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HomeMy WebLinkAboutORD 76-120• ORDINANCE NO. 76-1a ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION WHEREAS, the City Council of the City of Beaumont, Texas, has -heretofore found and determined that it was necessary and desirable for said City to construct public works for said City, to -wit: acquiring or improving, or both, land for park purposes (Fair Park); and WHEREAS, at the time advertisement for bids was published as per paragraph (b) of Section 6, Article 2368a.1, V.T.C.S., as amended (the "Article"), there was a deficiency in needed funds to carry out and complete said improvements, as follows: and Total Project Cost, Available Funds: Proceeds from Bonds heretofore sold TOTAL Deficiency $1,000,000 $1,245,000 $1,000,000 $ 245,000 WHEREAS, since the adoption by the City Council of Ordinance No. 76-97 authorizing the giving of notice of intention to issue certificates of obligation to pay the deficiency mentioned above, this City Council has been advised, and hereby determines affir- matively, that an additional amount of $195,000 is on hand and is now available for the purposes hereinafter set forth; and WHEREAS, the City Engineers have now recommended, in view of such additional available City funds, that the following con- tracts, which now include some of the alternates specified in the notice to bidders, but which alternates were not included in the contracts they recommended as set forth in Ordinance No. 76-97: 0-76 -/moo 1P-1;2_--76 Contractor Bids Contract 1 (General Construction Proposals) Spaw-Glass, Inc. $1,162,500 Contract 4 (Division 16, Electrical) Hubbard Electric Company $ 133,319 Total all Contracts $15295,818 and WHEREAS, the total cost of the Project mentioned above is now estimated to be as follows (the original estimate of total expenses having been erroneous with respect to engineering fees): I CONSTRUCTION $1,295,819 Engineering, Contingencies, Legal and Administrative Expenses $ 144,181 Total $1,440,000 and WHEREAS, the City Council now has the following funds avail- able to pay the cost of the Project, including said alternates: Proceeds from Bonds heretofore sold $1,000,000 Other available City funds $ 1.95,000 Certificates of Obligation $ 245,000 Total $13440,000 and WHEREAS, it is to the best interest of the City to include in such construction the alternates mentioned above; and WHEREAS, the Article authorizes the City to issue and sell for cash certificates of obligation for such improvements to cover the deficiency in needed funds above mentioned, to -wit: $245,000, which amount will not exceed 25% of those funds com- mitted to such improvements at the time the aforementioned advertisement for bids was published; and -2- WHEREAS, the City Council has heretofore given due and proper notice of its intention to issue such certificates in the maximum amount of $245,000, and it is necessary that the City issue and sell for cash $245,000 in principal amount of said certificates of obligation; Therefore BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2. That for the purpose of evidencing the indebted- ness of said City for paying a part of the cost of constructing public works for said City, to -wit: acquiring or improving, or both, land for park purposes (Fair Park), there shall be issued negotiable, serial, coupon certificates of obligation of the City of Beaumont, Texas, in the principal amount of $245,000, to be known and designated as "CITY OF BEAUMONT, TEXAS, PARK SYSTEM CERTIFICATES OF OBLIGATION, SERIES 1976", in strict conformity with the Constitution and laws of the State of Texas, particu- larly Article 2368a.1, V.T.C.S., as amended, and the Home - Rule Charter of said City. Section 3. That said certificates shall be dated September 15, 1976, shall be numbered consecutively from 1 to 49, both inclusive, shall be in the denomination of $5,000 each, and shall mature serially, without option of prior redemption, on January 15 of each of the years, and in the amounts, respectively, as set forth in the following schedule: $15,000 20,000 1978/88 1989/92 Section 4. That said certificates shall bear interest at the rate of 5-1/4% per annum, evidenced by interest coupons which -3- • P 11 shall appertain to said certificates and which shall be payable on the dates indicated in the FORM OF CERTIFICATES set forth in this ordinance. Section 5. That said certificates, and the interest coupons appertaining thereto, shall be payable, shall have the character- istics, and shall be signed and executed (and said certificates shall be sealed), all as provided and in the manner indicated in the FORM OF CERTIFICATES set forth in this ordinance. Section 6. That the form of said certificates, 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 said certificates, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said certificates, shall be, respectively, substantially as follows: FORM OF CERTIFICATES: No. $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT, TEXAS PARK SYSTEM CERTIFICATE OF OBLIGATION SERIES 1976 THE CITY OF BEAUMONT, in the County of Jefferson, State of Texas, FOR VALUE RECEIVED, acknowledges itself indebted to and hereby promises to pay the bearer on the 15th day of January, 19 , the sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof at the rate of 5-1/4q per annum, interest payable July 15, 1977, and semiannually thereafter on January 15 and July 15 of each year while this -4- J6,1, _�6-_ N-6 certificate is outstanding. Both principal of and interest on this certificate 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, at The American National Bank of Beaumont, Texas, or, at -the option of the holder, at Texas Commerce Bank, National Association, Houston., Texas, which shall be the paying agents for this series of certificates. The principal hereof shall be payable only upon presentation and 0 surrender of this certificate, and interest hereon falling due on and prior to the maturity of this certificate shall be payable only upon presentation and surrender of the interest coupons attached as suchcoupons severally become due. THIS CERTIFICATE IS ONE OF A SERIES OF NEGOTIABLE, SERIAL CERTIFICATES OF OBLIGATION of like tenor and effect, except as to number and maturity, numbered consecutively from 1 to 49, both inclusive, in the denomination of $5,000 each, aggregating $245,000, and together with the other certificates of said issue, is issued for the purpose of evidencing the indebtedness of said City for paying a part of the cost of constructing public works for said City, to -wit: acquiring or improving, or both, land for park purposes (Fair Park), under and in strict conformity with the Constitution and laws of the State of Texas, including particularly Article 2368a..1, V.T.C.S., the Home -Rule Charter of said City, and pursuant to an ordinance passed by the City Council of said City, which ordinance is of record in.the official minutes of said City Council. THE DATE OF THIS CERTIFICATE, in conformity with the or- dinance above mentioned is SEPTEMBER 15, 1976. -5- A 76 IT IS HEREBY CERTIFIED, RECITED AND REPRESENTED that the issuance of this certificate and the series of certificates of which it is a part is duly authorized by law; that all acts, conditions and things required to be done precedent to and in the issuance of this certificate and the series of certificates have been properly done and performed, have happened in regular and due time, form and manner, as required by law; that due provision has been made for levying and collecting,annually by taxation amounts sufficient to provide a sinking fund for the final re- demption of said certificates at maturity and to pay the interest on this certificate as such interest comes due; that the entire issue of certificates of which this certificate is one, together with all other indebtedness of said City, is within every debt or other limit prescribed by the Constitution and laws of the State 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 said City within the meaning of Chapter 784, Acts of the 61st Legislature of Texas, Regular Session, 1969. IN TESTIMONY WHEREOF, the City Council of Beaumont, Texas, has caused the official seal of said City to be impressed, or placed in facsimile hereon, this certificate and the interest coupons appertaining hereto to be signed with the facsimile signature or subscription of the Mayor and countersigned with the facsimile signature or subscription of the City Clerk. -4-�L ad?gt I . COUNTERSIGNED: Mayo , Citj of Beaumont, Texas AZ , City,,Cl..r-k,-CGity of B ont , /Texas -6- In CQ �. FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE§ REGISTER NO. I HEREBY CERTIFY that this certificate.has been examined, certified as to validity, and approved by the Attorney General of the State of Texas and that this certificate has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts (SEAL) of the State of Texas FORM OF INTEREST COUPONS: No. ON 15., 19_, the City of Beaumont, in the County of Jefferson, in the State of Texas, hereby promises to pay to bearer, without exchange or collection charges, the amount shown on this interest coupon, in any coin or currency which, on such date is legal tender for the payment of debts due the United States of America, upon presenta- tion and surrender of this interest coupon, at The American National Bank of Beaumont, Texas, or, at the option of the holder, at Texas Commerce Bank, National Association, Houston, Texas, being interest due that date on the certificate, bearing the number hereinafter designated, of that issue of City of Beaumont, Texas, Park System Certificates of Obligation, Series 1976, dated September 15, 1976. Certificate No. May r, Ci y of Beaumont, Texas A�Lm" k/ CL�4- City Clerk, City of B4dumont, Texas -7- Section 7. That the approving opinion of Vinson, Elkins, Searls, Connally & Smith, Houston, Texas, and Cusip Numbers may be printed on the backs of the certificates., but errors or omis- sions in such opinion or errors or omissions of such numbers shall have no effect whatever on the validity of such certifi- cates. Section 8. That there is hereby created a special fund to be designated "City of Beaumont, Texas, Park System Certificates of Obligation, Series 1976, Interest and Sinking Fund," and all taxes collected for and on account of said certificates shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of said 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 said certificates as such interest comes due and to provide and maintain a sinking fund of not less than 2% of the principal amount of said certificates or not less than the amount required to pay the principal out of said tax, whichever is greater; and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delin- quencies 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 said certificates are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said certificates, as such o �z inter.est comes due and such principal matures, are hereby pledged irrevocably for such payment within the limits prescribed by law. Section 9. That the accrued interest of the proceeds of sale of said certificates shall be deposited in the City of Beaumont, Texas, Park System Certificates of Obligation, Series 1976, Interest and Sinking Fund, heretofore created for said certificates. Section 10. That the City Council certifies that based upon all facts, estimates and circumstances now known or reasonably I expected to be in existence on the date the Certificates are delivered and paid for, the City Council reasonably expects that the proceeds of the Certificates will not be used in a manner that would cause the Certificates or any portion of the Certifi- cates to be an "arbitrage certificate" under Section 103(d)(2) of the Internal Revenue Code of 1954, as amended, and the temporary and proposed regulations prescribed thereunder, including, with- out limitation, Sections 1.103-13 and 1.103-14 of the proposed regulations published in the Federal Register on May 3, 1973, May 11, 1973 and December 3, 1975 (or corresponding provisions of proposed, temporary or final regulations replacing such proposed regulations). 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 Certificates are delivered and paid for, and any such certifi- cations may be relied upon by counsel, by the owners or holders. of the Certificates, or by any person interested in the exemption of interest on the Certificates from federal income taxation. Moreover, the City Council covenants that it shall make such use of the proceeds of.the Certificates, -regulate investments of I proceeds of the Certificates, and take such other and further action as may be required so that the Certificates shall not be. "arbitrage certificates" under Section 103(d) of the Internal Revenue Code of 1954, as amended, and regulations prescribed from time to time thereunder. Section 11. That the Mayor is hereby authorized to have control of the Certificates and all necessary records and pro- ceedings pertaining to the Certificates 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 reg- istration of the Certificates, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on each of the Certificates, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of the Certificates. Section 12. That said Certificates are hereby sold and shall be delivered to Underwood, Neuhaus & Co., Inc., Houston, Texas, at a price equal to the principal amount thereof, plus accrued interest thereon from the date hereof to the date of actual delivery plus a cash premium of $-0-, and the sale of said Certificates to the named purchaser at the stated price is hereby authorized, approved, ratified and confirmed, subject to the unqualified approving opinion, as to the legality of the Certifi- cates, by the Attorney General of the State of Texas and of Vinson, Elkins, Searls, Connally & Smith, Houston, Texas, market attorneys, is hereby authorized, approved, ratified and confirmed. Section 13. That this ordinance shall take effect immediately upon its passage. -10- PASSED AND APPROVED this 12th day of October, 1976. May r, y of Beaumont, Texas ATTEST: lGt,c-e /( a. Al City C1 rk, City of Beaifmont, Texas ( SEAL) �..'