bonds similarly secured" shall mean
the bonds and additional bonds.
(f) The term "priority bonds" shall mean the
outstanding and unpaid revenue bonds of the City payable
from and secured by a first lien on and pledge of the
net revenues of the System further identified as follows:
(i) "City of Plainview, Texas, Waterworks and
Sewer System Revenue Bonds, Series 1963",
dated January 15, 1963, issued in the original
principal amount of $750,000; and
(ii) "City of Plainview, Texas, Waterworks and
Sewer System Revenue Bonds, Series 1966", dated
March 15, 1966, issued in the original principal
amount of $2,000,000;
and additional bonds and/or refunding bonds hereafter issued
on a parity thereWith in accordance with the terms and
conditions prescribed in the ordinances authorizing the-
issuance of the above described outstanding and unpaid
revenue bonds.
(g) The term "fiscal year" shall mean the twelve-
month period ending September 30th of each year; provided,
however, the City may change the fiscal year to another
--.~.period of not less than twelve (12) calendar months, but
mn no event may the fiscal year be changed more than one
time in any three calendar year period.
SECTION 10: That the City covenants that subject only
to th~edge of the net revenues of the System to the
payment and security of the priority bonds (including the
establishment and maintenance of ~he Funds and Accounts
created for the pa~nent and security of such bonds) in
accordance with the terms and prowisions of the ordinance
and proceedings pertaining to their authorization, the net
revenues of the System, with the ~mception of those in excess
of the amounts required to be deposited in the special Funds
created for the payment and security of the bonds similarly
secured~ shall be and are hereby irrevocably pledged to the
payment of principal and interest on the bonds and additional
bonds, if issued, including the establishment and maintenance
of a reserve, if required, for the bonds similarly secured
in accordance with the terms and conditions of this ordinance.
SECTION 11: That the City hereby covenants and agrees
with ~~ of the bonds that it will at all times
charge and collect for services afforded by the System rates
sufficient to pay:
(a) all operating, maintenance, depreciation,
replacement and betterment exlpenses, and other costs
incurred in the maintenance gnd operation of the System;
(b) the interest on and principal of the priority
bonds and the bonds and to establish and maintain the
special Fumds created for the payment and security of
the same;
(c) and*~other indebtedness payable from and/or secured
by a lien on the revenues of the System or the properties
of the System.
SECTION 12: That to provide for the payment and security
of th~milarly secured there is hereby created and
established a special Fund to he~?kmown as the City of
Plainview Junior Lien Revenue Bond Interest and Sinking
Fnmd, hereinafter called "Interest and Sinking Fund". This
F~md shall be deposited with the MALE COUNTY STATE BANK,
Plainview, Texas, as Trustee~of the pledged revenues, and
moneys deposited in this Fund shall be used to pay principal
of~and interest on the-bonds similarly secured when andes
the same shall become due and paya'ble.
SECTION 13: That the System shall be operated on the
basis~al year and the City hereby covenants and
agrees with the holders of the bonds that all revenues
derived from the operation of the System shall be kept
separate and apart from other funds of the City. To that
end and in accordance with the ordinances authorizing the
issuance of the priority bonds, the City further covenants
and agrees that all revenues and income of every nature
derived from the operation of the System shall be deposited
from day to day into the "City of Plainview Waterworks and
Sewer System Fund" (heretofore created and established in
connection with the issuance of priority bonds and hereinafter-
called "System Fund") to be kept separate and apart from all
other funds and accounts of the City, and all moneys deposited
therein shall be pledged, appropriated and used for the
purposes provided in said ordinances and this ordinance.
After paying all necessary and reasonable maintenance and
operation expenses of the System as set forth in Section
9(b)~hereof and making all payments into the special Funds
established for the payment and security of the priority
bonds, the net revenues remaining in said System Fund shall
be appropriated and used for the purposes hereinafter set
forth.
SECTION 14: That the City hereby covenants and agrees
to de--he Interest and Sinking Fund from the net
revenues of the System in the System Fund amounts sufficient
to pay the principal of and interest on the bonds as the
same become, due as follows:
Beginning on or before the 15th day of December,
1980, and on or before the 15th day of each following
month, an amount equal to not lesm than the sum of (i)
one-sixth (1/6) of the next semiannual installment of
interest and (ii) one-twelfth (lJ12) of the next.annual.
principal payment to become due on the bonds.
The monthly deposits to the Interest and Sinking Fund
for the payment of principal of and interest on the bonds
shall continue to bemade as hereinabove provided until such
time as (i) the total amount on deposit in the Interest and
Sinking Fund is equal to the amount required to pay all
outstanding bonds similarly secured or (ii) the bonds are no
longer outstanding, i.e., fully paid as to principal and
interest or all the bonds have been refunded~
Accrued interest and premium, if any, received from the
purchaser of the bonds, as well as any proceeds of the bonds
not required to complete the improvements and extensions to
the System, shall be deposited to the Interest and Sinking
F~md, and may be taken into consideration and reduce the
amount of the monthly deposits hereinabove provided which
would otherwise be required to be deposited in the Interest
and Sinking Fund from the net revenues of the System.
~SECTION 15: That if in any month the City shall, for
any reason, ~1 to pay into the Interest and Sinking Fund
the full amounts above stipulated, amounts equivalent to
such deficiencies shall be set apart and paid into said
Fund, i from the first available and unallocated net revenues
of the System in the following month or months and such
payments shall be in addition to the amounts hereinabove
provided to be otherwis~ paid into~ said Fund during such
month or months.
SECTION 16: That any net revenues in excess of those
requi~to'~fully establish and maintain the special Funds
created for the payment and'security of the bonds simlarly
secured may be used for the redemption of the priority
bonds, the bonds similarly secured, or maybe transfe~ed to
the general fund of the City and used for general or special
purposes; provided, however, any transfer of moneys to the
general fund of the City shall be approved by the City
Council only upon finding that such transfer of moneys will
not impair the ability of the City to make subsequent deposits
to the special Funds created for the payment and security of
the priority bonds and the bonds similarly secured.
SECTION 17: That all moneys on deposit in the special
Funds for which this ordinance makes provision (except any
portion thereof as may be at any time properly invested)
shall be secured in the manner and to the fullest extent
required by the laws of the State of Texas for the security
of public funds, and moneys in such special Fu~nds shall be
used only for the purposes permitted by this ordinance.
SECTION 18: That, in addition to the right to issue
bondso--6-~--i-nferior lien as authorized by the laws of this
State and the right to issue additional obligations on a
parity in all respects with the outstanding and unpaid
priority bonds in accordance with the terms and conditions
prescribed therefor in the ordinances authorizing the issuance
of the outstanding priority bonds, the City reserves the
right hereafter to issue additional parity obligations payable
from and equally secured by a lien. on and pledge of the net
revenues of the System in the same manner and to the same
extent as are the bonds authorized, by this ordinance, and
the bonds and additional parity obligations shall be in all
respects of equal dignity. The additional parity obligations
may be issued in one or more installments; provided, however,
that none shall be issued unless and until the following
conditions have been met:
(a) The City is not in default as to any covenant,
condition or obligation .prescribed in an ordinance
authorizing the issuance of the outstanding bonds
similarly secured or priority' bonds.
(b) 'That each of the Funds created and established
-for the payment and security of the priority bonds and
the bonds similarly secured contains the amount of
money then required to be on deposit therein.
(c) TheCity has secured from a Certified Public
Accountant or a .Licensed Public Accountant a certificate
certifying that the Net Earnings of the System for ti)
the last completed~fiscal year next preceding the passage
.of the ordinance authorizing the issuance of the additional
parity obligations or (ii) a twelve consecutive month
period ending not more than ninety (90) days prior to the
date of the passage of the ordinance authorizing the
additional .obligations are equal to not. less than one .and
one-fourth(i-I/4) times the maximum annual requirement
for the payment of principal and interest on the then
outstanding priority bonds and bonds similarly secured
after giving effect to the issuance of the additional
parity obligations being issued. As used herein, the
term"net earnings', shall mean the gross revenues of the
System after deduction of the maintenance and operating
expenses thereof, but not deducting depreciation and
other expenditures which under standard-accounting
practices, should b~ classified as capital expenditures.
(d) The ordinance authorizing the issuance of the
additional bonds provides for deposits to be made to
the Interest and Sinking Fund[ in amounts sufficient to
pay the principal of and interest on such additional
bonds as same mature.
(~) The ordinance authorizing the issuance of the
additional bonds creates, or affirms the creation of, a
separate special Fund Or Account for the accumulation and
maintenance of a reserve, amount equal to not less than the
combined average-annual principal and interest requirements
of all bonds similarly secured to be outstanding after
theissumnce~of the then proposed additional bonds, and
further provides for the acc~nnulation of the reserve amount
in such~Fund or Account within 60 calendar months from the
...date of passage of the ordinance authorizing the issuance
'~of the additional bonds. The deposits to such special
Fund or Account shall be subordinate to the deposits required
to be made to the Interest and Sinking Fund and the amount~
on deposit~ therein shall be used only to pay the current
principal of and interest on bonds similarly securedwhen
the funds on deposit in the Interest and Sinking Fund are
insufficient for such purpose.
Priority bonds and bonds similarly secured may be
refunded (pursuant to any law then available) upon such.
terms and conditions as the governing body of the City may
deem to the best interest of the City and its inhabitants,
and if less than all such outstanding revenue bonds are
refunded the proposed refunding bonds shall be considered as
"additional bonds" under the provisions of this section and
the certifications required in subdivision (c) shall give
effect to the issuance of the proposed refunding bonds (and
shall not give effect to the bonds being refunded following
their cancellation or provision being made for their payment).
SECTION 19: That the City hereby covenants and agrees
that the System shall be operated on a fiscal year basis and
shall be maintained in good condition and operated in an
efficient manner and at reasonable cost. So long as any of
the bonds are outstanding, the City agrees to maintain
insurance for the benefit of the holder or holders of the
bonds .on the System of a kind and in an amount which usually
would be carried by municipal corporations of the State of
Texas engaged in a similar type of business. Nothing in
this ordinance shall be construed as requiring the City to
expend any funds which are derived from. sources other than
the operation of the System but nothing herein shall be
construed as preventing the City from doing so.
SECTION 20: That the City~h&reby covenants and agreed
--that so~-6~g as any of the bonds or any interest, thereon
remain o~mtstanding and unpaid, it will keep and maintain a
-proper and complete system of records and accounts pertaining
to the operation of the System and its compotent parts
separate and apart from all other records and accounts of
the City in accordance with the accepted accounting practices
prescribed for municipal corporations, and complete and
correct entries-shall be made of all transactions relating
to said System, as provided by Article 1113, V.A.T.C.S. The
holder or holders of any bonds, or any duly authorized agent
or agents of such holders, shall have the right at all
reasonable times to inspect all such records, accounts and
data relating thereto and to inspect the System and all
properties comprising same. The City further agrees that as
soon as possible following the close of each fiscal year, it
will cause an audit of such books and accounts to be made by
an independent firm of Certified Public Accountants or
Licensed Public Accountants. Each such audit, in addition
to whatever othe~~ matters may be t]hought proper by~he
Accountant, shall particularly include the following:
(a)
A detailed statement of the income and expenditures of
the System for such fiscal year;
(b) A balance sheet as of the end.of such fiscal year;
(c)
The Accountant's comments regarding the manner in
which the City has carried out the requirements of
this ordinance and his recommendations for any changes,
or improvements in the operation, records'and-accounts
of the SysteM.
.... (d) A list of the insurance 'policies in force at the
end of the fiscal year on the System properties,
setting out as to each policy the amount thereof, the
-.i~'?-~'fT~!~-~-~ risk covered, the name of the insurer and the policy's
expiration date;
(e)
A list of securities which have been on deposit
as security for the money in the Interest and Sinking
Fund throughout the fiscal year, a statement of
the manner in which money in the System
Fund.has been secured in such fiscal year;
(f)
The number of properties connected with the System
and the total income fromm the System for the fiscal
year°
EXpenses incurred in making t~he audits above referred
to are to be regarded as maintenance and operating expenses
of the System and paid as such. Copies of the aforesaid
annual audit shall be immediately furnished to the Executive
Director of the Municipal Advisory CoUncil of Texas at his
office in Austin, Texas, and upon 'written request, to the
original purchaser, and any subsequent holder of the bonds.
SECTION 21: That in addition to all the rights and
remed~~ed by the laws of t~he State of Texas., the
City covenants and agrees particularly that in the event the
City (a) defaults in payments to be made to the Interest and
Sinking Fund as required by this ordinance, or (b) defaults
im the observance or performance of any other of the covenants,
conditions or obligations set forth in this ordinance, the
holder or holders of any of the bonds shall be entitled to a
writ of mandamus issued by a court of proper 'jurisdiction
compelling and requiring the City Council and other officers
'of the City to observe and perform any covenant, condition
or obligation prescribed in this bond ordinance.
No delay or omission to exercise any right or power
accruing upon any default 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 or
power may be exercised from time to time and as often as may
be deemed expedient. The specific remedies kerein provided.
$~att~be~cun~alative~_Of all other existing~remedies and the
specification of such remedies shall not be deemed to be
exclusive.
'SECTION '22: That the City hereby further covenants as
folto~-~:
(a) That it has the lawful power to pledge the
revenues supporting this issue of bonds and has lawfully
exercised said power under the Constitution and laws of
the State of Texas, including Articles 1111 et seq. and
2368a, V.A.T.C~S.; that the bonds issued hereunder, and,
the additional bonds, .when issued, shall be ratably
secured under said pledge of income in such manner that'
one bond sha~tI have no preference over any other bond
of said issues.
(b) That, other than for the payment of the
priority bonds and the bonds 'herein authorized, the net
revenues of the System have not in any manner been
pledged to the paymentof any debt or obligation of the
City or of the System.
(c~ That, so long as any of the bonds or any interest
thereon remain outstanding, tlhe City will not sell or
enc~nber the System or any s~bstantial part thereof; pro-
vided, that this covenant shall not be construed to ~
prohibit the sale of such maclkinery or other properties
or equipment which has .become obsolete or otherwise unsuited
to the efficient operation of the System; and, further,
wi'tk the exception of the additional priority,:bonds and
-:ii.~Ci. additional parity obligations expressly permitted by this'
ordinance to be issued in Section 18 hereof, it will not
encumber the net revenues of the System unless such
encumbrance is made junior and subordinate to alt of the
provisions of this ordinance.
(d) That no free service of the System will be
allowed, and should the City or any 'of its agents or
instrumentalities make use of the services and facilities
of the System, payment of the reasonable value thereof
shall be made by the City out of funds from sources
other than the revenues and income of the System.
(e) That to the extent that it legally may, the
City further covenants and agrees that, so long as any
of the bonds or any interest thereon are outstanding,
no franchise shall be granted for the installation or
operation of any competing waterworks or sanitary sewer
system other than those owned by the City, and the
operation of such systems by anyone other than the City
is hereby prohibited.
SECTION 23: nat the bonds are special obligations of
the C~e from the pledged, net revenues and the
holders thereof shall~ never have the right to demand payment
thereof out of funds raised or to be raised by taxation.
SECTION '24: 7~That each of the bonds herein authorized
shall-~6~-a-~-~-~and construed to be a "security", and as
such is negotiable instrument, within the meaning of Article
8 of the Uniform'Comercial Code.
SECTION25: That the Mayor of the City shall be and
is here-~y~rized to take and have charge of all necessary
orders and records pending investigation by the Attorney
General of the~State of Texas and shall take and have charge
and control of the bonds herein authorized pending their
approval by the Attorney General and their registration by
the Comptroller of Public Accounts.
SECTION 26: That the sale of the bonds herein authorized
to th~~UNTY STATE BANK, Plainview, Texas, at the
price of par and accrued, interest to the date of delivery is
hereby confirmed. Delivery of said bonds shall be made to
said purchaser as soon as may be after the adoption of this.
ordinance, upon payment being made therefor in accordance
with the terms of sale.
SECTION 27: That the purchasers' obligation to accept
deliv~ bonds herein authorized is subject to their
being furnished a final opinion of Messrs. DUmas, Huguenin,
Boothman and Morrow, Attorneys, Dallas, Texas, approving
such bonds as to their validity, said opinion to be dated
and delivered as of the date of delivery and payment for
such bonds, Printing of a true and correct copy of said
opinion on the reverse side of each of such bonds with
appropriate certificate pertaining thereto executed by
facsimile signature of the City Clerk is hereby approved and
authorized.
SECTION 28: That CUSIP numbers may be printed on the
bonds herein authorized. It is expressly provided, however,
that the presence or absence of CUSIP numbers on the bonds
shall be of no significance or effect as regards the legality
thereof and neither the City nor attorneys approving said
bonds as to legality are to be held responsible for CUSIP
numbers incorrectly printed on the bonds.
SECTION 29: The City hereby certifies and covenants
that ~ proceeds of the bonds are needed at this time to
finance the costs of capital improvements planned by-the
City; based on current facts, est.~mates and circumstances,
it is reasonably expected final disbursement of the bond
proceeds will occur within three years from the date of the
receipt thereof by the City; it zs not reasonably expected
that the proceeds of the bonds or moneys deposited in the
special Fund referred to therein ~for the payment and security
of the bonds will be used or invested in a manner that would
cause the bonds to be "arbitrage bonds" within the meaning
of Section 103(c) of' the %nternal Revenue Code of 1954, as
amended, or any regulations or published rulings pertaining
thereto; and save and except for t]he special Fund referred
to herein, no other funds or acco~mts have been established
or pledged for the payment of the 'bonds. Proper officers of
the City charged with the responsibility in the issuance of
the bonds are hereby authorized and directed to make, execute
and deliver certifications as to facts, estimates and circumstances
in existence as of the date of the issue of the bonds and stating
whether there are any facts, estimates or circumstances which
would materially change the City's current expectations, and
the covenants herein made and certifications herein authorized
are for the benefit of the holders of the bonds and coupons
appertaining thereto and may be relied upon by the bondholders
andbond counsel-for-the City.
SECTION 30: That the public importance of this measure
and th-~at it is to the best interest of the City to
provide funds for making improvements and extensions to the
City's combined Waterworks and Sanitary Sewer System at the
earliest possible date constitutes and creates an emergency
and an urgent public necessity requiring that any rule
~providing for-ordinances to be read more than one time or at
more than one meeting of the City Council be suspended, and
requiring that this ordinance be passed and take effect as
an emergency measure, and such rules and provisions are
accordingly suspended, and this ordinance is passed as an
emergency measure and shall take ~d have effect and be in
full force from and after its passage.
PASSED AND APPROVED, this the 13th day of November,1980.
r; City- of ~' a'inview, T~
AT~TE~T: .
City Clerk, CitY .of Plainview, Texas
(City Seal)
APPROVED:
City .ainview,
Texas