ORD CC 1980-60 - Certificate of Obligation - Refuse containers• •
ORDINANCE NO. 80-60
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, AUTHORIZING THE ISSUANCE OF A SERIES OF THREE "CITY
OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION CERTIFICATES OF
OBLIGATION," FOR FRONT LOADING REFUSE CONTAINERS IN THE
AMOUNTS OF $7,056.00, $2,598.00 and $4,323.00; AND CONTAINING
OTHER PROVISIONS RELATED THERETO.
WHEREAS, the City Council of the City of Huntsville received competitive
bids for front loading refuse containers and awarded a contract for the
purchase of such equipment in accordance with Texas Revised Civil Statute
Article 2368a.1; and
WHEREAS, the City authorized the publication of a notice of intention to
issue Certificates of Obligation, payable from City ad valorem taxes, for
the purpose of evidencing the indebtedness of the City for all or part of
the purchase of front loading refuse containers at an amount not to exceed
$15,000; and
WHEREAS, the notice of intention to issue Certificates of Obligation was
published at the times and in the manner required by Texas Revised Civil
Statutes Article 2368a.1 on October 9, 1980 and October 16, 1980; therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: The City Council ratifies the contracts to purchase front loading
refuse containers and hereby confirms the purchase of such equipment
as follows:
Sunbelt Environmental Systems
Duncan Equipment
War Pac, Inc.
$7,056.00
$2,598.00,
$4,323.00
Section 2: A series of three interest bearing Certificates of Obligation
of the City of Huntsville, Texas, to be known and designated as "City
of Huntsville, Texas, Equipment Acquisition Certificates of Obligation"
are hereby authorized to be issued and delivered in the principal
amounts of $7,056.00, $2,598.00 and $4,323.00 for the purpose of ac-
quiring front loading refuse containers, respectively, for use by the
City, and the Mayor and City Secretary shall have joint control of
such certificate for the purpose of delivering same to the owners in
accordance herewith.
Section 3: The Certificates shall be dated November 5, 1980, shall mature
and be payable in four (4) equal installments (subject to the City's
option of prior payment), and shall be registered as hereinafter set
forth, and shall be in the following basic form, to-wit:
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Date: November 5, 1980 Amount: $
Issued: Register No. 80-
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION
The City of Huntsville, a Municipal Corporation of the State of Texas,
acknowledges itself indebted to and FOR VALUE RECEIVED hereby promises to
pay to the registered owner hereof in installments and on the dates as below
indicated the total sum of
($ ), in lawful money of the United States of America, with interest
thereon from date of issue until paid at the rate of per cent per annum,
payable on (Date of Delivery) and annually thereafter on the day of
of each and every year as hereinafter provided until such
aggregate sum is fully paid.
BOTH PRINCIPAL AND INTEREST on this Certificate of Obligation are hereby
made payable in Huntsville, Walker County, Texas, without exchange or collec-
tion charges to the registered owner hereof, with such payments to be due on
the dates and in the amounts as follows:
DATE PRINCIPAL INTEREST TOTAL
1981
1982
1983
1984
The City reserves the right to prepay all or any part of this Certificate
at any time prior to the due date or maturity thereof without premium or penalty
of any kind.
It is hereby certified and recited that all acts, conditions and things
required to be done precedent to and in the issuance of this Certificate of
Obligation, to render the same lawful and valid have been properly done, have
happened and have been performed in regular and due time, form and manner as
required by law; that due and proper provision has been made for the levy of
a direct and continuing annual ad valorem tax against all taxable property
within the said City sufficient to pay the interest on this Certificate of
Obligation as due and to provide for the payment of each installment of prin-
cipal as same matures; that the City has received full value and consideration
for this Certificate of Obligation and that the total indebtedness of the City
of Huntsville, including this Certificate of Obligation, does not exceed any
constitutional or statutory limitation.
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IN TESTIMONY WHEREOF, the City Council has caused the seal of said City
to be impressed hereon and this Certificate of Obligation to be signed by the
Mayor and attested to by the City Secretary, the date of this Certificate of
Obligation being the 5th day of November, 1980,
MORRIS I. WALLER, Mayor
ATTEST:
RUTH DE SHAW, City Secretary
FULL CONSIDERATION therefor being hereby acknowledged, this Certificate
of Obligation was delivered to (Contractor) , the original
holder, on this date, to-wit: (date of initial delivery), and by it hereby
transferred and assigned to (Bank)
(Contractor)
Section 4: While said Certificate of Obligation or installment thereof is
outstanding and unpaid, there shall be annually levied, assessed and
collected in due time, form and manner a tax upon all of the taxable
property in said City sufficient to pay the current interest thereon
and to create a sinking food sufficient to pay each installment of
principal as the same becomes due, or a sinking fund of 2%, whichever
is greater; and in order to pay the interest on said Certificate of
Obligation for the first year and to create a sinking fund with which
to pay the principal as the same becomes due, or a sinking fund of
2%, whichever is greater, there is hereby levied a sufficient tax on
each ONE HUNDRED DOLLARS valuation of taxable property in said City
for the current year and the same shall be assessed and collected and
applied to the purposes named; and while said Certificate of Obligation
is outstanding and unpaid, a tax each year at a rate from year to year
as will be ample and sufficient to provide funds to pay the then current
interest on said Certificate of Obligation and to provide the necessary
sinking fund, full allowance being made for delinquencies and costs of
collection, shall be and is hereby levied for each year, respectively,
and said tax shall each year be assessed and collected and applied to
the payment of the principal of and interest on said Certificate of
Obligation, to be kept separate and apart from all other funds of the
City. The City Council hereby declares and covenants that it will
provide and levy a tax legally and fully sufficient for such Certifi-
cate of Obligation, it having been determined that the existing and
available taxing authority of the City for such purposes is adequate
to permit a legally sufficient tax in consideration of all other out-
standing obligations.
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Section 5: The Mayor and City Secretary are hereby empowered and directed
to proceed with the delivery of said Certificate of Obligation and the
closing of said acquisition at the earliest practicable date and are
authorized to complete the same in accordance with the terms hereof and
to do all things necessary or prerequisite tbereto.
Section 6: The Certificates of Obligation shall bear interest from the date
of initial delivery shown on the face of each Certificate at a rate
per annum not in excess of that prescribed by Article 717k-2, Texas
Revised Civil Statute, as amended.
At the time said Certificate of Obligation is issued such Certificates
shall be registered and recorded by such register numbers on the books
of said City to the registered owner thereof.
Section 7: That the public importance of this measure and the fact that
it is to the best interest of the City to acquire the equipment herein
contemplated at the earliest possible date, for the immediate preserva-
tion of the public peace, property, health and safety of the City and
its citizens, creates an emergency and an imperative public necessity,
and this ordinance shall take effect and be in force from and after
its passage and approval, and it is so orduiued.
Section 8: Notwithstanding any other provisions in the within ordinance to
the contrary as to the authorized issuing date for such Certificates of
Obligation, such Certificates shall be dated and bear interest from date
of delivery and execution by the Mayor and City Secretary.
PASSED AND JpPB[VED on first reading by unanimous vote of the City Council
of the City of Huntsville, Texas, on this the 4th day of November, 1980.
ATTEST:
SHAW, City Secretary
APPROVED AS TO FORM:
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SCOTT BOUNDS, City Attorney