HomeMy WebLinkAboutOrdinance - 9067-1987 - Issuance General Obligation Bonds Series 1987 - 04/23/1987j First1 Reading
Apri 1 23, 1987
· Agenda Item #23
\ Second Reading
April 24, 1987
Agenda Item #4
ORDINANCE NO.
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1987"; specifying the terms and
features of said bonds; levying a
continuing direct annual ad valorem tax for
the payment of said bonds; and resolving
other matters incident and related to the
issuance, sale, payment and delivery of
said bonds, including the approval and
distribution of an Official Statement
pertaining thereto; and providing an
effective date.
WHEREAS, the City Council of the City of Lubbock, Texas,
hereby finds and determines that $5,960,000 in principal amount
of general obligation bonds approved and authorized to be
issued at elections held on May 21, 1977, and November 21, 1981,
should be issued and sold at this time; a summary of the
general obligation bonds authorized at said election, the
principal amount authorized, amounts heretofore issued and
being issued pursuant to this ordinance and amounts remaining
to be issued subsequent hereto being as follows:
Purpose
Waterworks System
Imp. & Ext.
Date
Authorized
Sewer System
Imp. & Ext.
Street Improvement
Storm Sewer
& Drainage
Waterworks System
Imp. & Ext.
Street Improvement
Fire Department
05/2.1/77
05/2.1/77
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05/2.1/77
11/21/81
11/21/81
11/2.1/81
Principal
Amount
Authorized
16,775,000
3,303,000
4,782,000
473,000
5,22.6,000
9,495,000
877,000
Amounts
Heretofore
Issued
12,125,000
2,030,000
3,693,000
100,000
2,513,000
8,703,000
410,000
Amounts
Being
Issued
4,650,000
145,000
-0-
373,000
-0-
792.,000
-0-
Unissued
Balance
-0-
1,128,000
1,089,000
-0-
2., 713,000
-0-
467,000
AND WHEREAS, the City Council hereby reserves and retains
the right to issue the balance of unissued bonds approved at
said election in one or more installments when, in the judgment
of the Council, funds are needed to accomplish the purposes for
which such bonds were voted; now, therefore,
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
SECTION 1: Authorization -Designation-Principal Amount-
Purpose. General obligation bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $5,960,000, to be designated and bear the title "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987"
(hereinafter referred to as the "Bonds"), for the purpose of
making permanent public improvements, to wit: $4,650,000 for
constructing improvements and extensions to the City's
Waterworks System; $145,000 for constructing improvements and
extensions to the City"s Sanitary Sewer System; $373,000 for
constructing, enlarging, extending and installing storm sewers,
drains and. gutters and other improvements incidental thereto,
including the acquisition of land for drainage purposes and
drainage area modifications; and $792,000 for constructing
street improvements in and for said City, including lighting,
in accordance with authority conferred at the aforesaid
elections and in conformity with the Constitution and laws of
the State of Texas.
SECTION 2: Fully Registered Obligations -Bond Date -
Authorized Denominations-Stated Maturities-Interest Rates. The
Bonds shall be issued as fully registered obligations only,
shall be dated April 15, 1987 (the "Bond Date"), shall be in
denominations of $5,000 or any integral multiple (withiri a
Stated Maturity) thereof, and shall become due and payable on
February 15 in each of the years and in principal amounts (the
•stated Maturities") and bear interest at the rate(s) per annum
in accordance with the following s_chedule:
Year of Principal Interest
Stated Maturity Amount Rate(s)
1988 $ 260,000 9.50\
1989 300", 000 9.50\
1990 300,000 9.50\
1991 300,000 9.50\
1992 300,000 9.50\
1993 300,000 9.50\
1994 300,000 9.50\
1995 300,000 9.50\
1996 300,000 7.80\
1997 300,000 7 .30\
1998 300,000 7.40\
1999 300,000 7.50\
2000 300,000 7.60\
2001 300,000 7. 70.\
2002 300,000 7.75\
2003 300,000 7.80\
2004 300,000 7.90\
2005 300,000 6.50\
2006 300,000 6.50\
2007 300,000 6.50\
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The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the rate(s) per annum shown above
in this Section (calculated on the basis of a 360-day year of
twelve 30-day months). Interest on the Bonds shall be payable
on February 15 and August 15 in each year, commencing
February 15, 1988.
SECTION 3: Terms of Payment-Paying Agent/Registrar.
The principal of, premium, if any, and the interest on the
Bonds, . due and payable by reason of maturity, redemption or
otherwise, shall be payable only to the registered owners or
holders of the Bonds (hereinafter cal led the "HoldersM)
appearing on the registration and transfer books (the "Security
Register") maintained by the Paying Agent/Registrar and the
payment thereof shall be in any coin or currency of the United
States of America, which at the time of payment is legal tender
for the payment of public and private debts, and shall be
without exchange or collection charges to the Holders.
The selection and appointment of Texas Commerce Bank,
N.A., Lubbock, Texas to serve as Paying Agent/Registrar for the
Bonds is hereby approved and confirmed. The City covenants to
maintain and provide a Paying Agent/Registrar at all times
until the Sonds are paid and discharged, and any successor
Paying Agent/Registrar shall be a bank, trust company,
financial institution or other entity qualified and.authorized
to serve in such capacity and perform the duties and services
of Paying Agent/Registrar. Upon any change in the Paying
Agent/Registrar for the Bonds, the City agrees to promptly
cause a written notice thereof to be sent to each Holder by
United States Mail, first class postage prepaid, which notice
shall also give the address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Bonds shall be
payable at the Stated Maturi ties or the redemption thereof,
only upon presentation and surrender of the Bonds to the Paying
Agent/Registrar at its principal office. Interest on the Bonds
shall be paid to the Holders whose name appears in the Security
Register at the close of business on the Record Date (the last
business day of the month next preceding each interest payment
date) and shall be paid by the Paying Agent/Registrar (i) by
check sent United States Mail, first class postage prepaid, to
the address of the Holder recorded in the Security Register or
(ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the Holder. If the date for the payment of the principal of or
interest on the Bonds shall be a Saturday, Sunday, a legal
holiday, or a day on which banking ins ti tut ions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment
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shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
In the event of a nonpayment of . interest on a scheduled
payment date, and for thirty (30) days thereafter, a new record
date for such interest payment ( a "Special Record Date") wi 11
be established by the Paying Agent/ Registrar, if and when
funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the
scheduled payment date of the past due interest (which shall be
15 days after the Special Record Date) shall be sent at least
five (5) business days prior to the Special Record Date by
United States Mail, first class postage prepaid, to the address
of each Holder appearing on the Security Register at the close
of business on the last busine~s day next preceding the date of
mailing of such notice. · ·
SECTION 4: Redemption. (a) Optional Redemption. The
Bonds having Stated Maturities on and after February 15, 1998,
shall be subject to redemption prior to maturity, at the option
of the City, in whole or in part in principal amounts of $5,000
or any integral multiple thereof (and if within a Stated
Maturity by lot by the Paying Agent/Registrar), on February 15,
1997 or on any interest payment date thereafter at the
redemption price of par plus accrued interest to the date of
redemption.
(b) Exercise of Redemption Option. At least forty-five
(45) days prior to a redemption date for the Bonds {unless a
shorter notification period shall be satisfactory to the Paying
Agent/Registrar), the City shall notify the Paying
Agent/Registrar of the decision to redeem Bonds, the principal
amount of each Stated Maturity to be redeemed, and the date of
redemption therefor. The decision of the City to exercise the
right to redeem Bonds shall be entered in the minutes of the
governing body of the City.
{c) Selection of Bonds for Redemption. If less than all
Outstanding Bonds of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/ Registrar
shall treat such Bonds as representing the number of Bonds
Outstanding which is obtained by dividing the principal amount
of such Bonds by $5,000 and shall select the Bonds, or
principal amount thereof, to be redeemed within such Stated
Maturity by lot.
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(d) Notice of Redemption. Not less than thirty (30) days
prior to a redemption date for the Bonds, a notice of
redemption shal 1 be sent by United States Mai 1, first class
postage prepaid, in the name of the City and at the City• s
expense, to each Holder of a Bond to be redeemed in whole or in
part at the address of the Holder appearing on the Security
Register at the close of business on the business day next
preceding the date of mailing such notice, and any notice of
redemption so mailed shall be conclusively presumed to have
been duly given irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of
redemption for the Bonds, (ii) identify the Bonds to be
redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be
redeemed, (iii) state the redemption price, (iv) state that the
Bonds, or the portion of the principal amount thereof to be
redeemed, shall become due and payable on the redemption date
specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue
from and after the redemption date, and (v) specify that
payment of the redemption price for the Bonds, or the principal
amount thereof to be redeemed, shall be made at the principal
office of the Paying Agent/Registrar only upon presentation and
surrender thereof by the Holder~ If a Bond is subject by its
terms to prior redemption and has been called for redemption
and notice of redemption thereof has been duly given as
hereinabove provided, such Bond (or the principal amount
thereof to be redeemed) shall become due and payable and
interest thereon shall cease to accrue from and after the
redemption date therefor; provided moneys sufficient for the
payment of such Bond (or of the principal amount thereof to be
redeemed) at the then applicable redemption price are held for
the purpose of such payment by the Paying Agent/Registrar.
SECTION 5: Registration -Transfer-Exchange of Bonds-
Predecessor Bonds. A Security Register relating to the
registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the
principal office of the Paying Agent/Registrar, as provided
herein and in accordance with the prov is ions of an agreement
with the Paying Agent/Registrar and such rules and regulations
as the Paying Agent/Registrar and the City may prescribe. The
Paying Agent/Registrar shall obtain, record, and maintain in
the Security Register the name and address of each and every
owner of the Bonds issued under and pursuant to the provisions
of this Ordinance, or if appropriate, the nominee thereof. Any
Bond may be transferred or exchanged for Bonds of other
authorized denominations by the Holder, in person or by his
duly authorized agent, upon surrender of such Bond to the
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Paying Agent/Registrar for cancellation, accompanied by a
written instrument of transfer or request for exchange duly
executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender of any Bond for transfer at the principal
office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of
authorized denominations and having the same Stated Maturity
and of a like aggregate principal amount as the Bond or Bonds
surrendered for transfer.
---~ At the option of the Holder, Bonds may be exchanged for
.--;?other Bonds of authorized denominations and having the same
' Stated Maturity, bearing the same rate of interest and of like
aggregate principal amount as the Bonds surrendered for
exchange, upon surrender of the Bonds to be exchanged at the
principal off ice of the Paying Agent/ Registrar. Whenever any
Bonds are surrendered for exchange, the Paying Agent/Registrar
shall register and deliver new Bonds to the Holder requesting
the exchange.
All Bonds issued in any transfer or exchange of Bonds
shall be delivered to the Holders at the principal office of
the Paying Agent/Registrar or sent by United States Mail, first
class, postage prepaid to the Holders, and, upon the
registration and delivery thereof, the same shall be the valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder
requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Bonds cancelled by reason of an exchange or transfer
pursuant to the provisions hereof are hereby defined to be
"Predecessor Bonds," evidencing a 11 or a portion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any mutilated, lost, destroyed, or stolen Bond for
which a replacement Bond has been issued, registered and
delivered in lieu thereof pursuant to the provisions of
Section 10 hereof and such new replacement Bond shall be deemed
to evidence the same obligation as the mutilated, lost,
destroyed, or stolen Bond.
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Neither the City nor the Paying Agent/ Registrar shall be
required to issue or transfer to· an assignee of a Holder any
Bond called for redemption, in whole or in part, within 45 days
of the date fixed for the redemption of such Bond; provided,
however, such limitation on transferability shall not be
applicable to an exchange by the Holder of the unredeemed
balance of a Bond called for redemption in part.
SECTION 6: Execution -Registration. The Bonds shall
be executed on behalf of the City by the Mayor under its seal
reproduced or impressed thereon and countersigned by the City
Secretary. The signature of said officers on the Bonds may be
manual or facsimile. Bonds bearing the manual or facsimile
signatures of individuals who are or were the proper officers
of the City on the Bond Date shall be deemed to be duly
executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial
purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled to any right or benefit under
this Ordinance, or be valid or obligatory for any purpose,
unless there appears on such Bond either a certificate of
registration substantially in the form provided in Section SC,
manually executed by the Comptroller of Public Accounts of the
State of Texas, or his duly authorized agent, or a certificate
of registration substantially in the form provided in
Section 80, manually executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate duly signed upon any Bond shall be
conclusive evidence, and the only evidence, that such Bond has
been duly certified, registered and delivered.
SECTION 7: Initial Bond(s). The Bonds herein
authorized shall be initially issued either (i) as a single
fully registered bond in the total principal amount of
$5,960,000 with principal installments to become due and
payable as provided in Section 2 hereof and numbered T-1, or
(ii) as twenty (20) fully registered bonds, being one bond for
each year of maturity in the· applicable principal amount and
denomination and to be numbered consecutively from T-1 and
upward (hereinafter called the "Initial Bond(s)") and, in
either case, the Initial Bond(s) shall be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds submitted to the Office of
the Attorney General of the State of Texas for approval,
certified and registered by the Off ice of the Comptroller of
Public Accounts of the State of Texas and delivered to the
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initial purchaser(s). Any time after the delivery of the
Initial Bond(s), the Paying Agent/Registrar, pursuant to
written instructions from the initial purchaser(s), or the
designee thereof, shall cancel the Initial Bond(s) delivered
hereunder and exchange therefor definitive Bonds of authorized
denominations, Stated Maturities, principal amounts and bearing
applicable interest rates for transfer and delivery to the
Holders named at the addresses identified therefor; all
pursuant to and in accordance with such written instructions
from the initial purchaser(s), or the designee thereof, and
such other information and documentation as the Paying
Agent/Registrar may reasonably require.
SECTION 8: Forms. A. Forms Generally. The Bonds,
the Registration Certificate of the Comptroller of Public
Accounts of the State of Texas, the Registration Certificate of
Paying Agent/Registrar, and the form of Assignment to be
printed on each of the Bonds, shall be substantially in the
forms set forth in this Section with such appropriate
insertions, omissions, subs ti tut ions, and other variations as
are permitted or required by this Ordinance and may have such
letters, numbers, or other marks of identification (including
identifying numbers and letters of the Committee on Uniform
Securities Identification Procedures of the American Bankers
Association) and such legends and endorsements (including any
reproduction of an opinion of counsel) thereon as may,
consistently herewith, be established by the City or determined
by the off ice rs executing such Bonds as evidenced by their
execution. Any portion of the text of any Bonds may be set
forth on the reverse thereof, with an appropriate reference
thereto on the face of the Bond.
The definitive Bonds shall be printed, lithographed, or
engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution, but the Initial Bond(s) submitted to the
Attorney General of Texas may be typewritten or photocopied or
otherwise reproduced.
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REGISTERED
NO.
Bond Date:
B.
Registered Owner:
Principal Amount:
Form of Definitive Bond.
REGISTERED $ ____ _
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BOND, SERIES 1987
Interest Rate: Stated Maturity: CUSIP NO:
DOLLARS
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and political subdivision in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered Owner named above, or the
registered assigns thereof, on the Stated Maturity date
specified above the Principal Amount hereinabove stated (or so
much thereof as shall not have been paid upon prior redemption)
and to pay interest on the unpaid principal amount hereof from
the Bond Date at the per annum rate of interest specified above
computed on the basis of a 360-day year of twelve 30-day
months; such interest being payable on February 15 and
August 15 in each year, commencing February 15, 1988. Principal
of this Bond is payable at its Stated Maturity or redemption to
the registered owner hereof, upon presentation and surrender,
at the principal office of the Paying Agent/Registrar executing
the registration certificate appearing hereon, or its
successor. Interest is payable to the registered owner of this
Bond (or one or more Predecessor Bonds, as defined in the
Ordinance hereinafter referenced) whose name appears on the _<:::-
"Security Register" maintained by the Paying Agent/Registrar.at-
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date, and interest shall be paid by the Paying Agent/Registrar
by check sent United States Mail, first class postage prepaid,
to the address of the registered owner recorded in the Security
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Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the registered owner. Al 1 payments of principal of, premium,
if any, and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $5,960,000 (herein
referred to as the "Bonds") for the purpose of making permanent
public improvements, to wit: $4,650,000 for constructing
improvements and extensions to the City• s Waterworks System;
$145,000 for constructing improvements and extensions to the
City's Sanitary Sewer System; $373,000 for constructing,
enlarging, extending and installing storm sewers, drains and
gutters and other improvements incidental thereto, including
the acquisition of land for drainage purposes and drainage area
modifications; and $792,000 for constructing street
improvements in and for said City, including lighting, under
and in strict conformity with the Constitution and laws of the
State of Texas and pursuant to an Ordinance adopted by the City
Council of the City (herein referred to as the "Ordinance").
The Bonds maturing on and after February 15, 1998, may be
redeemed prior to their Stated Maturities, at the option of the
City, in whole or in part in principal amounts of $5,000 or any
integral multiple thereof (and if within a Stated Maturity by
lot by the Paying Agent/Registrar), on February 15, 1997, or on
any interest payment date thereafter, at the redemption price
of par, together with accrued interest to the date of
redemption and upon 30 days prior written notice being sent by
United States/ Mail, first class postage prepaid, to the
registered owners of the Bonds to be redeemed, and subject to
the terms and provisions relating thereto contained in the
Ordinance. If this Bond (or any portion of the principal sum
hereof) shall have been duly called for redemption and notice
of such redemption duly given, then upon such redemption date
this Bond (or the portion of the principal sum hereof to be
redeemed) shall become due and payable, and interest thereon
shall cease to accrue from and after the redemption date
therefor, provided moneys for the payment of the redemption
price and the interest on the principal amount to be redeemed
to the date of redemption are held for the purpose of such
payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Bond, payment of the redemption price of such
principal amount shall be made to the registered owner only
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upon presentation and surrender of this Bond to the Paying
Agent/Registrar at its principal office and there shall be
issued, without charge therefor to the registered owner hereof,
a new Bond or Bonds of like maturity and interest rate in any
authorized denominations provided by the Ordinance for the then
unredeemed balance of the principal sum hereof. If this Bond is
selected for redemption, in whole or in part, the City and the
Paying Agent/Registrar shall not be required to transfer this
Bond to an assignee of the registered owner within 45 days of
the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the registered owner of the unredeemed balance
hereof in the event of its redemption in part.
The Bonds are payable from the proceeds of an ad valorem
tax levied, within the limitations prescribed by law, upon all
taxable property in the City. Reference is hereby made to the
Ordinance, a copy of which is on file in the principal office
bf the Paying Agent/Reg~strar, and to all of the provisions of
which the owner or holder of this Bond by the acceptance hereof
hereby assents, for definitions of terms; the description of
and the nature and extent of the·tax levied for the payment of
the Bonds; the terms and conditions relating to the transfer or
exchange of this Bond; the conditions upon which the Ordinance
may be amended or supplemented with or without the consent of
the Holders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which this Bond may be discharged at or prior to its maturity
or redemption, and deemed to be no longer Outstanding
thereunder; and for other terms and provisions contained
therein. Capitalized terms used herein have the meanings
assigned in the Ordinance.
This Bond, subject to certain limitations contained in the
Ordinance, may be transferred on the Security Register only
upon its presentation and surrender at the principal office of
the Paying Agent/Registrar, with the Assignment hereon duiy
endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Paying Agent/Registrar duly
executed by, the registered owner hereof, or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more new fully registered Bonds of the same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, and of the same aggregate principa 1 amount
will be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of
either, shall treat the registered owner whose name appears on
the Security Register (i) on the Record Date as the owner
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entitled to payment of interest hereon, (ii) on the date of
surrender of this Bond as the owner entitled to payment of
principal hereof at its Stated Maturity or its redemption, in
whole or in part, and (iii) on any other date as the owner for
all other purposes, and neither the City nor the Paying
Agent/Registrar, or any agent of either, shall be affected by
notice to the contrary. In the event of nonpayment of interest
on a scheduled payment date and for thirty (30) days
thereafter, a new record date for such interest payment (a
"Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such
interest have been received from the City. Notice of the
Special Record Date and_ of the scheduled payment date of the
past due interest (which shall be 15 days after the Special
Record Date) shall be sent at least five (5) business days
prior to the Special Record Date by United States Mai 1, first
class postage prepaid, to the address of each Holder appearing
on the Security Register at the close of business on the last
business day next preceding the date of'mailing of such notice.
It is hereby certified, recited, represented and declared
that the City is a body corporate and political subdivision
duly organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the Bonds is duly authorized by law; that all acts,
conditions and things required to exist and be done precedent
to and in the issuance of the Bonds to render the same lawful
and valid obligations of the City have been properly done, have
happened and have been performed in regular and due time, form
and manner as required by the Constitution and laws of the
State of Texas, and the Ordinance; that the Bonds do not exceed
any Constitutional or statutory limitation; and that due
provision has been made for the payment of the principal of and
interest on the Bonds by the levy of a tax as aforestated. In
case any provision in this Bond shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby. The terms and provisions of this Bond and
the Ordinance shall be construed in accordance with and shall
be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has
caused this Bond to be duly executed under the official seal of
the City as of the Bond Date.
COUNTERSIGNED:
City Secretary
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CITY OF LUBBOCK, TEXAS
Mayor
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c. *Form of Registration Certificate of Comptroller
of Public Accounts to appear on Initial Bond(s} only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF' PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
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REGISTER NO.
THE STATE OF TEXAS
I HEREBY CERTIFY that this Bond has been examined,
certified as to validity and approved by the Attorney General
of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my
this
(SEAL)
*NOTE TO PRINTER:
signature and seal of office
Comptroller of Public Accounts
of the State of Texas
Do Not Print on Definitive Bonds
D. Form of Certificate of Paying Agent/Registrar to
appear on Definitive Bonds only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered under the
provisions of the within-mentioned Ordinance; the bond or bonds
of the above entitled and designated series originally
delivered having been approved by the Attorney General of the
State of Texas and registered by the Comptroller of Public
Accounts, as shown by the records of the Paying Agent/Registrar.
Registration Date:
By
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Texas Commerce Bank, N.A.,
Lubbock, Texas
as Paying Agent/Registrar
Authorized Signature
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\ '
E.
FOR
assigns,
address,
Farm of Assignment. 7 ASSIGNMENT
VALUE RECEIVED
and transfers
and zip code of
the undersigned hereby sells,
unto (Print or typewrite name,
transferee:) .................... . ............................................................
(Social Security or other identifying number: ............ .
. . . . . . . . . . . . . . . . ) the within Bond and al 1 rights thereunder,
and hereby irrevocably constitutes and appoints .......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
Signature guaranteed:
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this Section, except that the form of the single
fully registered Initial Bond shall be modified as follows:
(i) immediately under the name of the bond the
headings "Interest Rate _____ " and "Stated
Maturity _____ " shall both be completed "as shown
below";
(ii) Paragraph one shall read as follows:
Registered Owner:
Principal Amount: Dollars
The City of Lubbock (hereinafter referred to as the
"City"), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered Owner named above, or the
registered assigns thereof, the Principal Amount hereinabove
stated on February 15 in each of the years and in principal
installments in accordance with the following schedule:
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✓
YEAR OF
MATURITY
PRINCIPAL
INSTALLMENTS
(Information to be inserted from
schedule in Section 2 hereof).
INTEREST
RATE
(or so much principal thereof as shall not have been prepaid
prior to maturity) and to pay interest on the unpaid Principal
Amount hereof from the Bond Date at the per annum rates of
interest specified above computed on the basis of a 360-day
year of twelve 30-day months; such interest being payable on
February 15 and August 15 in each year, commencing February 15,
1988. Principal installments of this Bond are payable in the
year of maturity or on a prepayment date to the registered
owner hereof, upon its presentation and surrender, at the
principal office of Texas Commerce· Bank, N .A., Lubbock, Texas
(the "Paying Agent/Registrar"). Interest is payable to the
registered owner of this Bond whose name appears on the
"Security Register" maintained by the Paying Agent/Registrar at
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date, and interest shall be paid by the Paying Agent/Registrar
by check sent United States Mail, first class postage prepaid,
to the address of the registered owner recorded in the Security
Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the registered owner. Al 1 payments of principal of, premium,
if any, and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
SECTION 9: Levy of Taxes. To provide for the payment
of the "Debt Service Requirements" of the Bonds, being (i) the
interest on the Bonds and (ii) a sinking fund for their
redemption at maturity or a sinking fund of 2% (whichever
amount is the greater), there is hereby levied, and there shall
be annually assessed and collected in due time, form, and
manner, a tax on all taxable property in the City, within the
limitations prescribed by law, and such tax hereby levied on
each one hundred dollars' valuation of taxable property in the
City for the Debt Service Requirements of the Bonds shall be at
a rate from year to year as wi 11 be ample and sufficient to
provide funds each year to pay the principal of and interest on
said Bonds while Outstanding; full allowance being made for
delinquencies and costs of collection; separate books and
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\ '
records relating to the receipt and disbursement of taxes
levied, assessed and collected for and on account of the Bonds
shall be kept and maintained by the City at all times while the
Bonds are Outstanding, and the taxes collected for the payment
of the Debt Service Requirements on the Bonds shall be
deposited to the credit of a .. Special 1987 Bond Account" (the
"Interest and Sinking Fund") maintained on the records of the
City and deposited in a special fund maintained at an official
depository of the City's funds; and such tax hereby levied, and
to be assessed and collected annually, is hereby pledged to the
payment of the Bonds.
Proper officers of the City are hereby authorized and
directed to cause to be transferred to the Paying Agent/
Registrar for the Bonds, from funds on deposit in the Interest
and Sinking Fund, amounts sufficient to fully pay and discharge
promptly each installment of interest and principal of the
Bonds as the same accrues or matures or comes due by reason of
redemption prior to maturity; such transfers of funds to be-
J made in such manner as will cause collected funds to be
deposited with the Paying Agent/Registrar on or before each
principal and interest payment date for the Bonds.
SECTION 10: Mutilated-Destroyed-Lost and Stolen Bonds.
In case any Bond shall be mutilated, or destroyed, lost or
stolen, the Paying Agent/Registrar, subject to City approval
and in its discretion, may execute and deliver a replacement
Bond of like form and tenor, and in the same denomination and
bearing a number not contemporaneously outstanding, in exchange _ ✓
and substitution for such• mutilated Bond, or in lieu of and in
substitution for suth destroyed, •1ost or stolen Bond, only upon
(i) the filing by the Holder thereof with the Paying
Agent/Registrar of evidence satisfactory to the Paying
Agent/Registrar of the destruction, loss or theft of such Bond,
and of the authenticity of the ownership thereof and (ii) the
furnishing to the Paying Agent/Registrar of indemnification in
an amount satisfactory to hold the City and the Paying
Agent/Registrar harmless. All expenses and charges associated
with such indemnity and with the preparation, execution and
delivery of a replacement Bond shall be borne by the Holder of
the Bond mutilated, or destroyed, lost or stolen.
Every replacement Bond issued pursuant to this Section
shall be a valid and binding obligation, and shall be entitled
to all the benefits of this Ordinance equally and ratably with
all other Outstanding Bonds; notwithstanding the enforceability
of payment by anyone of the destroyed, lost, or stolen Bonds.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost or stolen Bonds.
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SECTION 11: Satisfaction of Obligation of City. If the
City shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principa 1 of, premium, if any, and
interest on the Bonds, at the times and in the manner
stipulated in this Ordinance, then the pledge of taxes levied
under this Ordinance and a 11 covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Bonds or any principal amount(s) thereof shall be deemed
to have been paid within the meaning and with the effect
expressed above in this Section when ( i) money sufficient to
pay in full such Bonds or the principal amount(s) thereof at
maturity or to the redemption date therefor, together with all
interest due thereon, shall have been irrevocably deposited
with and held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which
Government Securities have been certified by an independent
accounting firm to mature as to principal and interest in such
amounts a·nd at such times as wi 11 insure the avai labi li ty,
without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the
principal of and interest on such Bonds, or the principal
amount(s) thereof, on and prior to the Stated Maturity thereof
or (if notice .of redemption has been duly given or waived or if
irrevocable arrangements therefor acceptable to the Paying
Agent/ Registrar have been made) the redemption date thereof.
The City covenants that no deposit of moneys or Government
Securities will be made under this Section and no use made of
any such deposit which would cause the Bonds to be treated as
"arbitrage bonds" within the meaning of Section 148 of the
Internal Revenue Code of 1986, or regulations adopted pursuant
thereto.
Any moneys so deposited with the Paying Agent/ Registrar,
or an authorized escrow agent, and all income from Government
Securities held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, pursuant to this Section which is not
required for the payment of the Bonds, or any principal
amount ( s) thereof, or interest thereon with respect to which
such moneys have been so deposited shall be remitted to the
City or deposited as directed by the City. Furthermore, any
money held by the Paying Agent/Registrar for the payment of the
principal of and interest on the Bonds and remaining unclaimed
for a period of four ( 4) years after the Stated Maturity, or
applicable redemption date, of the Bonds such moneys were
deposited and are held in trust to pay shall upon the request
of the City be remitted to the City against a written· receipt
therefor.
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The term "Government Securities", as used herein, means
direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United
States of America, which are non-callable prior to the
. respective Stated Maturities of the Bonds and may be United
States Treasury Obligations such as the State and Local
Government Series and may be in book-entry form.
~ SECTION 12: Ordinance a Contract -Amendments -Outstanding
Bonds. This Ordinance shall constitute a contract with the
Holders from time to time, be. binding on the City, and shall
not be amended or repealed by the City so long as any Bond
remains Outstanding except as permitted in this Section. The
City may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any
manner not detrimental to the interests of the Holders,
including the curing of any ambiguity, inconsistency, or formal
defect or omission herein. In addition, the City may, with the
consent of Holders holding a majority in aggregate principal
amount of the Bonds then Outstanding affected thereby, amend,
add to, or rescind any of the provisions of this Ordinance;
provided that, without the consent of al 1 Holders of
Outstanding Bonds, no such amendment, addition, or rescission
shall (1) extend the time or times of payment of the principal
of, premium, if any, and interest on the Bonds, reduce the
principal amount thereof, the redemption price therefor, or the
rate of interest thereon, or in any other way modify the terms
of payment of the principal of, premium, if any, or interest on
the Bonds, (2) give any preference to any Bond over any other
Bond, or (3) reduce the aggregate principal amount of Bonds
required to be held by Holders for consent to any such
amendment, addition, or rescission.
The term "Outstanding" when used in this Ordinance with
respect to Bonds means, as of the date of determination, all
Bonds theretofore issued and delivered under this Ordinance,
except:
1 7 7 8 D
(1) those Bonds cancelled by
Agent/Registrar or delivered to
Agent/Registrar for cancellation;
the
the
Paying
Paying
(2) those Bonds deemed to be duly paid by
the City in accordance with the provisions of
Section 11 hereof by the irrevocable deposit with
the Paying Agent/Registrar, or an authorized
escrow agent, of money or Government Securities,
or both, in the amount necessary to fully pay the
principal of, premium, if any, and interest
thereon to maturity or redemption, as the case may
-18-
be, provided that, if such Bonds are to be
redeemed, notice of redemption thereof shall have
been duly given pursuant to this Ordinance or
irrevocably provided to be given to the
satisfaction of the Paying Agent/Registrar, or
waived; and
(3) those mutilated, destroyed, lost, or
stolen Bonds which have been replaced with Bonds
registered and delivered in lieu thereof as
provided in Section 10 hereof.
SECTION 13: Certifications as to Tax Exempt Status of
Interest on the Bonds. The City shall not make or permit to be
made, or omit to make, any use or investment, within its
control, of the proceeds of the Bonds or of any property
acquired, constructed, or improved therewith which, if made or
omitted, respectively, would cause interest on the Bonds to be
includable in the gross income, as defined in Section 61 of the
Internal Revenue Code of 1986 (the "Code"), of the owners
thereof for federal income tax purposes pursuant to such Code,
and in relation to the foregoing, the City hereby agrees,
covenants and represents that:
1. The proceeds of the Bonds are to be used to finance
facilities and improvements to be owned, operated and
maintained by the City and no person or group of persons (other
than on the basis as members of the general public) will have
access to or use of or derive any special benefit from the
facilities or improvements to be financed pursuant to any
lease, management or payment contract or any other arrangement.
2. The proceeds of the Bonds are needed at this time to
finance the costs of the imp:rovements described in Section 1
hereof and pending the expenditure thereof, none of the
proceeds of the Bonds will be invested in any kind or type of
obligation or property with an investment "yield11 materially
higher (more than O .125 percentage points) than the yield of
the Bonds; except with respect to (i) any temporary period
exception as may be applicable to the investment of the
original proceeds, investment proceeds or amounts accumulated
in the Interest and Sinking Fund for the Bonds and (ii)
proceeds representing a minor portion of the Bonds (an amount
not exceeding the lesser of 5% of the original proceeds of the
Bonds or $100,000).
3. Save and except for the Interest and Sinking Fund, no
other funds or accounts have been established or pledged for
the payment of the Bonds.
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\,
Furthermore, the City Secretary is authorized and directed
to establish and maintain complete and full records pertaining
to the receipt, investment and disbursement of the proceeds of
the Bonds, to institute such procedures and measures as may be
necessary to preserve and maintain the tax-exempt status of
interest on the Bonds from federal income taxes under existing
law and the Code and, to the extent permissible, to execute
such documents and certificates as may be necessary to
establish the tax-exempt status of the Bonds at the time of
their delivery to the initial purchasers and thereafter.
SECTION 14: Covenants Regarding Arbitrage. Unless and
until the City shall have received a written opinion of counsel
nationally recognized in the field of municipal bond law to the
effect that failure to comply with one or more of the following
covenants will not adversely affect any exemption from federal
income tax of interest on any Bond, the City agrees to comply
with each of the specific covenants in this Section.
(a) A Rebate Fund is hereby established by the City.
Such Fund shall be for the sole benefit of the United States of
America and shall not be subject to the claim of any other
person, including without limitation the bondholders. The
Rebate Fund is established for the purpose of compliance with
section 148 of the Internal Revenue Code of 1986 (the "Code").
(b) At the close of each "Bond Year," the City sha 11
compute the .amount of "Excess Earnings," if any, for the period
beginning on the date of deli very of the Bonds and ending at
the close of such "Bond Year" and transfer an amount equal to
the difference, if any, between the amount then in the Rebate
Fund and the Excess Earnings so computed. The term "Bond Year"
_means with respect to the Bonds each one-year period ending on
the anniversary of the date of deli very of the Bonds. If, at
the close of any Bond Year, the amount in the Rebate Fund
exceeds the amount that would be required to be paid to the
United States of America under paragraph {d) below if the Bonds
had been paid in full, such excess may be transferred from the
Rebate Fund and paid to the City.
{c) In general, "Excess Earnings" for any period of time
means the sum of
1 7 7 8 D
(i) the excess of --
(A) the aggregate amount earned during
such period of time on all "Nonpurpose
Investments" ( including gains on the
disposition of such Investments) in which
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"Gross Proceeds" of the issue are invested
(other than amounts attributable to an
excess described in this subparagraph
(c) ( i)) over
(B) the amount that would have been
earned during such period of time if the
"Yield" on such Nonpurpose Investments
(other than amounts attributable to an
excess described in ths subparagraph (c)(i))
had been equal to the Yield on the issue,
plus
(ii) any income during such period of time
attributable to the excess described in
subparagraph (c)(i) above.
"Excess Earnings" wi 11 not include amounts, if any, which need
not be taken into account under the special rules of section
148(f) (4) (A) and (B) of the Code relating to bona fide debt
service funds and the six-month temporary investment period.
The terms "Nonpurpose Obligations," "Gross Proceeds" and
''Yield" shall have the meanings prescribed by section 148 of
the Code and shall be applied in the manner prescribed in such
section.
(d) The City shall pay to the United States of
America at least once every five-years an amount that ensures
that at least 90 percent of the Excess Earnings from the date
of delivery of the Bonds to the close of the period for which
the payment is being made will have been paid. The City 'shall
pay to the United States of America not later than 60 days
after the Bonds have been paid in ful 1 100 percent of the
amount then required to be paid under section 148(f) of the
Code as a result of Excess Earnings.
(e) The City shall keep such records as will enable
the City to fulfill its responsibilities under this section and
section 148(f) of the Code and shall retain such records for at
least six years following the final payment of principal and
interest on the Bonds.
(f) The City will not use any portion of the proceeds
of the Bonds directly or indirectly to acquire "higher yielding
investments," or to replace funds which were used directly or
indirectly to acquire "higher yielding investments." The term
higher yielding investments means any investment property (as
defined in section 148(b)(2) of the Code) which produces a
yield over the term of the issue which is materially higher
than the yield on the Bonds (as defined above). The foregoing
limitation on higher yielding investments shall not apply to
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_I__
( 1) proceeds of the Bonds invested for a
reasonable temporary period of 3 years or less
until such proceeds are needed for the purpose
for which the bonds are issued,
(2) amounts invested
bona fide debt service
earnings on such fund are
any bond year, and
in the Bond Fund ( a
fund) if the gross
less than $100,000 in
( 3) amounts deposited in the Reserve Fund
allocated to the Bonds not in excess of 10
percent of the proceeds of the Bonds.
(g) The City covenants to restrict the use of. the
proceeds of the Bonds in such manner and to such extent, as may
be necessary, so that the Bonds will not constitute arbitrage
bonds under section 148 of the Code and, to the extent
applicable, section 149(d) of the Code (relating to advance --
refundings). Any authorized representative of the City having
responsibility with respect to the issuance of the Bonds is
authorized and directed, alone or in conjunction with any other
official, employee or consultant of the City to give an
appropriate certificate on behalf of the City, for inclusion in
the transcript of proceedings for the Bonds, setting forth the
facts, estimates and circumstances and reasonable expectations
pertaining to section 148 of the Code and, to the extent
applicable, section 149(d) of the Code.
(h) The requirements of this Section are subject to,
and shall be interpreted in accordance with section 148 of the
Code and any regulations which may be issued thereunder.
(i) The City shall not, at any time prior to the
final Stated Maturity of the Bonds, enter into any transaction
that reduces the amount required to be paid to the United
States pursuant to this Section because such transaction
results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm• s length and had
the Yield of the Bonds not been relevant to either party.
(j) The City's payment of rebate to the United
States is additional consideration for the purchase of the
Bonds by the initial purchasers thereof and the loan of money
represented thereby, and is for the purpose of preserving the
exemption from federal income taxation of interest on the Bonds.
SECTION 15: Sale of the Bonds. The sale of the Bonds
to Merrill Lynch Capital Markets and Associates (herein
referred to as the "Purchasers") at the price of par and
accrued interest plus a premium of $ -0-to the date of
-22-17780
delivery is hereby approved and confirmed. Delivery of the
Bonds to the Purchasers shall occur as soon as possible upon
payment being made therefor in accordance with the terms of
sale.
SECTION 16: Control and Custody of Bonds. The Mayor of
the City shall be and is hereby authorized to take and have
charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
including the printing and supply of definitive Bonds, and
shall take and have charge and control of the Initial Bond(s)
pending the approval thereof by the Attorney General, the
registration thereof by the Comptroller of Public Accounts and
the delivery thereof to the Purchasers.
Furthermore, the Mayor, City Secretary, and City
Treasurer, any one or more of said officials, are hereby
authorized and directed to furnish and execute such documents
relating to the City and its financial affairs as may be
necessary for the issuance of the Bonds, the approval of the
Attorney General and the registration by the Comptroller of
Public Accounts and, together with the City's financial
advisor, bond counsel and the Paying Agent/Registrar, make the
necessary arrangements for the delivery of the Initial Bond(s)
to the Purchasers and the initial exchange thereof for
definitive Bonds.
SECTION 17: Official Statement. The Official
Statement prepared in the initial offering and sale of the
Bonds by the City, together with all addendas, supplements and
amendments thereto issued on behalf of the City, is hereby
approved as to form and content, and the City Counci 1 hereby
finds that the information and data contained in said Official
Statement pertaining to the City and its financial affairs is
true and correct in all material respects and no material facts
have been omitted therefrom which are necessary to. make the
statements therein, in light of the circumstances under which
they were made, not misleading. The use of such Official
Statement in the reoffering of the Bonds by the Purchasers is
hereby approved and authorized.
SECTION 18: Notices to Holders-Waiver. Wherever this
Ordinance provides for notice to Holders of any event, such
notice shall be sufficiently given· (unless otherwise herein
expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder appearing in the Security Register at the close of
business on the business day next preceding the mailing of such
notice.
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1 7 7 B D
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In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, sha 11 affect
the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Holder entitled
to receive such notice, either before or after the event with
respect to which such notice is given, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Paying Agent/Registrar, but such filing
shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
SECTION 19: Cancellation. All Bonds surrendered for
payment, redemption, transfer, exchange, or replacement, if
surrendered to the Paying Agent/Registrar, shall be promptly
cancelled by it and, if surrendered to the City, shall be
delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying
Agent/Registrar. The City may at any time deliver to the
Paying Agent/Registrar for cancellation any Bonds previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Bonds so delivered
shall be promptly cancelled by the Paying Agent/Registrar. All
cancelled Bonds held by the Paying Agent/Registrar shall be
returned to the City.
SECTION 20: Printed Opinion. The Purchasers'
obligation to accept delivery of the Bonds is subject to being
furnished a f ina 1 opinion of Fulbright & Jaworski, Attorneys,
Dallas, Texas, approving the Bonds as to their validity, said
opinion to be dated and delivered as of the date of delivery
and payment for the Bonds. Printing of a true and correct
reproduction of said opinion on the reverse side of·each of the
definitive Bonds is hereby approved and authorized.
SECTION 21: CUSIP Numbers. CUSIP numbers may be
printed or typea on the definitive Bonds. It is expressly
provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or
effect as regards the legality thereof and neither the City nor
attorneys approving the Bonds as to legality are to be held
responsible for CUSIP numbers incorrectly printed or typed on
the definitive Bonds.
SECTION 22: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be
construed to confer upon any person other than the City, the
Paying Agent/Registrar and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
-24-
1778D
"'·
or any provision hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive
benefit of the City, the Paying Agent/Registrar and the Holders.
SECTION 23: Inconsistent Provisions. All ordinances, ~
orders or resolutions, or parts thereof, which are in conflict -
or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict, and the provisions of
this Ordinance shall be and remain controlling as to the
matters contained herein.
SECTION 24: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the State
of Texas and the United States of America.
SECTION 25: Effect of Headings. The Section headings
herein are for convenience only and shall not affect the
construction hereof.
SECTION 26: Construction of Terms.
the context of this Ordinance, words of
shall be considered to include the plural,
number shall be considered to include the
of the masculine, feminine or neuter gender
to include the other genders.
If appropriate in
the singular number
words of the plural
singular, and words
shall be considered
SECTION 27: Severability. If any provision of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and the City Council hereby declares that this
Ordinance would have been enacted without such inva 1 id
provision.
SECTION 28: Public Meeting. It is officially found,
determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice
of the time, place, and subject matter of the public business
to be considered at such meeting, including this Ordinance, was
given, all as required by Article 6252-17, Vernon's Texas Civil
Statutes, as amended.
-25-I 7 7 8 D
,. .
SECTION 29: Effective Date. This Ordinance shall be in
force and effect from and after its passage on second and final
reading and IT IS SO ORDAINED.
PASSED AND ADOPTED -ON FIRST READING, this 23rd day of
April, 1987.
PASSED AND ADOPTED ON SECOND AND FINAL READING, this 24th
day of April, 1987.
CITY OF LUBBOCK, TEXAS
ayor
~~p?)J(
(City Seal)
-26-1 7 7 8 0
THE STATE OF TEXAS
COUNTY OF LUBBOCK
R-124
Before me Jane Roark a Notary Public in and for Lubbock County. Texas on this day
personallyappeared Twila Aufill, Account Manaser oftheSouthwesternNewspa-
pers Corporation, publishers of the Lubbock Avalanche-Journal -Morning. Evening and Sunday. who
being by me duly sworn did depose and say that said newsp'f_!)e~ h1s ~e¥ published continuously for more
than fifty-two weeks prior to the first insertion of this __ e __ a __ o __ c_e ___________ _
______________ No. 757541 at Lubbock County. Texas and the attached print-
ed copy of the I e I! a I Nat 1 c e is a true copy of the original and was printed in the Lubbock
Avalanche-Journal on the following dates: Ara ri I 25; MaY 2, 1987
157 words~ 82t -$12S.T4
Account Me1nel!er LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspapers Corporation
/ .~;-
NOTARY PIJBIJC in and For The State of Texas
My eo,nm1ssion Expires Oct. 24. 1999
Subscribed and sworn to before me this ..A.1h. day of _ .... M .... a ... Y~---· 19 87
FORM58-10
lo "
1' RMS1.\liO F A OF.
UIO ll()NDS: U:IIYIN$ A CON• . TINUING OIRECt ANNU;\L AO VAi.OREM TAX FOil THE PAY•
Ml!NT OF SAID IIONDS, ANO. IUISOLVING OTHER MATf'll:RS
INCIDll'tT ANO Rl!LA'l'l'.0 TO 'tHI; ISSUANCE, SAU, PAY•.
MEN'l' ANO C>ELIVERY OF SAIO
IIONOS, INCLUDING THE Al'+ PROVAL AND l)ISTRtautlON OF AN Qff'ICIAI.. $TAT&.MENT PIR'fAtNING 11:!ERl:TO; it.ND PROVIDING it.N. EFF£CTIVe '
OAT!!. ORDINANCE i'«fila .. ',
· AUTHORltlNG tHJ ISSUAN_CE OF 17 Mil.LION err, ,01' LUB· ~OC~.~EXAlrEl-lCTRIC LIGHT ANO POWER SYSTEM,0 'Rt!:VENUI!. BOND!!., $ERIU.1'81l ·PRESCRl&ING THE FORMS, TERMS, ANO PROV]SIONS ()F .. $All) &ON'C)S; Pl,.liiOGING THE N1<t lll!Vl:NUEilOF THE Cl'fV'.S 8LECTRIC 1,.IOHT ANO POWER · lYSTeM TO THI; PA'l'Ml;NT OF THE PIUNCIPAt.. OF ANO IN• TERsST ON $AID eoHtJS, Et<I· .
ACTING PROVI.SIONS INCIDENT AMO IU.LAtlJO TO Tloll! ISSU· . ANCI!, Pit.YMGNT, .UCURIT.Y,
SAL,E ANO 011.IVJR'f ()F SAll:l.
IONDI, lltCLIJ.l)IN4_ THE A'.; PlllOVAL AlilD (>IST,.tlllJTIQ ..
OP AN OPll'l(IA\. JTATliMINT P•rtTt.Ut!NG THRRl!!TO, ANO PROVU»NG AN IPl'IC:flVE CATI!. .
lt,ffl .. ______ :__._ .. ~
FULBRIGHT & JAWORSKI
Ms. Ranette Boyd
City Secretary
P.O. Box 2000
Lubbock, Texas 79457
Juny 7, 1987
2001 Bryan Tower, Suite 1400 Houston
Dallas, Tuas 15201 Washington, D.C.
Austin Telephone: 2141969-D022 San Antonio
Dallas
London
Zurich
RE $5,960,000 "City of Lubbock, Texas General Obligation
Bonds, Series 1987" dated April 15, 1987
Dear Ms. Boyd:
Our services relating to the above
been completed, enclosed herewith is a
proceedings for the City•s files.
styled Bonds having
certified record of
It has been an honor to serve the City in connection with
this financing. Should you have any questions concerning the
enclosures, please advise.
EMM/me
Enclosure
OS7ZL-SZ
Yours very truly,
Elbert M. Morrow
,...
RECORD OF PROCEEDINGS
RELATING TO
$5,960,000
GENERAL OBLIGATION BONDS
SERIES 1987
DATED APRIL 15, 1987
Issued By
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
Fulbright & Jaworski
2001 Bryan Tower, Suite 1400
Dallas, Texas 75201
-
FULBRIGHT & JAWORSKI
MAY 2 8 1987
2001 Bryan Tower, Suite 1400 Houston
Dallas, Texas 16201 Washington, D.C.
Austin
Telephone: 2141969-0022 San Antonio
Dallas
London
Zurich
IN REGARD to the authorization and issuance of the "City
of Lubbock, Texas, General Obligation Bonds, Series 1987" (the
"Bonds"), dated April 15, 1987 (the "Bond Date"), in the
principal amount of $5,960,000, we have examined into the
legality and validity of the issuance thereof by the City of
Lubbock, Texas (the "City"), which Bonds are issuable in fully
registered form only, in denominations of $5,000 or any integral
multiple thereof (within a maturity), have stated maturities of
February 15, 1988, through February 15, 2007, unless redeemed
prior to maturity in accordance with the terms stated on the face
of the Bonds, and bear interest on the unpaid principal amount
from the Bond Date at the following rates per annum:
Bonds maturing in the years 1988 through 1995 at 9.50%;
Bonds maturing in the year 1996 at 7.80\;
Bonds maturing in the year 1997 at 7.30%;
Bonds maturing in the year 1998 at 7.40%;
Bonds maturing in the year 1999 at 7.50%;
Bonds maturing in the year 2000 at 7.60%;
Bonds maturing in the year 2001 at 7.70%;
Bonds maturing in the year 2002 at 7.75%;
Bonds maturing in the year 2003 at 7.80%;
Bonds maturing in the year 2004 at 7.90%; and
Bonds maturing in the years 2005 through 2007 at 6.50%;
such interest being payable on February 15 and August 15 in each
year, commencing February 15, 1988, to the registered owners
thereof shown on the registration books of the Paying
Agent/Registrar on the Record Date (stated on the face of the
Bonds).
-
,,,...
Page 2 of Legal Opinion of Fulbright & Jaworski
Re: $5,960,000 "City of Lubbock, Texas, General
Obligation Bonds, Series 1987", dated April 15, 1987
WE HAVE SERVED AS BOND COUNSEL for the City solely to pass
upon the legality and validity of the issuance of the Bonds under
the Constitution and laws of the State of Texas, and with respect
to the exemption of the interest on the Bonds from federal income
taxes and none other. We have not been requested to investigate
or verify, and have not independently investigated or verified,
any records, data, or other. material relating to the financial
condition or capabilities of the City. Our examinations into the
legality and validity of the Bonds included a review of the
applicable and pertinent provisions of the Constitution and laws
of the State of Texas, a transcript of certified proceedings of
the City relating to the authorization and issuance of the Bonds,
including the ordinance authorizing their issuance (the
"Ordinance"), customary certifications and opinions of officials
of the City and other pertinent showings, and an examination of
the Bond executed and delivered initially by the City, which we
found to be in due form and properly executed.
BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that the
Bonds have been duly authorized by the City in compliance with
the Constitution and laws of the State of Texas now in force, and
the Bonds issued in compliance with the provisions of the
Ordinance are valid and legally binding obligations of the City,
payable from the proceeds of an ad valorem tax levied, within the
limitations prescribed by law, upon all taxable property in the
City.
IT IS FURTHER OUR OPINION THAT, assuming continuing
compliance after the date hereof by the City with the provisions
of the Ordinance and in reliance upon representations and
certifications of the City made in a certificate of even date
herewith pertaining to the use, expenditure, and investment of
the proceeds of the Bonds, (1) interest on the Bonds will be
excludable from the gross income, as defined in section 61 of the
Internal Revenue Code of 1986, as amended to the date hereof, of
the owners thereof for federal income tax purposes, pursuant to
section 103 of such Code, existing regulations, published
rulings, and court decisions thereunder, and (2) interest on the
Bonds will not be included in computing the alternative minimum
taxable income of individuals or, except as hereinafter
described, corporations. Interest on all tax-exempt obligations,
such as the Bonds, owned by a corporation will be included in
such corporation"s adjusted net book income, for tax years
beginning in 1987, 1988, and 1989, or adjusted current earnings,
for tax years beginning after 1989, for purposes of calculating
the alternative minimum taxable income of such corporations,
1 9 9 9 D
-•
-
Page 3 of Legal Opinion of Fulbright & Jaworski
Re: $5,960,000 "City of Lubbock, Texas, General
Obligation Bonds, Series 1987", dated April 15, 1987
other than an S corporation, a mutual fund, a real estate
mortgage investment conduit (REMIC), or a real estate investment
trust (REIT). A corporation's alternative minimum taxable income
is the basis on which the alternative minimum tax imposed by the
Tax Reform Act of 1986 and the environmental tax imposed by the
Superfund Revenue Act of 1986 will be computed for tax years
beginning after December 31, 1986.
WE EXPRESS NO OPINION with respect to any other federal,
state, or local tax consequences under present law or any
proposed legislation resulting from the receipt or accrual of
interest on, or the acquisition or disposition of, the Bonds.
Ownership of tax-exempt obligations such as the Bonds may result
in collateral federal tax consequences to, among others,
financial institutions, property and casualty insurance
companies, certain foreign corporations doing business in the
United States, individual recipients of Social Security or
Railroad Retirement benefits, and taxpayers who may be deemed to
have incurred or continued indebtedness to purchase or carry
tax-exempt obligations.
1999D
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 as follows:
1. That on the 12th day of March, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at the City Hall, Lubbock, Texas; the duly constituted
members of the Council being as follows:
B. C. McMINN
T. J PATTERSON
GEORGE CARPENTER
GARY D. PHILLIPS
ROBERT A. NASH
JOAN BAKER
MAGGIE TREJO
)
)
)
)
)
MAYOR
MEMBERS OF COUNCIL
and all of said persons were present at said meetings, except
the following: __________ . Among other business
considered at said meeting, the attached resolution entitled:
"A RESOLUTION by the City Council of the City of
Lubbock, Texas, relating to the issuance and
sale of $5,960,000 'CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 1987,' and
$7,000,000 'CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1987'; authorizing the publication of the Notices
of Sale pertaining to each issue of the bonds;
and declaring an emergency.•
was introduced and submitted to the Counci 1 for passage and
adoption. After presentation and due consideration of the
resolution, and upon a -motion being made by _Councilmember
George Carpenter and seconded by Councilmember T.J. Patterson ,
the resolution was finally passed and adopted as an emergency
to become effective immediately by the Council by the following
vote:
___.Z----voted "For• voted "Against• abstained
-
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those persons shown above and, according to the records of my
office, advance notice of the time, place, and purpose of the
meeting was given to each member of the Council; and that said
meeting, and the deliberation of the aforesaid public business,
was open to the public and written notice of said meeting,
including the subject of the entitled resolution, was posted
and given in advance thereof in compliance with the provisions
of Article 6252-17, Section 3A, V.A.T.C.S.
IN WITNESS WHEREOF, I hereunto signed my name
officially and affixed the seal of said City, this the 12th day
of March, 1987.
(City Seal)
17760
~ . /--~ ' /
>---?::::Z'.3=. ~ • '
City ~ecretary
city: to f 8·· Lubbock, Texas Ranet e oyd
-2-
.:!
••
-
Re solution #2541
March .12. 1987 Agenda Item #28
A RESOLUTION by the City Council of the City of
Lubbock, Texas, relating to the the issuance and
sale of $5,960,000 "CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONDS, SERIES 19 87," and
$7,000,000 "CITY OF LUBBOCK, TEXAS, ELECTRIC
LIGHT AND POWER SYSTEM REVENUE BONDS, SERIES
1987" authorizing the publication of the Notices
of Sale pertaining to each issue of the bonds;
and declaring an emergency.
WHEREAS, Notices of Sale have been prepared by First
Southwest Company, the City•s financial advisor, in connection
with the issuance and sale of $5,960,000 "City of Lubbock,
Texas, General Obligation Bonds, Series 1987" and $7,000,000
"City of Lubbock, Texas, Electric Light and Power System
Revenue Bonds, Series 1987" and submitted to the Council and
staff of the City for review and comments; and
WHEREAS, the Counci 1 finds and determines that the
aforesaid documents pertaining to the sale of each issue of
bonds should be approved and authorization should be given to
the City Secretary to proceed with the publication of an
advertisement for the sale of the bonds in accordance with
Article VIII, Section 5 of the City Charter of the City; and
WHEREAS, it is hereby determined that the necessity
for the immediate preservation of the public peace, property,
healthy or saftey of the citizens of the City of Lubbock and to
serve the best interest of the City of Lubbock by providing the
improvements to be financed by the sale of bonds at the
earliest possible date constitutes and creates an emergency and
an urgent public necessity requiring the suspension of any
rules providing for ordinances or resolutions to be read more
than one time or at more than one meeting of the City Council
and that this Resolution be declared an emergency measure to
become effective immediately from and after its passage; now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: That the Notice of Sale prepared in
connection with the issuance and sale of $5,960,000 "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987" is
hereby approved, such document being attached hereto as Exhibit
A and incorporated herein by reference and made a part of this
resolution for all purposes.
..
SECTION 2: That the Notice of Sale prepared in
connection with the issuance and sale of $7,000,000 "CITY OF
LUBBOCK, TEXAS, ELECRTIC LIGHT AND POWER SYSTEM REVENUE BONDS,
SERIES 1987" is hereby approved, such document being attached
hereto as Exhibit B and incorporated herein by reference and
made a part of this resolution for all purposes.
SECTION 3: First Southwest Company is further
authorized and directed to prep a re for each issue of bonds an
"Official Statement" and an additional "Notice of Sale," both
of which are for distribution to prospective bidders with
respect to said Bonds, and the same shall be reviewed by this
Council at the meeting to be held on March 26, 1987.
SECTION 4: That the fact that it is necessary for the
immediate preservation of the public peace, property, hea 1th,
or safety of the citizens of the City of Lubbock and in the
best interests of the City of Lubbock to provide for
improvements to be made with the proceeds from the sale of the
bonds herein described at the earliest possible date
constitutes and creates an emergency and an urgent public
necessity requiring the suspension of any rules providing for
ordinances and resolutions to be read more than one time or at
more than one meeting of the City Council, and such rules and
provisions are accordingly suspended, and this Resolution is
declared to be an emergency measure, and shall take effect and
be in full force immediately from and after its passage on the
date shown below.
PASSED AND APPROVED, this the 12th day of March, 1987.
ATTEST:
~ /--~ .R
-47?(a=> ~
Citycretary,
City of Lubbock, Texas Ranette Boyd
(City Seal)
-2-
ayor, City of Lubbock, Texas B. C. McMinn
NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
EXHIBIT A
The City Council of the City of Lubbock, Texas, will receive
sea led bids at the City Counci I Chambers, Muni c i pa I Comp lex, 1625
13th Street, Lubbock, Texas, unti I 11:00 A.M., Central Daylight Time,
Thursday, Apri I 23, 1987, for the fol lowing described Bonds:
$5,960,000 City of Lubbock, Texas, General Obligation
Bonds, Series 1987
Dated Apri I 15, 1987; principal due February 15
of each year as follows: $260,000 in 1988; $300,000
each year 1989 through 2007; interast payable February
15, 1988, and each August 15 and February 15
thereafter. The City reserves the right, at its
option, to redeem Bonds maturing on and after February
15, 1998, on February 15, 1997, or any interest
payment date thereafter, at the par value thereof
plus accrued interest to the date fixed for payment.
Further information may be obtained from the Division ot
Finance, City of Lubbock, P. O. Box 2000, Lubbock, Texas 79457; or from
First Southwest Company, 800 Dal las Bui I ding, 1807 Commerce St., Dal las,
Texas 75201, Financial Consultants to the City.
(City Seal)
Ranette Boyd
City Secretary
City of Lubbock
If. I
NOTICE OF SALE
CITY OF LUBBOCK, TEXAS
EXHIBIT B
The City Council of the City of Lubbock, Texas, will receive
sealed bids at the City Counci I Chambers, Municipal Complex, 1625
13th Street, Lubbock, Texas, unti I 11:00 A.M., Central Daylight Time,
Thursday, Apri I 23, 1987, for the fol lowing described Bonds:
$7,000,000 City of Lubbock, Texas, Electric Light
and Power System Revenue Bonds, Series 1987
Dated Apr i I 15, 1987; pr inc i pa I due Apr i I 15 of
each year as fol lows: $350,000 each year 1988 through
2007; interest payable October 15, 1987, and each
April 15 and October 15 thereafter. The City reserves
the right, at its option, to redeem Bonds maturing
on and after Apri I ·15, 1998, on Apri I 15, 1997,
or any interest payment date thereafter, at the
par va I ue thereof p I us accrued l nterest to the date
fixed for payment.
Further information may be obtained from the Division of
Finance, City of Lubbock, P. 0. Box 2000, Lubbock, Texas 79457; or from
First Southwest Company, 800 Da I I as Bu l Id i ng, 1807 Commerce St., Da I I as,
Texas 75201, Financial Consultants to the City.
(City Seal)
Ranette Boyd
City Secretary
City of Lubbock
AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
' , after,;l;'elir11arY lS,: ttll, on BEFORE ME, the undersigned authority, on :l'e1>ruarvu.1,t1,ora11v.1n-
personally appeared Twila Aufill , who, afte, :!t~'Mt~m:.1tl!l'::~:.;i 1
me duly sworn, deposes and says that (s)he is the Ac ,::~~·,:;;'::;1'~~=:~•he
i f'urthe\' ·1111ormat.1on mav Ile ob-' the Lubbock Avalanche Journal I and that a' true and C •altu1'Clfrom:tlleOivlslo11o#,Fl•: nance. C:IIY Of Lubbock. P. 0. e.ox I of the "NOTICE OF SALE," hereto attached, was publis 2000.Lvb1>0c1t,n~u1t4s11or from first Soulll-t Company,'
Paper on the following dates: iooOaflas8ulldlno,ll07Com• * Dalla1,, 't!!US. 75201, Fl•! tnlS,,f?'lhltCUY,,. . ·
March 22, 1987;
March 29, 1987;
April 5, 1987;
April 12, 1987; and
April 19, 1987;
the date of the first of such publications being at least
thirty (30) days prior to the date of the public sale for the
bonds referred to therein.
SWORN TO AND SUBSCRIBED BEFORE ME, this the 20th day
of APril , 1987.
(Notary Seal)
·17840
Notar ublic, State of Texas
My Co ission Expires:10/24/90
Jane Roark
! i ,,.._,
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 as follows:
l. That on the 23rd day of Apri 1, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. C. McMINN )
)
)
)
)
)
)
MAYOR
T. J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
MEMBERS OF COUNCIL
GEORGE W. CARPENTER
ROBERT A. NASH
all of said persons were present at said meeting, except the
following: ------------=------,------Among other
business considered at said meeting, the attached ordinance
entitled:
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1987"; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale,
payment and delivery of said bonds,
including the approval and distribution of
an Official Statement pertaining thereto;
and providing an effective date.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a mot ion made byc:.'.;,..,,,.-• .,,.,,,,.,,_..,., &<ut.. and
seconded by~""''"'.....,.,~ R9rrE1uA1 , the ordinance was duly passed and
adopted on first reading by the Council by the following vote:
__.,_? __ voted "For" __..(2,___voted "Against" (? abstained
, ,......,
all as shown in the official Minutes of the Counci 1 for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those perons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof 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
officially and affixed the seal of said City, this the 23rd day
of April, 1987.
~~~
City of Lubbock, Texas
(City Seal)
-2-2 0 l 7 0
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 as follows:
1. That on the 24th day of April_, 1987, the City
Council of the City of Lubbock, Texas, convened in special
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Counci 1 being as
follows:
B. C. McMINN )
)
)
)
)
)
)
MAYOR
T. J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
MEMBERS OF COUNCIL
GEORGE W. CARPENTER
ROBERT A. NASH
all of said persons were present at said meeting, except the
following: -----------,------,,-----Among other
business considered at said meeting, the attached ordinance
entitled:
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1987"; specifying the terms and
features of said bonds; levying a continuing
direct annual ad valorem tax for the payment
of said bonds; and resolving other matters
incident and related to the issuance, sale,
payment and delivery of said bonds,
including the approval and distribution of
an Official Statement pertaining thereto;
and providing an effective date.
was introduced and submitted to the Counci 1 for passage and
adoption. After presentation and due consideration of the
ordinance, and upon a motion made by(!.,.,, • .,,,._ __ ,.;,&'"..... and
seconded bye!M,,,_,,.,.,_.,,,'"'fi,:ro the ordinance was finally passed
and adopted on second and fina 1 reading by the Counci 1 to be
effective immediately by the following vote:
7 voted "For" __,(J...__voted "Against" e:, abstained
r I
,,...
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
2. That the attached ordinance is a true and correct
copy of the original on file in the official records of the
City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those perons shown above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled ordinance, was
posted and given in advance thereof 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
officially and affixed the seal of said City, this the 24th day
of April, 1987.
(City Seal)
-2-2 0 I 8 D
,. I
ORDINANCE NO. 9t!:Jt:,,1
First Reading
Apr i 1 23, 1987
Agenda Item #23
Second Reading
April 24, 1987
Agenda I tern #4
AN ORDINANCE authorizing the issuance of "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1987"; specifying the terms and
features of said bonds; levying a
continuing direct annual ad valorem tax for
the payment of said bonds; and resolving
other matters incident and related to the
issuance, sale, payment and delivery of
said bonds, including the approval and
distribution of an Official Statement
pertaining thereto; and providing an
effective date.
WHEREAS, the City Council of the City of Lubbock, Texas,
hereby finds and determines that $5,960,000 in principal amount
of general obligation bonds approved and authorized to be
issued at elections held on May 21, 1977, and November 21, 1981,
should be issued and sold at this time; a summary of the
general obligation bonds authorized at said election, the
principal amount authorized, amounts heretofore issued and
being issued pursuant to this ordinance and amounts remaining
to be issued subsequent hereto being as follows:
Principal Amounts Amounts
Date Amount Heretofore Being Un issued
Purpose Authorized Authorized Issued Issued Balance
Waterworks System 05/21/77 16,775,000 12,125,000 4,650,000 -0-
Imp. & Ext.
Se~er System 05/21/77 3,303,000
Imp. & Ext.
Street Improvement 05/21/77 4,782,000
Storm Sewer 05/21/77 473,000
& Drainage
Waterworks System 11/21/81 5,226,000
Imp. & Ext.
Street Improvem~nt 11/21/81 9,495,000
Fire Department 11/21/81 877,000
2,030,000
3,693,000
100,000
2,513,000
8,703,000
410,000
145,000 1,128,000
-0-1,089,000
373,000 -0-
-0-2,713,000
792,000 -0-
-0-467,000
AND WHEREAS, the City Council hereby reserves and retains
the right to issue the balance of unissued bonds approved at
said election in one or more installments when, in the judgment
of the Council, funds are needed to accomplish the purposes for
which such bonds were voted; now, therefore,
9· I
,-..
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
SECTION 1: Authorization -Designation-Principal Amount-
Purpose. General obligation bonds of the City shall be and are
hereby authorized to be issued in the aggregate principal
amount of $5,960,000, to be designated and bear the title "CITY
OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987"
(hereinafter referred to as the "Bonds"), for the purpose of
making permanent public improvements, to wit: $4,650,000 for
constructing improvements and extensions to the City's
Waterworks System; $145,000 for constructing improvements and
extensions to the City• s Sanitary Sewer System; $373,000 for
constructing, enlarging, extending and installing storm sewers,
drains and gutters and other improvements incidental thereto,
including the acquisition of land for drainage purposes and
drainage area modifications; and $792,000 for constructing
street improvements in and for said City, including lighting,
in accordance with authority conferred at the aforesaid
elections and in conformity with the Cons ti tut ion and laws of
the State of Texas.
SECTION 2: Fully Registered Obligations -Bond Date -
Authorized Denominations-Stated Maturities-Interest Rates. The
Bonds shall be issued as fully registered obligations only,
shall be dated April 15, 1987 (the "Bond Date"), shall be in
denominations of $5,000 or any integral multiple (within a
Stated Maturity) thereof, and sha 11 become due and payable on
February 15 in each of the years and in principal amounts (the
"Stated Maturities") and bear interest at the rate(s) per annum
in accordance with the following schedule:
Year of Principal Interest
Stated Maturity Amount Rate{sl
1988 $ 260,000 9.50\
1989 300,000 9.50\
1990 300,000 9.50\
1991 300,000 9.50\
1992 300,000 9.50\
1993 300,000 9.50%
1994 300,000 9.50\
1995 300,000 9.50\
1996 300,000 7.80\
1997 300,000 7.30\
1998 300,000 7.40\
1999 300,000 7.50\
2000 300,000 7.60\
2001 300,000 7.70\
2002 300,000 7.75\
2003 300,000 7.80\
2004 300,000 7.90\
2005 300,000 6.50\
2006 300,000 6.50\
2007 300,000 6.50\
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The Bonds shall bear interest on the unpaid principal
amounts from the Bond Date at the rate(s) per annum shown above
in this Section (calculated on the basis of a 360-day year of
twelve 30-day months). Interest on the Bonds shall be payable
on February 15 and August 15 in each year, commencing
February 15, 1988.
SECTION 3: Terms of Payment-Paying Agent/Registrar.
The principal of, premium, if any, and the interest on the
Bonds, due and payable by reason of maturity, redemption or
otherwise, shall be payable only to the registered owners or
holders of the Bonds (hereinafter called the ... Holders")
appearing on the registration and transfer books (the "Security
Register") maintained by the Paying Agent/Registrar and the
payment thereof shall be in any coin or currency of the United
States of America, which at the time of payment is legal tender
for the payment of public and private debts, and shall be
without exchange or collection charges to the Holders.
The selection and appointment of Texas Commerce Bank,
N.A., Lubbock, Texas to serve as Paying Agent/Registrar for the
Bonds is hereby approved and confirmed. The City covenants to
maintain and provide a Paying Agent/Registrar at all times
until the Bonds are paid and discharged, and any successor
Paying Agent/Registrar shall be a bank, trust company,
financial institution or other entity qualified and authorized
to serve in such capacity and perform the duties and services
of Paying Agent/Registrar. Upon any change in the Paying
Agent/Registrar for the Bonds, the City agrees to promptly
cause a written notice thereof to be sent to each Holder by
United States Mail, first class postage prepaid, which notice
shall also give the address of the new Paying Agent/Registrar.
Principal of and premium, if any, on the Bonds shall be
payable at the Stated Maturities or the redemption thereof,
only,upon presentation and surrender of the Bonds to the Paying
Agent/Registrar at its principal office. Interest on the Bonds
shall be paid to the Holders whose name appears in the Security
Register at the close of business on the Record Date (the last
business day of the month next preceding each interest payment
date) and shall be paid by the Paying Agent/Registrar (i) by
check sent United States Mail, first class postage prepaid, to
the address of the Holder recorded in the Security Register or
(ii) by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the Holder. If the date for the payment of the principal of or
interest on the Bonds shall be a Saturday, Sunday, a legal
holiday, or a day on which banking ins ti tut ions in the City
where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such.payment
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shall be the next succeeding day which is not such a Saturday,
Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the
same force and effect as if made on the original date payment
was due.
In the event of a nonpayment of interest on a scheduled
payment date, and for thirty {30) days thereafter, a new record
date for such interest payment {a "Special Record Date") will
be established by the Paying Agent/ Registrar, if and when
funds for the payment of such interest have been received from
the City. Notice of the Special Record Date and of the
scheduled payment date of the past due interest (which shall be
15 days after the Special Record Date) shall be sent at least
five {5) business days prior to the Special. Record Date by
United States Mail, first class postage prepaid, to the address
of each Holder appearing on the Security Register at the close
of business on the last business day next preceding the date of
mailing of such notice.
SECTION 4: Redemption. (a) Optional Redemption. The
Bonds having Stated Maturities on and after February 15, 1998,
shall be subject to redemption prior to maturity, at the option
of the City, in whole or in part in principal amounts of $5,000
or any integral multiple thereof (and if within a Stated
Maturity by lot by the Paying Agent/Registrar), on February 15,
1997 or on any interest payment date thereafter at the
redemption price of par plus accrued interest to the date of
redemption.
(b) Exercise of Redemption Option. At least forty-five
{45) days prior to a redemption date for the Bonds {unless a
shorter notification period shall be satisfactory to the Paying
Agent/Registrar), the City shall notify the Paying
Agent/Registrar of the decision to redeem Bonds, the principal
amount of each Stated Maturity to be redeemed, and the date of
redemption therefor. The decision of the City to exercise the
right to redeem Bonds shall. be entered in the minutes of the
governing body of the City.
{c) Selection of Bonds for Redemption. If less than all
Outstanding Bonds of the same Stated Maturity are to be
redeemed on a redemption date, the Paying Agent/ Registrar
shall treat such Bonds as representing the number of Bonds
Outstanding which is obtained by dividing the principal amount
of such Bonds by $5,000 and shall select the Bonds, or
principal amount thereof, to be redeemed within such Stated
Maturity by lot.
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.,.... . .
,...
(d) Notice of Redemption. Not less than thirty (30) days
prior to a redemption date for the Bonds, a notice of
redemption shall be sent by United States Mail, first class
postage prepaid, in the name of the City and at the City's
expense, to each Holder of a Bond to be redeemed in whole or in
part at the address of the Holder appearing on the Security
Register at the close of business on the business day next
preceding the date of mailing such notice, and any notice of
redemption so mailed shall be conclusively presumed to have
been duly given irrespective of whether received by the Holder.
Al 1 notices of redemption sha 11 ( i) specify the date of
redemption for the Bonds, (ii) identify the Bonds to be
redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount. thereof to be
redeemed, (iii) state the redemption price, (iv) state that the
Bonds, or the portion of the principal amount thereof to be
redeemed, shall become due and payable on the redemption date
specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue
from and after the redemption date, and (v) specify that
payment of the redemption price for the Bonds, or the principal
amount thereof to be redeemed, shall be made at the principal
office of the Paying Agent/Registrar only upon presentation and
surrender thereof by the Holder. If a Bond is subject by its
terms to prior redemption and has been called for redemption
and notice of redemption thereof has been duly given as
hereinabove provided, such Bond (or the principal amount
thereof to be redeemed) shall become due and payable and
interest thereon shall cease to accrue from and after the
redemption date therefor; provided moneys sufficient for the
payment of such Bond (or of the principal amount thereof to be
redeemed) at the then applicable redemption price are held for
the purpose of such payment by the Paying Agent/Registrar.
SECTION 5: Registration -Transfer-Exchange of Bonds-
Predecessor Bonds. A security Register relating to the
registration, payment, and transfer or exchange of the Bonds
shall at all times be kept and maintained by the City at the
principal office of the Paying Agent/Registrar, as provided
herein and in accordance with the provisions of an agreement
with the Paying Agent/Registrar and such rules and regulations
as the Paying Agent/Registrar and the City may prescribe. The
Paying Agent/Registrar shall obtain, record, and maintain in
the Security Register the name and address of each and every
owner of the Bonds issued under and pursuant to the provisions
of this Ordinance, or if appropriate, the nominee thereof. Any
Bond may be transferred or exchanged for Bonds of other
authorized denominations by the Holder, in person or by his
duly authorized agent, upon surrender of such Bond to the
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.,, .•
Paying Agent/Registrar for cancellation, accompanied by a
written instrument of transfer or request for exchange duly
executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender of any Bond for transfer at the principal
office of the Paying Agent/Registrar, the Paying
Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of
authorized denominations and having the same Stated Maturity
and of a like aggregate principal amount as the Bond or Bonds
surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for
other Bonds of authorized denominations and having the same
Stated Maturity, bearing the same rate of interest and of like
aggregate principal amount as the Bonds surrendered for
exchange, upon surrender of. the Bonds to be exchanged at the
principal office of the Paying Agent/ Registrar. Whenever any
Bonds are surrendered for exchange, the Paying Agent/Registrar
shall register and deliver new Bonds to the Holder requesting
the exchange.
All Bonds issued in any transfer or exchange of Bonds
shall be delivered to the Holders at the principal office of
the Paying Agent/Registrar or sent by United States Mail, first
class, postage prepaid to the Holders, and, upon the
registration and delivery thereof, the same shall be the valid
obligations of the City, evidencing the same obligation to pay,
and entitled to the same benefits under this Ordinance, as the
Bonds surrendered in such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this
Section shall be made without expense or service charge to the
Holder, except as otherwise herein provided, and except that
the Paying Agent/Registrar shall require payment by the Holder
requesting such transfer or exchange of any tax or other
governmental charges required to be paid with respect to such
transfer or exchange.
Bonds cancelled by reason of an exchange or transfer
pursuant to the prov1s1ons hereof are hereby defined to be
"Predecessor Bonds," evidencing all or a port ion, as the case
may be, of the same obligation to pay evidenced by the new Bond
or Bonds registered and delivered in the exchange or transfer
therefor. Additionally, the term "Predecessor Bonds" shall
include any mutilated, lost, destroyed, or stolen Bond for
which .a replacement Bond has been issued, registered and
delivered in lieu thereof pursuant to the provisions of
Section 10 hereof and such new replacement Bond shall be deemed
to evidence the same obligation as the mutilated, lost,
destroyed, or stolen Bond.
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,..
Neither the City nor the Paying Agent/ Registrar shall be
required to issue or transfer to an assignee of a Holder any
Bond called for redemption, in whole or in part, within 45 days
of the date fixed for the redemption of such Bond; provided,
however, such limitation on transferability shall not be
applicable to an exchange by the Holder of the unredeemed
balance of a Bond called for redemption in part.
SECTION 6: Execution -Registration. The Bonds shall
be executed on behalf of the City by the Mayor under its seal
reproduced or impressed thereon and countersigned by the City
Secretary. The signature of said officers on the Bonds may be
manual or facsimile. Bonds bearing the manual or facsimile
signatures of individuals who are or were the proper officers
of the City on the Bond Date shall be deemed to be duly
executed on behalf of the City, notwithstanding that such
individuals or either of them shall cease to hold such offices
at the time of delivery of the Bonds to the initial
purchaser(s) and with respect to Bonds delivered in subsequent
exchanges and transfers, all as authorized and provided in the
Bond Procedures Act of 1981, as amended.
No Bond shall be entitled to any right or benefit under
this Ordinance, or be valid or obligatory for any purpose,
unless there appears on such Bond either a certificate of
registration substantially in the form provided in Section BC,
manually executed by the Comptroller of Public Accounts of the
State of Texas, or his duly authorized agent, or a certificate
of registration substantially in the form provided in
Section 8D, manually executed by an authorized officer,
employee or representative of the Paying Agent/Registrar, and
either such certificate duly signed upon any Bond shall be
conclusive evidence, and the only evidence, that such Bond has
been duly certified, registered and delivered.
SECTION 7: Initial Bond(s). The Bonds herein
authorized shall be initially issued either (i) as a single
fully registered bond in the total principal amount of
$5,960,000 with principal installments to become due and
payable as provided in Section 2 hereof and numbered T-1, or
(ii) as twenty (20) fully registered bonds, being one bond for
each year of maturity in the applicable principal amount and
denomination and to be numbered consecutively from T-1 and
upward (hereinafter called the "Initial Bond(s)") and, in
either case, the Initial Bond(s) shall be registered in the
name of the initial purchaser(s) or the designee thereof. The
Initial Bond(s) shall be the Bonds submitted to the Office of
the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of
Public Accounts of the State of Texas and delivered to the
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initial purchaser(s). Any time after the delivery of the
Initial Bond(s), the Paying Agent/Registrar, pursuant to
written instructions from the initial purchaser(s), or the
designee thereof, shall cancel the Initial Bond(s) delivered
hereunder and exchange therefor definitive Bonds of authorized
denominations, Stated Maturities, principal amounts and bearing
applicable interest rates for transfer and delivery to the
Holders named at the addresses identified therefor; all
pursuant to and in accordance with such written instructions
from the initial purchaser(s), or the designee thereof, and
such other information and documentation as the Paying
Agent/Registrar may reasonably require.
SECTION 8: Forms. A. Forms Generally. The Bonds,
the Registration Certificate of the Comptroller of Public
Accounts of the State of Texas, the Registration Certificate of
Paying Agent/Registrar, and the form of Assignment to be
printed on each of the B.onds, shall be substantially in the
forms set forth in this Section with such appropriate
insertions, omissions, subs ti tut ions, and other variations as
are permitted or requi ced by this Ordinance and may have such
letters, numbers, or other marks of identification ( including
identifying numbers and letters of the Committee on Uniform
Securities Identification Procedures of the American Bankers
Association) and such legends and endorsements ( including any
reproduction of an opinion of counsel) thereon as may,
consistently herewith, be established by the City or determined
by the officers executing such Bonds as evidenced by their
execution. Any portion of the text of any Bonds may be set
forth on the reverse thereof, with an appropriate reference
thereto on the face of the Bond.
The definitive Bonds shall be printed, lithographed, or
engraved or produced in any other similar manner, all as
determined by the officers executing such Bonds as evidenced by
their execution, but the Initial Bond(s) submitted to the
Attorney General of Texas may be typewritten or photocopied or
otherwise reproduced.
-8-1778D
REGISTERED
NO.
Bond Date:
B.
Registered Owner:
Principal Amount:
Form of Definitive Bond.
REGISTERED $ ____ _
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF LUBBOCK, TEXAS,
GENERAL OBLIGATION BONO, SERIES 1987
Interest Rate: Stated Maturity: CUSIP NO:
DOLLARS
The City of Lubbock (hereinafter referred to as the
"City•), a body corporate and political subdivision in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered Owner named above, or the
registered assigns thereof, on the Stated Maturity date
specified above the Principal Amount hereinabove stated (or so
much thereof as shall not have been paid upon prior redemption)
and to pay interest on the unpaid principal amount hereof from
the Bond Date at the per annum rate of interest specified above
computed on the basis of a 360-day year of twelve 30-day
months; such interest being payable on February 15 and
August 15 in each year, commencing February 15, 1988. Principal
of this Bond is payable at its Stated Maturity or redemption to
the registered owner hereof, upon presentation and surrender,
at the principal office of the Paying Agent/Registrar executing
the registration certificate appearing hereon, or its
successor. Interest is payable to the registered owner of this
Bond (or one or more Predecessor Bonds, as defined in the
Ordinance hereinafter referenced) whose name appears on the
"Security Register" maintained by the Paying Agent/Registrar at
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date, and interest shall be paid by the Paying Agent/Registrar
by check sent United States Mai 1, first class postage prepaid,
.to the address of the registered owner recorded in the Security
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Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the registered owner. All payments of principal of, premium,
if any, and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
This Bond is one of the series specified in its title
issued in the aggregate principal amount of $5,960,000 (herein
referred to as the "Bonds") for the purpose of making permanent
public improvements, to wit: $4,650,000 for constructing
improvements and extensions to the City• s Waterworks System;
$145,000 for constructing improvements and extensions to the
City's Sanitary Sewer System; $373,000 for constructing,
enlarging, extending and installing storm sewers, drains and
gutters and other improvements incidental thereto, including
the acquisition of land for drainage purposes and drainage area
modifications; and $792,000 for constructing street
improvements in and for said City, including lighting, under
and in strict conformity with the Constitution and laws of the
State of Texas and pursuant to an Ordinance adopted by the City
Council of the City (herein referred to as the "Ordinance•).
The Bonds maturing on and after February 15, 1998, may be
redeemed prior to their Stated Maturities, at the option of the
City, in whole or in part in principal amounts of $5,000 or any
integral multiple thereof (and if within a Stated Maturity by
lot by the Paying Agent/Registrar), on February 15, 1997, or on
any interest payment date thereafter, at the redemption price
of par, together with accrued interest to the date of
redemption and upon 30 days prior written notice being sent by
United States Mail, first class postage prepaid, to the
registered owners of the Bonds to be redeemed, and subject to
the terms and provisions relating thereto contained in the
Ordinance. If this Bond (or any portion of the principal sum
hereof) shall have been duly called for redemption and notice
of such redemption duly given, then upon such redemption date
this Bond (or the portion of the principal sum hereof to be
redeemed) shall become due and payable, and interest thereon
shall cease to accrue from and after the redemption date
therefor, provided moneys for the payment of the redemption
price and the interest on the principal amount to be redeemed
to the date of redemption are held for the purpose of such
payment by the Paying Agent/Registrar.
In the event of a partial redemption of the principal
amount of this Bond, payment of the redemption price of such
principal amount shall be made to the registered owner only
-10-1778D
upon presentation and surrender of this Bond to the Paying
Agent/Registrar at its principal office and there shall be
issued, without charge therefor to the registered owner hereof,
a new Bond or Bonds of like maturity and interest rate in any
authorized denominations provided by the Ordinance for the then
unredeemed balance of the principal sum hereof. If this Bond is
selected for redemption, in whole or in part, the City and the
Paying Agent/Registrar shall not be required to transfer this
Bond to an assignee of the registered owner within 45 days of
the redemption date therefor; provided, however, such
limitation on transferability shall not be applicable to an
exchange by the registered owner of the unredeemed balance
hereof in the event of its redemption in part.
The Bonds are payable from the proceeds of an ad valorem
tax levied, within the limitations prescribed by law, upon all
taxable property in the City. Reference is hereby made to the
Ordinance, a copy of which is on file in the principal office
of the Paying Agent/Registrar, and to all of the provisions of
which the owner or holder of this Bond by the acceptance hereof
hereby assents, for definitions of terms; the description of
and the nature and extent of the tax levied for the payment of
the Bonds; the terms and conditions relating to the transfer or
exchange of this Bond; the conditions upon which the Ordinance
may be amended or supplemented with or without the consent of
the Holders; the rights, duties, and obligations of the City
and the Paying Agent/Registrar; the terms and provisions upon
which this Bond may be discharged at or prior to its maturity
or redemption, and deemed to be no longer Outstanding
thereunder; and for other terms and provisions contained
therein. Capitalized terms used herein have the meanings
assigned in the Ordinance.
This Bond, subject to certain limitations contained in the
Ordinance, may be transferred on the Security Register only
upon its presentation and surrender at the principal office of
the Paying Agent/Registrar, with the Assignment hereon duly
endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Paying Agent/Registrar duly
executed by, the registered owner hereof, or his duly
authorized agent. When a transfer on the Security Register
occurs, one or more new fully registered Bonds of the same
Stated Maturity, of authorized denominations, bearing the same
rate of interest, and of the same aggregate principal amount
will be issued by the Paying Agent/Registrar to the designated
transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of
either, shall treat the registered owner whose name appears on
the Security Register (i) on the Record Date as the ·owner
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entitled to payment of interest hereon, (ii) on the date of
surrender of this Bond as the owner entitled to payment of
principal hereof at its Stated Maturity or its redemption, in
whole or in part, and (iii) on any other date as the owner for
all other purposes, and neither the City nor the Paying
Agent/Registrar, or any agent of either, shall be affected by
notice to the contrary. In the event of nonpayment of interest
on a scheduled payment date and for thirty (30) days
thereafter, a new record date for such interest payment (a
"Special Record Date") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such
interest have been received from the City. Notice of the
Special Record Date and of the scheduled payment date of the
past due interest (which shall be 15 days after the Special
Record Date) shall be sent at least five (5) business days
prior to the Special Record Date by United States Mail, first
class postage prepaid, to the address of each Holder appearing
on the Security Register at the close of business on the last
business day next preceding the date of mailing of such notice.
It is hereby certified, recited, represented and declared
that the City is a body corporate and political subdivision
duly organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance
of the Bonds is duly authorized by law; that all acts,
conditions and things required to exist and be done precedent
to and in the issuance of the Bonds to render the same lawful
and valid obligations of the City have been properly done, have
happened and have bee~ performed in regular and due time, form
and manner as required by the Constitution and laws of the
State of Texas, and the Ordinance; that the Bonds do not exceed
any Constitutional or statutory limitation; and that due
provision has been made for the payment of the principal of and
interest on the Bonds by the levy of a tax as afo.restated. In
case any provision in this Bond shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or
impaired thereby. The terms and provisions of this Bond and
the Ordinance sha 11 be construed in accordance with and sha 11
be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City Council of the City has
caused this Bond to be duly executed under the official seal of
the City as of the Bond Date.
COUNTERSIGNED:
City Secretary
(SEAL)
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CITY OF LUBBOCK, TEXAS
Mayor
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c. *Form of Registration Certificate of Comptroller
of Public Accounts to appear on Initial Bond(s) only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
(
(
(
(
REGISTER NO.
THE STATE OF TEXAS
I HEREBY CERTIFY that this Bond has been examined,
certified as to validity and approved by the Attorney General
of the State of Texas, and duly ~egistered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my
this
(SEAL)
*NOTE TO PRINTER:
signature and seal of office
Comptroller of Public Accounts
of the State of Texas
Do Not Print on Definitive Bonds
D. Form of Certificate of Paying Agent/Registrar to
appear on Definitive Bonds only.
REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR
This Bond has been duly issued and registered under the
provisions of the within-mentioned Ordinance; the bond or bonds
of the above entitled and designated series originally
delivered having been approved by the .Attorney General of the
State of Texas and registered by the Comptroller of Public
Accounts, as shown by the records of the Paying Agent/Registrar.
Registration Date:
I 7 7 I 0
Texas Commerce Bank, N.A.,
Lubbock, Texas
as Paying Agent/Registrar
By _______ ,_ ________ _
Authorized Signature
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E. Form of Assignment.
FOR
assigns,
address,
ASSIGNMENT
VALUE RECEIVED
and transfers
and zip code of
the undersigned hereby sells,
unto (Print or typewrite name,
transferee:) ..........•.........• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Social Security or other identifying number: .•...........
.• . • . •• . . •. •• . • . ) the within Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints ..•........ . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
DATED:
Signature guaranteed:
................................
NOTICE: The signature on this
assignment must correspond with
the name of the registered owner
as it appears on the face of the
within Bond in every particular.
F. The Initial Bond(s) shall be in the form set forth in
paragraph B of this Section, except that the form of the single
fully registered Initial Bond shall be modified as follows:
(i) immediately under the name of the bond the
headings "Interest Rate _____ " and "Stated
Maturity _____ " shall both be completed "as shown
below"; -
(ii) Paragraph one shall read as follows:
Registered Owner:
Principal Amount: Dollars
The City of Lubbock (hereinafter referred to as the
"City11 ), a body corporate and municipal corporation in the
County of Lubbock, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to
the order of the Registered Owner named above, or the
>egistered assigns thereof, the Principal Amount hereinabove
stated on February 15 in each of the years and in principal
installments in accordanc.e with the following schedule:
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..
YEAR OF
MATURITY
PRINCIPAL
INSTALLMENTS
(Information to be inserted from
schedule in Section 2 hereof).
INTEREST
RATE
(or so much principal thereof as shall not have been prepaid
prior to maturity) and to pay interest on the unpaid Principal
Amount hereof from the Bond Date at the per annum rates of
interest specified above computed on the basis of a 360-day
year of twelve 30-day months; such interest being payable on
February 15 and August 15 in each year, commencing February 15,
1988. Principal installments of this Bond are payable in the
year of maturity or on a prepayment date to the registered
owner hereof, upon its pres~ntation and surrender, at the
principal office of Texas Commerce Bank, N.A., Lubbock, Texas
(the "Paying Agent/Registrar"). Interest is payable to the
registered owner of this Bond whose name appears on the
"Security Register" maintained by the Paying Agent/Registrar at
the close of business on the "Record Date", which is the last
business day of the month next preceding each interest payment
date, and interest shall be paid by the Paying Agent/Registrar
by check sent United States Mail, first class postage prepaid,
to the address of the registered owner recorded in the Security
Register or by such other method, acceptable to the Paying
Agent/Registrar, requested by, and at the risk and expense of,
the registered owner. Al 1 payments of principa 1 of, premium,
if any, and interest on this Bond shall be without exchange or
collection charges to the owner hereof and in any coin or
currency of the United States of America which at the time of
payment is legal tender for the payment of public and private
debts.
SECTION 9: Levy of Taxes. To provide for the payment
of the "Debt Service Requirements" of the Bonds, being (i) the
interest on the Bonds and (ii) a sinking fund for their
redemption at maturity or a sinking fund of 2% (whichever
amount is the greater), there is hereby levied, and there shall
be annually assessed and collected in due time, form, and
manner, a tax on all taxable property in the City, within the
limitations prescribed by law, and such tax hereby levied on
each one hundred dollars' valuation of taxable property in the
City for the Debt Service Requirements of the Bonds shall be at
a rate from year to year as will be ample and sufficient to
provide funds each year to pay the principal of and interest on
said Bonds while Outstanding; ful 1 allowance being made for
delinquencies and costs of collection; separate books and
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,..
records relating to the receipt and disbursement of taxes
levied, assessed and collected for and on account of the Bonds
shall be kept and maintained by the City at all times while the
Bonds are Outstanding, and the taxes collected for the payment
of the Debt Service Requirements on the Bonds shall be
deposited to the credit of a "Special 1987 Bond Account" (the
"Interest and Sinking Fund") maintained on the records of the
City and deposited in a special fund maintained at an official
depository of the City's funds; and such tax hereby levied, and
to be assessed and collected annually, is hereby pledged to the
payment of the Bonds.
Proper officers of the City are hereby authorized and
directed to cause to be transferred to the Paying Agent/
Registrar for the Bonds, from funds on deposit in the Interest
and Sinking Fund, amounts sufficient to fully pay and discharge
promptly each installment of interest and principal of the
Bonds as the same accrues or matures or comes due by reason of
redemption prior to maturity; such transfers of· funds to be
made in such manner as will cause collected funds to be
deposited with the Paying Agent/Registrar on or before each
principal and interest payment date for the Bonds.
SECTION 10: Mutilated-Destroyed-Lost and Stolen Bonds.
In case any Bond shall be mutilated, or destroyed, lost or
stolen, the Paying Agent/Registrar, subject to City approval
and in its discretion, may execute and deliver a replacement
Bond of like form and tenor, and in the same denomination and
bearing a number not contemporaneously outstanding, in exchange
and substitution for such mutilated Bond, or in lieu of and in
substitution for such destroyed, lost or stolen Bond, only upon
(i) the filing by the Holder thereof with the Paying
Agent/Registrar of evidence satisfactory to the Paying
Agent/Registrar of the destruction, loss or theft of such Bond,
and of the authenticity of the ownership thereof and (ii) the
furnishing to the Paying Agent/Registrar of indemnification in
an amount satisfactory to hold the City and the Paying
Agent/Registrar harmless. All expenses and charges associated
with such indemnity and with the preparation, execution and
delivery of a replacement Bond shall be borne by the Holder of
the Bond mutilated, or destroyed, lost or stolen.
Every replacement Bond issued pursuant to this Section
shall be a valid and binding obligation, and shall be entitled
to all the benefits of this Ordinance equally and ratably with
all other Outstanding Bonds; notwithstanding the enforceability
of payment by anyone of the destroyed, lost, or stolen Bonds.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies
with respect to the replacement and payment of mutilated,
destroyed, lost or stolen Bonds.
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SECTION 11: Satisfaction of Obligation of City. If the
City shall pay or cause to be paid, or there shall otherwise be
paid to the Holders, the principal of, premium, if any, and
interest on the Bonds, at the times and in the manner
stipulated in this Ordinance, then the pledge of taxes levied
under this Ordinance and all covenants, agreements, and other
obligations of the City to the Holders shall thereupon cease,
terminate, and be discharged and satisfied.
Bonds or any principal amount(s) thereof shall be deemed
to have been paid within the meaning and with the effect
expressed above in this Section when ( i) money sufficient to
pay in ful 1 such Bonds or the principa 1 amount ( s) thereof at
maturity or to the redemption date therefor, together with all
interest due thereon, shall have been irrevocably deposited
with and held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which
Government Securities have been certified by an independent
accounting firm to mature as to principal and interest in such
amounts and at such times as will insure the availability,
without reinvestment, of sufficient money, together with any
moneys deposited therewith, if any, to pay when due the
principal of and interest on such Bonds, or the principal
amount(s) thereof, on and prior to the Stated Maturity thereof
or (if notice of redemption has been duly given or waived or if
irrevocable arrangements therefor acceptable to the Paying
Agent/ Registrar have been made) the redemption date thereof.
The City covenants that no deposit of moneys or Government
Securities will be made under this Section and no use made of
any such deposit which would cause the Bonds to be treated as
"arbitrage bonds" within the meaning of Section 148 of the
Internal Revenue Code of 1986, or regulations adopted pursuant
thereto.
Any moneys so deposited with the Paying Agent/ Registrar,
or an authorized escrow agent, and all income from Government
Securities held in trust by the Paying Agent/Registrar, or an
authorized escrow agent, pursuant to this Section which is not
required for the payment of the Bonds, or any principal
amount ( s) thereof, or interest thereon with respect to which
such moneys have been so deposited shall be remitted to the
City or deposited as directed by the City.· Furthermore, any
money held by the Paying Agent/Registrar for the payment of the
principal of and interest on the Bonds and remaining unclaimed
for a period of four ( 4) years after the Stated Maturity, or
applicable redemption date, of the Bonds such moneys were
deposited and are held in trust to pay shall upon the request
of the City be remitted to the City against a written receipt
therefor.
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The term "Government Securities", as used herein, means
direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United
States of America, which are non-callable prior to the
respective Stated Maturities of the Bonds and may be United
States Treasury Obligations such as the State and Local
Government Series and may be in book-entry form.
SECTION 12: Ordinance a Contract -Amendments -Outstanding
Bonds. This Ordinance shall constitute a contract with the
Holders from time to time, be binding on the City, and shall
not be amended or repealed by the City so long as any Bond
remains Outstanding except as permitted in this Section. The
City may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any
manner not detrimental to the interests of the Holders,
including the curing of any ambiguity, inconsistency, or formal
defect or omission herein. In addition, the City may, with the
consent of Holders holding a majority. in aggregate principal
amount of the Bonds then Outstanding affected thereby, amend,
add to, or rescind any of the provisions of this Ordinance;
provided that, without the consent of all Holders of
Outstanding Bonds, no such amendment, addition, or rescission
shall (1) extend the time or times of payment of the principal
of, premium, if any, and interest on the Bonds, reduce the
principal amount thereof, the redemption price therefor, or the
rate of interest thereon, or in any other way modify the terms
of payment of the principal of, premium, if any, or interest on
the Bonds, ( 2) give any preference to any Bond over any other
Bond, or (3) reduce the aggregate principal amount of Bonds
required to be held by Holders for consent to any such
amendment, addition, or rescission.
The term "Outstanding" when used in this Ordinance with
respect to Bonds means, as of the date of determination, al 1
Bonds theretofore issued and delivered under this Ordinance,
except:
l 7 7 SD
(1) those Bonds cancelled by the
Agent/Registrar or delivered to the
Agent/Registrar for cancellation;
Paying
Paying
( 2) those Bonds deemed to be duly pa id by
the City in accordance with the provisions of
Section 11 hereof by the irrevocable deposit with
the Paying Agent/Registrar, or an authorized
escrow agent, of money or Government Securities,
or both, in the amount necessary to fully pay the
principa 1 of, premium, if any, and interest
thereon to maturity or redemption, as the case may·
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.. I
be, provided that, if such Bonds are to be
redeemed, notice of redemption thereof shall have
been duly given pursuant to this Ordinance or
irrevocably provided to be given to the
satisfaction of the Paying Agent/Registrar, or
waived; and
(3) those mutilated, destroyed, lost, or
stolen Bonds which have been replaced with Bonds
registered and delivered in lieu thereof as
provided in Section 10 hereof.
SECTION 13: Certifications as to Tax Exempt Status of
Interest on the Bonds. The City shall not make or permit to be
made, or omit to make, any use or investment, within its
control, of the proceeds of the Bonds or· of any property
acquired, constructed, or improved therewith which, if made or
omitted, respectively, would cause interest on the Bonds to be
includable in the gross income, as defined in Section 61 of the
Internal Revenue Code of 1986 (the "Code"), of the owners
thereof for federal income tax purposes pursuant to such Code,
and in relation to the foregoing, the City hereby agrees,
covenants and represents that:
1. The proceeds of the Bonds are to be used to finance
facilities and improvements to be owned, operated and
maintained by the City and no person or group of persons (other
than on the basis as members of the general public) will have
access to or use of or derive any special benefit from the
facilities or improvements to be financed pursuant to any
lease, management or payment contract or any other arrangement.
2. The proceeds of the Bonds are needed at this time to
finance the costs of the improvements described in Section 1
hereof and pending the expenditure thereof, none of the
proceeds of the Bonds will be invested in any kind or type of
obligation or property with an investment "yield" materially
higher (more than O .125 percentage points) than the yield of
the Bonds; except with respect to (i) any temporary period
exception as may be applicable to the investment of the
original proceeds, investment proceeds or amounts accumulated
in the Interest and Sinking Fund for the Bonds and (ii)
proceeds representing a minor portion of the Bonds (an amount
not exceeding the lesser of 5\ of the original proceeds of the
Bonds or $100,000).
3. Save and except for the Interest and Sinking Fund, no
other funds or accounts have been established or pledged for
the payment of the Bonds.
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Furthermore, the City secretary is authorized and directed
to establish and maintain complete and full records pertaining
to the receipt, investment and disbursement of the proceeds of
the Bonds, to institute such procedures and measures as may be
necessary to preserve and maintain the tax-exempt status of
interest on the Bonds from federal income taxes under existing
law and the Code and, to the extent permissible, to execute
such documents and certificates as may be necessary to
establish the tax-exempt status of the Bonds at the time of
their delivery to the initial purchasers and thereafter.
SECTION 14: Covenants Regarding Arbitrage. Unless and
until the City shall have received a written opinion of counsel
nationally recognized in the field of municipal bond law to the
effect that failure to comply with one or more of the following
covenants will not adversely affect any exemption from federal
income tax of interest on any Bond, the City agrees to comply
with each of the specific covenants in this Section.
(a) A Rebate Fund is hereby established by the City.
Such Fund shall be for the sole benefit of the United States of
America and shall not be subject to the claim of any other
person, including without limitation the bondholders. The
Rebate Fund is established for the purpose of compliance with
section 148 of the Internal Revenue Code of 1986 (the "Code").
(b) At the close of each .. Bond Year," the City shall
compute the amount of '"Excess Earnings," if any, for the period
beginning on the date of delivery of the Bonds and ending at
the close of such "Bond Year .. and transfer an amount equal to
the difference, if any, between the amount then in the Rebate
Fund and the Excess Earnings so computed. The term "Bond Year"
means with respect to the Bonds each one-year period ending on
the anniversary of the date of delivery of the Bonds. If, at
the close of any Bond Year, the amount in the Rebate Fund
exceeds the amount that would be required to be paid to the
United States of America under paragraph (d) below if the Bonds
had been paid in full, such excess may be transferred from the
Rebate Fund and paid to the City.
(c) In general, "Excess Earnings" for any period of time
means the sum of
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(i) the excess of --
(A) the aggregate amount earned during
such period of time on all "'Nonpurpose
Investments'" ( including gains on the
disposition of such Investments) in which
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"Gross Proceeds" of the issue are invested
(other than amounts attributable to an
excess described in this subparagraph
(c) (i)) over
(B) the amount that would have been
earned during such period of time if the
"Yield" on such Nonpurpose Investments
(other than amounts attributable to an
excess described in ths subparagraph (c)(i))
had been equa 1 to the Yield on the issue,
plus
(ii) any income during such period of time
attributable to the excess described in
subparagraph (c)(i) above.
"Excess Earnings" will not include amounts, if any, which need
not be taken into account under the special rules of section
148(f) (4) (A) and (B) of the Code relating to bona fide debt
service funds and the six-month temporary investment period.
The terms "Nonpurpose Obligations," "Gross Proceeds" and
"Yield" shall have the meanings prescribed by section 148 of
the Code and shall be applied in the manner prescribed in such
section.
(d) The City shall pay to the United States of
America at least once every five-years an amount that ensures
that at least 90 percent of the Excess Earnings from the date
of delivery of the Bonds to ihe close of the period for which
the payment is being made will have been paid. The City shall
pay to the United States of America not later than 60 days
after the Bonds have been paid in full 100 percent of the
amount then required to be paid under section 148(f) of the
Code as a result of Excess Earnings.
(e) The City shall keep such records as will enable
the City to fulfill its responsibilities under this section and
section 148(f) of the Code and shall retain such records for at
least six years following the final payment of principal and
interest on the Bonds.
(f) The City will not use any portion of the proceeds
of the Bonds directly or indirectly to acquire "higher yielding
investments," or to replace funds which were used directly or
indirectly to acquire "higher yielding investments." The term
higher yielding investments means any investment property (as
defined in section 148(b)(2) of the Code) which produces a
yield over the term of the issue which is materially higher
than the yield on the Bonds (as defined above). The foregoing
limitation on higher yielding investments shall not apply to --
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,....
(1)-proceeds of the Bonds invested for a
reasonable temporary period of 3 years or less
until such proceeds are needed for the purpose
for which the bonds are issued,
(2) amounts invested
bona fide debt service
earnings on such fund are
any bond year, and
in the Bond Fund (a
fund) if the gross
less than $100,000 in
( 3) amounts deposited in the Reserve Fund
allocated to the Bonds not in excess of 10
percent of the proceeds of the Bonds.
(g) The City covenants to restrict the use of the
proceeds of the Bonds in such manner and to such extent, as may
be necessary, so that the Bonds will not constitute arbitrage
bonds under section 148 of the Code and, to the extent
applicable, section 149 (d) of the Code ( relating to advance
refundings). Any authorized representative of the City having
responsibility with respect to the issuance of the Bonds is
authorized and directed, alone or in conjunction with any other
official, employee or consultant of the City to give an
appropriate certificate on behalf of the City, for inclusion in
the transcript of proceedings for the Bonds, setting forth the
facts, estimates and circumstances and reasonable expectations
pertaining to section 148 of the Code and, to the extent
applicable, section 149(d) of the Code.
(h) The requirements of this Section are subject to,
and shall be interpreted in accordance with section 148 of the
Code and any regulations which may be issued thereunder.
(i) The City shall not, at any time prior to the
final Stated Maturity of the Bonds, enter into any transaction
that reduces the amount required to be paid to the United
States pursuant to this Section because such transaction
results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm's length and had
the Yield of the Bonds not been relevant to either party.
(j) The City•s payment of rebate to the United
States is additional consideration for the purchase of the
Bonds by the initial purchasers thereof and the loan of money
represented thereby, and is for the purpose of preserving the
exemption from federal income taxation of interest on the Bonds.
SECTION 15: Sale of the Bonds. The sale of the Bonds
to Merrill Lynch Capital Markets and Associates (herein
referred to as the "Purchasers") at the price of par and
accrued interest plus a premium of $ -o-to the date of
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delivery is hereby approved and confirmed. Delivery of the
Bonds to the Purchasers shall occur as soon as possible upon
payment being made the ref or in accordance with the terms of
sale.
SECTION 16: Control and Custody of Bonds. The Mayor of
the City shall be and is hereby authorized to take and have
charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas,
including the printing and supply of definitive Bonds, and
shall take and have charge and control of the Initial Bond(s)
pending the approval thereof by the Attorney General, the
registration thereof by the Comptroller of Public Accounts and
the delivery thereof to the Purchasers.
Furthermore, the Mayor, City Secretary, and City
Treasurer, any one or more of said officials, are hereby
authorized and directed to furnish and execute such documents
relating to the City and its financial affairs as may be
necessary for the issuance of the Bonds, the approval of the
Attorney General and the registration by the Comptroller of
Public Accounts and, together with the City's financial
advisor, bond counsel and the Paying Agent/Registrar, make the
necessary arrangements for the delivery of the Initial Bond(s)
to the Purchasers and the initial exchange thereof for
definitive Bonds.
SECTION 17: Official Statement. The Official
Statement prepared in the initial offering and sale of the
Bonds by the City, together with all addendas, supplements and
amendments thereto issued on behalf of the City, is hereby
approved as to form and content, and the City Council hereby
finds that the information and data contained in said Official
Statement pertaining to the City and its financial affairs is
true and correct in all material respects and no material facts
have been omitted therefrom which are necessary to make the
statements therein, in light of the circumstances under which
they were made, not misleading. The use of such Official
Statement in the i:eoffering of the Bonds by the Purchasers is
hereby approved and authorized.
SECTION 18: Notices to Holders-Waiver. Wherever this
Ordinance provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States
Mail, first class postage prepaid, to the address of each
Holder appearing in the Security Register at the close of
business on the business day next preceding the mailing of such
notice.
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In any case where notice to Holders is given by mail,
neither the failure to mail such notice to any particular
Holders, nor any defect in any notice so mailed, shall affect
the sufficiency of such notice with respect to all other
Bonds. Where this Ordinance provides for notice in any manner,
such notice may be waived in writing by the Holder entitled
to receive such notice, either before or after the event with
respect to which such notice is given, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Paying Agent/Registrar, but such filing
shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
SECTION 19: Cancellation. All Bonds surrendered for
payment, redemption, transfer, exchange, or replacement, if
surrendered to the Paying Agent/Registrar,· shall be promptly
cancelled by it and, if surrendered to the City, shall be
delivered to the Paying Agent/Registrar and, if not already
cancelled, shall be promptly cancelled by the Paying
Agent/Registrar. The City may at any time deliver to the
Paying Agent/Registrar for cancellation any Bonds previously
certified or registered and delivered which the City may have
acquired in any manner whatsoever, and all Bonds so delivered
shall be promptly cancelled by the Paying Agent/Registrar. All
cancelled Bonds held by the Paying Agent/Registrar shall be
returned to the City.
SECTION 20: Printed Opinion. The Purchasers'
obligation to accept delivery of the Bonds is subject to being
furnished a final opinion of Fulbright & Jaworski, Attorneys,
Dallas, Texas, approving the Bonds as to their validity, said
opinion to be dated and delivered as of the date of delivery
and payment for the Bonds. Printing of a true and correct
reproduction of said opinion on the reverse side of each of the
definitive Bon~s is hereby approved and authorized.
SECTION 21: CUSIP Numbers. CUSIP numbers may be
printed or typed on the definitive Bonds. It is expressly
provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or
effect as regards the legality thereof and neither the City nor
attorneys approving the Bonds as to legality are to be held
responsible for CUSIP numbers incorrectly printed or typed on
the definitive Bonds.
SECTION 22: Benefits of Ordinance. Nothing in this
Ordinance, expressed or implied, is intended or shall be
construed to confer upon any person other than the City, the
Paying Agent/Registrar and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance
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or any prov1s1on hereof, this Ordinance and all its provisions
being intended to be and being for the sole and exclusive
benefit of the City, the Paying Agent/Registrar and the Holders.
SECTION 23: Inconsistent Provisions. All ordinances,
orders or resolutions, or parts thereof, which are in conflict
or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict, and the provisions of
this Ordinance shall be and remain controlling as to the
matters contained herein.
SECTION 24: Governing Law. This Ordinance shall be
construed and enforced in accordance with the laws of the State
of Texas and the United States of America.
SECTION 25: Effect of Headings. The Section headings
herein are for convenience only and shall not affect the
construction hereof.
SECTION 26: Construction of Terms.
the context of this Ordinance, words of
shall be considered to include the plural,
number shall be considered to include the
of the masculine, feminine or neuter gender
to include the other genders.
If appropriate in
the singular number
words of the plural
singular, and words
shall be considered
SECTION 27: Severability. If any provision of this
Ordinance or the application thereof to any circumstance shall
be held to be invalid, the remainder of this Ordinance and the
application thereof to other circumstances shall nevertheless
be valid, and the City Council hereby declares that this
Ordinance would have been enacted without such invalid
provision.
SECTION 28: Public Meeting. It is officially found,
determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice
of the time, place, and subject matter of the public business
to be considered at such meeting, including this Ordinance, was
given, all as required by Article 6252-17, Vernon's Texas Civil
Statutes, as amended.
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SECTION 29: Effective Date. This Ordinance shall be in
force and effect from and after its passage on second and final
reading and IT IS SO ORDAINED.
PASSED AND ADOPTED ON FIRST READING, this 23rd day of
April, 1987.
PASSED AND ADOPTED ON SECOND AND FINAL READING, this 24th
day of April, 1987.
CITY OF LµBBOCK, TEXAS
Mayor
ATTEST:
(City Seal)
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GENERAL CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
WE, the undersigned, Mayor and City Secretary,
respectively, of the City of Lubbock, Texas, DO HEREBY CERTIFY
as follows:
1. That the total principal amount of indebtedness
of the City, including the proposed $5,960,000 •cITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987, • dated
April 15, 1987, payable from ad valorem taxes levied .and
collected by the City is as follows:
OUTSTANDING INDEBTEDNESS------------------$68,844,070
SERIES 1987 BONDS-------------------------$ 5,960,000
TOTAL INDEBTEDNESS-------------------$74 1 804,070
2. That a debt service requirement schedule for the
City•s above-described outstanding indebtedness as well as the
proposed $5,960,000 "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
BONDS, SERIES 1987," dated April 15, 1987, is attached hereto
as Exhibit A and made a part of this certificate for all
purposes.
3. That certain duly qualified and acting officers
of said City are as follows:
B.C. McMINN
RANETTE BOYD
LARRY J. CUNNINGHAM
J. ROBERT MASSENGALE
MAYOR
CITY SECRETARY
CITY MANAGER
ASSISTANT CITY MANAGER
FOR FINANCIAL SERVICES -
CITY TREASURER
4. That said City is incorporated under the General
Laws of the State of Texas, and is operating under the Home
Rule Amendment to the Texas Constitution, Section 5, Article XI,
as amended in 1912; the City Charter was originally adopted at
an election held on December 27, 1917, and said Charter has not
been amended or revised in any respect since January 24, 1967,
the date of the last Charter Amendment Election.
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5. That the bond elections held in the City on the
21st day of May, 1977, and the 21st day of November, 1981, were
duly conducted and held in compliance with the requirements of
the Texas Election Code relating to bilingual election
materials, instructions, supplies, etc., and the Federal Voting
Rights Act, as amended.
6. That the assessed value of all taxable property
(net of exemptions) in the City, as shown by the tax rolls for
the year 1986, and which have been duly approved and are the
latest official assessment of taxable property in the City is
as follows:
TOTAL ASSESSED TAXABLE VALUES OF
REAL AND PERSONAL PROPERTY-----------$4,408,325,399
WITNESS OUR HANDS AND THE SEAL OF THE CITY OF LUBBOCK,
TEXAS, this the 24th day of April , 1987.
~gJyof
Lubbock, Texas
{City Seal)
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YEAR ENDING OUTSTANDING BONDS ..fil!L Pft!RfJl>AL JRTEllE~1 T!>TP:C 1987 s 7,570,000 s 5,452,748 $13,022,748 1988 7,445,000 4,9S0.782 12,395,782 1989 7,295,000 4,446,531 11,741,531 1990 7,175,000 3,942.844 11,117,844 1991 7,080,000 3,434,624 10,514,624 1992 S,805,000 2,968,695 8,773,695 1993 5,245,000 2,561.985 7.806,985 1994 4.88S,OOO 2,182,415 7,067,415 199S 4,395,000 1,827,883 6,222,883 1996 4,400,000 1,483,4S0 5,883,450 1997 4,330,000 1,135,975 5,465,975 1998 4,345,000 787,278 5,132,278 1999 4,240,000 438,890 4,678,890 2000 1,786,307 2,151,442 3,937,749 2001 1,554,442 1.791,809 3,346,251 2002 1.253,639 1,036,111 2.289,750 2003 1,084,682 508,568 1,593,2SO 2004 2005 2006 2007 S 79,889,070 S 41,102,030 $120,991.100 EXHIBIT A CITY OF LUBBOCK, TEXAS GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS INCLUDING $5,960,000 GENERAL OBLIGATION BONDS, SERIES 1987 THIS S 5:960,000 ISSUE GRAND TOTAL PIHRc1PiiL RATEt:J IATEftE~T TlffiiL REQ!!IREMENTS ™ $ $ $ $ 13,022,746 260,000 9.S00 639,583 899,583 13,295,365 300,000 9.500 4S0,000 750,000 12,491,531 300,000 9.S00 421,SOO 721.500 11,839.344 300,000 9.S00 393,000 693,000 11,207,624 300,000 9.S00 364,500 664,500 9,438,195 300.000 9.S00 336,000 636,000 8,442,985 300,000 9.500 307,500 607,500 7,674,915 300,000 9.500 279,000 579,000 6,801,883 300,000 7.800 253,050 553,050 6,436,SOO 300,000 7.300 230,400 530,400 5,996,375 300,000 7.400 208,3SO 508,350 5,640,628 300,000 7.500 186,000 486,000 5,164,890 300,000 7.600 163,3SO 463,350 4,401,099 300,000 7.700 140,400 440,400 3,786,651 300,000 7.7SO 117,225 417,225 2,706,975 300,000 7.800 93,900 393.900 1,987,150 300.000 7.900 70,3SO 370,350 370,3S0 300,000 6.S00 48,750 348,750 348,7SO 300,000 6.S00 29,2S0 329,250 329,2SO 3001000 6.500 91750 3091750 309,75<' s 5,960,000 $ 4,741,858 S 10,701,858 $131,692,958 LESS: WATERWORKS SYSTEM GENERAL OBLIGATION P.EOUIREMENTS $4,370,569 4,849,574 :4,484,S59 4,234,096 3.993,094 3,688,021 3,301,230 3,004,010 2,666,737 2,524,678 2,355,408 2,218,636 --2,035,870 1,742,364 1,505,330 1,090,352 812,884 288,947 272,095 256,881 241.667 $49,937,002 LESS: GENERAL SEWER SYSTEM PURPOSE GENERAL GENERAL OBLIGATION OBLIGATION REOUIREMENTS REOUIREMENTS $2,400,856 $6,251,323 2,329,907 6,115,884 2,263,195 5,743,777 2,185,013 5,420,235 2,104,810 5,;109,720 1,026,404 4,723,770 893,460 4,248,295 796,938 3,873,967 685,415 3,449,731 646,808 3,265,014 597,119 3,043,848 559,501 2,862,491 504,652 2,624,368 407.704 2,251,031 331,599 1,949,722 188,575 1,428,048 97,351 1,076,915 9,000 72,403 8,475 68,180 8,001 64,368 7.527 60.556 $18,052,310 $63,703,646
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CERTIFICATE AS TO TAX EXEMPTION
The undersigned, being the duly chosen and qualified
Assistant City Manager and Secretary of the City of Lubbock,
Texas (the "Issuer"), hereby certify with respect to CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987, in the
principal amount of $5,960,000.00 (the "Bonds"), as follows:
A. General.
1. We, along with the other officers of the Issuer,
are charged with the responsibility for issuing the Bonds.
2. This certificate is made pursuant to Sections 103
and 141 through 150 of the Internal Revenue Code of 1986, as
amended to the date hereof (the "Code"), and Treasury
Regulations Sections 1.103-13, 1.103-14, and 1.103-15 (the
"Regulations").
3. This certificate is based on the facts and
estimates described herein in existence on this date, which is
the date of delivery of the Bonds to and payment for the Bonds
by the initial purchasers thereof, and, on the basis of such
facts and estimates, the Issuer expects that the future events
described herein will occur.
4. The Issuer has never been disqualified by the
Commissioner of Internal Revenue from certifying an issue of
its obligations pursuant to Section 1.103-13 ( a) (2) ( iv) of the
Regulations, has never been listed in a notice of
disqualification in the Internal Revenue Bulletin, and has
never been advised that such a disqualification is contemplated.
B. Purpose and Size.
1. The Bonds are being issued pursuant to Ordinance
No. 9c?e1' of the Issuer, adopted by the City Council of the
Issuer on April 24, 1987, (hereinafter referred to as the
"Ordinance•) to finance the Issuer"s estimated acquisition and
construction costs of various capital improvements and
extensions to the Issuer's existing (i) Waterworks System, for
the acquisition of land in the area to be flooded by the
Justiceburg Reservoir, estimated to cost $4,650,000,
(ii) Sanitary Sewer System, estimated to cost $145,000,
(iii) storm sewers, drains and gutters, including the
acquisition of land for drainage purposes and drainage area
modifications, estimated to cost $373,000, and ( iv) streets,
including lighting, estima'ted to cost $792,000 all as more
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fully described in the Ordinance (together, the "Projects").
Terms used and not defined herein have the same meaning given
to them in the Ordinance.
2. The Issuer•s Waterworks System and Sanitary Sewer
System (together, the "Systems") are each owned, operated, and
maintained by the Issuer, and the Issuer has not contracted in
any manner with any company, firm or other person or entity to
operate and/or maintain the Systems or all or part of any of
them, for and on behalf of the Issuer. The Issuer does not
expect to enter into any contract for the operation,
maintenance or management of the Systems or all or part of any
of them. ·
3. There is not, and as of the date hereof the
Issuer does not anticipate entering into, any lease, contract
or other understanding or arrangement, such as a take-or-pay
contract or output contract, with any person other than a state
or local governmental unit. pursuant to which the Issuer expects
that proceeds of the Bonds, or the facilities financed
therewith, will be used in the trade or business of such person
(including all activities of such persons who are not
individuals).
4. Except as set forth on Exhibit A hereto, the
Issuer has not entered into, and as of the date hereof the
Issuer does not anticipate entering into, any contract for the
sale of water, or the collection and treatment of sewage.
5. The Bonds are not "private activity bonds" as
that term is defined in section 14l(a) of the Code.
6. The amounts received from the sale of the Bonds,
when added to the amounts expected to be received from the
investment thereof, do not exceed the amounts required to pay
the costs of the Projects and of issuing the Bonds.
7. No proceeds received from the sale of the Bonds
or amounts received from the investment thereof will be used to
pay the principal of or interest on any presently outstanding
issue of Bonds or other similar obligations of the Issuer other
than the Bonds.
c. Source and Disbursement of Funds.
1. The Bonds are being issued and delivered to the
purchaser thereof (the "Initial Purchaser") on the date hereof
upon payment of the agreed purchase price of $5,960,000.00 ,-·
plus original issue premium of $ -(2 , plus accrued.
interest thereon.
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2. The amount received from the purchaser of the
Bonds representing accrued interest is being deposited on the
date hereof in the Special 1987 Bond Account (the "Bond Fund")
for the Bonds to be used to pay the first payment of interest
to become due on the Bonds on February 15, 1988.
3. Approximately $5,920,000 of the proceeds from the
sale of the Bonds is to be deposited in separate accounts of
the Issuer (the •construction Funds") and will be used to pay
costs of the Projects.
Costs of issuance relating to the Bonds, which
are expected to be approximately $40,000, will be paid by the
Issuer out of bond proceeds.
The Issuer estimates that $.?~.i?,4'~4' 1t!'Jo in income
and profit will be·received from the investment of the amounts
deposited to the Construe-tion Funds pending the disbursement
of such amounts for the governmental purposes for which the
Bonds are being used. Except to the extent required to be paid
over to the United States pursuant to Section 14 of the
Ordinance, all of such income and profit will be used to pay
any cost overruns on the Projects or if there are none,
deposited to the Bond Fund and used to pay principal of and
interest on the Bonds within one year of receipt.
D. Temporary Periods and Time for Expenditures.
1. Within six months from the date hereof, the
Issuer will have incurred binding obligations or commitments in
the amount of the lesser of $100,000.00 or 2-1/2\ of the
proceeds attributable to each of the Projects to be financed by
the Bonds by entering into contracts for construction,
architectural services, engineering services, land acquisition,
site development, construction materials, or the purchase of
equipment.
2. After entering into said contracts, work on the
construction or acquisition of each of the Projects will
proceed with due diligence to completion.
3. The Issuer expects that all of the original
proceeds of the Bonds, together with any earnings from the
investment thereof, will be spent by not later than Au4 vr.r: ,
19 B"f'.
E. Bond Fund
1. Pursuant to Section 9 of the Ordinance, the
Issuer has levied a tax on all taxable property within the
jurisdiction of the Issuer, within the limitations prescribed
by law, sufficient to pay principal of and interest on the
Bonds as such becomes due, and such tax has been pledged to the
payment of the Bonds.
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2. The Bond Fund will be maintained by the Issuer
primarily to achieve a proper matching of revenues and debt
service within each bond year. The Issuer expects that the
following will occur with respect to the money in the Bond Fund
(other than that portion of the Bond Fund, if any, consisting
of deposits made to defease in whole or in part the obligations
of the Issuer to make deposits thereto):
a. The Bond Fund will be depleted at least
once a year except possibly for a carry-over amount
not greater than the larger of one year•s income from
the investment of the Bond Fund or one-twelfth of
annual debt service requirements on the Bonds;
b. All amounts deposited to the Bond Fund will
be spent within 13 months of deposit;
c. All amounts received from the investment of
the Bond Fund will be deposited therein and will be
expended within twelve months of receipt.
3. Except as described herein, no funds of the
Issuer have been or will be pledged to payment of the principal
of or interest on the Bonds or otherwise restricted so as to
give reasonable assurance of the availability of such funds for
such purpose.
F. Yield and Nonpurpose Investments.
1. The discount factor required to reduce the
principal and interest to be paid on the Bonds to a present
value on the date hereof, compounding semiannually, equal to
the ini tia·l offering prices at which a substantial amount of
each maturity of the Bonds was sold to the public, is 7. l/q % •
In determining the initial offering price at which a
substantial amount of each maturity of the Bonds was sold to
the public, the Issuer has relied on certificates from the
Initial Purchaser of the Bonds.
2. No other obligations of the Issuer payable from
the same source of funds have been or will be issued within 31
days of the date hereof.
3. In accordance with Section 14 of the Ordinance,
the Issuer will compute annually the aggregate amount earned
during such period of time on all Nonpurpose Investments in
which Gross Proceeds of the issue are invested, over the amount
that would have been earned during such period if the "Yield"
on such Nonpurpose Investments had been equal to the yield on
the issue, plus any income during such period of time·
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attributable to such excess (the "Excess Earnings"), will make,
annual deposits of Excess Earnings to the Rebate Fund, will pay,
over timely to the United States such Excess Earnings plus any
income from the investment thereof as may be due and owing, and
will make such reports as will be required to insure that all
earnings from Nonpurpose Investments with a Yield in excess of
the Yield on the Bonds are "rebated .. to the United States as
required by Section 148 of the Code.
EXECUTED AND DELIVERED _M_A_Y_2_·._8_19_8...;_7 ___ .
CITY OF LUBBOCK, TEXAS
By: ~ ~ J.., , Robert Massengale
Assistant City Manager
~~~
Secretary
The undersigned has read the foregoing Certificate,
has made the representations to the Issuer attributed to it
therein, believes such representations to be true, correct, and
complete as of the date hereof, and is not aware of any facts
or circumstances that would make such representations untrue,
inaccurate, or incomplete.
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.. ·IXHIBIT A
THE STATE' OF TEXAS §
COUNTY OF LUBBOCK §
CITY OF LUBBOCK §
I, Ranette Boyd, City Secretary for the City of Lubbock, Texas hereby
certify that the attached document is a true and correct copy of the
Management Agreement by and between the City of Lubbock and Standefer &
Gray, Inc. as authorized by Resolution #2435 as it appears on Item #676,
Page #'s 436-437, Volume #4SA of the Minutes record and as remains on file
in the Office of the City Secretary. Resolution was authorized the. 25th
day of September, 1986.
If I were called upon to testify, I would testify as to my position
as City Secretary and that these records accurately reflect the records on
file in this office.
{Seal)
. ..
TO CERTIFY WHICH, witness my hand and
seal of the City of Lubbock, Texas this
1st day of July, 1987.
EXHl.6lT A . , . -
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JCR:da
RESOLUTION
Resolution #2435
September 25, 1986
Agenda Item #29
BE IT RESOLVED BY TBE CITY COUNCIL OF THE CITY OF LUBBOCK:
·THAT the Mayor of the City of Lubbock BE and is hereby
, authorized and directed to execute for and on behalf of the
'City of Lubbock a Management Agreement by and between the City
: of Lubbock and Standefer&: Gray, Inc., attached herewith,
., which shall be spread upon the minutes of the Council and as ! spread upon the minutes of this Council shall constitute and ;i 'i be a part of this Resolution as if. fully copied herein in
fi detail. ,,
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Passed by the City Council this
1986.
_2s_t_h_ day of _s_ep_t_em_b_e_r __ ,
B.C. McMINN, MAYOR
ATTEST:
APPROVED AS TO CONTENT:
l--:L,1w r}i}),r.tl
'.·sam Wahl, Director of Water
Utilities
APPROVED AS TO FORM:
y Attorney
/IA, :·• , , ·: ... , •.:-) : ., ., , ~,...~ •
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,,' / Resolution #2435
MANAGEMENT AGREEMENT
This Management Agreement (the "Agreement") is made and
entered ·1nto this 25th day of September , 19 ~, ef-
fect! ve as of SI:!! .l'Jfe m /;et: .3() , 19 _g;_, by and between the I
City of Lubbock, Texas, hereinafter referred to as City and
Standefer & Gray, Inc., a Texas Corporation, hereinafter re-
ferred to as Operator.
WITNESSETH:
WHEREAS, the city of Lubbock, Texas, a Home Rule City lo-
cated in Lubbock, Texas, owns approximately 470 acres of land
in Lubbock county, Texas, and is in the process (under con-
tract of sale) of purchasing approximately 2929 acres together
with irrigation systems and appurtenances and devices and per-
sonal property in connection therewith (under contract of
sale) being J. Frank Gray and wife, Imogene Gray, and Jack
Driskill as Independent Executor of the Estate of Lily w.
Gray, d~ceased, and Standefer and Gray, Inc., herein collec-
tively called "Sellers"; and,
WHEREAS/ as sewage effluent is disposed upon said 470
acres and said 2929 acres of land as well as lands of others
in connection with the operations; and,
WHEREAS, City is desirous of ~ecuring the service of an
Operator for said properties who is experienced in the opera-
tion of a farming operation where the primary purpose of such
farming operation is the lawful disposal of sewerage effluent
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from the City's sewer System in the interest of public health,
safety, and welfare of the citizens of the City of Lubbock in
the exercise of the governmental function of City in the sani-
tary sewer services for the citizens of the city; and,
WHEREAS, the City has determined that Operator has the
necessary experience and expertise necessary to operate the
farming operation contemplated by the parties hereto;
NOW THEREFORE, in consideration of the premises and the
mutual covenants and agreements herein set forth the parties
hereto agree as follows:
1. Primary Goal. The primary goal of this agreement is
to secure for the City the experience, expertise and services
necessary to operate approximately 3399 acres of land, located
in Lubbock County, Texas, and more fully described in Exhibit
"A", attached hereto and made a part hereof for farming and
agricultural purposes and to incorporate into such operation
the lawful disposal of sewerage effluent (waste water) from
the City all in the interest of the.public health and welfare
of the citizens of the City of Lubbock, Texas.
2. I,R.s. Operating Guidelines. It is agreed between
the parties hereto that this contract is and shall be consis-
tent with the requirements of Internal Revenue Service Revenue
Procedure.No. 82-14, applicable to ·.facilities managed by a non
exempt management company in connection with the purchase of
approximately 2929 acres of land which will be operated in ac-
cordance with.the terms of this agreement. Furthermore, if
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any new contract is negotiat~d, the new contract will be sub-
ject to the.same terms as those described above.
3. Retention of Seryices. City does hereby retain Op-
erator to supervise, operate and manage the farming operation
which is the subject of this contract and which shall here-
inafter be referred to as farming operation, and Operator
hereby accepts such retention and agrees to furnish and render
such services as are hereinafter set forth.
4. Scope of seryices. Operator agrees to perform and
provide the following services to City:
(a) Operator shall undertake the operation and man-
agement of approximately 3399 acres of land,
more fully described herein, for the purpose ot
placing said acreage in agriculture and farming
use in such a manner as to incorporate into
such use the lawful disposal of sewage effluent
(waste water) pumped to said property from the
City's water treatment plant.·
(b) Operator shall furnish all farming equipment
set forth and described in Exhibit "B", at-
tached hereto and made a part hereof, together
with any and all substitutions and replacements
thereof. However, any "Titled Vehicle" de-
scribed in said exhibit, when said vehicles be-
come unservable or inoperable, shall be re-·
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(c)
placed as set forth in paragraph 6, subsection
10 of this agreement.
operator shall prepare a yearly plan for the
farming operation which plan shall provide for
the following:
(l) a provision for waste water utilization
and disposal for ~e year in question;
(2) a program for the planting of crops
stressing crops with.-the highest.need, for
water use;
(3) a proposed operation budget for the farm-
ing operation for the year in question;
(4) a projection of the estimated revenues to.
be obtained by the farming operation for
the year in question;
(5) a list of all improvements which operator
feels may be necessary.
Operator shall provide the plan for the farming operation
to the City on or.before September i, 1986 and thereafter said
plan shall be delivered to City by Aprill, 1987 and April 1st
of each year thereafter during the existence of this contract.
The farming Operational Plan shall form the basis of the City
-budgeting process for this operation.
The yearly farming operation plan shall not be placed
into effect until approved by City and Operator agrees and un-
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derstands that the City reserves the right to make changes or
alterations to said plan consistent with its yearly budget.
(d) operator shall at all times during the exis-
tence of this agreement operate the farm land
in question in such a manner as to assure the
lawful and proper disposal of sewage effluent
(waste water)·proposal to said lands from·
city's water treatment plant. In this respect
Operator shall comply with the provisions of
any and all permits granted to City by the
Texas water Commission authorizing disposal of
the sewage effluent (waste water) upon the land
described in Exhibit "A" of this contract and
further Operator shall comply with any other
law, rules or regulation of the state of Texas
or the United States Government applicable to
the operation.
(e) Operator shall furnish all labor necessary to
perform the farming operation contemplated by
this agreement. Said personnel shall be the
employees of operator and it shall comply with
all regulations of the Federal Fair Labor Stan-
dards Act with respect to minimum wages, over-
time pay, and hours of work. operator shall
further comply with all regulations of the Fed-
eral Social Security Act regarding the with-
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holding of social security taxes and all regu-
lations of the Internal Revenue Services re-
garding Income Tax Withholding Regulations.
(f) Operator shall furnish all seeds, fertilizers,
herbicides, insecticides, plant material, and
all other like or similar items necessary to
carry out the farming operation herein contem-
plated.
(g) operator shall limit the use of playa lakes and
man made reservoirs existing upon the land de-
scribed in Exhibit "A" as used in conjunction
with said land, so that such facilities will be
used for emergency storage of waste water or to
capture surface run off water. Operator shall
use his best efforts to dispose of all waste
water pumped to the land in question on a daily
basis so that the playa lakes and man made
reservoirs shall be used as hereinabove set
forth.
(h) Operator shall control all weeds and noxious
grasses along fence rows, turn rows, and other
areas within the boundaries of the property de-
scribed in Exhibit ''A" being used for farming
or agriculture purposes.
(i) Operator shall maintain and keep in a good
. state of repair all fences located in, upon or
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around the property described in Exhibit "A"
attached hereto.
(j) In relation to the flow lines, gate pipes, hy-
drants, fitting irrigation motors, pumps and
all sprinkler systems owned by City, and which
form a part of the City's sewage disposal sys-
tem Operator shall:
,:
(1) assist City in locating and mapping all of
the above items:
(2) take care in the farming operation con-
ducted by Operator so as not to damage or
injure such equipment above mentioned:
(3) notify City as soon as possible of any re-
pairs or maintenance needed to keep the
above item in operational order:
(4) in emergency situations only, when due to
the circumstance City cannot make immedi-
ate repairs to the above property, effec-
tuate such temporary repairs or mainte-
nance of the above item until City may
make permanent repairs or undertake the
maintenance required:
(5) routine maintenance of the above item such
as lubrication and the like shall be per-
formed by Operator.
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(k) Operator shall conduct its farming operation in
such a manner so as not to injure or disturb
dikes and berms located upon the property de-
scribed in Exhibit "A" attached hereto and
shall undertake any repairs or maintenance as
may be required to said dikes or berms so as to
present the escape of sewage effluent water
onto unpermitted lands.
(1) Operator shall maintain full and complete books
of account covering all income and expenses in-
curred as a result of the farming operation
here undertaken by Operator. Operator shall
make such books of account available to City at
any time for review or audit by City or City
External Auditors. In addition Operator shall
keep such other records as may be requested by
City and such other record shall likewise be
available to City as above mentioned.
(m) Operator shall during the farming operation
here undertaken by Operator consult with and
keep City fully advised of all farming opera-
tions performed by Operator so that City will
have a complete understanding of the current.
progress being made by Operator in fulfilling
the requirement of any approved farming opera-
tional plan. It is further understood that Op-
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erator will consult with City on any changes or
amendments to said plan.
(n) Operator shall act as agent for the City in
disposing of all harvested crops grown upon the
land described in Exhibit "A", attached hereto
and made a part hereof. In this respect Opera-
tor shall follow the guidelines herein below
set forth:
(1) operator may offer such harvested crops
for sale at the current market value for
like crops offered for sale in Lubbock
County, Texas;
(2) operator shall attempt to secure offers on
such harvested crops from more than one
source where possible;
(3) operator shall inform City of any offers
secured for the sale of harvested crops
prior to acceptance of such offers;
(4) all sales shall be for cash or its equiva-
lent and shall be payable to City;
(5) city reserves the right to refuse all of-
fers for the purchase of harvested crops;
(6) operator shall faithfully account to the
City for all monies secured by or coming
into his hands as a result of the sale of
harvested crops.
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(o) Operator shall act as agent for the City to al-
low ~he grazing of cattle upon the property de-
scribed in Exhibit "A" attached hereto and made
a part hereof and in this respect shall follow
the following guidelines:
(p)
(1) operator may authorize the grazing of cat-
tle upon the property.described above pro-
vided the City secures the current market
price for such grazing as exists in
Lubbock County, Texas;
(2) operator shall inform City of all such
transaction prior to authorizing the graz-
ing of cattle;
(3) all compensation for such grazing of cat-
tle shall be for cash or its equivalent
and shall be payable to the City;
(4) city reserves the right to disapprove any
or all grazing of cattle upon the land
above described;
(5) operator shall faithfully account to the
City for all monies secured by or coming
into his hands as a result of grazing of
cattle upon the land above described.
Operator shall conduct all farming operations
upon the property described in Exhibit "A" at-
tached hereto in a farmlike and workmanlike
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manner and shall devote its full attention to
such farming operations and use its best ef-
forts to operate the farm in a successful fi-
nancial manner.
(q) operator shall comply with all rules or regula-
tions of the u.s. Department of Agriculture or
Federal law applicable to such agency that may
be applied to the farming operation undertaken
by Operator for City and Operator shall like-
wise comply with all applicable law, rules or
regulations of the Texas Department of Agricul-
ture that may be applicable to the farming op-
eration.
s. ~. The term of this agreement shall be for five
years beginning on the 3cO.,t..§ day of Se.pie m /Je.e , 1986,
and ending on the .3atA day of SeLb-/emAU , 19 9 I , un-, -
less sooner terminated in accordance with the provisions for
termination hereinafter set forth in this agreement.
6. Management Fee and Expenses. In consideration of
the covenants and agreements of Operator included herein and
of the performance of Operator hereunder, City shall pay Oper-
ator a management fee as follows:
· (a) During the first year that this agreement is in
effect city shall pay a management fee of One
Hundred Thirty Five Thousand Dollars
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-($135,000.00), said fee to be paid to Operator
in equal monthly installments.
(b) During the second year that this agreement is
in effect City shall pay a management fee of
one Hundred Thirty Five Thousand Dollars
($135,000.00) to Operator, said fee to be paid
in equal monthly installments.
(c) During the third year that this agreement is in
effect City shall pay a management fee of One
Hundred Thirty Five Thousand Collars
($135,000.00) to Operator, said fee to be paid
in equal monthly installments.
(d) During the fourth year that this Agreement is
in effect City shall pay a management fee of
One Hundred Thirty Five Thousand Collars
($135,000.00) to Operator, said fee to be paid
in equal monthly installments.
(e) During the fifth year that this Agreement is in
effect City shall pay a management fee of One
Hundred Thirty Five Thousand Collars
($135,000.00) to Operator, said fee to be paid
in equal monthly installments.
The management fee to be paid to Operator as hereinabove
set forth shall be the sole compensation to be paid to Opera-
tor for its services rendered under this agreement. In addi-
tion to the management fee, City shall within ten (10) days of
. .
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receipt of invoice from Operator reimburse Operator for all
reasonable and necessary expenses incurred by Operator in the
farming operation when such expenses have been incurred in ac-
cordance with the provisions of paragraph 4(c) of this agree-
ment. Buy way of illustration and not by exclusion the fol-
lowing are examples of such expenses:
(l) Wages and fringe benefits of all employees
whether temporary, part time or full time.
(2) The cost of all fuels used in connection with
the farming operation.
(3) The cost of all utilities used in connection
with the farming operation.
(4) The cost of all herbicides, pesticides, fertil-.
izers and other chemicals used in connection
with the farming operation.
(5) The cost of all seeds or plant material used in
the farming operation.
(6) The cost of all insurance or bonds required by
Operator under this agreement.
(7) Routine maintenance expenses incurred in con-
nection with the farming equipment or machinery
used in the farming operation.
·(B) Major expenditures for maintenance of farming
equipment or machinery, which for the purposes
of this agreement shall mean repairs which will
exceed Five Hundred Dollars ($500.00) in cost,
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shall not be reimbursed to operator unless op-
erator has first obtained approval for such re-
pairs from City in advance.
(9) No expenses of the manager, assigned to oversee
the performance of this agreement by Operator
shall be included in the reimbursable expenses
hereinabove set forth save and except the cost
of fuel, insurance, routine maintenance or ap-
proved major maintenance incurred by said man-
ager in connection with the vehicles used by
said manager in the farming operation.
(10) Rental or lease cost of securing any additional
farm machinery deemed necessary for proper op-.
eration of the farm. Additional farm machinery
shall be understood to be machinery not owned
or in the possession of Operator on the date of
execution of this agreement.
(11) Any additional expenses necessary to comply
with orders or rules of any State or Federal
Regulatory Agency or Commission having juris-
diction over the farming operation or other ac-
tivities contemplated by this agreement.
"(12) All expenses incurred in maintaining fences or
other permanent improvements.
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7.
(13) Only with specific approval first obtained from
city expenses connected with any subcontractor
deemed necessary by Operator.
· (14) Reasonable expenses Qonnected with bookkeeping
or accounting services incurred by Operator.
(15) Other reasonable expenses incurred by Operator
in discharging its obligation under this Agree-
ment.
Termination •. This agreement shall terminate and be
of no further force or effect between the parties upon the
happening of any one of the following events:
(a) At the end of the second and fourth year of
this agreement City has the right, without
penalty, to cancel and terminate this agreement
by notifying Operator of its intent to termi-
nate thirty days prior to the end of the second
or fourth year of this agreement.
(b) If at any time during the term of this agree-
ment there shall be filed by or against Opera-
tor in any court a petition in bankruptcy, in-
solvency, or for reorganization or for the ap-
pointment of a receiver or trustee of all or a
portion of the property of Operator and such
petition is not discharged within thirty (30)
days after the filing thereof then in such
event this agreement shall terminate as above
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(c)
said. However, in the event a petition is
filed against Operator for involuntary
bankruptcy and Operator advises City, in writ-
ing, that he has good faith defenses to such
action, then in such event this agreement shall
not be deemed terminated until such time as an
Order is entered adjudging Operator as a
bankrupt.
If at any time during the term of this agree-
ment Operator makes an assignment for the bene-
fit of creditors or permits Operators equipment
used in connection with this agreement to be
taken under any writ of execution or attach-
ment.
(d) In the event City fails.to pay to Operator the
(e)
,,:
consideration herein set forth or perform any
covenant agreed to be performed by City and
such failure continues for a period of thirty
(30) days after notice from Operator pointing
out such failures.
In the event Operator fails to render any of
the services herein agreed to be performed by
Operator or fails to perform any covenant
herein agreed to be performed by Operator and
such failures continues for a period of thirty
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(30) days after such failure has been pointed
out to Operator by city.
Upon termination of this agreement neither of the parties
hereto shall have any further duty or obligation to the other
hereunder except for the payment of any amounts due hereunder
prior to termination and not yet paid, however, Operator shall
have the duty upon termination to deliver to City all items of
property purchased by Operator and reimbursed by City which
are· in· Operator's possession but have not yet been incorpo-
rated into the farming operation and to render a final-ac-
counting to City of Operator activities to date of termina-
tion.
s. Assignment. Operator shall not assign this agree-
. ment to any other person, firm, corporation or association
without the prior written consent of City.
9. Appointment of Manager. Operator shall during the
term of this agreement appoint a manager of the farming opera-
tion contemplated by this agreement and such appointment must
be concurred _in by City. City shall further have the right to
request the removal of a manager appointed by Operator during
the term of this agreement and such request shall be immedi-
ately honored by Operator who shall upon such event appoint
another manager in accordance with the above procedure.
10. Insurance. During the term of this agreement Opera-
tor shall carry the following insurance coverages:
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(a) General liability coverage with broad farm en-
dorsement in the amount of five hundred thou-
sand dollars per occurrence and five hundred
thousand dollars aggregate.
(b) Vehicle liability insurance covering all vehi-
cles operated by Operator whether owned, non-
owned or borrowed in the amount of five hundred
thousand dollars combined single limit.
The above policies of insurance shall be maintained dur-
ing the term of this agreement, purchased from a company au-
thorized to do business in Texas and shall name city as an ad-
ditional insured. The policies shall further provide that
they may not be canceled by the insurance company without
first giving City ten (10) days notice of such fact. In addi-
tion, Operator shall file with the city Secretary of the city
Certificate of Insurance evidencing the above coverage.
11. Workers Compensation Insurance. Operator agrees
during the term of this agreement to purchase and keep in
force a policy of workers compensation insurance which policy
provides insurance coverage in accordance with state law.
12. Governing Law. This agreement shall be governed by
and construed and enforced in accordance with the laws of the
State of Texas.
13. Benefit. This agreement shall inure to the benefit
of and be binding upon the parties hereto and their respective
successors or-assigns.
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14. Notices. Any notice or communication by either
party to the other shall be in writing and deemed to have been
duly given if either delivered personally or mailed, postage
prepaid, registered or certified mail, addressed as follows:
Operator:
City:
Standefer & Gray, Inc.
P.O. Box 711
Lubbock, Texas 79408
Attn: J. Frank Gray
and
McWhorter, Cobb & Johnson
P.O·. Box 2547
Lubbock, Texas 79408
Attn: Jack Driskill
City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
Attn: Director of Water Utilities
or to such other address, and to the attention of such other
person or officer as either party may designate in writing by
notice duly given. Any notice given under this section shall
be effective if hand delivered, when delivered, and if mailed
24 hours after mailing.
15. Waiver/Breach. The waiver or breach of any term or
condition of this agreement shall not be deemed to constitute
the waiver or breach of the same or any other term or condi-
tion.
16. Seyerability. In the event any provision of this
agreement is held to be unenforceable for any reason, the un-
enforceability thereof shall not affect the remainder of this
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agreement which shall be in full force and effect and enforce-
able in accordance with its terms.
17. Entire Agreement. This instrument constitutes the
entire agreement between the parties with respect to the sub-
ject matter hereof, and supersedes any and all other agree-
ments, understandings, negotiations or representations oral or
written, between them and no provision hereof shall be altered
or amended unless in writing and executed by the parties
hereto.
18. Heading. The headings contained herein are for con-
venience of reference only and are not intended to define,
limit or describe the scope or intents of any provision of
this·agreement.
19. Counterparts. This agreement may be executed in any
number of counterparts, each of which shall be an original,
and each of such counterparts shall together constitute but
one and the same agreement.
2 o. Prevention of Performance.· Operator shall not be
liable for any loss or damage to City and shall not be in de-
fault (including, without limitation, direct, indirect, inci-
dental and consequential damages) due to any failure in its
performance hereunder for any of the following:
-· (a) Because of compliance with any order, request
•'
or control of any governmental authority or
person purporting to act therefor, whether or
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not said order, request or control ultimately
proves to have been invalid.
(b) When its performance is interrupted or pre-
vented, or rendered impossible or unpractical
because of wars, hostilities, public disorders,
act of enemies, sabotage, strikes, lockouts,
labor or employment difficulties, fires,
weather, acts of God or any cause beyond its
control whether or not similar to the f.ore-
going.
21. Security of Farm Operation. Operator shall in addi-
tion to all of the services to be rendered by Operator assign
not less than three employees to reside in houses owned by
City and located upon the property described in Exhibit "A"
for the purposes of providing security.for the farming opera-
tion and the facilities of City located upon such property.
These employees shall use their best ef~orts to see that no
one is allowed to hunt or fish upon.the property described in
Exhibit "A" and that no one, other than employees of Operator
or employees of City is allowed upon such property without
prior authorization by City, however, business visitor may be
allowed upon the property when accompanied by an employee of
Operator."
22. Bond. Operator being an independent contractor un-
der this agreement shall furnish to the city a fidelity bond
executed by the said Operator as principal and a bonding com-
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pany authorized to do business in the State of Texas as secu-
rity in the penal sum of $50,000.00 conditioned that the said
operator, its servants and employees will well and truly ac-
count for all money and property coming into their hands which
are due to City under this agreement and timely turn over such
money and property unto the City in a prompt and expeditious
manner, and that all claims made against City for reimburse-
ment for expenses, as authorized in this agreement, by said
operator shall be for expenses solely related to the transac-
tion related to the carrying out the provisions of this agree-
ment during the term hereof.
23. Contract of Sale. While it is necessary to refer to
Sellers in this contract, they are not parties or signataries
to this agreement, but the parties to this agreement are City
and operator, however, the making and execution of this Man-
agement Agreement is a condition precedent in the contract of
sale between City and Seller as set forth in paragraph VII
subsection (j) of said contract of Sale which was executed by
City and Seller on the 9th day of June, 1986.
24. Understanding of Parties. It is hereby agreed as
follows with respect to the farming operations under consider-
ation herein:
·(a) City is to pay all expenses, losses, and is to
reap all the profits of the above operation as
herein set forth.
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(b) 'l'he periodic fixed flat fee to be paid Operator
by City does bear a reasonable relationship to
the services to be performed by Operator.
(c) That the Operator is an independent contractor
under the terms of this agreement, and that the
workmen, employees, and servants used by Opera-
tor in performing services under this agreement
are employees of the Operator and are to be
paid by it.
(d) That the farming operation to be undertaken by
City, through this agreement, is a proprietary
function of the City and is separate and apart
from the operation of City sewage disposal sys-
tem which is a governmental function of the
City.
(e) City shall control and be responsible for the
major repairs for all flow lines, gated pipe,
hydrants, fittings, irrigation motors, pumps
and all sprinkler systems owned by City and lo-
cated upon the property described in Exhibit
"A", attached hereto, which property forms a
part of its sewage disposal system and except
as herein provided or agreed to in the plan for
farming operations, Operator shall not control
or maintain such property.
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(f) Notwithstanding anything in this agreement to
the contrary it is agreed and understood by the
parties hereto that City may terminate this
agreement at any time upon giving thirty (30)
days written notice to Operator and such termi-
nation shall be without penalty.
(g)
(h)
Notwithstanding anything in this agreement to
the contrary it is agreed and understood by the
parties hereto that City retains the continuing
right to terminate this agreement at the expi-
ration of each budget year that this agreement
is in effect by giving notice of such fact to
Operator and such termination shall be without
penalty to City.
The City agrees to designate an officer or em-
ployee of the city to be its representative for
communications between Operator and City with
said designation to be set forth in the plan
for the farming operation as required by this
agreement. Operator•s manager shall be the
representative for all communication to be re-
ceived by or directed from Operator •
. ( i) Operator may engage subcontractor to assist Op-
erator in the farming operation, but only when
prior approval is obtained from City in advance
of any such subcontractor being engaged.
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(j) In the event that this Agreement is terminated
in accordance with the provisions of subsection
(f) or subsection (g) as set forth above in
this section or in accord with the provisions
of paragraph 7 of this Agreement, then in such
event, the city shall have the option, which
shall be exercised within fourteen (14) days of
the date of termination, to buy all those items
of farm equipment or machinery listed and set
forth in Exhibit B, attached hereto and made a
part hereof, which items have been designated
to have a residual value at the expiration of
this Agreement according to to its terms. The
consideration to be paid to Operator from City
for said farm equipment or machinery shall be
in accordance with the depreciation schedule as
set forth in Exhibit B above referred to and
shall be paid in cash within ninety (90) days
of termination. If at the time of such sale a
particular item of equipment or machinery has
been fully depreciated or, with the consent of
the City, said item of equipment or machinery
has been otherwise disposed of then in such
event such item shall be deleted from the Con-
tract of Sale. It is agreed to by the parties
to this Agreement that the items of farm equip-
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mentor machinery listed on Exhibit Bare nec-
essary to meet the fuctional requirements of
the City of Lubbock in the farming operation,
which is the subject matter of this Contract,
which farming operation incorporates the dis-
posal of city's sewage effluent waters upon
said farm lands all for the preservation of the
public health of the citizens of the City of
Lubbock. It is further agreed by Operator,. in
the event city exercises its option to purchase
as herein set forth, that it shall transfer to
City clear title to all such farm equipment or
machinery purchased by City in accordance with
this subsection upon payment of the considera-
tion as above set forth.
(k) Operator agrees and understands that the city
of Lubbock is a home rule municipal corporation
operating under Article 11, sec. s, V.A.T.C.
and that operator understands the laws of the
state of Texas applicable to such home rule mu-
nicipal corporation and the limitations placed
upon such municipal corporation thereby.
25. ~rior crops. In the contract of Sale between City
and Sellers executed June 9, 1986, Sellers did state that they
may plant a crop on the land owned by Sellers prior to closing
of the abovementioned Contract of Sale. At the writing of
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this agreement Sellers have not yet undertaken such activity
and the parties hereto agree that if Seller does plant such
crop prior to closing of the above Contract of Sale that City
and Sellers will negotiate in good faith as to compensate op-
erator for cost and materials expended in connection with said
crop.
This Agreement is executed in duplicate originals on this
the 25th day of September , 1986 and the effectual
date shall be as herein set forth.
CITY OF LUBBOCK STANDEFER & GRAY, INC.
BY: . #/: ~ g ~ t: •
B'.c. cMINN, MAYOR
ATTEST: ATTEST: ~u
City Secretary SecretaryJ
APPROVED AS TO FORM:
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.t:u\.n.L.O.I. .I. .;.
n)::F,CRIF.TION O.F SEVENTEEN TRACTS OF LAND NUMBERED TRACTS 1-17
'·(INCI.:USIVg) LOCATED m LUBBOCK COUNTY, TEXAS AND DESCRIBED AS FOLLO~VS:
., Tract. no. l
114.34 acres out cf the West one-half of Survey 9, Bleck s,
and BS.66 acres cut of the East Half of Survey 10, Blocks,
Lubbock County, Texas, the 114.34 acres being the North par:t
of a 200 acre tract out of the West one-half of Survey 9,
Bleck s, fully described in a deed to v. v. Clark recorded
in Vol. 234, pa9e 171 of the Deed Records ~f Lubbock County,
Texas, and the 85.66 acres bein9 the N.E. part cf a 572 acre
tract cut cf Survey 10, Bleck S, fully described in the deed
to v. v. Clark, said 200 acres partly in Survey 10, and partly
in Survey 9, Sleek Sis particularly described ~s fellows:
BEG:UmING at a point, the N.E. corner of Survey 10, Block S
which 'is also the N.W. corner of Survey 9, Block s.
THENCE s. 19• 24' E. in the ri9ht-of-way of an East-West
paved county Road, 670.00 varas to a point in the right-cf~
way, the N.E. corner of the 200 acre tract of land described
in the deed to v. v .. clark, and the N.E. corner of this tract.
THCNCE s. o• 40' E., along the East line cf said 200 acre
tract, and along the fence line on this line, 39 feet south
of the center line strip in th·e pavement is a 1/2 inch iron •
pipe at a fence corner, in all a distance of 963.41 varas
to a 3/4 inch iron pipe in the fence line, and in the East
line of said 200 acre tract, the S.E. corr.er of this tract~
THENCE n. 89• 24' w. 670.00 varas to a 3/4 inch iron pipe in
the East line cf Survey 10, which is also the west line of
Survey 9,. Blocks •.
THEHCE N. s9• 11• w. 511.2 varas to a l/~ inch ir.o!' pipe, the
s.w. corner of this tract.
THE11CE N. o• 40' If. 906.41 varas to a point in the middle of
the East-West paved road ri9ht-of-way, the N.W. corner of
this tract, which is in the north line of Survey 10, Blocks,
and there is a 3/4 inch iron pipe in the west line of this
tract at a fence corner 44.00 feet south of the center line
stripe of the paved road.
THE~CE s. 89• 18~ E., along the ~orth line of Survey 10,
Block S, 156.2 varas to a point. the Ell corner of Survey ~o,
Block,S, and the Ell corner of this tract. .
Tlf:':NC!: N. o• 40' w. 57 varas to a point, a corner of Survey 10,
Dlock S, and a corner of this tract.
TH~NCE s. 89• 18' E., along the most north line of Survey 10,
Slock S, a distance of lSS.O varas. to the PLACE OF BEGINNING,
and containing 200 acres of land, more or less.
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Tract No. 2
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1SJ.9l acres out of Sections 9 and 10, Blocks, G.c.,s.r.
R.R. co.~ Cert. l/504, described as followss
SEGinttU~C. .at:· a 3/•• galvanized iron pipe in N-S fence, the
SE corner of a 200 acre tract previously conveyed by deed
frcm Dr. v. v. Clark and in the East line of Tract No. l
as recorded in Volume 234, Page 171, of. th"e Lubbock County
Deed Records, and being the NE corner of this survey:
THEHCE SO deg. 40 min. E 728 varas to a fence corner post,
the SE corner of said Tract No. 1, and the SE corner of this
survey;
THENCE U B9 deg. 24 min. w 670 varas to a point in the West
line of Sec. 9, Blocks, said point being 213 varas NO deg.
40 min. W of the SW corner of Sec. 9, the common corner of
Sections 9 and 10 of Blocks,
THENCE 89 deg. 11 min. W 355 varas to a point, the Ell corner
of Tract No. 3 as described by deed recorded on Page 171 of
volume 234 of the Lubbock County Deed Records, an Ell corner
of•this survey; 1
THENCE SO deg. 40 min. E 57 varas to a point the Southerly
Ell corner of said Tract No.· l, and bein9 an Ell corner of
this survey:
THENCE N 89 deg. 11 min. W 156.2 varas to a l/4" iron pipe
set in E-W fence, in the South line of Tract No. l herein-
above described, the SW corner of this survey;
THENCE 11 0, deg. 40 min. W 784 ;9 varas to a 3/4 .. iron pipe,·
the SW corner of above said 200 acre tract and the NW corner
of this survey;
THENCE S 89 deg. 11 min. E 511.2 varas to a l/4• iron pipe
in the West line of .section 9, Blocks, a corner of this
survey:
THENCE S 89 de9. 24 min. E 670 varas to the PLACE OF BEGINNING • ..
!bth of the above Tracts 1-2 are SUSJ'ECT TO that certain mineral
interest ·reserved, by the Granter ·in a Deed from General Junerican
Life Ins. Co. to Roy Ilise. et ux, ~ated September 29, 1937, recorded
in vol. 217, Page 182, Deed Records, Lubbock County, Texas, and
further SAVE A!JD EXCEPT that certain mineral interest reserved by
the Granters in a Deed from v. v. Clark, et al to J'. Frank Gray,
et al, dated J'anuary 31, 1951. recorded in vol. 432, Page 3&S, Deed
Records of Lubbock County, Texas, and FURTHER SUB3ECT TO that certain
royalty interest reserved by J'immie L. Standefer in a Deed from
J'im.mie L. Standefer and Dorothy Sue Clendenin-t.o Wylie Hudman and
Dewey Hukill dated J'uly, 1966, and recorded in Vol. 1126·, page 1£4,
Deed Records cf Lubbock County, Texas.
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-:-r .,ct 110. l
That certain tract or parcel of land BEGINNING in the center
of East-West Park Road being Southeast corner of West one half
sections. Blocks. situated in Lubbock County, Texas;
THENCE North 557 varas to stone set under fence the Northeast
corner. of Newman Boles Tract described in Vol. 33B, page 95,
Deed Records of said County;
THENCE West 640 varas to point in North line of Newman Boles
tract;
THENCE South 152 varas along water line of lake to point:
THEtlCE East 32 varas to point South of wet lake;
THENCE South 398.4 varas to point in center line of Public
Road: .
THENCE South 89• 23' East 612 varas to PLACE OF BEGINNING,
being 60.78 acres, and being same land described in Vol. 583,
page 586, Deed Records, said County, reference to which is
made, and subject to reservations set out therein;
Soles reserved one-half Cl/2) of the oil, gas, and other minerals
but expressly does not include caliche er ground water SUBJECT TO
an undivided l/32 royalty reserved by Jimmie L. Standefer as
described in Deed recorded in Vol. 583, page 586, Deed Records of
Lubbock County, Texas.
By Warranty Deed in October, 1968, J. Frank Cray and Wylie Hudman
acquired the remainin9 undivided one-half Cl/2) interest in the
minerals from Lura Barton Boles. This one-half (1/2) interest is
net subject to the l/32 royalty of Standefer.
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':"::',1C't NO. 4
A tract or parcel of land out of the Southeast corner of
section 1, &lock a, Lubbock County, Texas, BEGIUNING at a
point 3774 feet South of Northeast corner of said Section li
THENCE West 1176 feet to point:
THENCE South 1427 feet to point:
THENCE East 1176 feet to point:
THENCE North 1427 feet to point, containing 38.525 acres and
being the same land described in Deed recorded in Vol. 448,
page 488, Deed Records said County, being a conveyance from
City of Lubbock to J. Frank Gray, et al, and subject to
mineral reservations set out therein.
SUBJECT TO an undivided one-half (1/2) interest in oil, gas, and
other minerals reserved by the City of Lubbock in Warranty Deed
recorded in Vol. 448, page 488, Deed Records cf Lubbock County,
Texas, and an undivided 1/32 royalty reserved by Jimmie L. Standefer
as described in Deed recorded in Vol. 583, page 586; Deed Records of
Lubbock County, Texas. •·
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Tract: No. S
All of SectiOff 11,. Block B, Lubbock County, Texas, SAVE AND EXCEPT:
(1) 38.525 acre tract conveyed to City of Lubbock described
by metes and bounds in Deed recorded in Vol. 453, Paqe
228, Deed Records of said County;
(2) 10.827 acre tract owned by Clyde H. Clark and described
in Partition Deed recorded in Vol. 1122, Paqe 259,
Deed Records of said County, and
(31 15.12 acre tract now owned by J. Frank Gray et ux, as shown
by Warranty Deed recorded in Vol. 598, Paqe ,,1, Deed
Records of Lubbock County, Texas.
SUBJECT TO an undivided one-half (1/2) interest in the oil, gas, and
other minerals reserved by J. L. Birdwell and wife, Cordie Birdwell,
described in Warranty Deed recorded in Vol. 360, Paqe 247, Deed Records
of Lubbock County, Texas, and SUBJECT TO an undivided 1/32 royalty
reserved by Jir:=ie L. Standefer as described in Deed recorded in Vol.
583, Page 556, Deed Records of Lubbock County, Texas.
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ax-....... m;wew.M ,,., s ....... s::::.••r~-c .. --<•••'·J-~ .. .:,rw:-t.t.d.::.:W .. »IJ&AHl<!!t 4. US:Q4li = •••
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Tract No. 6
The South 150 acres of land out of the 299.1 acre tract of
land located in Section 10, Block S, Lubbock County, Texas,
which is described by metes and bounds as follows:
BECINNINC at a point which bears North s9• is• East a dis-
tance of 1118.2 feet f~-the Northwest corner of Section
10, Block S;
THENCE South o• 45 1 42• East along the West line of the
Frank Cray tract, a distance of 4749.5 feet to the South-
west corner of the Frank Gray tract:
THENCE South sg• 18' West a distance of 2747 feet to a
point, the Southwest corner of this tract: •
THE!1CE North 4749.5 feet to the PLACE OF BECINNING.
The tract herein described is the South 150 acres of 299 acre
tract conveyed to Ooyce M. Clark by instru.~ent recorded in
Vol. 846. page 335, Deed Records of said county. •
SU83ECT TO a 1/16 royalty reserved by Great American Life Insurance
Company in Deed recorded in Vol. 217, page 181, Deed Records of
Lubbock County, Texas.
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Tract No. 7
A one acre tract or parcel of land lying and situated in
Lubbock County, Texas, and bein9 more particul~rly
described as follows:
BEGINNING at a point 1090.2 feet East and 20.0 feet South
of the Northwest corner of Section 10, Block S for the
beginning a,rner of this tract:
THENCE South 89 deg: 18 min. West 272.25 feet to the
Northwest corner of this tract, a point marked with a
1/4• iron rod1
THENCE South O deg. 40 min. East 160 feet to the Southwest
corner of this tract, a point marked wi~h a 1/4• iron rod:
THENCE North 89 deg. 18 min. East .272.25 feet to the South-
east corner of this tract, a point marked with a 1/4• iron
rod;
THENCE North 0 deg. 40 min. West 160 feet to the Northeast
corner of this tract, a point marked with a l/4• iron rod
and being the PLACE OF BEGINNING.
And also including all interest owned by the Estate of v. v. Clark to the said land to the North and East of the
projection of the West line of the above described land to
S0th Street·(F.M. Hi9hway 835) and to the West of the
projection of the East line of th~ above described land to
S0th Street (F.M. Highway 835).
SUB~ECT TO any mineral conveyances or reservations of record, and
any right of way deeds of record across said land.
The tract herein described is the tract conveyed to Gray and Hudman
by instrument recorded in Vol. 1172, page Sl4, Deed Records, Lubbock
County, Texas.
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Trac1: No. 8 • The Northwes1: quarter (NW/4) of Section Fourteen Cl4),
Block I, Certificate 360, T. T. Ry. Co., Lubbock County,
Texas.
SUS~ECT TO a l/16 non-participating royalty interest reserved by
Alnerican National Bank of Austin, Texas, Trustee, by instrument
recorded in Vol. 377, page 328, Deed Records of said County:
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Tract No. 9
55.634 acres of land, being 24.54 acres cut cf Sec. 5-1/2,
Blocks. Lubbock County, Texas, and Jl.094 acres cut cf
See. 5. ·Block S. Lubbock County, Texas.
BEGINNING at a point 642.29 feet North of Southwest corner
of Sec. 5-1/2, ~locks, Lubbock County, Texas;
THENCE North 875.77 feet to a point1
THENCE East at 968.6 feet past the West line of Sec. 5,
Block s, continuing for f. total distance of 1821.62 feet
to a paint; t.iJ,
THENCE South 422.22 feet to a point;
THENCE East 88.89 feet to a point;
THENCE south o• 10' 44• East 1086.60 feet to a point:
THENCE West 933.26 feet to a point being the Southwest corner
of Sec. 5, Blocks,
THENCE North•O• 51' West 361.85 feet to a point:
THENCE south sg• 26' West 719.6 feet to a point,
THENCE North 280.44 feet tc a point;
THENCE South 89· 26' West 261.1 feet to the PLACE OF BEGINNING.
Containing 55.634 acres of land, more or less.
LESS AND EXCEPT that certain tract conveyed to Raymond H. Furr by
J. Frank Gray, et al, dated July, 1974, of record in the Deed Records of Lubbock County, Texas. Said tract measuring approximately 158
feet by 261.1 feet.
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Tract No. 10
The North 149.1 acres, more or less, of the following des-
cribed land situated, lying and being in Lubbock County,
Texas. to-wit:
A 299.10 acre tract of land located in Section 10, Blocks, Lubbock County, Texas, being described by metes and bounds
as follows:
BEGINNING at & point which bears North 89•18' East a dis-
tance of 1,111.20 Feet from the Northwest corner of Section
10, Block S;
THENCE North a9•11• East a distance of 2,739.00 Feet to the
West line of a tract of land previously conveyed by v. v.
Clark to Frank Gray1 •
THENCE South 0•45•42• East along the West line of the Frank
Gray Tract a distance of 4749.50 Feet to the Southwest
corner of the Frank Gray Tract:
THENCE South a9•1s• West, a distance of 2747.00 Feet,
THENCE North 0•40• West, a distance of 4749.50 Feet to the PLACE OF BEGINNING.
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Tract No. 11
All that certain tract of land in Lubbock County, Texas,
being described by metes and bounds as follows:
15.12 acres ot land out of the South part ot Section 11,
Block a, Indianola R.R. Co., Certificate 16/274,
!£GINNING at a 1• iron pipe set tor the SE corner ot this
tract in North line of Farm Road No. 835, from which the
SE corner of Section 11, Block B bears South 59 feet and
East 2763.6 feet,
THENCE N. 89•57' w. 729 feet to a 1• iron pipe set in
North line of Farm Road No. 835;
THENCE N. a,•12• w. 100.s feet to a 1• iron pipe set in North line of Farm Road No. 8351
THENCE N. a9•37• w. 938 feet to a 1• iron pipe set in North
line of Farm Road Ho. 835;
THENCE N. 0•03• E. 364.8 feet to al" iron pipe set for the
NW corner of this tract;
THENCE s. 99•57• E. 1767 teet to a 1• iron pipe set for the
NE corner of this tract:
THENCE S. 0•03• W. 380 feet to the PLACE OF BEGINNING.
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Tract No. 12
All that certain tract and parcel of land situated in
Lubbock County, Texas, described as follows, to-wit:
The Ea.st one-Half (E/2) of Survey 14, Block I, Abstract
742, as shown by Plat prepa.red by Sylvan Sanders, Licensed
Land Surveyor, Lubbock County, Texas, said prope~ty being
more fully described in two deeds from American National
Bank of Austin, Trustee, to A. L. Cone, both of said deeds
being dated February 21, 1949, and one of said deeds
recorded in Vol. 382, page 89, and one recorded in Vol.
382, pa9e 92 of the Deed Records of Lubbock County, Texas.
SUBJECT TO a reservation of the 1/16 non-participating
royalty interest set out in tvo deeds dated February 21,
1949, recorded in Vol. 382, page 89, and Vol. 382, page
92, resp~ctively, Deed Records of Lubbock County; and
RESERVATION of an undivided l/2 interest in all oil, gas
and other minerals, with rights of ingress and egress for
exploration thereof set out in deed from A. L. Cone and
wife to James Lynn Jones dated February 19, 1970, such
reservation being charged with 1/2 of such royalty reser• va.tion.
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-·-__ ••. / A 6ll.68l ac:f Ca1 ~i'iand L~ ~f ~actions 9 and
16, Bloc:k s. c. c. & S. r.-.~~ R. Co. Survey, Lubbock County~
Tc:.:as,. and bein9 more particularly described as !f1llcws1 _ .. -..... . .... ••-:--·, . -.,. .
BECINNING at an iron rod eet in the south R.o.w. line of
Farm Road 835 and the west line of section 18 and the East
line of section,, for the be9inning corner of this tract.
whencec the Northeast corner of Section 9 and the Northwest
corner-of section 18, Blocks, bears North 0•40• West 40.6
feet,
THENCE South o• 401 East along the East line of Section 9
and the West line of Section 18, 200 .2 feet to a 1 •. iron
pipe:
THENCE North s9•19• East 408.~ feet to a 1• iron pipe:
THENCE North o• 40' West 201.27 feet to an iron rod set in
the south R.o.w. line of Farm Road 8351 -...
THENCE North 99• 10• East along the South R.o.w. line of
Farm Road 835, 3745.77 feet to an iron rod set for the P.C.
of a curve to the right:
THENCE Southeasterly along a curve to the Right and the
South R.o.w. line of Farm Road 835, whose Radius is 1106.28
feet a distance of 1743.85 feet to an iron rod set for the
P.T. of said Curve:
THENCE South o• 31' East along the West R.o.w. line of Farm
Road 835. 2681.88 feet to an iron rod set for the Southeast
corner of this tract:
THENCE North e1• 10• West 1671.0 feet to an iron rod,
THENCE North o• 40 1 west 1337.0 feet to an iron rod,
t:HENCE North e1• 39' West 1808.57 feet to an iron rod,
THENCE South 92• 24' West 1816.07 feet to an iron rod set
in the West line of Section 18 and the East line of Section 9:
THENCE South o• 40' East along the East line of Section 9
and the West llne of Section lB. at 1626.73 feet pass a found
old Stone, continuing for a total distance of 1826.73 feet ·
to·• 1• iron pipe set at a fence corner,·
THENCE South s9• 25 1 40• West along a meandering fence line
3410.2 feet to a 1• iron pipe set at a fence corner. for •
the Southwest corner of this tract:
THENCE North o• 45' West along a fence line 4160.S feet to
a found 1/2• iron pipe in the South R.o.w. line of Farm Road
835, for the Northwest corner of this tract,
THENCE North as• 53• East along th.e South Jt.o.w. line of
Farm Road 835, 263.0 feet to a point;
THENCE South 94• 24' 30• East along the SQ~~h ~,O.W •• line
cf Farm Road 835, ·100.5 feet to a ooint:
THENCE North 99• 53' East along the south R.o.w. line of
-· Farm Road 835. 900.0 feet to a point:
THEt:cE North 84• 10• 30• along the South R.o.w. line of Farm
Road 835, 100.5 feet to a point:
THENCE North 99• 53• East along the South R.o.w. line of
• Farm.Road 835, 700.26 feet to a point:
THENCE south ss• 25' East along the South R.b.w. line of
Farm Road 835. 1353.l feet to the plac:e of BEC.IH?IING:
, Containing 63} .683 acres of land.
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TRACT14
A tract of land out of sections 1. 4. 9, 10, 11i&
14, Blocks. G. c. & s. F. R. R. Co. Survey, Lubbock County, Texas,
and beinq more particularly described as follows:
BECih"NX:lG at a l~" iron pipe set in the West line of Section
10 and the East line of Section l for the begiMinq corner
of this tract, whence a found ~y iron pipe and stone at the·
Southwest corner of Section 10 and the S?utheast corner of
section l bears South o• 40• East 433.ll feet:
TKE:SCE North 99• 18' East 4291.66 feet to a 1• iron pipe
set for a corner of this tract:
THENCE North o•. 40' West 158.33 feet to a l'"-i:r:on pipe set
for a corner of this tract:
THE~CE Nort.~ eg• 18' East 986.11 feet to a 1• iron pipe set
in the East line of Section 10 and in the West line of
section 9 for a corner of this tract:
THESCE South 59• 24' East 1867.11 feet to al" iron pipe
set for the Northeast corner of this tract:
THENCE South o• 45' East at 591.66 feet pass the South
line of Section 9 and the North line of Section 14, contin-
uing for.a total distance of 1,002.76 feet to al" iron pip~
set for the Southeast corner of this tract:
THE:~CE North 99• 24' West 1868.56 feet to a l" iron pipe
set in the West line of Section 14 and the East line of
Section 11, whence the Northwest cornu of Section 14 and
the Northeast corner of Section 11 bears North o• 40' West
411.l feet: ·
'nfE.>;CE South s9• 18 • West at 52·77. 78 feet pass a 1'" iron
pipe set in the West line of Section 11 and the East line
of Section 4, from this point the Northvest corner of Section
11 and the Northeast earner of Section 4 bears North o•
40' West 411.l feet: continuinq for a total aistance of
7479.28 feet to a 1• iron pipe set in the Northeast R.o.w •.
line of the P. & s. F. R.R. co. for the Southwest corner
of this tract:
··•-·-• -. --·J· THE!lCE North 39• 53' 30• West along the P. & S. F. R. R.
Co. R.o.w. 530.43 feet to a 1• iron pipe set for a corner
of this tract:
THENCE North sg• 18' East alon9 the _North tine of section
4 and the South line of Section 1, 450.B feet to a f• iron
pip~ set for a corner of this tract:
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THE::fCE North o• 40' West 433.33 feet to a l" iron pipe set
for a corner o{ this tract:
THENCE Horth sg• 18' East 2,006.11 feet to the place of
BECIHNh,c,
containing 191.989 acres of land •
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TRACT 15
A tract of land out of·Section 9, Blocks. G. c. c.
s.F.R.R. co. Survey, Lubbock County, Texas. and being more parti-
cularly described as follows,
BEGL--nlING at a 1• iron pipe set in the East line of Section
9 fer the Northeast and beginning corner of this tract, whence
the Northeast corner of s-ction 9 bears North o• 40" West
4157 .6 feet,
THENCE South o• 40' East 311.l feet t.o a 1• iron pipe set
for the southeast corner of this tract:
THENCE South ee• 17' 30• west 1218.15 feet to a 1• iron
pipe set for a corner of this.tract:
'!HENCE South 53• 14' 30• West 1223.1 feet to a 1• iron pipe
set for a corner of this tractr
'!HENCE North s9• 47' West 1202.5 feet to a 1• iron pipe set
for the Southwest corner of this tract;
· THENCE No.rth o• 45• West 1040.82 feet to a l" iron pipe set
for the Northwest corner of this tract:
'!HENCE North s9• 25' 40• East 3410.2 feet to the place of
BEGDtNING;
Containing 53.Sll acres of land.
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TRACT16
A tract of land out of section 18. Block S, c. c. &
s. F. R.R. co. survey, Lubbock County. Texas. and being more
particularly described as follows,
BEGWNING at a 1• iron pipi! set. in the West line of Section
18 for the southwest and beginning corner of this tract,
whence the Northwest corner of Section 18 bears North o•
40' West 4468.7 feet:
'l'HE~"CE North o• 40' West at 311.1 feet pass a 1• iron pipe
at the Northeast. corner of a S3.811 acre tract, continuing
for a total distance of 2137.83 feet to an irQn rod set for
the Northwest corner of this tract:
THENCE North e2• 24' East 1816.07 feet to an iron rod set
for a corner of this tract:
THEHCE South e1• 39' East 1808.57 feet to an iron rod set
for a corner of this tractr
THENCE south o• 40' East 1337.0 feet to an iron rod set for
a comer of this tractr
THENCE South e1• 10' East 1671.0 feet to an iron rod set in
the west R.o.w. line of F. M. Highway 835 for a corner·of this
tract;
THENCE South o• 31' East along the west R.o.w. line of F. H.
Highway 835, 747.02 feet to a 1• iron pipe set for the South-
east corner of this tract:
'l'HENCE North 67• JS' West 920.5 feet to a 1• iron pipe set
for a corner of.this tract;
'l'HENCE South 99• 28' 45• West 653.8 feet to a 1• iron pipe
set for a corner of this tractr
THENCE North 79• 32' West 1754.0 feet to a 1• iron pipe set
for a corner of this tract:
THESCE South 79• 30' West 725.4 feet to a 1• iron pipe set
for a corner of this tract:
THENCE North 76• 36' 45• Wesr 1025.S feet to a 1• iron pipe
set for a corner of this tract,
THEHC& South 23• 17' West 796,4 feet to the place of
BEGIUNL'lG:
Containing 170.517 acres of land.
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TRACT 17
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Being all of Section 1, Block B, Lubbock County, Texas,
except the areas uaed for highway purpooes and except
th,lt part of ·said Section 1 owned by J. Frank Gray and
t•;}•iie Hc.dna.nd and the Southwest Ona-Fourth (SW 1/4) of
Sect:.on 2, Bloc?t B, Lubbock County, Texas, ei:cept that
portion tharcof containing about fifty-th=ee (S3) acre~
lylng 1':orth of. tho Fort Worth & Denver Railway Cornpa.ny
right of way; and all of thnt part of Section Eleven (11),
Block B, owned by f:ITY and describ_ed as follows, to-wit:
BEGit;~n?G At a point in tho Northwest corner of said
Section 11:
THENCE South along its West lina 1427 feet to a point;
THENCE East 1176 feat;
Tl!E~1CE No:th 427 feet;
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THENCE West along the Uorth lino of said Section 1176
feet to tha Placa of·Bc__ginning.
Containing approxµna~ely 4 7D acres •
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.c:.;,.n.u:u.1.· t, MANAGEMENT AGREEMENT WITH CITY Of LlBBOCK July 25, 1986 ~ ~ fB.I.CE fB1CE eru.m ~ ~ .Y.WlE .QCL....1 om.....J. .OCL...J. .OCL...J. .OCL...J. ma:-1 HO. ITEMS DESCl3fPTIOH ~ 1m. 12&l .1282 li2Q J.2!l. mACTORS; 2 Case 2294 w/cab, ac, 18.4 X 38, radio, wts, Ser. 19930202, 19931008, 130 HP $24,000-26,000 $49,000 $43,430 $37,860 $30,604 $23,348 S 16,092 .. 2 Case 2094 w/cab, ac, 18.4 X 38, radio, wts, Ser. 19930409, 19931902, 110 HP 21,000-23,000 46,000 40,771 35,543 . 28,731 21,919 15., 107 Case 2594 w/cab, ac, 20.8 X 38, radio, wts, Ser. 19930007, 180 HP 36,000 36,000 31,908 27,816 22,485 17,154 11,823 1594 tractor, Ser. 111219265, 75 HP 14,200 14,000 12,409 10,~17 8,744 6,671 4,598 1 Case 480C Loader Backhoe, Ser. 19001154 18,000 15,954 13,908 11,242 8,577 5,910 1975 case 12670 - 4 Wheel Drive, 221 HP 11,000-16,500 11,000 9,750 8,499 6,870 5,241 3,612 1975 Model Case 11370, 180 HP 6,000-10,000 6,000 5,318 4,636 3,747 2,859 1,970 1975 Case l137C -Ser. 18773719, ' 180 HP, with tanks & spray rig 7,000 6,204 5,409 .. :,12 3,335 2,299 Ollver 11850 •.Dresel -power front 1,500 1,329 1,159 937 715 493 Hancock DI rt C«rrya 11, Mode I 1792 6,000 5,318 4,636 3,747 2,859 1,970 1 M.F. 135 Highboy Spray Rig -Ser. 1230437 2,000 1,773 1,545 1,249 953 657 -M.F. Highboy Tractor 4,000 3,545 3,091 2,498 1,906 1,314 1 IHC M LPG TractOI" 500 443 386 312 238 164 1 Maintainer -112 -Caterplllar 7,000 6,204 5,409 4,372 3,335 2,299 ----------· -----···------TOTAL TRACTORS $208,000 $184,356 $160,714 $129,410 $ 99,110 $ 68,308 - 1 --;:~ ... ,.
~ .c:.a.u..t. t!W.Cf fRW£ fB.l.C£ f8.l.Cf ffUCE .uLUE ®L,_1 .0CL..J. .0CL..J. ~ .QCL_J. D.m:..-1. NO. lTEMS DESCB!PIIQN 12M 12.fiI l2f1D llD2 122.Q 1221. HAY AND GRAIN fOUIPMENT; Holland Hay Baler 1320 -Wire Tie -PTO s 6,000 s 5,'18 s 4,636 s 3,747 s 2,859 s 1.,970 2 ·Heston 14600 Hay Balers -PTO Wire 10,000 8,.863 7,727 6,246 4,765 3,284 Heston 14800 -41x4'x8' Big Square Baler ~nd Ac<:Ull!Ulator 38,000 33,680 29,361 23,734 t8, 107 12,480 2 Heston -Self Propelled Swathers 20,000 17,726 15,453 12,492 9,530 6,568 3 Hay Trailers -Steel Flat Bed 900 798 695 562 429 296 Demeo Grain Traller -Tandem Axle -Hyd. Dulllf> 2,500 2,216 1,932 1,561 1,191 821 Heston 60-A Hey Stacker 7,500 6,647 5,795 4,684 3,574 2,463 2 Farm Hand Bale Loaders 1,000 886 773 625 476 328 Holland Stack Retriever 5,000 4,432 3,863 3,123 2,382 1,642 t Holland Stack Liner Trallers 11037 7,000 6,204 5,409 4,312 3,335 2,300 Hay Fluffler 300 266 232 187 143 98 Allen Mtg. Hay Rake. 10,000 8,863 7,727 6,246 4,765 3,284 ----·--TOTAL HAY Am GRAIN EQUIPMENT $108,200 S 95.899 S 83,603 S 67,579 S 5t ,556 S 35,534 -2-
BOOK eBJ.CE eIUCE eBJ.CE fBJ..CE .es.u::E fBJ.CE ml.IE DQIJ .om........t DQIJ DQIJ .®L...1 DCL...1 NO. IIEHS PESCRIPTIQN J2M l2a1 .1.2Af1 1ia.2 122Q 1221 TITLED VEHICLES; 1972 Chevrolet Truck -C50 W/Butler Feed Bed, CCS532V101987 s 3,000 s 1,500 0 0 0 0 1 1979 Chevrolet Red Dump Truck -C60 6,000 3,000 0 0 0 0 1 1982 1-Ton GMC Pickup• 4x4 (6 • 2C O Iese I), I GTHK34J5CS526750 5,000 2,500 0 0 0 0 1982 3/4 Ton Chevrolet Pickup -4x4 (6.2C Dlesel, IGCG1<24J6Cf361421 4,500 2,250 0 0 0 0 1982 3/4 Ton Ford Pickup, IFTHF25Z70CA31422 3,000 1,,00 0 0 0 0 1979 Chevrolet Pickup, CCD149S207939 2.000 1,000 0 0 0 0 1975 Chevrolet El Camino, ID80U5R433720 1,,00 1,0 0 0 0 0 1976 Dodge Pickup 700 350 0 0 0 0 1 1967 Chevrolet 500 250 0 0 0 0 -----------·---TIJTAL TITLED VEHICLES S 26,200 S 13,100 0 0 p 0 -3 -
flQQK fBJ.CE fBJ.CE fBJ.CE fBJ.CE fBJ.CE fR.lCE. Y.ruJlE ~ ~ DQL....l ~ ~ imJ. W, ITEMS QESCRIPTIQN 12M lllll. 12M .12.a.2 lliQ ml EABM EQUIPMEN'ft Demeo Gooseneck Grain Trller -20 ft. s 2,000 $ 1,773 $ 1.,545 $ 1.,249 s 953 $ . 656 2 Demeo Grain Trailers -Hopper Bottom 20 ft. 5,000 4,432 3,863 3,125 2,382 . 1.642 1977 a.t.F. Combine n,o -Dlesel 20 ft. Header -4 row corn header 10,000 8,863 7,727 6,246 4,765 3,284 1 Module Traller -Husky 5,000 4,432 3,863 3,125 2,382 1,642 80 Cotton Pa II etts 3,000 2,659 2,318 1,874 1,429 985 1 Handover Stock Traller 24 ft. -Gooseneck s 1,500 $ 1,329 $ . 1,159 $ 937 $ 715 $ 493 1 All led 580 ~rontend loader 1 Danuser Post Hole Digger 1,000 886 773 625 476 328 1000 Gal. W1ter Tank -Pump-Motor -Fiber Glass Tandem Axle Traller 2,000 1,773 1,545 1,249 953 656 V Type Ditcher 100 89 77 62 48 ,, 6 ft. Blade 150 133 116 94 71 49 Disc Ditch FIi ler' 100 89 77 62 48 33 Pipe Traller -Tandem Axle 200 177 155 125 95 66 12 ft. Towner -Off Set Disc 1,600 1,418 1,256 999 762 525 1 Hamby Chlsel Plow 450 399 348 281 214 148 ... '"·-~ ~ ....
( ( ( ( r ... ,..,. ( f BOOK ffUcE ffUcE ffUcE ~ ~ ~ lALt!E D.CLJ D.CLJ DCL..J. l!O. lm§ OEsCR1PT10tt ~ l2aZ 12.IU! 12B2 .l.221 f Olrver Mole Board -Two Bottom 200 f77 ,,, ,2, 95 f ' 6 Row Tye Grain Drl I I 1,750 1,5.51 1.,352 1,093 834 57 Eversman Model 289 ~and leveller f,000 886 773 625 476 32 .5 Row Hamby L lster w/Harkers 750 665 579 468 357 24t •. 437 334 7 Row Bar w/Shanks 700 620 .541 23c 8 Row Hamby Bar w/Nobel lncorporators 400 355 309 250 19f 131 Chlsel Plow -Double Bar 17.5 155 135 f09 83 58 8 Row Bigham Bros. Bar w/Shanks ,,ooo 886 773 625 476 328 2f ft. Case Tendetn Disc w/lncorporator 1,5.50 1,374 · f, 198 968 739 509 Ofteh Ff lier 200 177 ,,, f25 95 66 7 Shank Case Chlsef Plow 1513 600 .532 464 375 286 197 2 Row Shredder 250 222 f93 156 119 82 ' 4 Row Shredder H.F. 700 620 .541 437 334 230 f .500 Gal Fuel Tank w/Afr Compressor, Grease Gun on Tandetn Axle, Al I Steel Gooseneck Traller 3,000 2,659 2,318 1.,874 1,429 985 8 ft. Rototfller soo 443 386 312 238 164 ' I f4 ft. Case Off Set Disc 600 532 464 375 286 197 -5 -
WOK eat.CE eat.CE eat.CE fBJ.CE eat.CE eat.CE j YaLUE D.CL...1 D.CL..J. ~ D.CL..J. D.CL..J. ~ HQ. llIMS DESCRIPTION ~ .Wl2. J.W1 1942 ~ 1W. • 1 4 Row Shredder P·& W 300 266 232 187 143 99 I 150 133 9 Row Sendflghter 116 94 71 '19 f 1 18·Sendflghter ' 4,o 399 348 281 214 · 148 1 3 Section Splck 'Tooth Hitrrow 250 222 193 156 119 82 •. 6 Row Tye Bed Planters -Fold Up Bers 2,400 2,127 1,e,4 1,499 1,144 788 1 13 Shenk Hamby Chlsel Plow t ,250 1,106 966 781 ,96 · 410 1 4 Row Stalk Cutter 100 89 11 62 48 33 7 Row Bar w/Shenks -Bigham Bros. 1,200 1,064 927 749 572 394 1 6 Row Lllllngston Cultivator 850 753 657 531 40, 279 1 Shop Mede Hag Loader 8,000 7,091 6,181 4.997 3,812 2,627 Weldlng end Shoo'Equlpment 4,000 3,545 3,091 2,498 1,906 1,314 ---TOTAL FARM EQUIPMENT S 64,425 S 21,273 S 18.,544 S 14,989 S 11,436 s 7.,881 ~IIL!L~lotf ., TOTAL TRACTORS $208,000 $184,357 $160,714 $129,912 S 99,110 S 68,308 -TOTAL HAY AND GRAIN EQUIPMENT 108,200 95,901 83,602 67,579 ",,'6 3','34 TOTAL TITLED VEHICLES 26,200 13,100 0 0 0 0 TOTAL FARM EQUIPMENT 64,425 57,I02 49,779 40,238 30,698 21,1'8 -------------TOTAL EQUIPMENT 1406,825 350,460 294,095 237.,729 181.,364 125,000 -ti -
I. l . In the event Operator sells to City the above machinery end equipment on a date or time other than set forth ~n this exhibit, then fn such event the consideration to be paid Operator shall be prorated to the first day of the mnth In which the sale Is jto take place. ' •. - 7 -( .. .. .__
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SIGNATURE ANO NO-LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
§
§
§
WE, the undersigned, officials of the City of Lubbock,
Texas (the "Issuer"), do hereby certify as follows:
( 1) This Certificate is executed and delivered with
reference to the following described obligations: "CITY OF
LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1987·, dated
Apri 1 15, 1987 ( the "Bond Date"), in the aggregate principal
amount of $5,960,000 (the "Bonds").
(2) The Bonds have been duly and officially executed
by the undersigned with their manual or facsimile signature in
the same manner appearing hereon, and the undersigned hereby
adopt and ratify their respective signatures in the manner
appearing on each of the Bonds whether in manual or facsimile
form, as the case may be, as their true, genuine and official
signatures.
I I (3) On the Bond Date and on the date hereo, we were
and are the duly qualified and acting officials of he Issuer
indicated below.
(4) The legally adopted proper and official corporate
seal of the Issuer is impressed, imprinted or litho raphed on
all of the Bonds and impressed on this Certificate. ·
(5) No litigation of any nature is now pen~ing before
any federal or state court, or administrative body, ! or to our
knowledge threatened, seeking to restrain or er• join the
issuance or deli very o.f the Bonds or questioning th issuance
or sale of the Bonds, the authority or action of the governing
body of the Issuer relating to the issuance or sa e of the
Bonds, the levy and collection of taxes to pay the principal
and interest, or in any manner questioning the proceedings and
authority under which the same is made or affecting the
validity of the Bonds thereunder; and that neither the
corporate existence or boundaries of the Issuer nor the right
to hold off ice of any member of the governing body of the
Issuer or any other elected or appointed official of the Issuer
is being contested or otherwise questioned.
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(6) No petition or other request has been filed with
or presented to any official of the Issuer requesting that any
proceedings authorizing the issuance of the Bonds adopted by
the governing body of the Issuer be submitted to a referendum
or other election; no authority or proceeding for the issuance,
sale or delivery of the Bonds, passed and adopted by the
governing body of the Issuer, has been amended, repealed,
revoked, rescinded or otherwise modified since the date of
passage thereof, and all such proceedings and authority
relating to the issuance and sale of the Bonds remain in full
force and effect as of the date of this Certificate.
EXECUTED AND DELIVERED this
(Issuer•s Seal)
SIGNATURE
May 28, 1987
OFFICIAL TITLE
Mayor, City of Lubbock, Texas
City Secretary, City of
Lubbock, Texas
The signatures of the persons subscribed above are.
hereby certified to be true and genuine .
(Bank Seal)
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. Texas Commerce Bank, NA, Lubbock
(Bank)
By4:w~
TITI..E: Trust Operations Officer
No Text
(W:J
THE ATTORNEY GENERAL
OF TEXAS
JIM l"IATTOX
ATTORNEY GENERAL
May 12, 1987
THIS IS TO CERTIFY that the City of Lubbock, Texas
(the Issuer), has submitted to me City of Lubbock, Texas,
General Obligation Bonds, Series 1987 ( the Bond), in the
denomination and principal amount of $5,960,000 for ap-
proval. The Bond is dated April 15, 1987, numbered T-1,
and was authorized by Ordinance No. 9067 of the Issuer
passed on April 24, 1987.
I have examined the law and such certified proceedings and oth-
er papers as I deem necessary to render this opinion.
As to questions of fact material to my opinion, I have relied
upon representations of the Issuer contained in the certified pro-
ceedings and other certifications of public officials furnished to
me without undertaking to verify the same by independent investiga-
tion.
I express no opinion relating to any Official Statement or oth-
er offering material relating to the Bond.
Based on my examination, I am of the opinion, as of the date
hereof and under existing law, as follows:
(1) The Bond has been issued in accordance with law and is a valid
and binding obligation of the Issuer,
(2) The Bond is payable from the proceeds of an ad valorem tax lev-
ied, within the limit prescribed by law, upon all taxable prop-
erty in the Issuer.
THEREFORE, the Bond is approved.
No. 21756 -
Book No. 81:::..
jh ;:· _:
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312/463•2100 SUPREME COURT DUILDINO AUSTIX• TEXAS '78711•2348
OFFICE OF COMPTROLLER I
OF THE STATE OF TEXAS I
I, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby
certify that the attachment is a true and correct copy of the opinion of the Attorney
City of Lubbockt Texa~t General Obligation Bondt
General approving the-------------------------
Series 1987
T-1
numbered --------------------of the denomination of
$ _5_,_9_60_,_0_0_0 ____ dated _A_p_r_i_l_lS ___ , 19~, as authorized by issuer,
Various interest ______ percent, under and by authority of which said bonds were registered
13th May 87 in this off ice, on the ____ day of ------19 _ , as the same appears of
405 88 record on page ____ Bond Register of the Comptroller's Office, Vol. _____ _
Register Number 50025
13th Given under my hand and seal of office, at Austin, Texas, the ________ _
day of
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May 87 .. ,19-.
806 BULLOCK
Comptroller of Public Accounts
State of Texas
CERTIFICATE AND RECEIPT FOR PAYMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
That, with respect to the following described obli-
gations: "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS,
SERIES 1987", dated April 15, 1987, in the aggregate principal
amount of $5,960,000 (the "Bonds"), the undersigned officer of
the City of Lubbock, Texas (the "IssuerN), DOES HEREBY CERTIFY
that on the date hereof, the Bonds were delivered to the
purchasers, namely:
against payment of the agreed purchase price being made
therefor, as follows:
PRINCIPAL AMOUNT--------------$ 5,960,000.00
ACCRUED INTEREST --------------58,402.36
PREMIUM (DISCOUNT)------------------
TOTAL AGREED PURCHASE PRICE----$ 6,018,402.36
The undersigned further acknowledges that the Issuer
this day has received the agreed purchase price for the Bonds
and the Bonds were duly authorized by the Issuer to be
delivered to the purchasers thereof.
EXECUTED AND DELIVERED, this May 28, 1987
2ffi4 ~ fty Treasurer
City of Lubbock, Texas
The foregoing signature of the foregoing designated
official of the issuer is hereby certified as genuine.
Texas Commerce Bank NA,Lubbock
(Bank)
(Bank Seal)
ZOZOD
CERTIFICATE AS TO OFFICIAL STATEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
§
§
§
§
§
RE: $5,960,000 "City of Lubbock, Texas, General Obligation
Bonds, Series 1987", dated April 15, 1987
WE, THE UNDERSIGNED, officials of the City of Lubbock,
Texas, acting in our official capacities, DO HEREBY CERTIFY
that to the best of our knowledge and belief:
(a) The descriptions and statements of
or pertaining to the City contained in its·
Official Statement, and any addenda,
supplement or amendment with respect to such
descriptions or statements thereto, prepared
in connection with the issuance and sale of
the above referenced Bonds, on the date of
such Official Statement, on the date of sale
of said Bonds and the acceptance of the best
bid therefor, and on the date of the delivery,
were and are true and correct in all material
respects;
(b) Insofar as the City and its
affairs, including its financial affairs, are
concerned, such Official Statement did not and
does not contain an untrue statement of a
material fact or omit to state a material fact
required to be stated therein or necessary to
make the statements therein, in the light of
the circumstances under which they were made,
not misleading;
(c) Insofar as the descriptions and
statements, including financial data, of or
pertaining to entities, other than the City,
and their activities contained in such
Official Statement are concerned, such
statements and data have been obtained from
sources which the City believes to be reliable
and that the City has no reason to believe
that they are untrue in any material respect;
and
(d) There has been no material adverse
change in the financial condition of the City
since the date of the last audited financial
statements of the City.
TO CERTIFY WHICH, witness our hands and the seal of the City, this , -May 28, 1987
CITY OF LUBBOCK, TEXAS
~I (~M~~ ayor
~~~
'(City Seal)
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.... , ~ef,olution #2554 March 26, 1987
Item # 21-B
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 as follows:
1. That on the 26th day of March, 1987, the City
Council of the City of Lubbock, Texas, convened in regular
session at its regular meeting place in the City Hall of said
City; the duly constituted members of the Council being as
follows:
B. c. McMINN MAYOR
T. J. PATTERSON
MAGGIE TREJO
GARY D. PHILLIPS
JOAN BAKER
)
)
)
)
)
)
)
MEMBERS OF COUNCIL
GEORGE W. CARPENTER
ROBERT A. NASH
all of said persons were present at said meeting, except the
following: __ ~----,,--,---~----,-,,.----,,--business considered
Among other
at said meeting, the attached resolution
entitled:
A RESOLUTION approving and authorizing the execu-
tion of a "Paying Agent/Registrar Agreement"
in relation to the "City of Lubbock, Texas,
General Obligation Bonds, Series 1987" and
resolving other matters incident and related
thereto; and declaring an emergency.
was introduced and submitted to the Council for passage and
adoption. After presentation and due consideration of the
resolution, and upon a motion made by Joan Baker and
seconded by Maggie Trejo the resolution was-duly passed
and adopted as an emergency measure by the Council. to be
effective immediately by the following vote:
7 voted "For" ___ voted "Agains~" abstained ---
all as shown in the official Minutes of the Council for the
meeting held on the aforesaid date.
F r
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2. That the attached resolution is a true and
correct copy of the original on file in the official records of
the City; the duly qualified and acting members of the City
Council of the City on the date of the aforesaid meeting are
those perons shown· above and, according to the records of my
office, advance notice of the time, place and purpose of the
meeting was given to each member of the Council; and that said
meeting, including the subject of the entitled resolution, was
posted and given in advance thereof 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
officially and affixed the seal of said City, this the 26th day
of March, 1987.
(City Seal)
19070
~ C c~.-C
City of Lubbock, Texas
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Resolution ~2554
March 26, 1987
Item #21-B
A RESOLUTION approving and authorizing the execu-
tion of a "Paying Agent/Registrar Agreement"
in relation to the "City of Lubbock, Texas,
General Obligation Bonds, Series 1987" and
resolving other matters incident and related
thereto; and declaring an emergency.
WHEREAS, on this date the City Council of the City of
Lubbock, Texas, authorized the issuance of "City of Lubbock,
Texas, General Obligation Bonds, Series 1987", in the principal
amount of $5,960,000 (the "Securities"); such securities to be
issued in fully registered form only; and
WHEREAS, in relation to
transfer and exchange of said
Agent/Registrar selected therefor
National Association, Lubbock, Texas;
payment, registration,
Securities, the Paying
is -Texas Commerce Bank,
and
WHEREAS, a "Paying Agent/Registrar Agreement" by and
between the City and said Bank has been prepared and submitted
to the City Council for approval and execution, such Agreement,
setting forth the duties and responsibilities of the Paying
Agent/Registrar for such Securities, being attached hereto as
Exhibit A and incorporated herein by reference as a part of
this Resolution for all purposes; and
WHEREAS, it is hereby determined that the necessity
for the immediate preservation of the public peace; property,
health or safety of the citizens of the City of Lubbock and to
serve the best interest of the City of Lubbock by providing the
improvements and extensions to be financed by the issuance of
general obligation bonds at the earliest possible date
constitutes and creates an emergency and an urgent public
necessity requiring the suspension of any rules providing for
ordinances or resolutions to be r~ad more than one time or at
more than one meeting of the City Council and that this
Resolution be declared an emergency measure to become effective
immediately from and after its passage; and
WHEREAS, the City Council hereby finds and determines
that such "Paying Agent/Registrar Agreement" should be approved
and execution of the same for and on behalf of the City
authorized; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1: That the "Paying Agent/Registrar
Agreement" by and between the City and Texas Commerce Bank,
National Association, Lubbock, Texas relating to the above
described Securities, attached hereto as Exhibit A, is hereby
approved as to -form and content, and the Mayor and City
Secretary of the City are hereby authorized and directed to
execute such Agreement in substantially the same form and
content herein approved for and on behalf of the City and as
the act and deed o~ this City Council.
SECTION 2: That the fact that it is necessary for
the immediate preservation of the public peace, property,
health or safety of the citizens of the City of Lubbock and in
the best interest of the City of Lubbock to provide funds for
the improvements and extensions to be financed by the issuance
of general obligation bonds at the earliest possible date
constitutes and creates an emergency and an urgent public
necessity requiring the suspension of any .. rules providing for
ordinances and resolutions to be read more than one time or at
more than one meeting of the City Council, and such rules and
provisions are accordingly suspended, and this Resolution is
declared to be an emergency measure, and shall take effect and
be in full force immediately from and after its passage on the
date shown below.
PASSED AND APPROVED, this March 26, 1987.
CITY OF LUBBOCK, TEXAS
(CITY SEAL)
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PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of March 26, 1987 ( the
"Agreement•), by and between the CITY OF LUBBOCK, TEXAS (the
"Issuer"), and Texas Commerce Bank, National Association,
Lubbock, Texas, a banking association duly organized and
existing under the laws of the United States of America, ( the
"Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for
the issuance of its "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION
BONDS, SERIES 1987" (the "Securities") in the aggregate
principal amount of $5,960,000, such Securities to be issued in
fully registered form only as to the payment of principal and
interest thereon; and
WHEREAS, the Securities are scheduled to be delivered to
the initial purchasers thereof on or about _______ ; and
WHEREAS, the Issuer has selected the Bank to serve as
Paying Agent/Registrar in connection with the payment of the
principal of, premium, if any, and interest on said Securities
and with respect to the registration, transfer, and exchange
thereof by the registered owners thereof; and
WHEREAS, the Bank has agreed to serve in such capacities
for and on behalf of the Issuer and has full power and
authority to perform and serve as Paying Agent/Registrar for
the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying
Agent with respect to the Securities, and, as such Paying Agent
for the Securities, the Bank shall be responsible for paying on
behalf of the Issuer the principal, premium (if any), and
interest on the Securities as the same become due and payable
to the registered owners thereof; all in accordance with this
Agreement and the "Resolution" (hereinafter defined).
The Issuer hereby appoints the Bank as Registrar with
respect to the Securities and, as such Registrar for the
Securities, the Bank shall keep and maintain for and on behalf
of the Issuer books and records as to the ownership of said
Securities and with respect to the transfer and exchange
thereof as provided herein and in the "Resolution."
The Bank hereby accepts its appointment and agrees to
serve as the Paying Agent and Registrar for the Securities.
Section 1~02. Compensation.
As compensation for the Bank• s services as Paying
Agent/Registrar, the Issuer hereby agrees to pay the Bank the
fees and amounts set forth in Annex A attached hereto for the
first year of this Agreement and therearter the fees and
amounts set forth in the Bank• s current fee schedule then in
effect for services as Paying Agent/Registrar for
municipalities, which shall be supplied to the Issuer on or
before ninety (90) days prior to the close of the Fiscal Year
of the Issuer, and which shall be effective upon the first day
of the following Fiscal Year.
In addition, the Issuer agrees to reimburse the Bank upon
its request for all reasonable expenses, disbursements, and
advances incurred or made by the Bank in accordance with any of
the provisions hereof (including the reasonable compensation
and the expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For a 11 purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:
I 'J O 1 0
"Acceleration Date" on any Security means the
date on and after which the principal or any or all
installments of interest, or both, are due and payable on
any Security which has become accelerated pursuant to the
terms of the Security.
"Bank Office" means the principal corporate
trust off ice of the Bank as indicated on page 12 hereof.
The Bank will notify the Issuer in writing of any change
in the location of the Bank Office.
"Resolution" means the resolution, order, or
ordinance of the governing body of the Issuer pursuant to
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which the Securities are issued, certified by the City
Secretary or any other officer of the Issuer and delivered
to the Bank.
"Fiscal Year" means the fiscal year of the
Issuer, ending September 30.
"Holder" and "Security Holder.. each means the
Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and .. Issuer Order" means a
written request or order signed in the name of the Issuer
by the Mayor, the City Secretary, the City Manager, or the
financial officer, any one or more of said officials, and
delivered to the Bank.
"Legal Holiday" means a day on which the Bank is
required or authorized to be closed.
"Person.. means any individual, corporation,
partnership, joint venture, association, joint stock
company, trust, unincorporated organization, or government
or any agency or political subdivision of a government.
"Predecessor Securities" of any particular
Security means every previous Security evidencing all or a
portion of the same obligation as that evidenced by such
particular Security ( and, for the purposes of this
definition, any Security registered and delivered under
Section 4.06 hereof in lieu · of a mutilated, lost,
destroyed, or stolen Security shall be deemed to evidence
the same obligation as the mutilated, lost, destroyed, or
stolen Security).
"Redemption Date" when used with respect to any
Security to be redeemed means the date fixed for such
redemption pursuant to the terms of the Resolution.
"Responsible Officer" when used with respect to
the Bank means the Chairman or Vice-Chairman of the Board
of Directors, the Chairman or Vice-Chairman of the
Executive Committee of the Board of Directors, the
President, any Vice President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant
Treasurer, the Cashier, any Assistant Cashier, any Trust
Officer or Assistant Trust Officer, or any other officer
of the Bank customarily performing functions similar to
those performed by any of the above designated .off ice rs
and also means, with respect to a particular corporate
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trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and
familiarity with the particular subject.
"Security Register" means a register maintained
by the Bank on behalf of the Issuer providing for the
registration and transfers of Securities.
"Stated Maturity" means the date specified in
the Resolution the principal of a Security is scheduled to
be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," "Issuer," and "Securities (Security)"
have the meanings assigned to them in the recital paragraphs of
this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in
the performance of the duties and functions of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of Paying Agent.
As Paying Agent, the Bank shall, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
principal of each Security at its Stated Maturity, Redemption
Date, or Acceleration Date, to the Holder upon surrender of the
Security to the Bank at the Bank Office.
As Paying Agent, the Bank sha 11, provided adequate
collected funds have been provided to it for such purpose by or
on behalf of the Issuer, pay on behalf of the Issuer the
interest on each Security when due, by computing the amount of
interest to be paid each Holder and preparing and sending
checks or drafts by United States Mail, first class postage
prepaid, on each payment date, to the Holders of the Securities
(or their Predecessor Securities) on the Record Date, to the
address appearing on the Security Register, or by such other
method, acceptable to the Bank, requested in writing by the
Holder at the Holder's risk and expense.
Section 3.02. Payment Dates.
The Issuer hereby instructs the Bank to pay the principal
of and interest on the Securities at the dates specified in the
Resolution.
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ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register -Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of
the Issuer at the Bank Office books and records (herein
sometimes referred to as the "Security Register") for recording
the names and addresses of the Holders of the Securities, the
transfer, exchange, and replacement of the Securities and the
payment of the principal of and interest on the Securities to
the Holders and containing such other information as may be
reasonably required by the Issuer and subject to such
reasonable regulations as the Issuer and Bank may prescribe.
All transfers, exchanges, and replacement of Securities shall
be noted .in the Security Register.
Every Security surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrument of
transfer, the signature on which has been guaranteed by an
officer of a federal or state bank or a member of the National
Association of Securities Dealers, in form satisfactory to the
Bank, duly executed by the Holder thereof or his or her agent
duly authorized in writing.
The Bank may request any supporting documentation it feels
necessary to effect a re-registration, transfer, or exchange of
the Securities.
To the extent possible and under reasonable circumstances,
the Bank agrees that, in relation to an exchange or transfer of
Securities, the exchange or transfer by the Holders thereof
will be completed and new Securities delivered to the Holder or
the assignee of the Holder in not more than three (3) business
days after the receipt of the Securities to be cancelled in an
exchange or transfer and the written instrument of transfer or
request for exchange duly executed by the Holder, or his duly
authorized agent, in form and manner satisfactory to the Paying
Agent/Registrar.
Section 4.02. Certificates.
The Issuer shall provide an adequate inventory of printed
Securities to facilitate transfers, replacements, and exchanges
thereof. The Bank covenants that the inventory of printed
Securities will be kept in safekeeping pending their use and
reasonable care will be exercised by the Bank in maintaining
such Securities in safekeeping, which shall be not less than
the care maintained by the Bank for debt securities of other
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governments or corporations for which it serves as registrar,
or that is maintained for its own securities.
Section 4.03. Form of Security Register.
The Bank, as Registrar, will maintain the Security
Register relating to the registration, payment, transfer, and
exchange of the Securities in accordance with the Bank's
general practices and procedures in effect from time to time.
The Bank shall not be obligated to maintain such Security
Register in any form other than those which the Bank has
currently available and currently utilizes at the time.
The Security Register may be maintained in written form or
in any other form capable of being converted into written form
within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by
the Issuer, upon payment of the required fee, a copy of the
information contained in the Security Register. The Issuer may
also inspect the information contained in the Security Register
at any time the Bank is customarily open for business, provided
that reasonable time is allowed the Bank to provide an
up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the
Security Register to any person other than to, or at the
written request of, an authorized officer or employee of the
Issuer, except upon receipt of a subpoena or court order. Upon
receipt of a subpoena or court order the Bank will notify the
Issuer so that the Issuer may contest the subpoena or court
order.
Section 4.05. Return of Cancelled Certificates.
The Bank will, at such reasonable intervals as it
determines, surrender to the Issuer Securities in lieu of which
or in exchange for which other Securities have been issued, or
which have been paid.
Section 4 • O 6 . _M;.;;;;u;..;;t;..;;i;..;;l_a-t;;_e;;;..d;;;;..o.., ---=D.;;ae""s...;;;t..aar...,;;o .... Y"""'e;..;d;;_,,...__L=o=s...;;;t....,, _ ___;;;;o..aar_----"'S;...;;t;..;;o;..;;l-e=n
Securities.
The Issuer hereby instructs the Bank, subject to the
prov1s1ons of Section 32 of the Resolution, to deliver and
issue Securities in exchange for or in lieu of mutilated,
destroyed, lost, or stolen Securities as long as the same does
not result in an overissuance.
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The Bank will issue and deliver a new Security in exchange
for a mutilated Security surrendered to it. The Bank will
issue a new Security in lieu of a Security for which it has
received written representation from the Holder that the
Security is destroyed, lost, or stolen, without the surrender
or production of the original Security. The Bank will pay on
behalf of the Issuer the principal and premium, if any, of a
Security for which it receives written representation such
Security is destroyed, lost, or stolen following the Stated
Maturity or Redemption of the Security, without the surrender
or production of the Security.
The Bank will not issue a replacement Security or pay such
replacement Security unless there is delivered to the Bank such
security or indemnity as it may require (which may be by the
Bank's blanket bond} to save both the Bank and the Issuer
harmless.
On satisfaction of the Bank and the Issuer, the
certificate number on the Security Register will be cancelled
with a notation that it has been mutilated, destroyed, lost, or
stolen and a new Security will be issued of the same series and
of like tenor and principal amount bearing a number (according
to the Security Register} not contemporaneously outstanding.
The Bank may charge the Holder the Bank's
expenses in connection with issuing a new Security
or exchange for a mutilated, destroyed, lost,
Security.
fees and
in lieu of
or stolen
The Issuer hereby accepts the Bank's current blanket bond
for lost, stolen, or destroyed Securities and any future
substitute blanket bond for lost, stolen, or destroyed
Securities that the Bank may arrange, and agrees that the
coverage under any such blanket bond is acceptable to it and
meets the Issuer's requirements as to security or indemnity.
The Bank need not notify the Issuer of any changes in the
security or the company giving such bond or the terms of any
such bond. The blanket bond then utilized for the purpose of
lost, stolen, or destroyed Securities by the Bank is available
for inspection by the Issuer on request.
Section 4.07. Transaction Information to Issuer.
The Bank wi 11, within a reasonable time after receipt of
written request from the Issuer, furnish the Issuer information
as to the Securities it has paid pursuant to Section 3.01
hereof, Securities it has delivered upon the transfer or
exchange of any Securities pursuant to Section 4.01 hereof, and
Securities it has delivered in exchange for or in lieu of
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mutilated, destroyed, lost, or stolen Securities pursuant 'to
Section 4.06 hereof.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of Bank.
The Bank undertakes to perform the duties set forth herein
and agrees to use reasonable care in the performance thereof.
Section 5.02. Reliance on Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of
the statements and correctness of the op1n1ons expressed
therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
(c) No prov1s1ons of this Agreement shall require the
Bank to expend or risk its own funds or otherwise incur any
financial liability for performance of any of its duties
hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to
it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate,
statement, instrument, op1n1on, report, notice, request,
direction, consent, order, bond, note, security, or other paper
or document believed by it to be genuine and to have been
signed or presented by the proper party or parties. Without
limiting the generality of the foregoing statement, the Bank
need not examine the ownership of any Securities, but is
protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer
which appears on its face to be signed by the Holder or an
agent of the Holder. The Bank sha 11 not be bound to make any
investigation into the facts or matters stated in a resolution,
certificate, statement, instrument, op1n1on, report, notice,
request, direction, consent, order, bond, note, security, or
other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the· written
advice of such counsel or any opinion of counsel shall be full
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and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good
faith and in reliance thereon.
(f) The Bank may exercise any of the powers hereunder and
perform any duties hereunder either directly or by or through
agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer.
The recitals contained herein with respect to the Issuer
and in the Securities shall be taken as the statements of the
Issuer, and the Bank assumes no responsiblity for their
correctness.
The Bank shall in no event be liable to the Issuer, any
Holder or Holders of any Security, or any other Person for any
amount due on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise
deal with the Issuer with the same rights it would have if it
were not the Paying Agent/Registrar, or any other agent.
Section 5.05. Moneys Held by Bank.
Money held by the Bank hereunder need not be segregated
from any other funds provided appropriate trust accounts are
maintained in the name and for the benefit of the Issuer.
The Bank shall be under no liability for interest on any
money received by it hereunder.
Any money deposited with the Bank for the payment of the
principal, premium ( if any), or interest on any Security and
remaining unclaimed for four years after final maturity of the
Security has become due and payable will be paid by the Bank to
the Issuer, and the Holder of such Security shall thereafter
look only to the Issuer for payment thereof, and all liability
of the Bank with respect to such moneys shall thereupon cease.
Section 5.06. Indemnification.
The Issuer agrees to indemnify the Bank for, and hold it
harmless against, any loss, liability, or expense incurred
without negligence or bad faith on its part, arising out of or
in connection with its acceptance or administration of its
duties hereunder, including the cost and expense against any
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claim or liability in connection with the exercise or
performance of any of its powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek
adjudication of any adverse claim, demand, or controversy over
its person as well as funds on deposit, in either a federal or
State District Court located in the state and county where
either the Bank Office is or the administrative offices of the
Issuer are located, and agree that service of process by
certified or registered mai 1, return receipt requested, to the
address referred to in Section 6. 03 of this Agreement sha 11
constitute adequate service. The Issuer and the Bank further
agree that the Bank has the right to file a Bill of
Interpleader in any court of competent jurisdiction to
determine the rights of any Person claiming any interest herein.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in
writing signed by both of the parties hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party without
the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice,
consent, waiver, or other document provided or permitted hereby
to be given or furnished to the Issuer or the Bank shall be
mailed or delivered to the Issuer or the Bank, respectively, at
the addresses shown on pages 12 and 13 hereof.
Section 6.04. Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.
Section 6.05. Successors and Assigns.
All covenants a11d agreements herein by the Issuer shall
bind its successors and assigns, whether so expressed or-not.
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Section 6.06. Severability.
In case any provision herein shall
unenforceable, the validity, legality,
the remaining provisions shall not in
impaired thereby.
be invalid, illegal, or
and enforceability of
any way be affected or
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any
Person, other than the parties hereto and their successors
hereunder, any benefit or any legal or equitable right, remedy,
or claim hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Resolution constitute the entire
agreement• between the parties hereto relative to the Bank
acting. as Paying Agent/Registrar and if any conflict exists
between this Agreement and the Resolution, the Resolution shall
govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all
of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final
payment of the principal of and interest on the Securities to
the Holders thereof or (ii) may be earlier terminated by either
party upon sixty (60) days• written notice; provided, however,
an early termination of this Agreement by either party shall
not be effective until (a) a successor Paying Agent/Registrar
has been appointed by the Issuer and such appointment accepted
and (b) notice given to the Holders of the Securities of the
appointment of a successor Paying Agent/Registrar.
Furthermore, the Bank and Issuer mutually agree that the
effective date of an early termination of this Agreement shall
not occur at any time which would disrupt, delay, or otherwise
adversely affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank
agrees to promptly transfer and deliver the Security Register
(or a copy thereof), together with other pertinent books and
records relating to the Securities, to the successor Paying
Agent/Registrar designated and appointed by the Issuer.
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The provisions of Section 1.02 and of Article Five hereof
shall survive and remain in full force and effect following the
termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
(CITY SEAL)
Attest:
City Secretary
[SEAL]
Attest:
Title:
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CITY OF LUBBOCK, TEXAS
BY --------------Mayor
Address: P.O. Box 2000
Lubbock, Texas 79457
TEXAS COMMERCE BANK, NATIONAL
ASSOCIATION, LUBBOCK, TEXAS
BY -------~-,,---------Title:
Address: P.O. Box 841
Lubbock, Texas 79408
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