HomeMy WebLinkAboutResolution - 051376I - Notice Of Sale - Electric Light And Power System Revenue Bonds - 05_13_1976JPB/nh
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{� A RESOLUTION by the City Council of the City of Lubbock, Texas re-
lating to procedures to be followed in the sale of $4, 400, 000 City of Lubbock,
s Texas, Electric Light And Power System Revenue Bonds, Series 1976; re-
solving other matters incident and related to the purpose, including the filing
of an action under the provisions of Article 717m, V. A. T. C. S.
WHEREAS, this City Council has heretofore authorized the issuance,
publication and distribution of a notice of its intention to sell $4, 400, 000 City
Of Lubbock, Texas, Electric Light and Power System Revenue Bonds, Series
j 1976, and established April 8, 1976, as the date that bids would be received
M on the sale of such bonds; and
WHEREAS, after the time this Council approved the sale of the bonds
and prior to the time established for such sale of bonds, two separate actions
or lawsuits were filed in the District Court of Lubbock County; and
WHEREAS, the pendency of such suits' even though in the opinion of this
Council and its counsel the same are without merit, would have adversely
affected the proposals which might have been submitted for such bonds in
that the City would not be in position to execute a certificate to the effect
that no litigation was pending and accordingly cancelled the scheduled sale;
and
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WHEREAS, this City Council has determined and does hereby determine i
that:
(1) It should proceed with the authorization of bonds to be known as
"City of Lubbock, Texas, Electric Light and Power System Revenue Bonds,
Series 1976" and
(2) It should prescribe the form of notice to be published in accordance
with Article VIII Section 5 of the City Charter and.the form of notice of sal,
to be distributed to proposed bidders, and
(3) It should institute an action under Article 717m, V.A. T. C. S. in
order that all matters may be disposed of; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK
Section l: That the recitals and determinations made in the preamble
hereof are found to be true and are adopted as the findings of this governing
body.
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Section 2: That the City Attorney is directed to institute and file an
appropriate action, .under the provisions of Article 717m, V.A. T. C. S.
to approve and validate the bonds now sought to be issued and obtain
appropriate relief against the institution of further suits which would or: .
might prevent the carrying out of the wishes of the electorate, all in the
manner provided by said law.
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Section 3: That this Council proposes to issue and approve a notice of
sale, which except for the date and time of sale, shall be in substantially
the following form:
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NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
The City Council of the City of Lubbock, Texas, will
receive sealed bids at the City Hall, Lubbock, Texas, until
_.M., Daylight Saving Time, ,
1976, for the following described bonds:
$4,400,000 City of Lubbock, Texas, Electric
Light and Power System Revenue Bonds, Series 1976.
Dated April 15, 1976; maturing $220,000 each
year April 15, 1978 through 1997. Denomination
$5,000. Bonds maturing 1988 through 1997
optional on April 15, 1987 or on any interest
payment date thereafter, at the price of par
and accrued interest plus a premium of 5% on
all bonds called April 15, 1987, such premium
reducing 1% for bonds called in each year there-
after until April 15, 1992, on and after which
date said bonds optional at par and accrued
interest.
Further information may be obtained from Mr. Sterling K.
Miller, Director of Finance, City of Lubbock, Texas, P. 0. Box
2000, Lubbock, Texas 79457; or from First Southwest Company,
Mercantile Bank Building, Dallas, Texas 75201, Financial Con-
sultants to the City.
City Secretary -Treasurer,
City of Lubbock, Texas
(City Seal)
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That such notice is the format of the notice which the City proposes to
use in meeting the requirement of Article VIII Section 5 of the City Charter,
in that such notice would be published (after being completed) once a week
for four consecutive weeks in the Lubbock Avalanche Journal, a newspaper
of general circulation in and published in the City of Lubbock.
That the date and time to be set in such notice for the receipt of bids
would be not less than 30 days following the date of the first publication;
that the time of day established for the sale shall be between the hours of
9 A.M. and 4 P. M. ; that the City Council proposes to convene in open
session, after notice thereof has been given in compliance with Article 6252-
17, V.A. T. C. S. for the purpose of opening and considering bids or proposals
for the purchase of such bonds.
That additionally this Council proposes to approve and cause to be
distributed an official Statement and Notice of Sale in substantially the fol-
lowing form:
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That the said documents shall be distributed to investment bankers
and others who would normally submit proposals for the purchase of bonds
of the kind and character to be offered for sale and the City proposes to
cause such distribution to be made.
Section 4: The notices herein set forth are hereby approved as to form,` -
but nothing herein shall prohibit the amendmentto such notices of sale as
would permit the bidders on such bonds to establish an interest rate or rates
that such bonds are to bear, in which event the official notice of sale
,would be amended, as to the caption shown, in the following respects:
Type of Bids and Interest Rates,.. The bonds will be sold
in one block, all or none, and no bid of less than par and
accrued interest will be considered. Bidders must specify
the rate or rates of interest the bonds will bear, but no
coupon rate in excess of 10116 will be acceptable. Coupon
rates may be in multiples of 1/8 of 11/6 or 1/20 of M. The
spread between the highest interest rate bid and the lowest
interest rate bid shall not exceed 2-21%. Within a single
maturity there shall be no graduating or declining coupons
or split rates, and no supplemental or zero coupons will
be considered. All bids must be submitted on the official
Bid Form, without alteration or interlineation.
Basis for Award... For the purpose of awarding the bonds,
the interest cost of each bid will be computed by determin-
ing, at the rate or rates specified therein, the total dollar
value of all interest on the bonds from the date thereof to
their respective maturities, and deducting therefrom the
premium bid, if any. The bonds will be awarded to the
bidder whose bid on the above computation produces the
lowest interest cost to the City. In the event of an error
in interest cost calculations, the interest rates set forth in �.
the official Bid Form will be considered as the correct bid.
with the bid form and page 1 of the official Statement changed to conform
That in the event the City subsequently elects to so proceed, with the
approval of the Court, the form of amendatory ordinance, and minutes
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pertaining thereto, which the City would subsequently adopt and now pro-
poses to adopt would be in substantially the following form:
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MINUTES PERTAINING TO PASSAGE AND ADOPTION,OF AN
ORDINANCE BY THE CITY COUNCIL OF THE CITY 6F
LUBBOCK, TEXAS, ESTABLISHING INTEREST RATES ON AND
AWARDING THE SALE OF $4,400,000 "CITY OF LUBBOCK,
TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS SERIES 1976," DATED APRIL 15, 1976.
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
ON THIS, the day of 1976, the City
Council of the City of Lubbock, Texas, convened in
session at the regular meeting place thereof in the City Hall, the
meeting being open to the public and notice of said meeting having
been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S.,
the following members being present and in attendance, to wit:
ROY BASS MAYOR
DIRK WEST MAYOR PRO TEM
CAROLYN JORDAN COUNCILWOMAN
BILL B. McALISTER COUNCILMAN
ALAN R. HENRY COUNCILMAN
and
TREVA PHILLIPS CITY SECRETARY -TREASURER
and
NnRMAN R MCC:TTT.T.CITTCH C:TTV MANACFR
MINUTES PERTAINING TO PASSAGE AND ADOPTION,OF AN
ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS, ESTABLISHING INTEREST RATES ON AND
AWARDING THE SALE OF $4,400,000 "CITY OF LUBBOCK,
TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE
BONDS SERIES 1976," DATED APRIL 15, 1976.
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
ON THIS, the day of 1976, the City
Council of the City of Lubbock, Texas, convened in
session at the regular meeting place thereof in the City Hall, the
meeting being open to the public and notice of said meeting having
been given as prescribed by Article 6252-17, Section 3A, V.A.T.C.S.,
the following members being present and in attendance, to wit:
ROY BASS MAYOR
DIRK WEST MAYOR PRO TEM
CAROLYN JORDAN COUNCILWOMAN
BILL B. McALISTER COUNCILMAN
ALAN R. HENRY COUNCILMAN
and
TREVA PHILLIPS CITY SECRETARY -TREASURER
and
NORMAN B. McCULLOUGH CITY MANAGER
also being present: and with the following absent:
, constituting a quorum; at which
time the following, among other business was transacted, to wit
Councilman introduced the following ordinance:
"AN ORDINANCE by the City Council of the City of
Lubbock, Texas, establishing interest rates on
and awarding the sale of $4,400,000 'CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 1976,' dated
April 15, 1976, and declaring an emergency."
The ordinance was read in full, and thereupon, Councilman
moved that the Charter rule prohibiting the
passage of ordinances on the day on which introduced, unless
declared an emergency measure, be suspended for the reasons set
forth and defined in the preamble thereto. The motion was
seconded by Councilman and carried by the
following vote:
No Text
AN ORDINANCE by the City Council of the City of
Lubbock, Texas, establishing interest rates on
and awarding the sale of $4,400,000 "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 1976," dated
April 15, 1976, and declaring an emergency.
WHEREAS, the City Council of the City of Lubbock, Texas,
has heretofore authorized the issuance of $4,400,000 CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS,
SERIES 1976, dated April 15, 1976, such ordinance having been
heretofore adopted on the day of 1976;
and
WHEREAS, it is now proper for this City Council to establish
interest rates on said series of bonds and to award the sale of
said bonds to the highest and best bid submitted for such bonds;
and
WHEREAS, the City Council has found and hereby declares that
there is an urgent public necessity that it proceed with the issu-
ance of such revenue bonds for the purpose of providing funds for
extending or improving, or both, the City's Electric Light and Powe
System, at the earliest possible date and that this ordinance con-
stitutes an emergency measure for the immediate preservation of the
public peace, property, health and safety of the City and its
inhabitants; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: That the ordinance heretofore adopted by the
City Council of the City of Lubbock, Texas, on the day of
1976, which ordinance authorized the issuance
of $4,400,000 CITY OF LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER
SYSTEM REVENUE BONDS, SERIES 1976, dated April 15, 1976, be and
the same is hereby amended by inserting in said SECTION 2 the
interest rate the bonds shall bear which become due and payable
serially on April 15 in each of the years in accordance with the
following schedule:
BOND NUMBERS
(All Inclusive) MATURITY AMOUNT RATE
1 to 44 1978 220,000 %
45 to 88 1979 220,000 7
89 to 132 1980 220,000
133 to 176 1981 220,000 7
177 to 220 1982 220,000
221.to 264 1983 220,000 7
265 to 308 1984 220,000
309 to 352 1985 220,000 '/
353 to 396 1986 220,000
397 to 440 1987 220,000
441 to 484 1988 220,000
(Continued on next page)
(Continued from preceding page)
BOND NUMBERS
(All Inclusive)
MATURITY
AMOUNT
RATE
485 to 528
1989
220,000
529 to 572
1990
220,000
573 to 616
1991
220,000
617 to 660
1992
220,000
661 to 704
1993
220,000
705 to 748
1994
220,000
%
749 to 792
1995
220,000
'/
793 to 836
1996
220,000
%
837 to 880
1997
220,000
%
SECTION 2: The $4,400,000 CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES 1976, dated April 15,
1976, authorized by the aforesaid ordinance passed and adopted on
the day of 1976, as amended by this order,
are hereby sold to
for cash for the par value thereof and accrued interest thereon
to date of delivery, plus a premium of $ • It is hereby
officially found, determined and declared that saidpurchasers are
the best bidders for said bonds as a result of invitations for
competitive bids.
SECTION 3: The public importance of this measure and the
fact that it is to the best interest of the City of Lubbock to
provide funds for the purpose of extending or improving, or both,
the City's Electric Light and Power System at the earliest possible
date for the immediate preservation of the public peace, property,
health and safety of the citizens of said City, constitute and
create an emergency and an urgent public necessity requiring that
this ordinance be passed to take effect as an emergency measure,
and that this ordinance is accordingly passed as an emergency
measure and shall take effect and be in force immediately from
and after its passage, and it is so ORDAINED.
PASSED AND APPROVED this the day of , 1976.
Mayor, City of Lubbock, Texas
ATTEST:
City Secretary, City of Lubbock,
Texas
(City Seal)
CERTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
§
CITY OF LUBBOCK §
I, the undersigned, City Secretary of the City of Lubbock,
Texas, DO HEREBY CERTIFY that the above and foregoing is•a true
and correct copy of an ordinance authorizing the establishment
of interest rates on and awarding the sale of $4,400,000 "CITY OF
LUBBOCK, TEXAS, ELECTRIC LIGHT AND POWER SYSTEM REVENUE BONDS,
SERIES 1976," dated April 15, 1976, (and Minutes pertaining to
its adoption), passed by the City Council of said City on the
day of 1976, which ordinance is of record
in the Minutes of said City Council.
j I FURTHER CERTIFY that the said ordinance was passed at a
meeting open to the public and notice of such meeting was given
in advance thereof in such manner as to be in compliance with the
provisions of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I have hereunto signed my name offi-
cially and affixed the seal of said City, this the day of.
1976.
City Secretary, City of Lubbock, Texas
(City Seal)
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provided that it shall be demonstrated that:
(1) The average annual debt service requirements of all bonds similarly
i secured, including the Series 1976 bonds, shall not exceed $1, 625, 000.
(2) The maximum annual principal and interest requirement of all
'bonds similarly secured, including the Series 1976 bonds, shall not exceed
$2, 815, 471. v
That in the event bids are to be received upon the basis of all bonds
bearing interest at 6-4110 (with a premium or discount allowed) then Section 2
j of the aforementioned ordinance, which awards the sale of the bonds, is
`proposed to be adopted by this governing body.
Passed by jhe;City Council this 13 day of MAY 1976,
I ROY BASS, 14AYICOR
ATTEST:
Treva Phillips, City cretary-Treasurer
APPROVED AS TO FORM:
ity`9ttorney
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