HomeMy WebLinkAboutMinutes - City Council - Regular - 7/31/1935RECESSED REGULAR MEETING.
Lubbock, texas, July 31, 1935.
The city u ommission of the "ity of Lubbock, -Texas, :net at 9 A.m.
in Recessed negular jessiong Recessed f rom negular Meeting of
July 2 59 1935, at the Regular i:! eeting -Place in the City nal 1,
the following members thereof being present, to -wit:
Mayor Hoss Edwards, commissioners J.C. Royalty, J.B. Price, 1 ,j*
Richardson, Ueo E i3enson, City Attorney E.-L. Klett, amity manager
H. Rodgers and City Secretary 71.0. Stevens.
Absent: City Secretary ,U. Stevens.
Motion by Commissioner Hichardsong seconded by uomaissioner I -rice,
the follo-ing Resolution passeri, Commi ssiners Richardson, Price
120
and Royalty and I-ayor Edwards voting Aye. Uommi ssion er ueo. E*
-Benson voting No.
RESOLUTION
DIR�;CTING 'i'H�,] MAYOR TO GIVE NOTICE
OF IYTSNTIOI, TO ISSUES NATURAL G �S
SYSTEM R.nVENUE -BONDS Iiv THE AMOUNT
OF It 2009000
"'HEREAS, it is considered to be to the best interest of the Uity
of Lubbock that notice be published of the intention of the amity to
issue revenue bon,'s and let a contract for the construction of anatural
gas distribution system in said city and the laying of a suitable i3as
main pipeline to bring natural gas from a point at or near the iexas-
New Mexico state boundary line in Gaines Uounty, texas, immediately
adjacent to -ghat is commonly known as the hobbs, New Idexico Uas r'ield,
6r --rithin a point from Andreas Uounty, 'i'exas,/) to serve said distribution
system all for say. d city, under such circumstances th-�.t the contractor
Till accept revenue bonds in consideration of the services rendered by
him; and,
H+REAS, it is possible for the city to acquire such utility and
transportation pipeline Without resorting to a pledge of its taxing
rower and -i thout creating an indebtedness against the city, as is
contempl-ted by the Constitution, z-ihich restricts the incurring of
indebtedness b,T cities; and
'H=JR',PAS, it is necessary th•,t notice be pub:-ished of such intention
as is reouired by the provision of Uhapter 163, Acts of the Regular
ession of the r'orty-Second Legislature;
BE IT RESOLVPiD BY THE CITY COUI:CI� OF THE CITY OF uUB-BOCK, -i'EXAS:
1. 'i'hat the Mayor be and he is hereby instructed and directed to
have published in a newspaper of general circulation, published within
Uity of Lubbock, Texas, notice of intention, substa,ntialiy in -:cords and
figures as follo,,,rs, to --grit:
EOTIC + OF INTENTIONS TO iSSUE I:ATURLL GAS
SYST REVENUE , BO1\DS FOR 1,200,000.00.
Notice is given that on the 30th day of •august, 19359 the amity
Commission of the -ity of Lubbock, Texas, grill pass an ordinance author-
ioin,y the issugnce of its natural gas system revenue bonds in an amount
not exceeding 51,200,000. bearing interest at the rate of five and one-
#alf (52J per centum per annum, interest payable Vifelve (12) months
fro- their date and semi-annually thereafter, the maximum maturity
date not to e xceed trrenty (20) ye ,rs and with approximate serial
maturities as follows:
1937
-�309,000
1938
309,000
1939
30,000
1940
40,000
1911-1
509,000
1942
509000
1943
509,000
1944
609000
1945
609,000
1946
709000
1947
709000
1948
709,000
1949
709000
1950
7`.v00r
1951
90,000
1952
909,000
1953
90;000
1954
90,900
1955
90.000
-� 11, 200, 00 0
for the purpose of providing funds to construct and install a natural
gas distribution system in said city and a gas main pipeline thich pip; -
line shall be from a point at or near the texas -'New Mexico boundary
line in Gaines County, texas, to said city, or from a point-:,ithin
Andrews County, 'i'exas, all for said city.
S-)id revenue bonds shall be payable as to both principal and
interest from and secured by an exclusive first lien on and pledge of
the revenues of such main line gas system and distribution system.,
Defter deduction of re4sona.ble operation and maintenance expenses, end
shall be further secured by a first mortgage or deed of trust executed
by the Mayor and Commissioners of said city, conveying a trust to a
trustee the entire gas distribution system and gas main line system
27
and all properties in connection therewith, acquired or to be
acquired, including i:r,provements and extensions that may be
hereafter construct6d, and as additional security theref6r, by
the terms of such nortgage, the city will grant to the purchaser
of such system, under sale or foreclosure under such mortgage,
a franchise to ope rateAhe system and properties so purchased for
a term of not over twenty (20) years f ro4uch purchase, subject
to all laws regulating same then in force. No such obligations
shall ever be a debt of the Uity of Lubbock, Texas, but solely a
charge upon the properties so encumbered, and shall never be
recokened in determining the power of said city to issue any bonds
for any purpose authorized by la,1r; and each such bond proposed
to be issued, as aforesaid, shall contain this clause:
"The holder hereof shall never have the right to demand
payment of this obligation out of eny funds raised or
to be raised by taxation."
If at any time, before the 3Oth day of --ugust, 19359 being the
fixed date for the issuance of said bonds as aforesaid, not less.
than ten per centum (10%) of the qualified property taxpaying
voters of the city, as shown by the records in the of fice of the
City Tax collector, may file a petition in th§6ffice of the -ity
Secretary, praying the -board of Commissioners to order an election
for the purpose of sub-mitting the proposition to issue the proposed
bonds to a vote of the qualified voters; upon the filing of such
petition, the -board of Uommissioners shall, at the next meeting
thereof order an election to be held in said city to determine
whether or not said proposed bonds shall be issued; but, in the
event no such petition is filed, the -3oa.rd of -;ommissim ers shall
pass and adopt all necessary orders and resolutions authorizing
the issuance of the proposed bondsand providing for their payment,
and will execute all contr-cts or other instruments necessary to
the construction and completion of said gas system bonds.
Notice is hereby given that on the date above stated, the City
will receive bids from contractors for the construction of said
natural gas distribution system and said gas main pipeline in
accordance 7ith plans and specifications now on file in the office
of the City Secretary of the 1-i ty of Lubbock, Texas, and in the
office of 1A.R. Smith, Jr., at Lubbock, 'Texas, Engineer for the @ity
of Lubbock, 'Texas, instead of bidding in terms of cash, the
bidder will definitely state in his bid the amount of said bonds
above described for which he will construct and install said gas
system and said gas main pipeline: A sufficient number of said
'ponds ltrill be issued to cover the ount of the bid accepted.
The last remaining maturing bond will remain unissued and will be
cancelled in the event the accepted bid shall be less than the
total authorized bonds. The contractor will accompany his bid
T7ith a copy of his contract or contracts for an adequate and
continual supply of suitable natural gas to meet the requirements
of the city for at least tv:,enty (20) years, said contract or
contracts to provide for the delivery of said natural gas iiito
the city's main pipeline at or near the Texas -New Mexico State
boundary line in said uai nes county and within the btate of _texas,
or into said pipeline at a point in Andrews county, texas; and
sho-u� 4'ully the cost per thousand cubic feet of natural gas to the
city at the point of delivery, the heat content of such gas, the
pressure same ,-rill be deliver3d, the source of supply of said
gas, and the proven gas acreage reserve in connection. therewith.
Said contract or contracts shall be for the benefit of the city,
and ,will be considered in connection with the contractors bid in
passing upon the acdeptability of such bid. rill bids must be
accompanied by a certified cashier's check on Lubbock -sank in the
amount of -4&129,000.009, payable to the order of, or endorsed pay-
able to the order of the Mayor of the '-ity of . ubbock, or in
lieu thereof, accompanied by an acceptable bidder's bond in the
same sum, the form of the desired bidder's bond can be secured
from the Uity Secretary of the city of Lubbock. The contractor
,gill be required to enter into a written contr-,.ct in the form and
subject matter contained in a form contract and attached to the
plans and specifications.
The contractor will be required to use local labor as far as
possible.
1`he contractor is hereby cautioned to inspect the locat
of the proposed gas distribution system and said gas main pipe-
line on the ground and to observe any and all obstructions and
conditions undef ,which the ,-;ork must be done.
1Vo extra remuneration will be allowed beyond the lump sum bids
in bonds for the construction of the natural gas distribution system
and gas main pipeline as shown on the plans and specifications-
128
regardless of the nature of the work encountered. Compensation will
be made for additions and allowances for deductions. Said bids shall
st,te from whit point sa2'd main line is to be built to Lubbock.
Copies of plans and specifications and all requirements of
bidders may be secured from the City Secretary upon a deposit of
'1�50.00 to be returned on submission of a bona fide bid on the work.
the amity reserves the right to reject any and all bids and to waive
formalities.
Published b- order of the I-ity Uommission of the Iity of Lubbock,
Texas.
Ross Edwards _
Mayor.
Attest;
W 0 Stevens
City Secretary.
2. 'That said notice be published in the newspaper above designated,
once each week for at least two weeks, the date of the first publi-
cation to be not less than fourteen (14) days prior to the date
fixed for the passage of said ordinance and the letting of said con-
tract.
3. lhat said notice provide for the acceptance of bids on the 30th
day of August, 19359 an,) that said notice provide that the ordinance
authorizing the issu-Lnce of the revenue bonds be passed on the same
date.
4. That the Mayor and City Secretary be and they are hereby
instructed and directed to do any and all things necessary and/or
convenient to carry out the purpose of this resolution.
ADOPTED 'iND APPROVED this the 31st day of July, 1935,
Ross. Edwards
Mayor, ittyy oof ,Lubbock,
Tex!�s.
ATTEST:
0 Stevens
City S ecretary.
Approved
E L Klett _
City Attorney
No further business co-ing up for consider-ition, upon motion by
Commissioner Price, seconded by Commissioner Royalty, the -ity
Commission adjourned.
Re -id and approved this �Skie-day of
ATTEST
City Secretary.
_, 10 5.
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