HomeMy WebLinkAbout13588 ORD - 01/26/1977i . I
I
,THE STATE OF TEXAS
iCOUNTY OF NUECES
;CITY OF CORPUS CHRISTI
it
On this the day o , 1977, the City
IlCouncil of the City of Corpus Christi, Texas, convened in
(Regular Meeting, with the following members of said Council
,Illpresent, to -wit:
Jason M. Luby, Mayor 11
Eduardo de Ases
Mrs. Ruth Gill
Bob Gulley
Commissioners
• I
Edward L. Sample
Dr. Bill Tipton
Bill G. Read, City Secretary
with the following absent: /�/w�p✓/+..
constituting a quorum, at which time the following among other
�l[business was transacted:
presented for the consideration of i
the Council an ordinance. The ordinance was read by the City 1
Secretary. The Mayor presented to the Council a communication
,in writing pertaining to said proposed ordinance, as follows:
"Corpus Christi, Texas
!I "TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
"For the reasons set forth in the emergency clause of
l the foregoing ordinance, a public emergency and imperative
necessity exist for the suspension of the Charter rule or re-
quirement that no ordinance or resolution 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,,
I, therefore, request that you suspend said Charter rule or
requirement and pass this ordinance finally on the date it is
'introduced, or at the present meeting of the City Council. V
Respectfully, pp
/s/ Jason M. Luby
Mayor
,.3588 The City of Corpus Christi,
Texas"
V
Commissioner moved that the Charter
i• i
,provision prohibiting ordinances from being passed finally on
;,the date introduced be suspended for the reasons stated in the
:written request of the Mayor and stated in the emergency clause
if
Iof the ordinance. The motion was seconded by Commissioner
The motion was carried by a unanimous vote by the
(City Council, viz:
i
AYES: All present voted Aye.
NAYS: None.
The Mayor requested that the records show that he
,voted Aye. This was done.
I Commissioner moved that the ordinance be
ff
'passed finally. The motion was seconded by Commissioner�,cGQ�
:The motion was carried by the following vote:
AYES: All present voted Aye.
NAYS: None.
The Mayor requested that the records show that he
voted Aye. This was done.
The Mayor announced that the ordinance had been passed.
,;The ordinance is as follows:
ORDINANCE NO. 9.3588
I
AUTHORIZING THE ISSUANCE OF CITY OF CORPUS
CHRISTI, TEXAS, JUNIOR LIEN WATERWORKS SYSTEM
REVENUE BONDS, SERIES 1977, IN THE AMOUNT OF
$7,105,000 TO IMPROVE AND EXTEND THE WATER-
WORKS SYSTEM OF THE CITY, PLEDGING CERTAIN
REVENUES OF SAID SYSTEM AND ORDAINING OTHER
MATTERS RELATING TO THE SUBJECT AND DECLARING
A14 EMERGENCY.
WHEREAS, the City of Corpus Christi has heretofore
authorized the issuance and sold its City of Corpus Christi,
:Texas, Junior Lien Waterworks Revenue Bonds, Series 1975, in
is
tithe principal amount of $7,895,000 (hereinafter called the
"Series 1975 Bonds ") for the purpose of providing the funds to
Irefund its First Mortgage Waterworks System Revenue Bonds, all
I
2
i
in accordance with an ordinance passed by the City Council of
(said City on October 22, 1975 (herein defined as the "1975
(Ordinance "); and
WHEREAS, pursuant to applicable laws, including
(Articles 1111 to 1118, both inclusive, of V.A.C.S., the City
lis authorized to issue additional bonds on a parity with the
,Series 1975 Bonds; and
WHEREAS, the 1975 Ordinance permitted the issuance
of the bonds herein authorized as additional parity bonds with
Ithe Series 1975 Bonds; and
WHEREAS, it is deemed appropriate that the City issue
{
'bonds on a parity with the Series 1975 Bonds at this time,
i
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
iCORPUS CHRISTI, TEXAS:
Section 1. That said City's bonds to be designated
!City of Corpus Christi, Texas, Junior Lien Waterworks Revenue
(Bonds, Series 1977 (herein defined as the "Bonds ") are hereby
authorized to be issued in the principal amount of $7,105,000
I
for the purpose of providing moneys to improve and extend its
lwaterworks system.
Section 2. That said Bonds shall be issued initially
as a single registered bond, without coupons, in the denomina-
tion of $7,105,000, shall be dated January 10, 1977, shall be
jnumbered R -1, and shall be payable in installments on July 10
in the amounts, respectively, as set forth in the following
schedule:
YEAR AMOUNT
1978
$300,000
1979
340,000
1980
385,000
1981
420,000
1982
455,000
1983
490,000
1984
535,000
3
YEAR
AMOUNT
1985
$580,000
1986
620,000
1987
670,000
1988
720,000
1989
770,000
1990
820,000
Section 4. That the single registered Bond shall bear
I
interest from date at the rate of 4.322 per annum which shall bd
payable in lawful money of the United States of America at the
I
I Office of the State Treasurer of the State of Texas, Austin,
I
Texas, on July 10, 1977, and thereafter on each January 10 and
July 10.
Section 5. That the single registered Bond shall be
executed, signed and sealed, and have the characteristics as
i
I� follows, and said Bond and the Comptroller's Certificate to be
thereon and the Payment Record to be attached thereto, shall be
substantially in the forms, respectively, as follows:
FORM OF SINGLE REGISTERED BOND
NO. R -1 $7,105,000
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF CORPUS CHRISTI, TEXAS
JUNIOR LIEN WATERWORKS REVENUE BOND
SERIES 1977
THE CITY OF CORPUS CHRISTI, TEXAS, (the "City")
�I
hereby promises to pay to the order of the TEXAS WATER
DEVELOPMENT BOARD the aggregate principal amount of $7,105,000,
in installments on the 10th day of July, in the years as followso
1
YEAR AMOUNT
1978 $300,000
1979 340,000
1980
1981
1982
1983
1984
P 1985
1986
1987
1988
1989
1990
385,000
420,000
455,000
490,000
535,000
580,000
620,000
670,000
720,000
770,000
820,000
and to pay interest on the principal amount or the balance of
said principal amount from time to time remaining unpaid at the
rate of 4.322 per annum, with said interest being payable
I
li
4
I
a
,July 10, 1977, and semiannually thereafter on January 10 and
July 10 of each year until all of the principal amount hereof
has been paid.
THE PRINCIPAL of and interest on this Bond are payable
in lawful money of the United States of America at the Office of
lthe State Treasurer of the State of Texas, Austin, Texas, which
shall constitute and be defined as the "Custodian" of the Bond,
and which is by law the custodian of all bonds owned by the
(Texas Water Development Board. Payments of said principal and
Ilinterest shall be made by check or draft drawn by the City,
(payable to the order of the Texas Water Development Board, and
lmailed or delivered to the Custodian. All of such payments,
'(shall be noted by the Custodian on the Payment Record made a
part of this Bond, and written notice of the making of such
notations shall be mailed promptly to the City by the Custodian.
!Such payment shall fully discharge the obligation of the City
hereon to the extent of the payments so made. Upon final pay -
ment of said principal and interest the Custodian shall submit
!(,this Bond to the City for cancellation.
THIS BOND has been issued pursuant to an Ordinance
(duly adopted by the City of Corpus Christi, Texas, (the
"Ordinance "), in the principal amount of $7,105,000, for the
;purpose of providing moneys to improve and extend the waterworks
!system of the City.
THE DATE OF THIS BOND, in conformity with the Ordinance
,above mentioned, is January 10, 1977.
IT IS HEREBY certified, recited, and covenanted that
this Bond has been duly and validly authorized, issued, and
delivered; that all acts, conditions, and things required or
1proper to be performed, exist, and be done precedent to or in
the authorization, issuance, and delivery of this Bond have been
iiperformed, existed, and been done in accordance with law; that
li
I{
I i
' I
'.this Bond is a special obligation of the City and that the l
!principal of and interest on this Bond, together with City of
'Corpus Christi, Texas, Junior Lien Waterworks System Revenue
Bonds, Series 1975, originally issued in the aggregate principal I
j
amount of $7,895,000, are payable from, and secured by a lien I
on and pledge of, the Net Revenues of said City's Waterworks
;'System, subject to the lien and pledge securing the City's
i
First Lien Waterworks System Revenue Bonds and certain payments
in accordance with contracts wherein the City is acquiring an
(interest or interests in a water supply.
THE OWNER HEREOF shall never have the right to demand
,payment of this obligation out of any funds raised or to be
i�
raised by taxation, nor from any other funds except the afore -
Ilisaid Net Revenues.
THE ORDINANCE PROVIDES that, to the extent and in the
manner permitted by the terms of the Ordinance, the Ordinance
(may be amended with the consent of the holder of this Bond.
AS PROVIDED in the Ordinance, this Bond is exchange -
ilable at the sole expense of the City at any time, upon ninety
days' written notice to the City, at the request of the Texas
Water Development Board and upon surrender of this Bond at the
office of the Comptroller of Public Accounts of the State of
Texas, at Austin, Texas, for negotiable coupon bonds, payable
to bearer, numbered consecutively from 1 upward, in the deno-
mination of Five Thousand Dollars ($5,000) each, bearing interest
D
list the rate of 4.32% per annum, in an aggregate principal amount
equal to the then unpaid principal amount of this Bond, maturing
I
serially and annually in the same amounts as the unpaid principal
6
installments of this Bond, and in the form of such coupon bond
!and in the manner provided for in the Ordinance.
IN WITNESS WHEREOF, this Bond has been signed by
the Mayor of said City and countersigned by the City Secretary
of said City, and the official seal of said City has been duly
impressed, or placed in facsimile, on this Bond.
XXXXXXXXXXX XXXXXXXXXXX
City Secretary Mayor
,City of Corpus Christi,:Texas City of Corpus Christi, Texas
(SEAL) i
FORM OF REGISTRATION CERTIFICATE
i
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Bond has been examined,
certified as to validity, and approved by the Attorney General
of the State of Texas, and that this Bond has been registered byl
,the Comptroller of Public Accounts of the State of Texas.
Witness my signature and seal this
XXXXXXXXXXX
Comptroller of Public Accounts
of the State of Texas
PAYMENT RECORD
Due Date
July 10, 1977
January 10, 1978
July 10, 1978
January 10, 1979
July 10, 1979
i
January 10, 1980
July 10, 1980
II January 10, 1981
July 10, 1981
i
it
Interest
Payment Principal
(4.32 %) Payment
7
Authorized Offi-
cer, Title and
Date Signature of
Paid Custodian
January 10, 1982
July 10, 1982
°January 10, 1983
July 10, 1983
January 10, 1984
July 10, 1984
January 10, 1985
July 10, 1985
January 10, 1986
July 10, 1986
January 10, 1987
July 10, 1987
January 10, 1988
July 10, 1988
January 10, 1989
July 10, 1989
January 10, 1990
July 10, 1990
(Make a line for each due date - -leave one half
inch space between each due date, etc., for
manual interlining, if necessary, also half a
page at end for any explanation, which might be
required.)
SCHEDULE "A" TO PAYMENT RECORD
(Note to Printer: This should be a separate sheet.)
Principal installment on which payments have been made,
prior to maturity.
Authorized Official,
Principal Due Date Title and Signatu3te
Date Amount Payment Balance Paid of Custodian
i
Section 6. (a) That the City specifically covenants
and agrees that within ninety (90) days after the receipt by thej
City of the written request of the Texas Water Development Board,
the City shall have printed, executed and exchanged for such
8
,single registered bond, negotiable coupon bonds, of type com-
I
iposition printed on paper of customary weight and strength, pay -
Table to bearer, numbered consecutively from 1 upward, in the
ldenomination of $5,000 each, in an aggregate principal amount '
!equal to the then unpaid principal amount of such single regis- f
e I
i
Itered bond, and having serial and annual maturities on the dates
land in the amounts corresponding with the then unpaid principal
jinstallments of such single registered bond, bearing interest at
I
the same rate and payable at the same times as such single
registered bond, with bearer interest coupons annexed to such
Icoupon bonds payable semiannually from and after the date to
(which interest on such single registered.bond shall have been
j
paid. All expenses of printing, executing, and exchanging such
!single registered bond shall be paid by the City from any of its
(funds on hand lawfully available for such purpose, provided, how-
'lever, that if no other funds are on hand lawfully available
Itherefor, then such expenses shall be paid from the Revenue Fund
as an item of operation and maintenance expense of the System.
I
(b) It is further covenanted and agreed that no
additional ordinances or orders need to be adopted by the City
Council so as to accomplish the foregoing conversion and ex-
change of the single registered bond for coupon bonds, and the
City, upon request of the Texas Water Development Board as pro-
vided herein, shall have the appropriate coupon bonds and
coupons printed, executed, issued and exchanged for the single
registered bond in the manner prescribed herein. The coupon
bonds to be exchanged for the single registered bond shall be
submitted by the Mayor of the City, or some officer acting under
his authority, to the Comptroller of Public Accounts of the
State of Texas, as Registrar, to be used in the aforementioned
exchange. The seal of said Comptroller shall be affixed on each
such coupon bond. Upon receipt of the single registered bond
9
I
!for exchange, the Registrar shall cancel the single registered
bond and deliver the coupon bonds to be exchanged therefor to
the Texas Water Development Board. The Registrar shall note
the exchange on his records kept for such purpose and shall
'execute the certificates or such coupon bonds, noting such
!exchange, such certificates being in the form hereinafter
!'provided.
Section 7. That any coupon bonds which may in the
ifuture be printed, executed and exchanged as herein provided for
''the single registered bond shall be payable, be dated, be
lexecuted and signed, (and said bonds sha•11 be sealed), bear
„interest, and have the characteristics as hereinbefore prescribed
land as follows, and said coupon bonds, the coupons to be
!attached thereto, and the Comptroller's Certificate to be
!!printed thereon, shall be substantially in the form, respective-
ly, as follows:
FORM OF COUPON BOND
NO. $5,000
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF CORPUS CHRISTI, TEXAS
JUNIOR LIEN WATERWORKS REVENUE BOND
SERIES 1977
ON JULY 10, , THE CITY OF CORPUS CHRISTI, TEXAS,
hereby promises to pay to bearer hereof the principal amount of
FIVE THOUSAND DOLLARS
:land to pay interest.thereon, from , at the rate
lof % per annum, evidenced by interest coupons payable
!I
!semiannually on each July 10 and January 10 of each year while
!I
(this Bond is outstanding.
THE PRINCIPAL of this Bond and the interest coupons
appertaining hereto shall be payable to bearer, in lawful money
'I
ilof the United States of America, without exchange or collection
charges to the bearer, upon presentation and surrender of this
I
Bond or proper interest coupon, at the following, which shall
10
�I
I�
constitute and be defined as the "Paying Agents" for this Series
i of Bonds:
Mercantile National Bank at Dallas, Dallas, Texas, or
at the option of the holder at Corpus Christi Bank &
Trust, Corpus Christi, Texas.
THIS BOND is one of a Series dated as of January 10,
11977, originally authorized in the aggregate principal amount of
r.
$7,105,000, for the purpose of providing moneys to improve and
,extend the waterworks system of the City.
IT IS HEREBY certified, recited and covenanted that
II,
(this Bond has been duly and validly authorized, issued, and
ldelivered; 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 been done in accordance with law; that
this Bond is a special obligation of the City and that the
principal of and interest on this Bond, together with City of
Corpus Christi, Texas, Junior Lien Waterworks System Revenue
Bonds, Series 1975, originally issued in the aggregate principal u
Iiamount of $7,895,000, are payable from, and secured by a lien
on and pledge of, the Net Revenues of said City's Waterworks
(System, subject to the lien and pledge securing the City's
l First Lien Waterworks System Revenue Bonds and certain payments
i
in accordance with contracts wherein the City is acquiring an
I
'interest or interests in a water supply.
THE OWNER hereof shall never have the right to demand
payment of this obligation out of any funds raised or to be
raised by taxation, nor from any other funds except the afore-
said Net Revenues.
11
THE ORDINANCE PROVIDES that, to the extent and in the
manner permitted by the terms of the Ordinance, the Ordinance
may be amended with the consent of the holders of at least
two- thirds in principal amount of all outstanding Bonds and
I
the said Series 1975 Bonds, provided, that without the consent
of the holders of all of the said outstanding bonds, no amend- j
I
ment shall:
(a) make any change in the maturity of the
outstanding bonds;
(b) reduce the rate of interest borne by any
of the outstanding bonds;
(c) reduce the amount of principal payable on
the outstanding bonds;
(d) modify the terms of payment of principal of
or interest on the outstanding bonds, or any of
them, or impose any conditions with respect to,
such payment;
(e) change the minimum percentage of the principal
amount of bonds necessary for consent to such
amendment.
IN WITNESS WHEREOF, this Bond and the interest coupons
appertaining hereto have been signed with the facsimile signature
of the Mayor of said City and countersigned with the facsimile
signature of the City Secretary of said City, and the official
seal of said City has been duly impressed, or placed in facsimile
on this Bond.
XXXXXXXXXXXXXX XXXXXXXXXXXXX
City Secretary Mayor
City of Corpus Christi, Texas City of Corpus Christi, Texas
12
i
FORM OF REGISTRAR'S CERTIFICATE FOR ALL BONDS DELIVERED
IN EXCHANGE OR SUBSTITUTION FOR SINGLE REGISTERED BOND
THIS BOND is delivered in lieu of and in exchange or
substitution for Bond Number R -1 which Bond was originally
registered by the Comptroller of Public Accounts of the State
of Texas under Registration No.
Witness my signature and seal this
Comptroller of Public Accounts of
the State of Texas
FORM OF INTEREST COUPON
NO. $
ON 10, , the City of Corpus
I
Ii Christi, Texas, promises to pay to bearer the amount shown on
Ithis interest coupon, in lawful money of the United States of
II
iAmerica, without exchange or collection charges to the bearer,
lupon presentation and surrender of this interest coupon, at the
i'
Mercantile National Bank at Dallas, Dallas, Texas, or at the
�I
I'option of the holder at the Corpus Christi Bank & Trust, Corpus
!I Christi, Texas, said amount being interest due that day on the
lBond, bearing the number hereinafter designated, of that issue
i
of City of Corpus Christi, Texas, Junior Lien Waterworks System
i
Revenue Bond, Series 1977, dated January 10, 1977. The bearer
hereof shall never have the right to demand payment of this
obligation out of any funds raised or to be raised by taxation,
nor from any other funds except as described in the Bond to
which this interest coupon appertains. Bond No.
XXXXXXXXXXXX XXXXXXXXXXXX
City Secretary Mayor
City of Corpus Christi, Texas City of Corpus Christi, Texas
Section S. That the City of Corpus Christi Junior
Lien Waterworks Revenue Bonds, Series 1977, (the "Bonds ")
authorized hereby are parity "Additional Bonds" as the term is
defined and as permitted to be issued in the ordinance dated
13
i
October 22,'19.75., (the "1975 Ordinance ") whi . ch7 authorized the I
issuance of City of Corpus Christi Junior Lien Waterworks Revenue
I
i
Bonds, Series 1975, (the "Series 1975 Bonds ") and Sections 16
through 20, 22 through 27 and 29 of said ordinance are hereby
'adopted by reference and shall be applicable to the Series 1977
Ji
Bonds for all purposes, except to the extent hereinafter specifi-
I
Ically modified and supplemehted. The Series 1975 Bonds and the
!!!Series 1977 Bonds shall be on a parity and of equal dignity in
all respects.
Section 9. DEFINITIONS. As used in this Ordinance,
the following terms shall have the meanings as follows:
(a) The term "Bonds ", whether in single registered
form or in form of coupon bonds, shall mean the
City of Corpus Christi, Texas, Junior Lien Water-
works Revenue Bonds, Series 1977, authorized to
be issued and delivered by this Ordinance.
(b) The term "Custodian" shall mean the State
Treasurer of the State of Texas.
(c) The term "First Lien Bonds" shall mean all revenue
bonds other than Bonds and the Series 1975 Bonds
of the City hereafter issued for the purpose of
providing money for extensions, improvement or
repairs to the System.
(d) The term "Net Revenues" shall mean all gross
revenues of the System, after deducting the
expenses of operation and maintenance of the
System, including all salaries, labor, materials,
repairs, and extensions necessary to render
efficient service, provided, however, that only
such repairs and extension, as in the judgment
of the governing body of said City, reasonably
and fairly exercised by the passage of appro-
priate ordinances, are necessary to keep the
System in operation and render adequate service
to said City and the inhabitants thereof, or
such as might be necessary to meet some physical
accident or condition which would otherwise
impair the Bonds or the Series 1975 Bonds, shall
be deducted in determining "Net Revenues ". Pay-
ments made by the City for water supply which
constitute under the law operation and mainte-
nance expenses shall be considered herein as
expenses incurred in the operation and mainte-
nance of the System.
(e) The term "Outstanding" shall mean, when used
with reference to First Lien Bonds, Series
1975 Bonds, or Bonds, at any date as of which
the amount of Outstanding First Lien Bonds,
Series 1975 Bonds, or Bonds is to be deter-
mined, the aggregate of all First Lien Bonds,
Series 1975 Bonds, or Bonds, except:
14
(1) First Lien Bonds, Series 1975 Bonds or
Bonds cancelled at or prior to such date;
(2) First Lien Bonds, Series 1975 Bonds or
Bonds for the payment of which cash shall
have been theretofore deposited with the
Custodian or the Paying Agents and which
(i) shall have matured by their terms, but
shall not have been surrendered for payment
or (ii) shall have been purchased, but
shall not have been presented for payment
of the purchase price;
(3) First Lien Bonds and Bonds for the redemp-
tion of which cash equivalent to the Redemp-
tion Price shall have been theretofore
deposited with the Custodian or the Paying
Agents; provided that notice of such redemp-
tion shall have been given as in the ordi-
nance or ordinances authorizing the First
Lien Bonds.
(f) The term "Paying Agents" shall mean the Mercantile
National Bank at Dallas, Dallas, Texas, and Corpus
Christi Bank & Trust, Corpus Christi, Texas.
(g) The term "Redemption Price" shall mean, when used
with respect to a First Lien Bond, the principal
thereof plus the applicable premium, if any,
payable upon redemption thereof pursuant to the
ordinance or ordinances authorizing Bonds prior
to the stated maturity date of the Bonds.
(h) The term "Registrar" shall mean the Comptroller
of Public Accounts of the State of Texas.
(i) The term "Series 1975 Bonds" shall mean City of
Corpus Christi Junior Lien Waterworks Revenue
Bonds, Series 1975, dated October 10, 1975, and
authorized and sold pursuant to the 1975 Ordi-
nance.
(j) The term "System" shall mean the City's entire
waterworks system, together with all future
improvements, extensions, enlargements, and
additions thereto, and replacements thereof.
(k) The term "1975 Ordinance" shall mean the ordi-
nance passed by the City Council of the City of
Corpus Christi dated October 22, 1975, which
authorized the issuance and sale of the Series
1975 Bonds.
(1) The term "Underlying Bonds" shall mean the City's
First Mortgage Waterworks Revenue Bonds refunded
by the Series 1975 Bonds.
Section 10. PLEDGE. The Series 1975 Bonds and the
i
Bonds, and the interest thereon, are and shall be payable from
and secured by an irrevocable lien on and pledge of the Net
Revenues of the System, and said Net Revenues are further
pledged irrevocably to the establishment and maintenance of the
15
!'Funds hereinafter created, said lien and pledge being subject
only to the lien on and pledge of Net Revenues that may here-
after from time to time be established and made by the governing
body of the City to secure the payment of principal of and
1 interest on First Lien Bonds of the City, payments into reserve
funds established in ordinances authorizing First Lien Bonds
i'
and payments in accordance with obligations under contracts
wherein the City is obtaining or being provided a water supply
or an interest therein and such payments are not operation and
maintenance expenses under the law.
Section 11. RATES. The City covenants and agrees
with the holders of the Bonds, as follows:
(a) That it will at all times fix, maintain, charge
and collect for services rendered by the System, rates and
charges which will produce gross revenues at least sufficient
to pay all expenses of operation and maintenance, and to provide
sufficient Net Revenues equal to no less than 1.25 times amounts
adequate to pay promptly all of the principal of and interest on
all Outstanding First Lien Bonds, all Outstanding Series 1975
Bonds, all Outstanding Bonds, and to make all deposits now or
hereafter required to be made into the Funds created and esta-
blished by ordinances authorizing First Lien Bonds and the
Series 1975 Ordinance.
(b) If the System should become legally liable for
any other obligations or indebtedness, the City shall fix,
maintain, charge and collect additional rates and charges for
I
services rendered by the System sufficient to establish and
maintain funds for the payment thereof.
Section 12. FUNDS. All revenues of the System shall
be kept separate and apart from all other funds of the City,
and the following special Funds created by the 1975 Ordinance
16
L �
shall be maintained at the official depository bank of the City,
so long as any of the Series 1975 Bonds or the Bonds or interest
thereon are outstanding and unpaid:
(a) The City of Corpus Christi Waterworks Revenue
Fund, hereinafter called "Revenue Fund ";
(b) The City of Corpus Christi Junior Lien Waterworks
Revenue Bonds Interest and Sinking Fund, herein-
after called the "Interest and Sinking Fund ";
(c) The City of Corpus Christi Junior Lien Waterworks
Revenue Bonds Reserve Fund, hereinafter called the
"Reserve Fund ".
Section 13. REVENUE FUND. All gross revenues of
every nature received from the operation and ownership of the
System shall be deposited from day to day as collected into
the Revenue Fund, and the reasonable, necessary, and proper
I
expenses of operation and maintenance of the System shall be
paid from the Revenue Fund. The revenues of the System not
actually required to pay said expenses shall be transferred from
the Revenue Fund into the Funds created by the 1975 Ordinance, in
the manner and amounts as therein and as herein provided, and
each of such Funds shall have priority as to such deposits in the
order in which they are treated in the following sections, pro-
vided that payments required to be made to pay the principal and
interest on First Lien Bonds by the terms of ordinances
authorizing the issuance of First Lien Bonds, payments to re-
serve funds established therein and payments in accordance
with obligations under contracts wherein the City is obtaining
or being provided a water supply or an interest therein and such
payments are not operation and maintenance expenses under the
law shall have priority over such transfers to the Junior Lien
Interest and Sinking Fund and the Junior Lien Reserve Fund in
accordance with this Ordinance.
17
Section 14. INTERLST AND SINI(ING FUND. In addition
!'to all other amounts required by the 1975 Ordinance to be
deposited in the Interest and Sinking Fund, there shall be
deposited into the Interest and Sinking Fund all accrued interest,'
from the sale of the Bonds, and also,. from the Net Revenues of
6 �
rthe System, there shall be transferred from the Revenue Fund
land deposited into the Interest and Sinking Fund the following:
(a) Such amounts, in equal monthly installments,
made on or before the 10th day of each month,
hereafter commencing February 10, 1977, as will
be sufficient to pay the interest scheduled to
come due on the Bonds on the next interest pay-
ment date; and
(b) Such amounts, in equal monthly installments,
made on or before the 10th day of each month here
after, commencing February 10, 1977, as will be
sufficient to pay the next maturing principal of j
the Bonds.
i
The Interest and Sinking Fund shall be used to pay the
principal of and interest on the Series 1975 Bonds and the Bonds,,
as such principal matures and such interest comes due.
Section 15. RESERVE FUND. (a) In addition to all
other amounts required by the 1975 Ordinance to be deposited
i
in the Reserve Fund, on or before the 10th day of each month
hereafter, there shall be deposited into the Reserve Fund the
sum of at least $8,883 until the Reserve Fund shall contain an
aggregate amount of $1,350,640. No deposit shall be required to
,be made into the Reserve Fund as long as the Reserve Fund con-
tains said aggregate amount, but if and whenever said Reserve
Fund is reduced below said aggregate amount, then on or before
the loth day of each month thereafter there shall be deposited
into the Reserve Fund all of the Net Revenues remaining in the
Revenue Fund until the Reserve Fund is restored to said amount.
The Reserve Fund shall be used to pay the principal of or
interest on the Series 1975 Bonds and the Bonds and, at any time
i'
;I
when there is not sufficient money available in the Interest
ii �
d,and Sinking Fund for such purpose, and shall be used finally to
I
pay and retire the last of the Outstanding Series 1975 Bonds
I
land the Bonds.
i
(b) All interest income received by the City from any
I
investments made pursuant to law of funds in the interest and
sinking fund established pursuant to law to secure the payment
of the Underlying Bonds upon maturity thereof or redemption
j1 prior to stated maturity, shall at the option of the City be
i
i
neither deposited in the Reserve Fund or used for further
i
Idevelopment of the System.
Section 16. FINAL ACCOUNTING TO TEXAS WATER
� I
DEVELOPMENT BOARD. That the City shall render a final audit
and accounting by an independent Certified Public Accountant
to the Texas Water Development Board of the total costs incurred
by the City in the acquisition and construction of the facilities
to be acquired and constructed with the proceeds of the Bonds.
If the Texas Water Development Board is at the time the holder
of any of the Bonds, and if there are any bond proceeds remain-
ing (1) after completion of said facilities or (2) by January 1,
j1982, and the project is not then under construction, the City
� I
shall, if required by Texas Water Development Board, (a) return
to the Texas Water Development Board the amount of such excess,
i
i to the nearest multiple of $5,000.00, and in return therefor,
the Board will cancel and deliver to the City a like principal
amount of Bonds held by the said Board, or (b) if the single
registered Bond remains Outstanding, pay such excess, to the
nearest multiple of $5,000.00, to the Custodian in the manner
other payments are required herein to be made with respect to
such single registered Bond.
Section 17. NO- ARBITRAGE. That the City covenants
to and with the purchasers of the Bonds that it will make no use
19
Hof the proceeds of the Bonds at any time throughout the term of
this issue of Bonds which, if such use.had been reasonably ex-
pected on the date of delivery of the Bonds to and payment for
!the Bonds by purchasers, would have caused the Bonds to be
'arbitrage bonds within the meaning of Section 103(d) of the
:Internal Revenue Code of 1954, as amended, or any regulations or
rulings pertaining thereto; and by this covenant the City is
,obligated to comply with requirements of the aforesaid Section
!'103(d) and all applicable and pertinent Department of the
Treasury Regulations relating to arbitrage bonds. The City
further covenants that the proceeds of the Bonds will not other-
wise be used directly or indirectly so as to cause all or any
part of the Bonds to be or become arbitrage bonds within the
meaning of the aforesaid Section 103(d), or any regulations or
rulings pertaining thereto.
Section 18. APPROVAL AND REGISTRATION OF THE SINGLE
REGISTERED BOND. That the City Manager of said City is hereby
authorized to have control of the single registered Bond and all
necessary records and proceedings pertaining to said Bond pending
its delivery and its investigation, examination and approval by
the Attorney General of the State of Texas, and its registration
J by the Comptroller of Public Accounts of the State of Texas.
P
Upon registration of said Bond, said Comptroller of Public Ac-
counts (or a deputy designated in writing to act for said
Comptroller) shall manually sign the Comptroller's Registration
Certificate prescribed herein to be placed on such Bond, and the
n,
seal of said Comptroller shall be impressed, or printed, or
lithographed thereon.
Section 19. SALE OF BONDS. That the Bonds herein
authorized are hereby sold to the Texas Water Development Board,
at a price of par plus accrued interest to the date of delivery,
plus a premium necessary to adjust interest rates on bonds to
Texas Water Development Board statutory lending rate.
20
Section 20. EMERGENCY. The fact that the proceeds of
the Bonds are necessary for extensions and improvements to the
System and such extensions and improvements are necessary for the
orderly development and growth of the City of Corpus Christi,
Texas, creates a public emergency and an imperative public neces-
sity requiring the suspension of the Charter Rule providing that
no ordinance or resolution shall be passed finally on the date it
li is introduced and that such ordinance or resolution shall be
read at three several meetings of the City Council and the
Mayor having declared that such public emergency and imperative
necessity exist, and having requested that said Charter Rule
be suspended and that this ordinance take effect and be in full
force and effect from and after its passage, it is accordingly
so ordained.
Section 21. REPEALER. That all ordinances and resolu-
tions or parts thereof in conflict herewith are hereby repealed.
PASSED AND APPROVED this the ,df2 day o 1977
ty of Corp fs ChrigWi,
ATTEST:
i
p
City Secretary, City of Corpus
Christi, Texas
(SEAL)
The foregoing Ordinance was approved pr'or to passage
as to form and correctness this the � day of , 1977.
/1
TC. ASST., City Attorney, Vity of
Christi, Texas
I
I`
21
THE STATE OF TEXAS
COUNTY OF NUECES
;'CITY OF CORPUS CHRISTI
! I, the undersigned, City Secretary of the City of
i Corpus Christi, Texas, do hereby certify that the above and
foregoing is a true, full and correct copy of an Ordinance
!'passed by the City Council of the City of Corpus Christi,
Texas, (and of the minutes pertaining thereto) on the
I
!,day 1977, authorizing the issuance of $7,105,000
City of Corpus Christi, Texas, Junior Lien Waterworks System
,:,Revenue Bonds, Series 1977, which ordinance is duly of record
in the minutes of said City Council, and-said meeting was open
to the public as required by law and public notice of the time,
place, and purpose of said meeting was given as required by
V.A.C.S., Art. 6252 -17, as amended.
EXECUTED UNDER MY HAND AND SEAL OF SAID CITY, this
'I the a G day of
i
Ci£y Secretary, City of Corpus
Christi, Texas
(SEAL)
0 1 ' ... ..- " " . .' _.. 1 0
CORPUS CHRISTI, TEXAS
2 e, DAY OF_ JW
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI TEXAS
FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING
ORDINANCES A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN-
SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL
BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR
RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, TNEREFORE,
REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS TN13 ORDI-
NANCE FINALLY ON THE DATE IT IS INTRODUCED OR AT THE PRESENT MEETING OF THE
CITY COUNCIL.
RESPECTFULLY
MIAY R �
THE CITY OF CORPUS CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON
EDUARDO DE ASE$
RUTH GILL
Boo GULLEY
GABE LOZANO, SR.
EDWARD L. SAMPLE
THE ABOVE ORDINANCE WAS PASSED BY T E FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON yall
EDUARDO DE ASES
RUTH GILL
BOB GULLEY
GABE LOZANO, SR.
EDWARD L. SAMPLE ?�
0