1978 09 14 CC Minutes80914 -1
MINUTES OF THE REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS
September 14, 1978
The City Council of the City of Baytown, Texas, met in
regular session Thursday, September 14, 1978, at 6:30 p.m.
in the Council Chamber of the Baytown City Hall. The following
members were in attendance:
Jody Lander
Jimmy Johnson
Ted Kloesel
Mary E. Wilbanks
Eileen Caffey
Allen Cannon
Emmett O. Hutto
Fritz Lanham
Dan Savage
Scott Bounds
Karen Petru
Absent: Eileen P. Hall
Councilman
Councilman
Councilman
Councilwoman
Councilwoman
Councilman
Mayor
City Manager
Assistant City Manager
City Attorney
Deputy City Clerk
City Clerk
Mayor Hutto called the meeting to order and the invocation
was offered by Reverend Billy Joe Tate of the Central Baptist
Church.
Approve Minutes
Councilwoman Wilbanks moved for approval of the minutes
of the regular meeting of August 24, 1978, and the special
meeting of August 31, 1978, and ratification of actions
taken concerning each of the matters listed on the agendas
of said meetings; Councilwoman Caffey seconded the motion.
The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
Ordinance - Approving a Resolution of the Baytown Area Water
Authority Which Authorizes the Issuance of BAWA Water
Supply Contract Revenue Bonds (City of Baytown, Texas
Project) Series 1978, and Accept Terms and Conditions
of Said Resolution
Mr. Bob Gillette, President of the Baytown Area Water
Authority Board, explained that at a previous bid opening
only one bid was received for the sale of these bonds.
Therefore, the bond sale was readvertised and bids were
opened at 5:00 p.m. Five bids were received for the purchase
of $11,850,000 worth of Baytown Area Water Authority Water
Supply Contract Revenue Bonds with the effective interest
rate ranging from 5.7756% to 6.3025 %.
Tom Masterson, of Underwood, Neuhaus, explained that
the best bid was received from Donaldson, Lufkin, and Jenrette
of New York City at an effective interest rate of 5.77 %.
Mr. Masterson explained that this bidding reflects two
things: (1) A maturity schedule which has been reduced and
shortened by five years from the maturity schedule originally
offered, and (2) there has been a good bond market within
the last few days. Mr. Masterson was very pleased with the
5. 771,lo interest rate.
In response to a question from Councilman Kloesel, Mr.
Masterson explained that the time table is to the year 2000
80914 -2
Minutes of the Regular Meeting - September 14, 1978
which is a period of 20 years following the date on which
the contract with the City of Houston becomes effective.
Councilman Lander inquired about the purpose of the
cash premium. Mr. Masterson explained that the premium is
the tie - breaker in the event that two bidders should select
the same sets of interest rates over the life of the issue.
The purpose of the premium is to resolve the tie in such an
event. The Administration recommended approval of the
ordinance.
Councilwoman Wilbanks moved for adoption of the ordinance;
Councilman Lander seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2531
AND ATTACHED RESOLUTION & CERTIFICATE
AN ORDINANCE APPROVING A RESOLUTION OF THE BAYTOWN AREA
WATER AUTHORITY WHICH AUTHORIZES THE ISSUANCE OF " BAYTOWN
AREA WATER AUTHORITY WATER SUPPLY CONTRACT REVENUE BONDS
(CITY OF BAYTOWN, TEXAS PROJECT) SERIES 1978 "; ACCEPTING THE
TERMS AND CONDITIONS OF SUCH RESOLUTION; AND PROVIDING FOR
AN EFFECTIVE DATE HEREOF.
RESOLUTION AUTHORIZING ISSUANCE OF
BAYTOWN AREA WATER AUTHORITY
WATER SUPPLY CONTRACT REVENUE BONDS
(CITY OF BAYTOWN, TEXAS PROJECT) SERIES 1978
THE STATE OF TEXAS
COUNTIES OF HARRIS AND CHAMBERS
BAYTOWN AREA WATER AUTHORITY
WHEREAS, the Baytown Area Water Authority (hereinafter
called the "Authority ") was organized, created, and established
pursuant to Chapter 600, Acts of the 63rd Legislature of the
State of Texas, Regular Session, 1973 (hereinafter called
the "Authority Act ") ;
WHEREAS, the Authority has the right, power, and authority
to enter into contracts of not exceeding 40 years duration
with persons, corporations (public or private), municipal
corporations, including the City of Baytown (hereinafter
called "Baytown "), political subdivisions of the State of
Texas, and others, on such terms and conditions as the Board
of Directors of the Authority (hereinafter called the "Board ")
may deem desirable, fair, and advantageous for the performance
of its rights, powers, and authorities under the Authority
Act, including the right, power, and authority to acquire
surface and /or underground water supplies from sources both
within and without the boundaries of the Authority and to
conserve, store, transport, treat, purify, distribute, sell,
and deliver water, both surface and underground, to such
persons and other parties within the boundaries of the
Authority;
WHEREAS, the Authority has entered into a "Wholesale
Water Supply Contract - Untreated Water," dated as of November
1, 1976, with the City of Houston (hereinafter called "Houston "),
for the purchase of quantities of untreated surface water
from Houston (hereinafter called the "Houston Contract ");
80914 -3
Minutes of the Regular Meeting - September 14, 1978
WHEREAS, the Authority has also entered into a "Water
Supply Contract - Treated Water," dated January 31, 1977,
with Baytown for the sale and delivery of treated water to
Baytown (hereinafter called the "Baytown Contract "), which
was approved at an election within Baytown on January 15,
1977;
WHEREAS, on April 21, 1977, the City Council of Baytown,
by its Ordinance No. 2211, approved a Resolution Authorizing
Issuance of Baytown Area Water Authority Water Supply Contract
Revenue Bonds (City of Baytown, Texas Project), Series 1977
(hereinafter called the "1977 Bond Resolution "); and
WHEREAS, in accordance with the Baytown Contract, the
Authority has duly authorized, sold, and delivered that
issue of "Baytown Area Water Authority Water Supply Contract
Revenue Bonds (City of Baytown, Texas Project), Series
1977 ", dated May 1, 1977, in the aggregate principal amount
of $1,250,000 (hereinafter called the "Series 1977 Bonds ")
pursuant to the 1977 Bond Resolution adopted by the Board on
April 21, 1977 for the purpose of acquiring funds to make,
purchase, construct, lease, or otherwise acquire certain
water supply, treatment, and distribution facilities defined
as the "Project" in the Baytown Contract (hereinafter sometimes
called the "Project "), and the Series.1977 Bonds are the
only bonds ever issued by the Authority;
WHEREAS, pursuant to law and the 1977 Bond Resolution,
the Authority is authorized to issue, upon the request of
Baytown, Additional parity bonds in such amounts as are
required for the purpose of acquiring funds to (i) complete
making, purchasing, constructing, leasing, or acquiring the
Project; (ii) enlarge, expand, or modify the Project; (iii)
reconstruct the Project; or (iv) refund any bonds, which
additional bonds, when issued and delivered, shall be payable
from and secured by a first lien on and pledge of the Pledged
Revenues (hereinafter defined) (which shall include additional
payments sufficient to enable the Authority to comply with
all terms and conditions of the 1977 Bond Resolution with
respect to the issuance of such additional bonds), in the
same manner and to the same extent as any previously outstanding
Series 1977 Bonds; and all of the Series 1977 Bonds and any
such additional bonds shall in all respects be on a parity
and of equal dignity;
WHEREAS, Section 13 (b) of the 1977 Bond Resolution
provides that no such installment or series of additional
bonds shall be issued unless:
(i) A certificate is executed by the President and
Secretary of the Board to the effect that no default exists
in connection with any covenants or requirements of any
outstanding Series 1977 Bonds, and that the Debt Service
Fund contains the amount then required to be on deposit
therein;
(ii) Baytown is not in default with respect to any
series of bonds or other debt issued by it; and
(iii) The principal of and installment or series of
Additional Bonds are payable on the same semiannual interest
dates and annual principal dates as the Outstanding Bonds,
and such requirements can be met;
WHEREAS, it is necessary to issue additional bonds at
this time to complete the making, purchasing, constructing,
leasing, or acquiring the Project;
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Minutes of the Regular Meeting - September 14, 1978
WHEREAS, on , the City Council of
Baytown, by its Ordinance No. approved the
issuance of The bonds authorized to be issued hereby (hereinafter
defined as the "Series 1978 Bonds ") and the terms and conditions
of this Resolution (hereinafter called the "Resolution ");
WHEREAS, this preamble shall constitute an integral
part of this Resolution; and
WHEREAS, the Board, having taken all action necessary
to be done prior to the issuance of the Series 1978 Bonds,
now deems it necessary and advisable to do so.
IT IS, THEREFORE, RESOLVED BY THE BOARD OF DIRECTORS OF
THE BAYTOWN AREA WATER AUTHORITY THAT:
Section 1. Designation, Amount, and Purpose of the Bonds.
The Authority's negotiable bonds are hereby authorized to be
issued in the aggregate principal amount of Eleven Million
Eight Hundred Fifty Thousand Dollars ($11,850,000) to be
called "Baytown Area Water Authority Supply Contract Revenue
Bonds (City of Baytown, Texas Project) Series 1978" (hereinafter
called the "Series 1978 Bonds ") for the purpose of acquiring
funds to complete making, purchasing, constructing, leasing,
or acquiring water supply, treatment, and distribution
facilities defined as the "Project" in the Baytown Contract.
Section 2. Date, Denomination, Numbers, and Maturities
of the Series 1978 Bonds. The Series 1978 Bonds shall be
dated September 1, 1978, shall be in the denomination of
$5,000 each, shall be numbered consecutively from one upward,
and shall mature serially on the first day of May in each of
the years and in the amounts, respectively, as set forth in
the following schedule, unless theretofore called for redemption
as provided in this Resolution:
Years of
Maturity
Annual Principal
Amounts
Years of Annual Principal
Maturity Amounts
1981
$125,000
1991
$500,000
1982
125,000
1992
675,000
1983
150,000
1993
750,000
1984
150,000
1994
825,000
1985
175,000
1995
900,000
1986
225,000
1996
975,000
1987
275,000
1997
1,050,000
1988
350,000
1998
1,150,000
1989
400,000
1999
1,250,000
1990
450,000
2000
1,350,000
Section 3. Interest on the Series 1978 Bonds.
The Series 1978 Bonds shall bear interest from the date
thereof to their scheduled maturities or redemption at the
rates of interest, as set forth in the following schedule,
payable on May 1, 1979, and semiannually thereafter on
November 1 and May 1 of each year while the Series 1978
Bonds are outstanding:
Years of Interest Years of Interest
Maturity Rates Maturity Rates
1981
1991
1982
1992
1983
1993
1984
1994
1985
1995
1986
1996
1987
1997
1988
1998
1989
1999
1990
2000
N
la
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Minutes on the Regular Meeting - September 14, 1978
Such interest shall be evidenced by interest coupons which
shall initially appertain to the Series 1978 Bonds and shall
be payable in the manner provided in the FORM OF SERIES 1978
BOND set forth in Section 5 hereof.
Section 4. General Characteristics and Execution
of the Series 1978 Bonds. The Series 1978 Bonds and the
interest coupons appertaining thereto shall be issued, shall
be payable, may be redeemed prior to their scheduled maturities,
shall have the characteristics, and shall be signed, executed,
(and the Series 1978 Bonds shall be sealed), all as provided
and in the manner indicated in the FORM OF SERIES 1978 BOND
set forth in Section 5 hereof. In case any officer of the
Authority whose facsimile signature shall nevertheless be as
valid and sufficient for all purposes as if such offices had
remained in office until delivery of such Series 1978 Bonds.
Section 5. Form of the Series 1978 Bonds. The Form of
the Series 1978 Bonds, including the form of Registration
Certificate of the Comptroller of Public Accounts of the
State of Texas to be printed and endorsed on each of the
Series 1978 Bonds and the form of the interest coupons which
shall appertain and be initially attached to each of the
Series 1978 Bonds shall be, respectively, substantially as
follows, with necessary and appropriate variations, omissions,
and insertions as permitted or required by this Resolution:
NO.
FORM OF THE SERIES 1978 BOND:
$5,000
United States of America
State of Texas
BAYTOWN AREA WATER AUTHORITY
WATER SUPPLY CONTRACT REVENUE BOND
(CITY OF BAYTOWN, TEXAS PROJECT)
SERIES 1978
ON May 1, , the BAYTOWN AREA WATER AUTHORITY
(the "Authority "), for value received, hereby promises to
pay to the bearer hereof the principal amount of
FIVE THOUSAND DOLLARS
and to pay interest thereon, from the date hereof to maturity
or redemption, at the rate of % per annum, evidenced
by interest coupons payable on May 1, 1979, and semiannually
thereafter on November 1 and May 1 of each year while this
Bond is outstanding; provided, however, that such principal
and interest are payable solely from the sources and in the
manner herein provided, and from no other source.
THE PRINCIPAL of this Bond and the interest coupons
appertaining hereto shall be payable to the 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, as the
case may be, at the following, which shall be the Paying
Agent (the "Paying Agent ") for this series of Bonds:
CITIZENS BANK & TRUST CO. OF BAYTOWN
BAYTOWN, TEXAS
The Authority may at any time or from time to time, with the
approval of the City of Baytown, Texas ( "Baytown "), appoint
one or more other Paying Agents for the Bonds (hereinafter
defined) in the manner and subject to the conditions set
forth in the Resolution (hereinafter defined).
Minutes of the Regular Meeting - September 14, 1978
THIS BOND is one of a series of Bonds dated as of
September 1, 1978 (the 'Bonds "), authorized and issued in
the aggregate principal amount of $11,850,000 for the purpose
of acquiring funds to complete making, purchasing, constructing,
leasing, or acquiring certain water supply, treatment, and
distribution facilities defined as the "Project" in the
Water Supply Contract - Treated Water, dated January 31,
1977 (the "Contract "), between the Authority and Baytown and
approved at an election within Baytown on January 15, 1977.
THE BONDS are additional parity revenue bonds as defined
and permitted in the resolution adopted by the Board of
Directors of the Authority on April 21, 1977 (the "1977 Bond
Resolution "), authorizing the issuance of that issue of
"Baytown Area Water Authority Water Supply Contract Revenue
Bonds (City of Baytown, Texas Project), Series 197711, dated
April 1, 1977, in the original principal amount of $1,250,000
(the "Series 1977 Bonds ").
IN THE CONTRACT and pursuant to Ordinance No. 78-
of the City Council of Baytown, in which Baytown
approved the issuance of the Bonds and the terms and conditions
of the resolution of the Board of Directors of the Authority
( "the Board "), dated authorizing the
issuance of the Bonds (the "Resolution "), Baytown has agreed
and is unconditionally obligated to make payments of Pledged
Revenues into the "Baytown Area Water Authority Water Supply
Contract Revenue Bonds (City of Baytown, Texas Project)
Series 1978 - Debt Service Fund: (the "Debt Service Fund ")
kept by the Paying Agent, all as defined in the Resolution,
in addition to and on a parity with payments to be made with
respect to the Series 1977 Bonds. The principal of and
interest on this Bond, and other Bonds of the series of
which it is a part (equally, ratibly, and in all manner on a
parity with the Series 1977 Bonds), are payable solely from,
and secured by a first lien on and pledge of, the payments
of Pledged Revenues or, in certain instances as described in
the Resolution, from amounts attributable to the proceeds of
the Bonds, as hereinafter described. Pursuant to the Contract,
Pledged Revenues include the payments for treated water to
be made by Baytown to the Paying Agent for deposit into the
Debt Service Fund and pledged in the Resolution for payment
of the principal and interest on the Bonds issued pursuant
to the terms of the Contract, the source of which shall
include any and all available sources that Baytown may
pledge toward such payments, including gross revenues of its
waterworks and sanitary sewer system.
THE HOLDER HEREOF shall never have the right to demand
payment of this obligation from monies derived or to be
derived by taxation or any other revenues of the Authority
other than the Pledged Revenues as described in this Bond
or, in certain instances as described in the Resolution,
from amounts attributable to proceeds of the Bonds. Except
for the lien on and the assignment and pledge of the Pledged
Revenues, neither the Project not any other property of
Baytown or of the Authority is encumbered by any lien for
the benefit of the holder of this Bond. The Bonds of this
series are special obligations payable as aforesaid and
shall not be considered as general obligations of the governing
body of the Authority, the Authority, the State of Texas, or
any municipalities or subdivisions thereof. No entity other
than the Authority is obligated, directly, indirectly, or
contingently, to pay the Bonds of this series from any other
source whatsoever.
ON NOVEMBER 1, 1993, or on any interest payment date
thereafter, any outstanding Bonds of this series may be
redeemed prior to their scheduled maturities, in whole or in
part, as instructed by Baytown, upon written notice of the
80914 -7
Minutes of the Regular Meeting - September 14, 1978
exercise of the option to redeem delivered by Baytown to the
Authority and the Paying Agent, for a price equal to the
principal amount of the Bonds to be redeemed plus unpaid
accrued interest to the date fixed for redemption. The
Paying Agent shall cause a written notice of any redemption
to be published at least once during each week for at least
two consecutive weeks, each publication to be made in a
newspaper or general circulation in Houston, Texas, with the
first of such publications being at least 30 days prior to
the date fixed for redemption. If, because of temporary or
permanent suspension of the publication or general circulation
of any such newspapers, it is impossible or impractical to
publish such notice in the manner provided herein, then such
publication in lieu thereof a:3 shall be made with the
approval of the Paying Agent shall constitute a sufficient publi-
cation of a notice. By the date fixed for any such redemption,
due provision shall be made with the Paying Agent for the
payment of the principal amount of the Bonds which are to be
redeemed, plus accrued interest thereon to the date fixed
for redemption. If such written notice of redemption is
published, the Bonds called for redemption shall become due
and payable on the date fixed for redemption, and, if due
provision for such payment is made, all as provided above,
the Bonds which are to be redeemed thereby shall automatically
be deemed to have been redeemed prior to their scheduled
maturities; shall not bear interest after the date fixed for
redemption; and shall not be regarded as being outstanding
except for the right of the bearer to receive the funds
provided for such payment. Upon presentation and surrender
of such Bonds to the Paying Agent, together with all coupons
appertaining thereto maturing after such redemption date,
such Bonds shall be paid.
IF THE DATE for the payment of the principal of or
interest on this Bond shall be a Saturday, a Sunday, a legal
holiday, or a day on which banking institutions in the city
where the bank of the Paying Agent is located are authorized
by law or executive order to close and on which the bank of
the Paying Agent is closed, then the date for such payment
shall be the next succeeding day which is not such a day;
payment on such date shall have the same force and effect as
if made on the original date of payment; and no interest
shall accrue from the original date of payment to such date.
THIS BOND shall be exchangeable or transferable by
delivery. The principal of this Bond shall be payable upon
presentation and surrender of the Bond to the Paying Agent.
The bearer of this Bond and the bearer of any coupon hereunto
appertaining may be deemed and regarded by the Paying Agent
as the absolute owner for all purposes, including payment
and discharge of liability upon such Bond or coupon to the
extent of such payment, and the Paying Agent shall not be
affected by notice to the contrary. This Bond and the
interest coupons appertaining hereto shall at all times be
negotiable instruments within the meaning of the Texas
Uniform Commercial Code, as amended.
IT IS HEREBY certified and covenanted that this Bond
has been duly and validly authorized, issued, and delivered;
that all acts, conditions, and things required or proper to
be performed, exist, and be done precedent to or in the
authorization, issuance, and delivery of this Bond have been
performed, existed, and have been done in accordance with
law; and that this Bond is a special revenue obligation of
the Authority, with the principal and interest on this Bond
being payable solely from, and secured by a lien on and
pledge or, the payments of Pledged Revenues to be made by
Baytown or, in certain instances as described in the Resolution,
from amounts attributable to the proceeds of the Bonds.
THE AUTHORITY has reserved the right, subject to the
restrictions stated in the Resolution, to issue additional
80914 -8
Minutes of the Regular Meeting - September 14, 1978
parity revenue bonds ( "Additional Bonds ") which also may be
made payable from, and be secured, equally and ratibly with
the outstanding Series 1977 Bonds and the Bonds, by a lien
on and pledge of the Pledged Revenues, all in accordance
with the terms of the Resolution, as the same may be amended
as provided therein, to acquire funds (a) to complete making,
purchasing, constructing, leasing, or acquiring the Project,
(b) to enlarge, expand, or modify the Project, (c) to reconstruct
the Project, or (d) to refund any of the Series 1977 Bonds,
the Bonds, or any Additional Bonds. Such Additional Bonds
may be issued in one or more series, in various principal
amounts, to mature at different times, to bear interest at
different rates, to be payable in such installments, to be
redeemable prior to maturity on whatever terms or prices,
and to contain other provisions as may be provided in any
resolution or resolutions of the Board whereunder such
Additional Bonds may be issued.
THE AUTHORITY has also reserved the right to amend the
Resolution with the prior written consent of Baytown and
with the approval in certain circumstances of the holders of
two - thirds (2/3) in aggregate principal amount of the outstanding
bonds who are materially adversely affected by such amendment;
provided, however, that, without the consent of the holder
of each outstanding bond affected thereby, the Resolution
shall not be amended so as to permit: (a) the reduction of
the portion of bonds the consent of the holders of which is
required for any waiver, modification, or alteration; (b)
the extension of the time or times of payment of the principal
of and interest on the bonds, or the reduction in the principal
amount thereof or in the rate of interest thereon or any
other modification in the terms of payment of the principal
of or interest on the bonds; (c) the creation by the Authority
of any lien ranking prior to or on a parity with the lien of
the Bonds (other that with respect to Additional Bonds); .(d)
the giving of any preference of any bond over any other
bond; or (e) the extension of any waiver of default to
subsequent defaults.
IN WITNESS WHEREOF, this bond and the interest coupons
appertaining hereto have been signed with the facsimile
signature of the President of the Board, and countersigned
with the facsimile signature of the Secretary of the Board,
and the official seal of the Authority has been duly impressed,
or placed in facsimile, on this Bond.
Secretary, Board of Directors President, Board of Directors
(AUTHORITY'S SEAL)
FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE:
OFFICE OF THE COMPTROLLER OF PUBLIC REGISTER NO.
ACCOUNTS OF THE STATE OF TEXAS
I HEREBY CERTIFY THAT there is on file and of record in
my office a certificate to the effect that this Bond has
been examined, certified as to validity, and approved by,the
Attorney General of the State of Texas, and further that
this Bond has been registered by the Comptroller of Public
Accounts of the State of Texas.
WITNESS my signature and seal this
(COMPTROLLER'S SEAL)
Comptroller of Public Accounts
of the State of Texas
NO.
Minutes of the Regular Meeting - September 14, 1978
FORM OF INTEREST COUPON:
ON ,
BAYTOWN AREA WATER AUTHORITY
80914 -9
promises to pay to the bearer, but solely from the sources
described in the Bond to which this interest coupon appertains,
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 the scheduled maturity of the
Bond to which this interest coupon appertains, upon presentation
and surrender of this interest coupon at CITIZENS NATIONAL
BANK & TRUST CO. OF BAYTOWN, BAYTOWN, TEXAS, such amount
being interest coming due on such day in respect of the Bond
bearing the number hereinafter designated of that issue
styled BAYTOWN AREA WATER AUTHORITY WATER SUPPLY CONTRACT
REVENUE BONDS (CITY OF BAYTOWN, TEXAS PROJECT) SERIES 1978
dated September 1, 1978. The holder hereof shall never have the
right to demand payment of this obligation out of any money
derived or to be derived by taxation or any other revenues
of the Authority other than the sources described in the
Bond to which this coupon appertains. Bond No.
Secretary, Board of Directors President, Board of Directors
Section 6. Definitions. In addition to the other
terms and phrases defined herein, the following terms shall
have the following meanings:
Bonds -- Bonds issued by the Authority, including
the Series 1977 Bonds, the Series 1978 Bonds, and
Additional Bonds, as described in Section 13, (1)
which, together with the interest thereon, are to be
paid from the payments of Pledged Revenues and (2)
which have been issued and sold to acquire funds to (a)
make, purchase, construct, lease, or otherwise acquire
the Project, (b) complete such making, purchasing,
constructing, leasing, or acquiring, (c) enlarge,
expand, or modify the Project, (d) reconstruct the
Project, or (e) refund any Bonds.
Bondholder -- The holder of any Bond and, when
used with respect to any coupon, the holder thereof.
Costs of the Project -- The costs incurred or to
be incurred by the Authority or Baytown with respect to
the acquisition of the Project, whether incurred prior
to or after the date of the Baytown Contract and including,
but not limited to, the following items:
(1) Obligations for labor, materials, services,
and equipment;
(2) Costs of any bonds and insurance the
cost of which is not otherwise provided for;
(3) Costs of engineering services, including
costs for preliminary design and development work,
test borings, surveys, estimates, plans and specifications,
supervising construction, and performing all other
duties required by or consequent upon proper
construction;
80914 -10
Minutes of the Regular Meeting - September 14, 1978
(4) Expenses incurred in connection with the
issuance and sale of the Bonds, including without
limitation (a) fees and expenses of accountants,
auditors, attorneys, underwriters, engineers, and
financial advisors, (b) material, supplies, printing,
and engraving, (c) recording and filing fees, (d)
rating agency fees, and (e) initial fees and
expenses of a trustee, if any;
(5) Costs required to be paid under the
terms of any contract or contracts in connection
with the Project;
(6) Sums required to reimburse the Authority
or Baytown for advances made by either of them for
any of the above items, including fees of any kind
for any other cost incurred, including expenses
for organization of the Authority, overhead expenses,
and expenses for any work done by either the
Authority or Baytown which are properly chargeable
to the Project; and
(7) Costs of all other items related to the
acquisition of the Project.
Houston Contract -- The Wholesale Water Supply
Contract - Untreated Water, dated as of November 1,
1976, between the Authority, as buyer, and the City of
Houston, Texas, as seller.
Outstanding Bonds -- At any date as of which the
amount of Outstanding Bonds is to be determined, the
aggregate of all Bonds, except the following:
(1) Bonds cancelled or delivered to the
Paying Agent for cancellation at or prior to such
date;
(2) Bonds for the full payment of the principal
of and interest on which cash shall have been
theretofore deposited with the Paying Agent and
which (a) shall have matured by their terms, or
otherwise shall have become payable, but shall not
have been rendered for payment or (b) shall have
been purchased by the Authority but shall not have
been presented for payment; and
(3) Bonds in exchange for or in lieu of
which other Bonds have been delivered under this
Resolution.
Paying Agent -- Any person named herein or in
accordance herewith to pay the principal of and interest
on any of the Bonds, one of which shall be Citizens
Bank & Trust Co. of Baytown, Baytown, Texas, and any
successor Paying Agent.
Pledged Revenues -- The payments to be made by
Baytown to the Authority for treated water and pledged
herein for payment of the principal and interest on the
Bonds issued pursuant to the terms of the Baytown
Contract, the source of which shall include any and all
available sources that Baytown may pledge toward such
payments, including gross revenues of its waterworks
and sanitary sewer system.
Project -- The property, works, facilities, and
improvements (whether previously existing or to be
made, constructed, or acquired), within or without the
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Minutes of the Regular Meeting - September 14, 1978
boundaries of the Authority, necessary (1) to acquire
surface water supplies from sources both within and
without the boundaries of the Authority, including
particularly the sources provided by the Houston Contract;
(2) to conserve, store, transport, treat, and purify
untreated water purchased by the Authority pursuant to
the Houston Contract; and (3) to distribute, sell, and
deliver treated water to Baytown pursuant to the terms
of the Baytown Contract. The Project will consist of
(1) property, works, facilities and improvements to
accept untreated water at a point of delivery pursuant
to the Houston Contract; (2) pipelines and canals; (3)
a reservoir and /or forebay between such point of delivery
and the Authority's treatment facilities; and (4)
certain water treatment facilities as may be revised
pursuant to the Baytown Contract.
Section 7. Pledge; S ecial Obligations. (a) The
Series 1978 Bonds--a-n-T the interest coupons appertaining
thereto shall be payable from, and secured by an irrevocable
first lien on and pledge of, the Pledged Revenues or, in
certain instances as described in Section 8, from amounts
attributable to the proceeds of the Series 1978 Bonds. The
Pledged Revenues are further pledged irrevocably to the
establishment and maintenance of the Debt Service Fund
(hereinafter defined) at the Paying Agent.
(b) The Series 1978 Bonds and the interest coupons
appertaining thereto shall be special obligations of the
Authority payable solely from the sources described above,
and no holder of any Series 1978 Bonds shall ever have the
right to demand payment of the Series 1978 Bonds and interest
coupons from funds derived or to be derived by taxation or
any revenues of the Authority other than those pledged in
the preceding subsection. The Series 1978 Bonds shall not
be considered general obligations of the governing body of
the Authority, the Authority, the State of Texas, or any
municipality or subdivision thereof. No entity other than
the Authority is obligated, directly, indirectly, or contingently
to pay the Series 1978 Bonds from any other source whatsoever.
Section 8. Project Fund; Investment Thereof. (a)
Immediately after the sale and delivery of the Series 1978
Bonds, the Authority shall deposit into a separate and
special "Baytown Area Water Authority Stater Supply Contract
Revenue Bonds (City of Baytown, Texas Project) Series 1978 -
Project Fund" (the "Project Fund "), which is hereby created
and shall be established at one of the Authority's official
depositories, an amount equal to the principal amount of the
Series 1978 Bonds less underwriter's discount, if any. The
Project Fund shall be established, drawn on, and used by the
Authority to pay the eligible Costs of the Project.
(b) Any monies held as part of the Project Fund shall,
at the direction of Baytown, be invested and reinvested
pursuant to the Authority Act and in accordance with the
laws of the State of Texas, subject to the provisions of
Section 17 hereof. All interest and realized profit from
such investment may be transferred to and deposited in the
Debt Service Fund (hereinafter defined) if so directed by
the Authority. All losses resulting from such investment
will be charged against the Project Fund. Any obligation in
which such money is so invested shall be kept and held
safely and shall be sold and the proceeds of the sale applied
so as to make promptly all payments required to be made.
(c) After completion of the Project, any surplus
monies remaining in the Project Fund (other than funds
required to provide for the payment of the Costs of the
Project not then due and payable or the liability for the
80914 -12
Minutes of the Regular Meeting - September 14, 1978
payment of which is being contested or disputed) shall, at
such time or as soon thereafter as possible, be deposited in
the Debt Service Fund (hereinafter defined). Any monies
retained in the Project Fund by the Authority for the payment
of Costs of the Project not then due and payable, or the
liability for the payment of which is being contested or
disputed and which shall thereafter become available, shall
be applied in accordance with the provisions of the preceding
sentence.
Section 9. Debt Service Fund; Investment Thereof.(a)
Immediately after the sale and delivery of the Series 1978
Bonds, the Authority shall deposit into a separate and
special trust fund called the "Baytown Area Water Authority
Water Supply Contract Revenue Bonds (City of Baytown, Texas
Project) Series 1978 - Debt Service Fund" (the "Debt Service
Fund "), which is hereby created and shall be established by
the Authority at the Paying Agent and maintained as provided
in this Resolution so long as any Series 1978 Bond or interest
coupon appertaining thereto is outstanding and unpaid, the
accrued interest, if any, on the Series 1978 Bonds to the
date of delivery. All payments by Baytown of Pledged Revenues
with respect to each series of Outstanding Bonds shall be
deposited directly into the appropriate Debt Service Fund,
without priority or preference.
(b) All monies from time to time deposited and held in
the Debt Service Fund shall be held in trust by the Paying
Agent for the benefit of the Bondholders entitled to be paid
therefrom. From the monies in the Debt Service Fund the
Authority shall pay, or cause to be paid, the interest on
the Series 1978 Bonds as the same shall become due and the
principal of the Series 1978 Bonds as the same shall mature
or be called for redemption.
(c) If the date for the payment of the principal of or
interest on a Series 1978 Bond is a Saturday, a Sunday, a
legal holiday, or a day on which banking institutions in the
city where the bank of the Paying Agent is located are
authorized by law or executive order to close and on which
the bank of the Paying Agent is closed, then the date for
such payment shall be the next succeeding day which is not
such a day; payment on such date shall have the same force
and effect as if made on the original date or payment; and
no interest shall accrue from the original date of payment
to such date.
(d) (i) Any monies held as part of the Debt Service
shall, at the direction of Baytown, be invested or reinvested
by the Paying Agent pursuant to the Authority Act and in
accordance with the laws of the State of Texas and subject
to the provisions of Section 17 hereof.
(ii) Any securities purchased with the monies in the
Debt Service Fund shall be deemed a part of the Debt Service
Fund. The income and profits, including realized discount
on securites purchased, received on all such securities
(after deduction for accrued interest and premium paid from
the Debt Service Fund at time of purchase) shall be deposited
in or credited to the Debt Service Fund, and all losses
thereon shall be charged against the Debt Service Fund.
Neither the Authority nor the Paying Agent shall be liable
or responsible for any loss resulting from any such investment
or resulting from any such investment or resulting from the
redemption or sale of any such investment as herein authorized.
If at any time it shall become necessary that some or all of
the securities purchased with the monies in the Debt Service
Fund be redeemed or sold to raise monies necessary to comply
with the provisions of this Resolution, the Paying Agent
shall, at the direction of Baytown, effect such redemption
or sale.
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Minutes of the Regular Meeting - September 14, 1978
Section 10. Security of Funds. All moneys deposited
with the Authority or the Paying Agent and not invested in
securities by the Authority or the Paying Agent pursuant to
the provisions hereof or insured by the Federal Deposit
Insurance Corporation or other federal agency, shall continuously
be secured, for the benefit of the Bondholders, as required
by law for the security of the Authority's funds.
Section 11. Baytown's Payments of Pledged Revenues.
(a) Baytown has agreed in the Baytown Contract, and, in
addition to and on a parity with payments agreed to be made
pursuant to the approval of the 1977 Bond Resolution, by
approving the issuance of the series 1978 Bonds and the
terms and conditions of this Resolution, Baytown has further
absolutely and unconditionally obligated itself and agreed
(regardless of, and notwithstanding, any provisions of any
other contract or agreement between Baytown and the Authority
or any other party to the contrary) to make the following
payments to the Authority in immediately available funds:
(i) On or before November 1, 1978 and the first
day of each month thereafter, such amount, in approximately
equal monthly installments, as will be sufficient,
together with any other amounts available therefor in
the Debt Service Fund, as shall in the aggregate equal
(A) the interest which shall become due on the Series
1978 Bonds on the next succeeding interest payment
date, plus (B) the principal amount of any of the 1978
Series 1978 Bonds to be redeemed prior to maturity on
such date; and
(ii) On or before the first of the month twelve
months prior to the first maturity of the Series 1978
Bonds, and the first day of each month thereafter, such
amounts, in approximately equal monthly installments,
as will be sufficient, together with any other amounts
available therefor in the Debt Service Service Fund, as
shall in the aggregate equal the principal amount of
the Series 1978 Bonds which shall mature on the next
maturity date of the Series 1978 Bonds.
(b) The holders of the Series 1978 Bonds shall be
entitled to rely unconditionally on the agreements, covenants,
and representations set forth in this Resolution. It is
further understood and agreed that Baytown may prepay all or
any part of each payment of Pledged Revenues, and any such
prepayment and any earnings thereon shall be applied by the
Authority to Baytown's obligation to make succeeding payments
of Pledged Revenues (except such amounts as may be specified
by Baytown to be applied to the purchase or redemption of
any of the Series 1978 Bonds prior to their maturities);
provided, however, that the redemption of any Outstanding
Bonds prior to maturity at any time, pursuant to the provisions
of this Section, Section 11(b) of the 1977 Bond Resolution,
or any similar section in any resolution authorizing any
Additional Bonds, with funds from any source (whether from
Pledged Revenues or otherwise), shall not relieve Baytown of
its unconditional obligation to pay each payment of Pledged
Revenues, as specified above, when due.
Section 12. Redemption of the Series 1978 Bonds Before
Maturity.
(a) Redemption dates and prices.
(ii) The Series 1978 Bonds are noncallable for redemption
prior to November 1, 1993.
(ii) On November 1, 1993, or on any interest payment
date thereafter, any Outstanding Series 1978 Bonds are
subject to optional redemption prior to their scheduled
80914 -14
Minutes of the Regular Meeting - September 14, 1978
maturities, in whole or in part, at the option of and as
directed by Baytown, upon written notice of the exercise of
the option to redeem delivered by Baytown to the Authority
and the Paying Agent. On or before the day fixed for such
redemption, Baytown shall deposit, or cause to be deposited,
Pledged Revenues into the Debt Service Fund, in immediately
available funds, a sum, which, together with other monies
available therefor in the Debt Service Fund, is equal to the
aggregate principal amount of the Series 1978 Bonds requested
to be redeemed plus accrued interest to the date of redemption.
(b) Notice of Redemption. The Paying Agent shall
cause a written notice of any redemtpion to be published at
least once during each week for at least two consecutive
weeks, each publication to be made in a newspaper of general
publication in Houston, Texas, with the first of such publications
being at least 30 days prior to the day fixed for redemption.
If, because of temporary or permanent suspension of the
publication or general circulation of any such newspapers,
it is impossible or impractical to publish such notice in
the manner provided herein, then such publication in lieu
thereof as shall be made with the with the approval of the
Paying Agent for the payment of the principal amount of the
Series 1978 Bonds which are to be redeemed, plus accrued
interest thereon to the date fixed for redemption. If such
written notice of redemption is published, the Series 1978
Bonds called for redemption shall become due and payable on
the date fixed for redemption, and, if due provision for
such payment is made, all as provided above, the Series 1978
Bonds which are to be redeemed thereby shall automatically
be deemed to have been redeemed prior to their scheduled
maturities; shall not bear interest after the date fixed for
redemption; and shall not be regarded as being Outstanding
Bonds except for the right of the bearer to receive the
funds provided for such payment. Upon presentation and
surrender of such bearer Series 1978 Bonds to the Paying
Agent, together with all coupons appertaining thereto maturing
after such redemption date, such Series 1978 Bonds shall be
paid.
(c) Redemption Requests. In the event Baytown exercises
its option under Section 12 (a)(ii), redemption shall be
made pursuant to such Section at such times and in such
principal amounts as Baytown shall, not later than 45 days
prior to the date in which any Series 1978 Bonds are to be
redeemed pursuant to Section 12 (a)(ii), state in a written
certificate which is signed by a duly authorized representative
of Baytown and received by the Authority. The Authority
shall give the notice of redemption referred to in Section
12(b) in respect of such redemption.
Section 13. Additional Bonds. (a) The Authority
reserves the right, upon the request of Baytown, to issue
additional bonds (the "Additional Bonds ") in such amounts as
are required for the purpose of acquiring funds to (i)
complete making, purchasing, constructing, leasing, or
acquiring the Project, (ii) enlarge, expand, or modify the
Project, (iii) reconstruct the Project, or (iv) refund any
Bonds. The Additional Bonds, when issued and delivered,
shall be payable from and secured by a first lien on and
pledge of the Pledged Revenues (which shall include additional
payments sufficient to enable the Authority to comply with
all terms and conditions of this Resolution with respect to
the issuance of such Additional Bonds), in the same manner
and to the same extent as any previously Outstanding Bonds;
and all of the Bonds shall in all respects be on a parity
and of equal dignity. The Additional Bonds may be issued in
one or more series, in various principal amounts, to mature
at different times, to bear interest at different rates, to
be payable in such installments, to be redeemable prior to
maturity on whatever terms or prices, and to contain such
80914 -15
Minutes of the Regular Meeting - September 14, 1978
other provisions as may be provided in any resolution or
resolutions of the Board whereunder the Additional Bonds may
be issued.
(b) No such installment or series of Additional Bonds
shall be issued unless:
(i) A certificate is executed by the President and
Secretary of the Board to the effect that no default
exists in connection with any covenants or requirements
of any Outstanding Bonds and that the Debt Service Fund
contains the amount then required to be on deposit
therein;
(ii) Baytown is not in default with respect to any
series of bonds or other debt issued by it; and
(iii) The principal of and interest on any such installment
or series of Additional Bonds are payable on the same
semiannual interest dates and annual principal dates as
the Outstanding Bonds.
(c) Nothing in this Section shall either require or
preclude that (i) any bonds which may be issued by the
Authority or any other issuer for the purpose of acquiring
funds to (A) make, purchase, construct, lease, or otherwise
acquire the Project; (B) complete such making, purchasing,
constructing, leasing, or acquiring; (C) enlarge, expand, or
modify the Project; (D) reconstruct the Project; or (E)
refund any Bonds; (ii) the Bonds must rank equally and on a
parity with any such bonds not issued as Additional Bonds;
or (iii) that the Bonds must be secured, together with any
bonds not issued as Additional Bonds, by a pledge of the
Pledged Revenues.
Section 14. Amendments and Supplemental Resolutions.
(a) The Authority may at any time, subject to the conditions
and restrictions contained in this Resolution and with the
prior written consent of Baytown, but without the consent
of, or notice to, the Bondholders, enter into a resolution
or resolutions supplemental hereto, which thereafter shall
form a part hereof, for any one or more of the following
purposes:
(i) To add to the covenants and agreements of the
Authority contained in this Resolution other covenants
and agreements thereafter to be observed and performed;
(ii) To cure any ambiguity or to cure, correct, or
supplement any defect, omission, or inconsistent provision
contained in this Resolution or in any supplemental
resolution;
(iii) To establish the amount, terms, provisions,
and conditions or a particular series of Additional
Bonds and to prescribe the form of such bonds and the
coupons appertaining thereto; or
(iv) To make any other change in this Resolution
or any supplemental resolution which, in the judgement
of the Authority in reliance upon an opinion of counsel
of recognized national standing in the field of municipal
bond law, does not materially adversely affect the
rights of the Bondholders of any series.
The Authority hereby covenants that it will perform all the
requirements of any such supplemental resolutions which may
be in effect from time to time.
(b) (i) If at any time the Authority shall desire to
amend this Resolution, the 1977 Bond Resolution, or the
80914 -16
Minutes of the Regular Meeting - September 14, 1978
Baytown Contract, and such amendment, in the judgement of
the Authority in reliance upon an opinion of counsel of
recognized national standing in the field of municipal bond
law, materially adversely affects the right of the Bondholders,
the Authority shall cause notice of the proposed amendment
to be published at least once during each week for at least
two consecutive weeks, each publication to be made in a
newspaper of general circulation in Houston, Texas. Such
notice shall briefly set forth the nature of the proposed
amendment and shall state that a copy thereof is on file at
the principal office of the Authority for inspection by all
Bondholders.
(ii) From time to time the Bondholders of not less
than two - thirds (2/3) in principal amount of the Outstanding
Bonds materially adversely affected by any waiver, modification,
or alteration of this Resolution, the 1977 Bond Resolution,
or the Baytown Contract, may, by an instrument or instruments
in writing signed by such Bondholders and filed with the
Authority, assent to and authorize any such waiver, modification,
or alteration of this Resolution, the 1977 Bond Resolution,
or the Baytown Contract that shall be proposed by the Authority
and consented to by Baytown; and any action therein authorized
to be taken, with the assent or authority given as aforesaid,
shall be binding upon all Bondholders affected thereby, no
such waiver, modification, or alteration shall permit: (a)
the reduction of the portion of the Bonds the consent of the
Bondholders of which is required for any waiver, modification,
or alteration; (b) the extension of the time or times of
payment of the prinicpal of and interest on the Bonds, or
the reduction in the principal amount thereof or in the rate
of interest thereon or any other modification in the terms
of payment of the principal or interest on the Bonds; (c)
the creation by the Authority of any lien ranking on a
parity with (other than with respect to Additional Bonds);
(d) the giving of any preference of any Bond over any other
Bond; or (e) the extension of any waiver of default to
subsequent defaults.
(c) Upon the adoption of any waiver, modification, or
alteration pursuant to the provisions of this Section, this
Resolution, the 1977 Bond Resolution, or the Baytown Contract,
as the case may be, shall be deemed to be amended in accordance
therewith and the respective rights, duties, and obligations
of the Authority, Baytown, and all the Bondholders of the
then Outstanding Bonds shall thereafter be determined,
exercised, and endorsed hereunder, subject in all respects
to such amendment.
Section 15. Sale and Delivery of the Series 1978
Bonds; Approval and Registration Thereof. (a) The sale of
the Series 1978 Bonds to
(the "Initial Purchaser ") pursuant to the taking of public
bids therefor on the date of this Resolution, at a price of
and accrued interest to the date of delivery,
is hereby confirmed. Delivery of the Series 1978 Bonds to
the Initial Purchaser shall be made as soon as practical
after the adoption of this Resolution, upon payment therefor,
in accordance with the terms of sale.
(b) Before the delivery of any Series 1978 Bonds, all
necessary records and proceedings pertaining to such Series
1978 Bonds shall be delivered to the Attorney General of
Texas for investigation, examination, and approval and to
the Comptroller of Public Accounts (or a deputy designated
in writing to act for such Comptroller) shall manually sign
the Comptroller's Registration Certificate prescribed herein
to be printed and endorsed on each Series 1978 Bond, and the
seal of such Comptroller shall be impressed, printed, or
lithographed on each of the Series 1978 Bonds. Thereafter
the Series 1978 Bonds shall be delivered to the initial
80914 -17
Minutes of the Regular Meeting - September 14, 1978
purchasers thereof in accordance with the terms of sale of
such Series 1978 Bonds.
Section 16. Damaged, Mutilated, Lost, Stolen, or
Destroyed Bonds and Coupons. (a) In the event any Bond is
damaged, mutilated, lost, stolen, or destroyed, the Authority
shall execute a new Bond of the same principal amount and
maturity with coupons corresponding in all respects to those
unpaid coupons, if any, of the damaged, mutilated, lost,
stolen, or destroyed Bond, in exchange for or in lieu of,
such Bond and its coupons, if any, submit such replacement
Bond to the Attorney General of Texas for his approval and
otherwise cooperate with the Bondholder of any such Bond in
complying with the provisions of Article 715a, Vernon's
Texas Civil Statutes, as amended, or any other statute or
procedure available for the issuance of replacement bonds.
(b) In the event any coupon appertaining to any Bond
is damaged, mutilated, lost, stolen, or destroyed, the
Authority shall execute and deliver a new Bond of the same
principal amount and maturity and having attached coupons
corresponding to the coupons appertaining to the Bond to
which such damaged, mutilated, lost, stolen, or destroyed
coupon appertained, in exchange and substitution for, or in
lieu of and substitution for, the Bond and appurtenant
coupons to which such damaged, mutilated, lost, stolen, or
destroyed coupon appertained, submit such replacement Bond
to the Attorney General of Texas for his approval and otherwise
cooperate with the Bondholder of any such Bond is complying
with the provisions of Article 715a, Vernon's Texas Civil
Statutes, as amended, or any other statute or procedure
available for the issuance of replacement Bonds or coupons.
(c) Application for exchange and substitution of
damaged, mutilated, lost, stolen, or destroyed Bonds and
coupons shall be made to the Authority. In every case, the
applicant for a substitute Bond shall furnish to the Authority
and Baytown such security or indemnity as may be, respectively,
required by them to save each of them and the Paying Agent
harmless. In every case of loss, theft, or destruction of a
Bond or a coupon, the applicant shall also furnish to the
Authority and Baytown evidence to their respective satisfaction
of the loss, theft, or destruction and proof of ownership.
In every case of loss, theft, or destruction or a coupon or
coupons only, the applicant shall surrender the Bond to
which the coupon or coupons so damaged, mutilated, lost,
stolen, or destroyed appertain, with all coupons appertaining
thereto (including any damaged or mutilated coupons) not
lost, stolen, or destroyed. In every case of damage or
mutilation of a Bond only, or a Bond without coupons, the
applicant shall surrender the Bond so damaged or mutilated
together with all coupons, if any, appertaining thereto.
(d) Notwithstanding the foregoing provisions of this
Section 16, in the event any such Bond or coupon shall have
matured, and no default has occurred which is then continuing
in the payment of the principal or interest on the Bonds,
the Authority may authorize the payment of the same (without
surrender thereor except in the case of a damaged or mutilated
Bond or coupon) instead of issuing a substitute Bond and
coupons, if any, provided security or indemnity is furnished
as provided above in this Section 16.
(e) Upon the issuance of any substitute Bond, the
Authority and Baytown may charge any such Bondholder with
all expenses in connection therewith. Every substitute Bond
(and any coupon or coupons attached thereto) issued pursuant
to the provisions of this Section 16 by virtue of the fact
that any Bond or any coupon is lost, stolen, or destroyed
shall constitute a contractual obligation of the Authority,
80914 -18
Minutes of the Regular Meeting - September 14, 1978
whether or not the lost, stolen, or destroyed Bond or coupon
shall be found at any time, or be enforceable by anyone, and
shall be entitled to all the benefits of this Resolution
equally and proportionately with any and all other Series
1978 Bonds and coupons duly issued under this Resolution.
(f) This Resolution shall constitute sufficient authority
for the issuance of any such substitute Bond without the
necessity of further action by the Board or any other body
or person, and the issuance of such substituted Bonds is
hereby authorized, notwithstanding any other provisions of
this Resolution.
Section 17. No- Arbitrage. The Authority convenants
that it will make no use of the direct or indirect proceeds
of the Series 1978 Bonds which, if such use had been reasonably
expected on the date of delivery of the Series 1978 Bonds,
to and payment for the Series 1978 Bonds by the initial
purchasers thereor, based on the facts, estimates, and
circumstances in existence on such date would have caused
the Series 1978 Bonds to be arbitrage bonds within the
meaning of Section 103 (c) of the Internal Revenue Code of
1954, as amended, or any regulations or rulings pertaining
thereto; and by this covenant the Authority further is
obligated to comply with the requirements of the aforesaid
Section 103 (c) and all applicable and pertinent regulations
relating to arbitrage bonds. The Authority further covenants
that the direct or indirect proceeds of the Series 1978
Bonds will not otherwise be used directly or indirectly so
as to cause all or any part of the Series 1978 Bonds to be
or become arbitrage bonds within the meaning of the aforesaid
Section 103(c), or any regulations or rulings pertaining
thereto.
Section.18. Resignation and Removal of the Paying
Agent and Appointment of Another Paying Agent. The Paying
Agent may at any time resign and be discharged of the duties
and obligations created by this Resolution by giving at
least 60 days written notice by registered or certified mail
to the Authority and Baytown. The Paying Agent may be
removed, at any time, with the consent of Baytown, by an
instrument filed with the Paying Agent and signed by the
Authority. Any successor Paying Agent shall be appointed by
the Authority with the approval of Baytown. In the event of
resignation or removal, the Paying Agent shall pay over,
assign, and deliver any monies.held by it as Paying Agent
and any records maintained by it to its successor, or, if
there be no successor, to the Authority. At any time or
from time to time, with the approval of Baytown, the Authority
may appoint one or more other Paying Agents for the Bonds.
Section 19. CUSIP Numbers. The Board of Directors of
the Authority authorizes the imprinting of CUSIP (the American
Banker's Association Committee on Uniform Securities Identification
Procedures) numbers on the Series 1978 Bonds; provided,
however, that the failure of such CUSIP numbers to appear on
the Series 1978 Bonds, or the imprinting of incorrect CUSIP
numbers, shall in no way affect the validity or enforceability
of the Series 1978 Bonds or relieve the purchaser of any
obligation to accept delivery of and make payment for the
Series 1978 Bonds.
Section 20. Emergency. It is hereby officially found
and determined tha a case of emergency or urgent public
necessity exists which requires the holding of the meeting
at which this Resolution is adopted, such emergency or
urgent public necessity being that the proceeds from the
sale of the Series 1978 Bonds are required as soon as possible
and without delay for necessary and urgently needed public
improvements and further that such meeting was open to the
public, and public notice of the time, place, and purpose of
Minutes of the Regular Meeting - September 14, 1978
such meeting was given, all as required by Article 6252 -17,
Vernon's Texas Civil Statutes, as amended.
Section 21. Effective Date. This resolution shall
take effect from and after its passage by the Board of
Directors of the Baytown Area Water Authority.
the
this
INTRODUCED, READ, AND
Board of Directors of
day of _
ATTEST:
Peter R. Buenz, Secretary
APPROVED:
80914 -19
PASSED by the affirmative vote of
the Baytown Area Water Authority
, 1978.
Robert L. Gillette, President
Scott Bounds, Attorney for
The Baytown Area Water Authority
Receive Petitions
None.
City Manager's Report
Proposed Airport Development - The Administration has
been advised by the Consulting Engineers and the FAA that it
is necessary to hold a public hearing concerning the proposed
airport development north of the city. This hearing will be
on the environmental impact statement which has been prepared
and is available at City Hall for interested persons to
review. The Administration has scheduled this hearing for
October 12, 1978 at 7 :00 p.m., during the regular Council
meeting.
Clean Community Program - At the last Council meeting,
City Council tentatively scheduled a work session to discuss
the Clean Community Program to be held this week but it was
postponed. It was suggested that the work session be held
on Tuesday, October 3, 1978, at 5:00 p.m. Council had no
objection.
Lee College Music Department - The Lee College Music
Department and the City of Baytown's Parks and Recreation
Department are sponsoring an appearance of the United States
Army Forces Command Band on Monday, September 18, 1978, from
7:30 p.m. to 8:45 p.m.
Harris County Mayor's and Councilman's Association -
The next meeting of the HCMCA is scheduled for Thursday,
September 21. The program is "Meet Your Legislator." The
Administration will check with Council later to determine
how many of the Council members will be able to attend this
meeting.
Street Improvement Program - The base on Louisiana
Street and Allman Street has been lime stabilized. The
limestone has been added to the base between Bowie and
Travis Streets.
80914 -20
Minutes of the Regular Meeting - September 14, 1978
Kilgore Road /Mockingbird Lane Storm Sewer Project - No
work has been accomplished due to the heavy rain. There are
still a few curb inlets to be completed, some road repairs,
and general cleanup.
Neighborhood Center at the Sports Complex - Some work
has gone forward on that job in spite of the weather. Half
of the roof deck is in place and the sheeting on the exterior
walls is nearly complete.
Jenkins - Hollaway Park - The work has been slow due to
the rain but the concession stand and the scorekeeper building
are almost complete; the water and sewer service lines are
installed, and part of the asphalt paving has been finished.
Questions or Comments Regarding the City Manager's Report
Councilman Kloesel commented that he read an article
concerning the flooding of the Brownwood area and asked what
procedure is used regarding the floodgates. Mr. Lanham
explained that the Administration has established a procedure
during periods of heavy rains to have a person on duty on an
overtime basis to check the floodgates, since the floats do
not always work to turn the gates on automatically.
Councilman Kloesel inquired if the residents of Brownwood
open and close the floodgates. Mr. Lanham explained that
there have been instances where the residents opened and
closed the gates and turn the pumps on and off. Mr. Lanham
explained that not all of the residents agree about when the
pumps should be turned on or off. Mr. Lanham felt that it
is necessary for the city to operate the pumps and that the
pumps should be locked.
Bill Miller Appeared
Bill Miller appeared concerning the closing of Durrain
Ferry Road. The Council received a petition on March 20,
1978, regarding the re- opening of Durrain Ferry Road, which
has been closed temporarily due to construction of Spur 201.
This was later followed with a work -shop appearance by
people both for and against it. The original action of the
Council was that no action would be taken until the com-
pletion of the construction. That construction has not been
completed. Within the last couple of weeks, permanent
barriers have been installed and signs placed. After the
original decision of Council to wait until completion of the
construction to allow traffic to be re- established to a
normal pattern, a motion was put before the Council and it
was voted to close Durrain Ferry Road. Mr. Miller felt that
this has not been properly handled. He felt the original
decision of Council to wait until construction was complete
would be the fairest.
Mr. Miller suggested that Arizona Street be closed
because it is a very hazardous street where motorists cross
two lanes of traffic. Mr. Miller requested that Durrain
Ferry Road be an open issue. Mr. Miller stated that he
would return at a later date after normal traffic is re-
established to give Council the traffic count and the technical
information that is needed to make a determination. Mr.
Miller commented that he has been using Durrain Ferry Road
for many years and felt that is is unreasonable to close the
street. He commented that he will donate land to continue
Britton Street, which would tie Britton Street into Durrain
Ferry Road.
Ordinance - Approving Second and Final Reading on Annexation
of Certain Properties Belonging to Mobay Chemical Corporation
This is the second and final reading on the annexation
80914 -21
Minutes of the Regular Meeting - September 14, 1978
of a portion of the Mobay Chemical property. This annexation
is being completed in accordance with the City's industrial
district policy. The Administration recommended approval of
the ordinance.
Councilman Lander moved for adoption of the ordinance;
Councilman Kloesel seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2516
AN ORDINANCE PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY
LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND THE ANNEXATION OF
CERTAIN TERRITORY, WHICH SAID TERRITORY LIES ADJACENT TO AND
ADJOINS THE PRESENT BOUNDARY LIMITS OF THE CITY OF BAYTOWN,
TEXAS.
Ordinance - Including Certain Property Belonging to Mobay
Chemical Corporation in the Proper Council District
This would place the newly annexed property belonging
to Mobay Chemical Corporation in Council District No. 4.
This property is contiguous with Council District No. 4 and
does not abut any other Council District. At present, no
one resides on this property. The Administration recommended
approval of the ordinance.
Councilman Kloesel moved for adoption of the ordinance;
Councilman Johnson seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2532
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
ADDING CERTAIN PROPERTY TO COUNCIL DISTRICT NO. 4; REPEALING
ORDINANCES INCONSISTENT HEREWITH; CONTAINING A SAVINGS
CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE
HEREOF.
Ordinance - Prohibiting Angle Parking Within the Right -of-
Way on Bayway Drive
At its July 13 meeting, Council considered this item
and at that time, Council delayed action for 60 days to give
the property owners notice of the proposed action. The
Administration has discussed this matter with the managers
of the Aroma Cafeteria which will be the most affected.
Aroma Cafeteria will lose a few parking spaces. The managers
of the Aroma understand the reason for the prohibition. The
Administration recommended approval of the ordinance.
Councilman Kloesel inquired if the Administration had
been able to contact any of the other property owners or
businesses on Bayway. Mr. Lanham explained that other
businesses were not contacted because most of the businesses
in this vicinity do not require very much parking space.
The angle parking in front of Aroma Cafeteria is now being
utilized by employees.
Councilman Johnson moved for adoption of the ordinance;
Councilman Kloesel seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
80914 -22
Minutes of the Regular Meeting - September 14, 1978
ORDINANCE NO. 2533
AN ORDINANCE PROHIBITING ANGLE PARKING WITHIN THE RIGHT OF
WAY OF BAYWAY DRIVE; PRESCRIBING A MAXIMUM PENALTY OF TWO
HUNDRED AND N01100 ($200.00) DOLLARS; AND PROVIDING FOR THE
PUBLICATION AND EFFECTIVE DATE HEREOF.
Ordinance - Authorizing the Purchase of a Sewer Easement
from Jack Howard
With the development of a fast -food store at the intersection
of McKinney Road and State Highway 146, it was discovered
that the city's sanitary sewer line is not located within
the easement but on private property. An appraisal was made
where the sum of $1,860.00 was established as the property's
value. The city offered the appraised value for the property
which has been accepted by Jack Howard, the owner of the
property. The Administration recommended approval of the
ordinance.
Councilman Lander moved for adoption of the ordinance;
Councilman Johnson seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2534
AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN EASEMENT
ACROSS LAND OWNED BY JACK A. HOWARD AND W. FLOYD HOWARD;
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN OF THE SUM OF ONE
THOUSAND EIGHT HUNDRED SIXTY AND N01100 ($1,860.00) DOLLARS;
AND PROVIDING FOR THE EFFECTIVE DATE HEREOF.
Ordinance - Awarding the Annual Contract for Water and
Wastewater Supplies
Four bids were received for the city's estimated annual
supply of water and wastewater supplies. The Purchasing
Department sent notices to bid to 27 companies, but received
only one bid that met all the specifications, the bid of
Utility Supply. Utility Supply's bid on estimated quantities
is $245,297.52 less a 12% discount if all the bid is accepted.
Council also received a copy of cost comparisons of the bids
that were received and what is currently being paid - -there
are some significant increases. Mr. Lanham expressed concern
that the City only received one complete bid. He stated
that the city has been buying from this company for a number
of years and has received good service.
Mr. Lanham explained that if Council approves the money
that the Administration requested in revenue sharing to
begin the water meter replacement, this will be a significant
item because the city plans to buy approximately 2,200
meters next year. The Administration recommended approval
of the ordinance.(See Bid Tabulation Page 90914 -22a)
In response to a question from Councilman Kloesel, Mr.
Lanham explained that the meters bid are Rockwell meters
which have provided good service in the past. Mr. Lanham
remarked that he felt that these increased costs is an
indication that the city should examine the tapping fees.
Councilman Lander moved for adoption of the ordinance;
Councilman Kloesel seconded the motion.
Councilman Cannon inquired if the city would be permitted
to go out for six -month contracts because many times, companies
do not want to be committed for an entire year and this
might resolve part of the cost problem. Mr. Lanham stated
�jTL �. WATER AND WASTEWATER SUPPLIES
31 D� 739 -s7
SATE= September 5> 1978 - 9:30 a.m.
'TEM QTY DESC R t PT10N
SECTION 1. - REPAER CLAMPS
SECTION ll. - BRASS FITTINGS
SECTION 111. - IRON FITTINGS
SECTION IV. - GALVANIZED FITTINGS
SECTION V. - POLYETHYLENE PIPE
ECTION Vl. - ASBESTOS - CEMENT PIPE
ECTION V11.- CAST IRON CASTINGS
ECTION V111. - METER BOXES
ECTION IX. - POLYVINYL PIPE
ECTION X. - FIBERGLASS MANHOLES
ECTION Xl. - WATER METERS
Twenty Seven Companies were
mailed notices to bid.
GROSS TOTAL
LESS DISC.
• ,�1 ET .TOTAL
DELI'v ERY
t3U914 -22a
CITY OF BAYTOU�.�V
• B1D TABULATI QN .
�.
UTILITY SUPPLY UTILITY SUPPLY SOUTHWEST SUPPLY THE MARQUE CORP. NEPTUNE WATER MET
UNIT EXTENDED UNIT EXTENDED UNIT XTENOEO UNIT EXTENDED UNIT EXTENDED
Ic
I
$216,251.00 $245,297.52
13,319.20
$15,135.45
*
$ 8 >339.77
0 BID
NO B(0
ix
•
18,353.10
20,727.96
�r
1 2 .12
3, 33
0 B1D
NO BlD
��•
23,547.69
26,757.15
*
1 67.76
5,5
0 BID
NO BID
��
128.16
144.92
NO .BID
0 BID
NO BID
2,800.00
3,075.00
•
2,591.26
0 BID
NO 810
13,651.35
15,502.12
14,010.60
0 B1D
NO B!D
�•-
7,856.75
8,927.40
*
2,516.00
0 BID
NO B!D
�5,63i.30
b,396.10
�
6,565.50
0 slD
NO B1D
�
e
39,972.63
45,247.48
zt
38,459.09
0 BID
iJ0 BID
�
6,891,32
•7,830.99
NO BlD
$ 8,175.00
NO BID
Ei
!�
•
84,099.50
95,552.95
63,677.65
NO BID
583,187.50
;i
1 E,960.74:�
y'�
BASE BID
LESS 12� BASE BID
*INCOMPL
TE SECTION
lF ALL S
CTIONS
ACCEPTED
+
.,
$216,251.00 $245,297.52
N
80914 -23
Minutes of the Regular Meeting - September 14, 1978
that a solution to part of the problem could be to take bids
separately on water meters. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2535
AN ORDINANCE APPROVING THE PURCHASE OF WATER AND WASTEWATER
SUPPLIES BY ACCEPTING THE BID OF UTILITY SUPPLY COMPANY FOR
SECTION NO. I THROUGH XI OF THE CITY OF BAYTOWN BID NO. 789-
87 AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN IN THE
AMOUNT OF TWO HUNDRED SIXTEEN THOUSAND TWO HUNDRED FIFTY -ONE
AND N01100 ($216,251.00) DOLLARS.
Public Hearing on the Request of Houston Lighting and
Power Company for Rate Increase
Mayor Hutto opened the public hearing on the request of
Houston Lighting and Power Company for a rate increase at
7:00 p.m.
Scott Bounds, City Attorney, explained that Houston
Lighting and Power Company has presented an application to
City Council requesting approval of a general rate increase.
This request was to be effective as of August 21, 1978.
However, Council suspended that effective date 120 days
pending investigation of the reasonableness of the request.
Section 43c of the Public Utility Regulatory Act, under
which the city now exercises its authority to regulate
utility rates, provides that the City shall hold a hearing
within 30 days from the proposed effective date in every
case where there is a major change in rates. In order to
meet this statutory deadline, this hearing was called. Next
Monday, the Public Utilities Commission opens its hearing on
the rate increase proposal. Those hearings will extend
through the week of October 2. In order to avoid any conflict
with those hearings and in order to use the material developed
for those hearings, Mr. Bounds advised Council to recess the
public hearing until October 19 and to direct H L & P to
make a presentation at that time regarding the proposed rate
increase.
Councilwoman Wilbanks moved to recess the public hearing
until October 19, 1978, at 7:00 p.m., and requested that
H_-L_& P make a presentation to Council at that time; Councilman
Johnson seconded the motion.
In response to a question from Council, Mr. Bounds
explained that the hearing could be held at anytime, but the
19th was suggested to allow H L & P ample time for the
preparation of their presentation.
In response to a question from Councilman Lander, Mr.
Bounds explained that the cities are required to make a
presentation to the Public Utilities Commission on Monday.
A great deal of that that testimony will be reduced to
writing. The Public Utilities staff will present its testimony
the following week. The main portion of the hearing will
begin the week of October 2. A large amount of the information
will be reduced to writing which will be made available to
City Council. The city in cooperation with the City of
Houston has retained Touche Ross. This firm has prepared a
presentation for the cities to present to the Utilities
Commission on Monday. After the hearing before the Commission,
Touche Ross will hopefully understand the status of H L &
P's request. Therefore, the city might plan to have Touche
Ross representatives attend the October 19 meeting to discuss
80914 -24
Minutes of the Regular Meeting - September 14, 1978
this further with Council. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
At this time, Mayor Hutto recessed the public hearing
until October 19, 1978, at 7:00 p.m.
Ordinance - Awarding the Bid for Police Department Brake
and Alignment Svstem
Seven bids were received for the purchase of brake and
wheel alignment systems for the Police Department garage.
The bid tabulation follows:
WHEEL ALIGNMENT BRAKE LATHE BRAKE LATHE
SYSTEM & GRINDER
Richard Holley
Co. $6,150.00 $2,400.00 $3,500.00
J.V. Equipt.
Co. $6,382.65 $3,468.00 $4,936.80
Hunter Equipt.
Co. $9,384.00 $3,769.00 $5,162.50
Vasco Equipt.
Co. $8,029.90 $2,630.00 $3,600.00
Marand Sales
Co. $6,500.00 $2,720.00 $3,376.00
Bratten Equipt.
Co. $8,088.25 $2,523.00 $3,604.00
The recommended bidder for the wheel alignment system is
Vasco Equipment Company in the amount of $8,029.90. Lower
bids which were submitted did not meet specifications.
Bidders were given the option of bidding on a brake lathe or
brake lathe with grinder. The Administration recommended
acceptance of the bid of Marand Sales Company for the amount
of $3,376.00 for the brake lathe with grinder. This is the
low bid that meets specifications. The proposed ordinance
awards the bid for the alignment system to Vasco Equipment
Co. and the bid for the brake system to Marand Sales Co.
The Administration recommended approval of the ordinance.
Councilman Johnson moved for adoption of the ordinance;
Councilman Cannon seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2536
AN ORDINANCE APPROVING THE PURCHASE OF A WHEEL ALIGNMENT
SYSTEM BY ACCEPTING THE BIDS OF VASCO EQUIPMENT COMPANY FOR
ITEM NO.1 AND MARAND SALES COMPANY FOR ITEM NO. 2B; AND
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN FOR EACH ITEM AS
SET OUT BELOW.
Ordinance - Authorizing Final Payment of Country Club
Water Line Replacement Contract
The Administration recommended that Council pass a
revised ordinance which has been placed at the Council
80914 -25
Minutes of the Regular Meeting - September 14, 1978
table, finding that the construction of this water line is
substantially complete, but withholding $15,000 because the
contractor was unable to complete the cleanup due to rain.
Councilman Lander moved for adoption of the ordinance;
Councilman Johnson seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2537
AN ORDINANCE FINDING THAT THE CONSTRUCTION OF THE COUNTRY
CLUB WATER LINE REPLACEMENT PROJECT IS SUBSTANTIALLY COMPLETED
IN ACCORDANCE WITH THE TERMS OF THE CONTRACT; ACCEPTING THE
CONSULTING ENGINEERS' CERTIFICATE OF SUBSTANTIAL COMPLETION;
AUTHORIZING THE PAYMENT TO R.T. BISHOP CONSTRUCTION COMPANY,
INC. AND R. T. BISHOP, JOINT VENTURE, OF A SUM SUFFICIENT TO
INCREASE TOTAL PAYMENT TO ONE HUNDRED PERCENT (100 %) OF THE
CONTRACT SUM, LESS RETAINAGES SPECIFIED BY THE ENGINEERS FOR
ALL INCOMPLETE WORK AND UNSETTLED CLAIMS AND PROVIDING FOR
THE EFFECTIVE DATE HEREOF.
Ordinance - Approving and Accepting the Sterling Municipal
Library Expansion and Authorizing Final Payment to
Spaw- Glass, Inc.
Several months ago, Council found this building to be
substantially complete and authorized payment with the
exception of $1,350.00. This final payment was delayed
because of the need to install an exterior tile band on the
building which work has been completed. The Administration
recommended approval of the ordinance.
Councilman Kloesel moved for adoption of the ordinance;
Councilman Lander seconded the motion.
Councilwoman Wilbanks inquired about the Library air
conditioning. Flora Wilhite, Director of Sterling Municipal
Library, explained that she had talked with Les McDonald,
the designer of the air conditioning system. Mr. McDonald
is trying to resolve the problem. When the air conditioning
is not working properly, a serviceman is dispatched promptly.
However, Currie, the firm that worked with Spaw -Glass on
this project, has billed for service beyond the warranty
date which was February 1978. No bills have been received
from Spaw -Glass for this service.
Mr. Lanham suggested that Council could delay taking
action on this item until the Administration can talk with
the architect.
Mayor Hutto commented that in a job of this magnitude,
it is frivolous to think that holding up $1,350 will make
much difference to the contractor and he felt that Council
should authorize final payment. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2538
AN ORDINANCE APPROVING AND ACCEPTING
STERLING MUNICIPAL LIBRARY EXPANSION
FINDING THAT THE IMPROVEMENTS ARE IN
TERMS OF THE CONTRACT; ACCEPTING THE
OF FINAL ACCEPTANCE; AUTHORIZING THE
SAID SPAW- GLASS, INC. AND PROVIDING
HEREOF.
CONSTRUCTION OF THE
BY SPAW -GLASS INC.;
ACCORDANCE WITH THE
ARCHITECTS' CERTIFICATE
FINAL PAYMENT OT THE
FOR THE EFFECTIVE DATE
80914 -26
Minutes of the Regular Meeting - September 14, 1978
Ordinance - Accepting Certain Properties in the Brownwood
Subdivision
Mr. and Mrs. Roland Armstrong own Lot 15, Block F of
the Brownwood Subdivision. They would like to dedicate this
lot to the City of Baytown at no cost to the City. The
Armstrong's have moved a residence off this property. It no
longer serves any purpose for them and they would like to
donate the land to the City at this time in anticipation
that the Brownwood Relocation Project will be implemented.
If the City accepts this property, it will have the responsibility
of maintaining it. The Administration recommended approval
of the ordinance.
Councilman Kloesel moved for adoption of the ordinance;
Councilman Johnson seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2539
AN ORDINANCE ACCEPTING THE LAND DEDICATION BY ROLAND P.
ARMSTRONG AND MARY M. ARMSTRONG: DIRECTING THE CITY CLERK TO
FILE SAID DEDICATION WITH THE COUNTY CLERK OF HARRIS COUNTY,
TEXAS, AND PROVIDING FOR THE EFFECTIVE DATE HEREOF.
Ordinance - Awarding the Bid for the Demolition of Dilapidated
Buildings
Six bids were received for the demolition of the old
Goldfield Building located at 13 N. Main just north of the
Chamber of Commerce Building. The bid tabulation follows:
COMPANY LOCATION COMPLETION TIME COST
Angel Eqpt. 13 N. Main 30 days $10,500.
to 1112 Daniel 30 days 3,000.
Walkers Serv.
13. N. Main
10 -20 -78
8,800.
of
1112 Daniel
10 -5 -78
1,350.
A -1 Home Imp.
13 N. Main
10 days
7,755.
to
1112 Daniel
2 days
800.
Olshan Demo.
13 N. Main
30 days
6,400.
"
1112 Daniel
30 days
1,050.
Martin & Sons
13 N. Main
60 days
7,864.50
it
1112 Daniel
30 days
852.
Savell Const.
13. N. Main
3 weeks
9,500.
"
1112 Daniel
3 weeks
5,000.
Olshan Demolition Company submitted the low bid in the
amount of $6,400. The Urban Rehabilitation Board has studied
the bids and recommended that the bid be awarded to Olshan
Demolition Company. This building is in a badly deteriorated
state. The Legal Department is working on clearing up the
taxes owed on this property. The Administration recommended
approval of the ordinance.
Councilman Lander moved for adoption of the ordinance;
Councilman Johnson seconded the motion.
In response to a question from Councilman Kloesel, Mr.
Lanham explained that the only demolition bids that are
brought before Council are the ones totalling over $2,000.
80914 -27
Minutes of the Regular Meeting - September 14, 1978
The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Nays: None
ORDINANCE NO. 2540
AN ORDINANCE ACCEPTING THE BID OF OLSHAN DEMOLISHING COMPANY,
INC. FOR THE DEMOLITION OF THE STRUCTURE AT 13 NORTH MAIN
STREET; AUTHORIZING EXECUTION OF A CONTRACT FOR SIX THOUSAND
FOUR HUNDRED AND NO 1100 ($6,400.00) DOLLARS; MAKING VARIOUS
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT.
Councilman Kloesel inquired about the demolition of a
building on Minnesota Street which had burned but never had
been cleared away. Jack Cramer, Chief Building Inspector,
commented that his department is working on that at the
present time.
Ordinance - Setting Construction Speed Limits on a Portion
of Loop 201
Council received a copy of a letter from Omer F. Poorman,
District Engineer for the State Department of Highways and
Public Transportation. In his letter, Mr. Poorman requests
that the City of Baytown establish a construction speed zone
along that portion of the proposed Loop 201 which extends
between Decker Drive and State Highway 146. The Highway
Department anticipates letting a contract to construct
structures, grading, and storm sewers along this portion of
the Loop in December, 1978. The proposed ordinance sets the
construction speed limit at 35 MPH for this portion of the
Loop. The Administration recommended approval of the ordinance.
Councilman Lander moved for adoption of the ordinance;
Councilman Kloesel seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 2541
AN ORDINANCE EXTABLISHING SPEED LIMITS DURING CONSTRUCTION
ON A PORTION OF LOOP 201 WITHIN THE CORPORATE LIMITS OF
BAYTOWN AND PROVIDING A PENALTY FOR THE VIOLATION THEREOF.
Resolution - Authorizing the City Manager to Make Application
for a CETA Program Grant Through Harris County
The next two items would authorize the City Manager to
make application for CETA Program Grants through Harris
County. The first program would be similar to programs
which the city has operated in the past. Under the terms of
the proposed program, the city would employ 12 individuals
under the Title VI CETA Program. These individuals would
have to meet certain income and employment guidelines and
Harris County would certify their eligibility under the
program. The City would be responsible for providing work
opportunities for these employees and assisting in their
learning both good work habits and work skills. Harris
County would provide federal funds to cover the employees
salaries and fringe benefits. The Administration plans to
use these employees in the Municipal Court, Library, Meter
Department, Police, and Public Works. The Administration
recommended approval of the resolution.
Councilman Johnson inquired if this is a successful
program. Mr. Lanham explained that this program has proven
80914 -28
Minutes of the Regular Meeting - September 14, 1978
to be successful in the past, and many of the people who
were employed under CETA were moved into permanent positions
in the city when vacancies occurred.
The second proposed resolution would authorize the City
Manager to make application for a Title III CETA Youth
Program Grant through Harris County. Under the terms of
this proposed application, the City would hire 16 youths
between the ages of 16 and 19. This program is directed
primarily toward high school drop -outs. These employees
would be placed at city job sites and would work under the
direction of city employees. These individuals would be
paid directly by Harris County Manpower. The Administration
recommended approval of the resolution.
Councilman Kloesel moved for the adoption of Resolution
No. 641 and Resolution No. 642; Councilman Johnson seconded
the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
RESOLUTION NO. 641
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING THE CITY MANAGER TO MAKE APPLICATION FOR
A CETA GRANT UNDER THE EMERGENCY JOBS AND EMPLOYMENT ACT.
RESOLUTION NO. 642
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING THE CITY MANAGER TO MAKE APPLICATION FOR
A CETA YOUTH PROGRAM GRANT UNDER THE EMERGENCY JOBS AND
EMPLOYMENT ACT.
Consider Establishment of a Private -Use Airport
The Administration has received a notice from Kenneth
Stephenson, Airspace Specialist for the Federal Aviation
Administration's Southwest Region Office in Fort Worth. In
this notice, Mr. Stephenson indicates that Steve Hebert and
Bill Roberts are proposing to construct a private -use airport
in the vicinity of McNair, Texas. The private -use airport
would be relatively close to the proposed site for the
Baytown Municipal Airport. It is estimated there will be 30
single engine aircraft and 10 multi - engine aircraft with 400
landings per month within 5 years. IFR operations are
planned within 5 years. The Administration felt that the
private -use airport would interfere with the development of
the proposed municipal airport. The Administration requested
authorization to submit comments to the FAA opposing the
location of this private -use airport because of the impact
it will have on the development of the proposed Baytown
Municipal Airport.
Councilman Kloesel commented that his reservation is that
the city might be moving into this opposition too rapidly.
He inquired as to the amount of time available to oppose the
application. Mr. Lanham responded that the city has until
September 30, 1978.
Mayor Hutto pointed out that Council could oppose the
application and could withdraw opposition if the city's
proposed municipal airport location does not prove feasible.
Councilman Cannon commented that Council is giving
consideration to the Humphrey Airport at the present time,
and the city does not want to hurt existing private enterprise.
80914 -29
Minutes of the Regular Meeting - September 14, 1978
He felt that the Council should protect its interests in
that area by going on record as opposed to the location of
the private -use airport.
Councilman Lander commented that he, too, has some
reservations similar to Councilman Kloesel because the
city's proposed airport is not a 100% certainty. However,
Council does need to make it known that the municipal airport
is being considered seriously. It would be a safety hazard
to have two airports in such close proximity.
Councilman Cannon stated that if the city's proposed
airport does not go through, he would be glad to withdraw
any opposition to the private -use airport.
Councilman Kloesel favored Council meeting with the
proponents of the proposed private -use airport. He felt
that Council should take some time to make a decision and
felt that Council could make a decision on this at the last
Council meeting in September.
Councilman Cannon commented that Council has the opportunity
to go on record as opposing any additional airport in the
area until the city's own proposed site is resolved. Should
the FAA not approve the city's proposed site, the Council
could then withdraw the opposition to a proposed private
enterprise airport.
Councilman Kloesel moved to postpone action on this
item until the next Council meeting. The motion died for
lack of a second.
Councilman Lander moved that Council go on record as
opposing the establishment of the private -use airport;
Councilman Cannon seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Wilbanks,
Caffey, and Cannon
Mayor Hutto
Nays: None
Abstained: Councilman Kloesel
Review a Policy Established on Placement of Buoys and
Consider Proposing a Resolution Requesting that the
State Legislature Amend the Law Regarding Recreational
Fishing
At the last Council meeting, Councilman Kloesel requested
that an item be placed on the agenda regarding the buoys
which restrict recreational fishing in Scott, Burnett and
Crystal Bays. Council received a copy of a memorandum from
Randy Strong, Assistant City Attorney. Mr. Bounds commented
that basically the memorandum outlines the state law that
has applied and presently applies to shrimping in these
bays. Prior to the placement of the buoys, Section 77.089
permitted a person to catch shrimp for bait at any time of
the year by use of a manually operated net. A possession
limit of two quarts of shrimp per person or four quarts of
shrimp per boat is established by this section. After the
buoys were placed in the bays, it made effective a state law
that already existed that prohibited shrimping or fishing by
the use of a seine, drag line, fyke, setnet, trammel net,
trap, dam, or weir from a bay in Harris County within one
mile of the limits of a city. A 1977 Attorney General
Opinion stated that this statute also prohibited the use of
a trawl. At the present time, this statute would control
over the prior state laws and would prohibit any use of nets
to take shrimp or fish from these bays. At this time, a
sports fisherman is not prevented from using a rod and reel
or similar device to catch fish. Section 201.016 allows a
person to use up to three crab traps in Burnett, Crystal, or
Scott Bays, and does not place any restriction on the use of
crablines, hooks, lines, or trot lines usually employed for
the catching of crabs.
80914 -30
Minutes of the Regular Meeting - September 14, 1978
Councilman Kloesel stated that the complaints he receives
have to do with wording on the buoys. Four buoys state "no
fishing" and the remainder of the buoys state "restricted
fishing and shrimping." Mr. Bounds explained that the
wording on the buoys has no effect upon the state statute.
Councilman Kloesel commented that the fisherman does
have the responsibility to know the law but felt that the
city needs to have the wording to indicate that there is
restricted fishing and shrimping along with a short reference
to the law below the wording. Councilman Kloesel also
expressed concern that the Game Wardens may not be cooperating
with the citizens when questions are raised.
Mayor Hutto commented that the buoys are not large and
the writing is small, but the wording "no fishing" is in
error because fishing is permitted by rod and reel but not
permitted by net.
Councilman Kloesel inquired if the wording "restricted
fishing" is to be written on all buoys. Mr. Lanham explained
that the four buoys with the wording "no fishing" were left
in the bays after the original buoys disappeared, and the
wording can be changed on those four buoys to state "restricted
fishing."
Mayor Hutto recognized Dick Manning, who suggested that
to be consistent with what the law specifies and with the
limitation of space on the buoys, the city could be very
precise and avoid all confusion by putting the words "no
netting" on the buoys.
Mr. Bounds stated that the wording on the buoys was
worked out with the Parks and Wildlife Department, and the
Administration would need to discuss the changed wording
with that department.
Councilwoman Wilbanks felt that Council would not be
able to resolve this problem by changing wording on a sign.
She felt that if Council would indicate that it is "restricted
fishing ", it would be encumbent on the city and the state to
have material available to inform the people what is meant
by a restricted fishing area.
Councilman Lander commented that there are thousands of
laws that citizens do not understand and the city is not
able to keep a stack of laws and pamphlets to educate everyone
on everything. This is not the responsibility of the city,
but is the responsibility of each individual to know the
law.
Mayor Hutto recognized a woman in the audience who
commented that she is a sports- minded person, and as such,
any person who does fishing and shrimping should know the
law before they do so.
Mr. Lanham assured the Council that the four buoys that
have "no fishing" will have the wording changed to be consistent
with the other buoys.
Consider Request of Property Owners for Water and Sewer
Service Outside the City Limits
Five property owners who own property along Bush Road
outside the city limits have requested that the city provide
water and sewer service to them. They are developing plans
and specifications for approval by the City Engineer. If
this request is approved, the cost of installing the necessary
water and sewer services will be paid. Also, the property
owners will pay twice the minimum and one and one -half times
the normal rates over the minimum for these services, plus
80914 -31
Minutes of the Regular Meeting - September 14, 1978
the $100 buy -in charge for sewer service. Mr. Lanham commented
that he felt this area will someday be annexed by the city.
The Administration recommended approval of the request.
Councilman Johnson moved for approval of this request
for water and sewer service outside the city limits; Councilman
Johnson seconded the motion. The vote follows:
Ayes: Council members Lander, Johnson, Kloesel,
Wilbanks, Caffey, and Cannon
Mayor Hutto
Nays: None
Consider Appointments to the BAWA Board
Councilman Kloesel stated that he strongly felt that
the appointments to the BAWA Board and any major board of
the city should be made in a public meeting. He further
emphasized that he does not consider this a personnel matter.
His view of personnel matters consists of discussing employees
of the city. Since the BAWA Board has a large budget to
deal with and much business to transact, he felt that the
appointments should be made in public.
Mayor Hutto pointed out that the city's policy has been
to appoint the members in public but if there is any discussion
regarding the people involved, this has been done in executive
session.
Councilman Kloesel moved that the appointments to the
BAWA Board be made in public and any discussion related to
the appointment of this Board be made in public. Councilman
Klosesl inquired if state action would be required in order
for this Board to be elected. Mr. Bounds stated that this
is correct. The motion died for lack of a second.
Councilman Kloesel asked that a resolution be prepared
for the next meeting, asking that the state change this
power to an elected board.
Councilman Lander mentioned that this action would
remove the jurisdiction of BAWA from the City Council.
Councilman Kloesel felt that there are too many appointed
boards which are responsible to the Council but are not
responsible to the city.
Councilman Lander felt that such appointments can be
discussed more thoroughly in closed session because Council
would be reluctant in some cases to discuss prospective
appointees in an open session. Councilman Lander stressed
that if the boards are elected boards, they will operate
independently of Council.
Committee Reports
None.
Unfinished Business
None.
Recess and Reconvene
Mayor Hutto recessed the open meeting into executive
session to discuss personnel matters.
*Councilman Kloesel did not attend the executive session.
When the open meeting was reconvened, the following
business was transacted:
80914 -32
Minutes of the Regular Meeting - September 14, 1978
Appointments to the BAWA Board
Councilman Lander moved for the reappointment of Peter
R. Buenz and Harry Hartman to the Baytown Area Water Authority
Board; Councilman Cannon seconded the motion. The vote
follows:
Ayes: Council members Lander, Johnson, Wilbanks,
Caffey, and Cannon
Mayor Hutto
Nays: None Abstained: Councilman Kloesel
Councilman Kloesel inquired about the makeup of the
members of the BAWA Board. Mr. Lanham explained that Robert
Gillette - Chairman, I. J. Butrick - Vice - President, Peter
Buenz - Secretary, and Tillman O'Brien, Jr. and Harry Hartman -
Board members.
Adjourn
With no further business to be transacted, Councilman
Johnson moved for adjournment; Councilwoman Caffey seconded
the motion. The vote for adjournment was unanimous.
Karen Petru, Deputy City Clerk
APPROVED: