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HomeMy WebLinkAboutResolution - 020336A - Notice Of Intention To Issue Natural Gas System Revenue Bonds - 02/03/1936RESOLUTION DIRCCTING THE,MAYOR TO GIVE NOTICE OF INT =ION TO ISSUE NATURAL GAS SYSTEM RA VELTE BOLTS IN THE X.IOUNT OFX51,200,000 `.7HEREAS, it is considered to be to the best interest of the City of Lubbock that notice be published of the intention of the Uity 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 b ring natural gas from a point at or near the Texas - New Mexico State boundary line in Gaines Uounty, Texas,immediately adjacent to what is commonly known as the Hobbs, New Mexico Gas Field, or 17ithin a point from Andre-nrs County, Texas, or any other point ;here a sufficient quantity of gas is obtainable, to serve said distribution system(all)for said city, under such. circumstances that the contractor will accept revenue bonds in consideration of the services rendered by him; and, 7TEREAS, it is possible for the city to acquire such utility and transportation. pipeline -',ithout resorting to a pledge of its taxing po-?er and-Tithout creating an indebtedness against the city, as is contemplated by the Uonstitution, which restricts the incurring of indebtedness by cities; and "HER AS, it is necessary that notice be published of such intention as is required by the provision of Chapter 163, Acts of the Regular Session of the Forty -Second Legislature; BE IT RESOLVED B`7 THE CITY COUNCIL OF ITHE CITY OF LUBBOCK, TEXAS: 1. That the mayor be and he is hereby instructed and directed to have published in a ne,rspaper of general circulation, published within City of Lubbock, Texas, notice of intention, substantially in words and Pi;gures as follows, to -wit: NOTICE OF INTENTIONS TO ISSUE N:JURAL GAS SYST+DhI REV`L�,NUE BONDS FOR 19 2.00, 000.00 Notice is given that on the 12th day of Varch, 1936, the Uity Commission of the Uity of Lubbock, Texas, tjrill pass an ordinance authorizing the issuance of its natural gas system revenue bonds in an amount not Plceeding 31,200,000, bearing interest at the rate of five and one -hale (52) per centum per annum, interest payable twelve (12) months from their date and semi-annually thereafter, the maximum maturity date not to exceed tfrenty (20) years and ,xrith approximate serial maturities as follows: 1937 ?309000 1938 300000 1939 30,000 1940 409000 1941 509,000 1942 509000 1943 50,000 1944 600000 1945 609000 1946 709000 1947 709,000 1948 709000 1949 709000 1950 709000 1951 909000 1952 909000 1953 909,000 1954 909,000 1955 90,000 :1,200,000 ozo33ipA ,far the purpose of providing funds to construct and install a natural gas distribution system in said city and a gas main pipeline which pipeline shall extend from the City of Lubbock, 'Texas, to a point at or near the Texas -New Mexico boundary line in Gaines County, Texas, or a point within Andre7rrs County, Texas, or to any other point where a sufficient quantity of gas is obtainable to supply the needs of said city. Said 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, after deduction of reasonable operation and maintenance expenses, and shall be further secured by a first mortgage or deed of trust executed by the Mayor and Commissioners of said city, conveying in trust to a trustee the entire gas distribution system and gas main line system and all properties in connection therewith, acquired or to be acquired, including improvements and extensions that may be hereafter constructed, and as additional security therefor, b7 the terms of such mortgage, the city will grant to the purchaser of such system, under sale or foreclosure under such mortgage, a franchise to operate the system. and properties so purchased for a term of not over t,.,renty (20) years from such purchase, subject to all laws regulating same then in force. Po such oblig-_tions shall ever be a debt of the 1-ity of Lubbock, Texas, but solely a charge upon the properties so encumbered, and shall never be reckoned in determining the power of said city to issue any bonds for any purpose authorized by late; and each such bond proposed to be issued, as aforesaid, shall contain this clause: 'The holder hereof shall never have obligation out of any funds raised or not be paid out of any other fund the derived from the Gas aystem only." the right to demand payment of this to be raised by taxation, and shall Uity might have other than revenue If at any time, before the l2th day of March, 1936, 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 shorn by the records in the office of the pity Tax Collector, may file a petition in the office of the 'ity Secretary, praying the Board of Uommissioners to order an election for the purpose of submitting the proposition to issue the proposed bonds to a vote of the qualified voters; upon the filing of such petition, the Board of Commissioners shall, at the next meeting there- of 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 Board of Commissioners shall pass and Addpt all necessary orders and resolutions authorizing the issuance of the proposed bonds and providing for their pa,,rilent, and will execute all contracts or other instru- ments 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 dis- tribution system and said gas main pipeline in accordance -xri t'n plans and specifications no,., on file in the office of the City Secretary of the City of Lubbock, Texas, and in the office of M.R. Smith, Jr., at Lubbock, 'Texas, +,ngineer for the City of Lubbock, Texas; instead of bidding in terms of cash, the bidder vrill definitely state in his bid the amount of said bonds above described for -hick he will construct and install said gas system and said gas Vain pipeline, bids on pipeline to be submitted on the unit cost per mile basis of main pipeline. A sufficient number of said bonds Thrill be issued to cover the amount of the bid accepted. The last remaining matur- ing bond .rill remain unissued and Trill be cancelled in the event the accepted bid shall be'less than the total authorized bonds. The contractor will accompany his bid with a copy of his contract or contracts for an adequate and continual supply of suitable natural gas to meet the require— ments of the city for at least t°7:enty (20) years, said contract or contracts to provide for the delivery of said natural gas into the city's main pipe- line at or near the 'Texas 11ew Mexico State boundary line in said Gaines County and 7Tithin the State of Texas, or into said pipeline at a point in Andrews County, Texas, or any other point ,There a sufficient quantity of gas is obtainable, and. show fully the cost per thousand,cubic feet of natural gas to the pity at the point of delivery, the heat content of such gas, the pressure same will be delivered, the source of supply of said gas, and the proven gas acreage reserve in connection there—ith. 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 Acceptability of such bid. All bids must be accompanied by a certified cashier's check on Lubbock Bank in the amount of -� 12, 000.00, payable to the order of, or endorsed payable to the order of the Mayor of the Uity of Lubbock, or in lieu thereof, accompanied }b -,,r an acceptable bidder's bond in the same sum, the form of the ?desired bidder's bond can be secured from the City Secretary of the City of Lubbock. the contractor will be required to enter into a ,uritten contract in the form and subject matter contained in a form contract and attached to the plans and specifications. The contractor vrill be required to use local labor as far as possible. The contractor is hereby cautioned to inspect the location of the proposed gas distribution system and said. gas main pipeline on the ground and to observe any and all obstructions and conditions under which the trrork must be done. No extra remuneration will be alloilred 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 regardless of the nature of the ,cork encountered. Compensation will be made for additions and allowances for deductions. Said bids shall state from what point said main line is to be built to Lubbock. Copies of plans and specifications and all requirements of bidders Tray be secured from the City Secretary upon a deposit of X50.00 to be returned on submission of a bona fide bid on the work. the City reserves the right to reject any and all bids and to waive formalities. Published by order of the City Commission of the 1,ity of Lubbock, Texas. Ross Edwards _ Maycr.�� ATTJST: Ttr 0 Stevens Ci ty Secretary.M�- '- 2. That said notice be published in the newspaper above designated., once each �7eek 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 contract. 3. Tha ,s=).i notice provide for the acceptance of bids on the -Atli day of IA 0,a.nd that said notice provide that the ordinance authorizing the issuance of the revenue bonds 'te passdd on the same date. 4. That the Major 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 AND APPROVED THIS THE 3rd day TTEST: City Secretary. _roved: --- — City Atto ey. okfF:: ru y, 1 Z Mayo r, Ci ty -67 Lubb o ck, Texas.