1977 04 21 CC Minutes, Special6222
MINUTES OF A SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
April 21, 1977
The City Council of the City of Baytown, Texas, met in
special session, Thursday, April 21, 1977, at 6:00 p.m. in the
Baytown City Hall Council Chamber. The following members were
in attendance:
Jody Lander
Jack Kimmons
*Ted Kloesel
Mary E. Wilbanks
Emmett 0. Hutto
Allen Cannon
Tom Gentry
Fritz Lanham
Neel Richardson
Eileen P. Hall
Dan Savage
Councilman
Councilman
Councilman
Councilwoman
Councilman
Councilman
Mayor
City Manager
City Attorney
City Clerk
Assistant City Manager
Mayor Gentry called the meeting to order, and he asked Tom
Masterson, the City's Fiscal Advisor, to open and read the bids
for the sale of $3,336,000 Permanent Improvement Bonds, Series
1977. Prior to opening and reading the bids, Mr. Masterson ex-
plained that coupons must be in multiples of 1/8 of 1% or 1 /20
of 1% and the highest coupon rate bid may not exceed the lowest
coupon rate bid by more than 1%. The bids were opened and read
as follows:
Bidder s):
first ational Bank, Dallas
Goldman, Sachs
First National Bank, Ft. Worth
Kidder - Peabody
Maturity:
Coupon Rate:
1979
to
1984
5.25%
1985
to
1986
4.30%
1987
to
19xx
4.40%
1988
to
19xx
4.50%
1989
to
19xx
4.60%
1990
to
19xx
4.70%
1991
to
19xx
4.80%
1992
to
19xx
4.90%
1993
to
1996
5.00%
Total Interest Cost
Less Cash Premium
Net Interest Cost
Effective Interest Rate
Bidder(s):
First City National Bank
Texas Bank and Trust Com,
$2,225,021.25
37.70
$2,224,983.SS
4.8693%
of Houston, manager
pany of Dallas
Maturity: Coupon Rate:
1979
to
1985
5.50%
1986
to
19xx
4.750
1987
to
1988
4.50%
1989
to
19xx
4.55%
1990
to
19xx
4.60%
1991
to
19xx
4.70%
1992
to
1996
4.75%
r
r
Minutes of a Special Meeting - April 21, 1977
Bidder(s): (Continued)
First City National Bank of Houston
Texas Bank and Trust Company of Dallas
Total Interest Cost $2,181,553.13
Less Cash Premium None
Net Interest Cost $2,181,553.13
Effective Interest Rate 4.7742%
Bidder s
Cullen Center Bank and Trust
Rowles Winston and Company
Fred Baker and Associates
National Bank of Commerce, Dallas and Others
Maturity:
1979 to 1984
1985 to 19xx
1986 to 19xx
1987 to 19xx
1988 to 19xx
1989 to 19xx
1990 to 19xx
1991 to 19xx
1992 to 19xx
1993 to 19xx
1994 to 19xx
Coupon Rate:
5.25%
4.60%
4.30%
4.40%
4.50%
4.60%
4.70%
4.80%
4.85%
4.90%
5.00%
Total Interest Cost $2,221,036.28
Less Cash Premium None
Net Interest Cost $2,221.036.28
Effective Interest Rate 4.8607%
Bidder(s):
Merrill Lynch Pierce Fenner 4 Smith, Inc.
Bache Halsey Stuart, Inc.
Hornblower $ Weeks - Hemphill Noyes, Inc. and Others
Maturity:
1979 to 1984
1985 to 19xx
1986 to 1989
1990 to 19xx
1991 to 1992
1993 to 19xx
1994 to 1996
Total Interest Cost
Less Cash Premium
Net Interest Cost
Effective Interest Rate
Counon Rate:
5.50%
4.75%
4.50%
4.70%
4.75%
4.90%
5.00%
$2,227,353.16
None
$2,227,353.16
4.8743%
6223
6224
Minutes of a Special Meeting - April 21, 1977
Bidder s):
Republic National Bank of Dallas, Mgr.
Bank of the Southwest N.A.
First National Bank of Fort Worth
Maturity:
1979
to
1982
1983
to
19xx
1984
to
1985
1986
to
19xx
1987
to
19xx
1988
to
1989
1990
to
19xx
1991
to
19xx
1992
to
19xx
1993
to
19xx
1994
to
1996
Total Interest Cost
Less Cash Premium
Net Interest Cost
Effective Interest Rate
Coupon Rate:
5.20%
5.10%
4.20%
4.30%
4.40%
4.50%
4.60%
4.75%
4.80%
4.90%
5.00%
$2,197,418.75
None
$2,197,418.75
4.8090%
Bidder s):
Un erwoo Neuhaus Co., Inc. and Associates
Maturity: Coupon Rate:
1979
to
1984
5.30%
1985
to
19xx
4.40%
1986
to
19xx
4.30%
1987
to
19xx
4.40%
1988
to
19xx
4.50%
1989
to
19xx
4.60%
1990
to
19xx
4..70%
1991
to
19xx
4.75%
1992
to
19xx
4.80%
1993
to
19xx
4.90%
1994
to
1996
5.00%
Total Interest Cost $2,216,730.00
Less Cash Premium None
Net Interest Cost $2,216,730.00
Effective Interest Rate 4.8512%
Bidder(s):
Texas Commerce Bank N.A.
Maturity: Coupon Rate:
1979
to
1983
5.25%
1984
to
1986
4.25%
1987
to
1988
4.40%
1989
to
1990
4.60%
1991
to
1992
4.80%
1993
to
1996
5.00%
Total Interest Cost $2,206,868.75
Less Cash Premium None
Net Interest Cost $2,206,868.75
Effective Interest Rate 4.8296%
.7
6225
Minutes of a Special Meeting - April 21, 1977
Mr. Masterson explained the reason the City of Baytown bonds
were selling for a higher yield than BAWA -- the average life of City
of Baytown bonds is 12h years and the average life of BAWA bonds is
7.9 years. Mr. Masterson adjourned to tabulate the bids.
Approval of Official Statement of Bond Sale
Council had received and reviewed copies of the Official State-
ment of the bond sale prior to this meeting. Councilwoman Wilbanks
moved to approve the Official Statement; Councilman Hutto seconded
the motion. The vote follows:
Ayes: Council members Lander, Kimmons, Wilbanks, Hutto, and
Cannon
Mayor Gentry
Nays: None
Ordinance - Approving Resolution of the Board of Directors of the Bay-
town Area Water Authority Which Authorizes Issuance of BAWA Bonds
Mr. Lanham, General Manager of the Baytown Area Water Authority
explained that the successful bidder was Texas Commerce Bank, N.A.
with an Effective Interest Rate of 4'.4714$; the Board recommended ac-
aceptance of the bid of Texas Commerce Bank, N.A.
Councilman Kimmons moved to adopt the ordinance approving the
resolution of the Board of Directors of the Baytown Area Water Author -
ity that authorizes the issuance of BAWA Revenue Bonds, and to accept
the terms and conditions of said resolution. Councilman Cannon sec-
onded the motion. The vote follows:
*Councilman Kloesel present.
Ayes: Council members Lander, Kimmons, Wilbanks, Hutto, and
Cannon
Mayor Gentry
Nays: None
Abstained: Councilman Kloesel
ORDINANCE NO. 2211
AN ORDINANCE APPROVING A RESOLUTION OF THE BAYTOWN
AREA WATER AUTHORITY WHICH AUTHROIZES THE ISSUANCE
OF " BAYTOWN AREA WATER AUTHORITY WATER SUPPLY CON-
TRACT REVENUE BONDS (CITY OF BAYTOWN, TEXAS PROJECT;,
SERIES 1977 "; ACCEPTING THE TERMS AND CONDITIONS OF
SUCH RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE.
Mr. Lanham informed Council that the City has retained its A -1
rating with Moody's and A -Plus with Standard & Poors and that the
Baytown Area Water Authority had obtained an':A rating from both firms.
Resolution - Requesting that Entex, Inc. Include the City of Baytown
as Part of the City of Houston's Integrated System
At the last meeting of Council, the Administration had been in-
structed to prepare this resolution. Councilman Kimmons moved to
adopt proposed Resolution No. 572; Councilman Hutto seconded the motion.
The resolution as proposed referred to other areas and cities
within the Houston Division which were not interconnected that en-
joyed the same rates for natural gas as customers within the city limits
of the City of Houston. Mr. Howard Bell, Vice President and General
Manager of the Texas Coast Division, explained that, to his knowledge,
there were no cities on the Houston Division that would fall into this
catagory, but there were rural areas that, according to the Railroad
Commission's regulations were charged the same rates as the City of
Houston, the nearest incorporated area. The City Attorney suggested
that the resolution could be corrected to read, "areas and /or cities."
6226
Minutes of a Special Meeting - April 21, 1977
Houston and Baytown rates have been the same since 1968.
Prior to that time the rates for the two cities were not the
same. At the present time, Houston only has a cost of service
adjustment for industrial consumers. Mr. Bell went on to point
out that Entex, Inc., as a utility company, is entitled to earn
a rate of return based upon the distribution system used to serve
the City of Baytown. The Railroad Commission has consistently
looked at distribution systems when determining a rate of return.
Cases have gone through the courts on appellate action from the
Railroad Commission holding that the company is entitled to
rate of return based upon the distribution system used to service
that area. In 1968, Entex simply determined that the Company
could, at that time, request the same rates in Baytown as were
being requested in Houston, but this did not mean that the Com-
pany was not entitled to more. The gas distribution system for
the Texas Coast Division is composed of a series of small systems
serving various communities, and Entex is entitled to receive a
rate of return based upon the adjusted value of invested capital
in those communities -- this is what the Entex request is based
upon. In fact, there are no interconnecting lines between the
City of Baytown and any other city in the Texas Coast Division.
The Texas Coast Division is divided into three Districts -- the
Bayporte District, Texas City- Freeport District, and the Rich-
mond- Rosenburg District. In these districts there are series of
local offices which serve the various distribution systems, but
the Texas Coast Division is in no way connected with the Houston
Division. Properties are operated differently in the Texas Coast
Division than is the Houston Division. Houston has one downtown
office with a series of service centers spread out around the
metropolitan area and out of these service centers come special-
ized functions; that is, one center may be responsible for cus-
tomer service while another may be responsible for construction.
Whereas, inthe Texas Coast Division all services are provided
through one office as in Baytown.
Mr. Bell pointed out that even if this resolution were ap-
proved, this would have no bearing on the pending rate increase,
because the law provides that Entex is entitled to earn a rate
of return on the Baytown distribution system. Since the Company
needs a rate increase in Baytown, Entex would have to pursue the
request for increase. If there were other cities included in
the Baytown distribution system, then the company could consider
Baytown separately, as in the case of the LaPorte Distribution
System where four basic cities are involved. Two cities in this
system granted the original filing by-Entex; two cities did-not
grant the original filing, and Entex is now requesting the 8%
rate of return provided by law in those vities. Therefore, if
their request were denied in Baytown, Entex would have the al-
ternative to file for the 8% rate of return provided by the law.
Mayor Gentry commented that based on what Mr. Bell had
stated, the rate request would be pursued regardless of what
action Council might take•'regarding.the resolution; therefore,
Council needed to consider reconvening the hearing.
Based on what Mr. Bell stated regarding the fact that the
resolution would have no hearing on the request for increase
and that the Railroad Commission has in the past held that each
distribution system will be considered separately, Councilman
Hutto moved to table the resolution. Councilman Lander seconded
the motion. The vote follows:
Ayes: Council members Lander, Kimmons, Kloesel, Wilbank,
and Hutto
Mayor Gentry
Nays: Councilman Cannon
6227
Minutes of a Special Meeting - April 21; 1977
Award Bid - Sale of $3,665,000 Permanent Improvement Bonds --
Mr..Masterson reported to Council that the successful bidder
was First City National Bank of Houston with an Effective Interest
Rate of 4.77428 and recommended acceptance.
Councilwoman Wilbanks moved to adopt the ordinance; Council -
amn Kimmons seconded the motion. The vote follows:
Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks,
Hutto, and Cannon
Mayor Gentry
Nays: None
THE STATE OF TEXAS X
COUNTIES OF HARRIS AND CHAMBERS 7
CITY OF BAYTOWN X
The City Council of the City of Baytown, Texas, convened in
special meeting, open to the public, on the 21st day of April,
1977, at the City Hall, and the roll was called of the duly con-
stituted officers and members of the City Council and the City
Clerk of the City, to wit:
Tom Gentry Mayor
Jody Lander Mayor Pro Tem
Ted Kloesel Councilman
Emmett Hutto Councilman
E. C. Kimmons, Jr. Councilman
Allen Cannon Councilman
Mary E. Wilbanks Councilwoman
Eileen P. Hall City Clerk
and all of said persons were present, except the following absentees:
None , thus constituting a quorum. Where-
upon, among other usiness, the following was transacted at said
meeting: a written ordinance entitled:
ORDINANCE AUTHORIZING ISSUANCE OF $3,665,000
PERMANENT IMPROVEMENT BONDS, SERIES 1977; APPROPRIATING
$3,665,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS
PROJECTS; 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 discussion,
the motion, carrying with it the passage of the Ordinance, pre-
vailed and carried by the following vote:
AYES: All members of the City Council shown
present above voted "Aye ".
NAYS: None.
The Mayor thereupon announced that the Ordinance had been duly
and lawfully adopted. The Ordinance thus adopted follows:
6228
Minutes of a Special Meeting - April 21, 1977
ORDINANCE NO. 2210
ORDINANCE AUTHORIZING ISSUANCE OF $3,665,000
PERMANENT IMPROVEMENT BONDS, SERIES 1977; APPROPRIATING
$3,665,000 OF PROCEEDS OF SALE THEREOF FOR VARIOUS
PROJECTS; AND CONTAINING OTHER PROVISIONS RELATING THERETO
THE STATE OF TEXAS X
COUNTIES OF HARRIS AND CHAMBERS
CITY OF BAYTOWN
WHEREAS, the bonds hereinafter authorized were duly and
favorably voted at an election held in the City of Baytown, Texas,
(the "City "), on the 27th day of May, 1975; and
WHEREAS, the City Council now deems it advisable to issue,
sell, and deliver $3,665,000 bonds for the purposes shown in the
following schedule as a portion and the third installment of
$11,545,000 bonds noted at said election:
WHEREAS, the City Council has determined that the remaining
$2,880,000 authorized bonds may be issued, sold, and delivered at
a later date; and
WHEREAS, the City Council has caused a notice of sale of such
bonds to be published in the TEXAS BOND REPORTER which is a publi-
cation carrying municipal bond notices and devoted primarily to
financial news and in the BAYTOWN SUN which is the official news-
paper of the City, said notice having been published in each said
publication more than ten days prior to the date set for the sale
of said bonds; and
WHEREAS, bids have been received pursuant to said publica-
tions of said notice and the City Council desires to authorize the
issuance of said bonds and award the sale thereof on the basis of
the best bid received;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN THAT:
Section l(a). The ordinance heretofore adopted by the City
Council on the 30th day of April, 1975, authorizing the issuance
of the bonds described in the preamble of this ordinance and cal-
ling an election therefore is hereby in all things ratified and
confirmed.
Section 1(b). All the matters and facts recited in the pre-
amble Eereof are hereby officially found to be true and correct.
Section 2. The City's negotiable, serial, coupon bonds to
be designated CITY OF BAYTOWN, TEXAS, PERMANENT IMPROVEMENT BONDS,
SERIES 1977 (hereinafter called the "Bonds "), are hereby autho-
rized to be issued and delivered in the aggregate,principal amount
of $3,665,000 for the following purposes:
Amount
Amount
Amount
Previously
Being
Unissued
Purpose
Authorized
Issued
Issued
Balance
Streets
$ 2— , 30b,000
T-78T0,000
260,000
TT–,200,00
Traffic Signal
650,000
-0-
650,000
-0-
Drainage
22350,000
1,615,000
285,000
450,000
Waterworks Sys.
850,000
635,000
215,000
-0-
San. Sew. Sys.
3,000,000
500,000
1,500,000
1,000,000
Park
1,300,000
315,000
755,000
230,000
Library Bldg.
_ 1,095,000
11,545,000
1 095,000
$5,000,000
-0-
$3,665,000
-0-
2,880,000
WHEREAS, the City Council has determined that the remaining
$2,880,000 authorized bonds may be issued, sold, and delivered at
a later date; and
WHEREAS, the City Council has caused a notice of sale of such
bonds to be published in the TEXAS BOND REPORTER which is a publi-
cation carrying municipal bond notices and devoted primarily to
financial news and in the BAYTOWN SUN which is the official news-
paper of the City, said notice having been published in each said
publication more than ten days prior to the date set for the sale
of said bonds; and
WHEREAS, bids have been received pursuant to said publica-
tions of said notice and the City Council desires to authorize the
issuance of said bonds and award the sale thereof on the basis of
the best bid received;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN THAT:
Section l(a). The ordinance heretofore adopted by the City
Council on the 30th day of April, 1975, authorizing the issuance
of the bonds described in the preamble of this ordinance and cal-
ling an election therefore is hereby in all things ratified and
confirmed.
Section 1(b). All the matters and facts recited in the pre-
amble Eereof are hereby officially found to be true and correct.
Section 2. The City's negotiable, serial, coupon bonds to
be designated CITY OF BAYTOWN, TEXAS, PERMANENT IMPROVEMENT BONDS,
SERIES 1977 (hereinafter called the "Bonds "), are hereby autho-
rized to be issued and delivered in the aggregate,principal amount
of $3,665,000 for the following purposes:
6229
Minutes of a Special Meeting - April 21, 1977
(1) $260,000 for constructing permanent street
improvements for the City;
(2) $650,000 for the construction and improvement
of the roads, bridges, and streets of the City, to -wit:
signals for control of traffic thereon;
(3) $285,000 for constructing permanent drainage
improvements for the City;
(4) $215,000 for constructing improvements to the
City's waterworks system;
(5) $1,500,000 for constructing improvements to
the City's sanitary sewer system; and
(0) $755,000 for purchasing and /or improving lands
for park purposes for the City.
Section 3. The Bonds shall be dated May 1, 1977, shall be
numbered consecutively from 1 through 733, and shall be in the
denomination of $5,000 each, and shall mature serially on Feb-
ruary 1 of each of the years, and in the amounts, respectively,
as set forth in the following schedule:
YEAR
AMOUNT
YEAR
AMOUNT
1979
$ 850
1988
$200,000
1980
85,000.
1989
200,000
1981
125,000
1990
200,000
1982
125,000
1991
250,000
1983
125,000
1992
250,000
1984
125,000
1993
350,000
1985
145,000
1994
350,000
1986
175,000
1995
350,000
1987
175,000
1996
350,000
The Bonds may be redeemed prior to their scheduled maturities, at
the option of the City, on the dates stated and in the manner pro -
cided in the FORM OF BOND set forth in this ordinance.
Section 4. The Bonds shall bear interest per annum at the
following rates, respectively, to -wit:
Bonds
maturing
1979
through
1985,
5.50%
Bonds
maturing
1986
through
19xx,
4.75%
Bonds
maturing
1987
through
1988,
4.50%
Bonds
maturing
1989
through
19xx,
4.55%
Bonds
maturing
1990
through
19xx,
4.60%
Bonds
maturing
1991
through
19xx,
4.70%
Bonds
maturing
1992
through
1996,
4.75%
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.
Section 5. The Bonds, and the interest coupons appertaining
thereto, shall be payable, shall have the characteristics, and shall
be signed and executed (and the Bonds shall be sealed), all as pro-
vided and in the manner indicated in the FORM OF BOND set forth in
this ordinance.
Section 6. The form of the Bonds, including the form of reg-
istration certificate of the Comptroller of Public Accounts 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 initially to each of the Bonds, shall be, respec-
tively, substantially as follows:
6230
Minutes of a Special Meeting - April 21, 1977
FORM OF BOND:
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF HARRIS AND CHAMBERS
CITY OF BAYTOWN, TEXAS
PERMANENT IMPROVEMENT BOND
SERIES 1977
$5,000
ON FEBRUARY 1, 19 , 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
February 1,-1978, and semiannually thereafter on each August 1
and February 1 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 CITIZENS NATIONAL BANK $ TRUST CO., Baytown, 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 May 1, 1977, numbered consecutively from 1 through
733, in the denomination of $5,000 each, issued in the aggregate
principal amount of $3,665,000 for the following purposes:
(1) $260,000 for constructing permanent street improve-
ments for the City;
(2) $650,000 for the construction and improvement of
the roads, bridges, and streets of the City, to wit:
signals for control of traffic thereon;
(3) $285,000 for constructing permanent drainage im-
provements for the City;
(4) $215,000 for constructing improvements to the
City waterworks system;
(5) $1,500,000 for constructing improvements to the
City's sanitary sewer system; and
(6) $755,000 for purchasing and /or improving lands
for park purposes for the City;
in accordance with Chapters 1 and 7 of Title 22, Revised Civil
Statutes of Texas, as amended, and pursuant to an election held
within the City on the 27th day of May, 1975, and authorized pur-
suant to an ordinance duly adopted by the City Council of the City
entitled ORDINANCE AUTHORIZING ISSUANCE OF 43,665,000 PERMANENT
IMPROVEMENT BONDS, SERIES 1977; APPROPRIATING $3,665,000 OF PRO-
CEEDS OF SALE THEREOF FOR VARIOUS PROJECTS; AND CONTAINING OTHER
PROVISIONS RELATING THERETO and finally passed on the 21st day of
April, 1977, this Bond being one of a series of Bonds which con-
stitutes a portion and the third installment of $11,545,000 bonds
voted at the aforesaid election.
ON FEBRUARY 1, 1992, OR ON ANY INTEREST PAYMENT DATE THERE-
AFTER, the outstanding Bonds of this series may be redeemed 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. At least thirty days prior 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 pub-
lished in the City of New York, New York, or in the City of Austin,
Texas. By the date fixed for any such redemption, due provision
shall be made with the paying agent for the payment of the required
redemption price. If such written notice of redemption is pub-
lished and if due provision for such payment is made, all as pro-
vided above, the Bonds which are to be so redeemed thereby auto-
matically shall be redeemed prior to their scheduled maturities;
6231
Minutes of a Special Meeting - April 21, 1977
and they shall not be regarded as being outstanding except for the
purpose of being paid by the paying agent with the funds so pro-
vided for such payment.
IT IS HEREBY certified, recited, and covenanted that this
Bond has been duly and validly voted, authorized, issued, and de-
livered; 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 annual ad valorem taxes suf-
ficient to provide for the payment of the interest on and principal
of this Bond, as such interest comes due and such principal matures,
have been levied and ordered to be levied against all taxable prop-
erty in the City and have been pledged for such payment within the
limits prescribed by law.
IN WITNESS WHEREOF, this Bond and the interest coupons ap-
pertaining hereto have been signed with the facsimile signature
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:
Mayor
CITY OF BAYTOWN, TEXAS
City Clerk
CITY OF BAYTOWN, TEXAS
(Seal)
r FORM OF REGISTRATION CERTIFICATE:
1 COMPTROLLER'S REGISTRATION CERTIFICATES I REGISTER NO.
11 I hereby certify that this Bond has been examined, certified as
to validity, and approved by the Attorney General of the State of
Texas, and that this Bond has been registered by the Comptroller of
Public Accounts of the State of Texas.
WITNESS my signature and seal this
(SEAL) Comptroller of Public Accounts o
the State of Texas
FORM OF INTEREST COUPON:
NO. $
ON 1, 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 in-
terest 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 presentation and
surrender of this interest coupon, at the CITIZENS NATIONAL BANK
g TRUST CO., Baytown, Texas, said amount being interest due that
day on the Bond bearing the number hereinafter designated of that
issue of CITY OF BAYTOWN, TEXAS, PERMANENT IMPROVEMENT BONDS, SERIES
1977, dated May 1, 1977. Bond No.
xxxxxxxxxxx xxxxxxxxxxxx
City Clerk Mayor
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Minutes of a Special Meeting - April 21, 1977
Section 7. A special fund or account, to be designated the
"City o Baytown, Texas, Permanent Improvement Bonds, Series 1977,
Interest and Sinking Fund" (hereinafter called the "Interest and
Sinking Fund "), is hereby created and shall be established and
maintained by the City at an official depository bank of the City.
The Interest and Sinking Fund shall be kept separate and apart
from all other funds and accounts of the City and shall be used
only for paying the interest on and principal of the Bonds. All
ad valorem taxes levied and collected, to the credit of the In-
terest and Sinking Fund. During each year while any of the Bonds
or interest coupons appertaining thereto are outstanding and un-
paid, the City Council of the City shall compute and assertain a
rate and amount of ad valorem tax which will be sufficient to
raise and produce the money required to pay the interest on the
Bonds as such interest comes due and to provide and maintain a
sinking fund adequate to pay the principal of the Bonds as such
principal matures but never less than 20 of the original principal
amount of the Bonds as a sinking fund each year; and said tax
shall be based on the latest approved tax rolls of the City, with
full allowance being made for tax delinquencies and the cost of tax
collection. Said rate and amount of ad valorem tax are hereby
levied, and are hereby ordered to be levied, against all taxable
property in the City for each year while any of the Bonds or in-
terest coupons appertaining thereto are outstanding and unpaid;
and said tax shall be assessed and collected each such year and
deposited to the credit of the Interest and Sinking Fund. Said
ad valorem taxes sufficient to provide for the payment of the
interest on and principal of the Bonds, as such interest comes due
and such principal matures, are hereby pledged for such payment
within the limits prescribed by law.
Section 8. Immediately following delivery of the Bonds to
the purchaser thereof, the accrued interest and premium, if any,
shall be deposited in the Interest and Sinking Fund.
Section 9. There is hereby appropriated out of the proceeds
of sale of the Bonds authorized by this ordinance the following
sums for the following indicated purposes, respectively:
(1) $260,000 for constructing permanent street im-
provements for the City;
(2) $650,000 for the construction and improvement
of the roads, bridges, and streets of the City, to -wit:
signals for control of traffic thereon;
(3) $285,000 for constructing permanent drainage
improvements for the City;
(4) $215,000 for constructing improvements to the
City's waterworks system;
(5) $1,500,000 for constructing improvements to the
City's sanitary sewer system; and
(6) $755,000 for purchasing and /or improving lands
for park purposes for the City.
It is hereby estimated that the maximum cost, respectively, for
each of the aforesaid projects will not exceed the amount named
above for each such project, respectively; and there is no neces-
sity for any down payment of these projects; and no such down
payment is hereby ordered to be made. It is hereby officially
found and determined (1) that the probable period of usefulness
of each of the aforesaid projects is forty years, and (2) that
all of said projects are related projects within the meaning of
Section 61 of the Home Rule Charter of the City.
Section 10. Out of the proceeds of sale of the Bonds autho-
rized y t is ordinance the following sums are hereby ordered to
be used and expended for the following indicated purposes,
respectively:
(1) $260,000 for constructing permanent street im-
provements for the City;
(2) $650,000 for the construction and improvement
of roads, bridges, and streets, of the City, to -wit:
signals for control of traffic thereon;
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Minutes of a Special Meeting - April 21, 1977
(3) $285,000 for constructing permanent drainage
improvements for the City;
(4) $215,000 for constructing improvements to the
City's waterworks sustem;
(5) $1,500,000 for constructing improvements to
the City sanitary sewer system; and
(6) $755,000 for purchasing and /or improving lands
for park purposes for the City;
as provided in the ordinance adopted on the 30th day of April,
1975, calling the bond election which was held in the City on the
27th day of May, 1975.
Section 11. The City certifies that based upon all facts,
estimates and circumstances now known or reasonably expected to be
in existence 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(c)(2) of the In-
ternal Revenue Code of 1954, as amended, and the temporary and pro-
posed regulations hereto fore prescribed thereunder,- including,
without limitation, Sections 1.103 -13 and 1.103 -14 of the proposed
regulations published in the Federal Re ister on May 3, 1973.
Furthermore, all officers, employees and 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 pro-
ceeds of the. Bonds, regulate investments of 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(c) of the
Internal Revenue Code of 1954, as amended, and regulations prescribed
from time to time thereunder.
Section 12. The Mayor of the City is hereby authorized to have
control of the Bonds and all necessary records and proceedings per-
taining 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. Upon registration of the Bonds, the Comptroller
of Public Accounts (or a deputy designated in writing to act for the
Comptroller) shall manually sign the Comptroller's Registration Cer-
tificate prescribed herein to be printed and endorsed on each Bond;
and the seal of the Comptroller shall be impressed, or placed in
facsimile, on each of the Bonds.
Section 13. The Bonds are hereby sold and shall be delivered
to First City National Bank of Houston for the par value thereof and
accrued interest thereon to date of delivery, plus a premium of
$ -0- , subject to the unqualified approving opinions, as to the
legality of the Bonds, of the Attorney General of the State of Texas
and of Vinson & Elkins, 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 14. The approving opinion of Vinson & Elkins, 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 15. The Mayor and all other appropriate officers of
the City are hereby authorized and directed to do any and all things
necessary or convenient to carry out the provisions of this ordinance.
Section 16. This ordinance was read once by the City Council
and shall take effect immediately.
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Minutes of a Special Meeting - April 21, 1977
Section 17. It is hereby officially found and determined that
the need of the City for such financing creates an emergency 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 ordinance; and the NOTICE OF
MEETING relating to said meeting and heretofore posted by the City
Clerk, and the posting thereof, is hereby authorized, approved,
and ratified.
PASSED, AUTHENTICATED, AND APPROVED this 21st day of April,
1977.
Mayor Tom Gentry
CITY OF BAYTOWN, TEXAS
ATTEST:
City Clerk
CITY OF BAYTOWN, TEXAS
(Seal)
Date - Reconvene Hearing on Entex Request
Since representatives from Entex were present, Mayor Gentry
asked that Council determine when the hearing on the Entex request
should be reconvened. The representatives from Entex who were
present requested that the hearing be reconvened prior to May 1.
Councilman Kimmons suggested that the meeting be reconvened
April 28. Council voiced no objections to reconvening the hearing
on that date.
There being no further business to transact, Councilman
Kimmons moved to adjourn. Councilman Lander seconded the motion.
The vote was unanimous to adjourn.
ETLEEN P. HALL, City Clerk