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