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HomeMy WebLinkAboutMinutes - City Council - Regular - 2/3/1936RECESSED R.;•:�ULAR ''.`ETIN'G---- - ----- — - -- -- _E. Lubbock, 'Texas, Feb. 3, 1936. The City Commission of the City of Lubbock, Texas, met at 1:30 P.M. in Recessed Regular Session, Recessed from Regular hifeeting of Jan. 23r-d, 1936, at the Regular Ifeetinr- Place in tre City llall, the follm,.- ing rnember�; thereof being present, to -•Tit: L_ Ma -,or Ross Ld-rards, Conr�issioners "'I'.B. Price, -u.7,. Needles, J.C. Royalty, A.J. Richardson, City Attorney J.E. Vickers, City Secretary '.0. Stevens, City I!Ianager ".I7. Rodgers. ,.,sent: Pone. Upon notion by Commissioner Richardson, seconded by Corp.missioner T<eedles, the follo,STing Resolution car­ied by Richardson, Needles, and Royalty voting .lye, Ed,,rards and Price voting No. 1Lotion carried. RE' SOLUTIOIv DIR21CTI_•:G T`•7 I AYOR T') GIVE I'OTICL+' OF I"TENTIO17 TO ISSUE NATURt1L GAS SYSTET111 REVENU_r BONDS IN THE AMOUNT OF $111200,000. NEREAS, it is considered to be to the best interest of the City of Lubbock, thit notice be published of the intention of t'r,e City to issue revenue bonds and let a contract for the construction of a natural gas distribution system in said city and the laying of a suitable gas main pipeline to bring natural gas from a point at or neal the Texas-1•;e-1T 1'eyico :Mate bo ndary line in Gaines County, 'Texas, immediately adjacent to ,ghat is commonly k;-.�,-Tn a;, the Hobbs, !dew Mexico Gas fields or -..-rithin a point from Andre-rs County, 'Texas, or any other point -here- a sufficient quantity of gas is obtainable, to ^erve said distribution system (all) for said city, under- such circumstances tho,tthe contractor ,rill accept revenue bonds in con- sideration of the services rendered by him; and, "ITEREAS, it is possible for the city to acquire such utility and transportation pipeline -without resorting to a pledge of its taxing po?er and without creating an indebtedness against the city, as is —I contemplated by the Conotitution, -,rhich restricts the incurring of indebtedness by cities; and IiL�t'�:�5, it is necessary that notice be published of such intention as is required b-r the provision of Chapter 163, Acts of the Regular Session of the Forty -Second L-gislsture: BE IT R7SOLV!4]D BY THECITY COUNCIL OF THE CITY OF LUB.BOCK, TEXAS: 1. That the hia Tor be and he is her= by inst-L.cted and directed to have published in a ne.*Tspan?r of general circulation, published within City of Lubbock, Texas, notice of intention, substantially in words and figures as follo.us, to --,.!Tit: NOTICE OF INTENTIONS TO ISSUE NalURAL GAS SYSTi1I:Kr REVENUI] BOI;DS FOR 1$192009000.00 Notice is given that on the 12th day of March, 1936, the City Commission of the City of Lubbock, Texas, will pass an ordinance authorizin,l the issuance of its natural gas system revenue bonds in an amount not exceeding 31,200,000, bearing interest at the rate of five and one-half (52) per centum per annum, interest payable twelve (1!?) months fro-m their date and semi-annually thereaftr-r, the maximum maturity date not to exceed t,­enty (20) years and -•-ith approximate serial maturities as follo-T?s: 1937 -Mv000 1938 309000 1939 309000 1940 40,000 1941 50,000 1942 509000 1043 509,000 1944 609000 1915 - 609000 1916 709000 1947 709000 1948 70,000 1949 709000 1950 70,000 1951 909000 1952 909000 1953 90,000 1954 909000 1955 90 000 • 12 2200, for the purTjose of providing funds to construct and install a natural gas distribution system in said city and a gas main pipeline which pipe- line shall extend from the City of Lubbock, Texas, to a point at or near the Texas-Ne,:, I-exico boundary line in Gaines County, 'Texas, or a point -••ithin .hndrelfs County, 'Texas. or to any other. point .,.here a sufficient cuantity of gas is obtainable to supply the needs of said city. Said revenue bonds shall be payable as to ')oth principal and interest fro:, and secured by an exclusive first lien vn and pledge of the revenues of such main line gas system and distribution system, after deduction of rP-;�sonable oper9tion and maintenance expenses, and shall be further secured by a first :mortgage or deer of trust executed b� the Mayor and Commissioners of said city, conveying in trust to a trustee the entire gas distribution system and gas main line sy-.tem and all properties in connection therer-ith, acquired or to be acquired, including improvements =ind eXtensiors -that may be hereafter constructed, and a.; additional :security ther for, by the terms of such mortgage, the city -gill grant to the rurchaser of such system, under sale or foreclosure under such mortgage, a franchise to operate the sy��tem and properties so purchased "or a term. of rot over t.,Tenty (20) years from such purchase, subject to all laws regulating same then in force. No such obligations shall ever be a: debt of the City of Lubbock, 'Texas, but solely a charge upon the properties so encumbered, ant shall never be reckoned in determining the po­- r of sa.ir� sitar to issue any bonds for any purpose authorized by la,.7; an,9 each such bend proposed to be issued, as aforesaid, shall con- tain tl�is clause: "The holder hereof shall nev?r have the right to demand payment of this obligatior out of any funds raised- or to be raised by taxation, and shall not be paid out of any other fund the City might have other than revenue derived from the Gas System only." If at any time, before the I?th day of Varch, 1936,.being the fixed date for the issuance of said bonds as aforesaid, not less than ten per centum (1010,) of the qualified property ta::paying voters of the city, as sho7-rn by the records in the office �)f the City Tax Collector, may file a petition in the office of the City Secretary, praying the Board of Corr issioners to prder an election for the purpose of subiiittinQ the proposition to issue the proposed bonds to a vote of the qualified voters; upon the filing of such petition; the Board of Commissioners sli-M, at the nest -.ieeting thereof order an election to be held in said city to dete-TTnine -•beth -r or not said pro -posed bonds shall be issued; but, in the event no such petition_ is filed, the Boa-rl of Commissioners shall pass and adopt all necessary orders and resolutions authorizing the 3.ssuance of the proposed bonds and ;providing for their Y-ay.iient, and ,-rill e,'ecute all contracts or other instf-uments necessary to the construction and completion of said gas sy tem bonds. Itiotice is given that on tl-�e date •-i-Jove stated, the City will receive bids from contractors for the construction -,f said natural gas distribution system and said gas main pipeline in accordance -ith ,�]_a,ns and s__:ecifications not,,r _on file in the office of the City Secretary of the City of Lubbock, Texan, and in the office of M.R. :3rrith, Jr., at Lubboc7�, Texas, Engineer for the City of Lubbock., Texas; instead. of bidding in terms of cash, the bidder mill definitely state in his bi-1 the amount of said bonds above described for `.vhich he -.rill c-)nstrur t and install said gas system and said gas main pipeline, �)id- on -pipeline to b2 on the unit cost per mile basis of main ;pipeline. A sufficient number of said bonds �?ill be issued to cover the amount of the bid asserted. The lac.t remaining ma.tur.- in - bond ;,rill remain unissued. and. -7ill be cancelled in t17e event the �cce�ted bid sisal]. 1?P less than the total author. authorized bonds. The contractor 'Till accompany his bid ­:ith a copy of his contract or contracts for an adequate and continual supply of suitable natural was to meet the requirements of the city for at least twenty (20) years, said contract ^r contrasts to provide for the delivery of said natural gas into the city's main pipeline -it or near the Texas- 1,e_•-iEexico State boundary line in said Gaines County and ithin the State of Texas, or into said pipeline at a point in Andrn7s County, Texas, or any other point ,�Th.ere a sufficient auantity of gas is obtain- -i.ble, and sho--T fully 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 sage krill be delivered, the source of supply of said gas, and the proven gas acre--ie reserve in connection there'?ith. Said contract or contracts shall be for the benefit of -the city, and ,-,i11 be considered in connection ---ith the contractors bid in passing upon the acceptability of such bid. yll bids Must be accompanied by a certified cashier's check on Lubbock Bank in the amount of "�-123,000. 00, rayazole to the order of, or endorsed pay-:ble to the order of the Mayor of the City of Lubbock, 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 fro:.❑ the City Secr-tart' of the Uity of �1 Q 181 Lubbock. The contr-actor grill be required to enter into a ^ritten contract in the form and subject matter contained in a form contract and atto.cred to the plans and specifications. The contractor -Till be required to use local labor as far as rrossible. The contractor is hereby cautioned to inspect the location of the pronosed gac distribution system and said gas main Pipeline on the ground and to observe any and all obstructions and conditions under *rh i c h. the .,-o rk must be done. No 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 sho--rn on the plans and. specifications re- gardlesr of the nature o- the • ork enco-untered. Compensation grill be made for additions and allovrances for deductions. Said bids shall state fro-m ^-hat point said main line is to be built to Lubbock. Copies of plans and specifications and all requirements of bidders may be secured from t'-ie City S ecretary upon a deposit of 350.00 to be returned on sub--ission of a bcr_a fide bid on the «rork. The City reserves the right to reject any and all bids and to waive formalities. Published by order of the City Commission of the City of Lubbock, le}:as. Ross Edwards 1.1a yo r. f 0 Stevens sty—e—Cr etry. 2. That said r_otice be rublished in the ne-�rspaper above designated, once each i:feek for at least two „reeks, the date of the first publi- c-,tion to be not less than fourteen (14) clays prior to the date fixed for the pass -,.re of said ordinance and the letting of said contract. 3. That said notice -provide for the acceptance of bids on the 12th da.y of March, 1936, and that said notice provide that the Ordinance authorizing the issuance of the revenue bonds be passed -,n the same date. 4. That the itlayor and. amity Secret- ry be an,? they are hereby inctrl.- ted and directed to ago any and all thi rgs necessa.r;r and/or convenient to carry out the purpose of this resolution. ADOFTTD AND API'RO'\M'D THIS THE 3rd day of February, 1936. Ross Edwards _ kTTLST° Mayor, pity of Lubbock,— — Tex -is. 0 Stevens City Secretary. Approved: `Ticker.- P Carobnll City kttorr_ey (Seal) 1;o further business coming up for consideration, the `ity commission a.d.journed. Read and approved. this y of _� _ _, �6• ATTEST: Mayor y Secretary.