HomeMy WebLinkAboutOrdinance - 560-1936 - Issuance Of Light Plant Revenue Amount Of $70,177.14 - 10/12/193610 -l2-L93U>
ORDINANCE NO. 560
AUTHORIZING THE ISSUANCE OF CITY OF LUBBOCK LIGHT PLANT (REFUNDING) REVENUE WARRANTS
IN THE AMOUNT OF $70,177.14, BEARING 4% INTEREST, IN LIEU OF A LIKE AMOUNT OF
LIGHT AND POWER PLANT REVENUE NOTES, AUTHORIZING THE EXCHANGE OF SAID REFUNDING
WARRANTS FOR SAID ORIGINAL NOTES, RATIFYING THE ACTION HERETOFORE TAKEN BY THE CITY
COMMISSION IN AUTHORIZING SAID ORIGINAL NOTES AND PLEDGING THE REVENUES OF SAID
ELECTRIC LIGHT AND POWER SYSTEM TO THE PAYMENT OF THE PRINCIPAL AND INTEREST OF SAID
(REFUNDING) WARRANTS AND DECLARING AN EMERGENCY.
WHEREAS, heretofore on May 29, 1935, the City Commission of the City of Lubbock
~dopted a resolution authorizing the publication of notice to bidders for the purchase of a
certain engine and equipment to be used in connection with the municipal electric light and
power plant of said City which resolution and the minutes pertaining thereto are duly recorded
in the minutes of the City Commission in Book 5 at page 112; and
WRBRIAS,p«rsuant to said resolution said notice to bidders was duly published in
accordance with law; and
WHEREAS, pursuant to said notice the City Commission did on June 14, 1935 receive bid
for said engine and equipment, the bidders baing:
Cooper-Besson, Bush-Selcer, Nordberg Mfg. Company, Fairbanks Morse Company, Fulton
Iron Works and A. M. Lockett.
;and
WHEREAS, after receiving said bide and after hearing a discussion of said bids by
the representatives of said b i dders the Commission recessed its meeting until the following day,
to-wit, June 15, 1935, all of which is reflected in the minutes of said meeting duly recorded
in Book 5, at pages 114•115: and
WHEREAS, on June 15, 1935 the City Commission having coavaned pursuant to the
action taken on the previous day did accept the bid of the Nordberg Manufacturing Company of
~ilwaukee, Wisconsin for said engine and equipment and at said meeting did authorize the Mayor
to make a contract with said Company pursuant to said bid, all of which is reflected in the
~inutes of the City Commission in Book 5 at page 115; and
WHEREAS, pursuant to the authority conferred in said meeting the Mayor executed
a contract with said Company in words and figures as follows:
CITY OF LUBBOCK
(Hereinafter called the Purchaser)
LUBB6eK, TEXAS,
'~ilwaukee, Wisconsin, U.S.A.
June 11, 1935.
Nordberg Manufacturing Company (hereinafter called the Company) proposed to furnish
the Purchaser F. 0. B. Cars, Lubbock, Texas, within 90 days from date of approval of this contract,
at the Company's office at Milwaukee, Wisconsin, and receipt of all information necessary for the
work to proceed without interruption, unless delayed by strikes, fires, accidents, or manufacturing
contingencies beyond the reasonable control of the Company, the hereinafter described machinery,
such machinery to be in strict comformity with the specifications of the Company (attached to this
proposal and forming part hereof), to-wit:
1·1665BlP
1-1250 K. W.
Vertical, Crosahead, Type T, A. 178 Gas Engine direct connected to
2300 volt, 60 Cycle, 3 Phase, General Electric used Generator.
The purchaser will furnish all foundations according to the Companyts plans and such
sub-foundation ( for which the Company neither furnishes plans nor assumes responsibility) as the
conditions require. The Purchaser will furnish all labor, approved appliances, and material
necessary for the prompt erection of the machinery, without expense to the Company.
The Company agrees to furnish erecting engineer without charge to purchaser to
supervise installation in accordance with this contract.
The Purchaser shall notify the Company when ready for the Erecting Engineer, and
the Purchaser agrees to pay $15.00 per day, plus expenses, for every day which he is delayed by
~aiting for labor. material, or imperfectly constructed work not furnished by the Company.
The Purchaser shall provide and maintain adequate liability and Workmen's Compensatio
Insurance covering all men who may be assisting in the erection of this machinery, as well as
fire insurance for the machinery herein described against less or damage by fire from the time
the same is del,vered to the Purchaser, in an amount at least equal to the unpaid purchase prioe
thereof. The policies for such insurance shall be made payable to the Comp,ny and held by it
as collateral security. The Purchaser shall be liable for all loss resulting from fire in case
of failure to provide such insurance.
It is understood and agreed that the Company retains, and it is hereby recognized
by the Purchaser. a mechanic's and materialman's lien on said machinery and all parts thereof,
until the purchase price thereof as hereinafter recited shall be fully paid according to its
terms, tenu~e and effect, and an express lien upon, and the superior title to, said machinery is
lnd shall be retained and held by the Company and is hereby recognized by the Purchaser until
said purchase price shall be fully paid. It is understood that the said mach,nery is for erection
and use in what is known as City of Lubbock Electric Light & Power, situated on Block 7 at
Corner of Ave. J & 5th St., Original Town of Lubbock, Texas.
The Company shall, under no circumstances, be liable for any consequential or
contingent damages or for any delay caused by fire, strike, civil or military authority, or by
insurrection or riot, or by any otber cause beyond the Companyts control.
The Company agrees to repair or replace at the Company's option, without charge,
f.o.b. its works, any part of the machinery and accessories of Company's own manufacture, furnished
under this contract, which proves defective within one year after date of original shipment,
if such defect in material, workmanship, or design existed when such machinery was shipped, provide
the Purchaser notifies the Company of such alleged defect immediatley in wttting, returning to
the Company, transportation prepaid, the part claimed to be defective, and inspection by the
Company establishes the claim. The Company will make no allowance for repairs or alterations made
by Purchaser or others than l Company, unless made with the written consent of the Company.
The Company will, at its own expense, defend any suits that may be instituted by
any one against the Purchaser for alleged infringement of any patent relating to the Machinery
manufactured by the Company under this proposal, provided such alleged infringement shall consist
of the use of said machinery, or parts thereof, in the Purchaser's business for any of the
purposes for which the same was sold, and provided the Purchaser shall have made all payments
then due dpen this contract, and shall give to the Company immediate notice in writing of all the
institution of any such suit, and transmit to the Company, immediately upon receipt, all processes
and papers served upon the Purchaser, and permit the Company, through its Counsel, either in the
aame of the Purchaser or in the name of the Company, to defend the same and give all needed
information, assistance, and authority to enable the Company to do so; and in ease of a final award
of damages in such suit, the Company will pay such award but it w~ll not be responsible for any
compromise made without ,its written consent, or shall it be bound to defend any suit or to pay
damages when the same shall artse by reason of the use of parts not furnished by the Company under
this proposal.
In case of any delay in the shipment, erection, or starting of the machinery herein
specified, or any part ~f the same, caused directly or indirectly by the act of the Purchaser, and
10t through any fault of the Company, such delays shall not in anywise affect or postpone the
tayments herein agreed to be made by the Purchaser, or any of them, and in case of any delay in s
1hipment, the machinery and the various parts thereof, shall be held at Purchaser's risk, and
:he Purchaser shall pay for storage of the same at the rate of ten cents per square foot per month.
The foregoing prqaat is subject to the approval of an executive officer of the
!ompany and is not binding upon the Company until so approved, nor in any event unless accepted
•Y the Purchaser within thirty (30) days faom date of its submission, after which is is subject
:o change or withdrawal without notice. This proposal as it exists at the date of approval by
:he Company shall after such approval become and shall be deemed atlAw to be an aggeement
>etween the Company and the Purchaser, and all previous communications between them, either verbal
•r written, shall thereupon be, and be deemed to be, abrogated and withdrawn, and this proposal
vhen duly signed, accepted and approved shall thereupon constitute and beoome in all respects
;he sole agreement between the parties hereto, and no modifications thereof shall be binding upon
:he parties hereto or either of them, unless such modification shall be in wmtttng duly executed
,y the Purchaser and approved by an executive officer of the Company. PRICE F. 0. B Lubbock, Texas
)eventy three thousand Two Hundred Twabty Eight Dollars ($73,228.00) and Fatrbanks Morse Type
(, 300 H.P. Engine Number 573955.
All payments shall be made for each unit of machinery separately in New York,
~hicago or Milkwaukee Exchange, free of expense to the Company for collection charges as follows:
Twenty-four (24) equal consecutive monthly installments of $3,051.18 each,
evidenced by twenty•four (24) notes, bearing 4% interest, and dated from the
date of complete installation and acceptance. City shall bave the right to pay
all or any part of said indebtedness before maturity. If the purchaser pays
cash the above prive is subject to 6% discount.
Invoices shall be rendered by the Company by the Company from time to time for
naterial which ia is prepared to ship and payment shall be made by the Purchaser in accordance
~ith the above terms, such payments to date from date of such invoice.
l'his proposal !s
City of Lubbock
By Ross Edwards
Mayor
ATTEST :
W. 0. Stevens
NORDBERG MANUFACTURING COMPANY
BY. Chas. B. Trimble
Sales Representative.
hereby accepted and agreed to this 17th day of June, 1935,
This proposal approved at Milwaukee,
this 25th day of June, 1935
NORDBERG MANUFACTURING COMPANY
E. G. Bayerlim
Vice President.
Wisconsin.,
City Secretary. 1'
WHEREAS, Sa~d contract was executed and delivered in such manner that the bolder
of the obligations issued thereunder shall never have the right to demand their payment out of
funds raised or to be raised by taxation.
:and
WHEREAS, said Nordbert Manufacturing Company thereafter complied with all of its
obligations under said contract; and
WHEREAS, on October 22, 1936 at a meeting of the City Commission the engine and
equipment having been duly installed and having passed the operating tests were approved and
accepted by the City Commission and the Mayor at that time was authorized to execute notes in
?&yment of same as more fully provided in said contract, all of which is~own and reflected
in the minutes of the said meeting duly of record in Book 5, pages 258-259 of the minutes of the
~ity Commission;and
WHEREAS, pursuant to said order of the City Commission supra, the Mayor did for
lnd in behalf of the City execute and deliver to said Nordberg Manufacturing Company "City of
Lubbock, Texas, Light Plant Revenue Notes," dated October 22, 1936, aggregating $73,228.00,
:onsisting in twenty four notes, numbered One (1) to Twenty-Four (24), both inclusive, all
)earing Four (4%) per cent interest, Note No. 1 being in the denomiatt,onof $3,050.86 and
payable three days after date and Note No. 2 to 24, both inclusive, all being of the denomination
)f $3,051.18, Note No. 2 maturing one month after date and Notes Nos. 3 to 24, both inclusive,
uaturing in their numeetcal order, Note No. 3 naturing two months after date and one additional
~ote maturing each month thereafter, the last not being No. 24 maturing twenty three months after
~ate with the option reserved in the City to pay all or any part of said indebtedness without
~otice, principal and interest being payable to the o~der of Nordberg Manufacturing Company,
~ilwaukee, Wisconsin; and
WHEREAS, Mote No. 1 for $3,050.86 which matured on October 25, 1936 together with
interest thereon has been paid; and
WHEREAS, all of said Notes Nos. 2 to 24, both inclusive, aggregating $70,177.14
nave been purchased by First National Bank, Lubbock, Texas; and
WHEREAS, it is considered to be to the best interest of the gtty that said
indebtedness be refunded in such manner that with the exception of one of said warrants the
denominations will be uniform; and
WHEREAS, the holder of said original notes has consented to accept from the City
the Refunding Revenue Warrants as authorized herein;
BE IT ORDAINED BY THE CITY OF LUBBOCK:
1. That the Revenue Warrants of said City to be called "City of Lubbock Light
Plant Refunding Revenue Warrants, Series 1936." be issued under and by virtue of the Constitution
and laws of the State of Texas and the charter of said City in the amount of Seventy Thousand
One Hundred Seven~y Seven and 14/100 ($70,177,14) Dollars, for the purpose of refunding, cancelling
and in lieu of City of Lubbock, Texas, Light Plant Revenue Notes, datee October 22, 1936,
hereinab~ve more fully described.
Said Refunding Revenue Warrants shall be numbered r £com One (1) to Seventy (70),
both inclusive, of the denomination of One Thousand ($1,000.00) Dollars each, except Warrant No. 1
for One Thousand One Hundred Seventy Seven and 14/100 ($1177.14) Dollars.
2. They shall be dated October 22, 1936, and shall become due and payable serially,
as follows:
WARRANT NOS. MATURITY DATES AMOUNTS
1 to 3, both incl., November 22, 1936 $3177.14
4 to 6, II II December 22, 1936 3000.00
7 to 9, II II January 22, 1937 3000.00
10 to 12,11 " February 22, 1937 3000.00
13 to 15,11 II March 22, 1937 3000.00
16 to 18," II April 22, 1937 3006.00
19 to 21," May 22, 1937 3000.00
22 to 24, It II June 22, 1937 3000.00
25 to 27, II If July 22, 1937 3000.00
28 to 30," II August 22, 1937 3000.00
31 to 33, II II September 22, 1937 3000.00
34 to 36, " II October 22, 1937 3000.00
~~
17 to 39, " " November 22, 1937 3000.00
~o to 42, " II December 22, 1937 3000.00
~3 to 45, " II January 22, 1938 3000.00
•6 to 48, I t II February 22, 1938 3000.00
•9 to 51, II " March 22, 1938 3000.00
;2 to 54, " " April 22, 1938 3000.00
;s to 57, II " May 22, 1938 3000.00
)8 to 60, II II June 22, 1938 aoooooo
)1 to 63, " " July 22, 1938 3000.00
)4 to 66, 11 II August,22, 1938 3000.00
)7 to 70, " " September 22, 1938 4000.00
That the City Commission officially determines that the maturities set forth as
1early a uniform burden throughout the term of said issue as the financial condition of the
~ity will permit.
3. That said revenue warrants shall bear interest at the rate of 4% per annum, the
lnterest on each revenue warrant being payable on the date fixed for the maturity of said warrant.
4. That the City reserves the right to redeem any one of or more of said warrants
lt any time prior to maturity without notice by pa~aa t the principal and accrued interest
:alculated to said date of payment.
5. That each of said refunding revenue warrants shall contain this clause;
"The holder hereof shal.l never have the right to demand payment of this obligation
out of any funds faised or to be raised by taxation."
6. That each of said warrants shall be signed by the Mayor and shall be
countersigned by the City Secretary and the corporate seal of the City of Lubbock shall be
impressed on each of them.
7. That the interest to be paid on each of said warrants shall be evidenced by
a stipulation contained in the face of the instrument itself and shall not be evidenced by
attached coupons.
8. The form of said revenue refunding warrants shall be substantially as follows:
NO. $ _____ _
UNITED STATES OF AMERICA
CSBWATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK LIGHT PLANT REFUNDING REVENUE WARRANT
SERIES 1936
For value received the City of Lubbock, in the County of Lubbock, in the State of
Texas, hereby acknowledges itself indebted to and promises to pay to bearer the sum of
___________ DOL.LARS
in lawful money of the United States of Americanon the 22nd day of ,19 , with
interest thereon from date at the r eate of 4% per annum, said interest being payable on the date
fixed for the maturity of this warrant, upon presentation and surrender of this warrant, no
interest coupons being attached hereto; both principal and interest being payable at First
National Bank, Lubbock, Texas, and the City of Lubbock is hereby held and firmly bound to apply
the pledged and appropriated revenues to the prompt payment of Principal and interest of this
warrant at its maturity.
The City reserves the right to pay this warrant at any time prior to its maturity
date by p'ying the principal thereof and interest thereon calculated to the date of such payment,
lotice of intention to call this warrant prior to maturity shall be given in writing to the
lirst National Bank, Lubbock, Texas, on or before the date so fixed for redemption.
In event the sum of money evidenced by this warrant shall not be paid at ..-urity
:he same shall thereafter bear interest at the raae of 6X per annum until fully paid and in
:he event of such default and it becomes necessary for the holder to place this warrant in the
tands of an attorney for collection the City obligates itself and promises to pay to the bolder
1ereof an additional ten (10~) per cent as attorney's fees.
This warrant is one of a series of warrants of like tenor and effect, except as to
lenomination and as to maturities, numbered from One (1) to Seventy (70), both inclusive, in the
lenomination of One Thousand ($1,000.00) Dollars each, exeept Number One (1) for One Thousand
)ne Hundred Seventy Seven and 14/100 ($1177.14) Dollars, aggregating Seventy Thousand One Hundred
)eventy Seven and 14/100 ($70,177.14) Dollars, issued by the Ctty of Lubbock for the purpose of
~efunding Seventy Thousand One Hundred Seventy Seven and 14/100 ($70,177.14) Dollars of City of
~ubbock Light Plant Revenue Notes likewise dated on October 22, 1936, being numbered Two (2) to
rwenty Four (24), both inclusive, of the denomination of Three Thousand Fifty One and 18/100
($3,051.18) Dollars, originally issued for the purpose of evidencing the City's obligation to pay
for an engine and certain equipment furnished for the electric light and power plant of said
~ity in accordance with the Constitution and laws of the State of Texas and pursuant to an
>rdinance passed by the City Commission duly recorded in the minute book of said City Commission.
The date of this warrant in conformity with the ordinance above mentioned is October 22,
L936.
The principal and interest of this warrant and of the series of which it is a part are
ratably secuned by an exclusive first pledge of the net revenues of the electric light and power
system of said City as authorized in the ordinance authorizing the issuance of this warrant.
This warrant and the series of which it is a part constibucee epecial obligations of
gaid City and the bolder hereof shall never have the right to demand payment of this obligation
)Ut of any funds raised or to be raised by taxation.
AND IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required
to be done precedent to and in the issuance of this warrant and the series of which it is a part
and in the issuance of the nOtes refunded hereby has been properly done, have happened and have
been performed in regular and due time form and manner as required by the ConstiOOt6on and laws
of the State of Texas, the Charter of said City and the ordinance hereinabove mentioned and that
this series of revenue warrants does not exceed any constitutional, statutory or charter limitationf
and that provision has been made for the payment of principal and interest of this warrant and the
series of which it is a part by irrevocably pledging the revenues of said electric light and power
system of said City of Lubbock.
In addition to all other rights the holder of this warrant and the holder or holders
of all refunding revenue warrants of which this is one shall have all of the rights and shall
be entitled to all of the rights and remedies which were available to the holder or holders of
the original revenue notes refunded hereby.
IN TESTLMONY WHEREOF,the City Commission of the City of Lubbock, Texas, has caused the
seal of said City to be hereto impressed and this warrant to be signed by the Mayor of said City,
countersigned by the City Secretary and registered by the City Treasurer as of October 22, 1963.
Mayor, City of Lubbock, Texas.
COUNTERSIGNED:
City Secretary, Lubbock, Texas.
REGISTERED:
City Treasurer, Lubbock, Texas.
:ollowing:
1
9. On the filing surface of said warrants there shall be printed substantially the
"The interest borne by the within warrant is not evidenced by coupons, the obligation
to pay interest being contained in the face of the warrant itself, both principal and
interest being payable upon the surrender of said warrant at its maturity or on the date
fixed for its redemption if called prior to maturity."
10. The Mayor is hereby directed to eaecute each of said warrants and the City Secretary
Ls hereby directed to countersign each of said warrants. After said revenue warrants shall bave
•een executed they shall be delivered by the Mayor to the City Treasurer who shall hold them until
:heir actual delivery to the holder of said original notes. The Treasurer is directed to accept
:rom the holder of said original notes the Seventy Thousand One Hundred Seventy Seven and 14/100
($70,177.14) Dollars of original notes and to deliver to said holder said refunding revenue
tarrants as authorized herein in the amount of Seventy Thousand One Hundred Seventy Seven and
L4/100 ($70,177.14) Dollars. Concurrently with the exchange of said securities the Treasurer
~hall execute a certificate and deliver it to said holders showing the completion of said
~xchange and showing the cancellation of said original notes. sa•d holder shall likewise
~ive to the Treasurer a certificate showing the surrender of said Original notes and the acceptance
ln lieu thereof of said refunding revenue warrants.
11. The various liens given and the various pledges of revenues made haeetofore by the
~ity to assure the prompt payment of the principal and interest of said original notes are hereby
~atified and confirmed and made applicable to assure the prompt payment of the principal and
lnterest of said refunding warrants.
More specifically the City hereby pledges a sufficient auount of the revenues from the
,peration of its electric light and power system to pay the principal and interest of said
tefunding Revenue Warrants as and when they mature. The income of said light and power system
Ls hereby encumbered under the provi~ions of Article 1113 Revised Civil Statutes of 1925 and
lmendments thereto to assure the prompt payment of the principal and interest of said Refunding
levenue Warrants. All of said income aecessary for the purpose after the payment of the expenses
>f operation and maintenance, including salaries, labor, material, interest, repairs and extensions
1ecessary to render efficient service is hereby pledged for the purpose and said warrants shall
:onstiOOte a first lien and charge against such income after first taking care of said expenses
~hich under statute are supported by a superior lien.
12. It shall be the duty of the officials of the City charged with such functions under
~he charter and under applidable ordinances of the City each month to draw a warrant on the
rreasurer of the City and to deliver said warrant to First National Bank, Lubbock, Texas, for
:he purpose of paying the refunding revenue warrant which matures during that month. The City
~arrant issued for such purpose shall be delivered to said banM on or by the 15th day of s•id
nonth.
13. A special fund is hereby created disignated 11City of Lubbock Light Plant Refunding
~evenue Warrant Fund" and there shall be placed in said fund each month so long as said refunding
revenue warrants or any of them are outstanding and unpaid, in the amount of Three Thousand Five
aundred ($3500.00) Dollars per month. The warrants to pay the principal and interest on said
Refunding Revenue Warrants shall be drawn against said fund and the balance in said fund shall
~e carried as reserve to insure against future delinquencies in payment of principal and interest.
Nhen all of said Refunding Revenue warrants and interest thereon shall have been paid the balance
in said fund shall then revert to the regular accounts of said system.
The Refunding Revenue Warrants authorized by this ordinance shall constiOute such
bbligations of the City of Lubbock and are issued under the provisions of Articles 1111 to 1118 of
the Revised Civil Statutes of 1925 as amended, and under such circumstances that each of said
rarrants shall contain this quotation "the holder hereof shall never have the right to demand
•ayment of this obliJation out of any funds raised or to be raised by taxation."
14. The Mayor, City Secretary, City Manager and City Treasurer are hereby directed to
lo any and all things necessary or convenient to carry out the purposes of this ordinance.
15. The fact that this ordinance is considered necessary for the usual daily operation
1£ a municipal department of the City Government creates an emergency and constitutes this an
~mergency measure requiring a suspension of the charter provision which prohibits the final
•assage of an ordinance on the date introduced and it is so ordained.
l'lTEST:
'sf Lavenia Williams ;rEy-AecreE&ry:-ctE1-o£ __________ _
Lubbock, Texas
PASSED AND APPROVED this the 10 day of December,
1936.
/e/ Ross Edwards
Mayor, City of Lubbock, Texas
APPROVED AS TO FORM.
City Attorney