HomeMy WebLinkAboutOrdinance - 3024-1960 - Authorizing City Manager Promissory Note - 01/14/1960oRDINANCE NO. 3024
AN OltDINANCE AUTHOR.IZI~ THE CITY MANAGER, ON BEHALF OF THE
CITY OF LUBBOCK TO EXECUTE THE CITY'S NON NEGOTIABLE PROMISSOR
NOTE FOR. THE PURPOSE OF.EVIDENCING AN INDEBTEDNESS OF $453 535.7
PAYABLE TO SOUTH PlAINS ELECTRIC COOPERATIVE, INC., A£)..-~-.•
PAYMENT FOlt THE PURPOSE OF PURCHASING EXTENSIONS TO THE CITY'S
ELECTRIC LIGHT SYSTEM FROM SAID CORPORATION; SAID NOTE BEING
PAYABLE IN INSTALLMENTS; TO PROVIDE FOR A SINKING FUND TO PAY
SAID NOTE AND TO SECURE SAME BY PLEDGE OF SAID FUND..,
WHEREAS, the City of Lubbock has purchased certain property from South
Plains Electric Cooperative, Inc., by Contract and under these terms, the City
is required to execute a certain non-negotiable note and provide for payment there
of by making appropriations pursuant thereto, creates an emergency pertaining
to the daily operation of the electric light and power system and department re-
quiring the immediate passage of this Ordinance in the public interest and in
connection with the daily operation of said system and department.
BE IT ORDAINED BY THE CITY COMJvUSSION OF THE CITY OF LUBBOCK:
SECTION 1. THAT for the purpose of evidencing an indebtedness and paying
the full balance of the purchase money for the purchase price of certain property
described as being "facilities", and including but not limited to all of South Plains
Electric Cooperative, Inc., electric distribution lines including poles, wires,
transformers, service lines, meters, rights-of-way and all other physical appur-
tenances necessary and incidental to rendering electric service to customers with
in the corporate limits of Lubbock as such limits now exist, said facilities to
constitute BXtensions to the City's electric systenall as provided in the sales
agreement between the City of Lubbock ana said corporation, there shall be execu d
and delivered to said corporation, the City of Lubbock's non-negotiable promissor~,
note on the date as provided for in said sales contract. ~
SECTION 2. THAT on the said non-negotiable note for the amount to be
calculated as provided foX in said sales cont~act, the:e has been a payment made
by the City to said c~poPation in the sum of $100.00 to bind the deal between said
corporation and the City of Lubbock •. and the balance to be payable to said cor ...
poration at the Citizents National Bank in Lubbock;a Texas. as follows: $50l 000.00
on or before one year after date of said note'll and a like sum of mon~y on or before
the corresponding date in each of the next three succeeding years thereaftera and
the balance of $253.535. 79 •P~¥able the fourth succeeding year thereafter•
with interest thereon from date of said note Wltil paid at the rate of 3 l/2o/o per an
payable annually, beginning with the first installment of principal as above stated~
as said interest accrues. all past due principal and interest shall bear interest
after date due Wltil paid at the rate of 3 l/2o/o per annum. Said note to provide tha
failure to pay when due any installments of principal or interest:t. or any part ther
and so remaining in default for 30 days-, shall at the o~tion of said corporation, or
the legal owner and holder of said note:t, mature all of same then dlripaid. And
provided that if after 30 days written notice to the City Commission of the Ci ty of
Lubbocka said note is placed in the hands of an attorney for collection, or if collec
by suit* the City of Lubbock shall pay a reasonable attorney1 s fee therefor~ said
note to be signed for the City by the City Manager in accordance withthe terms of
said·contract-. countersigned by the Director of Finance and attested by the City
Secretary-Treasurer of the City of Lubbock.
r
SECTION 3. There is hereby created a special fund in the City _ depository
designated as 11EXTENSION PURCHASE SI:NKlNG FUND (CO-OP) ELECTRIC
LIGHT SYSTEM11, and for that purpose and to the end that there shall be annually
paid into said fund• there shall be paid into said fund out of the annual net revenue
from the Cityfs electric light and power system~ a sufficient a:mount to pay said
non-negotiable installment note according to its terms, and said monies are
appropriated to that end and are hereby irrevocably pledged as security for the
payment of said note. It is made an express condition hereo£ that said fund shall
be set up in the manner stated no later than the date of said non-negotiable note
and that said fund shall not"-be diverted to any other purpose whatsoever., and
said fund shall further be maintained in an amount sufficient to meet each 1'ear1 s
payments due thereon with interest.
SECTION 4. THAT the City Manager of the City of Lubbock be and he is hereb
authoriz.ed and directed to execute and deliver said non-negotiable note to the
payee as and when provided for in said sales contract between the City of Lubbock
and South Plains Electric Cooperative. Inc.,
SECTION 5. This Ordinance is declared to be an emergency measure for the
reason set forth in the preamble hereof and the rule requiring more than one read
ing of an Ordinance before final passage is hereby suspended and this Ordinance
shall become effective immediately after its passage.
AND IT IS SO ORDERED
On motion of Commissioner Maner ~ seconded by Com-
missioner CaseY , the above and foregoing Ordinance was
unanimously passed by the City Commission this 14th day of _ __;J:.;a::n:.:;u::.:a=-..__-----f
19 60 ::. by the following vote:
C ommi s si one r s voting 11A YE 11:
Commissioners voting uNAY":
Eo'){=:oved
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