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HomeMy WebLinkAbout06074 ORD - 02/01/1961AH :2 -1 -61 • AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, FOR AND ON BEHALF OF THE CITY, A CON- TRACT WITH M. E. ALLISON & CO., INC., A TEXAS CORPORATION, FOR THE SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL'ADVISOR FOR THE CITY LN CONNECTION WITH THE ISSUANCE OF CERTAIN BONDS, A COPY OF WHICH: AGREEMENT f5 ATTACHED HERE- TO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED AND DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO ENTER INTO AN AGREEMENT WITH M. E. ALLISON & CO., INC., A TEXAS CORPORATION, FOR THE SERVICES OF SAID COMPANY AND M. E. ALLISON AS FINANCIAL ADVISOR FOR THE CITY IN CONNECTION WITH THE ISSUANCE OF CERTAIN BONDS, A COPY OF WHICH AGREEMENT IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THE NECESSITY TO IMMEDIATELY ENTER INTO AN AGREEMENT WITH M. E. ALLISON & CO., INC., AS SET FORTH IN SECTION 1 ABOVE CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST, AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUS- PENDED, AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER I PASSAGE, IT IS ACCORDINGLY PASSED AND APPROVED, THIS / DAY OF �j . , 19 61. APPROVED AS TO LEGAL FORM THIS / DAY OF 1961: CITY ATTORN MAYOR THE CITY OR PUS CH TI, TEXAS • Honorable Mayor and City Commissioners City of Corpus Christi, Texas • Colt, 0'74- 544./ Corpus Christi, Texas 1961 Gentlemen: This proposal is submitted to extend and amend our agreement of August 5, 1959 which agreement provides it may be extended by mutual con- sent. By this proposal we offer our professional services and facili- ties as Financial Advisors and agree to perform the duties set out herein and such other duties as are normally performed by suoh advisors, and to perform all other duties as may be necessary, advisable, helpful and reason- ably proper for your City in,00nneotion with the marketing of your City's bonds during the period of this agreement or aaw extension and amendment thereto. As regards General Obligation Tax Bonds and /or Revenue Bonds we agree: (a) To make a study of the debt structure of your City, the trend of its assessed valuation, its taxing power and the present and estimated future taxing requirements, and on the basis of such study to devise and reoommend for your approval a plan of financ- ing to cover the proposed bonds. Suoh plan shall inolude a sug- gested maturity schedule and other terms and oonditions, suoh as options of prior payment and the like, as will, in our opinion, result in the issuance and sale of the bonds under terms and con- ditions most advantageous to your City. (b) To make a study of the operating results of all of your utility systems and a study in speoial detail of the system against which Revenue Bonds are proposed to be sold, and after taking into account any outstanding obligations which are payable from the net revenues thereof, additional net revenues to arise from proposed rate increases, if any, and additional revenues as projected by your consulting engineers, to devise and recommend for your con- sideration a plan of financing to cover the proposed bonds. Such plan shall include a maturity schedule end other items and condi- tions such as options of prior payment, retention of the right to issue Additional Bonds and the like as will, in our opinion, result in the issuance and sale of the bonds under terms and conditions most advantageous to your City. (o) Under the direction of a firm of recognized Municipal Bond Attorneys to be retained by you and whose fee will be paid by us (except in the issuance of General Obligation Bonds covered by agreements heretofore made by the City with McCall, Parkhurst, Crowe, McCall & Horton), we will supervise, assist and advise you upon steps necessary to be taken in the bond election, the legal issuance of the bonds and the final delivery of the bonds to the purohaser. In this connection it is understood that you havd re- tained or will retain the firm of McCall, Parkhurst, Crowe, McCall & Horton, whose legal services will also include rendition of an unqualified approving opinion as to the legality of the bonds. - 1 - • • • • (d) To advise you of current bond market conditions, forthcoming bond issues and other general information and economic data which might normally be expected to influence interest rates or bidding conditions so that the date for the sale of the toads can be set at a time which in our opinion will be favorable. (e)To prepare and pay the coat of printing: 1. Offioial Notice of Sale into which shall be incorporated all necessary information as to time and plane of bond sale, the conditions under which the bonds will be awarded end the terms and conditions of delivery. 2. Prospectus, which shall be fully desoriptive of the bonds offered and which shall additionally contain complete in- formation on the issuing agency of the nature and to the extent ordinarily required by municipal securities dealers in bidding on bonds of the character offered. 3. Uniform Bid Form, containing provisions recognized as standard by the municipal securities industry. 4. Bond Rating. To submit to the national bond rating agenoies financial and economic data necessary to obtain a rating on the proposed issue. All of the material referred to in paragraphs 1 -3 above will be furnished in a sufficient number of copies to permit mailing to a list of prospective bidders, insuranoe com- panies, banks and bond rating institutions. Our mailing list of such institutions will be made available to your City. (f) We will procure and deliver to suoh official as you may de- signate suoh seta of election supplies, including ballots (but exoluding voting machines and voting booths) as are required for each poling place. (g) To attend to and pay for the printing of the bonds. (h) To pay any charges by the Attorney General for his approv- ing opinion and for the registration of the bonds by the Comp- troller of Public Accounts and the delivery of the bonds to the purchaser at a beak in Austin, Texas. We agree to direct and coordinate the entire program of finenoing herein contemplated and to assume and pay the expenses above enumerated and d such other incidental costs and expenses as are deemed necessary by us sad approved by us. It is specifically understood and agreed, however, that this ob- ligation on our part shall not Dover post of publication of election notices or the expenses of any litigation. As consideration for the services rendered by us and as reimburse- ment for the expenses which we are to incur, it is understood and and agreed that your City is to pay and we are to accept a cash fee to be computed on the basis of the fee schedule currently recommended to be the minimum by the Municipal Advisory Council of Texas, as follows: - 2 - • • • GENERAL OBLIGATION BOMB And Not More Then: More Thep Fee is; $ -0- $ 50,000 $21.50 per $1,000 50,000 150,000 $1,075 plus $6.50 per $1,000 for all over $50,000 150,000 250,000 $1,725 plus $5.50 per $1,000 for all over $150,000 250,000 350,000 $2,275 plus $5.00 per $1,000 for all over $250,000 350,000 500,000 $2,775 plus $4.00 per $1,000 for all over $350,000 500,000 700,000 $3,375 plus $3.50 per $1,000 for ell over $500,000 700,000 1,000,000 $4,075 plus 03.25 per $1,000 for all over $700,000 1,000,000 1,500,000 $5,050 plus $3.00 per $1,000 for all over 01,000,000 1,500,000 2,500,000 $6,550 plus $2.00 per $1,000 for all over $1,500,000 2,500,000 5,000,000 $8,550 plus $1.75 per $1,000 for all over $2,500,000 5,000,000 no limit $12,925 plus $1.00 per $1,000 for all over $5,000,000. REVENUE BONDS. The fee for Revenue Bonds issued in a single install- ment shall be the amount as computed from the above schedule for General Obligation Bonds plus 25%. Multiple Installments. When bonds (general obligation or revenue) are issued in multiple installments the fee for each installment shall be oom- puted as 125% of the pro rata part of the total fee which would otherwise be due upon issuance of ell bonds covered by the contract in a single in- stallment. (For example, if $800,000 of Revenue Bonds covered by the con- tract are issued in three installments of $400,000, $300,000 end $100,000 respectively, the fee due on the installments is $3,437.50; $2,578.12 and $859.38 respectively). Such fees shall become due and payable simultaneously with the de- livery of the bonds to the purchaser. In the event the bond eleotion or elections contemplated by this pro- posal should fail, then the fee due us shall be $250.00 plus $10.00 for each voting precinct, however, should the same or similar propositions again be submitted at an election held within twelve months from the date hereof, then at our option the agreement oovered by this proposal shall apply to any bonds authorized at such election. In the event the said bond election should oerry as to one or more of the propositions sub- mitted, then this proposal shall apply to said issues which carry and terminate as to all others without any fee being due us for those issues Which fail. • • • Should M. E. Allison become unable to personally render the services required under this agreement the City may terminate it without liability for fees for unissued bonds. It is understood and agreed that the offioials of your City will cooperate with us and the heretofore mentioned bond attorneys in the pas - sage of all necessary orders or resolutions ard in the completion of all certificates required in the iesuanoe of the bonds. This agreement shall be terminated on April 1, 1962, but may be ex- tended by mutual consent. This proposal is submitted in duplioate originals. When accepted by you it will constitute the entire agreement between your City and the under- signed for the purpose and considerations herein apeoified. Your ac- ceptance will be indicated by the isgnature of your City Manager, attested by your City Secretary, on both copies and returning one exeouted copy to US. Respectfully submitted, M. E. ALLISON & CO., INC. 1615 National Bank of Commerce Bldg. San Antonio, Texas M. E. Allison,President yi' .may ijj gyp{ y va', {, ACCE TED BY THt:CYTY Or CORPU$ CHRISTI. OH 'THE.COIIDITION,HOVEYER,,THAT2 4A).,Img BONDS ALREADY AUTNORIAED TO BE cortmg0 BY TNIB AOREEI/ENY' .' ARE: $14,O31,OOD P GENERAL ORLIRATIOM BoNO$ 1,5I00)00 - WATER knout UONGs 12,,5,000'- Gas SY$TEM REVENUE BONDS' (B) THE GEES PAYAOLE ,SY.ENE CITY WILL OE REOUCEO'BY rue MOONY OF. FEES CHARMED SY MCCALL, PARKHURST-2 CROW, KCCALL AND,HONTOM SR 'THOSE ISSUES COVERER BY THE AGREEMENTS MADE-BY rot --Orr VITN TOES CONCERNIHO -ANY or THE.BONDY MENTIONI;O 1)1 PARAGRAPH- (A) ABOVE, AND BY rut AmosOY or ELECTION C0$tS IWCURAED HT THE 'cirri! FOR THE JANoARr 1280961, GEWCRAL OslomiATI0N OoHD CLEC7fON WIICH mom) HAVE BEEN PAI0 Btt I1. E. 141.4111414 pNO COMPANY, IHC., IF' TIRO CONTACT HAD BEEII IN reacC Aye as THAT (C) 1N :TRE tVCNT ECEO TIRE. PAID URGER Tie 4001,0 .fli8TM.1MQII! �ROQI 0104 011 PARE 3' NEREOF, -YHEN UPON remmomotom THIS CONTRACT 'OR ART CATENSIQN TH SEOF.SEFORt ALL OF.,TNE SONDS NENTIOHt0 IH PARACRAPH.(A) ABDYB Hoof SEEN SOLO, Tut rocs -0UE M.. E. ALtIsoN AUD COHPANY, Iwc.,,.Wil,l. "SE RECALCULATED 04 THE 0A31$ OF SONQS ACTYALLT SOLO DURING THE 'two OR TRH/ CONTRACT ASO ART ACCEPTED PURSUANT f4 ADOPTED BY THE CITY COUNCIL Of C0SPU$_'CHR1$TI, ON i'Alsl _THC OAT .OF ,i 1,961. ATTEST1' CITY .SECRETARY APPROVED AS TO LEGAL FORD; THIS DAY OP , 1961: CITY ATT ETNEY CITY MANAGER. TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS CORPUS CHRISTI TEXAS DAY OF Li• ) 19 `i FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLU- TION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIRE- MENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT 1S INTRODUCED OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPrCTFULLY, MAY THE CI CORPUS C 'U•TI, TEXAS THE CHARTER RULE VAS SUSPENDED BY THE FOLLOWING VOTES ELF.ROY KING JAMES L. BARNARD• _MN.-RAY AIRNEART "11‘01!11110.000N • OIL THE ABOVr ORDINANCE WAS PASSED AY TIDE FOLLO /NG VOTES PATRICK J. DuPNE R. -A. HUMBLE GABE LOZANO, SR. ELLROY KING JAMES L. BARNARD MRS. -RAY AIRHEART JOSEPH B. DUNN PATRICK J. DUNNE R. -A. HUMBLE - GABE LOEAMO, SR.