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HomeMy WebLinkAboutO-1979-768-B .' . I I . , e e ORDINANCE NO. ?t;I-Lj AN ORDINANCE CONSENTING TO THE ISSUANCE AND SALE OF BONDS BY SPENWICK PLACE MUNICIPAL UTILITY DISTRICT ' WHEREAS, Ordinance No. 768 passed and approved by the City Commission on May 1, 1967, as amended by Ordinance No. 768-A passed and approved by the City Commission on July 20,1970, among other things imposes certain conditions upon the' Bonds which may be issued and sold by certain pOlitical :subdivisions which are created within the area of the extra-territorial juri~diction of the City; and WHEREAS, Spenwick Place'Municipal Uti;Liti>District is I one of such political subdivisions created within",the area of the City's extra-territorial jurisdiction, and said District wishes to issue and sell $275,000 of its Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 1979, to the Texas Water Development Board, on terms and conditions which are not strictly in accordance with the requirements of said Ordiance; and WHEREAS, the issuance and sale of said Bonds by Spenwick Place Municipal Utility District to the Texas Water Development Board on the proposed" terms and conditions is satisfactory and in the best interest of the City; and WHEREAS, the City desires to qonsent to the issuance and sale of said Bonds; therefore BE,IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LA PORTE: Section 1. That the City of La Porte hereby consents to the issuance and sale by Spenwick Place Municipal Utility District of $275,000 'of its Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 1979, to the Texas Water Development Board upon the terms and conditions se~ forth in said District's order authorizing such Bonds passed and approved on October 8, 1979. . ~ . I ,I . -:. . ;;.' . . e . Section 2. That this Ordinance shal1 take effect and be in full force immediately upon and after its adoption. PASSED AND APPROVED on November ~ 1979. ~o;a.,~Texas ATTEST: Ci~~~rte, Texas ....'-..,~..'4:.. [SEAL] ...........: --...a. ....... APPROVED: a:;;; uI City Attorney, City of La Porte, Texas I I I . . . ORDER AUTHORIZING THE ISSUANCE AND SALE OF $275,000 WATERWORKS AND SEWER SYSTEM COMBINATION UNLIMITED TAX AND REVENUE BONDS, SERIES 1979 THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ WHEREAS, $350,000 in aggregate principal amount of the bonds of Spenwick Place Municipal Utility District, including the bonds hereinafter authorized, were duly and favorably voted, as required by and in compliance with the Constitution and laws of the State of Texas, at an election held in said District on the 9th day of December, 1967; and WHEREAS, the District has heretofore authorized and issued its Waterworks System Combination Revenue and Unlimited Tax Bonds, Series 1971, dated January 1, 1971, in the original aggregat~ principal amount of $75,000, a substan- tial part of which remains outstanding; and " WHEREAS, it is provided in said outstanding bonds, and in the proceedings authorizing the same, that the District reserves the right to issue additional bonds payable from and secured by a lien on the net revenues of the District's waterworks and sanitary sewer system on a parity in all respects with the lien on such net revenues which in part secures said outstanding bonds; and WHEREAS, in order to provide for the construction and purchase of a sanitary sewer system for the District, the Board of Directors deems it necessary and desirable to . p~oceed with the issuance and sale of bonds in the aggregate princ.ipal amount of $275,000; therefore, BE IT ORDERED BY THE BOARD OF DIRECTORS OF SPENWICK PLACE MUNICIPAL UTILITY DISTRICT THAT: Section 1. The District's coupon bonds to be designated the "SPENWICK PLACE MUNICIPAL UTILITY DISTRICT . - WATERWORKS AND SEWER SYSTEM COMBINATION UNLIMITED TAX AND I REVENUE BONDS, SERIES 1979", are hereby authorized to be issued and delivered in accordance with the Constitution and laws of the State of Texas in the principal amount of $275,000 for the purpose of purchasing and constructing a sanitary sewer system for the District, under and in strict conformity with the Constitution and laws of the State of Texas, partic- ularly Chapter 568, page 1267, Acts of the 60th Legislature of Texas~ Regular Session, 1967 (codified as Art. 8280-342, Vernon's Ann. civ. st.), and Chapter 51 of the Texas Water Code, as amended. Section 2. Said bonds shall be dated October 1, e 1979, shal1 be numbered consecutively from 1 through 55, shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on January 1 in each of the years, and in the amounts, respectively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 1981 1982 1983 1984 1985 1986 1987 1988 1989 5,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1990 1991 1992 1993 1994 1995 1996 1997 $20,000 20,000 25,000 25,000 25,000 25,000 25,000 25,000 I section 3. Said bonds shall bear interest per annum from their date until maturity at the rate of five and six-tenths percent (5.6%), with said interest to be evidenced by interest coupons payable on July 1, 1980, and semi-annually thereafter on each January 1 and July 1 until the principal sum is paid in ful1. Section 4. The principal of and interest on said bonds shall be payable to bearer, in lawful money of the United States of Am~rica, without exchange or collection charges to the bearer, upon presentation and surrender of . proper bond or interest coupon, as the case may be, at -2- , e I . . e Bayshore National Bank, LaPorte, Texas, which bank shall be the paying agent for said bonds. section 5. Each of said bonds and interest coupons shal1 be signed by the imprinted or lithographed facsimile signature of the President or Vice President of the Board of Directors of the District and countersigned by the imprinted or lithographed facsimile signature of the Secretary or the Assistant Secretary of the said Board of Directors, and the official seal of the District shall be impressed, or im- printed or lithographed on each of said bonds. Such fac- simile signatures on the bonds and interest coupons and said facsimile seal on the bonds shall have the same effect as if the President or Vice President and Secretary or Assistant Secretary had in person and manually signed each such bond and interest coupon and as if the official seal of the District had been manually impressed upon each such bond. Section 6. The form of said 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 bond, and the form of interest coupons to be attached to said bonds shall be, respectively, sub- stantially as follows: -3- , e I . NO. e e (FORM OF BOND) $5,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF HARRIS SPENWICK PLACE MUNICIPAL UTILITY DISTRICT WATERWORKS AND SEWER SYSTEM COMBINATION UNLIMITED TAX AND REVE~ BOND, SERIES 1979 On January 1, , Spenwick Place Municipal utility District, a-conservation and reclamation district, a body politic and corporate and a governmental agency under the Constitution and laws of the State of Texas, situated in the County of Harris, State of Texas, for value received, hereby promises to pay to the bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of 5.6% per annum, evidenced by inter- est coupons payable July 1, 1980, and semi-annually thereafter on January 1 and July 1 of each year while this bond is outstanding. The principal of this bond and the interest coupons attached hereto shal1 be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presenta- tion and surrender of this bond or proper interest coupon at Bayshore National Bank, LaPorte, Texas, the paying agent for this series of bonds. This bond is one of a series of coupon bonds dated October 1, 1979, issued in the principal amount of $275,000 for the purpose of purchasing and constructing a sanitary sewer system for said District, by authority of an election held on December 9, 1967, and pursuant to the Order authoriz- ing this series of bonds (herein the "Order"), all under and in strict conformity with the Constitution and laws of the State of Texas, particularly Chapter 568, page 1267, Acts of the 60th Legisla- ture of Texas, Regular Session, 1967, and Chapter 51 of the Texas Water Code, as amended. THI S BOND, AND THE OTHER BONDS OF THE SERIES OF WHICH IT IS A PART, are payable from the proceeds of an ad valorem tax upon all taxable property within the District and, together with the District's outstanding Waterworks System Combination Revenue and Tax Bonds, Series 1971, issued in the original aggregate principal amount of $75,000 (herein the "Outstanding Bonds"), are further payable from and secured by a lien on and pledge of the Net Revenues (as such term is defined in the Order) derived from the operation of the District's Waterworks and Sanitary Sewer System in the manner provided by Chapter 51, Texas Water Code. The Order contains a provision that terminates the pledge of Net -4- , e I . e - Revenues of said waterworks and sewer system to the payment of the bonds when and if any city, town, or vil1age of the state of Texas annexes the District in its entirety, dissolves the District and assumes the obligations of the District. Reference is made to the Order for a more complete description of the terms, conditions and circum- stances under and by virtue of which such pledge may be terminated, and to the other provisions of the Order to which the bearer hereof expressly consents by accepting this bond. THE DISTRICT EXPRESSLY RESERVES THE RIGHT TO ISSUE additional bonds which may be in all respects on a parity with the series of bonds of which this bond is a part and with the Outstanding Bonds. The District shall also have the right to issue bonds with liens inferior to the lien securing this bond and the Outstanding Bonds. Reference is made to the Order for a complete description of the right to issue additional bonds. It is hereby certified, recited and represented that all acts, conditions and things necessary to be done precedent to and in the issuance of this bond, and this Series of bonds, in order to render the same legal, valid and binding obligations of said District have been done, have happened, and have been performed in regular and due time, form and manner, as required by law; that due provision has been made for the payment of principal of and interest on this bond, and the Series of which it is a part, by the levy of a direct annual ad valorem tax upon all taxable property within said district sufficient for said purposes, and, in addition, by irrevocably pledging the net revenues of the District's waterworks and sanitary sewer system in the manner provided by law; and that the total indebtedness of said District, including the entire Series of bonds of which this is one, does not exceed any Constitutional or statutory limitation. IN WITNESS WHEREOF, this bond and the interest coupons attached hereto have been signed by the imprinted or lithographed facsimile signature of the President or Vice President of the Board of Directors of said District and countersigned by the imprinted or lithographed facsimile signature of the Secretary or Assistant Secretary of said Board of Directors, and the official seal of said District has been duly impressed, or printed or lithographed on this bond, all as of the 1st day of October, 1979. President, Board of Directors Spenwick Place Municipal utility District COUNTERSIGNED: Secretary, Board of Directors Spenwick Place Municipal utility District -5- I e I . e e (FORM OF REGISTRATION CERTIFICATE) COMPTROLLER'S REGISTRATION CERTIFICATE Register Number 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 Comptroller of Public Accounts of the State of Texas (FORM OF INTEREST COUPON) NO. $ On , 19 , Spenwick Place Municipal Utility District, in the-County of Harris, State of Texas, promises to pay to bearer, the above specified sum in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon at Bayshore National Bank, LaPorte, Texas, said amount being interest due that day on the bond, bearing the number hereinafter designated, of that issue of Spenwick Place Municipal Utility District Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds, Series 1979, dated October I, 1979. Bond No. President, Board of Directors Secretary, Board of Directors Section 7. As used in this Order (except in section 6, the terms listed below shall have the meanings indicated for each such term, unless otherwise expressly provided or unless the context otherwise requires: (a) "Additional Bonds" shall mean the additional bonds which the District expressly reserves the right to issue in Section 11 of this Order. -6- I e I . e e (b) "Bond" or "Bonds" shal1 mean the $275,000 of bonds authorized by this Order. (c) "Bond Fund" shall mean the interest and sinking fund which is created and established for the benefit of the holders of the Bonds and Additional Bonds in Section 8 of this Order. (d) "Net Revenues" as used herein shall exclude money derived from taxation, but shall include all gross revenues of the System less the expenses of administration, efficient operation and adequate main- tenance of the System necessary to render sufficient service. Depreciation, interest on the indebtedness of the District and payments into the Bond Fund and Reserve Account shall never be considered as expenses. (e) "Outstanding Bonds" means the District's Waterworks System Combination Revenue and Unlimited Tax Bonds, Series 1971, dated January 1, 1971, in the original aggregate principal amount of $75,000. (f) "System" shall mean the District's entire waterworks and sanitary sewer system, together with all future additions, improvements and extensions thereto and enlargements, improvements and replacements thereof, heretofore or hereafter made. Section 8. The Bonds are secured by and payable from the levy of a continuing, direct annual ad valorem tax, without limit as to rate or amount, upon all taxable property within the District and by a first lien on and pledge of the net revenues from the operation of the System as follows: (a) To pay interest on the Bonds, and to create a sinking fund for the payment of the principal thereof when due, and to pay the expenses of assessing and collecting such taxes (full allowance being made for delinquencies), there shall be levied, assessed and collected on all taxable property in the District for -7- e e I each year while any of the Bonds are outstanding, a continuing, direct annual ad valorem tax without limit as to rate or amount. All the proceeds of such collec- tions, except expenses incurred in that connection, shall be paid into the Interest and Sinking Fund, or such reserve, bond redemption or other funds as may be established by the Board of Directors of the District in accordance with this Order, and the aforementioned tax and such payments into such fund or funds shall continue until the Bonds and the interest thereon have been fully paid and discharged, and such proceeds shall be used for such purposes and no other. While the Bonds, or any of them are outstanding and unp~id, a tax each year at a rate from year to year as will be ample and sufficient to provide funds to pay the interest on the Bonds and to provide the necessary sinking fund, full allowance being made for delinquencies and costs of collection, shall be and is hereby levied and said tax shall each year be assessed and collected and applied to the payment of principal of and interest on said Bonds. (b) At such time as the net revenues transferred to the Interest and Sinking Fund, together with all amounts derived from the taxes herein levied, may have accumulated a surplus equal to the sum to be required in the succeeding year to liquidate the interest and principal of the District's obligations maturing in that year, the District's annual tax levies may be lowered to produce not less than twenty-five percent (25%) of the Bond maturities, both principal and interest, for each succeeding year, until an actual experience of three (3) successive years may demonstrate that the Net Revenues are wholly adequate to protect the maturities of the District's obligations and, at such time, the I I . -8- e e I District's tax may be wholly abated, until further experience may demonstrate the necessity again to invoke the District's taxing power in order to avoid default in the payment of the District's obligations, both principal and interest, as the same may mature. (c) The Net Revenues are hereby irrevocably pledged to the payment of the Bonds, subject to the terms and provisions hereof. The revenues hereby pledged 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 as against all parties of any kind having a claim of any kind in tort, contract, .or otherwise against the District, irrespective of whether such parties have notice thereof. (d) In the event that any city or town annexes all of the territory embraced by the District, takes over the properties and assets of the District and assumes all debts, liabilities and obligations of the District, the foregoing pledge of Net Revenues to the payment of the Bonds shall terminate at such time as such city or town assumes the debts, liabilities and obligations of the District. (e) The obligation of the District to levy a tax without limit as to rate and amount on taxable property within the District shall terminate when and if any city or town annexes the District, takes over the properties of the District and assumes the debts, liabilities and other obligations of the District, and the annexing city or town shall only be required to provide for the payment of principal and interest on the Bonds in the manner now or hereafter required by law. Nothing contained herein shall impair the rights of the holders of the Bonds to full payment of principal I I . -9- I I I . e e and interest on the Bonds and Outstanding Bonds, by requiring the levy of ad valorem taxes within the District after annexation, if necessary. section 9. For the benefit of the present and any and all subsequent holders of the Bonds or coupons thereon, and in addition to all other provisions and covenants and laws of the state of Texas, it is expressly stipulated as follows: (a) The District shall fix and maintain rates and collect charges for the facilities and services afforded by the System, which, together with the taxes provided for above, will provide revenues sufficient at all times: (i) To pay for all administration, operation and maintenance expenses of the System; (ii) To establish and maintain the Bond Fund; and (iii) To pay all outstanding indebtedness against the System, other than bonded indebted- ness, as and when such becomes due. (b) The District shall deposit as collected all revenues derived from the operation of the System into a separate account called the "System Fund" which shall be kept separate and apart from all other funds of the District. From the System Fund, the District shall pay all reasonable administration, operation and maintenance expenses of the System. After payment thereof, the District shall pay into the Bond Fund, during each year that the Bonds, Outstanding Bonds and Additional Bonds, if any, are outstanding and unpaid, an amount equal to the total amount required to meet the interest and principal payments falling due on or before the next maturity date or interest payment date of the Bonds, Outstanding Bonds and Additional Bonds, if any. said -10- e e I amount shall be paid into the Bond Fund each year in substantially equal monthly payments from the moneys in the System Fund. If the revenues of the System in any month, after providing for the administration, efficient operation and adequate maintenance of the District's facilities, are insufficient to make the required payment into the Bond Fund, then the amount of any deficiency shall be added to the amount otherwise required to be paid into the Bond Fund the next month. The moneys in the Bond Fund shall be used solely for the purpose of paying interest on and principal of the Bonds, Outstanding Bonds and Additional Bonds, if any, until all such bonds have been retired. All moneys remaining in the System Fund, after paying all reason- able administration, operation and maintenance expenses and the amounts required to be paid into the Bond Fund, may be used for any lawful purpose by the District. (c) The District shall maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost. So long as the Bonds or any part thereof are outstanding and unpaid, the District agrees to maintain insurance, for the benefit of the holder or holders of such Bonds, on the System of a kind and in an amount which usually would be carried by private companies engaged in a similar type of business. (d) The District shall keep proper books of records and accounts, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the System. Such books of records and accounts shall be audited once each fiscal year by a certified public accountant. I I . -11- I I e e (e) Any original holder of the Bonds and any holder or holders of 25% in aggregate principal amount of the Bonds, Outstanding Bonds and Additional Bonds, if any, shall have the right at all reasonable times to inspect the System and all records, accounts and data of the District relating thereto. Section 10. The District covenants, by and through this Order, as follows: (a) That it has lawful power to pledge the Net Revenues supporting the Bonds and has lawfully exercised such power under the Constitution and laws of the state of Texas, including power existing under section 51.450 et seq of the Texas Water Code, as amended; that the Bonds shall be ratably secured under said pledge of income in such manner that no bond of this Series of bonds shall have any preference over any other bond of this Series of bonds; (b) That, other than to secure payment of the Bonds and the Outstanding Bonds, the returns, revenues and income of the System have not in any way been pledged to the payment of any other debt or obligation of the District or of the System; and that the System I is free and clear of all encumbrances whatsoever, except as hereinabove stated; (c) That the Board of Directors will enact and maintain in effect an order or orders fixing a rate or . rates for water and sanitary sewer service, and' said order or orders shall contain among other provisions, a provision that the District shall not render water or sanitary sewer service without charge to any person, firm, corporation or organization whatsoever; and (d) That, while any part of the Bonds remain out- standing and unpaid, the District will not sell, assign, mortgage, lease or otherwise dispose of any property -12- I I I . e e essential to the operation of the System, but will operate and maintain the same in an efficient manner until all of the Bonds are paid. section 11. In addition to the right to issue bonds of inferior liens, the District expressly reserves the right to issue in one or more installments for the purpose of completing, repairing, improving, extending, enlarging or replacing the System all such combination unlimited tax and revenue bonds as may hereafter be authorized at subsequent elections. Such bonds may be payable from and equally secured by a pledge of and lien on the Net Revenues to the same extent as pledged for and in all things on a parity with the lien thereon securing the Bonds, the Outstanding Bonds, and any previously issued Additional Bonds. Section 12. The District further covenants and agrees that, in event of default in the payment of principal of or interest on any of the Bonds when due, or failure to make the payments required into the Bond Fund and Reserve Account or defaults in the observance or performance of any of the covenants, conditions or obligations set forth in this Order, tne holder or holders of any of the Bonds in addition to all the rights and remedies provided by the laws of the State of Texas, shall be entitled to apply for a writ of mandamus to a court of proper jurisdiction for the pur- pose of compelling and requiring the District and the offi- cials thereof to observe and perform any covenants, obliga- tions or conditions prescribed in this Order. 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 acquiescense therein, and every such right and power may be exercised from time to time as often as may be deemed expedient. The specific remedies provided herein shall be cumulative of all other existing remedies, and the specification of such remedies shall not be deemed to be exclusive. -13- , I I . e Section 13. The District hereby covenants with the purchaser and any subsequent holders of the Bonds that the District will not make any use of the proceeds of the Bonds which will cause the Bonds to be or become arbitrage bonds within the meaning of section l03(c) of the Internal Revenue Code of 1954, as amended, or any regulations promul- gated thereunder, and that the District will otherwise comply with the pertinent provisions of said section l03(c) and regulations in order that the Bonds will not be made or become arbitrage bonds thereunder. section 14. The President of the Board of Direc- tors of the District is hereby authorized and directed to submit, or cause to be submitted, the record of the. Bonds, and the Bonds, to the Attorney General of the State of Texas for examination and approval and thereafter cause the Bonds to be registered by the Comptroller of Public Accounts of the State of Texas. Upon said registration of the Bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be" printed and endorsed on each Bond, and the seal of said Comptrol1er shall be impressed or printed, or litho- graphed on each of the Bonds. The President and Secretary of the Board of Trustees and other appropriate officers of the District are hereby further authorized and directed to do any and all things necessary and/or convenient to carry out the provisions of this Order. Section 15. The Bonds shall be sold and delivered to the Texas Water Development Board (hereinafter called the "Development Board") at a price equal to the aggregate principal amount of the Bonds, and accrued interest to the date of delivery, pIus a premium of $1,288.27, and otherwise in accordance with the terms and conditions of the Develop- . ment Board's grant of financial assistance to the District -14- I t I e e for the construction of certain specified and approved sanitary sewer facilities. In accordance with the terms of such grant, the District hereby covenants and agrees, within a reasonable time after completion of such construction, (a) to submit lias built" plans of such facilities, (b) to furnish to the Development. Board a complete and accurate accounting of the total cost thereof, and, if the cost of construction of said facilities as estimated in the grant of financial assistance exceeds the actual total cost thereof, (c) to pay to the Development Board a sum of money equal to (i) the amount by which the estimated cost exceeds the actual cost, rounded down to the nearest multiple of $5,000 (hereafter called the "Excess Cost Am~unt"), plus (ii) interest on the Excess Cost Amount computed from the last interest payment date on the Bonds to the date of payment of the Excess Cost Amount calculated at the interest rate on the Bonds, upon delivery to the District of a Bond or Bonds (with all unac- crued interest coupons attached) in principal amount equal to the Excess Cost Amount. section 16. That this Order shal1 become effec- tive and be in full force upon and after its adoption, and it is so ordered. PASSED AND APPROVED this 8th day of October, 1979. President, Board of Directors Spenwick Place Municipal Utility District ATTEST: Secretary, Board of Directors Spenwick Place Municipal Utility District . (SEAL) -15-