Loading...
1976 08 26 CC Minutes6199 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN August 26, 1976 The City Council of the City of Baytown, Texas, met in regular session, Thursday, August 26, 1976, at 6:30 P.M. in the Council Chamber of the Baytown City Hall. The following members were in attendance: Jody Lander Jack Kimmons Ted Kloesel Mary E. Wilbanks Emmett Hutto Allen Cannon Tom Gentry Fritz Lanham Neel Richardson Eileen P. Hall Dan Savage City Manager Councilman Councilman Councilwoman Councilman Councilman Mayor City Manager City Attorney City Clerk Assistant City Manager Mayor Gentry called the meeting to order and the invocation was offered by the Reverend A. W. Weatherly, Pastor of Garth Road Baptist Church. Bid - Sale of $1,250,000 Waterworks and Sanitary Sewer System Bonds, Series 19 76 Tom Masterson with the firm of Underwood, Neuhaus 6 C6., Incorpo- rated, Fiscal Advisors to the City of Baytown, reviewed some of the conditions of sale. The bidders may either submit a good faith check for 2% of the par value of the bonds to the bid upon or the bidder may have his name included on the letter attached to one of the two good faith checks supplied by Austin banks. Bids must be for all bonds being offered and at a price of not less than par plus accrued interest. The highest coupon rate bid may not exceed the lowest coupon rate bid by more than 1 1/2 %. The bids were opened and pub- licly read by Mr. Masterson as follows: Bidder s): •Horn lower Weeks Maturity: Coupon Rate: 1978 to 1981 7.00% 1982 to 19xx 5.00% 1983 to 19xx 4.70% 1984 to 19xx 4.80% 1985 to 19xx 4.90% 1986 to 19xx 5.00% 1987 to 19xx 5. 1988 to 19xx 5.30$ 30% 1989 to 19xx 5.40% 1990 to 1991 5.50% Total Interest Cost $654,606.65 Less Cash Premium None Net Interest Cost 654,606.65 Effective Interest Rate 5.3466% * This bid did not meet the conditions of sale mentioned earlier, that is the highest coupon rate bid may not exceed the lowest coupon rate bid by more than 1 1/2%. C 1I Minutes of the Regular Meeting - August 26, 1976 Bidder (s)• Merrill Lynch, Pierce, Fenner & Smith Maturity: Coupon Rate: 1978 to 1982 6.25% 1983 to 19xx 5.00% 1984 to 19xx 4.90% 1985 to 19xx 5.00% 1986 to 19xx 5.10% 1987 to 19xx 5.25% 1988 to 19xx 5.40% 1989 to 19xx 5.60% 1990 to 1991 5.75% Total Interest Cost $673,762.50 Less Cash Premium None Net Interest Cost 673,762.50 Effective Interest Rate 5.5030% Bidder (s) : Rotan Mosle Inc. First Southwest Company Shearson Hayden Stone Inc. Maturity: Coupon Rate: 1978 to 1981 6.10% 1982 to 19xx 5.25% 1983 to 19xx 4.60% 1984 to 19xx 4.75% 1985 to 19xx 4.90% 1986 to 19xx 5.00% 1987 to 19xx 5.15% 1988 to 19xx 5.30% 1989 to 19xx 5.40% 1990 to 191 5.50% Total Interest Cost $649,076.67 Less Cash Premium None Net Interest Cost 649,076.67 Effective Interest Rate 5.3014% Bidder s): Rausc er Pierce Securities Corporation Schneider, Bernet $ Hickman, Inc. Maturity: 1978 1983 1985 1986 1987 1988 1989 1990 1991 to 1982 to 1984 to 19xx to 19xx tO 19xx to 19xx to 19xx tO 19xx to 19xx Total Interest Cost Less Cash Premium Net Interest Cost Effective Interest Rate Coupon Rate: 6.25% 4.80% 4.90% 5.00% 5.10% 5.25% 5.40% 5.50% 5.60% $655,177.50 181.40 654,996.10 5.3498% 6201 Minutes of the Regular Meeting - August 26, 1976 Bidder (s): Underwood, Neuhaus & Co. Rowles Winston, Div. of Cowen & Co. Loeb Rhoades & Co. Maturity: Coupon Rate: 1978 to 1980 6.25% 6.25% 1981 to 19xx 5.80% 19xx 1982 to 1984 4.75% to to 1985 to 19xx 4.90% 1986 1986 to 19xx 5.00% 1987 to 19xx 5.10% 1988 to 19xx 5.25% 5.50% 1989 to 19xx 5.40% 1990 to 193x 5.50% ' 1991 to 193x 5.70% Total Interest Cost $651,380.00 Less Cash Premium None Net Interest Cost $651,380.00 Effective Interest Rate 5.3202% Bidder (s) : Fred Baker & Associates Maturity: Coupon Rate: Total Interest Cost $660,795.90 Less Cash Premium None Net Interest Cost $660,795.89 Effective Interest Rate 5.3971% Mr. Masterson adjourned to tabulate the bids to return later in the meeting with a recommendation. The Administration recommended that Council approve the Notice to Bidders and the Official Bid Form. Councilman Lander moved to accept the recommendation; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None Approve Minutes Councilman Kimmons moved to approve the minutes of the regular meeting of August 12, 1976 and ratification of actions taken at said meeting; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Lander, Kimmins, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None 1978 to 1982 6.25% 1983 to 19xx 5.10% 1984 1985 to to 19xx 19xx 4.90% 5.00% 1986 to 19xx 5.15% 1987 to 1988 5.25% 1989 to 1991 5.50% Total Interest Cost $660,795.90 Less Cash Premium None Net Interest Cost $660,795.89 Effective Interest Rate 5.3971% Mr. Masterson adjourned to tabulate the bids to return later in the meeting with a recommendation. The Administration recommended that Council approve the Notice to Bidders and the Official Bid Form. Councilman Lander moved to accept the recommendation; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None Approve Minutes Councilman Kimmons moved to approve the minutes of the regular meeting of August 12, 1976 and ratification of actions taken at said meeting; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Lander, Kimmins, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None 6202 Minutes of the Regular Meeting - August 26, 1976 Citv Manager's Resort 1976 Street Improvement Program - All the lime stabilization work has been completed and over fifty (50%) per cent of the streets have been surfaced with asphalt. Brown & Root's curb crew will be back in Baytown next week to construct the new curb on Ohio and Mississippi. This contractor is well ahead of schedule. Sliplining Projects - All the liner has been installed except , the section on Grantham from Pruett to Columbia. All taps have been made except those on Tenth Street and Highway 146. East District Sanitary Sewer Treatment Plant - This project continues to progress ahead of schedule. The project is approxi- mately seventy -five (75) per cent complete, and about sixty (60 %) per cent of the contract time has been used. Verbal approval has been received to advertise for bids for the sludge dewatering facilities at the East District Sanitary Sewage Treatment Plant; however, the Administration felt that written approval should be received prior to proceeding in that regard. Nest Sewer District - Langford Engineering, Inc. has completed the engineering report for the systematic sewer system evaluation survey, and asked to meet with Council to review the report prior to September 1 when this report must be submitted to the Texas Water Quality Board. Council concurred that the best time to hold this work session would be Monday, August 20, 1976 at 4:00 p.m. Library Expansion - The slab has been poured except for the loading dock and this should be poured on Monday. The structural steel is being erected; the beams and columns should be in place tomorrow. The roof deck system installation should begin next week. The parking lot excavation has been completed in preparation for the base material. Jailhouse Ditch Storm Sewer - All pipe will in be in place tomor- row. Then the work remaining will be the construction of inlets and manholes, street repair, and cleanup. The project is ninety (90%) per cent complete. Tennis Court Lighting at Duke Hill Park and Travis School Park - Installation is complete except for connecting the power and the switches. This work should be completed within a week. Park Maintenance Storage Building - The building has been com- pleted with the exception of two (2) air vents and cleanup. In response to questions from Council, the Administration ex- plained that there had been mechanical problems which had been re- solved at the West Main Sewgge Treatment Plant. For three weeks now, a city crew has been spraying to eliminate mosquitos where possible. The crew sprays five (5) nights a week. Ordinance - Prohibiting Visual Obstructions in Public Rights of Way At present, there is an ordinance which prohibits obstructions between the sidewalk and curb, but it is not as specific as the proposed ordinance which states: "An owner or occupant of any premises commits an offense if he intentionally or knowingly allows or permits any tree, shrub, vine, plant, lumber, boxes, posts or other objects of any description to be grown, cultivated or maintained in such a manner so that any portion overhangs, obtrudes, obstructs, or exists upon or over any public right of way in such a manner as to block the vision of the operator of a motor vehicle on a public street." 6203 Minutes of the Regular Meeting - August 26, 1976 Also, the proposed ordinance provides for notice either personally from the Director of Planning or written. The Council's Traffic Committee has recommended approval of the proposed ordinance; the Administration concurred. Councilman Kimmons moved to adopt the ordinance; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None ORDINANCE NO. 2070 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN, TEXAS, BY THE AMENDMENT OF CHAPTER 18, MOTOR VEHICLES AND TRAFFIC, "BY THE ADDITION OF A NEW SECTION 18 -25, OBSTRUCTION OF PUBLIC RIGHT OF WAYS; PROVIDING FOR A MAXIMUM PENALTY OF TWO HUNDRED ($200.00) DOLLARS; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Ordinance - Agreement with the Baytown Housing Authority for the Operation of Three Neighborhood Community Centers For three or four years the City of Baytown has entered into an agreement with the Baytown Housing Authority for the operation of recreational facilities at Edison Court, DeZavala Court, and Lincoln -Sam Houston Court Community Centers. The same contract is being proposed for another year. The Housing Authority has increased the funds to be contributed by the Authority from $6370 to $7000; however, this increase will only maintain the existing program. The Administration recommended approval of the ordinance. Councilman Hutto moved to accept the recommendation; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None ORDINANCE NO. 2071 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK OF THE CITY OF BAYTOWN TO EXECUTE AND ATTEST TO A CONTRACT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF BAYTOWN AND THE CITY OF BAYTOWN, TEXAS, WITH REGARD TO PROVIDING CITY OF BAYTOWN, PARKS & RECREATION DEPARTMENT PERSONNEL FOR THE ORGANIZATION, SUPERVISION, AND ADMIN- ISTRATION OF COMMUNITY ACTIVITIES PROGRAMS AT EDISON COURT, DEZAVALA COURT, AND LINCOLN -SAM HOUSTON COURT COMMUNITY CENTERS AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Hearing on Proposed Budget for 1976 -77 Mayor Gentry convened the public hearing on the proposed budget for the 1976 -77 fiscal year and explained that anyone who desired to speak during the hearing should sign the register located in the hall outside the Council Chamber. Mayor Gentry asked Mr. Lanham to present an explanation of the proposed budget prior to hearing any testimony. The proposed bud- get represents about a ten (10a) per cent increase over the approved 6204 Minutes of the Regular Meeting - August 26, 1976 budget for 1975 -76. The dollar increase is $1,043,361. However, during the year when general obligation bonds were sold the 1975 -76 budget was revised; therefore the proposed budget would represent only an eight (8 %) increase over the revised budget. The major item which necessitates this increase is due to sale of bonds and the interest and sinking fund requirements. An average 7 1 /2o salary increase for employees is included; also included is the addition of seventeen new employees. The proposed budget does not provide for any new services, but it does provide for expanded services by the addition of a drainage crew and additional personnel for the East District Sewage Treatment Plant when it is completed next year. Inflation has caused increases in utilities and repairs, but the r. A oposed'. budget can be implemented with the.present tax rate of 152. $.50 er month increase in the garbage charge is $3.50. An increase of 4,000 to $5,000 is being recommended for Senior Citizens. A number of organizational charges have been made between departments which involve no increases only transfer of functions and personnel. This concluded the City Manager's presentation. The Council then heard from persons who had indecated a desire to speak. Jimmy Day, 1400 Adams, spoke with regard to Senior Citizens and their transportation needs. At the present time Baytown Am- bulance Service will transport any patient to a hospital within the city for what Medicare will pay. The normal charge for this service is $35.00; Medicare allows $25.00 and pays 80% which is $20.00; therefore the ambulance service is losing $15.00. However, Mr. Day was more concerned with obtaining some sort of emergency trans- fer service into Houston or Galveston since Baytown Ambulance Ser- vice will not make these transfers unless the money is guaranteed. He suggested to Council that the City of Baytown sponsor some sort of Senior Citizens Transportation Program with a good co- ordinator for various groups and organizations have agreed to lend service to this type of program. Mr. Day stated briefly that the Senior Citizens were working on a plan for a transportation program which would be presented in detail in three weeks, but at this particu- larly time he wanted Council to consider allocating $150,000 toward the Senior Citizens Transportation Program. Mr. Day went on to say that he realized this seemed to be a large request, but he did not believe that a price could be placed on an individuals life. Darrell Davis, representing the Baytown Firefighters Associa- tion appeared to obtain a better understanding of the proposed pay plan. Mr. Davis also provided Council with copies of a tract which discussed vacancies in the police and fire department and salaries paid in those departments versus salaries paid by local industries and other cities. Then, Mr. Davis asked some specific questions about the proposed pay plan for city employees: 1. Will the civil service employees be under a different plan? All employees will be covered under the proposed plan. There are six steps for each classification. If an in- dividual comes into the plan on Step A, he would be eli- gible to move to Step B in six months, then one step each year. Of course, Council has the option of moving the plan up each year by what ever percentage Council seems desirable. This is not a great deal different than what the fire and police departments have been operating under for years. 6205 Minutes of the Regular Meeting - August 26, 1976 2. Why would a two -year man only receive a 3.4% increase? No employee would receive merely a 3.4% increase due to the design of the plan. Between each step there is a S% increase and if the plan were implemented as proposed, each employee would receive at least 5% increase. In the discussion it was pointed out that upon moving into the fire department would be making the same salary, but in the future this would not be the case. 3. Will all anniversary dates be moved to October 1, 1976? All employees of the City of Baytown as of October 1, 1976 will have that anniversary date. All persons hired after October 1 will use the date of hire as their anni- versary date. W. P. Dickson, Superintendent over Water Districution and Sewer Collection, a city employee for 29 years, appeared to request more help to take care of the backlog in his department. The men have worked so much overtime that it is now almost impossible to find anyone willing to work overtime. Also he pointed out that because there is not enough man- power or equipment, many citizens' complaints are received which cannot be satisfied as expeditiously as possible. In response to inquiries from Council, Mr. Dickson said that he had requested seven men in the proposed budget, which at the time inclu- ded the meter reading department, but these additional people were not included in the proposed budget. He also mentioned that there was a problem as far as transportation was concerned and breakdown of equipment, specifically tractors. In the last three years, the water and sewer de- partment has lost two trucks which were never replaced. Just last week two tractors were down at the same time and when this happens, almost all operations cease. Mr. Dickson also responded that to repair the old water lines was futile because this would amount to only a temporary repair situation, but given the promise that there are more dilapidated water lines than the city can financial replace, Mr. Dickson agreed that it would be feasible to have an independent contractor come in and help with some of the repairs. Council requested that Mr. Dickson supply information as to how many leaks are involved in this backlog so that a determination could be made whether additional employees are necessary or whether a contractor should be retained to help reduce this backlog. John T. Donnelly, 2306 Florida, had registered but did not have any comments or questions concerning the proposed budget. Since there was no response to Mayor Gentry's inquiry regarding the possibility of anyone. else desiring to ask questions or make comments regarding the proposed budget, Mayor Gentry declared the hearing to be closed. Awarding Bid for Sale of 1,250,000 Waterworks and Sanitary Sewer System Bonds, Series 1076 Mr. Masterson reported to Council that all bids had been tabulated with the exception of the bid which did not meet specifications and that his recommendation was, Rotan Mosle Inc. and associated with the Effec- tive Interest Rate of 5.3O14`"o. The Admis_tration concurred with this recommendation. Councilwoman Wilbanks moved for the adoption of the ordinance autho- rizing the sale of $1250,000 Waterworks and Sanitary Sewer System Bonds, Series 1976 to Rotan Mosle Inc, and associates; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None 6206 Minutes of the Regular Meeting - August 26, 1976 THE STATE OF TEXAS COUNTIES OF HARRIS AND CHAMBERS CITY OF BAYTOWN X The City Council of the City of Baytown, Texas, convened in regular meeting, open to the public, on the 26th day of August, 1976, at the City Hall, and the roll was called of the duly constituted officers and members of the City Council and the City Clerk of the City, to -wit: Tom Gentry Jody Lander Ted Kloesel Emmett Hutto E. C. Kimmons, Jr. Allen Cannon Mary E. Wilbanks Eileen P. Hall Mayor Councilman Councilman Councilman Councilman Councilman Councilwoman City Clerk and all of said persons were present, except the following ab- sentees: none , thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written ordi- nance entitled: ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1976; APPROPRIATING $500,000 OF PROCEEDS OF SALE THEREOF FOR THE PURPOSE OF IMPROVING AND EXTENDING THE CITY'S SANITARY SEWER SYSTEM; AND CONTAINING OTHER PROVISIONS RELATING THERETO (the "Ordinance ") was duly introduced for the consideration of the City Council and reviewed in full. It was then duly moved and seconded that the Ordinance be passed; and, after due dis- cussion, the motion, carrying with it the passage of the Ordi- nance, prevailed and carried by the following vote: AYES: All members of the City Council shown present above voted "Aye ". NOES: None. The Mayor thereupon announced that the Ordinance had been duly and lawfully adopted. The Ordinance thus adopted follows: ORDINANCE NO. 2069 ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS SERIES.1976; APPROPRIATyNG'$500,000.OF- PROCEEDS OF SALE THEREOF FOR THE PURPOSE OF IMPROVING AND EXTENDING THE CITY'S SANITARY SEWER SYSTEM; AND CONTAINING OTHER PROVISIONS RELATING THERETO THE STATE OF TEXAS X COUNTIES OF HARRIS AND CHAMBERS Z CITY OF BAYTOWN X WHEREAS, $500,000 in principal amount of the bonds here- inafter authorized were duly and favorably voted at an elec- tion held in the City of Baytown (the "City ") on the 17th day of March, 1970; and WHEREAS, the City Council now deems it advisable to issue $500,000 bonds as a protion and the final installment of $2,500,000 sanitary sewer system bonds voted at said election, and to issue $750,000 bonds to refund certain outstanding 6207 Minutes of the Regular Meeting - August 26, 1976 bonds, as hereinafter provided; THEREFORE, BE IT ORDAINDE BY THE CITY COUNCIL OF THE CITY OF BAYTOWN THAT: Section 1. The City's negotiable, serial coupon bonds to be designat�CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1976 (hereinafter called the "Bonds "), are hereby authorized to be issued and delivered in the amount of $500,000 for the purpose of improving and extending the City's sanitary sewer system, and in the amount of $750,000 for the purpose of refunding and canceling, and in lieu of, $750,000 in principal amount of the City's outstanding Waterworks and Sanitary Sewer System Junior Lien Revenue Bonds, Series 1975, dated April 1, 1975, aggregating $1,250,000 in principal amount. Section 2. The Bonds shall be dated September 15, 1976, shall I-e-num red consecutively from 1 through 250, shall be in the denomination of $5,000 each, and shall mature and become due and payable serially on May 15 in each of the years, and in the amounts, respectively, as set forth in the following schedule: YEAR AMOUNT YEAR AMOUNT 11 PT $ 486, 66 185 $ 8-o 1979 45,000 1986 90,000 1980 50,000 1987 130,000 1981 55,000 1988 145,000 1982 60,000 1989 135,000 1983 65,000 1990 125,000 1984 80,000 1991 145,000 The Bonds may be redeemed prior to their scheduled maturities, at the option of the City, on the dates stated and in the man- ner provided in the FORM OF BOND set forth in this ordinance. Section 3. The Bonds shall bear interest per annum at the following rates, respectively, to -wit: Bonds maturing 1978 through 1981, 6.1 % Bonds maturing 1982 through 19 5.25 % Bonds maturing 19-9-3 through 19 4.6 8 Bonds maturing 19$4 through 19 , -1-7-58 Bonds maturing 1985 through 19 4.9 % Bonds maturing 19$3 through 19 5.0 % Bonds maturing 19'97 through 19 5 —$ Bonds maturing 1988 through 19_, 5-.3% Bonds maturing 19-9-9 through 19, 5.4 % Bonds maturing 19156 through 19-9-1, - 5756 -$ evidenced by interest coupons which shall appertain to the Bonds and which shall be payable on the dates indicated in the FORM OF BOND set forth in this ordinance. 6208 Minutes of the Regular Meeting - August 26, 1976 Section 4. The Bonds, and the interest coupons apper- taining thereto, shall be signed and executed (and the Bonds shall be sealed) all as provided, and in the manner indicated, in the FORM OF BOND set forth in this ordinance. Section S. The form of the Bonds, including the form of registration certificate of the Comptroller of Public Ac- counts of the*State of Texas to be printed and endorsed on each of the Bonds, and the form of the aforesaid interest coupons which shall appertain and be attached intially to each of the Bonds, shall be, respectively, substantially as follows: FORM OF BOND: UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF HARRIS AND CHAMBERS CITY OF BAYTOWN, TEXAS WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BOND SERIES 1976 $5,000 ON MAY 15, ' the CITY OF BAYTOWN (the "City "), in the Counties of Harris and Chambers, in the State of Texas, promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from the date hereof, at the rate of % per annum, evidenced by interest coupons payable May 1 ,1 77, and semiannually thereafter on each November 15 and May 15 while this Bond is outstanding. The principal of this Bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this Bond or proper interest coupon at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, which shall be the paying agent for this series of Bonds. THIS BOND is one of a series of negotiable, serial, coupon Bonds, dated SEPTEMBER 1S, 1976, issued in the principal amount of %500,000 for the purpose of improving and extending the City's sanitary sewer system, and in the amount of $750,000 for the purpose of refunding and canceling, and in lieu of $750,000 in principal amount of the City's outstanding Waterworks and Sani- tary Sewer System Junior Lien Revenue Bonds, Series 1975, dated April 1, 1975, aggregating $1,250,000, in accordance with the Constitution and laws of the State of Texas, particularly Articles 1111 through 1118 and Article 717k -3, Vernon's Texas Civil Statutes, as amended, and the home -rule charter of the City; and pursuant to an election held within the City on the 17th day of March, 1970, and an ordinance duly adopted by the City Council of the City entitled ORDINANCE AUTHORIZING ISSUANCE OF $1,250,000 WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1976; APPROPRIATING $500,000 OF PROCEEDS OF SALE THEREOF FOR THE PURPOSE OF IMPROVING AND EXTENDING THE CITY'S SANITARY SEWER SYSTEM; AND CONTAINING OTHER PROVISIONS RELATING THERETO and finally passed on the 26th day of August, 1976, this Bond being one of a series of Bonds $500,000 of the aggregate princi- pal amount of which constitutes a portion and the final install- ment of $2,500,000 revenue bonds voted at the aforesaid election. id i� r 6209 Minutes of the Regular Meeting - August 26, 1976 ON NOVEMBER 15, 1988, OR ON ANY INTEREST PAYMENT DATE THEREAFTER, the outstanding Bonds of this series may be re- deemed prior to their scheduled maturities, at the option of the City, IN WHOLE, OR IN PART IN INVERSE NUMERICAL ORDER, for the principal amount thereof and accrued interest thereon to the date fixed for any such redemption, the City shall cause a written notice of such redemption to be mailed to the bank at which the Bonds are payable and published at least once in a financial publication published in the City of New York, New York, or in the City of Austin, Texas. By the date fixed for any such redemption, for provision shall be made with the paying agent for the payment of the required redemp- tion price. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the Bonds which are to be so redeemed thereby automat- ically shall be redeemed prior to their scheduled maturities; and they shall not be regarded as being outstanding except for the purpose of being paid by the paying agent with the funds so provided for such payment. IT IS HEREBY certified, recited, and covenanted that this Bonds has been duly and validly issued and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the issuance and delivery of this Bond have been performed, existed, and been done in accordance with law; and that the interest on and principal of this Bond and the series of which it is a part, together with other outstanding waterworks and sanitary sewer system revenue bonds of the City, are secured by and payable from an irrevocable first lien on and pledge of the Net Revenues from the opera- tion of the City's waterworks and sanitary sewer system, as defined and provided, or adopted by reference, in the ordinance authorizing this series of Bonds. THE HOLDER hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. EXCEPT AS MODIFIED authorizing this series and shall be subrogated longing to the bearers by the issuance of this this Bond is a part. by the provisions of the ordinance of Bonds, the bearer of this Bond is to all the rights and privileges be- )f the bonds which have been refunded Bond and the series of Bonds of which IN WITNESS WHEREOF, this Bond and the interest coupons appertaining hereto have been signed with the facsimile signa- ture of the Mayor and countersigned with the facsimile signa- ture of the City Clerk of the City, respectively, and the official seal of the City has been duly impressed, or placed in facsimile, on this Bond. COUNTERSIGNED: (SEAL) xxxxxxxxxx City Clerk xxxxxxxxxx 6210 Minutes of the Regular Meeting - August 26, 1976 FORM OF REGISTRATION CERTIFICATE: COMPTROLLER'S REGISTRATION CERTIFICATE Z REGISTER NO. I hereby certify that this Bond has been examined, cer- tified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal this Comptroller of Public Accounts of (SEAL) the State of Texas NO. FORM OF INTEREST COUPON: CPI 15, 19 , the CITY OF BAYTOWN, in the Counties of Harris and Chambers, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, unless due provision has 'been made for the redemption prior to maturity of the Bond to which this coupon appertains, upon pre- sentation and surrender of this interest coupon at the FIRST CITY NATIONAL BANK OF HOUSTON, Houston, Texas, said amount being interest due that day on the Bond bearing the number hereinafter designated of that issue of CITY OF BAYTOWN, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1976, dated September 15, 1976. The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Bond No. xxxxxxxxxx xxxxxxxxxxx City Clerk Mayor Section 6. The Bonds are and shall be secured by and payable from an irrevocable first lien on and pledge of the Net Revenues from the operation of the City's waterworks and sanitary sewer system (the "System "), and said Net Revenues are further pledged irrevocably to the maintenance of the Bond Fund. Section 7. The Bonds, and interest coupons appertaining thereto, shall constitute special obligations of the City, payable solely from the pledged Net Revenues, and the holders of the Bonds and the interest coupons attached thereto shall never have the right to demand payment out of any funds raised or to be raised by taxation. 6211 Minutes of the Regular Meeting - August 26, 1976 Section 8. (a) The term "Bond" or "Bonds" shall mean any or all o -the Bonds, as the case may be, authorized to be issued and delivered by this ordinance. (b) The term "Outstanding Bonds ", as used herein, shall mean the outstanding bonds of the following issues of the City: Waterworks and Sewer System Revenue Bonds, Series 1958, dated February 15, 1958, au- thorized by ordinance dated February 6, 1958; Waterworks and Sanitary Sewer System Revenue Bonds, Series 1966, dated February 15, 1966, authorized by ordinance dated February 24, 1966; Waterworks and Sanitary Sewer System Revenue Bonds, Series 1967, dated May 15, 1967, autho- rized by ordinance dated May 25, 1967; and Waterworks and Sanitary Sewer System Revenue Bonds, Series 1971, dated April 15, 1971, au- thorized by ordinance dated April 12, 1971. (c) The Bonds hereby authorized are parity "Additional Bonds ", as defined and permitted in an ordinance dated May 13, 1957, hereafter called the "1957 Ordinance ", whereby the City's Waterworks and Sewer System Revenue Refunding Bonds, Series 1957, dated May 15, 1957 (all of which bonds have now been re- tired both as to principal and interest) were authorized, and Sections 8.02 (a), (b), (c), and (e) and Sections 9 through 12 of said ordinance (a photocopy thereof being attached hereto, marked Exhibit "A ", and made a part hereof for all purposes) are hereby adopted by reference and shall be applicable to the Bonds for all purposes except to the extent hereinafter specifically modified and supplemented. The Bonds and the Outstanding Bonds are and shall be secured by and payable from a first lien on and pledge of the Net Revenues from the opera- tion of the System, and all of said obligations shall be on a parity and of equal dignity in all respects. Section 9. In addition to all other amounts required by the 1757�rTinance and by the ordinances authorizing the Out- standing Bonds, the City, at the same time payments are made into the Bond Fund under the provisions of the 1957 Ordinance and of the ordinances authorizing the Outstanding Bonds, re- spectively, from the funds in the System Fund, shall pay into the Bond Fund each year beginning with the year in which the Bonds are issued, an amount equal to 100% of the amount re- quired to meet the interest and principal payments falling due on and before the next maturity date of the Bonds. In addition to such payments and in addition to the payments into the Bond Fund Reserve Account required by the 1957 Ordinance and by the ordinances authorizing the Outstanding Bonds, the City shall pay into the Bond Fund, from the System Fund, in each year 20% of the above required amount sufficient to meet the interest and principal payments falling due on or before the next maturity date of the Bonds and the interest and prin- cipal payments on the Bonds for one year thereafter. Such additional payments shall be made into the Bond Fund Reserve Account established by the 1957 Ordinance. The amount required to be paid into the Bond Fund in each year shall be in sub- stantially equal monthly payments from the monies in the System Fund after deductions have been made for payment of the reasonable cost of operating and maintaining the System for such month. If the revenues of the System in any month, after deduction for operation and maintenance, are sufficient to make the required payment into the Bond Fund, including the Bond Fund Reserve Account, then the amount of any deficiency in such payment shall be added to the amount otherwise required 6212 Minutes of the Regular Meeting - August 26, 1976 to be paid into the Bond Fund in the next month. Insofar as the Bonds are concerned, no payments other than the payments required by the 1957 Ordinance need be made into the Contin- gencies Fund. Except as provided herein, all of the provisions of the aforesaid 1957 Ordinance relating to the payment or de- posits of monies into the Bond Fund and the Bond Fund Reserve Account and to the maintenance of said Bond Fund, including said Bond Fund Reserve Account, shall apply to payments or de- posits required by this ordinance and to the maintenance of said Bond Fund, including said Bond Fund Reserve Account. Section 10. There is hereby appropriated out of the pro- ceeds o. sale of the Bonds the sum of $500,000 for the purpose of improving and extending the City's sanitary sewer system and said proceeds of sale of the Bonds shall be used and ex- pended for such purpose as set forth in the ordinance adopted February 26, 1970, calling the bond election which was held in the City on March 17, 1970. It is estimated that the maximum cost of the current project, which consists of one project only, for improving and extending the City's sanitary sewer system will not exceed $500,000; consequently, there is no necessity for any down payment and no such down payment is ordered to be made. It is hereby officially found and deter- mined that the probable period of usefulness of the current project is forty (40) years. Section 11. That based upon all facts, estimates and circumstances now known or reasonably expected to be in exis- tence on the date the Bonds are delivered and paid for, the City reasonably expects that the proceeds of the Bonds will not be used in a manner that would cause the Bonds or any portion of the Bonds to be an "arbitrage bond" under Section 103(d) (2) of the Internal Revenue Code of 1954, as amended, and the temporary and proposed regulations heretofore pre- scribed thereunder, including, without limitation, Sections 1.103 -13 and 1.103 -14 of the proposed regulations published in the Federal Register on May 3, 1973. Furthermore, all officers, employees an ad gents of the City are authorized and directed to provide certifications of facts, estimates and circumstances which are material to the reasonable expectations of the City as of the date the Bonds are delivered and paid for, and any such certifications may be relied upon by counsel, by the owners or holders of the Bonds, or by any person interested in the exemption of interest on the Bonds from Federal income taxation. Moreover, the City covenants that it shall make such use of the proceeds of the Bonds, and take such other and further action as may be required so that the Bonds shall not be "arbitrage bonds" under Section 103(d) of the Internal Revenue Code of 1954, as amended, and regulations prescribed from time to time thereunder. Section 12. Except as modified by the provisions of this ordinance- the bearers of the Bonds hereby authorized are and shall be subrogated to all of the rights and privileges belonging to the bearers of the bonds which are being refunded by the issuance of the Bonds. Section 13. The Mayor of the City is hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas and their registration by the Comptroller of Public Accounts of the State of Texas. None of the Bonds shall be so registered until all of the obligations being refunded by the issuance of the Bonds have been duly cancelled by the said Comptroller. 6213 Minutes of the Regular Meeting - August 26, 1976 Section 14. The Official Statement, dated the date of this ordinance—. of the City of Baytown relating to the Bonds, and the distribution of such Official Statement to prospective investors in the Bonds, is hereby authorized and approved. The appropriate officers and representatives of the City are hereby authorized to cause such Official Statement to be delivered to Rotan Mosle Inc. and the other members., it any, of the group represented by Rotan Mosle Inc. In order to urt er acs state the distribution of the Bonds, the Mayor, the City Clerk, and the Director of Finance, acting in their respective official capacities, are authorized to execute and deliver, on behalf of the City, a certificate in substantially the following form: CERTIFICATE OF MAYOR, CITY CLERK AND DIRECTOR OF FINANCE THE STATE OF TEXAS COUNTIES OF HARRIS AND CHAMBERS CITY OF BAYTOWN The undersigned, Tom Gentry, Mayor of the City of Baytown, Texas (the "City "), Eileen P. Hall, City Clerk of the City, and J. B. LeFevre, Director of Finance of the City, do each hereby certify on behalf of the City that: 1. We have reviewed the Official Statement, dated August 26, 1976 (the "Official Statement "), relating to the City's Waterworks and Sanitary Sewer System Revenue Bonds, Series 1976 (the "Bonds "); and 2. To the best of our knowledge and belief: (a) the description and statements of or pertaining to the City contained in its Official Statement on the date of such Official Statement, on the date of sale of the Bonds and acceptance of the best bid therefor, and on the date of the delivery of the Bonds, were and are true and correct in all material respect; (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 state- ment 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; and (c) insofar as the descriptions and statements, including financial data contained in such Official Statement, of or pertaining to entities other than the City and their activities 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. IN WITNESS WHEREOF, we have signed this certificate on behalf of the City on this the day of , 1976, the date of payment for ad delivery of the Bon s. CITY OF BAYTOWN, TEXAS Mayor City Clerk Director of inance 6214 Minutes of the Regular Meeting - August 26, 1976 and such officers, and any other appropriate officer of the City, are further authorized to execute and deliver, on behalf of the City, such other documents, instruments and papers and to take such further action as such officer or officers may determine to be necessary or advisable to complete the delivery of the Bonds and the distribution thereof, such determination to be conclusively evidenced by the execution and delivery of such document instrument or paper or the taking of such action, as the case may be. A copy of such Official Statement is attached hereto and is made a part of this ordinance for all purposes. Section 15. All of the Bonds are hereby sold and shall be delivered to Rotan Mosle Inc. and associates or the par value thereof-and accrued interest thereon to date of delivery, plus a premium of $ none , subject to the un- qualified approving opinions, as to the legality of the Bonds, of the Attorney General of the State of Texas and of Vinson, Elkins, Searls, Connally $ Smith, Houston, Texas, market attorneys; and it is hereby officially found, determined, and declared that the Bonds are sold on the best terms and for the best price possible. Section 16. Immediately following delivery of the Bonds to the purchaser thereof, the accrued interest and premium, if any, shall be deposited in the Bond Fund. Section 17. The approving opinion of Vinson, Elkins, Searls, Conn —� & Smith, Houston, Texas, and Cusip Numbers may be printed on the back of each of the Bonds, but errors or omissions in such opinion or errors in or omissions of such numbers shall have no effect on the validity of the Bonds. Section 18. The Mayor and all other appropriate offi- cers of the City are hereby authorized and directed to do any and all things necessary or convenient to carry out the pro' visions of this ordinance. Section 19. This ordinance was read once by the City Council and s all take effect immediately. Section 20. It is hereby officially found and determined that the need of the City for such financing creates an emer- gency and an urgent public necessity for the holding, at the scheduled time, of the meeting of the City Council at which this ordinance is adopted and for the adoption of this ordi- nance; and the NOTICE OF MEETING relating to said meeting and heretofore posted by the City Clerk, and the posting thereof, are hereby authorized, approved, adopted, ratified, and con- firmed. PASSED, AUTHENTICATED, AND APPROVED this 26th day of August, 1976. ATTEST: Mayor CITY OF BAYTOWN, TEXAS City Clerk CITY OF BAYTOWN, TEXAS (SEAL) 6215 Minutes of the Regular Meeting - August 26, 1976 EXHIBIT A 8.02 - DEFINITIONS: That, as used in this ordinance, the follow- ing terms -s a mean and include, and are defined, as follows, to -wit: (a) Cit - the City of Baytown, Texas, and, where appro- priate, the Cit�uncil thereof. (b) System - the Waterworks and Sanitary Sewer System of the City, inlcu ill present and future extensions, replace- ments, and improvements to said Waterworks and Sanitary Sewer System. (c) Net Revenues - the gross revenues derived from the operation of the System less the reasonable expenses of operation and maintenence of said System, including all salaries, labor, materials, interest, and such repairs and extensions as in the judgment of the governing body of the City are necessary to keep the plant or utility in operation and render adequate service to the City and the inhabitants thereof, or such as might be neces- sary to meet some physical accident or condition which would otherwise impair the original security. (e) Additional Bonds - the additional bonds that the City expressly reserves the right to issue in Section 9.06 of this ordinance. Section 9• PLEDGE OF NET REVENUES: That all the net revenues derived from the operation o t e ystem, with the exception of those in ex- cess of the amounts required to establish and maintain the funds as hereinafter provided in this ordinance, are hereby irrevocably pledged to the payment of the Bonds and, when and if issued, the Additional Bonds. For the benefit of the original and all sub- sequent holders of the Bonds, coupons, or any part thereof, and in addition to all other provisions and covenants in the laws of the State of Texas and in this ordinance, it is expressly stipu- lated: 9.01 - RATES: The City shall fix and maintain rates and collect cTiarges—f—or the facilities and services afforded by the System, which will provide revenues sufficient at all times: (a) To pay all operation, maintenance, depreciation, re- placement, and betterment charges of the System; (b) To produce net revenues each year in an amount not less than one and one -half (1 -1/2) times the average annual prin- cipal and interest requirements of all bonds then outstanding pay- able from the revenues of the System; (c) To establish and maintain the Revenue Bond Fund (in- cluding the Reserve Account thereof) and the Contingencies Fund, hereinafter mentioned; (d) To pay all outstanding indebtedness against the Sys- tem, other than the Bonds and (when issued) the Additional Bonds, as and when the same becomes due. Provided also that no free services of the System shall be allowed, and should the City or any of its agencies or instrumentalities make use of the services, payment of the reasonable value thereof shall be made by the City out of funds derived from sources other than revenues and income of the System. 6216 Minutes of the Regular Meeting - August 26, 1976 9.02 - USE OF REVENUES: The City will deposit, as collected, all revenues erive rom the operation of the System into a separate account (herein called the "System Fund "), which shall be kept separate and apart from all other funds of the City. The System Fund shall be administered as follows: (a) Maintenance and operation: From the moneys in the System Fun t e City shall pay t e expenses of operation and maintenance of the System, including all salaries, labor, mate- rials, interest, and such repairs and extensions as in the judg- ment of the governing body of the City are necessary to keep the plant or utility in operation and render adequate service to such City and the inhabitants or such as might be necessary to meet some physical accident or conditions which would otherwise impair the original security. (b) Revenue Bond Fund: There is hereby created and established a special fund for the payment of the interest on and principal of the Bonds, which fund is hereinafter referred to as the "Bond Fund." From the funds in the System Fund, the City shall pay into the Bond Fund during each year beginning with the date of the Bonds, an amount equal to 100 per centum of the amount required to meet the interest and principal payments falling due on and before the next maturity date of the Bonds. In addition to such payment, the City shall pay into the Bond Fund, from the System Fund, in each year 20 per centum of the above required amount until such time as there is in the Bond Fund an amount sufficient to meet the interest and principal payments falling due on or before the next maturity date of the Bonds and the interest and principal payments on the Bonds for one year there- after. Such additional payments shall constitute and be known as the Bond Reserve Account. The amount required to be paid into the Bond Fund in each year shall be in substantially equal monthly payments from the moneys in the System Fund after deduc- tions have been made for paying the reasonable cost of operating and maintaining the System for such month. If the revenues of the System in any month, after deductions for operation and maintenance, are insufficient to make the required payment into the Bond Fund, including the Bond Reserve Account, then the amount of any deficiency in such payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. It is the intent of this provision that the sums paid into the Bond Fund shall be in excess of the immediate requirements for payment of current interest and principal on the bonds, until there has been accumulated in the Bond Fund, as a reserve, an amount sufficient to service the Bonds for one year. The moneys in the Bond Fund shall be used solely for the purpose of paying interest on and principal of the Bonds until all Bonds have been retired; provided that, when the total in the Bond Fund is equal to the aggregate principal amount of all bonds outstanding and payable from said Bond Fund, plus accrued interest thereon, the moneys in the Bond Fund may be used to purchase such bonds at a price, exclusive of accrued interest, not exceeding the principal amount thereof. The Bond Fund shall be established and maintained at The First City National Bank of Houston, Houston, Texas, and the moneys paid into said Bond Fund, as required by this ordinance, shall be deposited on or before the 20th day of each month, be- ginning May 20, 1957, at said Bank. The moneys deposited in the City of direct obligations of the United States of America having an aggregate market value, exclusive of accrued in terest, at all times at least equal to such Bond Fund. 6217 Minutes of the Regular Meeting - August 26, 1976 Moneys in the Bond Reserve Account, at the option of the City, may be invested in direct obligations of the United States of America, maturing within ten (10) years from the date of pur- chase or maturing before the final maturity of the Bonds, which- ever shall first occur, which shall be deposited in escrow with said Bank under an escrow agreement. If such funds are so in- vested and deposited in escrow, the City shall have the right to have sold through the escrow agent on the open market a suffi- cient amount of said securities in order to meet its obligations of principal and interest in the event it does not have sufficient funds, univested, on hand for such purpose. Under such circum- stances, the Mayor is hereby authorized, ordered, and directed to give fifteen (15) days' notice to such escrow agent of the neces- sity to sell said securities on the open market. After such sale, the moneys resulting therefrom shall belong to the Bond Reserve Account of the Bond Fund, and shall be available to pay such obli- gations of principal and interest. So long as the Bond Reserve Account contains a balance of not less than an amount sufficient to service the Bonds for one year, as above provided, no further payments need be made into said Reserve Accoun; provided, that if said balance is ever reduced to an amount which is less than that specified above, payments into said Reserve Account shall be resumed, as above provided, and shall be continued until said Account contains a balance of not less than an amount sufficient to service the Bonds for one year, as above provided. (c) Contingencies Fund: There is hereby created and established a special fund, as a reserve for contingencies, which fund is hereby referred to as the "Contingencies Fund." After payments required by Sections 9.02(a) and 9.02(b), above, have been made, the City, on or before the 20th day of each month, beginning June 20, 1957, from moneys in the System Fund, shall deposit in the Contingencies Fund a sum not less than $500.00, and such monthly payments shall be continued until such time as there is in the Contingencies Fund a balance of not less than $50,000.00. Moneys in the Contingencies Fund shall be used only (1) to pay unusual maintenance and operation expenses, as such expenses are defined in Section 9.02(a) above, for which there are no other moneys available, and (2) to pre- vent a default in the payment of principal and interest in the event there are otherwise insufficient moneys for such purposes. If in any month the City shall for any reason fail to pay into said Contingencies Fund the full amount above stipu- lated, amounts equivalent to such deficiencies shall be set apart and paid into said Contingencies Fund from the first available and unallocated revenues of the following month or months and shall be in addition to the monthly deposit herein - above provided to be otherwise paid into said Contingencies Fund. Said Contingenceis Fund shall be established and maintained at the Citizens National Bank $ Trust Co., Baytown, Texas, and shall be continously secured by a valid pledge to the City of direct obligations of the United States of America, having an aggregate market value, exclusive of accrued interest, at all times at least equal to such Reserve Fund. Moneys in the Contingencies Fund, at the option of the City, may be invested in direct obligations of the United States of America, maturing within ten (10) years from the date of purchase or maturing; be- fore the final maturity of the Bonds, whichever shall first occur, which shall be deposited in escrow with said Bank under an escrow agreement. If such funds are so invested and deposited in escrow, the City shall have the right to have sold, and shall sell, through the escrow agent. on the open market a sufficient amount of such securities to meet its duties and obligations, as herein provided, in the event it does not have sufficient in- vested funds on hand for such purpose. Under circumstances, the Mayor is hereby authorized, ordered, and directed to give fifteen (15) days' written notice to such escrow agent of the 6218 Minutes of the Regular Meeting - August 26, 1976 necessity to sell such securities in the open market. After said sale, the moneys resulting therefrom shall belong to the Contin- gencies Fund and shall be avaliable for the purposes as herein provided. When a balance of not less than $50,000 is reached in the Contingencies Fund, no further payment need be made into said Fund; however, in the event that said balance is ever reduced to an amount less than $50,000, the monthly payments, as above pro- vided, shall be resumed and continued until said balance of $50,000 is again reached and maintained. (d) Trust Funds: Moneys in the Bond Fund (including the Reserve Account ) an in the Contingencies Fund shall constitute trust funds, and shall be used solely for the purposes herein provided until all the Bonds have been retired. When there are moneys in said Bond Fund and Contingencies Fund sufficient to make all interest payments and prinicpal payments due and to be- come due to the final maturity of all bonds then outstanding payable from the revenues of the System, no further payments need be made into said Bond Fund and Contingencies Fund. (e) Surplus: Any funds remaining in the System Fund after provision on has been made for the reasonable cost of operat- ing and maintaining the System, and after paying the amounts required to be paid into the Bond Fund and Contingencies Fund, as above provided, and after all payments that may be required be used by the City for any lawful purpose. 9.03 - MAINTENANCE AND OPERATION: That the City shall maintain t�System in goo condition an operate the same in an efficient manner and at a reasonable cost. So long as any of the Bonds are outstanding, the City agrees to maintain insurance for the bene- fit of the holder or holders of the Bonds on the System of a kind and in an amount which would usually be carried by private com- panies engaged in a similiar type of business. Nothing in this ordinance shall be construed as requiring the City to expend any funds for this purpose which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City from doing so. 9.04 - ACCOUNTS AND REPORTS: That the City shall keep proper re- corJs and accounts separate and apart from all other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the System. The City will operate the System and will keep its books of records and accounts on the basis of a fiscal year ending September 30th. Not later than sixty (60) days after the close of each fiscal year, begin- ning with the fiscal year ending September 30, 1958, the City will furnish (without cost) to Moroney, Beissner & Co., Houston, Texas, and to any holder of any of the Bonds who may so request in writ- ing, a signed or certified copy of a report by an independent firm of certified public accountants, covering the next preceding fiscal year, showing as to such year the following information relating to the System: (a) Income and expense statement; (b) Balance sheet; (c) Accountant's comment regarding the manner in which the City has complied with the requirements of this ordinance, and his recommendation for any changes or improvements in the operation of the System; (d) List of insurance policies in force at the end of such year, showing, as to each policy, the risk covered, the name of the insurer, and the expiration date; (e) The number of properties connected with the waterworks system and the number of properties connected with the sanitary sewer system, and the total income from the System for such year; 6219 Minutes of the Regular Meeting - August 26, 1976 (f) The number of unmetered customers of the waterworks system at the end of such year, if any; and (g) The number of Gallons of water pumped intn or taken by the waterworks system and the number of gallons of water sold during said year. r 9.05 - INSPECTIONS: The original purchaser of the Bonds and any f {1 holder o 2 or more in principal amount of the Bonds then out- standing shall have the right at any reasonable time to inspect the System and all records, accounts and data of the City relat- ing thereto. 9.06 - ADDITIONAL BONDS: In addition to inferior lien bonds a t ze y apters 249 and 250, Acts of the 51st Legislature of Texas, Regular Session, 1949, as amended (Articles lllla and llllb, Vernon's Texas Civil Statutes, 1925, as amended), the City expressly reserves the right to issue additional parity bonds in one or more installments and in one or more issues, and such Additional Bonds, when issued, amy be secured by and payable from a first lien on and pledge of the net revenues of the System in the same manner and to the same extent as are the Bonds, and such Additional Bonds may in all respects be of equal dignity with said Bonds. It is expressly provided, however, that no Additional Bonds shall be issued unless: (a) Each of the funds created by this ordinance contains the amount of money then required to be on deposit therein; (b) The net revenues of the System for the last preceding fiscal year (the fiscal year next preceding the month in which the ordinance authorizing any Additional Bonds is adopted), as certi- fied by an independent public accountant or firm of independent public accountants, were equal to at least one and one -half (1 -1/2) times the requirements for the payment of principal and interest on all bonds that will be outstanding and payable from the revenues of the System after the bonds then proposed to be issued are is- sued, sold. and delivered, for the calendar year in which said requirements are greatest; and (c) The bonds then proposed to be issued are made to mature on May 15th in each of the years in which they are scheduled to mature. The term "net revenues" as used herein shall mean all of the net revenues of the System (excluding income received speci- fically for capital items) after deduction of the reasonable expenses of operation and maintenance of the System (excluding expenditures for capital items). Section 10: SYSTEM OF RECORDS AND ACCOUNTS: That the Mayor and other proper city officials are ere y instructed and directed to do any and all things in reference to the installing and maintaining of a complete system of records and accounts pertaining to the System and to make the moneys available for the payment of the Bonds in the manner provided by law. Section 11: SPECIAL COVENANTS: That the City covenants, by and through this or finance, as o lows: 11.01 - POWER TO PLEDGE REVENUES: That it has lawful power to plefge t e revenues supporting this issue of Bonds and has law- fully exercised its power under the Constitution and laws of the State of Texas, including said power existing under Articles 1111 to 1118, both inclusive, and Article 1182c -1, Vernon's Texas Civil Statutes, 1925, as amended; that the Bonds shall be ratably secured under said pledge of income, and in such manner that one Bond shall have no preference over any other Bond. 6220 Minutes of the Regular Meeting - August 26, 1976 11.02 - REVENUES NOT ENCUMBERED: That the City covenants and represents that other than for the outstanding bonds of the fol- lowing issues: (a) City of Goose Creek Waterworks and Sewer System Revenue Bonds, dated August 1, 1945; (b) City of Pelly Waterworks and Sewer System Revenue Bonds, dated December 1, 1945; (c) Harris County Water Control and Improvement District No. 7 Waterworks and Sewer System Revenue Bonds, Series 1945, dated March 1, 1945; (d) Harris County Water Control and Improvement District No. 7 Waterworks and Sewer System Revenue Bonds, Series 1945A, dated September 1,1945; (e) Harris County Water Control and Improvement District No. 7 Waterworks and Sewer System Revenue Bonds, Series 1946, dated December 13, 1946; and (f) Harris County Water Control and Improvement District No. 30 Waterworks and Sewer System Combination Tax and Revenue Bonds, 1952, dated April 1, 1952, the rents, revenues, properties, and income of the System are not in any manner pledged to the payment of any other debt or obliga- tion of the City, nor of the System. That all outstanding bonds of the issues described above in (a), (b), (c), (d), and (e) are to be retired or refunded by the issuance of the Bonds hereby authorized; and that all outstanding bonds of the issue described above in (f) are to be refunded by the $230,000 City of Baytown Waterworks and Sewer System Refunding Bonds, Series 1957, dated May 15, 1957, now in process of issuance. 11.03 - SALE OR ENCUMBRANCE OF SYSTEM OF REVENUES: That, so long as any of the Bonds remain outstanding, t e ity will not sell or encumber the System, or any substantial part thereof, and that, with the exception of the Additional Bonds mentioned in Section 9.06 of this ordinance, when issued in accordance with the terms and conditions of this ordinance, it will not encumber the reven- ues of the System unless such encumbrance is made junior and sub- ordinate to the Bonds and to all the provisions of this ordinance. 11.04 - NO COMPETING SYSTEM: That the City further covenants and agrees, to the extent t at it legally may, that so long as any of the Bonds or interest thereon are outstanding, no franchise shall be granted for the installation or operation of any competing system, that the City will prohibit the operation of any system other than the System owned by the City, and that the operation of any such system by anyone other than the City is hereby pro- hibited. Section 12: ORDINANCE IS CONTRACT: That the provisions of this ordinance shall constitute a contract between the City and the holder or holders from time to time of the Bonds, and after the issuance j of any of said Bonds, no change, variation, or alteration of any kind in the provisions of this ordinance may be made until all the Bonds have been paid in full as to both principal and interest. END OF EXHIBIT "A" 6221 Minutes of the Regular Meeting - August 26, 1976 Petitions No petitions were presented at this time. Arthur Morgan - Violation of the Code of Ordinances Arthur Morgan of 1003 East Fayle appeared with regard to violations of the City Code. Mr. Morgan began by asking if the engineering department had inspected a curb - breaking on November 25, 1975 at 1001 East Fayle. Mr. Morgan stated his reason for requesting this information is that the driveway at this location, in his opinion, was being utilized as a commercial driveway which would require a ten -foot radius, rather than a residential drive- way which would require a two -foot radius. Mr. Morgan wanted a definite response from the Administration as to whether the drive- way located at 1001 East Fayle is, in fact, commercial or residen- tial. Also, Mr. Morgan was concerned about a complaint which was filed against him in Municipal Court with regard to a slab for which he obtained a permit to install, but failed to acquire the inspection necessary prior to pouring. Mr. Morgan admitted to this violation. Then, Mr. Morgan made reference to a slab and carport which had been constructed on his neighbor's property without a permit or inspection for which no charges were filed. Mr. Morgan felt this to be discriminatory; unless, of course, there had been a permit issued and inspections made. If, however, no permit had been issued or inspection made, then Mr. Morgan felt that the City would be in violation also. If a permit had been issued and inspection made, Mr. Morgan requested evidence from the Administration. Council requested that the Administration prepare a written report regarding the questions posed by Mr. Morgan so that a copy could be furnished to Mr. Morgan. Afterwhich, Mr. Morgan requested that the lots located in this area be re- inspected for violations, such as construction without a permit or the proper inspection. Mayor Gentry declared a ten - minute recess. Receive the Report of the Board of Equalization for the Year 1976 Mr. C. 0. Walker, Chairman of the 1976 Board of Equalization, presented the report of the Board. On June 1, 1976, the Board of Equalization for 1976 was organized, at which time Mr. Walker was elected chairman of the three - member board. The other members are Alvin Miles and Lamar Kelley. At the organizational meeting, the Real Estate and Personal Property Evaluation Manuals were in- spected, discussed, and adopted by the Board. The meeting was adjourned until July 13, 1976, the first day of the public hearings held by the Board. During the four days of public hearings and three days of work sessions, the Board of Equalization met with taxpayers and dis- cussed 130 property values. After hearing all the evidence presented by the taxpayers, the Board accepted the valuations of the Tax Department or made adjustments to complete and equalize the Tax Rolls, which produced an assessed value of $302,780,780 based on 50% of fair market value. The Board did not take action on one Industrial District because at the time the District was in arbitration; therefore, the Board will need to consider this Industrial District when the matter had been completely arbitrated. 6222 Minutes of the Regular Meeting - August 26, 1976 The Board recommended that there be at least one hold -over member on the Board for the following year. Councilman Cannon moved to accept the report as presented with the "stipulation that the information concerning the Industrial District will be supplemented later; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None Petition A petition was presented requesting that Section 27 -29 of the Code of Ordinances be reviewed and revised to allow carports to be built within 15 feet of the curb line on North Fifth, North Sixth, and North Seventh in the Outlawn Terrace Subdivision. The petitioners stated in the petition that the present ordinance is prejudicial to the homeowners in Outlawn Terrace due to the size of the lots in this particular subdivision. Councilman Kloesel felt that the Administration should be directed to prepare an ordinance to resolve this problem, that is if the problem can be resolved in this manner. Councilman Cannon moved to accept the petition and that it be referred to the Administration for further study and recommenda- tion; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None Ordinance - Appropriating Surplus in the Revenue Sharing Fund to Various Line Items in the 1976 Entitlement When bids were received on the 1976 Street Improvement Program, the low bidder was over the estimate by $30,000 and at that time the Administration had assured Council that this overage could be covered with surplus revenue sharing funds. There is a surplus due to under spending and interest earned on revenue sharing funds on deposit. The Administration must have Council approval before the deficits can be eliminated. The Administration recommended approval of the ordinance authorizing appropriating surplus revenue sharing funds. Councilman Kloesel moved to adopt the ordinance; Councilman Kimmons seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None ORDINANCE NO. 2072 AN ORDINANCE AUTHORIZING THE CITY MANAGER OF THE CITY OF BAYTOWN TO APPROPRIATE THIRTY -EIGHT THOUSAND THREE HUNDRED TWENTY -FIVE AND N01100 $38,325.00) DOLLARS FROM THE UNAPPROPRIATED SUR- PLUS OF GENERAL REVENUE SHARING FUNDS TO BUDGET ACCOUNTS DESIGNATED HEREIN AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Installation of Yield Signs at Certain Intersections Upon recommendation of Council's Traffic Committee, this pro- posed ordinance was drafted which establishes yield intersections at the following locations: 6223 Minutes of the Regular Meeting - August 26, 1976 Mesquite Lane at Chapparral Drive Apache Trail at Chapparral Drive Cactus Drive at Chapparral Drive Sagebrush Trail at Chapparral Drive The Administration recommended approval of the ordinance. Councilman Kimmons moved for the adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None ORDINANCE NO. 2073 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE POSTING OF YIELD SIGNS AT CERTAIN INTERSECTIONS; PRESCRIBING A MAXI- MUM PENALTY OF TWO HUNDRED AND N0 1100 ($200.00) DOLLARS FOR THE VIOLATION THEREOF; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Expanded Library Facility - Equipment for Charging and Discharging Additional equipment will be needed in the charging and dis- charging area of the expansion to the Sterling Municipal Library. The items needed are one cupboard unit, one vertical file unit, five slipping trucks, two book chargers, and two date card holders. The Administration recommended that Council approve the advertise- ment for bids and payment of the equipment with 1975 Bond Funds. Councilman Kloesel moved to accept the recommendation; Councilman Kimmons seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None Appointments to the Parks and Recreation Advisory Board According to Section 2 -36 of the City Code, the Mayor shall make appointments to the Parks and Recreation Advisory Board with approval of City Council. Mayor Gentry asked City Council confir- mation of the reappointment of Ike Hall, Dick Moravek, and Lurine Hancock to the Board. Councilman Kimmons moved to confirm these appointments to the Parks and Recreation Advisory Board; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None Committee Reports Councilman Cannon moved that Council adopt a resolution com- mending Robert G. (Bob) Feinberg for his many years of service to the community. Mr. Feinberg had chaired the Citizen's Traffic 6224 Minutes of the Regular Meeting - August 26, 1976 Safety Council for several years prior to resigning for health reasons. Councilman Cannon also requested that there be no publicity, since Mr. Feinberg would be asked to attend a meeting in September where the resolution would be formally presented. Councilman Hutto seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None RESOLUTION NO. 541 A UNANIMOUS RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, FORMALLY RECOGNIZING AND THANKING ROBERT G. FEINBERG FOR HIS YEARS OF DE- VOTED SERVICE AS CHAIRMAN OF THE BAYTOWN CITIZEN'S TRAFFIC COMMITTEE, AND RECOGNIZING SOME OF THE AC- COMPLISHMENTS HE WAS INSTRUMENTAL IN BRINGING ABOUT DURING YEARS OF SERVICE. Ordinance - Authorizing a Contract Between The Baytown Area Water Authority and Lockwood, Andrews and Newnam, Inc. The contract which Council authorized at the last meeting did not include rates for surveying; therefore, a new ordinance has been drafted to correct this discrepancy. The 1976 Surveying Rates for field parties are $32.25 per hour for three -man field parties and $40.75 for four -man field parties. The Administration checked and these rates are consistent with what is being charged by other firms in the area. The Administration recommended approval of the ordinance. Councilman Kimmons moved to adopt the ordinance; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry Nays: None ORDINANCE NO. 2074 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING BAYTOWN AREA WATER AUTHORITY TO CONTRACT WITH LOCKWOOD, ANDREWS $ NEWNAM, INC. FOR ENGINEERING SERVICES TO DESIGN A WATER TREATMENT PLANT AND DISTRIBUTION SYSTEM MODIFICATIONS; REPEALING ORDINANCE NO. 2060; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Unfinished Business None. Recess and Reconvene Mayor Gentry recessed the open meeting into executive session for the discussion of personnel matters and the acquisition of land. When the open meeting reconvened, Mayor Gentry advised the audience that no business had been transacted. Minutes of the Regular Meeting - August 26, 1976 Adjourn There moved to ai follows: Ayes: Nays: r r 6225 being no further business to transact, Councilman Kimmons Ijourn; Councilman Lander seconded the motion. The vote Council members Lander, Kimmons, Kloesel, Wilbanks, Hutto and Cannon Mayor Gentry None Eile�P. Hall, Ci y'CleriC